News In Brief: September 16-September 20, 2024

September 20, 2024
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Videoslots has fine massively reduced in Netherlands, a first German state approves private operators to offer table games online, Betfred leaves Arizona and Tabcorp loses more executives.
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Videoslots Dutch Fine Slashed
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A previously record find for Videoslots issued by the Netherlands Gambling Authority (KSA) has been cut by more than 90 percent on appeal.

In 2023, the KSA announced it was issuing the Malta-based operator a €9.9m fine, based on a series of mystery shopper checks that the regulator said showed that Videoslots was offering its services to Dutch players.

The company complained at the time that it had been treated unfairly and that the regulator had acted poorly.

However, in announcing that the fine has now been reduced to €975,000, the KSA said only that it had reassessed "turnover figures", which means the amount of money generated by allegedly illegal Dutch gambling at Videoslots.

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German State Offers Online Table Games
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Schleswig-Holstein has become the first German state to licence private companies to offer online table games.

Under Germany's regulations, slots games can be offered online via a federal licence, but online table games are the purview of individual states. 

Schleswig-Holstein, a state of some 3m people, announced this week that it had licensed BluBet Operations Limited, Cashpoint Limited, Skill On Net Limited and Tipico Karlsruhe Limited.

"By allowing an attractive online offer, we want to prevent players from taking advantage of illegal offers if, for example, they want to play the games known from casinos online," said interior minister Sabine Sütterlin-Waack (CDU).

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North Carolina Regulators Propose Sports-Betting Rule Tweaks
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North Carolina regulators have released a new set of proposed rules that make minor changes to several sports-betting provisions and add new rules governing pari-mutuel wagering.

The North Carolina State Lottery Commission’s Sports Betting Committee approved a notice of proposed rulemaking Wednesday (September 18) and set an October 8 hearing for public comment on the modified rules.

Among other provisions, the new rules codify a key responsible gaming provision that is already implemented by many operators that requires that any cool-down or timeout period requested by a player to block themselves from wagering be at least 72 hours in length.

In addition, the rules require operators to submit a monthly report to the commission detailing all wagers deemed cancelled or voided by the operator as an “obvious error” without prior authorization from the commission. The current standard does not set a time period for those cancelled wagers to be reported.

The new rulemaking also sets standards for pari-mutuel wagering, which was permitted as part of the state’s sports-betting legalization but has yet to be implemented.

The commission said in a report to a legislative committee earlier this year that it intended to proceed “deliberately and incrementally” in bringing pari-mutuel wagering to market.

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Betfred Latest Bookmaker To Exit Arizona
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Betfred has added its name to the list of sports-betting operators who have left Arizona. 

The British bookmaker blocked new customers from creating an account and wagering with the platform on Thursday (September 19). Betfred plans to cease all operations in Arizona on November 4.

Customers have until early November to withdraw funds from their accounts. 

Betfred become the eighth operators to exit Arizona. SaharaBets announced in July it was exiting the state after securing a license through a partnership with the NHL’s Arizona Coyotes, which have relocated to Salt Lake City.

The other operators include SuperBook Sports, Betway, Fubo Sportsbook, WynnBET, TwinSpires and Unibet. 

The Arizona Department of Gaming (DGE) awarded two new licenses last month to Plannatech, which partnered with the San Carlos Apache Tribal Gaming Enterprise, and Sporttrade, which partnered with the Quechan Indian Tribe of the Fort Yuma Indian Reservation. 

Although the ADG successfully issued two licenses, the exit of companies has made several other event wagering operator licenses available. Arizona law allows 20 sports-betting licenses, with ten for tribes and ten for Arizona sports franchises that have partnerships.

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Tabcorp Replaces Chairman In Latest C-Suite Blow
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Australian wagering giant Tabcorp Holdings has announced the resignation of chairman Bruce Akhurst amid shareholder unease, and his replacement by non-executive director Brett Chenoweth.

Akhurst will retire from his post at the conclusion of the Tabcorp AGM on October 23, the company said in a filing to the Australian Securities Exchange on Thursday (September 19).

He will remain a director until the end of the year as incoming CEO Gillon McLachlan awaits regulatory approval.

Akhurst has chaired the company since its mid-2022 demerger with its lucrative lottery operations, but has presided over a rocky period for the retail wagering monopoly, culminating in heavy regulator fines, a plummeting share price and a surprise A$1.36bn ($927m) loss for the 2023-2024 financial year.

