Category Archives: In The Law

Gaming Industry News Weekly Recap – Stories You Might Have Missed

THE AMERICAS

Pennsylvania’s new online gambling legislation turned out to be poker-only; online state lotteries reportedly asked Lindsey Graham for a RAWA carveout; Atlantic City’s Resorts Casino joined New Jersey’s online gambling operators; Nevada and Delaware said they could be sharing online poker liquidity within a month; Nevada sportsbooks are already on a tear and regulators just approved Olympic wagering; Antigua’s Prime Minister warned the US of “remedies” to resolve their WTO dispute; Churchill Downs’ Big Fish acquisition is already paying off; Caesars tried to torpedo a creditors’ investigation into its asset transfers; New York’s attorney general opened an investigation into the casino bidding process; Monmouth Park inked a daily fantasy sports marketing deal; the NHL doubled down on its opposition to sports betting; Google loosened restrictions on social casino advertising; Bill Beatty explained why RAWA won’t pass; Kriby Garlitos explained why May 2 will be 2015’s biggest sports betting day and Rafi Farber found genius in Intertain’s acquisition financing strategy.

EUROPE

William Hill had a much better year than Ladbrokes; Playtech’s revenue from Asian-facing licensees rose 240% last year; Deutsche Telekom announced an online betting plan but German lottery operators want the government to intervene; Portugal approved new online gambling legislation; Zynga shut its UK-facing real-money sites; Italy relaxed its grip on its online sportsbook operators; the UK’s House of Lords equated fixed-odds betting terminals with masturbation; Spain and Italy considered new gambling advertising restrictions; Victoria Coren Mitchell stole the show at the British Poker Awards; the Aviation Club de France was placed into liquidation; Jersey Gambling Commission director Andy Jarrett discussed the life of a regulator in a post-POCT world; DAB Gaming’s Geoff Read believes social gaming boasts the best games and CoinGaming.io’s Mark McGuinness called Microgaming’s embrace of Bitcoin one giant leap for mankind.

ASIA

Macau casino operators got spooked after legislators proposed capping tourist numbers; SJM Holdings’ mass market gains couldn’t cover its VIP decline; a Shanghai high roller ran up a $160m casino debt; Genting Singapore’s remaining high-rollers got lucky; Sportingbet vanished as William Hill Australia began consolidating its brands; 500.com shares tanked after temporary shutdown of 10% of its online sports lottery products; South Africa’s Sun International eyed Asian expansion; virtual betting operators in India love the Cricket World Cup; Indian poker site Adda52 unveiled their first pro team; Macau Legend and Dynam Holdings announced their deal was going nowhere and Macau casino dealers called mainland Chinese unruly and Hong Kong gamblers whiny.

Antigua PM warns US that WTO stalling will force him to employ “remedies”

Antigua’s Prime Minister Gaston Browne appears to be losing patience with American officials over the negotiations to resolve the two countries’ World Trade Organization (WTO) dispute.

For over a decade, Antigua has been seeking redress from the US after Antigua’s licensed online gambling operators were denied access to US customers. In 2006, the WTO declared that the US had no right to block Antiguan operators on the grounds of protecting consumers while simultaneously permitting US horseracing operators to accept online wagers. The US was ordered to pay Antigua an annual $21m until a resolution was reached but the US has yet to ante up dollar one.

Since Browne was sworn into office last June, he has taken a markedly different approach than his predecessor toward resolving the WTO dispute. In September, Browne fired attorney Mark Mendel, who was hired by the previous administration to handle the case, and offered the US a “significant concession” in order to rejuvenate the stalled bilateral talks. That same month, Browne met with US Trade Representative Michael Froman and came away “encouraged” by their discussions.

On Friday, Browne was in the Bahamas, delivering an address at the 26th Inter-Sessional Meeting of the Caribbean Community (CARICOM), the group that represents 15 regional nations. In his address, Browne noted that the 11th anniversary of the original WTO ruling in Antigua’s favor was coming up in just two weeks. Browne emphasized that Antigua has yet to see a penny of the $168m in penalties the US now owes.

