Tag: Regulations

PA to Permit Online Gaming Licensees to Host Multiple Skins

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The Pennsylvania Gaming Control Board (PGCB) published its most recent rules and regulations that govern is imminent online gaming licenses. The new rules and regulations will allow the state’s online gambling licensee to host multiple ‘skins.’ This means that non-Pennsylvanian companies will have the opportunity to participate in the state’s lucrative online gambling market. However, the licensees will be forced to piggyback the skins on their casino domains.

The contentious question about skins or the ability of a casino to host affiliate operators has been looming of the board for quite some time and now that it has been addressed operators can start preparing. In essence, it emulates New Jersey’s approach where one casino is allowed to partner with and offer services from other operators.

In Pennsylvania, the lobbyist efforts on the issue of skins have proven to be very fierce with online operators such as 888 Holdings advocating for it and Parx Casino and Penn International arguing that no third-party sites should be allowed. 888 Holdings has successfully implemented a model of such kind in New Jersey where it has piggybacked its local casino license to favour its partnership with Caesars Entertainment.

Ultimately, the PGCB opted not to restrict its online market and instead decided to permit its interactive gaming certificate holders to partner “with multiple licensed interactive gaming operators to offer interactive games the Board has authorized the interactive gaming certificate holder to conduct.”

The PGCB further clarified that it was not going to restrain third-party operators from inking deals with more than one Pennsylvania gaming certificate holders. However, this is on condition that the third-party companies will no offer online gambling to the Pennsylvanian market “independent from an interactive gaming certificate holder and the interactive gaming certificate holder’s webpage or the webpage of an entity within the interactive gaming certificate holder’s organizational structure.”

On the same note, the licenses or any of their partners “may only offer interactive gaming in this Commonwealth through the interactive gaming certificate holder’s webpage or the webpage of an entity within the interactive gaming certificate holder’s organizational structure.”

The mentioned clauses clearly indicate the fact that third-party operators will have to piggyback on the domain names of the license holders. Fair enough. The board will begin accepting interactive gaming applications from the state’s existing brick-and-mortar casinos later this month.

RBI Bans Regulated Entities from Dealing in Cryptocurrencies

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Even though it is currently exploring the creation of its own cryptocurrency, India’s central bank on April 5 escalated a crackdown on existing digital currencies like bitcoin. In an official statement released by the Reserve Bank of India, it was directed that all regulated entities, including banks, should stop providing services to individuals or even businesses that are users, holders and traders of cryptocurrencies.

Meanwhile, the central bank has set up a panel that will be tasked with studying the feasibility and the desirability of introducing a fiat digital currency. The Reserve Bank of India (RBI) confirmed in a statement on Thursday that the panel will be expected to submit a report by the end of June this year.

“It has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling virtual currencies,” the RBI said. “Regulated entities which already provide such services shall exit the relationship within a specified time. A circular in this regard is being issued separately.”

As far as the specified time frame is concerned, the RBI gave the regulated entities three months to unwind their positions with the crypto-related entities. This move comes after over three warnings that were issued to the public in regards to the risks of dealing with decentralized digital currencies. It also follows in the footsteps of several other governments around the world that have been strengthening scrutiny of the virtual currencies. In fact, by its own admission, the RBI affirmed that this move is geared towards protecting the regulated entities form the risks associated with digital currencies.

“Virtual Currencies (VCs), also variously referred to as cryptocurrencies and crypto assets, raise concerns of consumer protection, market integrity and money laundering, among others… In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs,” the RBI said in an April 5 statement.

Possible Introduction of a Fiat Digital Currency

The new RBI regulations certainly have rather significant implications for the crypto market in India. However, the central bank is taking steps that will maintain or draw from certain aspects of the crypto-ecosystem. The underlying blockchain technology, for instance, is quite promising and the RBI acknowledges this fact – the bank will be investigating ways of exploiting the blockchain technology in order to achieve financial inclusion and enhance the efficiency of the country’s financial system.

