Worldwide Regulatory Updates in the Gambling Industry for February 2020

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February 28th, 2020
Back Worldwide Regulatory Updates in the Gambling Industry for February 2020

Coronavirus has been the hottest topic globe-wide, and the gambling industry felt the consequences as well. Our monthly recap will address the news from that region primarily, alongside providing information on regulatory modifications from all over the world.

Find out more about the progress of legalizing online, mobile and sports betting across the United States of America. Moreover, there will be the newest updates from Europe and Africa, so keep reading.

Asia Struggles with Coronavirus

Asia is greatly affected by this dangerous virus, and the gambling industry is not an exception to this. With the imposed entry ban, people are prevented from visiting entertainment establishments.

The Macau government has announced…

…that all 41 casinos must be shut for at least two weeks to prevent the further spread of the Coronavirus. Despite the suggested possibility to extend the closure for months if the situation worsens, they decided to put facilities into operation, perhaps to prevent profit loss.

According to local news sources, some casinos in South Korea have reportedly banned the entry of Chinese tour groups to prevent the spread of the virus. Kangwon Land’s temporary closure is expected to account for losses amounting to $9m.

The Government of Singapore would grant the countries two (2) integrated resort casinos a tax rebate of 10% in 2020 in response to the reduction in international visitation as a result of the virus.

Meanwhile in Japan…

… Osaka has confirmed that MGM, in partnership with Japanese financial services firm Orix Corporation, was the only consortium to apply to build an integrated resort in the prefecture, by the 14 February deadline.

Other operators had originally expressed interest, but have now focused on other areas. Yokohama is currently the most sought-after IR location in terms of interest from potential gaming partners. The municipal government of Yokohama will establish an advisory committee on the selection of an IR operator.

As for India…

…The Punjab government decided to ban all forms of online lottery, both from Indian and foreign lottery sellers in the state. The ban is intended to restrain the sale of illegal lotteries and boost the state revenues from its lottery sales.

New legislation proposed in the Senate would levy a 30 percent tax on income on offshore online gaming operators licensed in the Philippines. In a move to fight against illegal gambling, the Chinese government is reportedly going to cancel the passports for Chinese citizens working for Philippine Offshore Gaming Operators.

News from the United States of America

Alabama’s Governor Kay Ivey has created a working group to assess the impact of gambling in the state. Meanwhile, elements of the House are pushing to settle the state’s lottery and gambling issues.

Alaskan Governor Mike Dunleavy has drafted…

…and presented legislation that would create a state-run lottery organization. Alaska is just one of five states that currently has no form of the state lottery. SB 188 would authorize the launch of lottery draws and scratch cards, as well as inclusion into certain multi-state lotteries. The proposal also includes a provision that would approve sports wagering.

Senator Sonny Borrelli and Representative Steve Pierce have drafted a new senate bill to certify sports wagering in Arizona. SB-1525 is similar to senate bill SB-1158 that failed to progress last year and would authorize only Indian tribes to operate sports betting on premises that hold alcohol or private club license.

In Colorado, Saratoga Casino Black Hawk has announced a partnership with Betfred USA Sports to launch a retail and online sportsbook. The Gaming Commission awarded seven (7) sports betting licenses to casinos in the state and gave its final approval to the regulations to govern the activity.

Senator Cathy Osten…

… introduced legislation to authorize the Mohegan and Mashantucket Pequot to operate retail and mobile sports betting as well as online casino gaming in Connecticut. Representative Joseph Gresko introduced HB 5168 to approve retail and online sports betting in the state.

Florida lawmakers have resubmitted a bill that would feature a warning on lottery tickets, as well as prohibit the use of electronic devices to play lottery games. HB 991 has been voted through the House Gaming Control Subcommittee by 14 votes for to 1 vote against.

Betfred USA Sports launched a full sportsbook at Iowa’s Grand Falls Casino and Gold Resort, along with a mobile and internet offering. Draft Kings launched its mobile sports betting platform on 20 February 2020 in partnership with Wild Rose Casinos.

Governor Andy Beshear announced his support for approval of sports wagering in Kentucky and called on state legislators to pass HB 137 to authorize and regulate the activity. The Governor also reiterated that the bill, as well as any other expansion of gambling in the state, would not require a constitutional amendment to take effect.

The House voted…

…to override the Governor’s veto on sports betting in Maine by 85-57, but this was 10 votes short of the two-thirds majority needed. Tribal representatives have proposed changes to the 1980 Maine Indian Claims Settlement Act. At the moment, gaming is restricted to two commercial casinos, with no tribal gaming.

