News In Brief: February 24-February 28, 2025

After a nearly two-year delay, the Sri Lankan government has announced it will draft legislation to form a dedicated gambling regulator with a view to boosting tourism and economic growth.

The announcement promises a new era of regulatory clarity and industry expansion as the government seeks to overhaul revenue streams that have suffered years of disruption.

While the regulator was first given the green light in June 2023 in principle, the Cabinet only decided at its latest meeting on Monday (February 24) that the Gambling Regulation Authority could enter its legislative drafting phase.

The regulator will be an “independent establishment with a broad and complete subject arena to standardise gambling institutions, minimise social damage, promotion of [the] tourism sector and ensure economic growth”, according to a summary of Cabinet decisions on Monday.

The Cabinet’s decision followed a resolution from Sri Lankan President Anura Kumara Dissanayake in his capacity as finance and economic development minister.

Sri Lanka’s land-based casino segment has gradually expanded to six properties, with two major projects on the way.

The new additions will be City of Dreams Sri Lanka, a joint venture between Macau’s Melco Resorts & Entertainment and local powerhouse John Keells Holdings, and the Sri Lanka-India joint venture Majestic Pride Casino at the Lotus Tower, both in the capital Colombo.

The long-awaited decision on the regulator coincides with the annual budget’s increase in entry fees for casino customers from $50 to $100, and a rise in the gross collection levy from 15 percent to 18 percent.

A clash between the board of Australian online bookmaker PointsBet and high-profile corporate shareholders has spilled into the media, with the board supporting a takeover by Japanese corporation Mixi and the latter backing Australian rival BlueBet.

Mixi and BlueBet recently made takeover offers of A$353m ($222m) and between A$340m and A$380m in cash and scrip from Mixi and BlueBet, respectively, with the PointsBet board unanimously supporting the Mixi bid, the Australian Financial Review (AFR) reported on Wednesday (February 26).

AFR sources close to PointsBet said the BlueBet offer, while possibly larger, was “highly conditional”, lacking in funding certainty and without clear cost-saving synergies.

However, the newspaper quoted investment managers and PointsBet shareholders Wilson Asset Management and Pendal as saying the Mixi deal undervalues PointsBet and that they will vote against its offer, potentially splitting the PointsBet board and leading shareholders.

A PointsBet takeover would be the latest corporate consolidation in response to keener competition, falling margins and tighter regulation in the Australian market as public sentiment turns against ubiquitous sports-betting advertising and problem gambling.

Presque Isle Downs and Casino, which is owned by Churchill Downs Inc., has been fined $50,000 by Pennsylvania regulators for violating minimum slot machine requirements during reconfiguring its gaming floor.

The Pennsylvania Gaming Control Board (PGCB) voted unanimously Wednesday (February 29) to approve a settlement for several violations of the Gaming Act’s requirement that a minimum of 1,500 slot machines be on the floor at a licensed casino.

Lou Frascogna, vice president corporate compliance officer and senior counsel with Churchill Downs, admitted to the violations in the original complaint but told the control board that Presque Isla “has advocated and will continue to advocate with legislators … that the minimum of 1,500 is effectively no longer  a necessary floor for operators in the state of Pennsylvania.”

Frascogna reminded regulators that when the requirement was put into place in 2004, lawmakers did not contemplate that one day there would be retail and online sports betting, iGaming, some 100,000 unregulated skill games, and the legalization of gaming in adjacent states. 

On average, Presque Isle uses between 30 and 50 percent of its actual number of machines, even during peak hours. Frascogna said that there are probably 400 to 500 excess machines that are not used even at peak times.

The PGCB also approved a $31,575 fine to settle a complaint with Presque Isle for failing to timely file a principal license application for Jonathan Rauch, Churchill Downs vice president, chief accounting officer. 

The Swedish government has responded to the findings of the National Audit Office’s report for 2024, finding the Swedish Gambling Authority’s (SGA) supervision lacking, as they do not conduct enough inspections and do not follow up sufficiently when shortcomings are reported.

The audit also said that the current form of the Gambling Act makes the fight against illegal gambling difficult.

In its response, the government shared that it had taken “several measures to strengthen the Swedish Gambling Authority’s conditions for conducting supervision”, without specifying what those measures are.

The letter said that they had assigned “an expert” with the role at the Ministry of Finance to help “in submitting proposals on how the scope of application of the Gambling Act should be designed”.

That expert was already announced last week and has until September 17 to present their findings.

Czechia's Financial Administration has said it saved the government CZ$540m (€21.6m) by uncovering extensive tax evasion in the gambling sector perpetrated by an unnamed operator.

In an update on February 20, 2025, the Financial Administration said it uncovered suspicious behaviour and cash flows reported by the operator using data analysis. This revealed irregularities that led to an additional tax assessment of CZK$340m.

The operator also incorrectly reported fees and commission, meaning the total financial impact would exceed CZK$540m.

Otakar Sladkovský, director of the specialised tax office, said: “Our goal is clear — to protect fair entrepreneurs and ensure that everyone pays taxes according to the same rules. This case is proof that modern analytical tools and the careful work of our inspectors bring concrete results.”

