Game over! Nevada nixes arcade gaming
Nevada’s Dave & Buster’s move, AC smoking ban call, Florida sports betting +More
Controversial arcade betting play hits first regulatory hurdles.
In +More: Ohtani translator pleads not guilty, Tonko readies federal bill.
Atlantic City staff bid to stub out smoking.
Federal agency backs tribe in Florida sports-betting case.
You can borrow my hands and tell me I'm not here.
Dave & Buster’s busted
Arcade fire: A controversial initiative by amusement games chain Dave & Buster’s to allow for real-time betting on arcade gaming has hit a significant snag after Nevada’s regulators said they would not allow the firm to pursue “unregulated gaming” at their two sites in the state.
In late April, Dave & Buster’s announced a deal with gamification provider Lucra Sports to incorporate in-venue peer-to-peer betting via its app.
The app allows loyalty-program customers to compete with each other, earn rewards and unlock “exclusive perks.”
Minor issue: According to The Nevada Independent, Gaming Control Board chair Kirk Hendrick said earlier this week that enforcement agents had conversations with Dave & Buster’s management, which has operations in Summerlin and Henderson.
He said the locations wouldn’t offer wagering after the agents took a hardline stance “against unlicensed gaming.”
Hendrick said the Control Board “opposes activities that could promote underage gambling, as well as wagering activities by businesses catering to a significant number of minor clientele.”
Pac it in man: The news from Nevada follows regulatory interventions from Illinois, Ohio and Pennsylvania. In the latter two instances the state gaming boards are reported to be investigating the plans, while in Illinois the chair of the House Gaming Committee has put forward a bill that prohibits “family amusement establishment(s)” such as Dave & Buster’s from facilitating wagering and also bans advertising of the offering.
The Pennsylvania Gaming Control Board told PlayPennsylvania the plan from Dave & Buster’s was ”something we’re looking into to learn more.”
In Ohio, a Casino Control Commission spokesperson told CNBC it has “serious concerns” about Dave & Buster’s’ proposals, suggesting it appears to violate Ohio law regarding the facilitating of illegal prizes for skill-based amusement machines.
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North America
Going home: Ippei Mizuhara, who previously served as interpreter for LA Dodgers superstar Shohei Ohtani until he stole millions from his former friend, pleaded not guilty to bank and tax fraud on Tuesday. The not guilty plea was entered as a formality, as negotiations with prosecutors continue.
According to the feds, Mizuhara stole almost $17m from Ohtani to pay off sports gambling debts, and the ex-interpreter is expected to eventually plead guilty.
A trial is unlikely, however a pre-trial hearing was scheduled for June 14 with a trial date of July 3 set.
Mizuhara appeared in federal court Tuesday, where he waived the right to a grand jury indictment. Prosecutors said it is a “virtual certainty” Mizuhara will be deported to his native Japan.
Safety dance: New York Congressman Paul Tonko said he is finalizing a federal bill that will make sports betting safer for punters. The legislation, known as the SAFE Bet Act, will limit the frequency of sports-betting advertisements, with Tonko targeting advertising, affordability and artificial intelligence.
He wants language such as “free bets”, “no sweat” and “risk-free” banned; sportsbook logos to include “21 or over”; and for bettors to be unable to make more than five deposits in less than 24 hours
The SAFE Bet Act would also put guardrails on AI use, where operators can use intelligent algorithms to track player habits and allow them to personalize offers.
“We put a framework out, now we are wordsmithing it,” said Tonko at a community event in Saratoga Springs. “We are networking with folks to make certain we get [the bill] exactly as we intended.” The bill is expected in the coming months.
Global
Malaysia: Prime Minister Anwar Ibrahim has dismissed claims that the government is considering adding an additional casino in the proposed Forest City development on the southern coast of the country near Singapore. Bloomberg reported previously that government representatives had met with Genting Malaysia over plans for a casino.
Commercial
BetComply has partnered with independent test lab RiskCherry and legal advisory White Coral to provide a consultancy service for operators for suppliers looking to expand into new jurisdictions.
Head of Legal – Malta
Denmark Compliance Officer – Malta
Head of Compliance – Johannesburg
Atlantic City smoking ban
The air that I breathe: A handful of Atlantic City casino workers have asked a judge to ban smoking in the gambling halls, arguing that the “poisonous” atmosphere is making them sick.
Lawyers for New Jersey state have said a smoking ban could send its casinos under.
