Evolution given clean bill of health by New Jersey
Evolution’s NJ clearance, SEC fine for Portney ETF promo, 188Bet exits IoM, Star Sydney peril +More
Evolution says the investigation by New Jersey has been closed.
In +More: Alabama progress, Nigeria clarification.
The SEC fines ETF provider VanEck for keeping quiet on Portnoy promo.
188Bet surrenders its license in the Isle of Man.
The bell tolls again for Star Sydney.
Now pass the blame and don't blame me.
Evolution’s case closed
Let that be an end to it: The live casino supplier giant has announced the New Jersey Division of Gaming Enforcement has informed it that the investigation into allegations of misconduct has been closed and with no further action taken.
The investigation stemmed from a report in November 2021 prepared by an “unidentified firm” alleging links between Evolution and black market activity.
Evolution said today, Feb 20, the NJDGE “found no evidence that Evolution sanctioned, promoted, permitted or otherwise materially benefitted from its content offered by operators in any market that the NJDGE considers a prohibited jurisdiction.”
Getting better all the time: The company added it also conducted an internal review that found its compliance processes to be sufficient but that it “took the opportunity” to enhance its processes regardless.
“The NJDGE supports the enhancements that Evolution has made. The enhancements did not relate to any jurisdictional violations,” it added.
This ain’t over: Just last month, it was revealed that Evolution was subject to a shareholder class action over the same allegations of materially false and misleading statements regarding its exposure to gray and black markets between 2019 and 2023.
The investigative report ‘Evolution’s Online Casino Presence in Illegal Markets’ was released by a US-based competitor.
The report accused Evolution of involvement in sanctioned countries such as Iran, Sudan and Syria and also in black markets such as Hong Kong, Saudi Arabia, Turkey, Tunisia and the UAE.
Evolution responded at the time by reaching out to the NJDGE and promising an internal review of its policies and procedures.
Rockfall averted: Analysts at Jefferies welcomed the news saying it removed an overhang from the shares.
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North America
Alabama: A bill that aims to bring Alabama “the kitchen sink” of gambling from lottery and sportsbooks to new casinos got all the votes it needed in the state House on Thursday and will now head to the Senate.
If the state Senate votes to pass the bill, it would then go to voters as a proposed constitutional amendment on the general election ballot on November 5.
The bill, which comes as a pair, would legalize 10 casinos, sports betting and a state lottery.
It also creates a gaming commission, a law enforcement division and a process for casino licensing and sports betting.
Global
Parklife: Administrators have another six months to sort out the mess of the Park Lane Club casino in London following its 2022 sale to Playboy Club owner Metropolitan Gaming. In the latest report detailing work carried out from June 2023 to December 2023, insolvency specialists Begbies Traynor detailed attempts to pay off around £5.4m in unpaid bills held by the once high-flying, high-end London casino.
The UK tax inspector continues to probe the bankruptcy in relation to payments due to employees, Begbies disclosed.
The restructuring firm has until June 2024 to pay off the final creditors, with any further extension requiring approval from a judge.
Nigeria: A member of the Nigerian House of Representatives, Kalechi Nwogu, took to X last week to address what he said were “recent misconceptions” regarding a proposal he has put forward to evaluate the impact of the country’s OSB regime.
“Contrary to Instablog and other media reports, the motion does not aim to ban sport betting,” he said in a posting last Thursday.
He added the purpose of his proposals was to protect players' rights and ensure compliance with existing regulations.
“I am committed to fostering responsible gambling and creating a fair and transparent industry,” he said. “Let’s rely on accurate information and work together for the betterment of Nigeria.”
Careers+More
Sportradar has appointed Felippe Marchetti as integrity partnerships manager in Brazil, leading the strategic development of integrity services in the country. Part of his role involves overseeing Sportradar’s integrity relationships with the Brazilian Football Confederation and Conmebol, the South American football confederation.
SEC fines VanEck over Portnoy promo deal
Buzz kill: The decision on the part of ETF manager VanEck to keep from its fund oversight committee its payment to Barstool founder Dave Portnoy to promote a new social sentiment fund with the ticker BUZZ has landed the firm with a $1.75m fine from the SEC.
The SEC judgment doesn’t name Portnoy but does describe the involvement of “a well-known and controversial social media influencer” who is “known for commenting on sports, investing and other topics.”
Sources told the FT that Portnoy was the ‘finfluencer’ in question.
Alongside his work on Barstool and his regular pizza reviews, Portnoy also posts under the Davey Day Trader moniker and has a following among US retail investors.
