Tag: Regulations

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.

John McAfee Fires Shots at the RBI over Cryptocurrency Ban

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Renowned cybersecurity pioneer John McAfee has recently called for a boycott of the Reserve Bank of India (RBI) and the financial institutions dealing with it over a recent decision by the central bank that forces banks to cease and desist from dealing with cryptocurrency traders.

The move by the RBI has created a lot of chaos and panic especially because of India’s technology ecosystem that has been riding the cryptocurrency wave for quite some time now. Most of the reactions have cited concerns pertaining to how the country’s rapid movement towards development will be hindered from here on out.

It is important to note that the ban is not an all-inclusive decree that Indian cryptocurrency investors will be in violation of the law for dealing in crypto. In fact, there are many other options that digital currency traders can users and they include crypto-to-crypto, peer-to-peer, offshore exchanges as well as international bank accounts. As such, while the decree that financial institutions should stop offering services to crypto investors is indeed a setback, it does not mean that it will be the end of all cryptocurrency trading in India.

The Indian media is culpable for the panic, fear, uncertainty, and doubt that is now rife in the country – as expected, they erroneously reported that the RBI had imposed a country-wide ban on cryptocurrency trading among investors.

McAfee Is Not Amused

On July 6, John McAfee posted an intriguing tweet that fired off at the Reserve Bank of India and urged all financial institutions to dissociate themselves with the central bank. He further warned that he would call for a boycott against the financial institutions that steal deal with the RBI.

“The Reserve Bank of India (RBI) initiated this atrocity out of fear and won through the existing centralized power structure. I’m calling for a boycott of any financial institution that does business with RBI. We must stand together and act,” read McAfee’s tweet.

In his tweet which comes in the wake of the recent verdict by the Indian Supreme Court to uphold the RBI crypto ban, McAfee spoke out against these developments. Knowing McAfee, he will remain at the forefront of these protests, at least until the ban is either lifted or a reasonable consensus is reached.

From the looks of things, there are many ways this could play out but it will all depend on how both sides of the divide will play their cards. Recent reports revealed that prior to the ban, the RBI did not carefully and explicitly review the pro and cons of cryptocurrencies in the country. Already, the central bank’s officials have begun reviewing a draft that focuses on cryptocurrencies and associated regulations that would be required to ensure its survival. The said draft was prepared by the Secretary of the Department of Economic Affairs, Subhash Chandra Garg. Maybe there is still hope for crypto in India after all.

Indian Supreme Court Upholds RBI’s Cryptocurrency Ban

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On April 5, India’ central bank, the Reserve Bank of India (RBI) issued a circular that was addressed to all regulated financial institutions including banks prohibiting them from offering their services to crypto-related business. The policy further mandated the financial institutions to stop allowing their own retail clients from purchasing cryptocurrencies through their banking accounts. A three-month deadline was set for the policy and therefore the ban should effectively take effect as from Thursday, July 5.

As expected, the move by the RBI to ban cryptocurrencies has caused quite a stir across India’s nascent but rapidly growing cryptocurrency community with a number of crypto exchanges opting to take up the issue through the courts. The Supreme Court just happens to be one of the many courts where petitions challenging the ban were filed – most of the petitions cited the RBI’s policies as being “arbitrary, unfair and unconstitutional.”

The move was led by the Internet and Mobile Association of India which counts cryptocurrency exchanges as its members. The organization fast-tracked the legal challenge against the RBI ban and they finally got to be heard on the morning of June 3.

Unfortunately, the Indian Supreme Court led by Chief Justice Dipak Misra chose to side with the arguments of the RBI and therefore the cryptocurrency ban is still in effect and so is the July 5 deadline.

“This a win for the RBI and a big blow to virtual currency exchanges and traders. In our earlier request to the RBI as well, we had asked it to extend the deadline by a month after the July 20 hearing. However, now that the ban will continue, the banking route for the exchanges and its users will be completely choked,” said Rashmi Deshpande, an associate from legal firm Khaitan & Co who are involved in the petition.

Is This the End for Crypto Exchanges in India?

If you have been following the crypto industry in India, you may have noticed that it is quite likely that this might truly be the end of cryptocurrency exchanges in the country. There is all talk of total control of crypto being eventually handed to the RBI, something that, if goes through, will lead to the digital currencies being declared as completely illegal assets.