Also, as mentioned earlier, the RBI is exploring the concept of a fiat digital currency that will be issued by the bank and thus will be considered to be its liability. The new currency will in circulation alongside the tradition paper currency – if it succeeds it also holds the promise if reducing the costs of printing the paper currencies.

Online Poker Excluded from New York State Budget Again

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Internet gambling has once again been excluded from the New York state budget despite having passed the Senate vote in January for the third straight year. Therefore,   and they will have to continue driving off-state to get in on some poker fun.

While the New York Senate has from time to time shown some love for the poker community in recent years, it is no secret why all the online poker bills never seem to get far in New York. The bill has been passed by the Senate a number of times but it cannot become a law until the Assembly and the governor give their approvals. The Assembly, for one, has shown very little support for online gambling and even refuses to vote on it.

Land-based casinos in New York have been struggling financially for a while now and it was anticipated that they would borrow a leaf from the neighbouring Atlantic City where online gambling has helped to the revenues of their struggling casinos. Apparently, the state is not interested in boosting land-based casino revenues.

New York hosts four non-tribal casinos all of which are in dire need of financial aid. The $440 million Seneca County-based Del Lago Resort Casino, for instance, has been asking the state to bail it out of its huge debts. The casino expected revenues of up to $263 million during its first year of operation – it, however, fell short of the revenue projections by a staggering $100 million.

“This casino developer pushed to have a New York casino for years, including on the Syracuse state fairgrounds,” state Sen. John DeFrancisco said. “So he knew exactly what he was getting into. If he’s losing money, that’s his problem to fix, not the taxpayers.”

This certainly proves that the state’s struggling brick and mortar casinos are not going to benefit from revenue boost from online gaming anytime soon.

Banking on Sports Betting?

 

Should the United States Supreme Court abolish the Professional and Amateur Sports Protection Act of 1992 (PASPA), each state will be able to license sportsbooks within its borders. New York, like many other states, is considering supporting wagering on professional sports in case the Supreme Court rules in favour of sports bettors.

UK Gambling Commission Unveils Plans for Intensified Checks

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UK’s Gambling Commission has unveiled plans to make online gambling “safer than ever before”. This follows on from details that the commission revealed last week as part of the advice that it submitted to the UK government’s review of gambling.

So far, the Remote Gambling Association (RGA) has confirmed that it would work constructively with the Gambling Commission once its finals become known. The online gambling review that the commission released last week included details of its consultative efforts on proposals for age verification checks for players. This regulation will apply even to dem0 games.

Even though the fixed-odds betting terminals (FOBTs) that are operating in the UK will probably be the most affected by the forthcoming government crackdown on gambling, online gambling operators are not completely clear of the line of fire.

Other than banning the operators from offering free-to-play demo games until customer age has been verified, the commission also proposed that the speed and effectiveness of age verification processes should be improved. On the same note, operators will be forced to set limits on consumer spending until affordability checks are carried out. The commission further made it clear that it would deal with unacceptable marketing while at the same time tightening the requirements for operator interaction with customers that are more susceptible to harm.

“Britain has the largest regulated online gambling market in the world and we are continually looking for ways to make it even fairer and safer for consumers,” commented Neil McArthur, the Gambling Commission’s chief executive. “The proposals we have announced today are intended to protect children better, reduce the risks to vulnerable consumers and build on the measures we already impose on operators to know their customers and intervene at an earlier stage before consumers experience harm.”

Ensuring Safety and Sustainability in the Gambling Industry

The UK government, through sport and civil society minister Tracy Crouch, says that it is committed to providing a safe and sustainable gambling industry. Crouch also mentioned that the proposals for additional regulations would go a long way in strengthening the controls that are already in place while at the same time ensuring that children and vulnerable people are protected from the risks of online gambling.

The Remote Gambling Commission (RGA) has already laid the groundwork for the desired UK gambling industry through such efforts as advertising restrictions, the introduction of a national online self-exclusion system as well as advocating for the introduction of a new and independent statutory social responsibility levy.

