UK checks plans draw ‘Nanny State’ barbs
UK consultation criticism, Wyoming’s fantasy wobbler, Illinois’ second go, IGT’s court loss, Belgian warning +More
Good morning. On today’s agenda:
UK financial checks plans raise hackles.
Wyoming throws a spanner in the fantasy works.
Illinois’ second-chance license awards.
IGT sees its case against the UK National Lottery thrown out.
Belgian regulator’s ad ban warning, er, warning.
And now you do what they told ya.
Checks ire
UK Gambling Commission’s financial checks plans come under heavy fire.
Now with added vitriol: In a scathing editorial, Racing Post chief Tom Kerr lambasted the Gambling Commission over what he called an “offensive, meddlesome and damaging” set of financial checks proposals as laid out last week in the consultation document.
Kerr said there were three “deeply objectionable elements” to the UK gambling watchdog’s proposals.
These relate to the frequency of the checks, the attitude taken to previous winnings and the fact that for a “vast cohort” there will be no route available to the promise of frictionless checks included within the original White Paper.
Know nothings: Kerr said the consultation document revealed a “lack of betting knowledge and an unmistakable (though potentially unconscious) contempt for those who choose to bet”. Noting the plan to enforce checks every six months, Kerr questioned who exactly the Commission is trying to protect.
“What tiny percentage of a percentage of gambling harm is suffered by those who were sound in June, ruined by December and unable to sensibly adjust their own betting behavior as a consequence?”
On previous winnings, Kerr suggested the Commission’s proposals tie themselves in knots. The document states that a “big win a number of years ago may well not have any bearing on risk now”.
But then the Commission “leaps” without any attempt at explanation at a time period when previous wins can be taken into account of only seven days.
“The proposals could sound the death knell for exchange betting, with its reliance on high turnover market makers,” Kerr added.
Rallying cry: Kerr suggested the “true form of the government’s affordability checks strategy” is that of a “bouncer on your own bank account, prying into your financial affairs twice yearly to check you haven’t succumbed to state-proscribed irresponsibility”.
Something to hold on to: Kerr concluded that there is a “glimmer of hope” that these remain proposals for now with the consultations process giving opponents of the plans the opportunity to state their case.
High stakes indeed: “It is no exaggeration to say the future of betting as we know it – and the racing industry which relies on it – is at stake,” Kerr concluded.
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Brewing trouble
Wyoming sends cease-and-desist letters to Underdog Fantasy and PrizePicks, according to reports.
Caught in a landslide: The fantasy apps providers have both been accused by the Wyoming Gaming Commission of offering illegal unlicensed sports betting, according to LegalSportsReport.
According to the website, the letters go on to say that the Commission “became aware that your business offers gambling on sporting events to Wyoming residents”.
The letter added that both “purport to offer fantasy sports contests but, in reality, the offering appears to fall under the exact definition of ‘sports wagering’”.
“This offering may violate Wyoming’s gambling laws.”
No escape from reality: The rumbling of regulatory discontent around the status of some fantasy offerings has been building. The Wall Street Journal recently focused on the disagreements between PrizePicks and rivals FanDuel and DraftKings over the definition of fantasy and gambling.
FanDuel’s head of state government relations Cesar Fernandez told attendees at the recent National Council of Legislators from Gaming States summer conference in Denver this month that “there are companies today posing as fantasy-sports operators and they are running illegal sportsbooks”.
This town ain’t big enough for the both of us: Responding to the WSJ article, the Coalition For Fantasy Sports, a lobbying organization funded by Underdog Fantasy, PrizePicks and Sleeper, told LSR it was “unfortunate” DraftKings and FanDuel “have changed their tune at the first sign of competition”.
“It’s a thinly veiled attempt to create a false narrative and position themselves as the only games in town,” the statement added.
“The narrative they’re spreading directly contradicts the laws they helped to write and pass – laws that make crystal clear that fantasy sports are not sports betting.”
“Their anti-competitive approach is disingenuous and is bad for consumers.”
A Betr offer: Adding fuel to the fire, the previously micro-betting-only operator Betr yesterday (Monday) launched its own fantasy sports offering called Betr Picks.
On LinkedIn, CEO and co-founder Joey Levy said the launch of real-money fantasy in states such as California, Texas and Florida would enable the business to “more fully capitalize on the nationwide media audience and brand of Betr Media”.
He added that the move was a step towards “building a real money gaming super app”.
This launch represents the “first time a regulated sportsbook and fantasy product are in the same app”, he said.
“Companies like FanDuel and DraftKings were rushed to get their sportsbooks and online casino products out post-PASPA, meaning their fantasy sports products have lived in separate apps since.”
Second time lucky
Over a year after failing to find any takers, Illinois manages to fill one of its OSB-only license slots.
Bite of the cherry: Betway has taken the bait as the Illinois Gaming Board managed to find a bidder for its three open online-only licenses after signally failing to manage the feat in May last year. Applying under the name of its Digital Gaming Corporation subsidiary, Betway bid $22.5m for the license, above the $20m minimum requirement.
