Tag: Legislation

Alleged Leader of Western Pa. Gambling Operation Charged

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Pennsylvania’s gambling industry has seen tremendous growth in the past several months, something that has brought more to the local players and improved the overall conditions of gaming. These developments have necessitated the need for more inspection and a monitoring as a means of ensuring that the necessary regulation of the field as well as the prevention of illegal gambling activities. The measures have been quite successful.

The most recent casualty of the anti-illegal gambling measures is Washington County man who was arrested last Thursday for allegedly running an illegal video gambling operation in a total of 33 bars and clubs for between 2006 and 2017. According to the Josh Shapiro, the state Attorney General, during the 11 years in within which the operation was conducted, its owner, 58-year-old Anthony Zenner, accrued over $7 million in illegal profits.

“Today we’ve ended Tony Zenner’s video gambling operation,” the Attorney General said in the press release. “This defendant raked in millions of dollars in illegal proceeds, draining money from Pennsylvanians – and from the Commonwealth of Pennsylvania — over the last decade. These video poker machines – with the lure of the cash payout – are illegal gambling devices. We’ve taken action with the Pennsylvania State Police to shut his enterprise down.”

Mr. Zenner has been charged with dealing in proceeds or illegal activities and gambling devices as well as being part of a corrupt organization. The Attorney General further confirmed that Zenner’s Zenner Vending operation provided no less than 142 illegal gambling devices to restaurants, bars, and clubs in southwest Pennsylvania for nearly a decade.

The investigation into Zenner’s operations began in January 2016 after a review of gambling devices questionnaire that was completed by the owners of clubs and bars where illegal gambling machines were discovered and used to track down the vendors of the illegal gambling devices. This was then followed by the installation of undercover surveillance on the clubs and bars with illegal gambling machines that were provided by Zenner Vending.

Violation of Pennsylvania Gaming Laws

In the press release, Shapiro further mentioned that Zenner Vending made cash payouts to players who won credits on the illegal gaming machines. These cash payouts coupled with the poker machines that are games of chance made Zenner’s operation a violation of the state laws. Zenner’s machines were also found to contain “knock off” devices as well as an internal accounting feature that kept track of every player’s earned credits and winnings. He would also split the profit of his poker machines with the club, bar and restaurant owner usually one a 50-50 basis – it is estimated that his weekly profits summed up to about $14,470.

“Thanks to strong law enforcement collaboration with our partners in the Pennsylvania State Police and the effective use of a Statewide Investigating Grand Jury, this illegal gambling enterprise is over,” Shapiro added.

Three Pa. Casinos Apply for State’s First iGaming License

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Last Friday, after an incredibly long period of pessimistic speculation and uncertainty pertaining to the future of Pennsylvania’s online gambling industry, three casinos finally made the move to forward their applications for the first online gambling license. The casinos, Poconos-based Mt. Air, Parx Casino in Bethlehem and the Stadium Casino that is yet to be built in Philadelphia all hope to offer online gambling services in the near future. This, in essence, sets the ball rolling on the launch of legalized online casino gambling in the Keystone State which in the past couple months seemed to be almost stagnant.

According to Douglas Harbach, the Pennsylvania Gaming Control Board (PGCB) spokesperson, the three casino operators each filed a petition for the $10 million licenses on Friday. The licenses will allow them to offer interactive online gaming in three categories: non-peer-to-peer interactive table games; peer-to-peer interactive games like poker; and interactive games that simulate slot machines.

The license application period for all three categories of internet casino games remains open till Monday, July 16 for all of the Keystone State’s 13 casinos. When this period finally elapses on Monday, the next stage will come into play – the 13 casinos will have a month from July 16 to apply for any of the individual gaming categories for $4 million each. In case there are any more remaining licenses after August 16, the PGCB will then open the application process to the qualified operators who do not have Pennsylvania Casino licenses.

Things Are Looking Up for Mt. Airy

Even though it is the smallest Category 2 casino in the state, Mt. Airy has some pretty huge ambition and plans to boot. The casino took its first step towards conquering the online space in 2014 when it partnered with the 888. Since then both 888 and Mt. Airy have only been able to serve as promotional partners before things took an unexpected but welcome turn in October 2017 when Pennsylvania legalized interactive gaming last year.

Other than 888, Mt. Airy has also partnered with PokerStars – both partnerships will certainly include portions of the revenue from the skins attached to the licensee’s name. In fact, the partnerships will also go a long way in helping Mt. Airy to tap into other markets outside the Keystone State.

