Tag: Regulations

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.

Delaware Becomes First State to Launch Sports Betting

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Barely a month after the United States Supreme Court paved the way for nationwide legalized sports betting through a landmark ruling that lifted a federal ban on sports betting, Delaware has become the first state to launch sports betting. This move not only marks the dawn of a new era for both the gamblers and the operators but also gives a significant boost to legal sports betting in the country.

This began at 1.30 p.m. ET last Tuesday when the Delaware governor, John Carney, placed the first bet, wagering $10 on the Philadelphia Phillies to beat the Chicago Cubs.

Always Been Ready

The state had made prior preparation for the new development – during the duration of the federal ban, the state was already offering parlay betting. Launched in 2009, the parlay cards offered by the state were provided through the state lottery. In addition to this, Delaware also went ahead to build sportsbooks within its casinos in preparation for the inevitable lifting of the federal ban on sports betting.

When the state’s sports betting industry went live on Tuesday, three Delaware-based casinos – Delaware Park, Dover Downs and Harington Raceway – launched single-game wagering on NBA, MLB, NFL, and the World Cup. These will eventually be followed by sports betting offerings for others sports including college football, the NHL, and golf.

So Far So Good

Despite the absence of big game events such as Stanley Cup or even an NBA Finals game on the day Delaware sports betting went live, there was still plenty of betting action to go around. Vernon Kirk, the secretary of the Delaware state lottery reported that $322,135 was bet on sports at the state’s three casinos on the first day.

“For us, it’s really an enhancement of our tourism industry,” Governor John Carney told ESPN on Tuesday. “It will attract a lot of visitors to our state, particularly at this time of year, during the summer, coming to our beautiful beaches south of here. They come here and stop at the casinos and do slot machine and table gaming. This will be another opportunity for them.”

Projections from Eilers & Krejcik Gaming, a research firm, anticipates that the amounts wagered on sports every year will be in the range of $350 million and $760 million – this is if online sports betting is implemented fully. Of these projections, the state will receive between $23.1 million and $49.6 million annually from both sportsbooks and online sports betting services.

Fortunately, according to the secretary of the state lottery, Delaware intends to offer internet and mobile sports betting products in the near future but first wanted to get the physical sportsbook off the ground before proceeding.

Experts Deem Google’s Crypto Ad Ban ‘Unethical’ and ‘Unfair’

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Earlier this year in March, Google announced that beginning June, this month, cryptocurrency-focused promotional content or advertisements would no longer be allowed on its platforms. The blanket crypto ban covers adverts advert for Initial Coin Offerings, wallet services, and exchange services among other related services.

Now that the ban is about to go into effect, the debate about the motives behind it has begun to heat up. While like other media tech companies like Twitter and Facebook, the ban is said to be a reaction to the perceived prevalence of crypto-related scams and fraudulent offers that have lately been on the rise.

Painting All Crypto with the Same Brush?

One of the biggest concerns, especially for startups, is the fact that the ban by Google, in essence, paints a general bad picture of the entire crypto industry. Initial Coin Offerings (ICOs) are an immensely popular means of fundraising for startups and as such, the bad press that will follow is certainly going to make fundraising very difficult for them.

“Unfortunately, the fact that this ban is a blanket ban will mean that legitimate cryptocurrency businesses which provide valuable services to users will be unfairly caught in the crossfire,” Ed Cooper, head of mobile at digital banking startup Revolut, said in an interview with The Independent. “A more targeted approach would definitely be preferable: it would seem heavy-handed for example to put a blanket ban on all ads for job postings, anti-virus software or charities just because ads for these products and service are also sometimes used as an entry point by scammers to target consumers.”

Many other stakeholders in the tech and cryptocurrency industries have pointed out that the ban’s motives are quite questionable particularly because it makes it seem like Google might just be overstepping its roles as an objective source of information.

Suspicion of Foul Play

As expected, the decision to ban cryptocurrency adverts is not going down well with cryptocurrency and blockchain technology proponents, some of whom now believe that there is some element of foul play.

