Bet365 in hot water Down Under
Bet365 in Oz trouble, Ohio and Maryland take college prop action, Minnesota in-play threat, Alabama balks +More
Bet365 is under investigation by Australia’s AML authority.
In +More: DraftKings’ settlement, another Evolution lawsuit.
NCAA prop betting controversy as Ohio and Maryland move to ban.
Minnesota floats ban on in-game wagering.
Sports betting, casinos tossed from Alabama bill.
Every little thing I do is wrong.
Bet365’s Australian AML investigation
Hot water: Australia’s financial intelligence authority AUSTRAC is investigating bet365 over whether it has complied with its obligations under the country’s AML and counter-terriorism financing act. The authrority said the move comes after receiving a report from an external auditor that it ordered bet365 to appoint in late 2022.
AUSTRAC CEO Brendan Thomas said betting agencies have a significant role to play in combating financial crime.
“Corporate bookmakers must have robust systems in place to ensure they can manage and mitigate risks associated with money laundering and terrorism financing,” he said in a press release.
“Businesses without adequate processes in place to manage those risks leave themselves vulnerable to exploitation by criminals.”
Not just me: The 2022 order also cited Flutter-owned Sportsbet as having to similarly appoint an external investigator. Entain has also come under scrutiny.
The external investigation was ordered to examine compliance on the part of both companies with regard to looking into their AML and risk controls posed by customer types among other aspects of their customer monitoring.
Then AUSTRAC CEO Nicole Rose said at the time that the external audit order put both companies and the “whole industry on notice to lift their game.”
Power tools: The authority said today that it has a range of regulatory tools and enforcement powers available to it and “will not hesitate to take action where suspected non-compliance is identified.” As the investigation is ongoing, AUSTRAC said it was unable to comment further.
C+M reached out to bet365 but didn’t receive a reply.
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+More
DraftKings has agreed to a $22m settlement to end a legal dispute brought by former Golden Nugget Online Gaming shareholders over the acquisition of the company, which was completed in May22. The dispute centered around allegations of undervalued sale propositions and conflicts of interest on the part of Golden Nugget’s majority shareholder Tilman Fertitta.
More suits than Burtons: Evolution has been hit by another class action lawsuit, this time led by the law firm Pomerantz, which is seeking information from potential plaintiffs about alleged securities fraud.
A separate suit was filed in January in a US District Court for the Eastern District of Pennsylvania alleging it deceived investors about its growth trajectory and compliance practices.
Recall, just last month the New Jersey Division of Gaming Enforcement concluded it would take no action regarding allegations of misconduct.
Don’t call it a cyber hack: The Nevada Gaming Control Board said no personal information was accessed or acquired by rogue parties following a cybersecurity blip in late January. Billing it a “website security incident” and definitely not a cyberattack, the regulator said it shut down its website after becoming aware of the “incident.”
The gambling advertising ban in Belgium has been given Royal approval and will come into force on September 1.
Maine: An amended version of a bill to allow tribal online gambling has passed a key standing committee stage.
Pennsylvania: Competing bills to alternately legalize or ban skill gaming machines are vying for further consideration in the state house. The pro-bill has been referred to the House Gaming Oversight Committee and would tax the machines at 16% of GGR.
Notably, Gov. Josh Shapiro has included revenue from legalized skill games in his 2024-25 budget proposal and has said he plans to regulate them as of July.
The competing bill to ban skill gaming machines has stalled since being introduced late last year.
College prop betting bans
Bring me down: Five years into legal sports betting in the US and the regulatory pushback on a variety of fronts is hard to avoid. One of those is college betting, which has been a controversial subject from the jump.
Oh-io: Renewed interest in the topic has flared up courtesy of the NCAA (National Collegiate Athletics Association) and Ohio. The Ohio Casino Control Commission decided to ban proposition bets involving college players, and it’s unlikely that’s the last we’ll see of such efforts.
States have taken various approaches to college sports betting, from banning it entirely to only banning betting on schools and events in a specific state. A legislative effort to allow in-state college betting in Virginia recently failed.
We’ve also seen some traction to have sportsbooks ban bettors who harass athletes, including Ohio (law in 2023) and West Virginia (current legislation).
Hail Mary-land: The move was followed by a similar ban introduced in Maryland on all player-specific prop bets on individual college athletes during sporting events in the state. A spokesperson for the commission said the decision was made in the interests of protecting college athletes from potential harassment related to their individual statistical performances.
Operators were instructed to remove these markets as of March 1.
Not the only ones: The moves in Ohio and Maryland come amid recent negative stories related to colleges and betting, including:
A criminal probe involving college athletes in Iowa.
A betting scandal involving the former Alabama baseball coach.
The arrest of NFL player Kayshon Boutte for placing wagers while playing at LSU.
State of the game: Heading into a time of increased scrutiny on colleges and gambling, here’s where things stand in states that limit college betting in some way. Some states fall into more than one category; some only have retail sportsbooks. The web of legality is at best confusing:
Ban on any bets involving in-state schools: Connecticut, Delaware, Illinois (banned at online sportsbooks, allowed at retail sportsbooks), Iowa (ban only on in-state player props) Maine, Massachusetts, Nebraska (only on games played in the state), New Hampshire, New Jersey, New York, Rhode Island, South Dakota, Vermont, Virginia, Washington, Washington DC, Wisconsin.
Ban on nationwide college player props: Arizona, Colorado, Florida, Indiana (ban on in-game, not pre-game), Maine, Massachusetts, Mississippi, New York, Ohio, Maryland, Pennsylvania, South Dakota, Tennessee, Virginia.
Full ban on college betting: Oregon (except at tribal sportsbooks).