Browne told CARICOM delegates that Antigua had “been patient and we have been reasonable” but “the casualness with which the ruling of the legitimate international body has been treated, and the neglect of a legally-binding obligation have implications for every country represented in this room.”

Browne reminded his audience that “there are remedies legally available to my government that have been stipulated by the WTO. We hope that we are not forced to resort to these remedies, but we have a duty of care to our people that we cannot disregard.”

Such remedies include the legal right to offer royalty-free digital downloads of American corporations’ intellectual property. In his discussions with the USTR, Browne has so far adopted a stance that is far more carrot than stick. Clearly he’s beginning to realize that the USTR might need a good beating to force them to treat Antigua with the respect a sovereign nation deserves.

Unclaimed Lottery money could be used to fund French Quarter police patrols, TV station reports

Louisiana Lottery officials said they are willing to work with state lawmakers on a proposal that would use unclaimed prize money to help fund additional Louisiana State Police patrols in the French Quarter, according to WGNO News. In this July 5, 2014, file photo, New Orleans Police officers and Louisiana State Troopers in the 100 block Bourbon Street at about 3 a.m. (Photo by Chris Granger, NOLA.com Louisiana Lottery officials said they are willing to work with state lawmakers on a proposal that would use unclaimed prize money to help fund additional Louisiana State Police patrols in the French Quarter, WGNO News reported .

Legal Poker Home Games Coming to Maryland?

A two-pronged attack to get poker home games legalized in Maryland is currently underway thanks to two Democrats. Senator Nancy King and Delegate Kirill Reznik have each submitted bills that would give Maryland residents the freedom to run poker games from the confines of their home. Senate Bill 184 (King) and House Bill 59 (Reznik) […]

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Things to know as New Mexico weighs new tribal casino deal

New Mexico lawmakers are facing a hard deadline as agreements that allow a handful of American Indian tribes to operate casinos approach their expiration date. Gov. Susana Martinez’s office has spent the past three years working with tribes to craft a new gambling compact that supporters say would bring stability to New Mexico’s gaming industry, protect jobs and increase revenues to the state.

The Olympic Gamble Arrives…

The Olympic Gamble Arrives…
by Joe Favorito @JoeFav
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The past few weeks have been another whirlwind of activity around the fantasy sports and gaming space. There was the news that European soccer clubs like FC Barcelona were embracing pay fantasy sports more and more, a host of pieces on FanDuel and Draft Kings reporting record quarters for engagement amidst massive marketing, the Fantasy Sports Trade Association held its annual winter meetings, New Jersey politicians continued their amplified fight to bring sports wagering to the Garden State and other places still on the outs with Federal Law, and oh yeah, the State of Nevada finished the process to allow sports wagering on the Olympic Games.
While most of the news was part of the escalating dialogue in the value of fantasy sports as a revenue driver and engagement barometer for casual fans, the Olympic push was a relatively new salvo fired into the sports and gaming world. While it is somewhat ironic that Nevada, the state where lobbyists spend big bucks to keep Federal laws blocking other states to engage in sports wagering, is looking to increase the opportunities on global sport, would look to add international and potentially obscure sports to its wagering platform, the reality is that the petition shows just how much global fantasy and gaming is gaining steam, and consumers are getting more used to gaming as a regular part of their engagement experience.
The Olympic question is interesting for many reasons. The statue right now does not allow wagering on the Games because of “amateurism” and the use of judges who could influence votes, yet there are as many as seven countries in Europe where Olympic wagering is allowed, with no discernable issues. There is also the growing blurring of what is considered amateur in a world where the Olympics have become much more high tech, much more expensive, and much more subsidized by brands and events where athletes get paid…and rightfully so. The amount of security spent on The Games these days’ accounts for all kinds of monitoring in the digital space, so the thought of even more corruption being brought into The Games because of wagering seems to be becoming more and more of a non-issue.
The real intriguing aspect for Olympic gaming is on the fan engagement and revenue side. The IOC is constantly looking to engage a younger audience, one which is digitally savvy and is accustomed to finding new ways to be involved with whatever event they are watching or experiencing, whether that is in entertainment or sport. The gamification of The Games, one where you can, either for dollars or points, better follow athletes and the goings on in sports big and small from hundreds of countries, raises the value and the consciousness of The Games beyond what is done today. On the revenue side, the IOC, always looking for new streams of revenue, can reap huge licensing fees for data to companies who would engage in Olympic gaming and fantasy, an area which professional sports from the Premier League to the NBA and the NHL, are realizing today.
Like with all fantasy and sports wagering issues going on today, for Nevada this will be less about a brick and mortar engagement (although it wouldn’t hurt to have more consumers in a sports book during the dog days of August watching the Rio Games) as it is a play to grab more of the fast-growing global digital space.
The digital gaming space, as the NBA and NHL have now acknowledged with their team and league deals with Fan Duel and Draft Kings, is where the real dollars will be made going forward, and the ability to have that space as an offering to casual Olympic fans makes great sense. Rest assured the major leagues in North America will continue to watch the developments with Nevada and the Olympics, as gaming and gambling continue to be a lucrative, enticing and still controversial engagement point for all.

