Latest Gambling News: High 5 Casino Shuts Down In U.S. iGaming States, and more

Catch up on six of the stories our gambling compliance analysts have covered lately, and stay up-to-date on the latest news.

High 5 Casino Shuts Down In U.S. iGaming States

High 5 Entertainment confirmed that its sweepstakes casino offering, High 5 Casino, will block access to residents in six states next month which offer legal online casino games.

In an update to its terms and conditions dated February 18, High 5 Casino said that as of March 14 it will no longer accept new sweeps players or purchases from existing players in Connecticut, Delaware, New Jersey, Pennsylvania, Rhode Island and West Virginia.

All player accounts will be permanently closed after March 14, the company said. High 5 Casino is already unavailable in Idaho, Kentucky, Louisiana, Michigan, Nevada, Montana and Washington state.

Earlier this month, a Washington state jury ordered High 5 to pay $24.9m in damages, a decision that comes eight months after a U.S. District Court judge found the company’s social casino gaming platforms constituted online gambling.

The company also blocked new player accounts and banned existing players from making purchases or redeeming sweeps in Canada as of February 3. All Canadian accounts will be permanently closed after Friday (February 28).

Entain Loses Australian Deputy CEO, Kiwi Boss

Just days after Gavin Isaacs’ premature departure as Entain group CEO, the global gambling giant has lost its deputy CEO for Australasia and its managing director for New Zealand operations.

Entain Australia and New Zealand deputy CEO and CFO Lachlan Fitt resigned after seven years in the company, the Guardian Australia reported on Thursday (February 20).

The Guardian reported Fitt as saying that “after a decade as an international wagering executive, now is the right time to move on to my next chapter".

“I am grateful to Entain for backing me, and particularly for the recent opportunity to work on starting the revitalisation of the New Zealand racing industry.”

Kiwi colleague Cameron Rodger has also resigned as managing director of New Zealand operations after less than two years in the job, according to the New Zealand Herald.

The Herald reported on Thursday that Rodger wanted to work more in the breeding sector and that Fitt will continue to work in the New Zealand industry. Rodger will be replaced by deputy CFO Sam Moncur, the daily said.

Neither outgoing executive mentioned the ongoing prosecution of Entain in Australia. Financial transactions regulator AUSTRAC launched the civil case in December, accusing the company of chronic breaching of anti-money laundering legislation and “systemic failures” in managing customer deposits, including the alleged shielding of customer identities and allegedly doing business with convicted felons.

Alabama Senate Short Votes To Pass Gaming

An Alabama senator has confirmed that he does not have the voters to pass a sports-betting bill.

Republican Senator Greg Albritton told Alabama Public Television’s Capitol Journal he would offer a bill if he had 21 votes in the Senate. Albritton said he does not have 21 votes.

“Alabama has a moral obligation to take control of this industry and regulate it to protect the public,” Albritton said. “We have that obligation, and yet we can’t seem to get 21 votes to take this in and to control it.”

“Keep in mind now,” Albritton said, “before [the] Super Bowl, bets were being made in the state House.”

He added that Jalen Hurts, a former University of Alabama quarterback who led the Philadelphia Eagles to a 40-22 win over the Kansas City Chiefs in Super Bowl 59, “made a lot of money for people in Alabama in that win.”

Last year, negotiations behind the scenes during the final day of the Alabama legislative session failed to secure the extra vote needed in the Senate to pass consensus legislation that included a state lottery, slot machines at seven locations and required compact negotiations with the Poach Band of Creek Indians.

Alabama remains one of five states without a lottery.

U.S. Lawmakers Seek To Eliminate Federal Sports-Betting Handle Tax

For the fourth time since the U.S. Supreme Court overturned the federal ban on sports betting in 2018, two lawmakers have introduced legislation in Congress to repeal the handle tax placed on each wager.

The 0.25 percent tax, known as the “handle tax,” placed on all legal sports bets was enacted in 1951 to counter illegal gambling, which Representatives Dina Titus, a Democrat from Nevada, and Guy Reschenthaler, a Republican from Pennsylvania, believe is no longer relevant today.

Titus and Reschenthaler introduced legislation to repeal the handle tax in 2019, 2021 and 2023, saying they recognize the economic importance of sports betting.

Sports betting is legal and operational in 38 states and the District of Columbia.

“Illegal sportsbooks do not pay the 0.25 percent sports handle tax and the accompanying $50 per head tax on sportsbook employees, giving them an unfair advantage,” Titus said.

Titus added that she once asked the IRS where the revenue from the handle tax went in the federal budget, and it did not even know.

“It makes no sense to give the illegal market an edge over legal sports books with a tax the federal government does not even track,” Titus added.

Wales To Ban Greyhound Races

Greyhound racing is to be banned in Wales "as soon as practically possible", the country's government has said.

In a surprise announcement on Tuesday (February 18), Welsh Deputy First Minister Huw Irranca-Davies said the sport would be outlawed, ideally by mid-2026.

"There will be work to do in ensuring the dogs, their owners, and those involved in the industry around the racetrack, can wind down from this activity while still protecting the welfare of dogs currently within the industry, the local community and the local economy," he said.

Trade group the Betting and Gaming Council reacted with dismay to the news.

“Greyhound racing is a working-class sport, enjoyed by thousands, and this draconian move will cost jobs, hurt the economy, while depriving people of a long established and legitimate source of joy," said a spokesperson.

“We are also concerned that this decision has not been based on evidence but instead taken to satisfy campaigners."

Wales would become the first country within the UK to ban greyhound racing.

Light & Wonder Acquires Grover Gaming’s Charitable Gaming Business

Light & Wonder has acquired the charitable gaming assets of Grover Gaming and G2 Gaming for $850m in cash, the company announced Tuesday (February 18).

The purchase prices was complemented by a four-year revenue earn-out of up to $200m, potentially bringing the price tag to more than $1bn. The deal was expected to close by the end of the second quarter, subject to regulatory and other approvals.

Grover Charitable Gaming is privately owned by Garrett Blackwelder and has an installed base of more than 10,000 leased electronic pull-tab terminals in North Dakota, Ohio, Virginia, Kentucky and New Hampshire operating under a recurring revenue model.

In 2024, Grover Charitable Gaming generated revenue of $135m and adjusted EBITDA of $111m.

In a research note, Macquarie analyst Chad Beynon said the deal complements Light & Wonder’s “cross-platform strategy by expanding into another high-growth adjacency in which Light & Wonders is not currently a participant.”

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