Doors Open for Sports Betting License Applications

Another highlight this week for the Pennsylvania gaming industry was a move by the state regulator to finally begin the process of sports-betting licensing. This was announced PGCB officials who clarified that the entities that could apply for the sports betting licenses included device or equipment manufacturers, sports betting system operators and other related service providers.

Even so, the 13 Pennsylvania casinos are yet to forward applications for the sports betting licenses, just like it was the case with online gambling.  This is probably due to the $10 million upfront cost and the accompanying 36 percent state and local tax rate that the sports wagering operators will have to pay in the state. Obviously, a compromise on either side will have to be reached but until then, we will just have to wait and see.

Union Workers Picket in Las Vegas over New Concerns

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It has been a month since the contracts of Las Vegas union employees expired and they have decided the best way to go about the issue is to apply new pressure to casino properties. This begun last Friday when the workers ran picket lines of hundreds of workers on Fremont Street in downtown Las Vegas.

Apart from the issue of better wages, the union workers also wanted the new contracts to address the increased use of robots in gambling establishments as well as the issue of security which has been amplified in the past few months following last year mass shooting at a casino complex.

“We want to make sure we’re not lost to the robots,” Linda Hunt, a food server at the El Cortez Hotel & Casino said. “We want to make sure that they don’t just show up next week — that we have some time to adjust and train for new jobs over the next five years.”

Panic Buttons Coming to Two Las Vegas Casinos

MGM Resorts International and Caesars Entertainment will be joining the increasing number of companies that have begun to provide their employees with panic buttons for use in case of emergency with more emphasis on sexual harassments or abuse. The rollout of the car-remote-sized panic buttons comes amid contract negotiations with the Culinary Union whose members have been vocal about worker protections.

“We are here to do our jobs and provide incredible, world-class customer service for our guests,” Maria Landeros, an MGM Grand housekeeper said in a press release issued by the Culinary Union. “We are not here to be abused or have people think that just because it’s Las Vegas, anything goes.”

“I was carrying a heavy tray full of drinks on the casino floor, and a high roller at the dice game grabbed me by the neck with both of his hands and forced me to kiss him for good luck,” she recounted during the release. “I have permanent nerve damage from that incident and I live in pain every day.”

The use of panic buttons is becoming increasingly common in hotels as a way of giving their employees more assurance of protection. In fact, a number of cities including New York, Washington D.C., Chicago and Seattle have made it mandatory for hotels to provide housekeepers and all other employees who are at a risk of harassment with panic buttons.

The new contract that has been negotiated by the Culinary Union and the Bartender unions includes language that calls for greater security measures for the employees. This includes safety, protection from sexual harassment as well as issues to do with immigration, the use of technology at their workplaces and subcontracting. In addition to all these, the unions also hope to get a share of the anticipated cash flows that the hotels and casinos expect to receive in response to changes made to federal government taxes.

Legalized Sports Betting Finally Coming to the State of Iowa

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Ever since the United States Supreme Court made repealed PASPA in May, a number of states have been grappling with various sports betting legislation. A decent number of the states have been quite successful in launching their own sports betting industries with a few others opting for a rather slow approach as they fine-tune various elements of the regulations that will govern their sports betting ecosystems.

One of the states that are just now beginning to significantly advance its sports betting bids is Iowa. Gambling interests backed by the state’s legislators, the state lottery, and the casinos are gearing up for yet another push for the legalization of sports betting. It is anticipated that statewide sports betting in Iowa could go live by next year thus opening the doors for a number of economic benefits to both the state and the local community through the taxes paid by the operators.

With all the relevant parties having shown great support for sports betting in Iowa, the only thing that remains is for them to decide how best to go about it. Jake Highfill, the Iowa state representative has confirmed that both the Democrat and Republican politicians in the state are “all in” on the legislation.

Legislative Work Continues Behind the Scenes

As mentioned before, the window of introduction of the new legislation has now closed since the state session has been officially closed till January – there will, therefore, be no significant legislative moves till then. Still, when the next legislative session begins, it is likely that the sports betting legislation will move forward in the form of House File 2448, which had already been approved by Iowa’s Ways and Means and House State Government committees.

The biggest setback for the legislation this year was the failure of the Republican majority to reach a consensus, something that denied the Senate the chance to take an action. Fortunately, work on the issue will continue behind the scenes as legislators like Highfill prepare legislation that will be approved by all proponents of sports betting in the state.

Everyone Wants a Piece of the Action

It seems that there is an insanely high amount of interest when it comes to sports betting in Iowa – perhaps the highest in any state. Highfill pointed out that other than casinos, other entities such as the convenience stores, grocery stores, and retail outlets all want to in on sports betting. The state’s retailers want in specifically because they believe that the industry could lead to increased sales in their stores.