McLachlan, meanwhile, is set to formally replace Adam Rytenskild, whose alleged sexual comment targeting Victoria state gambling regulator Annette Kimmitt triggered his removal from the company.

Tabcorp also announced the resignation of non-executive director Justin Milne after 13 years on the board, pending appointment of his replacement.

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EveryMatrix Backs Acquisition Of Fantasma Games AB For €18.5m
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Online gambling supplier EveryMatrix announced a recommended public offer to acquire all shares in Stockholm-based games developer Fantasma Games AB for SEK 209.8m (€18.5m).

The acceptance period for the offer, which is SEK59 (€5.21) in cash per share, is expected to commence on September 19, 2024, and expire on October 10, 2024, according to an update published by EveryMatrix on September 18.

More than 50 percent of the Fantasma Games shareholders have signed binding agreements to sell their shares, with the bid requiring at least 90 percent of shareholders' approval to accept the offer. 

EveryMatrix said the deal will improve its games output, and strengthen its games division with strong synergies between both companies.

Fantasma recorded an EBITDA of €395,000 in Q2 2024, a profit margin of 36 percent.

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National Council On Problem Gambling Neutral On SAFE Bet Act
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The National Council on Problem Gambling (NCPG) announced Wednesday (September 18) that it is neutral on the recently introduced Supporting Affordability and Fairness with Every Bet (SAFE Bet) Act that has received mixed reviews from the gaming industry. 

“The introduction of the SAFE Bet Act draws attention to the need for stronger consumer protections for not just sports bettors but all gamblers and a safety net for anyone who develops a problem,” NCPG said in a statement. 

“NCPG hopes the proposed legislation will raise awareness of the critical need for federal government research into gambling addiction, national self-exclusion tools, and common-sense advertising standards.”

However, the non-profit NCGP said it believes a comprehensive national public health approach is necessary to effectively reduce gambling harm. 

“Such an approach should include population-wide strategies that are reinforced through regulation, legislation, and adequate funding. The SAFE Bet Act, as currently proposed, lacks the necessary investment in public health infrastructure to adequately address gambling addiction.”

Introduced last week, the SAFE Bet Act would create a federal oversight structure for state-authorized sports betting and requires states to meet minimum standards in three categories: advertising; affordability; and artificial intelligence.

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Bovada Restricts Access In Three Additional States
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Bovada has added three more states to its list of restricted markets, as regulators have targeted the offshore gaming company that has been operating illegally in the U.S.

The company most recently added Pennsylvania, Louisiana and Kansas to its list of restricted markets. Bovada now restricts access in 13 states and the District of Columbia. 

Doug Harbach, a spokesman with the Pennsylvania Gaming Control Board (PGCB), confirmed Wednesday (September 18) that its Office of Enforcement Counsel did send Bovada a cease-and-desist letter at the end of August.

“Because the letter came from the board’s investigative and enforcement unit and their work is accomplished confidentially and separate from the other areas of the agency, the report is not available for release,” Harbach said.

The Louisiana Gaming Control Board sent a cease-and-desist letter on August 6. The certified letters were sent to Curaçao-based Harp Media B.V. 

In recent months, state gaming regulators have focused on Bovada but have declined to discuss any efforts to block or shut down other offshore sites, such as MyBookie.ag or BetOnline.ag, that compete with legal and regulated gaming markets. 

Harbach told Vixio GamblingCompliance that they are not “commenting on the matter further.”

“I would therefore not be aware of any other similar correspondence that may have been sent,” he added.

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MLB Players Union Sues Sportsbook Operators Over Use Of Players’ Images
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A subsidiary of Major League Baseball’s players union has filed two lawsuits against four sportsbook operators, including market leaders FanDuel and DraftKings, claiming that the companies used player likenesses without permission.

MLB Players Inc. (MLBPI), which manages all commercial activities for the Major League Baseball Players Association (MLBPA), filed a federal lawsuit in the U.S. District Court for the Eastern District of Pennsylvania against DraftKings and bet365, as well as a state lawsuit in New York against FanDuel and Underdog Fantasy.

In the filings, MLBPI claims that the companies used player images on their sportsbook platforms despite not being licensed by MLBPI to do so.

“Defendants’ use of player images within their sportsbook platforms is not merely informational — it is promotional,” writes Jeffrey Kessler, an attorney representing MLBPI in the Pennsylvania filing. 