Kansas Sports Betting Bill Calls for Integrity Fee

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Professional sports leagues might just get what they want after all with the introduction of a sports betting bill in the state of Kansas that called for the inclusion of an integrity fee. The bill which was brought forward by the Committee on Federal and State Affairs of Kansas is the third sports betting-related bill to be introduced in the state.

Introduced on March 22, the bill will allow the Kansas Lottery to sports betting to players over the age of 21. This will be limited to the lottery’s facilities and will be through contracted lottery retailers, its web platform and mobile platforms as well as through an interactive and dedicated sports betting platform. This still depends on how the United States Supreme Court will rule on the petition regarding the federal ban on betting.

S.B. 455, the bill, gives the Gaming Commission the final say on the types of wagers and game restrictions. Kansas lawmakers, however, will be expecting no less than a 6.75 percent cut from the sports betting operators. They went further to take note of sports betting legislative developments in New York and have thus decided to include the pro sports leagues’ integrity fee as one of the requirements of the bill. The sports betting right and integrity fee was set at 0.25 percent of the handle but the lawmakers capped it at 5 percent of the sports betting revenue.

“All revenues from sports wagering conducted by the Kansas lottery shall be remitted to the state treasurer and deposited in the lottery operating fund in according with K.S.A 7408711, and amendments thereto,” one of the S.B. 455 provisions read.

While many gambling operators are eagerly waiting for the Supreme Court ruling, a number of stakeholders and interested parties are anticipating that the federal ban on sports betting will be lifted. The professional sports leagues are by far the most vocal – the Major League Baseball (MLB) and the National Basketball Association (NBA) have been lobbying for the inclusion of an integrity fee in state sports betting regulations. According to the leagues, this fee will serve as an insurance to the “risks”  that sports betting will bring to their brands.

March Madness Elevates Focus on Sports Betting in the U.S

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The 2018 NCAA Men’s Basketball Tournament, commonly referred to as “March Madness”, kicked off last week with 68 teams going against each other in a single-elimination tournament that is stretched over three weeks and will culminate in the crowning of 2018’s NCAA champion. As usual, this means brackets, office pools and, of course, lots of betting – both legal and illegal. In fact, according to the American Gaming Association, $10 billion will be wagered during the three-week tournament with most of it being illegal since sports betting is not yet legal in most of the United States.

March Madness has also been one of the annual events that attract extra attention towards the need for the legalization of sports betting in the United States – the numbers are so good that states want a piece of the pool so that they can tax it. Experts consider illegal gambling to be untapped revenue that the states are missing out on.

Fortunately, this year the context of the efforts to legalize sports betting has shifted thanks to a petition filed by the state of New Jersey seeking for the legalization of nation-wide sports betting. The final ruling is to be delivered by the United States Supreme Court and this could be as soon as April.

Over a dozen states, West Virginia and New York included, have proposed laws to legalize sports betting and the only obstacle to the new development is the 1992 law that confines sports betting mostly to Nevada. Keeping this in mind, the American Gaming Association issued its annual estimate regarding March Madness betting where it arrived at the $10 billion estimate. Of this entire amount, only $300 million or thereabouts is expected to come from legal sports betting in Nevada sports books. Evidently, the U.S. Supreme Court’s ruling will play a pivotal role in creating a revolutionized gambling atmosphere for all the interested parties. Luckily for everyone, the wait is almost over.

Rivalry.gg Joins Esports Integrity Coalition (ESIC)

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Dedicated Esports betting operator Rivalry.gg has signed a Memorandum of Understanding with the Esports Integrity Coalition (ESIC) to become the coalition’s latest member with the goal of ‘supporting the application of best practice across the Esports betting industry’. Rivalry.gg which is a fairly new entrant into the Esports betting business is licensed in the Isle of Man and it will be joining a host of other outstanding ESIC members that include DreamHack, Betway, Sportradar, LVP, ESL, Intel, LVP and UKGC among many others.