The seven gaming clubs of Paris will reopen their doors after two months of being shuttered.

Casinos have long been banned in the city, but the gaming clubs were opened on a trial basis in 2018 by President Emmanuel Macron. They shut down at the end of the year, a casualty of the finance bill that was ultimately rejected by the French National Assembly.

The Ministry of the Interior has suggested that activity can resume on February 28 or early March.

The gaming clubs were originally meant to only be open for two years, but that was extended until 2022 and again until 2024. They were due to be made permanent in 2026 before the shutdown.

South Africa has extended the bid period to operate its national lottery by an additional 12 months, raising questions about what will be done when the current licence expires in May 2025.

Parks Tau, the minister of trade, industry and competition, wrote a letter to members of parliament explaining his decision to extend the process until May 31, 2026.

“The complexity of conducting the national lottery, which supports vulnerable communities and those disadvantaged by unfair discrimination, requires that I choose an operator that will not only maximise the net proceeds from the national lottery and sports pools for good causes but also manage these operations with integrity and efficiency,” the letter dated February 20 states.

Tau believes the extension is necessary to help complete the review, ensure it is fair and that the applicant is the “best equipped to handle the complexities of the National Lottery and Sports Pools Licence”.

Ithuba, the current licence holder, already had its licence extended by two years.

The government made no mention of what its current plan is for when the licence expires.

One possibility could be another extension, which would likely prove controversial, especially for the operators that have placed bids.

The Hong Kong government could expand sports betting from football to basketball and other sports, potentially increasing Hong Kong Jockey Club (HKJC) non-racing betting revenue by at least HK$53bn ($6.7bn), or one-third of football revenue.

Finance minister Paul Chan is considering permission for the HKJC to add basketball betting to bolster sagging government revenue and ease a growing deficit climbing past HK$100bn, the South China Morning Post reported on Monday (February 24).

The 2025 budget, to be released on Wednesday, stands to gain markedly from any legalisation of basketball betting, which is wildly popular in other Asian markets, especially on NBA fixtures.

Jockey Club CEO Winfried Engelbrecht-Bresges has supported any expansion into basketball betting and taking revenue from a formidable underground market for the sport in Hong Kong.

The Hong Kong authorities have yet to confirm whether basketball is a serious contender for the city’s newest betting sport, or whether it would impose a 50 percent duty on the segment as it does for football.

However, the prospects for legalising betting for basketball and other sports seem firm given that the pro-government South China Morning Post and the HKJC are averse to comments that would harm fiscal or policy initiatives.

The Michigan Gaming Control Board (MGCB) confirmed Monday (February 24) that it has issued a cease-and-desist letter to BetNow.eu Sportsbook, Casino and Racebook, another offshore site operating illegally in the state, but also named the payment options for player deposits. 

Visa, Mastercard, American Express, Zelle, Apple Pay, Google Pay, PayPal, Bitcoin, Ethereum, Litecoin, Tether, Bitcoin Cash, CashMG, and bank transfers, were listed as payment options for BetNow. However, players must wager their entire initial deposit before becoming eligible to withdraw any winnings. 

The site offers a range of casino games, including slots, poker, and live dealer options such as blackjack, roulette, and craps, as well as betting services for sports events and horse races.

“This unlicensed operator not only violates Michigan law but also exposes consumers to significant risks,” said MGCB executive director Henry Williams in a statement. 

BetNow has 14 days to cease offering gambling services to Michigan residents as required by the cease-and-desist order. If the company fails to comply, the MGCB is prepared to work with the Michigan Attorney General’s office to pursue legal action.

A Maryland lawmaker has introduced a bill to repeal the state’s online sports-betting law. 

Senate Bill 1033, introduced by Senator Joanne Benson, a Democrat, would repeal online sports betting on January 1, 2026, and require the Maryland Lottery and Gaming Control Commission, under certain circumstances, to refund the application fee submitted by certain applicants. 

Benson’s bill would not affect the legality of retail wagering in Maryland. The bill has been referred to the Senate Rules Committee for further consideration.

The bill was the second proposal introduced in February, as three lawmakers in Vermont introduced House Bill 133 to repeal the state’s sports betting and lottery laws. 

HB 133 has been referred to the House Committee on Government Operations and Military Affairs.

Maryland voters approved sports betting in 2020, with retail sportsbooks taking bets in late 2021. Online sports betting launched in November 2022. 

Benson’s bill was introduced as Democratic Governor Wes Moore has proposed doubling the sports betting rate to 30 percent from 15 percent and raising table game tax rates from 20 percent to 25 percent to help close a $3bn budget deficit.

The Malta Gaming Authority (MGA) is refining its risk-based supervision approach towards online gambling, as it looks to become increasingly evidence-driven and outcomes-focused.

As a result, the MGA is making its supervisory activities more proactive and targeted, according to a document published on February 21 outlining its online gambling supervisory engagement efforts for 2025.

The MGA’s updated methodology “requires licensees to demonstrate a comprehensive understanding of their regulatory obligations, maintain strong internal controls, and actively engage in the Authority’s supervisory processes”.