“Users could bet that the Phillies will beat the Marlins, or that Bryce Harper will hit more than two home runs in a given game, without seeing Harper’s valuable image,” Kessler wrote.

The filing points out that although the companies use player images for MLB players, they do not use images of NFL players in offering similar player proposition bets.

“And there is no other purpose for using popular MLB player names and images in advertising other than to increase the consumer appeal of the apps and draw users to make bets on the platforms, particularly given that the core information that bettors need in order to make informed decisions about placing sports bets is statistical data.”

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Virginia Authorities Investigate New Cashless Skill Game
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The attorney general’s office is looking into whether new skill-game machines violate Virginia’s ban, despite Pace-O-Matic’s assurances that the games fully comply with the current statute.

“We are looking at whether this company is in compliance with the law,” Shaun Kenney, a spokesman for Virginia Attorney General Jason Miyares, said in an email Tuesday (September 17). 

The new Queen of Virginia, or QVS2, machines are cashless devices manufactured by Pace-O-Matic. The company did not disclose how many machines are already operating in Virginia. 

Rachel Albritton, senior director of communications at Pace-O-Matic, said in a statement that the company “has never and will never” operate outside the law.

“Virginia legal experts have thoroughly reviewed our new product and have confirmed that the games fully comply with current statute,” Albritton said. “We remain committed to working with the General Assembly and administration on legislation to regulate and tax skill games.”

The Richmonder, a Richmond-based news site, first reported that the main change with the machines is how cash is handled, with the customer telling a cashier at a convenience store or truck stop where a game is located that they want to play the skill game and hands over the currency.

The cashier then uses a remote touchscreen to give the player credits on the machine. The company claims the machines are legal because Virginia law defines a skill game as a device that “requires the insertion of a coin, currency, ticket, token, or similar object to operate, activate, or play a game.”

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Illinois Revamp Advertising, Marketing Rules
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Sports-betting and casino operators in Illinois will need to adjust how they do business after regulators revamped advertising and marketing rules to protect minors and problem gamblers. 

The Illinois Gaming Board (IGB) last week approved stricter measures around wagering casino advertising and video gaming terminals (VGTs). The rules are similar to those implemented by Massachusetts and Ohio gaming regulators.

Previously, the IGB did not have guidelines for casinos and VGTs.

Marcus Fruchter, IGB’s administrator, said the new rules will provide uniform advertising regulations and standards across the markets the board regulates. 

The updated regulations ban operators from using the words or phrases “free, cost free, risk free,” and from promoting that wagering is “free of risk” in any way. Illinois also prohibited wagering advertising at venues whether the majority of attendees are likely to be under the age of 21. 

According to the regulations, sports-betting advertising is not permitted on any college campus, and cannot be published, aired, broadcast, displayed, or distributed on any college media outlets, such as newspapers.

College and university students or setting may not be depicted in advertising, and wagering messages and logos cannot be used on items such as clothes or toys that could appeal to those under 21.

“As part of the IGB’s ongoing work to reassess existing rules and measure the effectiveness of gaming expansion implementation, the IGB amended the current advertising and marketing rules for sports wagering to include additional safeguards and requirements and also make those rules applicable for the first time to casino gambling and video gaming,” said Fruchter.

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Liberia Lawmakers Ponder New Gambling Tax
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Liberia’s House of Representatives is reviewing a new draft law that includes withholding taxes on gaming and betting to bolster state revenue. 

The Liberia Consolidated Revenue Code will be amended to be known as the Liberia Tax Amendment Act of 2024, when it is enacted, according to a social media post from the House of Representatives on September 11.

Under the proposed changes to gambling winnings, a payment to a non-resident of winnings from gambling within Liberia is required to withhold tax at a rate of 30 percent.

The proposed law “comes at the backdrop of decrease in the mid-year revenue performance which has resulted to a downturn prevailing economic conditions”, according to the House of Representatives. 

The financial need strengthens its likelihood of being enacted.

In Liberia, there is no publicly available gambling law. However, gambling activities are taxed and included in the countries’ tax framework.

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Caesars Bets Against Missouri Sports-Betting Initiative
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Caesars Entertainment, which operates three casinos in Missouri, has donated $4.15m to a campaign opposed to an initiative supported by the state’s professional sports franchises.

Missourians Against the Deceptive Online Gambling Amendment was formed on September 10, which was followed the next day by a $1.3m donation by the Tropicana St. Louis, which is known as the Horseshoe St. Louis, according to a report filed with the Missouri Ethics Commission (MEC).

