Tribes dangle 2028 OSB carrot in California
Renewed Cali hopes, Florida petition binned, Svenska Spel fine, 888 license review +More
Patience will be needed over sports-betting hopes in California.
In +More: Minnesota bill likely to pass, Crown regains license.
Mobile sports betting lives in Florida, as challenge thrown out.
Svenska Spel hit with $9.5m fine for breaches in duty of care.
The UK Gambling Commission takes its time dismissing 888’s license review.
Thought he was done, man, thought he was finished.
California dreaming, again
Back in the game: Indian Gaming Association conference chair Victor Rocha told Compliance+More that retail sports betting will be back on the ballot in California in 2026, with mobile to follow in 2028 if all goes to plan. “The tribes that matter, the politically active ones who have put money into this, are united on that approach,” said Rocha.
“The tribes can wait longer than that,” he continued. “We know how important this is. It is not just about us. It is about ensuring our tribes’ futures.”
“You need to treat it with kid gloves because Californians don’t care. Nobody is gonna start a revolution over sports betting.”
Doom loop: Recall, the US online industry led by FanDuel and DraftKings made an ultimately failed attempt to put a question about sports betting in front of California’s voters in the 2022 midterms, which raised the antipathy of the tribes at the time.
The effort lost by a wide margin in part due to a ‘spoiler’ question put forward by the tribes.
A subsequent quixotic attempt late last year from an outfit called Eagle 1 to cajole the tribes into supporting another ballot measure for this year met with implacable opposition in January, with Rocha publicly calling the effort a “clown car.”
Bridge over troubled water: More recently, FanDuel appears to have changed tack with its lobbying efforts in relation to California and the tribes. In late February, it appointed departing National Indian Gaming Commission chair E. Sequoyah Simermeyer as its new VP of strategic relations, a move that appeared designed to mend bridges with the tribal community. DraftKings has also recently sponsored several tribal initiatives.
Rocha said industry executives have admitted the error of their ways and are “doing the mea culpa tour.”
He suggested they were cosying up to the tribes with a view to speeding up the path to mobile betting.
Best supporting roles: The industry fears being reduced to the role of tech provider, with California’s tribes taking heart from the Seminoles’ success in Florida and rejecting the approaches of Michigan and Arizona.
“It’s hard to genuflect when your knees are shaking,” concluded Rocha.
Armalytix versus today’s operator manual affordability and SOF-AML process:
2.5x more customers returning their financial documents
3x faster document return from customers
30% remote sector completion rates
85% land-based sector completion rates
Keep your players playing and meet the regulations, today and tomorrow.
Armalytix, an RAISP since 2019, is leading the market in 6 different industries and growing. Simple, safe and effective financial risk checks. Get in touch.
+More
The major proponent of sports-betting legislation in Minnesota said there is a good chance the bill will pass. Talking to local media over the weekend, State Rep. Zack Stephenson said: “I think momentum is building, I think we have a great chance.”
Crown Resorts has won back its license to operate a casino in Melbourne. At a press conference today, Tuesday, the chair of the Victorian Gambling and Casino Control Commission said the conclusion of suitability came after careful consideration of the findings of recent inquiries into Crown’s actions.
The Malta Gaming Authority has canceled the license of online gambling operator BTM Entertainment with immediate effect. The MGA ordered BTM, which originally had its license suspended in 2019, to settle all outstanding fees with the regulator within seven days of the cancellation notice.
DraftKings has expanded its relationship with Kindbridge Behavioral Health to provide access to problem gambling treatment in each state in which the company operates.
GLI has become the first testing house to gain approval from the Brazilian authorities to certify equipment, programs, instruments and devices for betting systems, live game studios and online games for the newly regulated market.
What we’re reading
Rece Davis’ gambling joke came at the worst possible time for legal sports betting.
