Relax! UK casinos get machine fillip

UK casino changes, Dutch tax shock, Ohtani revelations, Mass. probe +More

May 21, 2024

UK to allow more gaming machines in casinos.
Dutch coalition throws up gambling tax hike proposal.
Report: former Ohtani teammate ‘bet with illegal bookie’.
Massachusetts to probe winning punter caps.
Down under: AUSTRAC, SkyCity agree penalty sum; Star lifeline.

UK casinos get more machines

This is the modern world: The UK government has finally admitted that the advent of online gambling over two decades ago has changed the calculations around B&M gaming, and has loosened restrictions on the number of gaming machines the majority of high-street casinos can offer.

In its response to the Gambling Act review White Paper, the government has upped the limit on the number of machines allowable in so-called 1968 Act casinos to 80 from the previous restriction of 20, depending on the size of the venue.

In other changes, cashless gaming is now allowed in casinos while, for bingo halls, the ratio of popular category B machines vs. category C and D machines has also been altered to 2:1.

Didn’t see it coming: Introducing the changes, the minister responsible for gambling Stuart Andrew said the previous legislation predated the rise of online gambling and had introduced a level of protection more suitable for a different era.

“The legislation had not envisaged the rise of online gambling and the ability to gamble at any time, regardless of location,” he said in a written statement to the House of Commons.
“In light of this, restrictions on availability are now less important for protecting customers than factors such as the characteristics of the product and the quality of monitoring a customer’s play in a venue.”

Andrew went on to say that the new measures would “support the land-based gambling sector and modernize the current outdated restrictions” while also complementing the other changes around stake limits, vulnerability and financial risk checks due to be introduced later this year.

It’s about time: Responding to the news of the changes, Andrew Cotton, senior associate at law firm Irwin Mitchell, said it had taken successive governments “far too long” to make the necessary changes.

“It is refreshing that there is an acknowledgement that the industry’s implementation of player protection measures on machines and the quality of customer monitoring undertaken in venues means there can be a significant relaxation of controls,” he added.

Here comes the cavalry: The news was also welcomed by Rank, which is the largest B&M casino and bingo operator in the UK. Hoping for legislation to be on the statute book by the time parliament enters recess in late July, CEO John O’Reilly said the legislation “cannot come a moment too soon.”

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New Yorkers say no: Caesars and partners SL Green and Roc Nation’s plans for a casino on Times Square have been dealt a blow with a poll showing that 71% of voters registered in or near the proposed site are opposed to the development. According to the New York Post, the survey found half of all voters were opposed to a casino in any of the five boroughs.

Virginia veto: Gov. Glenn Youngkin has, as expected, vetoed the bill that would have re-legalized so-called skill games in Virginia after the Senate rejected his amendments to the plan last month.

Youngkin had sought to amend the bill but the legislature overwhelmingly rejected his proposals, which included raising the tax rate and banning skill games if they were within 35 miles of a casino or HHR facility.

Ireland: Racing TV has said the proposed ban on all forms of gambling advertising between 5.30am and 9pm contained within the Gambling Regulation Bill would make the channel non-viable unless all forms of racing TV coverage are given an exemption.

Japan: The government should launch a second round for communities across the country to apply for the right to host a casino resort, according to Norifumi Ide, a former senior official under the country’s Ministry of Land, Infrastructure, Transport and Tourism.

Bulgaria: The ban on all forms of gambling ads has come into force this week.

Entain has finally received its full Nevada gaming license, five years after first being granted a temporary license. Outgoing chair Barry Gibson told the Nevada Gaming Commission late last week that the company now generated 100% of its revenue from regulated or soon-to-regulate markets.

Trolls: One in three student athletes who took part in this year’s Championship games received abusive messages from people betting on the matches, according to data from a survey undertaken on the NCAA’s behalf.

The data from Signify Group’s Threat Matrix AI-assisted intelligence service showed that high-profile events such as the recent March Madness tournament attract greater volumes of abuse or threats online and that 25% of the abuse was betting-related.

Dutch tax shock

Wilders beast: The proposal for a hike in gambling tax as contained within the coalition agreement of the new hard-right government in the Netherlands was roundly lambasted by industry associations, which suggested it brought the future of the regulated sector into question.

Something to agree on: The agreement between the controversial Geert Wilders’ Freedom party (PVV), which won last year’s election, and the more centrist New Social Contract, the conservative liberal VVD of current caretaker PM Mark Rutte and the populist Farmer-Citizen Movement would see the gambling tax rate rise to 37.8% vs. the current rate of 30.5%.

Peter-Paul de Goeij, director of the Netherlands Online Gambling Association (NOGA), said the proposed tax increase “endangers the viability” of the regulated market.

