Gaining momentum: Mississippi’s online progress
Mississippi progress, Georgia catch, iCasino hopes, UKGC talks implementation, NFL betting advice +More
Mississippi takes a step towards OSB being added to the statute book.
In +More: Rank’s rummy retreat, Curaçao licenses.
Georgia makes progress with OSB – but with a catch.
UKGC and DCMS reveal next steps for White Paper implementation.
Ready for it? The NFL sends out betting memo ahead of the Super Bowl.
Every step of the way we walk the line.
One Mississippi
Roll on: Mississippi has taken a big step towards legalizing online sports betting as the House of Representatives overwhelmingly approved a bill that would allow the practice anywhere in the state.
The Mississippi Mobile Sports Wagering Act (House Bill 774) sailed through 97-14, paving the way for gaming operators to contract with Mississippi casinos to offer online sports betting. Currently, sports betting is only offered inside Mississippi casinos, with online betting available only through a casino’s app and only while on casino property.
Under the new regulations, punters would be able to choose which casino or platform to use regardless of their location within Mississippi.
Eure kidding: Republican Casey Eure, chair of the Mississippi House Gaming Committee, said about $64bn in illegal online wagers are placed in the US each year, with Mississippi accounting for about 5% of that total (~$3bn).
Sports wagering inside Mississippi casinos began on August 1, 2018, but online betting outside the casinos remained illegal, amid concerns of cannibalization.
Watch out for the little guy: Democratic House leader Robert Johnson of Natchez said he feared the online betting platforms would only want to partner with the larger casinos on the Mississippi Coast, putting some of the smaller casinos operating in his district at risk.
Republicans tabled an amendment and Johnson voted for the bill anyway, calling legal online sports betting in Mississippi “inevitable”, according to the AP.
The bill will next appear in the Senate, which has until April 2 to either adopt or reject it.
Not a done deal: Sen. Brice Wiggins of Pascagoula said the bill isn't necessarily a done thing, despite the overwhelming House support.
“I know the Senate has some questions about the legislation as it has been prepared by the House,” Wiggins told local media. “I think the Senate will want to look at it in greater detail, particularly as it pertains to the current infrastructure that’s in place for our casinos.”
Wiggins said he is open to adopting the measure, but on the proviso that Mississippi Coast casinos are “protected”.
“We want to make sure the environment stays competitive,” Wiggins said. “As I understand it, some of the new online gaming folks operate under a different business model than what we’ve traditionally had.”
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The Curaçao Gaming Control Board has issued its first licenses under the region’s new regulatory regime, according to iGB. They reported that White Star, part of Rhino Entertainment Group, has secured a new license for its CasinoDays, while Games and More, Geeka Corporation and Small House now have Digital Seals.
A rum business: Rank said its Passion Gaming rummy business in India was up for sale following the introduction of the new GST rate of taxation. We’re treating it as an asset hold for sale,” CEO John O’Reilly told analysts on the company’s H124 earnings call.
“The likelihood is that following the material change to GST or the sales tax regime in India that we’ll be disposing of the business to the shareholders and founders and expect to complete that in the next month or so.”
Ad break: The Ministry of Economic Affairs and Communications in Estonia has warned that any ban on gambling ads will “lead to a series of new concerns” and has recommended instead that a self-regulating system would be more appropriate. A ban was originally included in the coalition government’s agreement.
Sky limit: Casino operator SkyCity has agreed to pay a penalty of $75m for alleged breaches of AML and counter-terrorism financing laws in Australia. SkyCity said it has come to an agreement with Austrac relating to which breaches it would admit to in the proceedings and the amount it would pay as a penalty.
AML and compliance platform provider Kinectify has announced it will provide its AML module to Canadian online sports betting and casino operator BET99.
What we’re reading
Rot sets in: The Guardian investigates the murky world of skin betting.
Georgia’s problematic progress
Give the people what they want: The Georgia Senate has passed proposals to regulate sports betting via the Georgia Lottery, with the public to have the final say via a referendum. SB 386, sponsored by Republican Sen. Clint Dixon, would allocate taxes collected from sports betting to various financial aid programs.
“As our state evolves, it’s crucial to acknowledge the existing landscape with neighboring states already engaging in this activity,” said Dixon.
Currently, the only permitted forms of gambling in the Peach State are lottery and charity bingo, and lawmakers estimate around $5bn is spent on illegal sports betting.
SB 386 would allow wagering in the form of online sports betting, online games and instant tickets, but would still outlaw betting on “actual races” involving horses or dogs at tracks.
Under the bill, operations and revenues would be regulated by the Georgia Lottery, which would distribute profits to the Lottery for Education Account.