Gaming in Spain
The latest edition of the Gaming in Spain event takes place on May 6 in Madrid. Among the speakers are Santiago Asensi, managing partner at Asensi Abogados, talking about the latest regulatory developments and an IMGL masterclass. For ticket enquiries click here.
Florida OSB survives
Must have used the wrong line: The Florida Supreme Court has tossed a challenge to the state’s agreement with the Seminole Tribe of Florida that allows them to offer mobile sports betting. The court cited procedural reasons and allowed the continuation of wagering, which the tribe began offering last November after striking a deal with the administration of Governor Ron DeSantis.
Two of the Sunshine State’s oldest pari-mutuels, West Flagler Associates and Bonita-Fort Myers, a casino and a poker room, respectively, have tried to scupper the deal, which allows the tribe to offer sports betting from anywhere if the bets are routed through servers on tribal land.
But the Seminole’s opponents filed the wrong kind of petition, the court said in an 11-page opinion by Justice Meredith Sasso.
A ‘quo warranto’ claim is a challenge to a government official’s authority to take an official action; DeSantis signed the contract permitting the Seminoles to offer sports betting in 2021.
You have no authority: The court found the opponents were challenging the substance of the compact rather than DeSantis’ authority and had no choice but to throw out the request as it would undermine parts of the Florida Constitution, said attorney Daniel McGinn of Jones Walker.
Lawyers for the pari-mutuels declined to offer comment when contacted by C+M.
It ain’t over til it's over: The Florida Supreme Court ruling permits the opponents to file a motion for a rehearing on the case, and the pari-mutuels have petitioned the US Supreme Court to step in. They believe the deal gives the tribes a monopoly and bypasses a 2018 amendment that states the right to offer gambling outside of tribe land should go to a citizen’s referendum.
The DeSantis’ administration has said sports betting is unlike casino gambling and isn’t banned under the constitutional amendment.
From the tribe’s perspective, it believes the legislature has the power to decide on where online gambling is initiated and no amendments to the constitution can alter that.
However, the opponents argued it amounts to a significant overreach of powers by DeSantis and the Florida Legislature.
“This question is exceptionally important not just for the people of Florida, but for the nationwide precedent it will set for other state-tribal compacts if the Court of Appeals’ affirmative answer is left undisturbed – as an end-run not just around state-law prohibitions on gaming off tribal lands, but also around Congress’ limitation of the Indian Gaming Regulatory Act’s federal imprimatur to gambling on tribal lands,” said Hamish Hume, lawyer at Boies Schiller Flexner.
This is the real quiz: As it stands, the deal will bring hundreds of millions of dollars for both the tribe and Sunshine State government, and may be worth more than $4bn by 2030.
The ruling “is a major victory for the people of the state of Florida, who can count on billions of dollars over the coming years to fund important state needs,” said Gary Bitner, a spokesperson for the tribe.
“Floridians and visitors can enjoy statewide sports betting and expanded casino games, now and into the future. And it means the Seminole Tribe of Florida can have confidence in the future,” Bitner said.
Svenska Spel in hot water
Spel bound: The erstwhile Swedish gaming monopoly operator and current lottery incumbent has been fined SEK100m (~$9.5m) for what the regulator said was breaches in its duty of care to its customers.
According to the Spelinspektionen, Svenska Spel failed to adequately implement restrictive measures and apply player access restrictions.
Moreover, when measures were implemented, they were often executed too late.
The Swedish gaming authority looked into details of Svenska Spel’s top 10 customers who had incurred losses between Oct21 and Dec21 and found all 10 displayed signs of excessive gambling.
Specific failures included inadequate and delayed actions regarding high deposit limits, substantial deposits and significant losses.
Even though Svenska Spel reduced some of the players’ thresholds, the regulator said such measures should have been taken earlier.
Get the message: According to the authority, relying on messaging to customers is insufficient for protecting them against excessive gambling and assisting in reducing their habits. Furthermore, it found that sending direct marketing to customers at risk was a violation of the duty of care.