Buck passed: He suggested a hike of such a magnitude would see even less channelization. “We fear that the additional tax revenues will not outweigh the resulting social harm caused by Dutch consumers being increasingly attracted by illegal alternatives,” he said.

It would mean Dutch taxpayers were “left to foot the bill” of gambling harms caused by black market operators.

Existential threat: Meanwhile, the land-based gaming halls trade body VAN Kansspelen said the proposal would leave the sector, which is already struggling against online competition, economically unviable.

“It is crystal clear: without some adjustment of our already excessive tax burden, the legal land-based slots market – including all preventive measures currently in place – will collapse,” said VAN chair Henry Meijdam.
“If the current tax rate is increased even more, matters will be even worse. In any case, the estimated tax revenues will not materialize, because the tax base will simply no longer be there.”

Diary date: The proposals will be the subject of debate at the upcoming Gaming in Holland event on June 6. Tickets can be purchased via this link.

More Ohtani revelations

Somebody’s talking: Major League Baseball is investigating claims that former Los Angeles Angels infielder David Fletcher placed bets with illegal bookies, according to ESPN. Fletcher reportedly wagered through Mathew Bowyer, the same Southern California bookmaker who took bets from Ippei Mizuhara, the former best friend and interpreter for Shohei Ohtani.

Fletcher and Ohtani were close friends while playing for the Angels and, in March, the infielder told ESPN he was present at the poker game in which Mizuhara first met Bowyer.

Fletcher is now with the Atlanta Braves’ Triple-A team, while superstar Ohtani signed for the LA Dodgers in a record-breaking deal. It was reported that Fletcher placed wagers on sports, but not baseball.

Fletcher’s friend Colby Schultz, a former minor leaguer, also bet with Bowyer and wagered on baseball, including on Angels games that Fletcher played in, sources said.

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Massachusetts caps

Dancing on the ceiling: Lawmakers in Massachusetts have their crosshairs on winning limits imposed by sportsbooks. A Bay State gambler who won $13,500 on a Super Bowl prop bet with FanDuel has since had his wagers capped at $50.

The same punter has been limited by ESPN Bet and DraftKings, according to Bookies.com.
“At DK, I bet some overnight college basketball total, beat the line and they decided to limit me. It’s gotten worse and worse,” the gambler told the Boston Herald.
Multiple sportsbooks have briefed that their terms make it clear they can set limits or refuse wagers.

No cap: Complaints have until now been ignored on social media, but the Massachusetts Gaming Commission is taking up the matter today (Tuesday) to hold what has been billed as the first public hearing into the imposition of betting limits.

Representatives from legal retail and online operators will take part in the meeting, which could lead to further regulation.
Limits are commonplace in nearly every area of Europe, except for Spain, where a court ruled against Betfair and bet365 in 2021 and outlawed the practice.

Oz agreements

That’ll have to do: Australia’s government wanted much more, but SkyCity Adelaide has agreed with regulators an “appropriate” $44m (A$67m) fine after accepting multiple compliance failings. In a statement, the casino operator and the Australian Transaction Reports and Analysis Centre (AUSTRAC) said they had filed a joint submission with the Federal Court of Australia to propose the sum.

Prosecutors launched court action against the venue in December 2022, alleging egregious non-compliance with anti-money laundering and counter-terrorism financing laws.
SkyCity “failed to carry out due diligence on 124 customers,” investigators found.

I should be so lucky: A court hearing next month will determine if the penalty is acceptable. However, South Australia parliamentarian Connie Bonaros said the casino “can count its lucky stars” the punishment wasn’t much tougher.

“These are significant, very disturbing breaches that have been occurring over a long period of time and so what I am relieved about is that they’re finally being addressed,” Bonaros said.

Star lifeline

Rewrite the stars: Christmas has come early for Star Entertainment, as a license suspension hanging over its Queensland operation has been postponed until late December. Government investigators said they needed more time to assess the results of a major probe into the business, which was allegedly infiltrated by organized crime gangs and a money laundering hub.

The Star’s Treasury Brisbane and Gold Coast operations were originally handed a 90-day suspension from December 1 last year.
The government later pushed the trading ban back until May 31 this year and further deferred the suspension to December 20, Star said in a regulatory filing.
A second major inquiry is being held into failings at its New South Wales properties, with the final report due before the NSW Independent Casino Commission by the end of May.

Toxic link: Meanwhile, the company has been the subject of speculation after it said it had been approached by a number of parties, including Hard Rock. However, the latter denied any link, saying it was “not involved in, nor has it authorized, any discussions, activities or negotiations on its behalf in connection with a proposed bid for Star.”

The company added it was “investigating this matter and will pursue all necessary legal actions to protect our brand and reputation.”

Calendar

May 28-30: IAGA, Washington DC
June 6: Gaming in Holland

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