News In Brief: June 24-June 28, 2024

Tribal gaming operations generated $41.9bn in gross gaming revenue last year, setting a new record and another sign of the continued strength over overall U.S. gaming market.

Combined with the $66.5bn generated by the commercial gaming industry in 2022, total revenues topped $100m for the second year in a row. In 2022, commercial casinos generated $60.4bn and tribal $40.9bn for a total of $101.3bn. 

Sharon Avery, acting chairwoman of the National Indian Gaming Commission (NIGC), attributed the $1bn increase to the viability of tribal gaming operations, as they continue to adapt to new technologies and changes in consumer preferences.

“This year’s GGR results demonstrate how a strong regulatory framework and diversity of tribal gaming enterprises generates growth in the gaming industry,” Avery said Thursday (June 27) at the Wisconsin Gaming Regulators Association’s summer conference in Green Bay.

All eight NIGC regions reported year-over-year growth in gaming revenue. The Phoenix region, which has 54 tribal operations, posted the largest increase, a 5.5 percent jump to $3.92bn, while the Sacramento region, which includes 87 tribal operations, remains the largest region at $11.96bn, a 1.8 percent increase from 2022.

The Arkansas Racing Commission (ARC) on Thursday (June 27) issued the casino license in Pope County to Cherokee Nation Entertainment. 

Earlier this month, the commission decided to proceed with the Cherokee application to build its $300m-plus Legends Casino project after receiving a letter of support from local leaders. 

No date has been set for construction to begin but it is expected to take 18 months to complete.

Mississippi-based Gulfside Casino Partnerships also submitted an application that was rejected by commissioners due to it lacking a letter of support from local leaders.

This is the commission’s third attempt at issuing a casino license in Pope County. State courts have voided the previous licenses to Gulfside Casino Partnership and Cherokee Nation Business.

Voters approved Amendment 100 to the Arkansas State Constitution on November 5, 2018, to allow four casinos in the state. Currently, Saracen Casino is operational in Pine Bluff, while casino gaming is also offered at Oaklawn Racing & Gaming in Hot Springs and Southland Gaming & Racing in West Memphis.

Kenya’s President has said he will withdraw the controversial finance bill, which included a raft of tax increases including a host affecting the gambling industry, after mass protests against it led to several deaths and parliament being stormed. 

On June 26, President William Ruto said “I concede” as he admitted that people “want nothing” associated with the bill.

Just a day prior, lawmakers voted in favour of the controversial Finance Bill 2024 and the government's amendments to parts of the draft law.

President Ruto had two weeks to sign it into law or send it back to lawmakers with more proposed amendments.

The government was determined to reduce its public debt, which stands at 68 percent of its GDP; however, it now appears to be on a course towards promoting austerity measures on public spending to alleviate the tax burden on citizens.

The bill would have increased the excise duty on gaming, betting and lottery products from 12.5 percent to 20 percent and amended the VAT status of several products currently exempt from tax, including gaming, betting and lottery products. The proposed rate of VAT is 16 percent. 

Additionally, the existing excise duty on gambling adverts that currently apply to traditional forms of media, such as television and print, would have been expanded to online adverts, including social media platforms.

Lithuania’s Seimas, the legislative branch of government, has adopted amendments to the Law on Lotteries and Gambling Tax, which will see the tax rate increase from 20 percent to 22 percent of gross gaming revenue (GGR).

The legal changes will come into force from January 1, 2025.

It is estimated that the change in the tax rate would generate an additional €4.4m annually for the state budget, which the government says will be used to “educate the public about the possible [caused] harm of problem gambling”.

The amendments received preliminary approval a few days before the final approval.

In the run-up to the Olympics in Paris and as the Euros continue, the Directorate General for Competition, Consumer Affairs and Fraud Prevention (DGCCRF), together with the National Gaming Authority (ANJ), has issued a warning to players about so-called “tipsters”.

According to the press release, tipsters offer advice free of charge or by subscriptions, and claim to have expert advice to hand out regarding betting. “To encourage the subscription of subscriptions, some operators display a luxurious lifestyle on social networks, claiming that their advice on sports predictions would allow them to earn a lot of money in a short time.”

The DGCCRF warned players that any suggestion or claim that using tipsters will increase chances of winning is “likely to constitute an offence punishable by criminal prosecution”.

Up to one in three Indonesian lawmakers across national and regional electorates is gambling illegally online, the nation’s financial transactions watchdog has alleged in parliament.

The head of the Financial Transactions Reports and Analysis Center (PPATK), Ivan Yustiavandana, told a parliamentary committee on Wednesday (June 26) that more than 1,000 lawmakers and public servants in the national parliament or regional lawmakers have made a total of 63,000 online gambling transactions worth 25bn rupiah ($1.5m).

Yustiavandana did not break down the number of lawmakers by assembly or region, but said the PPATK “will be sending out notifications” to suspected gamblers, the Jakarta Globe reported.