The Esports Integrity Coalition (ESIC) was formed in July 2016 so as to clamp down on all forms of cheating in the professional Esports market. ESIC is currently considered to be one of the most reputable Esports regulatory authorities in the world especially due to its unambiguous endeavour to create an unequivocal Esports playing field for all the members of the Esports community.

“ESIC is pleased to welcome another specialist Esports betting operator into membership to extend our suspicious bet alert network and help us detect possible match-fixing as it happens and having a legitimate, licensed operator that supports Esports integrity and our vital education program helps lessen the influence of dodgy operators and betting fraudsters,” noted Ian Smith, the Integrity Commissioner at ESIC.

Rivalry.gg, being quite young in the industry has employed a steady approach towards a conquering the Esports market – they are focusing on original content and pre-match betting at the moment. But, there is definitely so much more to come.

“This is just the beginning for us. Next steps are implementing the minimum requisite of features from a traditional sportsbook perspective, such as live betting, followed by a much deeper offering. We spent the better part of 2017 curating and testing various bespoke feature sets that we believe the community will love and can’t wait to share them with everyone,” Rivalry Co-Founder, Steven Salz confirmed.

Salz also pointed out that while they just recently rolled their service offering, they have been members of the community long enough to notice that members of the Esports market were being frustrated by underage and unregulated betting that was growing rapidly with little to no intervention. He believes that this was partly due to the lack of viable alternatives for gamers as well as the lack of education on the importance of regulation in online gambling. As an ESIC member, Rivalry will be supporting the coalition’s goals by reporting any and all suspicious online betting activity.

“At Rivalry our foremost effort is to provide Esports enthusiasts with a legal, and safe way to bet on competitive play in the games they eat, breathe, and sleep. Our participation in ESIC is a cornerstone piece of this effort. Having a legitimate, licensed operator that supports Esports integrity and our vital education program helps lessen the influence of dodgy operators and betting fraudsters,” Salz added.

Russia’s New Online Gambling Laws Raises Stars Group Concern

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As part of 2017’s earnings reports, renowned gambling operator Stars Group pointed out that the Russian gambling market would be a potentially troublesome one in 2018. The earnings report also included what the online gambling operator is expecting to make this year with the figures further including assumptions that Russia would be introducing and implementing new online gambling rules that will essentially make it harder to process payments for Russian players.

There has been no official explanation from Russian officials in regards to the implementation of the new law that is likely to be enforced as from May 25. However, it is expected that the regulations will restrict banks from partnering with foreign payment processors or gambling operators that have been blacklisted by the Russian government.

While the new atmosphere will certainly not kill the Russian online gambling market, it undoubtedly has the potential of clamping down on the size of the gambling industry in the country. This is we put into consideration a similar scenario in the United States where the online gambling industry was clamped down after the Unlawful Internet Gambling Enforcement Act (UIGEA) was passed back in 2006. In the likely case that this occurs, the Stars Group will take quite a hit especially because the Russian online gambling market accounts for a huge chunk of its global market.

Stars Group Working on Contingencies

The effects of the changes that the Russian government is going to make is off-putting for investors but Stars Group is not giving up so easily. Rafi Ashkenazi, the Stars Group CEO said that he and his team are already working on contingencies that will help the company to deal with anything that the Russian government throws at them.

“We have plan As and plan Bs and plan Cs for every type of scenario that may happen in the market,” Ashkenazi told analysts. “We are monitoring, we are assessing, and we are ready.”

The concerns that were raised about the Russian gambling market were shared as part of an overall earnings reports which showed a steady 2017 for Stars Group – this encompassed both PokerStars as well as the group’s other online gambling sites. Total annual revenue went up 13.6 percent for fiscal 2017, summing up to over $1.3 billion. The same goes for other earnings as well – the net earnings rose by over 25 percent within the same period.

Dafabet Closes UK-Facing Online Casino amid Regulatory Heat

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Renowned online gambling operator Dafabet has recently announced that it will be exiting the United Kingdom’s online gambling market, a move that is speculated to have been triggered by the ongoing regulatory pressure within that particular field.