The choice is yours: Ultimately, the people should decide, said Sen. Bill Cowsert, who added an amendment noting a public referendum is necessary to amend the state constitution. He said the current bill is in danger of court challenges that would bog the sports-betting program down for years.
Cowsert’s proposed amendment passed, which means the bill will need a two-thirds vote in the legislature and then majority voter approval of the amendment for sports betting to be legalized in Georgia.
iCasino steps – New York and Illinois
Stop me if you’ve heard this one before: Attempts to give a shot in the arm to the stuttering progress of iCasino have been launched in both Illinois and – not for the first time and likely not the last either – New York.
The power of the Union: In the latter, State Senator Joe Addabbo has reintroduced an amended version of the bill to authorize iCasino and iLottery, which appears to go some way to meeting the demands of the unions regarding unionization with $25m in extra annual funding for training and education.
The deets: SB 8185 would authorize the state’s commercial and tribal casinos, racinos and online sportsbooks to apply for iCasino licenses plus an additional three licenses to be awarded to operators with at least 5% minority ownership.
The total number of available licenses would be 31.
The fee for a license would be $2m and an effective tax rate of 30.5% would apply.
Resurrection men: In Illinois, last year’s attempted iCasino bill has been resurrected and reassigned to the House Gaming Committee. HB 2239 would allow the state’s casinos and racetracks to apply for an iCasino license with three skins allowed per license. The tax rate would be set at 15%.
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UK next steps
Something wicked this way comes: UK Gambling Commission executive director Tim Miller revealed “something new for the sector” coming in the next few weeks with the implementation of financial risk checks set to be done in a pilot phase.
“Given how novel these changes are, we will not be turning on new rules,” said Miller at the World Regulatory Briefing in London yesterday, Feb 5.
“We will be setting up a pilot phase to see how the technology works and how it impacts consumers.”
Timed out: Sarah Fox, deputy director of the Department for Culture, Media and Sport, earlier said the department has a “really robust plan” for implementing “as many of the reforms as possible” from the White Paper by this summer.
However, she pointed out that the UK has a general election coming this year and said it was unclear how this might affect the timetable.
Recall, a parliamentary report at the very end of last year contained a warning over parliamentary time.
We are the world: Miller also revealed the Gambling Commission is working with the National Council for Legislators from Gaming States (NCLGS) on creating “model iGaming legislation” in the US that draws on the UK’s experience as the largest online gaming market in the world.
NCLGS president Shawn Fluharty announced his organization’s intention to help policymakers and stakeholders focus on iGaming regulation but the GC’s involvement is a new development.
Miller predicted a reduction in the Commission’s influence and standing as US regulators get up to speed with online gambling and sports-betting regulation over the next few years.
He said that international regulatory cooperation was particularly important for tackling the black market, where different bodies can show “strength in numbers and amplify our voices” when dealing with global organizations such as Google, which dwarf regulators in size and reach.
Big game warning
Ready for it? The Kansas City Chiefs (potentially with one Taylor Swift in tow) are headed to Las Vegas on Sunday to take on the San Francisco 49ers in the NFL Super Bowl LVIII. While a good proportion of those present in Sin City will have money down, the sport has banned the teams taking part from placing wagers.
NFL commissioner Roger Goodell sent out a memo last week to all players, staff and affiliated employees of the Chiefs and 49ers warning them that until the Super Bowl concludes on February 11 they will not be allowed to enter a sportsbook or place a sports bet (for any sport).
Casino games are also prohibited.
“Super Bowl LVIII is a highly anticipated and thrilling event for our fans and viewers. With fans across the globe tuning into the game and related events, we must all do our part to protect the integrity [of] our game and avoid even the appearance of improper conduct,” the memo reportedly read, per CNBC.
Staff of both teams were also told to explicitly avoid entering sportsbooks even just for food or drink, and are allowed to pass through only if it’s necessary to get to another part of the casino or venue.
Bowl cut: NFL players who are in Vegas for the big weekend but do not play for the Chiefs or 49ers will be able to gamble in casinos, but can’t bet on the NFL or enter a sportsbook until the end of the Super Bowl.
The updated guidance follows modifications to the NFL’s gambling policy, introduced last September to toughen punishment for players caught violating the league’s rules.
Players are given a minimum one-year suspension if caught gambling on NFL games and a minimum of two years suspension if caught betting on their own team.
During last year’s Super Bowl, sportsbooks in Nevada won roughly $5.5m in an estimated $153.2m wagered on bets between the Chiefs and the Philadelphia Eagles.
Note, the analysts at EKG are predicting $1.25bn will be legally bet in the US on the Super Bowl this weekend.
Calendar
Feb 6-8: ICE, London incl. World Regulatory Briefing
Mar 5-7: SBC Summit Rio
Mar 27-28: Player Protection Forum, London
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