The total number of seats in the House of Representatives and regional legislatures is 2,807, making the proportion of implicated elected officials roughly one in three.

The revelations came with the onset of an internationally coordinated central government crackdown on online gambling, which President Joko Widodo has confirmed includes the formation of a Gambling Eradication Task Force and mass targeting of gambling websites.

The Maryland Sports Wagering Application Review Commission (SWARC) awarded Betr an online sports-betting license on Wednesday (June 26), but the company still needs to go through a controlled demonstration before going live in the state. 

Currently, there are 16 licensed mobile sports-betting operators in Maryland. Betr is operational in Virginia, Ohio and has received a temporary license but has yet to launch in Indiana. 

Betr was operational in Massachusetts but ceased operations on February 16 due to economic reasons. The privately held gaming company enters Maryland as Betfred confirmed last week that it will exit the state by the end of the month.

Bally Bet is also expected to launch in Maryland in July. 

“It has been interesting to watch this industry evolve,” said SWARC chairman Thomas Brandt. “And of course, there are the two big kahunas, as we sort of anticipated, but these guys seem to have identified a niche they want to try to exploit.” 

Betr is a company that specializes in sports micro-betting, such as being able to bet on whether the next pitch in a baseball game will be a strike or a ball. 

Betr and Bet on Gaming Holdings (BOGH) have also entered into a profits interest agreement, whereby BOGH, a minority-owned business, has a 5 percent state in Betr, which satisfies ownership interest requirements.

A UK Cabinet minister has admitted to placing three bets on the date of the general election but denies breaching any rules, as numerous allegations emerge weeks after the initial political betting scandal began.

Scottish Secretary Alister Jack, who is a member of the Scottish Conservatives, reportedly told the BBC that in April 2024 he placed a winning bet that the election would take place between July and September. He also made two similar losing bets in March.

Jack admitted that the winning bet he placed was a £20 bet and it would have won him £120.

Jack said in a statement: "I had no knowledge of the date of the election until the day it was called. I placed no bets in May and am not under investigation by the Gambling Commission."

Jack is standing down from his role as he is not running for re-election.

The Arizona Department of Gaming (ADG) confirmed Tuesday (June 25) that they have reached out to the Arizona Coyotes to discuss the future of the inactive National Hockey League team’s sports-betting license. 

The Coyotes are one of eight Arizona sports franchises that have gaming licenses. The team has a partnership with owner Alex Meruelo’s SaharaBets, allowing the online platform to offer sports betting across the state.

“Regarding the Coyotes' license in Arizona, the Arizona Department of Gaming (ADG) sent the Coyotes correspondence regarding the status of licensure in Arizona,” the ADG said in a statement emailed to Vixio GamblingCompliance.

“ADG and the Coyotes are undergoing the appropriate administrative processes regarding action on this license,” the statement said. 

Meruelo is the founder of the Meruelo Group, which owns the Grand Sierra Resort and Casino in Reno, the Sahara casino in Las Vegas, and SaharaBets. 

The team’s license was in jeopardy after Phnx Sports reported that Meruelo has no plans to pursue further arena options after the state land department canceled a planned auction on Thursday.

As part of the $1.2bn deal to sell the team to Ryan and Ashley Smith, owners of the NBA’s Utah Jazz, the NHL gave Meruelo five years to meet certain parameters to reactivate the franchise in Arizona.

MGM Resorts International announced Monday (June 24) that its subsidiary LeoVegas is acquiring the U.S. internet gaming and sports-betting operations of Tipico Group.

The financial terms of the deal were not disclosed. Tipico will wind down its U.S. operations before the acquisition closes in the third quarter of 2024.

As part of the deal, LeoVegas will acquire Tipico’s U.S.-facing management, technology and trading teams across the U.S., Colombia, and Europe. Tipico confirmed that on Wednesday (June 26) they will no longer accept new deposits, wagers and registration, while all active promotions will be canceled on Friday.

“This acquisition gives us control of our entire technology ecosystem,” Gary Fritz, president of MGM, said in a statement. 

MGM acquired LeoVegas in May 2022 for around $607m in cash. A year later, LeoVegas made its first acquisition under its new owner when it acquired game developer Push Gaming.

Germany-based Tipico is owned by the private equity firm CVC Capital and offers sports betting in Colorado, Iowa, New Jersey and Ohio.

Betfred will cease operations in Maryland and end its relationship with Long Shot’s in Fredrick, while two other operators plan to enter the market. 

John Martin, director of the Maryland Lottery and Gaming Control Agency, said Betfred will end its retail sportsbook operations on June 30, followed by its mobile sportsbook on June 31.

“This is not the first time this has happened in Maryland,” Martin told the gaming commission last week. “I don’t think it is going to be the last time. So [Long Shot’s] will be proceeding on a new relationship.”

