Latest Gambling News: Curaçao Reaches First $200,563 Settlement With 12 Operators Over KYC Failings, 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.

Curaçao Reaches First $200,563 Settlement With 12 Operators Over KYC Failings

Curaçao’s Public Prosecution Service (PPS) has reached an out-of-court settlement with 12 businesses operating online casinos to pay a combined XCG$360,000 ($200,563) for allegedly failing to verify customers' identities, which is a criminal offence.

All of the operators accepted the settlement offer but do not admit to any facts or accept any guilt under criminal law, according to the PPS press release on July 8.

“The outcome of the criminal investigation confirms the suspicion that online players were able to create an account and subsequently deposit funds without their identities being verified. Despite the fact that online casinos were legally obliged to verify the identity of players before entering into a business relationship,” the PPO said.

There were several reasons for the matter being settled out of court, according to the PPO, including the fact that it would be “unlikely” for the legal entities, if proven guilty, to face any additional repercussions beyond a fine.

One operator did not pay its fine, meaning the settlement agreement between the PPO and the legal entity has been cancelled. The operator will be summoned to appear in court.

An investigation into 17 websites was launched by the Special Police Taskforce (SPT) and carried out by a PPS team after multiple criminal complaints were filed by the Foundation for the Representation of Victims of Online Gaming (FRVOG), a non-profit organisation that supports and represents the interests of players and victims of offshore online gambling.

New Jersey Prohibits Sports-Betting Partnerships At State Colleges

New Jersey public colleges and universities have been banned from entering into sports-betting partnerships with gaming companies.

Governor Phil Murphy, a Democrat, signed A4113 into law on Tuesday, which prohibits these agreements and brings New Jersey in line with Louisiana, Colorado, Maryland, and Michigan where colleges have canceled agreements or partnerships with sports-betting companies.

The bill, which is identical to S2115 in the Senate, is effective immediately. The law also includes a public college’s athletic department and booster clubs that would allow for advertisements or promotions of gambling.

“The proliferation of sports betting by college students is a troubling trend that can have a destructive impact on their lives," said Senator Joe Cryan, a Democrat and one of two primary sponsors of S2155. “Our college campuses should be places for learning, not underage gambling.”

Cryan attributed the increase in gambling among college students to a “surge” in gambling advertisements and partnerships.

‍Star Entertainment Back On The Brink

Pressure is piling on Australia’s The Star Entertainment Group anew as a likely massive regulatory fine spooks takeover suitor Bally’s, Star’s Chinese partners threaten to walk away from a casino acquisition deal in Brisbane, and strike action in Brisbane delays a major poker tournament.

Seemingly saved from liquidation in April when Bally’s offered up to A$300m ($196m) to buy out the casino operator, Star Entertainment is back on the defensive as Bally’s warns the deal may collapse if financial transactions regulator AUSTRAC slugs Star with a heavy fine over chronic compliance failures.

The Bally’s offer had gained unanimous support from the Star board, but the deal has thrown into doubt the status of an earlier deal to sell the company’s Brisbane integrated resort to Star’s two Chinese partners in exchange for full Star control of properties at The Star Gold Coast.

The consortium partners now have until the end of July to agree to terms, potentially stripping Bally’s of the Brisbane resort before any takeover.

Amid the negotiations and confusion over how the deals will be coordinated, staff at The Star Brisbane have commenced strike action on and off the casino floor over falling wages, forcing the postponement of the 18-event Brisbane Champs poker tournament scheduled to start on Friday (July 11).

Star Entertainment said in a Facebook statement on Wednesday that the strike action could have affected the tournament, but that new dates for the event will be “confirmed and announced in the coming weeks”.

California Senators Back Sweepstakes Ban

Despite a campaign to block a proposed sweepstakes ban in California, senators continue to be supportive of a bill that closes a loophole in state law prohibiting the use of online sweeps casinos that utilize dual currency models.

Assembly Bill 831, introduced by Democratic Assemblyman Avelino Valencia, will be heard on Tuesday (July 15) in the Senate Public Safety Committee. The measure was passed unanimously by the Senate Governmental Organization Committee after a hearing on Tuesday.

The bill targets operators, payment processors, suppliers, and celebrity endorsers and includes potential fines up to $25,000 and a one-year maximum prison sentence. Valencia said language in the bill will be clarified to clear up any confusion that the legislation targets sweepstakes casino customers.

Valencia’s bill has support from the California Nations Indian Gaming Association and a number of tribes and tribal organizations. Opponents include the Social and Promotional Games Association (SPGA) and the Social Gaming Leadership Alliance (SGLA).

In a letter to Valencia, the SPGA described AB 831 as “too vague, too rushed, and too risky.”

The legislative debate over banning online sweepstakes casinos comes a few days after California Attorney General Rob Bonta released his long-awaited opinion declaring that state law prohibits all daily fantasy sports contests.

Brazil Senate Vote On Gaming Expansion Postponed Again

For a second time in seven months, Brazil’s Senate President scheduled and then postponed a planned vote on sweeping legislation to authorise land-based casinos and bingo halls across the country.

After several weeks of speculation, Senate leader Davi Alcolumbre on Friday placed bill PL 2234/2022 on the agenda for the Senate’s July 8 session.

However, after several senators spoke in opposition to the gaming bill during Tuesday’s proceedings, Alcolumbre announced he was withdrawing the measure from consideration because a number of Senate members were absent and they had asked for their votes to be recorded.

The Senate President also acknowledged that there was “certainly a divide in the Senate on this issue”.

In its current form, the bill would authorise one to three casinos in each of Brazil’s 27 states plus potentially thousands of bingo halls each offering up to 400 video-bingo machines.

PL 2234/2022 was passed by the lower house of Brazil’s Congress in February 2022 and then provisionally approved last June by an influential Senate committee that was chaired at the time by Alcolumbre.

The Senate President’s predecessor similarly placed the bill on the Senate’s voting agenda last December, only for supporters of gaming expansion to urge a postponement due to opposition from anti-gambling senators.

Super Group Exits U.S. iGaming Market

Super Group will exit the U.S. online gaming market as part of an ongoing strategic review to streamline operations, the company announced Tuesday (July 8).

The company, which is the parent of sports-betting brand Betway and iGaming brand Spin, has set aside between $30m to $40m to cover the one-time restructuring costs associated with its U.S. iGaming exit.

“This is a difficult decision, particularly because our U.S. team has worked hard and made progress over recent quarters,” Neal Menashe, CEO of Super Group, said in a statement.

“Nonetheless, recent regulatory developments combined with ongoing assessment of capital allocation requirements have led us to believe that our stringent hurdle for return on capital will likely not be met in this market any time soon.”

Menashe did not name any particular regulatory developments, but New Jersey recently increased its online gaming tax rate from 15 percent to 19.75 percent, and gaming taxes and the fate of skill games are an issue in ongoing budget negotiations in Pennsylvania, the second state where the company operates.  

He said Super Group intends to focus its resources on markets where they see the “greatest opportunity” for sustainable and profitable growth.

Super Group’s decision to pull out of the iGaming market comes a year after the company said it would cease its Betway sports betting operations in nine states to focus on its iGaming operations in both states.

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