Gambling’s wash-up blues
Doubt cast on UK gambling plans, West Flagler files with SCOTUS, industry snubs Massachusetts hearing +More
July election casts a shadow over UK gambling proposals.
In +More: Brazil ordinances, SkyCity NZ fine.
West Flagler files final brief to SCOTUS.
Brickbats for US OSB sector as operators skip betting limits meeting.
Swedish regulator back plans for credit card ban.
Since you've got to go, oh you'd better go now.
Election fears
Snatched from the jaws of victory: The proposals introduced just last week to loosen rules around machine limits in UK casinos look likely to be the victim of the legislative wash-up, as the current government rushes to clear the decks between now and the dissolution of parliament on May 30.
The sector fears the hard won gains, including an increase in the number of machines permissible in so-called 1968 Act casinos from 20 to 80, might not reach the statute books. The proposals were contained in a written statement from the minister with responsibility for gambling Stuart Andrew.
However, the proposals aren’t among the 16 bills listed as being active on the parliamentary website.
“There will clearly be huge disappointment that the reforms announced last week cannot now be implemented before parliament is dissolved,” said Andrew Cotton, senior associate at law firm Irwin Mitchell.
Making the effort: Cotton noted the “huge amount of work and effort” undertaken by the land-based operators and its trade associations in the past five years in persuading ministers and DCMS officials that customer protections and tracked play has “delivered a safer customer environment.”
John O’Reilly, CEO at Rank, the main casino and bingo hall operator in the UK, cautioned last week that the “good news” would depend on legislation being on the statute books before July and the then scheduled summer recess.
The forgotten war: Sources pointed out that it is highly unlikely any of the manifestos from the major parties will include much more than a cursory mention of gambling policy.
Labour, which currently enjoys poll leads of 20% or more, is hotly tipped to win the election.
Sources noted that an incoming Keir Starmer government is unlikely to have gambling as a priority. “It simply won’t be on the agenda for any incoming Labour regime,” said one industry lobbyist.
Checks and balances: There is more certainty over the other elements of the current government’s program on gambling-related issues, namely the vulnerability and financial risk checks where further legislation is not necessary.
As it stands, the UK Gambling Commission is committed to a six-month pilot program that will be launched towards the end of this year, after which the final proposal will be implemented.
However, as one industry executive suggested, there are fears that the recent softening of the language around frictionless checks may yet revert to the stricter wording of the White Paper.
“All the Labour MPs we have spoken to are much more in favor of the public health argument than the Tories,” said the executive on condition of anonymity.
Election stakes: According to the Betfair election markets, Labour has an 89% chance of returning with a majority while the no overall majority outcome is priced at just under 10-1.
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Brazil: Operators already active in the currently unregulated market will be required to obtain a license by the end of this year, according to the latest ordinance publication. From January 1, 2025, they will be prohibited from engaging in the activity and will be subject to penalties.
License applicants will be required to have HQ, admin and customer service systems located within Brazil, with subsidiaries of foreign companies obligated to have a Brazilian holding of at least 20% of their capital share.
In LosIngresos+Mas, hiring in the betting and gaming sector in Brazil grew by 37% at the end of April compared to the same period in 2023, a report by Michael Page has revealed.
According to the recruitment agency, the regulation of sports betting, approved last December, generated a significant number of job opportunities.
Giving it up: A day after settling with Australian regulators, SkyCity Entertainment has agreed a similar, albeit smaller, penalty deal with New Zealand authorities. It will pay around NZ$4.16m ($2.5m) after admitting five breaches of money laundering obligations following a probe by New Zealand’s Department of Internal Affairs.
The casino operator has set around $50m aside for its compliance flubs across both regions.
The Malta Gaming Authority has revoked Tipbet’s license and ordered the business to cease operations immediately. The regulator has taken an increasingly draconian approach to online operators this year, having stripped multiple operators of authorization.
Belgium’s gaming regulator has promised to meet with operators to discuss player protection measures at least once a year, starting this year in June. The meetings are a part of the amendments added to the country’s Gambling Act, which includes the ban on all gambling advertising set to take effect on September 1.