Not there yet: DGC was part of the failed licensing process last year when it pulled out of the bid. The company still has to go through a full vetting process.
At the same meeting, the IGB also approved Hard Rock for a land-based and online license to be attached to its Rockford property.
The company also has to comply with all licensing rules before it launches.
Window of opportunity: Meanwhile, the Arizona Department of Gaming has opened a fortnight-long window for applications for three more licenses. One license is reserved for tribal entities and two will be offered for sports franchises within the state.
The ADG added the determination of which applicants would proceed would be announced at the end of the month.
North American notebook
New York: Sen. Joseph Addabbo, who serves as chair of the Committee on Racing, Gaming and Wagering in the state senate, told NYCasinos.com that the process for deciding which of the bidders will get to win the downstate licensing race remains on track despite the apparent lack of progress.
Still, Addabbo suggested the names of the winning bids won’t be known until the first quarter of next year.
“Like I said, I’m an optimist; I just want to see the process continue rather than be stagnant. In other words, let’s get to it,” he told the website.
Massachusetts: Three land-based Massachusetts casinos have been fined for taking bets on college sports. MGM Springfield, Plainridge Park Casino and Encore Boston Harbor were sanctioned by the Massachusetts Gaming Commission separately for breaching state law.
Plainridge Park Casino and MGM Springfield were fined $20,000, while Encore Boston Harbor must pay $10,000.
The trio allowed players to bet on regular-season games featuring teams from colleges in Massachusetts; wagers can only be taken involving tournaments of at least four teams.
The rules entered force in January when the state launched a regulated sports-betting market.
UK lottery court decision
IGT sees its case against the UK National Lottery thrown out.
Hammer down: The UK’s High Court has dismissed IGT’s legal challenge to the awarding of the fourth National Lottery license to Allwyn. The provider sued the UK Gambling Commission under European human rights law, arguing that the decision to go with a rival bid had cost it “marketable goodwill”.
That’ll learn ya: The company was originally joined in the action by Camelot, the previous license holder since the lottery’s inception in 1994.
But it withdrew its writ to sue after it was sold to Allwyn by previous owner, the Ontario Teachers’ Pension Plan, for a rumored £100m.
Silence in court: The judge ruled that IGT, which was seeking damages of £600m, had merely been the tech partner in the Camelot bid and this didn’t have the “necessary standing to bring this procurement challenge”.
“On the face of it, that would appear to mean this claim must fail,” the judge added.
UK notebook
BACTA restructure: Fresh from badgering the government to relax rules on migrant workers, the British Amusement Catering Trade Association has remodeled itself with a new set of elected members. Industry veteran John Bollom, managing director of Swansea’s Mumbles Entertainment Pier, is the new national president of the arcade industry lobby group.
Joseph Cullis, owner of Scottish operating company Windmill Leisure, was elected vice-president, with a total of 45 members taking up positions as the association streamlined its structure.
Belgian warning
Belgium’s regulator says operators must display ‘mandatory preventative messages’ across all products despite also subjecting them to an ad ban.
Turn on, tune in, drop out: An ad ban entered force across the country from July 1 that halted betting advertising across media platforms. Kansspel Commissie (KSC), the Gambling Commission of Belgium, has said any communication or message visible to the customer must contain preventative statements.
Alongside the enforcement of Belgium’s gambling advertising ban, the KSC updated its player harm tagline from ‘Please play in moderation’ to ‘Gambling is addictive’.
All forms of gambling advertising, including TV commercials, radio, cinema, digital channels, social media, magazines, newspapers and public posters, are banned.
From July 2025 onwards, Belgian sports clubs and leagues will also have to comply.
Wynn settlement
Casino titan Steve Wynn ends a five-year legal battle with Nevada gambling regulators over sexual misconduct claims.
Wynn has agreed to pay a $10m fine and walk away from the industry he helped mold in Las Vegas. The Nevada Gaming Commission began investigating allegations over Wynn’s behavior in 2018, causing him to stand down from the corporate empire he began in the 1960s.
Wynn, 81, admitted no wrongdoing and did not attend the hearing held in Carson City.
The decision was 4-0, with Commission chair Jennifer Togliatti abstaining from the vote due to a conflict arising from her days as a state court mediator.
Wynn’s attorney Colby Williams called the case the final regulatory matter that Wynn faced stemming from the allegations.
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Australian notebook
Crown Resorts: The Australian casino operator has introduced ‘four pillars’ of player safety designed to reduce gambling harms at its properties under the banner Crown PlaySafe. The company has already implemented a number of new initiatives including:
The introduction of mandatory carded-play and pre-commitment systems at Crown Melbourne.
Cashless gaming on electronic table games at Crown Sydney.
A$10 maximum bet limits on electronic gaming machines at Crown Perth.
A new Resorts-wide online self-exclusion portal.
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