Monthly Archives: February 2015

China vows tougher stance toward other Asian nations recruiting its gamblers

Asian casino operators got a rude awakening Friday after a top Chinese official said the government would crack down on attempts to lure its citizens to international gambling destinations.

Hua Jingfeng, deputy bureau chief at the Ministry of Public Security, told state media that the government had “investigated a series of cases” involving casino operators who had “set up offices in China to attract and drum up interest from Chinese citizens to go abroad and gamble. This will also be an area that we will crack down on.”

Credit Suisse issued a note clarifying that the ‘crackdown’ wasn’t really anything new, as it’s already illegal to directly market gambling services in China. Nonetheless, it doesn’t bode well for hopes that China would loosen its new exit visa restrictions anytime soon.

Credit Suisse also suggested that casinos in Macau would suffer as a result of their increasing reliance on ‘premium mass’ players – gamblers who spend far more than the average but do so with their own money rather than rely on credit advanced by junkets. For years, casinos have been sending agents to China to network with premium mass gamblers but increased scrutiny of these agents’ activities could negatively impact gambling revenue in Macau and elsewhere.

Las Vegas Sands chairman Sheldon Adelson gave a talk at the Institute for Tourism Studies in Macau this week, telling the audience that high-rollers “will stay low and will not be conspicuous in their spending habits until the witch-hunt – or whatever it is called, the crackdown on corruption – levels, goes down.” Adelson said the premium mass segment was also laying low “because they don’t want the government to see them spending what they consider large amounts of money.”

Macau’s VIP market tumbled to 60.5% of gaming revenue in 2014 from 73% in 2013 but Macau’s loss has been a gain for other integrated resort destinations like Singapore, Manila and Australia. Beijing’s crackdown on mainland junket operators has led junkets to shift their attention beyond Macau in the hopes that Chinese VIPs will feel more comfortable betting big away from Beijing’s all-seeing eye.

Macau taxes gaming revenue at 39%, a rate far higher than other Asian gaming jurisdictions, giving junkets even more incentive to diversify their geographical profile. Australian casino operator Echo Entertainment recently reported its VIP gambling turnover nearly doubled over the last half of 2014.

Bradenton Man Wins $1.6 Million Lottery Jackpot

Jack Bennett claimed the $1.6 million jackpot prize from the Jan. 6 Lucky Money drawing, the Florida Lottery announced Wednesday. Bennett purchased his winning quick pick ticket from Publix, 11205 E. State Road 70. The lucky winner opted for a single, lump-sum payment of $1,233,651.72, lottery officials announced in a media release.

EPT Deauville Ladies Event Crashed by 22 Men

The Ladies Event at the European Poker Tour’s Deauville stop was meant to be a tournament where women, who typically make up only a small minority of poker fields, could compete amongst themselves for a change. Sure, French law doesn’t allow organizers to ban men from participating in such events, and the very low €220 […]

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Bwin.party Revenues Slammed by Value Added Tax

Bwin.party expects to be affected by the European Union’s Value Added Tax (VAT) to the tune of €15 million ($17.2 million) following new regulations that were implemented January 1, 2015. Previously exempt from VAT, changes to the law now levies a charge on electronic gambling regardless of location, an amendment expected to cost online casino […]

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Mr Green fights Austrian tax bill, acquires Mybet Italia

Malta-licensed online gambling operator Mr Green says it has made a provision for SEK 108m (US $12.9m) in its Q4 2014 accounts in the event it’s forced to pay its disputed Austrian tax obligations.

The sum covers a self-assessed period beginning in January 2011 and ending August 2014. The start date coincides with the Austrian government’s imposition of a 40% tax on online gambling revenue generated by Austrian punters, regardless of whether or not an operator holds an Austrian gaming license.

Mr Green says it’s engaged in ongoing discussions with Austrian tax officials regarding a partial payment plan but the company’s legal advisors believe the entire liability won’t survive a court challenge. Mr Green intends to challenge the Austrian government’s cash grab in both Austrian courts and the European Court of Justice as well as with the European Commission. In the meantime, Mr Green says it’s still operating in Austria but is “reducing its market investments.”

In other Mr Green news, the company recently acquired the former Italian-facing operations of German online gambling operator Mybet. Mr Green says the Mybet Italia deal was financed with existing cash assets of unknown quantity. Mybet spun off its money-losing Italian operation in September, after similarly dumping its money-losing Spanish-facing Digidis operation.

Mr Green says it plans to use Mybet Italia’s license to enable the launch of the Mr Green brand in the Italian market and Mybet Italia’s current CEO will stay on to help with the transition. Outgoing Mr Green CEO Mikael Pawlo said the company hoped the launch would happen in Q2, assuming local regulator AAMS offers no objections. Mr Green intends to focus on online casino initially but hasn’t ruled out the possibility of adding a sportsbook. Either way, the company doesn’t believe the Italian operation will make a positive contribution to earnings this year.

Arizona legislator wants lottery money to fund child sex investigations

Thousands of Arizonans are trading in child pornography online and almost none of them are being investigated, said a state lawmaker who wants to spend leftover lottery money to help find and prosecute them. “Children are being raped, tortured, abused — beastiality, the worst possible things that you can imagine, are occurring right here in Arizona, and we only have four full-time investigators in the entire state to proactively go after these guys,” Rep. Paul Boyer, R-Phoenix, said.