“I understand that Facebook and Google are under a lot of pressure to regulate what their users are reading, but they are still advertising gambling websites and other unethical practices,” said Phillip Nunn, the chief executive of Blackmore Group, a cryptocurrency investment firm. “I suspect the ban has been implemented to fit in with potential plans to introduce their own cryptocurrency to the market in the near future and therefore removing other crypto adverts allows them to do it on their own terms.”

While this claim is quite frankly believable and fascinating, you might have to take it with a pinch of salt especially because there are a number of antitrust laws that make it unjustifiable. This should, however, not be the point of focus – it is clear that the inevitable legitimization of blockchain technology and cryptocurrencies has begun taking shape hence the rush by mainstream tech companies to regulate it. How everything plays out, in the end, is more of a gamble though.

Esports Betting Already Enticing Criminal Fixers

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Esports just like any other sports is unanimous with betting and as always, where there is gambling money, vices are not far behind. Putting into consideration the approximately 380 million people who will watch Esports games and tournaments this year, it is very likely that Esports fixers are already looking devising ways to get the best out of what is now the fastest growing sports in the world.

According to iNews, Esports bets will inevitably go over the $45 billion mark this year, a sum that is bound to attract the attention of fixers. Already, a number of Esports players and fixers have already, been banned and, in some cases, even imprisoned for cases of match-fixing. Similarly, last year, the Esports Integrity Coalition is reported to have received 39 suspicious betting reports with at least 13 of them being genuine fixes.

Apparently, no game is harder to detect fixing in than Esports since it is a product of geography, technology as well as its relative newness. About 15 percent of traditional sports betting in the world is fully legal and this makes it rather easy for anti-fraud and anti-fixing bodies to trace and follow betting patterns in order to identify game fixing. On the other hand, only 4 percent of Esports betting in the world is fully legal.

According to Ian Smith, the head of the Esports Integrity Coalition, the low numbers are partially due to the fact that Esports is most popular in East Asian countries like South Korea and China, where, as it turns out, traditional sports betting is illegal. Even in the United States where Esports has been going nowhere but up, 99 percent of Esports betting is illegal, even though with the recent Supreme Court ruling that revoked a federal ban on sports betting. Still, all these factors make match-fixing in Esports very hard to detect and even when detected, just as impossible to track.

Is Regulation the Answer?

New Esports games are constantly being invented and popularizes and this makes it harder to ascertain what should and what should not be regulated. This is unlike the cases with traditional sports where there is an abundance of history and data that can be used to inform anti-fixing bodies about criminal activities of this kind.

“If you get an alert in say cricket you can be reasonably certain – 80 or 90 percent – that there is something wrong,” explained Ian Smith. “In eSports, it’s kind of the opposite – because it’s all a little bit chaotic and new and changeable, about 90 percent of alerts don’t mean anything and only 10 percent do.”

The main takeaway here is that the institutional weakness of Esports makes it particularly susceptible to match-fixing simply because we still do not have a universally accepted governing body for the activity. The formation of such a body is perhaps the only way to keep the rapidly growing Esports ecosystem from being a serious criminal enterprise.

IMF Official Urges Central Banks to Compete With Crypto

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International Monetary Fund (IMF) deputy director, Dong He, on Thursday published an article that is meant to nudge the central banks to work on measures geared towards making fiat currencies “more attractive in the digital age.” Dong He believes that crypto may someday reduce the demand for central bank money and, therefore, these banks should consider adopting concepts to obstruct the competitive pressure that cryptocurrencies are already exerting on fiat currencies.

IMF’s stance when it comes to cryptocurrencies has not been particularly reassuring especially when it comes to the future of these digital assets. In an event in March, IMF Chief Christine Lagarde advised supervisors to prepare technical elements that would assist them in “fighting fire with fire.”

The deputy director reiterated this thought and outline his view that, at the moment, cryptocurrencies and other crypto assets have more adoption. Consequentially, the central banks are bound to eventually lose their command and influence on the economy, which is usually through strategies like interest rate charges.