Caesars Enterprise Services donated $156,202, Harrah’s North Kansas City donated $1.4m, and Isle of Capri Boonville donated $1.3m on September 12. According to the MEC, a report needs to be filed within 48 hours if any contribution of more than $5,000 is received by any committee from any single donor.

As of Monday (September 16), Caesars was the only casino company to back the opposition to legal wagering in Missouri. 

On the other hand, Winning for Missouri Education has received more than $6.52m in contributions from DraftKings, FanDuel and Betfair Interactive U.S.

The measure sets the sports-betting tax rate at 10 percent and includes deductions for promotional play of up to 25 percent of the operator’s total cash received for a month and federal excise tax. Missouri’s four professional sports franchises, along with 12 casinos, could also operate retail and online sports betting.

Amendment 2 also would make two online betting platforms eligible to receive a license.

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France's Consumer Authority Clears FDJ Kindred Acquisition
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France’s Consumer Authority has cleared the acquisition of Kindred (Unibet) by France’s national operator, Française des Jeux (FDJ).

However, to mitigate the risk of creating a gambling conglomerate due to Kindred offering online sports betting, horseracing and online poker, FDJ will apply and supplement the same commitments it made in September 2023 to clear the acquisition of ZEturf, according to the authority's press release on September 13.

When FDJ acquired ZEturf it pledged not to exploit its monopoly gaming activities (lottery games online and at points of sale and sports betting at points of sale) for the development of competitive games (online horseracing and sports betting).

Additionally, FDJ has now made a new brand separation commitment that competitive games will eventually be marketed under one or more brands specific to them and not sharing a common root or logo with the FDJ or Parions Sport Point de Vente brands, or any other brand under which FDJ markets its monopoly games in France.

In light of the commitments made by FDJ, the authority cleared the transaction following the phase 1 examination.

In January 2024, FDJ made an offer, unanimously recommended by the Kindred board of directors, of SEK130 (€11.39) per share, which values the Stockholm-listed company at €2.6bn.

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Alabama Bill Increases Penalties For Illegal Gambling
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A prefiled House bill in Alabama seeks to increase the penalties for illegal gambling in the state, which are currently recognized and charged as a misdemeanor with lenient penalties.

House Bill 41, authored by Republican state Representative Matthew Hammett, seeks to change the classification of illegal gambling offenses from a Class A misdemeanor to a Class C felony.

According to the bill, people convicted of illegal gambling would face between one and ten years in prison, along with fines of up to $15,000. Currently, a Class A misdemeanor conviction for illegal gambling can be punished by up to one year in prison along with a fine up to $6,000.

Under the proposal, repeat offenders would face a Class B felony charge, which is subject to imprisonment between two and 20 years, as well as a fine of up to $30,000.

Hammett’s proposal would also specify that electronic games of chance, including electronic bingo, video lottery terminals and historic horseracing machines, are illegal gambling devices and prohibited by law.

Illegal gambling remains a problem in Alabama, with reports saying previously seized illegal gambling machines were discovered during police searches that were part of a criminal investigation. The machines were previously seized from locations that were shut down.

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Bally’s Terminates Pennsylvania Casino Partnership
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Bally’s Corp. and SC Gaming have terminated their agreement to build a $130m satellite casino in Centre County, Pennsylvania, the companies announced Friday (September 13).

After three years, since the deal was executed, Bally’s corporate long-term priorities have shifted elsewhere, prompting the Rhode Island-based company to exercise its option to end the partnership. Terminating the deal also allowed Bally’s to “allocate resources towards other priorities,” the company said in a statement.

SC Gaming confirmed that the casino project is on schedule and there was no impact from Bally’s decision on the project’s progress. The Category 4 casino was expected to open during the first half of 2026.

George Papanier, president of Bally’s, said as their “strategic focus evolves, we have made the difficult decision to conclude out relationship.” Bally’s had predicted that construction on the project would begin in 2025.

SC Gaming had already paid the $10m for the satellite-casino license. In July, Bally’s agreed to be acquired by its largest shareholder, Standard General, in a deal that valued the gaming company at $4.6bn, including debt.

Standard General had already owned nearly 23 percent of Bally’s and agreed to pay $18.24 per share in case for the rest of the shares it did not own. 

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Videoslots has fine massively reduced in Netherlands, a first German state approves private operators to offer table games online, Betfred leaves Arizona and Tabcorp loses more executives.

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