Latest Gambling News: Light & Wonder To List Shares Down Under, 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.

Light & Wonder To List Shares Down Under

Light & Wonder will delist from the Nasdaq exchange by the end of November, a decision that comes off the back of an extended consultation process, said CEO Matt Wilson.

Following the Nasdaq delisting, Light & Wonder shares will be traded solely on the ASX in Australia.

The company also confirmed their stock-buyback proposal has been increased to $1.5bn, with $950m remaining, and much going toward the Nasdaq withdrawal.

Light & Wonder will remain headquartered in Las Vegas continuing to report quarterly. Wilson said he believes the transition to a sole ASX listing “will deliver tremendous shareholder value going forward.”

In a research report, Barry Jonas, an analyst with Truist Securities, wrote that Light & Wonder management believes the transition will help consolidate liquidity into a market that has solid understanding of the gaming sector.

“Following the transition, Light & Wonder’s market cap on the ASX will go from AUD4.5bn to AUD12.2bn,” Jonas wrote.

Ecuador President Seeks Referendum On Casinos

President Daniel Noboa is again proposing a constitutional referendum to re-authorise casinos in Ecuador.

Noboa announced a series of seven proposed ballot measures on Tuesday (August 5), as part of a “popular consultation that asks the people about topics that have been of popular interest and in need of urgent changes for many years”.

The last of the referendum questions would allow Ecuadoreans to decide whether to “allow the operation of gaming rooms and casinos dedicated to games of chance in five-star hotels”.

Gross revenue from casino gaming would be taxed at 25 percent, with taxes dedicated to addressing malnutrition among children.

The proposed ballot measures will now be reviewed by Ecuador’s Constitutional Court before a referendum can be scheduled, potentially in December.

Ecuador banned casinos and slots halls via a national referendum held in 2011. Noboa first proposed a referendum to reconsider the issue last year, before swiftly withdrawing the initiative.

Former U.S. Vice President Pence’s Group Opposes Gambling Tax Fix

Advancing American Freedom (AAF), a conservative think tank founded by former Vice President Mike Pence, is lobbying lawmakers on Capitol Hill against making gambling losses 100 percent tax-deductible.

The change in the tax code beginning on January 1, 2026, will allow gamblers to only deduct 90 percent of their losses. Gamblers have been able to deduct 100 percent of their gambling losses since 1934, a standard that was reaffirmed during President Donald Trump’s first term in the 2017 Tax Cuts and Jobs Act.

The American Gaming Association (AGA), along with bipartisan members of the House and Senate support restoring the full deduction.

“Americans have the freedom to gamble on sports, but why should American taxpayers foot the tax bill for sports gambling?” the memo argues. “Congress should encourage a pro-growth tax code by declining to reinstate full expensing for gambling losses.”

“Gambling losses should not be deductible at all,” the memo states.

John Shelton, AFF’s policy director, wrote that as a result of the new tax law, “many Americans could stop gambling due to the tax consequences.” PunchBowl News was the first to report on the memo that is being circulated to congressional offices.

U.S. Attorneys General Seek DOJ Crackdown On Illegal Gambling

A bipartisan 50-state coalition of attorneys general is urging the U.S. Department of Justice to assist them in their efforts to tackle the rampant spread of illegal offshore gambling operations across the country.

“Our states have heard reports concerning growth in the illicit offshore gambling markets that could be harming our citizens,” according to the National Association of Attorneys General (NAAG).

In a letter to U.S. Attorney General Pam Bondi, NAAG warned that offshore websites undermine the rule of law and urged the DOJ’s cooperation in going after these sites for any potential criminal and civil violations.

Specifically, the coalition asserts that illegal gambling operations expose users to fraudulent schemes and encourage problem gambling without any oversight or accountability; undercut state-regulated markets; and have been linked to money laundering, human trafficking, and other illegal conduct.

The coalition estimates illegal online gambling costs states more than $4bn in lost tax revenue.

Particularly, the coalition urges the DOJ to pursue injunctive relief under the Unlawful Internet Gambling Enforcement Act (UIGEA) to block access to the illegal websites and payment processing, as well as seize assets, including servers, websites, domains, and proceeds, used by offshore operators.

The coalition also asked the DOJ to work with states, financial institutions, and payment processors to block transactions associated with these offshore sites.

Chile Online Gambling Bill Clears Senate Committee

A slow-moving bill to establish a licensing system for online sports betting and casino games has been approved unanimously by the Chilean Senate’s finance committee.

The bill, first introduced by the Chilean government in 2022, was approved by the lower house of Congress in December 2023 but then gathered dust before the Senate committee for nearly 15 months until the legislation was subject to a series of public hearings in July.

Approval by the finance committee means the measure will now be considered on the floor of the Senate, which would initially decide whether or not to approve the measure in general before then debating potential amendments to the legislation as passed by the Chamber of Deputies.

During its series of recent meetings, the finance committee received testimony from Chilean casino operators, the country’s two public lotteries and representatives of online gambling operators, including Betsson, Betway, Betano and BetWarrior.

International operators currently active in Chile’s unregulated market are advocating for a proposed cooling-off period to be removed from the bill so that they could immediately apply for licences once available.

Another contentious issue is tax, with the bill currently proposing a 20 percent headline tax rate, additional levies for sports and responsible gaming, plus value-added tax (VAT) as well.

In a statement following the committee’s vote, Ministry of Finance deputy secretary Heidi Berner said the government had concluded that it was not possible to create an exception from VAT for online gambling “given that we apply VAT to all digital services.”

Nevada Congresswoman Seeks Investigation Into CFTC Nominee

Representative Dina Titus, a Democrat from Nevada, has called for an investigation into Brian Quintenz, President Donald Trump’s nominee for chair of the Commodity Futures Trading Commission (CFTC).

In a letter to acting chairwoman Caroline Pahm, Titus requested an inquiry into whether Quintenz has violated CFTC policies, any applicable federal law, or his own ethical pledge prior to the  Senate Committee on Agriculture, Nutrition, and Forestry voting on his nomination.

The committee was scheduled to vote on Quintenz’s nomination last week, but removed his name from the meeting scheduled at the request of the White House.

Quintenz is a former CFTC commissioner and a board member and shareholder of Kalshi. Last week, it was reported that Quintenz and members of his team sent ethically questionable emails to the CFTC regarding the federal agency.

Quintenz noted the emails were sent as part of his preparation to take over the organization. But Titus, who chairs the Congressional Gaming Caucus, has called on the CFTC to release all relevant communications from or about Quintenz related to prediction markets and event contracts.

Titus wrote that Quintenz may be the only commissioner of the CFTC for some time.

“It seems impractical to believe that he will not make any decisions involving Kalshi for one year, considering the vast amount of regulatory and legal action concerning prediction markets,” Titus wrote. “Furthermore, regulatory inaction is of material benefit to Kalshi.”

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