Portugal approves online gambling legislation as casino biz struggles

Portugal’s new online gambling legislation has been approved by the Council of Ministers, needing only the signature of President Aníbal António Cavaco Silva to become law of the land.

The legislation will end the online monopoly of Santa Casa de la Misericordia and allow international companies to apply for online gambling licenses, although it remains to be seen how many companies will be interested. The new regime involves tax rates that have been slammed by many observers are unworkable, particularly a variable tax rate on sports betting turnover of between 8% and 16%.

Online casino and poker are to be taxed at 15% of gross gaming revenue if an operator’s annual income is less than €5m. The rate rises 3% for every €1m in income over €5m, capping at 30% once annual income hits €10m.

The country hopes this new regime will generate €25m annually for the government’s tax coffers. But PricewaterhouseCoopers analysts have suggested the betting turnover tax could cause up to 80% of licensed operators to quit the market in the first year, and that could reduce the country’s online tax revenue by €20m over the first three years.

Turismo de Portugal, a branch of the Ministry of Finance, will oversee the new online gambling regime. The country hopes to issue the first online licenses before the year is through. Interested operators will have to pony up a security bond of €500k before their application will be accepted.

PORTUGAL’S CASINO TAX HELL

Illegal online gambling is being cited as one of the culprits behind a 33% decline in Portuguese land-based gaming revenue over the past six years. Local newspaper Público says casino revenue fell 2% in 2014 to €267m from a high of €381m in 2008, the year the global economy collapsed.

Act 218 scraps lottery panel

With no fanfare, Gov. Asa Hutchinson on Thursday afternoon privately signed into law legislation abolishing the nine-member Arkansas Lottery Commission and placing his administration in control of the Arkansas Scholarship Lottery. The Office of the Arkansas Lottery is now under the state Department of Finance and Administration’s Management Services Division.

Weekly Poll- Will Loretta Lynch reverse 2011 DOJ’s 1961 Wire Act’s opinion once confirmed as attorney general?

Take Our Poll

President Obama’s pick to serve as the next attorney general, Loretta Lynch, is having a hard time finding Republican supporters. She expressed her stance about Justice Department’s 2011opinion, saying that she will unlikely reverse it, which is why we decided to ask our readers, “Will Loretta Lynch reverse 2011 DOJ’s 1961 Wire Act’s opinion once confirmed as attorney general?”

55% said, “No” while 45% voted “Yes.”