As expected, professional sports leagues have not been left far behind – they are still going after the so-called ‘integrity fees’ they have been lobbying for since earlier this year.

The casinos and the state lottery will still have a considerable portion of the sports betting market in Iowa especially considering the fact that a huge chunk of global sports betting is conducted through the lottery. Currently, the Iowa Lottery is currently in charge of games like scratch tickets and Powerball while the Racing and Gaming Commission oversees casino gambling.

Poker Central Rescues Poker Players Alliance and Rebrands It

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The Poker Players Alliance released a statement last Wednesday announcing that the organization had been revived by funding from Poker Central, a company that deals in offering poker new and live event streaming via its PokerGO app. Also, as part of the new arrangement, the Poker Players Alliance has since been rebranded to Poker Alliance, but its goal of advancing poker on behalf of the poker playing community in the United States and around the world remains intact.

Formed in 2005, the Poker Players Alliance began its activities by lobbying against restrictions such as the Unlawful Internet Gaming Enforcement Act in Washington. Unfortunately, prior to being picked up by Poker Central, the group has had a rough couple of months that even included being dropped by PokerStars, one of its earlier corporate backers at the end of 2017. This subsequently led the lobbying group to a bit of a hiatus as donations got scarcer over the years.

New Leadership

The rejuvenated Poker Alliance will take on the activities of its predecessor albeit under new leadership – the new president is Mark Brenner, a “longtime business development and government relations executive.” Still, the group will retain two of its formers presidents, Rich Munny and John Pappas, as members of the Poker Alliance’s advisory board for at least three months.

“I’m very optimistic about Poker Alliance’s potential to bring new innovations and a different skill set to the fight for poker, serving its membership and consumers in general. Along with my fellow advisors to the new leadership, I look forward to advocating for the great game of poker as part of Poker Alliance,” Rich Muny commented while confirming his new role.

It will certainly take some time to develop a definitive direction for the Poker Alliance but for now poker enthusiasts can rest assured that there will be a tight focus on poker. Also, even though the organization is removing the “Players” from its name, it will still very much try to uphold its core values that are supported by most poker players.

“Poker Alliance will be a dedicated voice for the millions of Americans who support expanding the sporting world of poker, in particular, the players seeking to enjoy safe, well-regulated, and fair games in myriad locations and formats. The revamped association will prioritize advocating for consumer protection and states’ rights in the context of poker and internet gaming,” reads the Poker Alliance press release.

Considering Brenner’s neat management and lobbying portfolio, and the experience of John Pappas and Rich Muny as advisory board members, the Poker Alliance is certainly bound to spawn a new era for the poker community.

NY Legislative Session Ends with Online Poker Still in Limbo

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The state and future of online poker in New York was subject to a whole lot of speculation even though 2018 seemed like the best bet for the activity after two years of cautious optimism. However, it turns out that this year was not the safe bet that New Yorkers were hoping for after all.

The New York Assembly ended the legislative session on Wednesday at 11 p.m. thus pulling the plug on the possibility of any online poker or sports betting legislation getting passed this year. This is starting to become a norm and, therefore, in retrospective, this outcome is more of a variation of the same story that the Assembly tells every year – regardless of the fact that a number of changes have been introduced to the process, the end result is always the same.

Was 2018 All About Sports Betting?

Naturally, following the US Supreme Court ruling that repealed the Professional and Amateur Sports Protection Act (PASPA), there was a lot of buzz and hype around the sports betting. As a result, online poker was once again relegated to the sidelines just like it was in 2016 when it was daily fantasy sports that were a big deal – it still is.

Unfortunately, despite the fact that the sports betting proposals stole the show at the state legislature and seemed to have support from both sides, unlike daily fantasy sports lawmakers were not able to reach an eleventh-hour consensus when it came to online poker. Sports betting joins a pile of other unfinished business – including online poker – which will hopefully be finished during the 2019 legislative session.

Still, there is no absolute certainty that the legislation will go as expected in 2019. This year, it was quite evident that the chaos in the legislature, especially the Senate, was starting to get out of hand – it was even worse as the session neared its end. This is probably one of the reasons why the online poker and sports betting bills were not passed even though New York was a favorite to pass at least one of these legislations this year.

What Now?

There is almost absolute certainty that the New York legislature will revisit the sports betting bill come next year. This is mainly because passing on sports betting will undoubtedly put the state at a competitive disadvantage to other states such as Delaware and New Jersey who have already legalized sports betting. Reportedly, the Assembly was just a little less than ten votes shy of a majority and the idea of adding online poker into the mix had been floated around earlier this year.

