News In Brief: August 19-August 23, 2024

August 22, 2024
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New Zealand opens consultation on account-based play rules and Bovada adds Ohio to growing list of restricted states.
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New Zealand Invites Feedback On Account-Based Play Standards
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New Zealand’s government has announced a one-month consultation period for a draft standard for account-based play, covering data and fund security, functionality, software and hardware and other elements.

The draft Casino Minimum Standards for Account-Based Play cover functionality criteria including account creation and deactivation, user identification, fund processing and game activity, regulatory monitoring and data auditing.

The draft was triggered in part by account-based, carded play requirements mandated by new Host Responsibility Programmes in force at SkyCity Entertainment Group casinos from January this year, and which have a July 2025 deadline for final implementation.

“The proposed standard prescribes that in approving account-based play systems, the Secretary [of Internal Affairs] must be satisfied that … the system meets the standard, … that the integrity of the system is supported by appropriate Terms and Conditions for use account holders, and that … there are appropriate internal controls and procedures to enable the operation and security of the system,” according to the consultation document.

“Prior to approval, the standard provides that Account-Based Play systems should be submitted to an accredited testing facility for testing against the standard,” it adds.

The consultation period closes on September 20.

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Bovada Adds Ohio To Restricted List
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Bovada has added Ohio to its list of restricted states after receiving a cease-and-desist letter from state gaming regulators earlier this month. 

“The commission will continue to ensure that entities seeking to offer casino gaming, skill games, fantasy contests or sports gaming in Ohio do so in accordance with all applicable laws and regulations,” Jessica Franks, a spokeswoman with the Ohio Casino Control Commission, said in an email on Wednesday (August 21).

“We will use the civil and criminal tools at our disposal whenever it discovers gaming products being offered illegally in the state,” Franks said.

Curaçao-based Harp Media B.V. operates Bovada.com and Bovada.lv. Ohio is the 11th U.S. jurisdiction added to Bovada’s restricted list and follows the additions of Washington, D.C. and Connecticut to its list in July. 

As of Wednesday, Bovada restricts users from the following states: Nevada, New Jersey, New York, Maryland, Delaware, Michigan, Colorado, West Virginia, Connecticut, Ohio and the District of Columbia. 

Gaming regulators in both Massachusetts and Louisiana are also considering potential investigations into Bovada or issuing cease-and-desist letters.

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Ohio Casinos Set To Accept Digital IDs
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Casinos in Ohio will begin accepting digital driver’s licenses or identification cards loaded onto an Apple iPhone later this year when customers enter the gaming floor after the state earlier this month approved its use for getting through TSA checkpoints at the airport but not for voting. 

Matthew Sculer, executive director of the Ohio Casino Control Commission (OCCC), confirmed the launch Tuesday (August 20), describing casinos as the perfect environment “because they are expert for screening for minors and those on the exclusion list.”

“This is the future,” Schuler said. “We are just stepping into it right now. The casinos once this happens will be the first large scale business in the state to adopt this.”

The Apple wallet version of an ID may have all the information, but it is not a photocopy. Instead, the iPhone shares a person’s information digitally, which means each casino will need a specific card reader. 

Ohio joins Arizona, Colorado, Georgia and Maryland as states that allow the use of mobile IDs at airport security. Seth Elkin, a spokesman with Maryland Lottery and Gaming, said the state’s six casinos “aren’t prohibited from using a system like this, but they would need to request approval, and then update their standard operating procedures accordingly.” 

“Yes, the Colorado Division of Gaming does allow for casinos in Colorado to use digital IDs to allow for access to the gaming floor,” said spokesman Kyle Boyd. “The division also recommends that casino operators consult the Internal Revenue Service and follow their guidelines for utilization of digital IDs for tax purposes.”