“Second, government authorities should regulate the use of crypto assets to prevent regulatory arbitrage and any unfair competitive advantage crypto assets may derive from tighter regulation,” he pointed out. “That means rigorously applying measures to prevent money laundering and the financing of terrorism, strengthening consumer protection, and effectively taxing crypto transactions.”

Dong He further pointed out some of the viable alternatives that the banks could adopt. These include the idea of the central banks moving to create their own digitized assets or digital currencies that could be exchanged in a peer-to-peer fashion, just like it is done for other cryptocurrencies.

“For example, they could make central bank money user-friendly in the digital world by issuing digital tokens of their own to supplement physical cash and bank reserves. Such central bank digital currency could be exchanged, peer to peer in a decentralized manner, much as crypto assets are,” a related excerpt from the article reads.

Already, a number of banks have been researching ways to implement such a move but there have been a number of setbacks, one of the most prominent being divergent opinions on whether such a move would pay off or not.

According to the deputy director, the central banks can actually profit from the underlying technology of cryptocurrencies – monetary policymaking will, without a doubt, benefit from such kind of technology by improving the banks’ forecasts using big data, machine learning, and, of course, artificial intelligence.

“Central banks should continue to strive to make fiat currencies better and more stable units of account. The best response by central banks to crypto is to continue running effective monetary policy while being open to fresh ideas and new demands, as economies evolve,” he noted.  “That means rigorously applying measures to prevent money laundering and the financing of terrorism, strengthening consumer protection, and effectively taxing crypto transactions.”

Push for Lower Online Gambling Tax Rate Succeeds in Victoria

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Following massive concerted lobbying efforts by corporate bookmakers led by the executive director of Responsible Wagering Australia, Victoria has made a decision to introduce its own tax on digital betting that is nearly half the rate of other states. Last year, South Australia levied a 15 percent consumption tax on online gambling that has been rumored to be also appealing to Queensland and Western Australia.

The Australian state of Victoria, however, chose to take a different path that was made public on Monday when state officials announced that it was planning to implement an 8 percent tax rate for online betting entities. This directive, according to Victoria’s state Cabinet Minister in charge of finance, will be implemented as from January 1st next year.

After years of tax evasion, targeted online gambling operators will be required to pay the rates which, as indicated in the announcement, will only apply to the bets that are placed in the state of Victoria. As such, said online gambling operators will be required to effectively put in place measures that are geared towards determining the locations of their customers.

Tim Pallas, the states finance Cabinet Minister, the move to introduce the move to lower the tax rate is long overdue and it will be implemented primarily to ensure that Victorians get their fair share of the highly lucrative multibillion-dollar online gambling industry. In addition to this, the state government projects revenues of up to a whopping AUS $30 million every year.

The Mixed Reactions

Even though the Conroy-led Responsible Wagering Australia (RWA) expressed that they were a bit disappointed by the announcement made by the state of Victoria, they did acknowledge what they termed as “consultative approach” by the government – the RWA is the body mandated to ensure that responsible betting practices are adhered to in Australia.

“The online wagering industry already pays a significant amount of consumption tax through the GST, as well as corporate income tax to the federal government,” Stephen Conroy said. “An 8% tax does not adequately account for these significant contributions and will result in Victoria having one of the highest effective wagering tax rates in the world.”

The organization argued that by setting the Point of Commission tax rates at half of what is offered by other states such as South Australia, Victoria will undermine the betting companies that are currently operating in other states where the tax rate is set at 15 percent.

Conroy further pointed out that online gamblers and online betting operators are currently being charged significant amounts through Goods and Services Tax (GST) and the federal government tax scheme. His concern is that the consequence would be the likely occurrence of a double taxation which will, in turn, make Victoria’s tax burden is actually higher than what it seems.

Nevertheless, Victoria’s tax course is intact and has already been finalized so as to guarantee the legislation is rolled out in full by January 2019.

What Is Next for Pro Leagues After Supreme Court Ruling?