For the most part, until the 2019 legislative session begins, the leaders have plenty of time to carefully craft legislation that majority of the lawmakers can agree on. For now, we will just have to wait and see the developments that await.

 

New Bill Could Finally Bring Online Gambling to Michigan

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On Tuesday night Michigan lawmakers voted 68-40 for two main bills that are intended to create a Lawful Internet Gaming Act that would responsible for regulating online renditions of the state’s licensed brick-and-mortar casino games. Introduced last year by Rep. Brandt Iden, R-Portage, the legislation, if passed, will see to the establishment of a Division of Internet Gaming within the existing Michigan Gaming Control Board.

This new division will be tasked with issuing internet gaming licenses thus allowing the state’s operational casinos to accept online bets – it will also include sports betting supposing the board decides to legalize statewide sports betting following the recent Supreme Court ruling that paved way for the activity.

All online gambling will be made through the existing land-based casinos that will receive the licenses from the new division, which implies some partnerships are bound to surface as a result. The same will go for the existing tribal casinos that will be working with the state to achieve the new technology.

“People in Michigan are already gambling over the internet, but they are doing so at risky and illegal websites,” Rep. Iden pointed out. “The Michigan websites will have strict state oversight, unlike the illegal and unregulated sites our resident use now, at great risk to their finances and personal information.”

Michigan plans to impose an 8 percent tax rate on online gambling revenue – 35 percent of this tax revenue will go to the Internet Gaming Fund that will be tasked with enforcing the online gambling regulations. The lion’s share of the revenue (55 percent) will go to the city of Detroit which hosts all three of Michigan’s commercial casinos while the remaining 10 percent would be shared equally between the school state aid fund and the Michigan transportation fund.

Tribal Casinos Not Left Out

On condition that their compacts are either recreated or amended, the bill will also allow Michigan’s 23 tribal casinos to offer online gambling. The tribe’s quest for inclusion was among the most pressing concerns and impediments to the bill during the initial stages of its launch. Fortunately, they did get what they wanted thanks to a “poison bill” that would effectively rescind online gambling and sports betting in the state in case the federal government decided to bar the tribal casinos from participating in the new online venture.

The bill still has a long to go though. Michigan residents will have to wait until the Senate session resumes this fall that is the next step towards legal and regulated online gambling in the state.

“When we come back in the fall,” said Iden. “This is going to be at the top of the agenda. Michigan should be at the forefront of that.”

Sports Betting Gets the Green Light in New Jersey

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Finally, after more than eight years of fighting to bring sports betting to the United States, the state of New Jersey has officially been given the green light to begin legalized sports betting. This was done through a bill that was signed by the New Jersey governor Phillip D. Murphy on Monday – the bill specified that the wagering on various sports would begin on Thursday which is perfect timing since the World Cup is also about to kick off.

This makes New Jersey the third state to legalize sports betting and the second to do so after the recent Supreme Court ruling that abolished PASPA.

“Today, we’re finally making the dream of legalized sports betting a reality for New Jersey. I am thrilled to sign Assembly Bill 4111 because it means that our casinos in Atlantic City and our racetracks throughout our state can attract new business and new fans, boosting their own long-term financial prospects,” Governor Murphy said in the statement. “It means that our casinos in Atlantic City and our racetracks throughout our state can attract new business and new fans, boosting their own long-term financial prospects. This is the right move for New Jersey and it will strengthen our economy.”

What Next?

Ideally, the legalization of sports betting was anticipated to be smoother than it is in other states, but, unfortunately, there was a bit of politicizing that presented a major hurdle for the process. As of now, one of the only remaining impediments is the licensing process and the state and its regulators are trying as much as possible to hasten the process so that sport betting operations can go live as soon as possible.

The New Jersey Racing Commission will be handling the process this time around with an initial meeting, presumably to accept and approve license applications from operators, scheduled for Wednesday. If everything goes as planned, then Monmouth Park will be able to begin accepting sports bets as early as Thursday.

What the Law Entails

The bill that was approved unanimously by both chambers of the state’s legislature will allow casinos and racetracks to accept individual wagers immediately. Operators will also be given the opportunity to expand their reach by applying for licenses for online and mobile sports betting – this process will begin in about four weeks.

Punters can place bets on all professional sports and collegiate games that do not involve teams or venues from New Jersey. The sportsbooks are, however, not allowed to take action on high school games, and Esports or competitive video games. Also, as expected, the law did not include the integrity that the professional sports leagues have been lobbying for.

Switzerland Votes to Block Foreign-Based Gambling Operators

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Switzerland’s referendum had two main highlights – first, they voted in favor of allowing the local casino operators to offer online gambling and second, the voted to block the domains of the international gambling operators licensed to operate in the country. The international operators’ only option will then be to secure partnerships with local casinos.