During a confirmation hearing before the Senate Judiciary last month, Lynch was asked by Sen Lindsey Graham her familiarity with 2011 DOJ opinion that reinterpreted the Interstate Wire Act of 1961. Lynch initially said that she was familiar with the opinion but hadn’t studied it in detail, but in a follow-up written response, she said that, if confirmed, she would unlikely reverse DOJ’s current opinion of RAWA.

Despite having different opinion on topics such as online gambling and legality of the president’s executive action on immigration from Republicans, Lynch’s nomination got still got approved on Thursday, with a 12-8 votes, advancing her nomination to the full Senate.

Nevada regulators vote to legalize Olympic betting

Nevada sports books received some good news on Thursday as the Nevada Gaming Commission unanimously approved an amendment to state gaming regulations to allow betting on Olympic athletic events.

The change allows Nevada books to begin accepting wagers on the 2016 Summer Games in Rio De Janeiro and bookmakers wasted little time, offering lines on men’s basketball, track and field, and swimming.

It was previously believed that the return of Olympic betting to Nevada would be limited in some capacity, particularly as regards to International Olympic Committee-sanctioned events controlled by judges. But the commission opted to allow betting on any “sanctioned event,” although the chairman of the Gaming Control Board has the authority to remove an event or contest at his discretion. Current chairman A.G. Burnett told reporters that conversations on what sports to allow and what not to allow will happen before the Olympics start so don’t expect an immediate answer on this front until next year.

With the ban on Olympic betting now lifted, the Rio shindig will be the first Olympics that Nevada books can put place betting lines on since 2000 Games in Sydney. Olympic betting was outlawed in 2001 when Senator John McCain spearheaded a ban on betting on amateur sports. Somewhat confusing was the notion that McCain’s definition of “amateur sports” didn’t include college athletics, including football and basketball.

Books understand that betting on the Olympics won’t move the needle much as far as handle is concerned. But it does strip away the competitive disadvantage Nevada books experienced anytime the Olympics was held.

Calling the Clock: Acronym Time With News From the BPA’s, ACF, PPA and the CPAC

Put the kettle on, break open those hob nobs, and settle down for a week of poker news covering the British Poker Awards, closure of French poker clubs, fights to legalize online poker in the U.S, talk of cheats, and a young man from the Bronx who is smashing it.

We start our round up at the British Poker Awards (BPA). Victoria Coren-Mitchell was the biggest winner. She was nominated for three awards. She picked up all three.

“If anyone asks I am wearing TKMaxx.” She tweeted with glee.

Her victories in the categories of Best Social Media User, Personality of the Year and Performance of the Year, means she has now won a total of six awards in the past five years. That ties with Sam Trickett as the most successful BPA winner of all time.

Trickett wasn’t nominated for a single award in 2014 – the first time that has ever happened. So what did he do whilst everyone else was enjoying a free glass of Ranking Hero flavored champagne?

He crashed his £275,000 Ferrari.

Don’t sweat it though.

Pennsylvania’s new online gambling bill is poker-only, no bad actor clause

Pennsylvania’s newest online gambling bill is poker-only, confusing supporters who believed HB 649 sponsor Rep. John Payne’s use of the phrase “internet gaming” meant the bill would allow operators to offer online casino games.

The full text of HB 649 has since been published (read it here) and, while it also makes repeated mention of “internet gaming,” the bill’s definition of “authorized game” is limited to “any interactive poker game approved by the [Pennsylvania Gaming Control Board].”

In announcing his bill on Wednesday, Payne had cited a study that projected the state’s regulated online gambling market could generate revenue of $120m in its first year. Suffice it to say, Sheldon Adelson will win a PokerStars Spin & Go before a poker-only intrastate market earns that sum in one year. New Jersey’s regulated market produced only $29.1m in online poker revenue in its first year, and Pennsylvania’s population is nowhere near 4x the size of New Jersey’s.

