Latest Gambling News: Ecuador Casino Question Blocked From Referendum, 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.

Ecuador Casino Question Blocked From Referendum

Ecuador’s Constitutional Court has rejected a proposal on reopening land-based casinos to be included in a December referendum, saying the question did not meet constitutional parameters for two reasons.

The first was the preamble to the referendum was not clear enough and would generate confusion among voters “on issues about which they lacked sufficient information.”

The second reason was the question included three distinct topics, which were the reopening of gaming rooms and casinos in five-star hotels, the creation of the 25 percent tax, and the specific allocation of the proceeds.

“By requiring block voting, voter freedom was limited,” the court said.

President Daniel Noboa’s proposed constitutional referendum would tax gaming revenue at 25 percent and dedicate the tax revenue to addressing chronic malnutrition among children. On August 5, Noboa announced seven measures to be included in the upcoming referendum.

“With these decisions, this body ensures that proposals for amendments to the constitutional text and those for referendums respect constitutional limits and are formulated with clarity and loyalty to the voters,” the court wrote.

As of Friday (September 12), it was unclear if Noboa would amend the measure to ensure it can be approved by the Ecuador Constitutional Court.

Ecuador banned casinos and slots halls via a referendum held in 2011. Noboa first reconsidered the issue in 2024, before withdrawing the initiative.

Treated Korean Teen Addicts Double In One Year

The number of South Korean teenagers being treated by a government support service for gambling addiction almost doubled over one year to 4,144, according to a lawmaker’s report.

Ruling Democratic Party lawmaker Cho Gye-won’s report, citing support data from the Korea Problem Gambling Agency (KPGA), noted this number for 2024 was also almost triple the number of cases in 2022, possibly pointing to aggressive growth in aberrant gambling among children.

“Teenage gambling addiction is no longer the issue of delinquent individuals, but a social disaster that can lead to crimes, unease within the community and even homes falling apart,” Cho said.

The Korea Herald reported on Thursday (September 18) that Cho’s report follows a KPGA survey from 2024 that found 4.3 percent of children from elementary to senior high schools had gambled, with one-fifth of those gambling “consistently for the past six months”.

South Korean law strictly prohibits almost all forms of online gambling, and officials routinely prosecute Korean nationals for gambling offences, including in foreign casinos.

Momentum for reforms that might regulate rather than punish online gambling in South Korea remains very weak given public and lawmaker suspicion toward the sector.

Notwithstanding recent modest expansion of gambling operations at Kangwon Land, the nation’s sole casino where locals may gamble, the industry continues to struggle to legalise even land-based operations for the local market.

New Jersey To Adopt Formal Responsible Gambling Regulations

New Jersey’s Division of Gaming Enforcement (DGE) has proposed new responsible gambling regulations in order to codify and expand its existing requirements that have been in place as non-binding best practices since the start of 2023.

The draft regulations published in the New Jersey Register on Monday (September 15) largely replicate those existing best practices by requiring online casino and sports betting operators to monitor player activity and automatically intervene if certain triggers are met.

The formal rules would go a step further, however, by obliging the player’s account to be suspended if due diligence leads to a third level of intervention and the operator’s responsible gaming lead is unable to personally contact them by phone or video call to discuss problem gambling behavior and available responsible gaming tools.

The proposed rules also would prohibit players from reversing account withdrawals within a three-day period after initiating the transaction. Any player who cancels a withdrawal three times in a 10-day period would require a responsible gambling intervention.

Written comments on the proposed regulations may be submitted to the DGE’s head of responsible gaming by November 14.

AUSTRAC Ditches Lesser Entain Charges

Australia’s financial transactions regulator has withdrawn lesser complaints against Entain Group from its prosecution of the gambling giant over alleged non-compliance with anti-money laundering and counter-terrorism financing (AML/CTF) laws.

In amended concise and full statements of the claim filed with the Federal Court in Sydney on August 19, AUSTRAC withdrew its complaint that Entain Australia breached its responsibilities as a remittance provider, apparently in response to Entain’s insistence that it does not bear this legal status.  

AUSTRAC’s amended full statement of claim strikes out two pages (pp13-15) of allegations that the company “gave effect to a remittance arrangement”.

The regulator’s concession prompted local media to ask whether investigators had read the advice to industry on AUSTRAC’s own website after three years of probing and a year in court.

Entain Group still faces allegations that it committed “serious and symptomatic non-compliance” with AML/CTF laws and protocols “on an innumerable number of occasions”, and remains vulnerable to civil fines of A$33m ($22m) per offence.

The amended application has pushed back the schedule of the case, which is currently in a mediation phase. Justice Cameron Moore has ordered Entain to file a defence to the amended claims by October 3. The next case management hearing will take place on October 17.

California Legislature Passes Sweepstakes Ban

The California Assembly on Friday (September 12) voted in concurrence of Senate amendments added to Assembly Bill 831, which bans online dual currency sweepstakes casinos and sports betting in the state.

There was no debate on the Assembly floor before the bill was passed by a 63-0 vote. The state Senate approved the bill by a vote of 36-0 on Tuesday.

Democratic Assemblyman Avelino Valencia’s bill now heads to Governor Gavin Newsom’s desk, where he has 30 days to sign or veto the bill. If Newsom, a Democrat, takes no action, the bill becomes law at the end of the 30-day period.

Newsom was expected to sign the bill, which has been supported by California gaming tribes and opposed by several sweepstakes trade organizations, including the Social Gaming Leadership Alliance.

In June, Valencia amended AB 831 by striking its prior language and turning the measure into a bill to ban-dual currency online sweepstakes sites that offer games that mimic sports betting and casino games.

Under the legislation, it would become illegal for any individual or entity to operate, facilitate, advertise, or support sweepstakes casino activities. That could include everything from payment processors to platform providers to geolocation services, and even celebrities that promote the platforms.

In addition, AB 831 would make it a misdemeanor to operate online sweepstakes sites that mimic casino-style gambling and offer players a chance to win cash or cash-equivalent prizes.

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