Buzz cut: ETF.com noted Portnoy’s compensation was tied to the success of the fund in attracting new money. But it cited an ETF marketing expert as suggesting the efforts were poorly planned and executed.
“What’s the purpose of the influencer and what do you hope to accomplish?” the expert told the site.
“Dave Portnoy might be great at influencing over pizza or sports, but I’m not sure about the connection to ETFs.”
Look buzzy: BUZZ tracks 75 US large-cap stocks that “exhibit the highest degree of positive investor sentiment and bullish perception” based on social media and news articles, according to the VanEck promotional description.
Finfluenza: As C+M reported last week, the UK’s financial watchdog has recently expressed fears over “the rise of influencers promoting financial products”, including credit and investments on social media, which often targets younger age groups.
188Bet surrenders IoM license
Rock and a hard place: 188Bet has surrendered its Isle of Man license and is shifting its operations back to the Philippines. The move was announced via an email to its client base last Friday, Feb 16.
The email said that 188’s IoM entity Cube Ltd has handed back its license, adding that operations will now be handled by a new Philippine-based company, BestCommerce Corporation, which is licensed and regulated by PAGCOR.
In March last year, 188Bet exited the UK and Ireland citing concerns over heightened competition.
POGO stick: The move back to the Philippines comes even as the government turns up the heat on offshore operators or so-called POGOs. Two bills have been put forward in the House of Representatives that would seek to ban offshore operators.
Both bills advanced through the House Games and Amusements committee last week.
HB 5082 proposes the disbanding of all POGO operations in the country, while HR 1197 calls on the government to ban POGO operations.
Talk to the hand: At the same time, the chair of PAGCOR Alejandro Tengco spoke at the recent ICE exhibition about the Philippines being a welcoming home for operators looking to base themselves in the country.
He noted that of the more than 250 previous master and sub-licensees under the old POGO scheme that had reapplied since last year only 75 were still standing.
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Star Sydney in peril, again
Ring my bell: A second inquiry will be held into The Star, Sydney after Australian regulators were unconvinced the casino has redeemed itself enough to retain its license.
Barrister Adam Bell SC will return for a second stab after conducting the first probe in 2022.
His initial report concluded multiple serious compliance failings made the casino unfit for purpose and led to the suspension of its license.
Some of the findings included a notorious gang-linked junket operator running an illegal cage at the casino and Chinese debit card withdrawals topping more than $500m put through as hotel expenses.
Management were found to have repeatedly misled Australian and Chinese banks about the practice, concealed and lied to authorities regarding important compliance information, and breached license conditions on many occasions.
We go again: In response, The Star was required to show a “substantial shift” in its operations to address its failings and prevent further misconduct, New South Wales Independent Casino Commission chief commissioner Philip Crawford said.
But the regulator is not satisfied with progress after extending the appointment of interim manager Nicholas Weeks for what it said would be the last time; it believes changes are being pushed by the individual, not the wider business.
"The [commission] has had concerns about the extent that remediation is attributable to the manager’s oversight and direction versus what is being driven by The Star's reform agenda,” Crawford said.
“The Star has had 18 months to demonstrate that it has the capability and resources to regain its casino license.”
The casino will have every opportunity to prove it is capable of holding a license before Weeks’ appointment ends in June, he added.
Quality control captivates your party patrol: The new review will weigh Star’s cash reserves, as well as the quality of its management, reporting lines and compliance with internal controls.
“Bell Two will bring us back to the Bell Report and The Star’s efforts to regain its casino license in the shadow of that report,” Crawford said.
The next round of hearings will not be held publicly, unlike the first, however a report and recordings of interviews will be released after its conclusion in May.
Trading in Star Entertainment Group shares was halted on the ASX on Monday morning pending an announcement from the company.
AML update
Dirty cash: The full text of the European Union’s broad new anti-money laundering rules have been published following an agreement reached by the European Council and Parliament. With the new package, all rules applying to casinos and other applicable private sector entities will be transferred to a new directly applicable regulation.
A directive will deal with the organization of institutional anti-money laundering systems at national level in the member states.
The provisional agreement expands the list of obligated entities to include most of the crypto sector, requiring all crypto-asset service providers (CASP) to conduct due diligence on their customers, along with soccer clubs and agents.
CASPs will need to apply customer due diligence measures when carrying out transactions amounting to €1,000 or more.
The texts will be finalized and presented to member states’ representatives in the Committee of Permanent Representatives and the European Parliament for approval.
Calendar
Mar 5-7: SBC Summit Rio
Mar 20: Kindred Sustainable Gambling Conference, London
Mar 27-28: Player Protection Forum, London
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