No ruling was forthcoming from Superior Court Judge Patrick Bartels, but he said was aiming to decide “as quickly as possible.”
Atlantic City’s nine casinos have not returned to their pre-Covid era in-person numbers, and they believe a smoking ban would torpedo their chances.
However, workers say the secondhand smoke they are breathing is contributing to illnesses including bronchitis, asthma and multiple cases of cancer.
Smoke gets in your eyes: Current rules allow smoking across 25% of the casino floor in Atlantic City, however it has been argued that, in reality, secondhand fumes are present in some manner throughout the casino floor.
Last month, a suit was filed by the United Auto Workers – which represents dealers at the Bally’s, Caesars and Tropicana casinos – to overturn New Jersey’s indoor smoking law, which bans it in virtually every workplace except casinos.
Similar campaigns are being fought in Rhode Island, Pennsylvania, Kansas and Virginia.
Florida sports betting
Throw the damn towel: The US Department of Interior (DOI) has requested that the Supreme Court reject West Flagler Associates’ long-running challenge to a sports-betting compact between the Seminole Tribe and Florida. The agency argued in a writ that the Indian Gaming Regulatory Act, while enacted prior to the online era, supports the compact’s legality.
Lawyers for the DOI said the agreement should be interpreted broadly to encompass modern economic developments such as internet-based sports betting.
The compact’s “hub-and-spoke” model, which classifies bets placed off-reservation to occur on tribal land because they are processed by on-reservation servers, complies with federal law.
Under the agreement, the Seminole Tribe has a 30-year monopoly on sports betting in Florida, with provisions for statewide mobile sports betting.
Smell what the Rock is cooking: Following ratification of the compact, the Florida Seminole Tribe launched its Hard Rock Sportsbook app, and in December committed to handing the state at least $650m over the next year as part of a multi-billion-dollar deal.
West Flagler Associates and the owners of the Bonita Springs Poker Room have been challenging the compact since its inception.
They argue it breaches the IGRA by permitting gambling off tribal lands and contravenes the Unlawful Internet Gambling Enforcement Act (UIGEA), and is a violation of the Fifth Amendment by establishing a monopoly based on race and tribal affiliation.
In its filing, the DOI said that an appeals court’s interpretation is consistent with IGRA’s regulatory framework, which limits gaming authorization to tribal lands but permits state and tribal agreements on related activities.
The DOI also contends that the compact is in line with the UIGEA, because it does not specify payment methods for online bets, and any future implementation must comply with federal laws.
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UK’s illegal gambling crackdown
Fight the good fight: The UK Gambling Commission has been taking the fight to the illegal market, with a flurry of activity aimed at disrupting black market operators and clamping down on affiliates sites that promote illegal offerings, according to CEO Andrew Rhodes.
Websites. Thousands of ’em: In a speech earlier this week at the Westminster Forum, Rhodes said the Commission had in the last six months referred over 7,000 website URLs to Google resulting in them being removed from search results.
He added that in 2023 the Commission issued 452 cease-and-desist and disruption notices.
This includes 291 cease-and-desist notices to illegal websites and 161 referred to Facebook for closure.
In January 2024 the Commission issued 98 cease-and-desist and disruption notices with 39 “successful disruption outcomes.”
Neverending story: Rhodes said the Commission has been working within outside agencies in a combined effort to tackle black market activity, including the National Crime Agency, Police Intellectual Property Crime Unit and the tax authorities to “deliver a combined approach wherever possible.”
He said the work to combat illegal activity “never ends and we clearly understand that.”
Rhodes said the Commission’s focus was “predominately on delivering risk-based, high-impact, upstream disruption outcomes” designed to restrict supply and access to illegal sites at scale.
He added that the Commission identifies websites with the largest UK footprint or profile and focuses on those with the “highest risk”, especially those websites and affiliates that target vulnerable consumers, such as Gamstop self-excluded players.
He specifically called out Facebook lotteries where, alongside the HMRC, the Commission has shut down operations, with those behind them paying £600k in penalties.
Warnings signs
GambleAware has called for improved messaging on gambling risks in London, including health warnings on advertisements. In a commissioned study, 46% said the message “Gambling Can Be Addictive’ was a better slogan to promote responsible gambling than the current ‘Take Time to Think’ campaign.
Calendar
May 28-30: IAGA, Washington DC
June 6: Gaming in Holland
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