The new Gambling Act which won the support of 72.9 percent of the voters was previously approved last fall but the student wing of the Free Democratic Party moved to challenge it and succeeded by gathering enough petition signatures to force a referendum under Swiss law. Now that it has been passed yet again, the new gambling law will take effect at the beginning of next year.

The Swiss government says that that the law is designed to tackle gambling addiction by enforcing strict rules such as the blocking of known addicts among other things. In addition to providing a solution to the issue of problem gambling, the law is also expected to allow the government to effectively tax gambling revenue which will be channeled towards these anti-gambling measures and initiatives.

The Specifics

According to advance polling, the ‘No’ side appealed mostly to youngsters who feared that the law in many ways provides a precedent that would allow the Swiss government to block other domains it found objectionable.

Older voters, on the other hand, tended to lean towards to the ‘Yes’ side since they believed that allowing foreign or international gambling sites to operate in the country would impede the Swiss government’s ability to fund social programs such as pension funds.

A Win for Local Casinos

The local casinos stand to benefit the most from the new gambling law and they could not wait to celebrate the news of this huge win. Marc Baumann, the chief executive officer of Swiss Casino Group issued a statement shortly after the results of the vote urging the government to put the new gambling law into effect as soon as possible.

Swiss Casinos Group currently runs a free-play online casino and has been planning to venture out and cooperate with a foreign company for a real-money gambling site. So far, so good. This might actually happen.

Will It Work?

Domain-blocking has proven to be rather ineffective in forcing online gamblers to stick to the locally authorized gambling sites. This has been true in other markets including Belgium and as such, Switzerland will have quite a tough time ensuring the law is adhered to. But this does not mean that it cannot be done.

Then, there is the issue of tax. The local gambling operators are looking at between 20 percent and 80 percent in revenue taxes. The president of the Swiss Federation of Casinos, Beat Vonlanthen, however, said that the government will do its best to cushion the tax blow by offering the local casino operators tax breaks of up to 50 percent for the first four years. This grace period will allow the casinos to lure in a sufficient number of steady customers before the ‘un-cushioned’ tax-rate kicks in.

New Jersey Law Proposes a Limit on Esports Betting

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So far, one of the biggest sports and gambling stories of the year has been the United States Supreme Court ruling pertaining to the legality of sports betting. By striking down the Professional and Amateur Sports Protection Act (PASPA), the court paved the way for sports betting in the country.

However, while we now know that states are going to have the final say about whether or not to legalize sports betting, even in states where there is a lot of pro-sports betting discussions Esports betting still lingers in limbo. New Jersey has become the first state to speak out on this issue but, unfortunately, the state’s stance on Esports betting is not very reassuring.

The New Jersey state legislature this week introduced a bill that calls for a ban on betting on professional gaming and Esports events. To put this into perspective, the bill’s synopsis says that the law “allows wagering at casinos and racetracks on certain professional and collegiate sports or athletic events,” but it also defines “all high school sports events, electronic sports, and competitive video games” as “prohibited sports events.”

On the brighter side, this ban will not apply to international Esports events where half of the participants are over 18. Still, these limitations have caused an immediate reaction from some of the proponents of the competitive electronic video gaming field one of the most vocal being Bryce Blum, an Esports attorney. The ESG Law founding partner took to Twitter to share his concerns:

“NJ’s sports betting law excludes ALL esports events unless they are (1) international and (2) more than 50% of players are over 18.

The law treats esports the same as high school sports, which is actually insane. Obvious problem w/ ppl regulating something they don’t understand. pic.twitter.com/WbzcULETph”

 

“This is a perfect example of why I fear any form of regulation surrounding esports.

Here are the bill’s sponsors – do they look like esports experts to you?

You cannot effectively regulate what you don’t understand. This could be just the tip of the iceberg. pic.twitter.com/rL8O0qvXm7”

Esports  Betting Was Just in the Line of Fire

Apparently, the bill was not specifically meant to target Esports and thus there is a certainty that the topic will be discussed and analyzed explicitly in the coming weeks in order to clear things out. One of the major concerns emanates from the fact that bettors are allowed to bet on overseas events such as League of Legends European LCS, but are prohibited from betting on the outcomes of local Counter-Striker tournaments.

Being at its earlier stages, the bill’s wording is certainly still very vague and its full implications are yet to be fully thought through. As such, with the apparent localization of the bill’s effect and its vague nature, it remains to be seen how exactly it will change the Esports status quo both in New Jersey and the United States as a whole.