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Genting Seeks Legal Advice On Nevada Complaint
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Genting Berhad acknowledged in a regulatory filing that it has sought legal advice after the Nevada Gaming Control Board (NGCB) filed a 12-count disciplinary complaint against the company and its Resorts World Las Vegas subsidiary by allowing illegal bookmakers to wager millions of dollars at the casino.

“Resorts World Las Vegas has been actively working to communicate with the NGCB,” Genting said in its filing. “Genting and Resorts World look forward to resolving the issues raised by the NGCB and continuing to ensure that business practices at Resorts Worl Las Vegas meet all regulatory and legal requirements.”

The 31-page complaint deals with the activities of illegal bookmaker Mathew Bowyer, who pled guilty in federal court earlier this month to one count each of operating an illegal gambling business, money laundering and filing a false tax return.

According to the NGCB, Bowyer was allowed to gamble millions of dollars at Resorts World even though the resort had not adequately established his source of funds.

Genting stated that the company takes any suggestion of regulatory violations very seriously.

“Genting and its subsidiaries are committed to doing business with the utmost integrity and in line with applicable laws and industry guidelines.”

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Delaware Orders Virtual Gaming Worlds To Cease Operations
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The Delaware Lottery has ordered Virtual Gaming Worlds (VGW) to shut down operations in the state, according to a report by the Australian Financial Review.

VGW operates sweepstakes sites Chumba Casino, Luckyland and Global Poker.

The Perth, Australia-based company has also faced regulatory issues in other U.S. markets outside Delaware.

In December, the Michigan Gaming Control Board ordered VGW to cease operations of its sweepstakes games in the state, joining Idaho and Washington.

The report of Delaware’s order against VGW comes several days after the American Gaming Association (AGA) called on state regulators to investigate whether the offerings violate local laws.

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Gibraltar Assesses Licensee Over Information Deficiency
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The Gibraltar Gambling Division said it has reached a £25,000 settlement in lieu of a financial penalty with a licensee it did not name over a deficiency in treatment of two players.

The licensee failed to reconcile tax and income information provided by the players, the regulator said Friday (August 16) in a press release.

There was no evidence the players had engaged in tax evasion in their non-UK jurisdiction, but the mismatch between income and tax information should have meant that the operator asked more questions and asked for more information, the division said.

If a player does not provide a satisfactory explanation, consideration should be given to filing a suspicious activities report, the regulator said.

The licensee was fully cooperative with the investigation throughout, the regulator said. 

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Bill Allowing California Tribes To Sue Cardrooms Moves To Assembly Floor
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With less than two weeks left in California’s legislative session, a controversial bill providing Indian tribes standing to sue cardrooms on a one-time basis over the way they offer games, such as blackjack, is headed to the Assembly floor.

The Assembly Appropriations Committee approved the Tribal Nations Access to Justice Act, or Senate Bill 549, on Thursday (August 15) with a 14-0 vote.

“SB 549 is an attack on local cardrooms, which are a significant source of revenue for general funds in many cities across California,” said a coalition of cardroom trade groups, including the California Gaming Association, in a statement.

“The loss of local tax revenue could spell devastation for many cities across California,” the trade groups allege. “For example, approximately 78 percent of the City of Hawaiian Gardens’ general fund comes from cardroom revenues. This bill will destabilize essential services.”

The bill must pass the Assembly and get concurrence from the Senate before the legislature adjourns on August 31, then be signed by Democratic Governor Gavin Newsom. 

California Indian tribes believe that cardrooms violate state law and tribal gaming exclusivity by offering banked card games by contracting with third party proposition player services (TPPPS) to bank games. The California Gambling Control Commission licenses TPPPS and regulates the games. 

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Executive Director Of iGaming Ontario Retiring
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Martha Otton, the inaugural chief executive of iGaming Ontario, will retire from her role on December 31, the agency announced Thursday (August 15).

“She has left an impressive legacy across her career, and in particular to Ontario’s gaming sector,” Heidi Reinhart, chair of iGaming Ontario’s board of directors, said in a statement. “Ontario’s competitive iGaming market is testament to her visionary leadership and commitment to working with our operators and broader stakeholders.”

