Checks, mate: UK sector broadly welcomes new risk rules

New UK risk checks rules, Ohtani scandal widens, Alabama deadline, UK advertising ruling +More

May 02, 2024

A cautious welcome from the sector on the new UK rules.
In +More: Hermalyn ruling, Texas survey.
Stolen Ohtani cash washed via Vegas, California.
Alabama gambling effort hangs by a thread.
The Voice Kids host ‘doesn’t appeal to children’

What will we do when we have no money?

A cautious welcome on new UK rules

In agreement: The release yesterday of the new rules covering various aspects of the regulatory response to the UK Gambling Act Review White Paper drew a generally positive response as the sector attempted to digest a slew of documents released by the UK Gambling Commission.

Recall, the Commission yesterday set out the terms for the planned vulnerability checks as well as announcing a six-month pilot study of financial risk checks.
It also laid out new rules around remote games design, marketing opt-ins and age verification in retail.
Andrew Rhodes said yesterday the Commission had listened to the responses to its consultation process.

Interim measures: The Commission announcement was accompanied by a new voluntary code from the Betting and Gaming Council on customer checks, which is intended to cover the period between now and the formal introduction of the new risk checks at the end of the pilot study.

Charles Cohen, CEO at open banking-based services provider the Department of Trust, said the interim measures meant the industry “recognises the key principle that financial risk checks should take place at fixed points.”
“This has to be good for everyone,” he added. “The interim limits are high but the principle is the same. It’s the end of gambling’s ‘sus law’.”

Departure lounge: Melanie Ellis, partner at Northridge Law, said on LinkedIn that the monthly net deposit triggers of £5,000 or £2,500 for under 25s represented a “significant departure” from the Commission’s past assertions regarding customers spending more than the national average discretionary spend without documentary evidence.

She added her view was that operators would “still be expected to take action in response to clearly unaffordable spend (based on whatever information they have on the customer).”

It’s all me: The British Horseracing Authority, which has led a 'Right to Bet’ campaign aimed at attempting to get the government to change course on affordability checks, said it was “reassured” that it has listened to racing’s concerns.

“It is also to the credit of racing fans, and the wider racing industry, that their lobbying of government, whether through taking part in our ‘Right to Bet’ survey or signing the petition to trigger February’s Westminster Hall debate, has so clearly been heard.”
There was a more lukewarm response from racing’s political supporters.
Speaking to the Racing Post, Conservative peer Lord Herbert of South Downs, said: "“ think it deserves one cheer but certainly not three.”
“It’s only a step in the right direction on affordability checks, they’ll still bite on wealthier punters and it would have been far better to exempt racing altogether.”

I come not to bury Caesar: Bally’s CEO Robeson Reeves said on his company’s earnings call that the UK government and the UK Gambling Commission has “done a great job.”

“They worked well with the industry,” he added. “They’ve listened to all operators, and they’re doing the right thing for players. And this will be a good long-term environment for great operators to exist in.”

As more and more suppliers gravitate towards regulated markets to enhance their reputation, Compliable’s cutting-edge platform is able to service markets across North America, Europe and LatAm, helping providers to get licensed in the most streamlined way possible.

Swift application process – on average, it takes just 27 minutes to complete the onboarding journey
Key Licensing Module – decision makers can manage key licenses through a streamlined system
Unique Compliance Dashboard – apply across multiple regions and track applications from the outset

Find out more about Compliable’s licensing process here.

+More

Lack of provisions: Ex-DraftKings employee Michael Hermalyn will be severely restricted in what he can provide new employer Fanatics after a federal judge found he likely misappropriated valuable trade secrets before taking up his new post. However, US District Judge Julia Kobick in Boston stopped short of barring Hermalyn from working for Fanatics, as DraftKings wanted.

Diller killer: The Nevada Gaming Control Board has unanimously recommended full licensing for billionaire media mogul and MGM Resorts shareholder Barry Diller after he produced a letter from the SEC that his legal counsel said cleared him of insider trading related to the acquisition of Activision Blizzard two years ago.

Poison pen: Maine’s rejection of regulated online casino was in large part down to Steve Silver, chair of the Maine Gambling Control Board, it has emerged. In an op-ed for the Portland Press Herald, Silver talked up the potentially negative impacts of opening the market, highlighting examples from other jurisdictions and successfully lobbied lawmakers to vote down the measures.

Texas: A majority of Texan voters would support the establishing of destination casino resorts within the state, according to a new survey conducted on behalf of the Texas Hispanic Policy Foundation. The survey found 56% in favor and 30% against while 47% were also in favor of allowing sportsbooks at professional sports venues vs. 37% against.

Mississippi: The two remaining gaming bills in the state appear to be dead in the water having failed to make it onto the list of bills still being discussed in the current legislative session. This includes a measure that would have legalized OSB operations.

Ohtani scandal widens

Mo money, mo problems: Millions allegedly stolen by former LA Dodgers interpreter Ippei Mizuhara from superstar Shohei Ohtani may have been laundered through casinos and resorts in California and Las Vegas.

