Kentucky zooms forward to OSB
Accelerated timetable in Kentucky, UK financial risk consultation, Australian self-exclusion plans, Zimpler fine +More
Good morning. On today’s agenda:
Kentucky opts for an accelerated launch timetable.
UKGC signals financial risk check consultation is imminent.
A warning is issued over cage scams in Las Vegas.
Swedish regulator warns on unregulated payments.
Dutch Gaming Authority’s Bitcoin claims.
Everyday it’s a gettin’ closer.
Kentucky on a go-fast
Kentucky sports betting will be available much sooner than initially expected.
Not hanging around: The Kentucky Horse Racing Commission approved temporary regulation during a special meeting on Monday, with Gov. Andy Beshear making it official later in the afternoon.
"For years, I have believed that today was not only possible but would happen. Virtually every state around us had done it, but again, against the odds with bipartisan support, we got through the finish line, and we are here today to sign the emergency regulations to make this a reality," Beshear said on Monday.
The launch timeline, which Beshear called ambitious but reasonable on Monday, for retail sports betting is set for September 7, 2023, with OSB launching a few weeks later, on September 28. The launch date coincides with the kickoff of the 2023 NFL season on September 7.
The 60-day timeline will make Kentucky one of the quickest from legalization to launch in the US. Kansas is the current leader in the clubhouse at 62 days – sports betting became legal on July 1 and launched on September 1, 2022.
The Kentucky market: Kentucky will have numerous OSB apps, with all the major players involved. That said, there is little concrete information on existing partnerships. The current known partnerships are:
Caesars + Keeneland and Red Mile Gaming & Racing
FanDuel + Churchill Downs
There are 14 locations capable of offering OSB in Kentucky.
Be prepared: The big question is, will operators be ready? In a statement, Churchill Downs stopped short of saying it would be ready on Day One.
Per the statement, Churchill said it was excited about the opportunity and “continues to move forward with ongoing efforts to make sports wagering available at our established racing and gaming facilities throughout Kentucky, and we will share updates as plans are finalized.”
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UK consultations imminent
Financial risk checks will be among the measures to be discussed in consultations opened this month.
Risk assessment: The UK Gambling Commission said that the promised consultation on financial risk and vulnerability checks will be among the first tranche of consultations to be published this month. In a blog posting, executive director for research and policy Tim Miller said that the Commission would be opening the process around four key discussion areas later this month.
Alongside financial risk and vulnerability, the Commission will also publish details for:
Age verification in premises
Remote games design
Direct marketing and cross-selling
When I’m cleaning windows: This is on top of two more consultations that are not related to the review, namely rules around personal management licenses and procedures for regulatory panels. Miller said launching the two consultations alongside the other four “builds on our commitment to stick to consultation windows as far as possible as well”.
With the consultations set to follow the standard 12-week timetable, he said it could be expected that the closing dates for the first tranche will be October.
Following that, he noted the plans would then be well-advanced for the second tranche of consultations, which would include socially responsible inducements and gambling management tools.
He added that other aspects covered by the Gambling Act Review White Paper would be undertaken by the government, including the new levy proposals.
“Full implementation of the Review will be a job of several years, especially when you include evaluating the impact of any changes,” Miller said.
“But that doesn’t mean we don’t want to progress things as quickly as possible. We are determined to make progress at speed.”
BGC under attack
The Betting and Gaming Council comes under fire for use of statistics.
Dodgy dossier: Ahead of an appearance in front of the DCMS committee in parliament by its CEO Michael Dugher, the Betting and Gaming Council has been criticized by Liberal Democrat peer Lord Foster for inaccurate statements with regard to the use of illegal sites.
Referring to a BGC press release earlier this year that alleged an increased use of black market sites by UK consumers during the Qatar World Cup, Foster pointed out that the full report carried out by Yield Sec was never published.
The Guardian reported that the full report showed overall penetration by the black market was ”low”.
Foster said the BGC had not been “fully accurate” in what it said about the Yield Sec report.
Foster went on to suggest there were “other instances when the BGC has not been entirely accurate” with regard to the industry’s positioning over recent changes to regulation.
This includes a claim that the BGC fully supported the ban on gambling with credit cards when the UKGC said that not one operator supported the move during the consultation stage.
Oz self exclusion
Australian punters will soon be able to ban themselves from all online wagering via a new register that will finally go live five years after it was first approved.
Block by block: The national self-exclusion system known as BetStop will be launched on August 21, the federal government said, replacing the subpar state and territory registers that don’t cover all bookies.