➡️ madness lies: The NCAA’s success at lobbying for change in Ohio and Maryland is likely to lead to further consideration of bans as already seen across the country. The start of March Madness – the men’s and women’s college basketball tournaments – will likely only lead to more scrutiny around college betting.
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Minnesota floats in-play ban
That old foe: Minnesota’s attempt to legalize sports betting is in trouble. A fundamental disagreement between the North Star State’s racetracks and tribes on who calls the shots has been flanked by an amendment that threatens to drastically alter what the legislation permits.
Senator Matt Klein’s sports-betting bill, SF 1949, aims to legalize retail and online sports betting with exclusive rights for tribal nations.
It was approved by the Minnesota Senate Commerce and Consumer Protection Committee, but not without an added amendment to ban in-game sports betting throughout the state.
It would be the first ban of its kind in the country if the bill becomes law.
Safety first: The amendments were proposed by Sen. Jordan Rasmusson, who said it would allow regulators to take a “product safety approach” and add common sense tools to “mitigate some of the harms that can come from problem gaming.”
Also included is a requirement for sports-betting users to set a limit on how much they could deposit or lose from an account in a single day, while another amendment to prohibit betting on college sports was not approved.
Same old scene: The bill was moved along to the committee on taxes, however Andy Platto, executive director of the Minnesota Indian Gaming Association (MIGA), said the tribes were not in favor of the approved amendments.
MIGA hats: “Some of these policy changes are of serious concern to MIGA tribes, however tribal leaders do ask for the committee’s support of the bill as amended today so it can continue its progress in the Senate,” he said.
Not supporting the bill in its current form is Running Aces casino and racetrack, said CFO Tracie Wilson.
She noted funding to the tracks are capped in the bill, while funding for the tribes and sports-betting operators has no restrictions.
Not happy: Also angered at the changes was industry coalition Sports Betting Alliance, with president Jeremy Kudon stating the amendment to prohibit in-game betting would mean Minnesota sports bettors are more likely to head to unregulated, offshore sports-betting operators.
He also said the decision may cut expected revenue in the state in half; the bill was estimated to bring in $50m-$75m in its first year, but without in-game betting the revenues would likely decrease to just over $20m.
Alabama senators remove OSB, casinos
It was all going so well: As they promised, Alabama’s senators have thrown a wrench in the works of a major new gambling bill, slowing down progress and removing items once core to the proposition. Last month, the lower house passed a gaming bill within a week that would allow for seven new casinos, sports betting and a lottery.
Such a proposed constitutional amendment requires the votes of 21 senators before it can go before voters, and the bill as it stands doesn’t have the required support.
An amended bill approved by the Senate Tourism Committee does not allow sports betting.
It states one-third of lottery proceeds should be used for education purposes, while the previous proposal had all lottery proceeds going to education and game operations.
Big wheels keep on turnin’: Under the Senate proposal, no new casinos would appear in northeast Alabama, Birmingham or Mobile, contrary to the earlier bill. Horse and dog track betting at existing sites in Greene, Jefferson, Macon and Mobile counties would be allowed, but bingo or other games are out.
Senators indicated support for allowing full casinos at existing Poarch Band of Creek Indians sites in Atmore, Montgomery and Wetumpka, if the Poarch agree.
Governor Kay Ivey expressed support for the earlier version, while legal experts said how the bill will fare in the House, if it passes the Senate, remains uncertain. Multiple senators are happy with a lottery bill but were less supportive of the other gambling options.
“We’re losing millions of dollars every year that are going across the state line as far as lottery tickets,” said Sen. Randy Price, the committee chair.
“My district, it borders the state of Georgia, and I’ve heard from quite a few of my mayors that they’re losing a lot of revenue because when people go across that state line, not only do they buy groceries and do other things while they’re there, but what drove them across that state line? To buy that lottery ticket.”
Dutch protection standards
Pass that, Dutch: The Netherlands’ increasingly hard line on gambling is extending to enhanced player protection measures that have been sent to European Union lawmakers for approval.
Minister for Legal Protection, Franc Weerwind, shared several documents with the Dutch parliament for debate, as the country gears to make sweeping changes to its Remote Gambling Act (KOA) later this year.
Among the expected updates is surveillance of players who deposit more than €350 (~$380) per month, with operators expected to contact punters who exceed this number.
The limit will be €150 per month for those aged 18-24, with lawmakers particularly concerned about youth gambling habits.
Other changes include how operators show information to players and the option for high play limits.
The center won’t hold: Weerwind’s update noted “excessive participation and gambling addiction cannot be sufficiently counteracted and that additional measures are necessary.” A new gambling addiction center staffed by experts will also open in the coming months in response to “worrying and undesirable” player protection developments, he said.
The center will have a powerful mandate to shape future policy, he added.
Further changes include proposals to ban “engaging in any form of visual or auditory advertising, including bonus offers, beyond what is strictly required to provide player profile information or the option to update or complete the player profile.”
While major regulatory updates such as tougher advertising and gaming restrictions are not expected to enter force until after the review of the KOA, the Netherlands will embark on an education campaign targeting gamblers aged 18-23 and put its plans to the public.
Fade to black: Last year, despite heavy lobbying from industry and sports teams, Dutch lawmakers implemented a ban on gambling ads appearing on television, in radio and in print.
A further embargo stretched to billboards, bus shelters and cafes, and within gaming venues themselves such as casinos and slot parlors.
From July 1, 2024 sponsoring events and programmes will be banned, while sponsorship of venues and clubs will end from 2025.
Calendar
Mar 20: Kindred Sustainable Gambling Conference, London
Mar 27-28: Player Protection Forum, London
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