New Hampshire’s 2024 online push
NH for 2024?, NCLGS debates, North Carolina expansion, UK crypto decision +More
Good morning. On today’s agenda:
New Hampshire prepares another crack at online gambling.
NCLGS attendees suggest the cannibalization debate is over.
North Carolina could see a significant casino expansion.
No, crypto isn’t gambling, says the UK government.
'Cause I'm free to do what I want any old time.
New Hampshire
State lawmakers want to give online legislation another go.
Back on the menu: The Live Free or Die state wants another bite at the online gambling apple in 2024, per New Hampshire State Senator Tim Lang. Speaking at the recent National Council of Legislators from Gaming States meeting in Denver, he said: “I think we will see an iGaming bill pass in New Hampshire in ’24.”
His optimism stems from conversations with the state’s charity casino operators.
New Hampshire casinos face onerous burdens, because 35% of all revenue must be donated to charity, with another 10% set aside for the State Lottery.
The New Hampshire Charitable Gaming Operators Association (NHCGOA) opposed efforts to legalize online gambling this year, even after Lang struck online slots from the legislation.
The opposition stems from the burdens the charity gaming operators must pass on to the customer. Online gambling would have a much higher RTP, which the NHCGOA fears would cannibalize their properties.
Rick Newman, who represents the NHCGOA, told Play USA that the state’s charity casinos could support online gambling if they have direct involvement.
“If online gaming is going to come to New Hampshire, the charitable gaming operators want to have it under the umbrella of the current gaming in New Hampshire.”
Waiting for the great leap forward: Standing in the way is a legislative rule that requires all bills in 2024 to differ substantially from bills introduced in 2023. Newman called it a significant but not insurmountable hurdle, before pointing to 2025 as the easier path.
Watered down: If the NHCGOA gets its way, the New Hampshire online casino market will be nothing to write home about. The group wants:
Online gambling to have the same charity element as land-based casinos.
Bet limits on online wagers.
Direct involvement (read as partnerships between NH casinos and online operators) rather than a lottery-run industry.
Combined, such asks would create an unappealing online gambling market.
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NCLGS debates
The cannibalization argument may have had its day, as several states believe the time is right for online play – and it may be the only way to save some casinos.
Fine young cannibals: Rhode Island recently became the seventh state to offer iCasino in part to stop punters and their tax dollars heading over the border to play. This line of thinking is winning favor in multiple other states, representatives told a panel at the recent National Council of Legislators from Gaming States meeting in Denver.
“There was a knee-jerk reaction; I was hit hard and heavy on the cannibalization argument,” said Senator Tim Lang from New Hampshire.
New Hampshire’s iGaming bill was torpedoed in the House earlier this year following operator concerns that are apparently dissolving.
“It didn’t matter what data we showed [the state’s 16 small gaming operators], they were heavily opposed. Now they’re calling me, saying ‘wait, we want in’.”
Taste of wonder: Tunes were changed by the pandemic, said Helen Keeley, director of the Delaware Lottery, because when the casinos closed everyone turned to online. “That’s where it went. Retail sales shot up and probably would have been higher if we had iLottery,” she added.
It was the casinos who eventually broached the subject, she said, and are keen to work with legislators to create a bill that can help them become more successful.
“We’re working on something not too dissimilar to everywhere else that has iLottery; it’s about driving business from online to brick and mortar and vice-versa.”
The old college try: Iowa has repeatedly failed to pass legislation in recent years, but proponents may eventually get there if they continue with the outreach, said Senator Jacob Bossman.
“We’re getting a lot of pushback. There is hesitancy. I’m pessimistic it will pass but I think we’ll see progress next year,” Bossman said.
“The casinos are mostly destination locations – golf courses, concert venues, hotels – there is a lot of concern that this infrastructure has been built up and that the investment will be wasted.”
His point was countered by Howard Glaser, global head of government affairs at Light & Wonder, who said “the casinos themselves want it”, and this is the “ultimate test”.
“The casinos, you would think, have the most to lose, yet every major casino in the country wants iGaming, because they have seen the effect, the cross-pollination of their customer base, in an industry that otherwise has no growth.”