Furthermore, some top government officials have hinted at a number of regulatory or legal developments that are currently in the works and have the potential of turning everything around.

“We have prepared a draft (on virtual currencies) that entails what parts of this businesses should be banned and what should be preserved. This should be discussed by the first week of July and we should wrap this up within in the first fortnight of July,” Subnash Chandra Garg, the Secretary of the Department of Economic Affairs said.

While we cannot be certain about what the future truly holds for crypto, the Supreme Court’s decision is most certainly bad news for the Indian crypto market especially considering how deep-rooted blockchain technology is in India.

UK Gambling Commission Expands Child Protection Plans

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The UK Gambling Commission has laid out plans to better protect children and young people from the risks of being exposed to online gambling. There is already some work underway in this area, but the commission hopes to build on the existing regulations and measures so as to ensure they are as effective as possible.

The commission employed advice from expert advisers with regards to the critical themes of children, young people, and gambling. It further brought together all the existing work in this area while acting on advice from the Responsible Gambling Strategy Board (RGSB) and this resulted in a strengthened focus on the implementation of the right protections in order to effectively reduce the risk of harm to children and young people.

In addition to this, the gambling regulator has asked all parties that are responsible for safeguarding children to corporate with them as they try to address some of the critical issues that were identified by the RGSB. This will help in laying out feasible action plans for preventive education and treatment, handling digital and online risks, evidence collection and consumer engagement as well as preventing access and exposure to gambling services.

“We have a strong commitment to protecting children and young people from the harm gambling can pose – it’s at the heart of how we regulate. We asked our expert advisers, the Responsible Gambling Strategy Board, to consider this critical theme. The advice helps us to refocus and reinforce what we are doing already, and what we need to do next. For example, this year we will be carrying out targeted compliance and enforcement activity to identify and tackle any weaknesses in the age verification processes,” Tim Miller, the executive director of the UK Gambling Commission said.

“Safeguarding children in a digital age is complex, and what both RGSB and our research has highlighted is that it takes a multi-faceted approach by us, government, educators, gambling firms and parents. It will take firm ongoing commitments from the Commission as gambling regulator, but also from all of those with a part to play,” he added.

Worrying Statistics

The Responsible Gambling Strategy Board (RGSB) recently conducted a study that revealed that 31,000 children are classable as problem gamblers and 45,000 more are at a risk of becoming the same. The study also found that 91 percent of the 11-15 years old children who had recently gambled had seen gambling adverts on social media platforms or on TV – 2 percent of these children said that the adverts had either increased their gambling rates or prompted them to try it out.

“Ideally, children and young people should not be exposed to marketing and advertising for gambling at all, let alone in the quantities now prevalent,” the report stated. “The potential longer-term effects of what has been a relatively recent phenomenon are unknown. There is good reason to think they might be harmful.”

South Korea Advances Its Cryptocurrency Regulations Further

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South Korea has been at the forefront of the crypto industry since the investor boom and cryptocurrency frenzy of 2017 and since then, the country has seen a number of gradual and significant changes in the way cryptocurrencies are perceived within its borders. Just recently, the country’s authorities announced that it was lifting the blanket ban on initial coin offerings (ICOs). Next on South Korea’s agenda are plans to lead what could be the fourth industrial revolution that they will be backed by blockchain initiatives.

Even as the country surges on towards delivering a blockchain-powered future, the authorities still understand the importance of regulation. According to the announcement which was made by the country’s Financial Services Commission (FSC), a set of new anti-money-laundering and know-your-customer rules for cryptocurrency exchanges will take effect on July 10, 2018, and will remain in effect for a year.

A Tougher Stand

The country’s new guidelines will make the current regulations on user and transaction monitoring even stricter than they were before. These stricter regulations are being put into place so as to prevent money laundering, fraud as well as money transfers between local and foreign exchanges.  The FSC also requested the Korea Financial Intelligence Unit (KFIU), the country’s financial supervisory organization to strengthen their control over digital currency transactions and user activity so as to provide cryptocurrency exchange investors with even greater security.