Only the state’s existing gaming licensees are eligible to obtain online licenses, but the bill contains no specific ‘bad actor’ provisions regarding these licensees’ technology partners aka ‘significant vendors.’ Suitability will be judged on whether a significant vendor’s “prior activities, reputation, habits and associations .. create or enhance the dangers of unsuitable, unfair or illegal practices, methods and activities in the conduct of interactive gaming.”

As previously revealed, online gaming licenses will cost $5m for existing gaming licensees and $1m for significant vendors. Operators will ante up 14% of their gross gaming revenue, payable on a weekly basis. Players would have to be 21 years of age or older.

Other details include a willingness to enter into agreements with other intrastate markets for the purpose of sharing liquidity. Absent those agreements, attempts to wager with a Pennsylvania-licensed operator from outside the state will result in the forfeiture of any winnings.

The bill also bars internet cafés from making computer equipment available “principally for the purpose of accessing interactive games.” Individuals who get caught offering unauthorized online services will face fines of $75k to $150k for a first offense, rising to $300k for a second offense. Licensed manufacturers and suppliers face fines of up to $300k for a first offense, rising to $600k. Licensed gaming entities face fines from $600k to $1.2m.

French Online Poker Eyeing Player Liquidity to Save Its Derriere

The French online poker universe has been folding faster than deuce-nine offsuit out of position. But now a new legal measure may pull that hand right out of the muck for a surprise win. Since France isolated its poker networks in 2010, operators have struggled to maintain active tables due to deteriorating player pools. Following […]

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Indians take to virtual gambling to bet on Cricket World Cup

Unbeknownst to most fans who don’t live in any of the countries that are participating in a certain international sports tournament that’s currently on-going as we speak, the 2015 Cricket World Cup is playing. It’s a pretty big deal for participating nations, but for the rest of the world, not so much. The issue surrounding the lack of worldwide popularity of the Cricket World Cup and the sport of cricket for that matter is a topic for a different day.

What’s important is that those who love cricket are fully invested in the tournament, more so for those whose national team is currently competing in it. One such country is India, and it would be the understatement of understatements if I said that our friends in India love cricket. Actually, obsession might be a better word to describe it, akin to how Filipinos are obsessed with basketball.

Go anywhere in India these days and you’re likely to hear more conversations about the Cricket World Cup than any other available topic that’s relevant in the country these days. Such is the love Indians have for the sport and that love has even extended to the realm of gambling where mock betting sites – sports betting is illegal in India – have been bombarded with Indian sports fans playing for a chance to win non-cash prizes.

According to the Economic Times India, local sites like Betmockers, India Bet, and Lagai Khai, are all experiencing unprecedented levels of site visits, most of whom coming from cricket supporters rooting for their beloved national team.

These sites, according to IndiaBet.com managing director George Oborne told the newspaper that these sites (and apps)  “provide a safe alternative to unregulated forms of gambling on offer in India.”

The surge in visits is largely attributed to general interest from residents of India, but Betmockers CEO Tabrez Sheikh pointed out that even Indians living abroad are getting in on the action too. “Where during IPL (Indian Premier League) we clocked 13,000 visitors a month, with World Cup, even before it began, we started clocking around 22,000 visitors a month.”

Those numbers are expected to increase even more as India continues its run in the tournament. The national team currently sits atop Group B with a 2-0 record and if their recent form is any indication, India could have an extended run in the tournament that might even end up with a run to the title. It would at least make for a great story considering that India entered the tournament as fourth favorites with its odds at 6/1 to win the tourney.

Maryland pushes for legal poker home games; Indiana updating antiquated laws

Legislators from Maryland are preparing two bills that would decriminalize acts of hosting and playing in poker home games. Senate Bill 184 and House Bill 59 are authored by Sen. Nancy King and Delegate Kirill Reznik, respectively.