Glaser spent most of the panel debunking online gambling myths from cannibalization to KYC concerns.
Carolina foursome
Gaming expansion talks in North Carolina could see the authorization of four casinos.
Four to the floor: A draft bill in the North Carolina Senate would authorize a single company to develop commercial casinos in three counties for a total of $1.5bn in investment, according to local media reports. The state currently has three tribal casinos run by the Eastern Band of Cherokee Indians and the Catawba Nation.
The bill also includes a specific provision for a fourth casino to be run by the Lumbee Tribe in the eastern part of the state, even if the tribe does not receive federal recognition, according to the draft bill.
Discussions are taking place alongside the negotiations over the state budget.
Senate majority leader Phil Berger said last week that expansion has about a 50% chance of approval before the session ends on August 31.
The media reports suggested a study found that the new casinos could generate approximately $1.7bn in wagers. Any applicants for the three commercial casinos would be required to spend at least $1.5bn in developing the projects, with at least $500m spent on each location. Casinos would pay a tax rate of 22.5% of GGR.
Recall, Gov. Roy Cooper signed the bill that made sports betting legal in June.
UK crypto
To the surprise of absolutely nobody – except perhaps the Treasury Select Committee – the UK government has rejected calls to regulate crypto as gambling.
Remember this gem: In May, the influential panel sent heads spinning by stating crypto assets should be treated as gambling and regulated as such. The UK’s financial services minister said the country won’t be following the suggestions of his colleagues on the committee as the government “firmly disagrees” with the idea.
Such a move would “run completely counter to globally agreed recommendations from international organizations and standard-setting bodies”, said Economic Secretary Andrew Griffith.
The UK has already started the ball rolling on crypto asset regulation, and is happy to continue wrapping the sphere into the existing realm of financial services laws.
Legislation currently before Parliament regarding promotions and marketing is set to enter force by late 2023.
UK notebook
Let my people in: The UK’s trade association for the amusement arcade and gaming machine sector has said simplified employment laws are desperately needed to help resolve a jobs crunch.
BACTA CEO John White has written to the government to outline the crisis afflicting the sector, as Brexit-induced restrictions and the post-pandemic slump have triggered a severe labor shortage.
Last year, the government approved a short-visa scheme for construction workers but nixed a similar proposal for the hospitality sector.
“From a business perspective, the free movement of people was a godsend; however, it was not what the population voted for in 2016 and it’s unlikely to return,” White said.
“The big challenge for this and future governments is to identify how to replicate the benefits of free movement and balance the outcome with the political imperative of demonstrating that the UK has control of its borders.”
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European notebook
Kindred: The Swedish operator Kindred says it is on track to generate no income from problem gambling, after disclosing its latest player harm data. The operator’s share of revenue from high-risk players dropped to 3.1%, the company reported. It also measured intervention improvements at 86.4%, the highest number for a year.
Lithuania: The Gambling Supervision Service found the Betsson-owned Betsafe in violation of the country’s gambling law after it found the site was offering a live dealer product without the appropriate certificate. No further sanction was applied after the regulator found the offenses to be of a minor nature.
France: The regulator L'Autorité Nationale des Jeux (ANJ) has established an information sharing and exchange framework with advertising watchdog L'Autorité de Régulation Professionnelle de la Publicité. The regulators will also collaborate on new products and tools to better control gambling advertising in the country.
Asian notebook
Japan: The schedule for Nagasaki’s IR bid may have to be adjusted, according to the city’s Gov. Kengo Oishi, who said that the amount of time it took for the national government to approve MGM Resorts’ casino in Osaka could impact its timeline, reported Inside Asian Gaming.
Australia notebook
Tabcorp has published a responsible marketing and advertising position statement, which outlines the principles that guide its marketing and advertising operations. The statement said the company was in favor of tougher restrictions on betting advertising to protect young and vulnerable people.
It confirmed that the company supports banning advertising during prime-time viewing on free-to-air television and establishing a framework for regulating online gambling advertising.
Content that could appeal to minors, depict minors, or someone who appears to be under 18 years of age in advertising or marketing material is strictly prohibited including on social media.
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