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It has been a week since the United States Supreme Court repealed the Professional and Amateur Sports Protection Act (PASPA) thus effectively giving states the go-ahead to liberate over their own sports regulation and rules. Still, the landmark ruling remains quite a big deal especially because the implications it comes are huge, to say the least. While it will take time for various stakeholders to adjust appropriately to this development, it is impossible to ignore the ongoing discussion pertaining to how a legalized and regulated sports betting system will affect the professional sports leagues’ businesses.

In the recent past, a number of leagues – the most recent being the NFL – through their commissioners or other high ranking officials have expressed concern about the integrity of their games being compromised due to increased legal sports betting. This has been touted by many experts as a misguided opinion. To elaborate this, Nevada is a great example of a legalized sports betting market that has thrived without any evidence of match-fixing.

Getting the Best Out of It

It is estimated that more than $150 million is illegally wagered on sports each year. On a similar note, the Nevada Gaming Control Board also recently revealed that over $4.8 billion had been wagered on sports in Nevada Sports Books. As such, the Supreme Court ruling will actually be beneficial to the professional sports leagues by taking the billions that are illegally wagered in sports and subjecting it to state regulation and the league’s oversight.

Acknowledging the fact that sports betting has always been with us is the first step towards making it work for everyone involved. By bringing it to the open, the ruling will make it easier for the leagues to monitor the games that are most likely to be fixed and the players they need to keep an eye on. This kind of oversight would be impossible in an illegal sports betting market.

Also, the ruling came at a time when most state legislatures in the United States are already in recess. This means that the professional sports leagues have plenty of time to ideally and strategically position themselves to collaborate with individual state legislation when the 2018-2019 legislative period begins. This way, they will be able to effectively assist in tailoring new sports betting laws in order to ensure that their interests are also considered as the United States enters a new era of legalized sports betting.

The relationship between professional sports and gambling has never been as mainstream as it is now. While the leagues have not been particularly welcoming to the idea of embracing sports betting, the professional sports teams have on the other hand participated in one way or the other albeit indirectly. For instance, a number of teams have willingly invested in Daily Fantasy Sports and accepted money for the use of their logo in state lotteries and in-stadium casino signage. Clearly, there is a bright future ahead for all the stakeholders, they just need to know when and how to capitalize on this new opportunity.

USA Online Casino Partners with Top-Rated Casino Brands

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USA Online Casino has entered into a number of new partnerships with leading casino brands as part of its efforts to provide gamers and gaming fans with the best possible offerings and information about online casinos. The partnerships have been forged with the aim of bringing players regularly updated and in-depth reviews of the major online casinos that are lucky enough to meet their stringent criteria.

In addition to this, the partnerships will go a step further to provide games with up-to-date news, the best casino bonuses in the markets, as well as the fastest and most reliable payouts – all these are going to be selected based on whether or not they adhere to the strict safety rules that will be outlined by USA Online Casino and its partners.

We live in an era where massive data leaks and misuse of personal data are usual occurrences and one of the most affected industries is the casino industry. USA Online Casino understands that the player’s need for privacy protection and this is where the partnerships come in. The company conducts extensive background and safety checks on all the casinos they review so as to ensure that they are not only fully vetted but also regulated and certified by reputable, independent third parties.

“All the casinos featured use the latest industry-standard encryption technology to ensure players’ personal data always remains completely safe and secure. We want players to have a good time, but not at the expense of safety or quality. Our ultimate goal is to achieve the perfect balance—and that requires the right blend of cutting-edge content, ground-breaking new releases, and player rewards,” Philip Redmond, a spokesman for USA Online Casino, commented on the new partnerships in a press release. “Our goal is always to find a dynamic assortment of online casino promotions and VIP perks not available anywhere else – and bring them all together in one place.”

The platform stays true to its goal of finding a dynamic assortment of online casino promotions and VIP perks that cannot be found anywhere else and then bring them all together to a place where players can easily access and use the information.

Landmark US Supreme Court Ruling Lifts Sports Betting Ban

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On Monday 14, the United States Supreme Court finally delivered a much-anticipated ruling that sports fans and bettors have been eagerly waiting for. The court’s decision effectively overturned the Professional and Amateur Sports Protection Act (PASPA) of 1992 that imposed a federal ban on sports betting in all but a single state – that is, Nevada. The ruling was made in favor of New Jersey which has fought for years to have sports betting at casinos and racetracks legalized.