The advancement of the crypto regulations in South Korea was primarily based on the FSC’s recent inspection of Nonghyup Bank, KB Kookmin Bank, and KEB Hana Bank – the inspection revealed that some of the crypto exchanges had moved assets from their investors’ depositing accounts into their own operating accounts. This is a violation of the promise that cryptocurrency exchanges make to keep investors’ assets separate from their own.

“We plan to closely keep tabs on bank accounts used by cryptocurrency exchanges for parking their expenses,” the FSC noted after the findings.

The new regulations also require the crypto exchanges to conduct Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD). These are meant to ensure that foreigners are not trading digital assets through the South Korean crypto exchanges and, as mentioned earlier, to reduce the possibility of fraud, prevent money laundering and prevent personal data breaches.

While these regulations mostly seem to be restrictive in nature, the South Korean government’s initiative to control the crypto space is also a step forward towards the legitimization of the sector. In the next few months, the local authorities will be teaming up with local exchanges and banks in an effort to better structure the cryptocurrency market.

FanDuel Seals Sports Wagering Deal with The Greenbrier

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Renowned daily fantasy sports operator, FanDuel has recently inked the first sports betting deal in West Virginia and will, therefore, be offering sports wagering services to The Greenbrier, one of the state’s luxury resorts that also happens to be owned by Governor Jim Justice.

As per the terms of the agreement, FanDuel will be providing retail, online and mobile sports betting services to the casino which already has plans underway to launch an on-premises offering under the umbrella of The Greenbrier Casino Club brand. This deal marks FanDuel’s first sports wagering-related venture in the United States – the company is primarily recognized for its daily fantasy sports offerings and the move to sports betting is indeed a huge step for the company.

It is, however, not the company’s first stint at sports betting. Earlier this year, FanDuel merged with Paddy Power Betfair, a European bookmaker which has similar deals with Tioga Downs in New York and Meadowlands Racetrack in New Jersey.

“We are honored to be chosen to provide sports wagering services at the Greenbrier, an iconic resort in the US,” said FanDuel CEO, Matt King. “As we work towards building out a top sports betting product for the upcoming NFL season, we look forward to bringing West Virginia residents, sports fans, and visitors to the Greenbrier the best interactive sports experience on the market.”

The West Virginia-based Greenbrier plans to include an onsite wagering platform right inside the private casino that is being referred to as The Casino Club. It also has plans for a FanDuel-branded online site and mobile applications by fall. Unfortunately, no specific dates have been forwarded so far but they seem to be dependent on when the state finally decides to put its sports betting regulations in place.

“We’re excited to be able to offer this service to those guests who are interested,” said Dr. Jill Justice, President of The Greenbrier. “The Casino Club at The Greenbrier has been an attractive destination for our guests and members since its opening, and sports betting provides yet another element to the casino experience.”

Where Sports Betting Stands in West Virginia

The state had already made a move to legalize sports betting through an initial law that was passed shortly before the United States Supreme Court ruled to repeal PASPA. The law allows sports betting services to be offered at the state’s four racetrack casinos and The Greenbrier. The licenses also allow the participation of third parties who will be required to operate skins under the licensees – FanDuel is the first third-party operator to do so.

State officials have confirmed that all the casinos are in the process of working on their own sportsbooks. Each of the casinos is also allowed to pick whoever they want to run their sports betting services.

32Red Caught Red-Handed In a Problem Gambler Scandal

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British online casino brand 32Red had been slapped with a £2 million penalty for having failed to uphold the industry’s problem gambling practices. After a meticulous investigation conducted by the controlling body, the UK Gambling Commission (UKGC), have revealed that there’s still more to be desired when it comes to integrity from the industry’s best-known names.

The UKGC had been forced to pursue this course of action as a result of identifying 22 cases where the casino had failed to conduct basic money laundering checks or advise a customer exhibiting reckless gambling habits against playing, even though they had been reaching out with their qualms about their habits.

The investigation examined a period spanning the time between November 2014 and April 2017. During the said period, there had been multiple indicators that the customer exhibited symptoms of reckless gambling, which should have been looked into earlier.

In fact, 32Red only looked into the proceedings of the customer in January 2017 when the customer managed to win £1 million. The provenance of the customer’s money was also unknown, which indicated serious breaches in 32Red’s anti-money laundering practices.