Licensees are also encouraged to “take a more active role in demonstrating compliance and managing risks within their operations”.

“This refined supervisory approach ensures that the Authority remains agile and adaptive, capable of addressing the dynamics of a fast-evolving industry while maintaining its commitment to fair and effective regulation,” the MGA said.

The regulator is also looking to increase its outreach to provide guidance to licensees about their compliance obligations.  

The MGA said this reflects its “commitment to maintaining a transparent regulatory environment for its stakeholders”.

To rate the effectiveness of its interventions, it will monitor and assess whether key objectives, such as enhancing compliance standards and improving player protections, are met.

As a result of analysis of previous findings from supervisory efforts over the past years, the MGA determined it will prioritise operational resilience and governance assurance as two key thematic areas. 

Colombian authorities have successfully blocked more than 400 websites associated with international operators 1xBet, 1Win, BBRBet and Pinnacle, according to gambling regulator Coljuegos.

In a statement, Coljuegos said it blocked 10,000 illegal gambling sites last year but was now “intensifying blocking actions” against unlicensed platforms available in the country, in collaboration with the Colombian Ministry of Technology and National Police.

The regulator is also actively monitoring social-media accounts that promote unlicensed gambling sites, warned Coljuegos president Marco Emilio Hincapié.

“We know that cybercriminals look for strategies to remain online, and that is why this year we will increase our efforts to continue blocking websites that commit the crime of offering illegal betting,” he said.

The announcement on Friday (February 21) came ahead of the implementation of a 19 percent value-added tax to deposits made with Colombia’s 15 licensed online gambling operators.

Coljuegos also published several notices on social media on Friday to advise Colombian bettors of the new tax, which became effective on Saturday.

Brazilian Supreme Court justices have voted to uphold a preliminary injunction to prevent online betting platforms licensed by the state of Rio de Janeiro from operating across the country.

The order was imposed by one of the 11 Federal Supreme Court (STF) judges in early January, with Rio state lottery authority LOTERJ more recently approving a resolution to comply with the injunction. 

Under STF rules, justices are required to vote on whether to uphold or reject preliminary injunctions imposed in pending cases. 

Eight of the 11 judges voted to maintain the temporary ban on interstate betting by Rio-licensed operators when a review period closed on Friday (February 21). Two justices also voted for the injunction to be upheld, but with the proviso that any operators awarded local licences by LOTERJ prior to the January 2 order should be exempted at least until the case is concluded.

The STF will rule in full on the legal challenge filed by Brazil’s attorney general against LOTERJ at some point later this year. 

A bill that would require an independent study to identify parts of Indiana where current gaming facilities might possibly relocate has been referred to the state's House of Representatives after being approved by a vote of 33-16 last week in the Senate.

Senate Bill 43 would specifically require the Indiana Gaming Commission (IGC) to contract with an independent market research firm to identify and assess the top three regions in the state that would be attractive to the state’s 13 casinos and racinos to relocate to.

The study would need to consider the projected annual gaming revenues and taxes, the impact on other casinos in the state and their tax revenues, visitation and gaming revenues from out-of-state visitors, and the impact of a casino on the region’s tourism industry.

The bill also requires the study to look at the impact relocating a casino would have on the horseracing industry, a potential tribal casino in the region, and the revenues that potential tribal casino may generate.

Republican Senator Andy Zay, a co-sponsor of SB 43, previously filed Senate Bill 293 that would have expressly allowed Full House Resorts to move its Rising Sun Casino Resorts from along the Kentucky border some 150 miles north to New Haven in northeastern Indiana. Zay’s bill was tabled by the Senate Committee on Public Policy. 

Senate approval of the study bill comes after House Bill 1432 to legalize iGaming and iLottery in Indiana was passed out of the House Public Policy Committee early in the 2025 legislative session before failing to pass the House Ways and Means Committee. 

Senator Wayne Fontana, a Democrat, has reintroduced legislation to ban the use of credit cards to fund online gambling accounts in Pennsylvania.

Senate Bill 265 proposes amending Title 4 of the Pennsylvania Consolidated Statutes, which oversees gaming in the state. The bill prohibits any licensed fantasy sports, internet gaming or sports-betting operators from accepting a credit card as a form of payment.

Fontana’s prohibition would also eliminate credit cards as a method to fund iLottery accounts.

“Gambling and credit-card debt often go hand in hand since this disorder can lead to financial problems that affect one’s ability to pay off debt,” Fontana said in a memorandum to his Senate colleagues. “With the average Pennsylvania having a credit card balance that exceeds $5,640, online gaming should not be another scenario to accumulate more debt.”

Fontana’s bill has been referred to the Senate Community, Economic and Recreational Development Committee. As of Friday (February 21), the committee has not scheduled a hearing on SB 265.

His initial bill, Senate Bill 1159, introduced during 2023-2024 last session was referred to the same committee but was not considered before the General Assembly’s adjournment in November.

The Pennsylvania Senate is scheduled to reconvene on March 17.