The Senate in Maryland gave its approval to a constitutional amendment that would ask voters to decide whether to exempt gambling expansion proposals from requiring majority approval in future statewide referendums. The bill progressed to the House for consideration.

Legislation to classify unregulated ‘skill-based’ gaming machines…

…in Missouri as gambling devices were immediately shelved on introduction to the Senate. Legislators rejected the initial proposal and stated their intention to amend the bill to approve the machines and direct the Gaming Commission to develop regulations to govern the activity and license operators.

The state legislature has held a hearing for three different gambling bills in Nebraska. LR 295CA seeks to amend the constitution to certify gambling throughout the state, LB 971 would redefine the state lottery to include sports betting, while LB 990 would legalize all ‘games of skill’ including sports betting.

Assemblyman Ralph Caputo…

…has introduced legislation to expand certified sports wagering in New Jersey to include skill-based competitions such as eSports. Monmouth Park operator Darby Development signed a 10-year deal with BetMakers to offer fixed-odds betting on its horse races, further expecting to launch the new system in time for the start of 2020 meet on 2 May 2020.

The New York Supreme Court upheld a 2018 ruling that found Daily Fantasy Sports games are illegal under state law and require a constitutional amendment to be authorized.

Betfred has partnered with Wind Creek Casino & Resort Bethlehem…

…to operate a retail sportsbook at the property, as well as online and mobile betting across the state of Pennsylvania. The same operator has selected Scientific Games to provide full retail and online betting solutions in support of its partnership with the Wind Creek Casino.

IGT and Twin River Worldwide Holdings have announced the creation of a new company to supply video lottery terminals, including slot machines, to Rhode Island. IGT will have a 60% controlling interest in the new company, with Twin River holding 40%.

Representative Mark Sickles…

…introduced legislation to authorize and regulate online sports wagering in Virginia. The bill, HB 896, would allow for a maximum of 10 licenses which would permit operators to take wagers on professional sports. The House of Delegates has approved HB 374 (a re-enactment of the Senate Bill SB 1126 that was passed last year) that that would allow venues in five cities, while it has passed many Senate committees. Virginia is one of only 10 states without a casino.

Legislation to approve sports betting…

…at tribal casinos in Washington were introduced to both the House and Senate. The House of Representatives has voted through bill HB 2638, allowing sports betting in the state’s 34 tribal casinos, as well as mobile betting within the properties under the terms of their current gaming compacts.

BetMGM has launched its sports betting app in partnership with The Greenbrier resort and casino. It is the third online sportsbook in West Virginia, along with FanDuel and DraftKings, both of which launched in August 2019.

Updates from the Rest of the World

The Regional Council of Darmstadt began the temporary licensing process for online sports betting operators wishing to target the market in the interim period before the implementation of the new Interstate Treaty scheduled for 30 June 2021.

The state of Hesse has received 11 applications for sports betting licenses…

…with a further 7 operators making binding commitments to make submissions. Legislators from Schleswig-Holstein announced that the 16 landers had agreed, in principle, to authorize online casino games and poker under the new Interstate Treaty.

Lower Saxony’s Minister of the Interior and Sports, Boris Pistorius, has issued a letter to the German banking industry warning banks against processing payments for unlicensed gambling websites and saying further payment blocking orders may come soon.

Members of the German operator body DSWV…

…have recommended that federal states remove the need for sports betting licensees to shut down their casino businesses so that customers are not forced to seek black market alternatives.

Lithuanian Government passed legislation to include mandatory warnings about gambling-related harm on all gambling advertisements from 1 July 2020.

The Netherlands The Raad van State (Council of State) ruled that written text promoting online gambling was illegal under the current prohibition on advertising.

As part of the draft Royal Decree…

…which also includes restrictions on bonusing and the launch of a self-exclusion program in Spain that will allow problem gamblers to block themselves from accessing sources of credit and short-term loans. Advertising around live sports broadcasts will be permitted for events that kick-off between 8 pm and 5 am, but must not make any reference to promotions, contain direct inducements to bet, and contain no live odds.

At a House of Lords’ Select Committee on the Social and Economic Impact of the Gambling Industry, several leading bookmakers in the UK said that they would consider a voluntary ban on gambling sponsorship on sports shirts and perimeter advertising boards.

Source:

"H2 Gambling Capital updates for January", February 2020.

“regulatory modifications from all over the world”

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