Previously, Otton was the chief strategy officer at the Alcohol and Gaming Commission of Ontario (AGCO) and was responsible for the agency’s strategic plan, while also playing a key role in the implementation of the AGCO's expanded mandate over horseracing and cannabis.

iGaming Ontario works in collaboration with AGCO. With Otton’s decision to retire at the end of the year, the board of directors will begin a process to identify the next executive director. 

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NSW Extends Deadlines For Star Casino
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The New South Wales (NSW) state government has extended deadlines for The Star Entertainment Group’s Sydney casino to cut daily betting limits and to introduce cashless gambling.

With the public release of a second independent probe into Star Entertainment’s licence suitability imminent, the NSW government has again given minor lifelines to the embattled company.

A government spokesperson told The Sydney Morning Herald on Thursday (August 15) that the daily cash gambling limit of A$5,000 (US$3,343) per person will remain in place for 12 months, instead of falling to A$1,000 per person from today.

The government has also agreed to postpone implementation of mandatory cashless gambling and carded play until October 19 on the mass floor after the failure of an attempted upgrade of electronic gaming machines in Sydney, Brisbane and the Gold Coast.

Star Entertainment’s VIP casino areas, meanwhile, have introduced carded play from today.

“In recognition of the practical difficulties encountered by both casino operators in implementing technology changes for cashless gaming and carded play, the NSW government has agreed to transitional arrangements so that both can address any issues and meet the requirements as swiftly as possible,” the government spokesperson told the Herald.

The second Bell inquiry into Star’s suitability to operate a casino was severely damaging for the company, and the increasingly hostile NSW Independent Casino Commission is set to issue its response to the report within days.

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Marina Bay Sands Bans Andrew MacDonald
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Las Vegas Sands’ (LVS) Singapore integrated resort Marina Bay Sands (MBS) has banned Resorts World Sentosa executive Andrew MacDonald, a former LVS employee, from entering the property.

MBS slapped the ban on MacDonald on July 31, warning of legal action should the former LVS powerhouse executive “attempt to enter or remain in any part of the Marina Bay Sands premises”, according to the persona non grata notice published by Inside Asian Gaming (IAG) on Monday (August 19).

IAG reported that MBS issued the notice over fears that MacDonald had attempted to poach gamblers and MBS staff during a series of informal visits to the property in July, allegations that MacDonald rejected in a reply to IAG.

The high-profile Australian corporate veteran was one of LVS’ key operations executives during the heyday of the company’s years under Sheldon Adelson, serving for almost ten years as senior vice president and chief casino officer of the parent company.

MacDonald later joined MBS’ Singapore rival Resorts World Sentosa in September 2022 as chief casino officer, executive vice president and member of the board, rekindling his relationship with the Genting Group, for whom he worked in 2007 and 2008.

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Entain Shareholders Lodge Lawsuit After UK Bribery Agreement
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A group of Entain’s institutional investors has brought a lawsuit against the London-listed gambling company over a drop in share price following a UK investigation into bribery offences at a former Turkish subsidiary.

Fox Williams law firm told the Financial Times it had filed a claim in London’s High Court seeking more than £150m after a share decline after it agreed to pay more than £600m as part of a deferred prosecution agreement linked to investigations of the Turkish episode.

Entain, whose brands include Ladbrokes and Sportingbet, said in a statement that it was “aware of these claims but has not yet been formally served with them, so these matters are at a very early stage. Entain intends to defend any proceedings robustly”.

The Turkish episode happened between 2011 and 2017 under previous management, while the company was known as GVC Holdings.

In July, Entain named Gavin Isaacs as chief executive last month to replace Jette Nygaard-Andersen, who left in December. 

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New Zealand opens consultation on account-based play rules and Bovada adds Ohio to growing list of restricted states.

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