Dafabet’s United Kingdom-facing online casino stopped accepting deposits from its customers last week on March 8. The players now have up to Tuesday, March 20, to withdraw their funds from the online betting site. Fortunately for the operator’s customers, their player balances will be automatically returned through the deposit methods they used to register if the will not have made withdrawals by the specified withdrawal deadline. Also, sports betting fans have nothing to worry about as Dafabet also assure their users that the sports betting operations will not be affected by the closure of their casino business.

As it stands, Dafabet is the most popular and the biggest brand of Philippine-based AsianBGE, its parent company. Its operation in the United Kingdom is backed by a license from the UK Gambling Commission but this is not the only place it excels at – the operator also sponsors Premier League’s Burnley F.C. Dafabet signed a £2.5-million sponsorship deal with the football club for the 2017-2018 football season which represents a £0.5 million increase from the previous soccer season.

UK’s Prevailing Storm Regulatory Atmosphere

The UK Gambling Commission recently discovered multiple violations by a number of its licensees and now, in conjunction with the Competition and Markets Authority (CMA), it has begun a regulatory crackdown that targets the erring operators as well as their affiliate partners.

The nature of the violations that the UK Gambling Commission range from breaches of advertising codes to inadequate anti-money laundering controls among a few others. The CMA has taken action with the most recent being in the form of a written warning that was addressed to a number of online gambling operators. The writing specifically pointed out the terms and practices that the operators have put in place to obstruct their customers from accessing their funds. These included the unreasonably low withdrawal limits, the short deadlines for players to verify their identities in order to be allowed to withdraw their funds as well as the so-called “dormancy” terms that allow the operators to confiscate customer funds after a given period of time when the customer accounts have had no activity.

The UK Gambling Commission will be working with other regulators in changing the rules and ensuring that both new and existing operators are probed more stringently to ascertain that they truly are capable of fully complying with all the laid out regulatory laws, terms and conditions.

German FA President Opposes Induction of Esports As Sports

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According to Reinhard Grindel, the President of Germany’s Football Association (DFB), Esports is not a sports activity thus the induction of competitive gaming into the Olympics is bizarrely absurd. This was on Sunday 4th March 2018 when the members of Germany’s social democratic party opened the way for joining the country’s government as a junior partner in a grand coalition under Chancellor Angela Merkel. This new development came with more certainty that Esports could soon be recognized as sports in accordance with guidelines set out by the coalition governments.

As it stands, Esports has amassed over 250 million players from all around the globe which makes for a steadily growing market that currently rakes in more than a billion dollars every year. This is more than what a decent number of traditional Olympic sports federation can manage, even when combined. However, despite the heavy lobbying that was required to have Esports acknowledged as real sports as well as increasing amount of support that it has been amassing, there are many critical opposing voices that are still not convinced. Thus, apparently, the debate about whether Esports should be considered as “real sports” is not even close to coming to an end.

“The biggest competition to kids coming to our sports club is not handball or basketball, but the use of digital equipment. That is absolute impoverishment,” Grindel said, as reported by Reuters. “Sport plays a social function and this happens in the community. With sport, you have direct contact with those you play. Soccer is home to the green turf and has nothing to do with other, computer generated things. For me, Esports is not sports.”

Furthermore, the Grindel pointed out that he his opinion on the increasing amount that children and young adults spent on mobile devices to be “eine absolute Verarmung,” which can roughly be translated to “a total degeneration.”

There are, obviously, underlying interests on both sides of these debates and this makes it more complex than what people think is happening on the surface. Esports is inherently a for-profit industry and this is especially true for the industry players that have been backing it. The people on the opposing side, like Grendel, are also fighting to protect their market shares. Unfortunately, Esports is catching up quite quickly.

In November 2017, the International Olympic Committee would only consider having Esports as a component of the Olympics if Esports did not “infringe on the Olympic values.” This means that Esports games that feature explosions, violence and killing had to be ruled out.