Compliance Manager – London, UK
Head of Compliance – Malta
SCOTUS brief
Brief encounter: West Flagler has submitted its final brief to the US Supreme Court, contending that an agreement to authorize sports betting in Florida breaches the Indian Gaming Regulatory Act.
The 2021 compact incorrectly authorizes online sports betting outside of tribal land, in breach of federal law, the pari-mutuel claimed.
Recently, the US Department of the Interior defended the Secretary of the Interior Deb Haaland’s decision to authorize the gaming compact and asked the Supreme Court to reject Flagler’s argument.
West Flagler argued Haaland didn’t have the authority to approve a compact that allows for gaming to take place off Indian lands and that the compact effectively gives the Seminole Tribe a monopoly.
Silence is golden: Gaming attorney Daniel Wallach said the Seminole Tribe would not submit a brief in reply to Flagler, which owns the Bonita Springs Poker Room and formerly the Magic City Casino in Miami.
As the briefing stage ends, SCOTUS justices will decide on whether to grant a writ of certiorari to West Flagler and review Florida online sports betting.
If SCOTUS denies the petition, the gig is up for Flagler with the court.
If justices accept the petition, a final ruling on Florida online sports betting may be handed down in late 2025.
Massachusetts no show
Waste of time: Massachusetts Gaming Commission commissioner Nakisha Skinner told a meeting called to debate betting limits, which was attended by only one operator, that it was “not a good use of our time today, given that we didn’t have our primary stakeholders as part of the discussion.”
Empty seats: Skinner was speaking after the Commission received notices from 10 operators within 72 hours of the meeting taking place that they would not be attending. Among the no-shows were DraftKings, FanDuel, Caesars, Fanatics and Penn Entertainment (representing ESPN Bet).
The only sportsbook representative to attend the meeting was Justin Black from Bally’s, which although it has a license from the MGC is yet to launch.
Small potatoes: The meeting had been called in the first place to discuss complaints from sportsbook customers within the state and media reports about operators limiting winning players to very small stakes.
The bird: The reaction on social media to the lack of sportsbook representation at the meeting was caustic. Joe Brennan, executive chair for Prime Sports, posted on X that it was “probably the biggest middle finger I’ve seen by licensees in the 20+ years I’ve been in this industry.”
Pro-gambler Roxy Roxborough responded to Brennan that the “next best step” would be for the MGC to draw up a regulation that requires operators to list minimum bet limits.
“That will get the sportsbooks to the next public hearing.”
The refuseniks had previously written to the MGC to ask for large parts of the meeting to be held behind closed doors in a so-called executive session. The operators claimed this was so as to protect trade secrets.
In an email to the Commission, FanDuel VP of product and new market compliance Cory Fox said the company did not believe it could have a “meaningful” discussion of betting limits in an open forum.
A letter from DraftKings said any meaningful discussion on wagering limits would “necessarily involve disclosure of the company’s confidential risk management practices.”
Look back in anger: Commissioner Bradford Hill said the operator no-show was “very disappointing,” adding that he shared Skinner’s “frustration, and I will go so far as to say anger that I have today for not being able to get a lot more information that I thought we would be able to get to start this conversation.”
“Although it was started today, it really didn’t give us the starting point that I hoped we would get,” he added.
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Sweden’s card sharps
House of cards: The Swedish gambling regulator has backed government proposals to ban gambling via credit cards, with a caveat. Spelinspektionen wants the ban to cover all forms of gambling, including lotteries, and has said it should also have the power to grant exceptions in specific cases.
The regulator added there was little analysis done on how the measure would affect operators that sell tickets digitally, and it voiced concern that the ban did not make explicit how wagers with account credits would be impacted.
Since credits linked to a bank account are also account credits, Spelinspektionen said this could mean operators must ensure credit limits are not used for payments with debit cards.
Wiseguys: Separately, the regulator also announced it has banned unlicensed operator WiseAvant OÜ for offering lottery-style games for skins. The skins were from multiple video games and can be sold outside of the games they are part of.
Spelinspektionen said the company had no authorization to offer games of chance or gambling products in Sweden.
The betting games were also advertised on various social media platforms, including Twitch.
Calendar
May 28-30: IAGA, Washington DC
June 6: Gaming in Holland
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