Should both bills get the requisite number of votes, any person who runs a home game based on chance or skill that involves betting real money will no longer be inconvenienced by a maximum fine of $1,000 or potential jail time. The existing law isn’t enforced all that strictly, but the new law would draw a distinct line between what’s legal and what isn’t.

“What makes a casino a casino is that a cut of the winnings is saved for the house,” Reznik said at the House Ways and Means Committee Thursday, as quoted by the Capital News Service. “The laws are so restrictive now that a person’s home is deemed a casino.”

The two bills come with their own set of restrictions, most notably the illegalities of enforcing a rake system in any of these home games or using online electronic devices for placing real money bets.

Reznik has discussed details of the two bills with state and local police, who failed to voice any strong objections, and over 20 state lawmakers have signed off on the proposals. Should the bill get all the votes it needs, the changes could be enforced as early as October 2015.

INDIANA MULLS LOOSENING GAMING LAW RESTRICTIONS

Over in Indiana, the state’s House of Representatives has voted in favor of changes to existing casino laws, much to the dismay of Gov. Mike Pence.

Atlantic City casino to launch online gambling; Betfair pays out biggest New Jersey jackpot

Atlantic City’s Resorts Casino Hotel has received permission from the state Division of Gaming Enforcement to conduct full internet gambling on Wednesday, following a successful five-day test period wherein state inspectors verified that the casino’s equipment and systems are working properly.

Casino President Mark Giannantonio said that the casino’s website, www.ResortsCasino.com, will begin several weeks of beta testing to learn what its customers want and is expected to have its full launch few weeks

“During our beta period, we will invite players to sign up and provide feedback on the user experience, while we add additional features before our official launch,” Giannantonio said. “Real-time feedback will be an important aspect of our beta period as we further enhance the gaming content and features to produce the best casino experience in New Jersey,”

Atlantic City’s Resorts Casino Hotel has been partnered with PokerStars since July 2013 but due to the online poker website’s legal troubles, the resort has been approved and will offer online gambling through one of its partner Sportech NYX Gaming. It still plans to add PokerStars to its lineup once Amaya Gaming is approved to operate in New Jersey.

The resort is the sixth of the eight Atlantic City’s casinos to offer Internet gambling, along with the Borgata, Golden Nugget, Tropicana, Caesars and Bally’s.

Trump Plaza closed Sept. 16, and Trump Taj Mahal, which continues to operate, lost their Internet gambling operations last year.

Meanwhile, Internet betting operator Betfair announced that a player from Union County won just over $1.5 million on “Let It Ride,” a variant of traditional poker available on BetfairCasino.com.

Indian Online Poker Site Adda52 Create Pro Team Roster

Indian online poker has their first professional poker team after Adda52 unveiled Team Spades. A group of four players hired to spread the game as a professional sport both in India and internationally.

The ambiguity over whether online poker is legal in India doesn’t seem to be bothering Adda52. The site that claims to be the first to ever offer online cash games in the South Asian country, has set another record by creating the first-ever Indian professional poker team.

Amit Jain, Kunal Patni, Aditya Sushant and Muskan Sethi will now be collectively known as Team Spades. They will represent Adda52 both online and live. Part of their job description will be to promote the game as a professional sport, both in India and the rest of the world.

That job was made a little easier, a few days ago, after the Indian Supreme Court sided with printing firm Parksons Graphics, who were arguing that a 1% tax rate should be lopped off their bottom line because poker is a physical sport.

Whilst Chief Justice HL Dattu may believe holding cards in your hands creates physical exertion, the jury is still out over the debate that poker and gin rummy are games of skill. It seems Fifty Shades of Grey is not only a term used to define a really crap movie.

Team Spades have so far won $160k between them in live tournament earnings. Only Patni has a decent score to talk of after winning a side event at the Asian Pacific Poker Tour (APPT) in Oct last year.

“Poker is truly a game of skill. It requires its players to have a highly calculative and methodical mind,” said Anuj Gupta from Adda52.