All the Signs of a Problem Gambler

What’s unnerving on this particular occasion is that the customer may have been aware of his condition. On one occasion, he even shared with 32Red staff that he had wagered too much, which in turn failed to elicit an action from the operator.

When the operator finally began to examine its customer’s finances, it took it nearly five weeks and the produced written proof was disconcerting insofar as it showed volatile finances, but also glaringly indicated that the customer neither has the means to support his gambling habits and that he has far exceeded his net salary of £2,150.

His income in the submitted document was shown as £13,000 and at the same time, the average monthly deposits exceeded £45,000. Of course, some of this amount was won at the casino, but the UKGC has refused to accept the furnished proof as credible.

The UKGC was even tougher on 32Red, arguing that “The source of the customer’s wealth was not known to 32Red because they failed to fulfill their anti-money laundering obligations. We cannot comment on any other proceedings that may be active”.

UKGC Executive Director Richard Watson has been vociferous about the case arguing that what 32Red did was exactly the opposite of what they were supposed to be doing. A failure to help a customer and to check the origin of the money wagered indicated grave lack of accountability within the structure of the operator.

Furthermore, it showed that 32Red would only care to help its customers if they seem to be winning and willing to withdraw. Why was a check not initiated earlier but only after the customer managed to score £1 million is anyone’s guess, but if the answer is obvious, that doesn’t bode well for the operator’s reputation.

Meanwhile, the proceedings from the fine constitute £709,046 divestment of the financial gain, £1.3 million allocated to the National Responsible Gambling Strategy, and £15,000 covering legal expenses.

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.”

Reserve Bank of India Reveals Its Crypto-Ban Was Uninformed

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The Reserve Banks of India (RBI), India’s central bank, has been warning the citizens of India against the dangers of investing in crypto since 2013. The central bank followed through with two more major warnings in 2017 before it finally came down hard on the cryptocurrency industry earlier this year.

An April 5 this year, the RBI issued a somewhat controversial decree that required all regulated financial institutions to quit providing services to business dealing in cryptocurrencies – this was accompanied by a three-month compliance deadline. According to the bank, the move was primarily motivated by the need to protect consumers and prevent money laundering. At the same time, the RBI also announced that it would be forming a workgroup that would be tasked with the study of the feasibility of issuing a state-backed cryptocurrency.

As expected, not everyone agreed with the RBI and its decision especially because of the concern that the bank did not conduct proper research prior to issuing the decree. This concern was confirmed this week when the RBI revealed that had made no serious efforts to effectively and explicitly study and understand various aspects of cryptocurrencies before issuing the ban. Furthermore, the bank did not form an internal committee to investigate the purported risks that it associated with cryptocurrencies.

“The RBI specifically mentions that it conducted no research or consultation before the implementation of restriction in April. The RBI also responded that no committee was ever formed for analyzing the concept of blockchain before the decision,” said Sethi, a lawyer and founder of blockchainlawyer.in.

The most affected parties, in this case, were the Indian cryptocurrency exchanges and individual traders, most of whom believe that even though they are opposed to it, they actually did expect something like that to come up. It is becoming more common for governments to make spontaneous decisions on crypto without studying it first. For instance, Japan and Russia have tried to ban crypto but have been forced to soften their stances on the issue owing to the backlash, and India is certainly headed in the same direction.

What Next?

Multiple lawsuits were filed against the RBI and some of them are already taking root into how the future of crypto in the country will play out.

“This RBI response has cemented our case ahead of the hearing in SC. The grounds on which our writ petition has been filed is that the RBI has not done enough research to ban a business completely,” Rashmi Deshpande, one of the lawyers fighting out the case in India’s Supreme Court told local news outlet.

According to June 13 report by the Economic Times, the RBI has already softened its position and therefore going to lift sanctions and the ban on crypto thus allowing trading once again. Some other reports have conflicting information but one thing that is clear is that there is a lot of effort being made toward making sure the decision is reversed.

“The foremost reason we are fighting is because we know that banning is next to impossible and it will make things worse for everyone – for the Reserve Bank, for the government, for the tax department, and for the user. In addition, it will push India back in reference to blockchain adoption across the world. We always have an option to relocate to other countries to carry our business, but that’s not the solution. If we cannot convince our own government, we cannot expect other governments to support us,” says Kunal Barchha, one of the founders of Coinrecoil.