“The legalization of sports gambling requires an important policy choice, but the choice is not ours to make. Congress can regulate sports gambling directly, but if it elects not to do so, each state is free to act on its own. Our job is to interpret the law Congress has enacted and decide whether it is consistent with the constitution. PASPA is not,” Justice Samuel Alito wrote.

According to the American Gaming Association, Americans illegally wager approximately $150 billion on sporting events every year which is clear indication that even prior to the debate on the legalization of sports betting, the federal ban had already failed miserably. Generally speaking, the existing underground market offers zero protection for gambling addiction or problem gambling and no safeguards for game integrity. These are some of the issues that a legalized and regulated sports betting market could solve.

The Supreme Court decision will take sports betting out of the shadows and thus make it open and transparent. This way, regulators, law enforcement agencies, and sports leagues will have tools and more support in their endeavors to shut down illegal or underground gambling operations. In addition to this, technology experts and data analysts will also be able to easily identify suspicious betting patterns in real time which will, in turn, culminate in better protection for game integrity.

Now that the decision potentially implies the creation of an entirely new revenue stream, there are certainly going to be a lot of interested parties. Professional sports leagues have already made their demands for an integrity fee clear and the government through the Internal Revenue Service is eyeing a piece of the winnings.

“The amount of gambling winnings, less any losses, gets tacked on to all other income you have … and is taxed as ordinary income,” said Bill Smith, managing director at Washington’s CBIZ MHM’s National Tax Office.

A lot depends on the number of states that decide to permit sports betting. Hopefully, the possible legalization of sports betting in some states, such as Pennsylvania, will also have a positive impact on efforts for online poker expansion. Still, it is still too early to tell how impactful the landmark ruling will be since we have to wait and see how the states will handle it.

West Virginia Casino Operators Dispute ‘Sports Betting Deal’

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Last Thursday, Governor Jim Justice made a surprise announcement that sent the West Virginia gaming industry into a state of confusion. The governor issued a release that claimed that the state and its casino operators had come into a tentative agreement to incorporate an “integrity fee” into the state’s new sports betting law.

The alleged agreement which also happened to involve the “sports consortium” would see the state’s casino operators part with a percentage of their sports betting profits – this is totally separate from the state’s cut. However, West Virginia casino operators are saying that they never agreed to pay the fee in case the Profession and Amateur Sports Protection Act of 1992 (PASPA) is abolished and sports betting is legalized in the United States.

According to an article that was posted on the gaming industry’s “Sports Handle” website on May 10, during the closed-door meeting at the Lottery headquarters, “nothing and a lot happened.”

“A lot, because firsthand accounts of this closed-door meeting paint a colorful picture between attendees that include state lawmakers, a lobbyist for the NBA and NFL who has ties to Gov. Jim Justice (Larry Puccio); an appearance by the NHL, possibly the first time the league has gotten involved on sports wagering publicly; representatives from West Virginia University and Marshall, plus casino representatives and a ‘citizen volunteer’ for West Virginia Gov. Jim Justice (Bray Cary), who did not attend in person but spoke by speakerphone. There was also some reported shouting, ‘shuttle diplomacy’ and an apparent conflict of interest in play,” reads a snippet of the article.

John Cavacini, the president of the West Virginia Gaming and Racing Association, said that the day-long meeting came to a close with the casino operators remaining opposed to the incorporation of an integrity fee that is to be paid to the professional sports leagues.

However, Cavacini revealed that there was a conceptual agreement for the casino operators to enter into private contracts with the sports leagues to provide them with game data that would be necessary for sports betting. The only alternative that the leagues would have is to buy data from third-party providers.

“We’re trying to get the leagues some money, but we’re not going to pay the integrity fee,” John Cavacini said.

As it stands, West Virginia lawmakers have shown very little interest in revisiting the sports betting law that they just recently passed, according to MetroNews. This implies that it will take a bit of time before the tug of war between the casino operators and state is won by either party.