ESPN first reported that multiple payments of $500,000 suspected to have been taken from Ohtani’s bank account were wired to gambling accounts, converted into chips and cashed out in order to pay Mathew Bowyer, the alleged bookmaker.
Bowyer associates are said to have frequented Resorts World Casino in Las Vegas and Pechanga Resort Casino in Southern California as part of the operation.

A friend in California: Bowyer, who is at the center of a federal probe for running an illegal bookmaking operation out of Orange County, lost $7.9m in a year while betting at Resorts World.

His home was raided by feds in October, after which it became known he was running underground books and was then banned from casinos across the US.
Resorts World was served a federal subpoena last August over documents related to its anti-money laundering policies. The investigation is believed to be ongoing.

We don’t talk anymore: The story broke just before the start of the baseball season when Mizuhara’s gambling and alleged theft came to prominence after Ohtani’s name was linked to a federal probe.

The former interpreter and friend of Ohtani allegedly stole $16m from the two-way player, and had run up gambling debts of more than $40m from around 19,000 wagers.
He now faces up to 30 years in prison on wire fraud and theft charges.
Justice officials have said Ohtani is a victim who had been innocently duped.

Alabama deadline

Down to the wire: Alabama needs to flip a single vote to open the state for gambling for the first time in history, with lawmakers set to decide on the matter today. By the skin of its teeth, a package of legislation designed to repeal prohibition laws and allow for a lottery and new casinos is still alive despite confusion in the state Senate.

On Tuesday evening, a motion to concur with the six-member conference committee report for House Bill 151, a constitutional amendment, was made.
It failed, and puzzlement followed about what had occurred as at least one member had backed the bill vocally despite appearing to vote against it.
With more talks scheduled, the Senate needs one vote to get whatever passes to the desk of the governor.

Leftovers: After months of chipping away at two bills, the surviving legislation is a mishmash of previous efforts. It paves the way for a state lottery with revenue dedicated to education, electronic games of chance at seven locations, a gaming compact with the Poarch Band of Creek Indians, and traditional raffles and paper bingo.

It also mandates the creation of a gambling commission, an enforcement division and a lottery corporation.
Sports betting is not included in the latest version despite featuring in the initial tranche of proposals.
If both chambers pass the bill and it is signed by Governor Kay Ivey, voters would decide on August 20, 2024.

Non-gambling promos

Hard Rock in a hard place: The Massachusetts Gaming Commission is considering a ban on promotions and bonuses that are unrelated to gaming transactions. A similar measure is being mulled by the Ohio Casino Control Commission, which was angered by a Fanatics Sportsbook offer appearing inside a Fanatics retail apparel store.

The proposed rule in Ohio would require sports-betting operators with non-gaming interests (hello, Hard Rock) to use more appropriate language when communicating with consumers in their non-sports wagering business.
Massachusetts regulators said they would meet with operators before implementing any kind of non-gaming related promotion ban.
The state has tough advertising standards, and does not allow gambling advertising at any venue where 75% or more of attendees are expected to be under the age of 21.

120 Days To Comply

Frictionless affordability checks are required from 30 August 2024. No time to waste – email michael@dotrust.co.uk and join other leading operators including Rank and Lottoland on the leading dedicated platform for financial assessment.

UK lottery ad cleared

I’m a problem child: A UK TV lottery ad has escaped censure despite featuring the presenter of a light entertainment show involving children. British advertising regulators said the People’s Postcode Lottery ad, featuring Emma Willis of hit shows The Voice and The Voice Kids, did not breach age restriction guidelines following a complaint.

Although Willis presented a show that featured under-18s singing, the Advertising Standards Authority (ASA) was satisfied that she isn’t a children’s TV presenter.
Willis is also known for advertisements and appearances on reality TV and entertainment shows such as This Morning.

Whatcha talkin bout Willis: The ASA said it probed Willis’ social media accounts as part of its investigation, but deemed no further action needed be taken as the star’s followers were mostly adults.

“This ruling shows how difficult it can be to say with certainty whether a celebrity has strong appeal to children,” said Richard Williams, partner at Keystone Law. “It’s clearly important to analyze and retain reliable social media data on celebrities who may be used to advertise gambling and lottery products in the press or on TV.”
Over the last 12 months, the ASA has targeted multiple operators who have employed sports stars in ad campaigns as part of a crackdown on youth exposure to gambling.

Calendar

May 6: Gaming in Spain
May 7: SBC Summit North America Player Protection Symposium
May 28-30: IAGA, Washington DC
June 6: Gaming in Holland

GuardDog, powered by Underdog, is a pioneering investment fund dedicated to fostering innovation in responsible gaming.

GuardDog supports and accelerates early-stage startups focused on building new and creative solutions to address problem gaming and further responsible gaming.

Ready to be one of the underdogs of responsible gaming?

Visit to apply: https://underdogfantasy.com/guarddog

An +More Media publication.

For sponsorship inquiries email scott@andmore.media.