Latest Gambling News: New York Confirms Casino License Fee, Minimum Investment, and more

Catch up on some of the stories our gambling compliance analysts have covered lately, and stay up-to-date on the latest news.

New York Confirms Casino License Fee, Minimum Investment

In a meeting that lasted just six minutes, the New York State Gaming Facility Location Board unanimously confirmed two key details for those gaming companies planning to bid for three downstate casino licenses.

The board voted unanimously on Monday (June 16) to approve a $500m license fee as well as a $500m minimum capital investment. Bids are due by June 27, with the board expected to make decisions by December 1.

The New York State Gaming Commission will license the companies by December 31. Any applicant will also need to complete all entitlement processes, including zoning and environmental reviews, by September 30.

Many industry analysts believe there may effectively be only one license up for grabs in the largest untapped gaming market in the northeast United States.

MGM Resorts International, which operates Empire City Casino video lottery terminal facility in Yonkers, and Genting’s Resorts World’s New York City video lottery parlor in Queens are favorites to be two of the license winners.

Among the handful of other projects vying for a license, analysts believe Hard Rock International and its partner, hedge-fund investor Steve Cohen, could be the final licensee with its proposed $8bn casino project on some 50 acres around Citi Field in Queens, the home of Major League Baseball’s New York Mets.

Southern States Crack Down On Sweepstakes Casinos

Louisiana gaming regulators issued more than 40 cease-and-desist orders on Tuesday (June 17) to offshore casinos and sweepstakes operators, less than a week after Republican Governor Jeff Landry vetoed a bill affirmatively banning sweepstakes games.

“Louisiana will not tolerate illegal operators who put our citizens at risk and undermine the fairness and integrity of our gaming industry,” said Louisiana Gaming Control Board (LGCB) chairman Christopher Hebert in a statement.

Herbert’s statement did not identify the offshore casinos or online sweepstakes operators targeted by the control board.

Landry vetoed Senate Bill 181 on June 12, writing in his veto message that the ban was unnecessary because the LGCB already has regulatory authority over all aspects of gaming.

Separately, the Mississippi Gaming Commission (MGC) also announced Tuesday that it had issued cease-and-desist letters to multiple illegal online gaming operators.

A list of 10 illegal operators published by the MGC includes offshore sportsbooks BetUS, Bovada and MyBookie, as well as leading sweepstakes casino Chumba Casino.

“Our laws are clear that casino-style gaming and sports wagering are not allowed online in Mississippi, outside of a licensed casino,” stated Jay McDaniel, the MGC’s executive director.

Brazil Senate Probe Ends With A Whimper

A special Senate commission (CPI) formed to probe Brazil’s online betting market has concluded its investigation in inconclusive fashion after senators declined to adopt a lengthy report that was highly critical of the industry.

The 541-page report authored by Senator Soraya Thronicke called for the criminal indictment of 16 individuals alleged to be involved in illegal gambling or fraud. She also proposed new legislation to ban all online casino games and restrict the availability of licensed online betting sites to between 7pm and 3am daily.

Members of the Senate CPI voted 4-3 against adopting the report during a meeting on Thursday (June 12).

The high-profile panel held more than a dozen public hearings, but many senators became increasingly frustrated by more recent meetings that featured prominent digital influencers who appeared to revel in the publicity.

The ignominious end to the probe follows an earlier Senate CPI that was focused on betting corruption and match-fixing.

In March, the Senate commission adopted a report that recommended a prohibition on any bets on isolated events, such as yellow or red cards.

Live Casino Bill Passes Rhode Island Senate

Rhode Island’s Senate has passed a bill to allow live gaming studios in the state’s land-based casinos to livestream games to Bally’s online casinos in other jurisdictions.

Under Senate Bill 1707, the Rhode Island lottery division would be required to authorize those "external jurisdictions" eligible to receive livestreams after evaluating whether online gaming is legal in the jurisdiction. Games could not be streamed to any online casinos in a jurisdiction that competes with Rhode Island for gaming revenue.

Bally’s launched its Rhode Island online casino in March 2024 under a 2023 state law that expressly requires live gaming studios to be located within its two casinos in Lincoln and Tiverton.

SB 1707 was passed by a vote of 31-5 and now must be approved by the Rhode Island House of Representatives before the legislature adjourns on June 30.

It is not the only gambling bill on the table in Providence.

Earlier this month, the Senate passed a separate bill to require the Rhode Island Lottery not to renew its exclusive contract for online sports betting and instead authorize three to five independent operators to conduct sports wagering on its behalf. Senate Bill 748 also must be approved by the House.

Federal Betting Excise Tax To Fund Immigration Enforcement

A bill designed to redirect federal excise tax revenue from sports betting to fund immigration enforcement was introduced in Congress on Friday (June 13).

The bill, known as “Giving Alien Migrants Back Through Lawful Excise Redistribution (GAMBLER) Act,”  was introduced by Ohio Republican Representative Michael Rulli, who said the legislation delivers a real solution to the country’s border crisis. The bill has been referred to the House Ways and Means Committee, in addition to the Judiciary Committee.

The bill would amend the Internal Revenue Code of 1986 to establish a border enforcement trust fund within the U.S. Treasury. Rulli estimated the fund would receive an estimated $300m annually from the 0.25 percent excise tax levied on each sports bet made in the 38 states and the District of Columbia where sports betting is legal.

Rulli said the federal dollars would be allocated directly to U.S. Immigration and Customs Enforcement (ICE) for enforcement, detention and deportation operations.

“ICE needs every resource available to secure our borders and enforce our laws,” Rulli said in a statement. “The GAMBLER Act ensures we fund immigration enforcement without asking for one more penny from American families.”

The excise tax was established in 1951 as a tool to prosecute illegal bookmaking operations that failed to pay the tax. Representative Dina Titus, a Democrat from Nevada, has advocated for repealing the federal excise tax on sports betting.

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