More fines: Meanwhile, Spelinspektionen has handed iGaming supplier Yggdrasil an SEK300k ($28k) fine for supplying unlicensed operators with content. The violation came to light last year and the supplier rectified the situation within a week of being notified.
BettingJobs is the global leading recruitment solution provider for the iGaming, Sports Betting, and Lottery sectors. Backed by a 20-year track record of successfully supporting the iGaming industry, it's no surprise BettingJobs is experiencing rapid growth and outstanding results. Does your company plan to expand its teams to cope with strong demand and growth?
Contact BettingJobs today where their dedicated team members will help you find exactly what you are looking for.
888’s UK clean bill of health
What was all that about? The Gambling Commission announced that it had concluded its review of 888’s license on Friday. The review was triggered by a group of investors led by former GVC CEO Kenny Alexander and chair Lee Feldman taking a significant shareholding in 888 in mid-2023. This set in motion a sequence of events, as per the original statement.
The group made a proposal that would have installed Alexander as CEO, Feldman as chair and former Betfair CFO Stephen Morana as 888 CFO;
The Gambling Commission expressed its concern regarding the ongoing HMRC investigation into GVC’s activities during Alexander and Feldman’s period in charge;
888 requested clarification from Alexander and co about these concerns “but the most basic assurances that addressed these concerns were not forthcoming”;
The Commission was extremely concerned about Alexander’s move on 888 and initiated the license review;
888 terminated the discussions as it believed Alexander had “no reasonable prospect of being approved by the GB Gambling Commission.”
The show must go on: At this stage it might have been thought that was the end of the story and everyone could go home happy. But apparently not. The Gambling Commission needed to complete its review. Compliance+More asked why.
A Commission spokesperson said: “We understand from 888 Holdings the management proposals put forward by the new shareholders are no longer being pursued, and have not been for some time.”
“As a result of this, alongside wider assurances provided as to those involved in the management of the operator, it has not been necessary for the Commission to make any determination in this case or to make any assessment of the suitability of the proposed individuals, and we have therefore discontinued the review of 888 Holdings’ license to operate with no further action required.”
But why did it take eight months to come to this conclusion? “We keep investigations open as long as we deem necessary,” the spokesperson stated.
Affiliates quality mark
Quality control: Gaming Innovation Group (GiG), Game Lounge and Leadstar Media are among the first to adopt a new international quality mark for iGaming affiliates, QMRA (Quality Mark Responsible Affiliates), which was launched last month across 10 jurisdictions.
The Dutch example: The launch of QMRA follows the establishment of the KVA quality mark for Dutch affiliates, which was launched in tandem with the re-regulation of the Netherlands market in 2021 and has been adopted by over 80 affiliates.
Operators such as bet365, LeoVegas, Tombola and others recognise the mark.
“There is a general feeling from affiliates that they want to show operators they are doing everything they can to be compliant,” said QMRA and KVA founder Steven Vrolijk of consultancy XY Legal Solutions.
The QMRA stamp of approval is available in Belgium, Denmark, Estonia, Germany, Norway, Poland, Spain, Sweden, the UK and the US state of Michigan.
Toe dipping: Vrolijk said affiliates have shown a particular interest in Belgium ”because affiliation was illegal and now it’s legal again but everyone is on their toes” and in Germany.
“Regulators like it. Operators like it. We have proof it works because of the success in the Netherlands,” he concluded.
Calendar
Mar 27-28: Player Protection Forum, London
May 6: Gaming in Spain
White Paper worries?
Department of Trust is the industry’s go-to platform for end-to-end frictionless and enhanced financial risk assessments anticipated by the White Paper.
Join Rank Group plc and other leading operators in getting a head start on the coming era of additional checks from the sector experts.
Book your demo today at https://dotrust.co.uk
Offices in London and Gibraltar. FCA, ICO registered. ISO27001 certified.
An +More Media publication.
For sponsorship inquiries email scott@andmore.media.