Betfred also operates in Arizona, Iowa and Ohio. In August, WynnBET withdrew from Maryland along with seven other states as part of a restructuring of its gaming business. 

Martin confirmed that Veterans Services Corporation will begin taking bets on July 1. They were licensed to operate mobile-only wagering with their partner Bee-Fee.

He also told the commission that Bally Bet was expected to launch in Maryland next month, although he did not give a specific date for the launch.

Republican Governor Jeff Landry on Monday (June 24) appointed Christopher Hebert as chairman of the Louisiana Gaming Control Board. 

Hebert is the first African-American to serve as chairman of the board that regulates gaming activities, including casinos and sports betting in the state. He replaces Ronnie Johns, who spent three years as chairman and oversaw the launch of retail and mobile sports betting. 

“Proper regulation of the gaming industry is crucial at a time in which gaming revenue continues to be a substantial part of our state’s economy,” he said. Hebert said he was “both humbled and honored” that the governor chose him to be the first African-American chairman of the control board. 

Herbert has served as an assistant attorney general with the Louisiana Attorney General’s office for more than 19 years and as the director of the Gaming Division for the previous eight years.

Australia’s national online gambling regulator has ordered streaming service Hubbl to undergo an external audit, threatening it with millions of dollars in fines if it does not account for the running of illegal gambling ads via its Kayo Sports platform.

The Australian Communications and Media Authority (ACMA) on Tuesday (June 25) said Hubbl ran gambling ads during restricted live sports broadcast windows on various occasions in early 2023, generating complaints from viewers.

Hubbl ran “16 different gambling advertisements … across a total of 267 live sports events”, the ACMA statement said.

ACMA authority member Carolyn Lidgerwood said the fact that Hubbl “failed to identify a system bug affecting the playout of gambling ads across a large number of live sports events was very concerning”.

An ACMA remedial direction dated May 21 noted Hubbl’s cooperation with the ACMA probe and its claim that it did not deliberately violate ACMA rules.

Instead of prosecuting the company or issuing an infringement notice, the ACMA opted for an enforcement action in the form of an external audit of company systems, processes and practices, as well as an assessment of its remedial actions, staff communication and training, and awareness of regulatory rules.

However, the ACMA statement noted that any failure to abide by the remedial order would expose Hubbl to penalties of up to A$626,000 ($417,000) per day if the company is taken to court.

The independent auditor was to be nominated by Hubbl within 30 days of the remedial direction, and Hubbl is required to implement the auditor’s recommendations within six months of receiving the latter’s report.

The Pennsylvania Supreme Court will decide if thousands of so-called skill games found in convenience stores, bars and gas stations across the state are unlicensed gambling machines and therefore must be banned.

The state's Supreme Court announced last week that it will consider an appeal by the attorney general’s office of lower-court decisions that found that machines provided by Banilla Games are based on a player’s ability and not solely on chance, like slot machines or video lottery terminals.

Messages from Vixio left Friday (June 21) with attorney general Michelle Henry’s office were not returned.

The Pennsylvania Lottery and the state’s casino industry oppose skill games. Casinos in Pennsylvania pay up to 54 percent in taxes on slot machine revenue while the estimated 80,000 skill games do not pay any taxes.

The issue of whether to regulate and tax skill-game machines or more expressly prohibit them remains under consideration by state lawmakers in Harrisburg.

Democratic Governor Josh Shapiro has tried to lobby lawmakers to regulate the machines by proposing a 42 percent tax on skill-game operations in his fiscal year 2024-2025 budget proposal released last month.

Currently, Senate Bill 706 and House Bill 2075 have been introduced to regulate and tax skill games, while Senate Bill 969, sponsored by Senator Amanda Cappelletti, a Democrat, would affirmatively ban the machines.

The California Lottery has sent a directive to more than 23,000 retailers warning them that selling to online lottery couriers, which are ticket-ordering websites or mobile apps, is illegal.

In the directive, the California Lottery cautions that any retail partner knowingly engaging in ticket sales to online lottery couriers, their employees, agents, and/or contractors may be subject to the termination of their retailer contract.

Lottery couriers are third-party websites and apps that allow consumers to purchase lottery tickets via an account, with those orders fulfilled via the couriers themselves. 

Many leading courier businesses, including DraftKings-owned Jackpocket, do not currently operate in California, although some smaller couriers do advertise their availability in the state.

As courier services are considered illegal, the California Lottery is prohibited from knowingly paying a prize on any ticket acquired through a digital service, and no retailer bonuses would be paid if the winning ticket was sold online, according to a the one-page directive dated June 18.

“Online lottery ticket courier services are illegal in California,” said California Lottery spokesperson Carolyn Becker.

“We are thankful for the support of our retail partners in helping our customers play safely, rather than exchanging money with a third-party, unregulated business. Any California Lottery player who buys their games through an online courier is not eligible to win.”