Legislation was first introduced in 2018, but implementation never arrived despite industry backing.
Under the new system, operators will have to verify a user’s identity before they can accept a bet, instead of the proposed 72-hour window.
The Northern Territory Racing Commission lobbied for the change after arguing vulnerable punters could use an alias and be active for several days before an in-depth check occurs.
Privacy laws mean Australians already on the state or territory exclusion lists will not be automatically transferred to BetStop.
Plans to reform the Australian market are ongoing, with tougher advertising bans and a federal regulator in the works.
Vegas cage scam warning
Fraudsters are scamming cage staff in Las Vegas casinos by posing as high-level executives in need of cash, with more than $1m stolen in a single incident.
Rattled cages: The Nevada Gaming Control Board (NGCB) has warned all licensees to be on the alert for the “sophisticated and surprisingly effective” scam.
“Criminal subjects use social engineering tactics to pose as casino executives,” the regulator said. “Subjects gain intelligence on high-level casino owners, employees, managers and others connected to the casino’s money operations.”
Cage staff are told to withdraw cash for off-site emergency payments on behalf of the casino, with the largest recorded theft so far at $1.17m.
PBX calls are followed up with texts to the employee’s phone, and promises of bonuses are made in return for completing the unorthodox assignment..
The scam is evolving, the NGCB said, with investigators noting a shift in tactics to target gaming pits and other areas of the casino.
It has also warned casinos to be vigilant to the fact AI may be used by criminals to better mask identities.
Zimpler warning
Swedish payment processor Zimpler has been ordered to stop serving unlicensed gambling operators.
What’s a zimple man to do: Gambling regulator Spelinspektionen investigated the fintech company and found its BankID e-identification product was being used by multiple unregulated firms targeting the Swedish market.
Zimpler must withdraw its services before July 31, 2023 or it will cop a SEK25m ($2.3m) fine, which is significantly higher than the sanctions handed out by the regulator prior to a change in law.
Swedish gaming regulations were updated on January 1, 2023, with an addition that helps the regulator target payment processors who are aiding unlawful activity.
Shut down: “Swedish gambling regulations are based on the fact that everyone who operates in the market must have a license and those without a license must be shut out,” Spelinspektionen said. “The aim is for all gambling to be channeled to offers from responsible, reliable and controllable operators.”
“Since January 1, it is not permitted to promote participation in games that are provided without the necessary license in professional activities or otherwise for gainful purposes.”
Last man standing: The news comes in the wake of revelations in the Swedish press in January that Zimpler’s fortunes have risen as it has remained servicing the offshore market when other payment processors exited.
In its response to the Spelinspektionen investigation, Zimpler said it did not believe its actions to be in breach of the law in Sweden but would terminate its relationships with unlicensed websites that accept Swedish customers.
It said it has already begun this process, which would be complete by the third quarter at the latest.
Dutch action
One of Europe’s most active gambling regulators has said Bitcoin is increasingly being accepted by illegal operators.
Digital bounce: Dutch gaming authority KSA noted in its half-year report for 2023 that six different investigations into unlicensed offshore firms turned up use of the cryptocurrency and that it sanctioned the operator in each case.
Elsewhere in the report, the KSA detailed its successful enforcement activities to crackdown on unlicensed firms targeting the country.
Last year, the regulator handed out more than $30m in fines and is already on course to beat that number.
In the first half of this year, the regulator also conducted 32 investigations into illegal offerings on social media platforms such as Instagram and Facebook.
Established or suspected violations were reported to parent company Meta, after which the relevant pages and accounts were immediately closed down, the KSA said.
Unlawful land-based gambling has also been a focus of the KSA, and it has carried out 42 raids and actions so far this year, seizing illegal slot machines and other equipment.
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Sports integrity notebook
Port Vale defender Mitch Clark has been given a suspended three-month ban and £600 fine after the Independent Regulatory Commission ruled he had breached the Football Association’s betting rules.
Clark admitted placing 312 bets on football matches while playing for then League One club Accrington Stanley between February 2022 and March 2023.
The incidents included one bet on his team to lose.
Sponsorship notebook
EPL club Chelsea has abandoned a potential shirt sponsorship deal with Stake.com following backlash from the Chelsea Supporters Trust.
In a future edition, C+M will be taking a more-in-depth look at gambling-related shirt sponsorship in English football.
An +More Media publication.
For sponsorship inquiries email scott@andmore.media.
