Monthly Archives: June 2017

Before Hong Kongs return to Chinese rule, Communist leader Deng Xiaopinghad a reassuring message for those worried about the departure of the British from the capitalist enclave. Dont fret, the architect of the handover said: Horses will still run, stocks will still sizzle, dancers will still dance.

The dancing has continued, the stock market isnt far off its record high, and the horses indeed still run. Yet 20 years after the handover to China, one of the citys most-venerable institutions, the Hong Kong Jockey Club, which has been called an "ATM for the government" for its huge contributions to the citys tax coffers and charity efforts, is facingtrouble.

Disinterest among manyyoung people and an upcoming bridge link to the glittering casinos of Macau threaten the future of the money-spinning gambling monopoly. Already the amount bet on racing fell 1.7 percent in the latest season for which numbers are available, ending mid-July 2016, from the previous year. While its still a lot of money that HK$106.1 billion ($13.6 billion) was almost 30 percent more than the total of the most-common type ofbettingon thoroughbreds in all of the U.S . gambling on horse racinghas grown an anemic 1 percent a year on average for two decades.

Spectatorsat theJockey Club's Happy Valley Racecourse in Hong Kong.

Photographer: Justin Chin/Bloomberg

The pressure is on them to remain relevant, saidDavid Dodwell, chief executive officer of Strategic Access Ltd., a Hong Kong-based public policy consultancy. An awful lot of the welfare infrastructure that has been built over the decades in Hong Kong is attributable to it.

Finding new sources of cash from allowing simultaneous betting in places like London and New York, as well as increasing the appeal to younger people at home, are critical to keeping a major funding engine of the Hong Kong government racing ahead. The Jockey Club is also expanding into China, a move that could position it well should betting on horses, halted after the 1949 revolution, someday return.

The Jockey Club accounted for about 7 percent of Hong Kongtax revenuelast year equivalent to a third of the citys education budget and 35percent of itssocial welfare spending. It donated HK$3.9 billion to schools, hospitals and other charities, making it the largest donor in Asia and the sixth largest worldwide, according to theWorld Charity Index. The government is also relying on the club rather than the legislature to fund a controversial museum project.

It has become a kind of ATMfor the government, saidTanya Chan, a Legislative Council member and government critic. "The government knows very well where to go if they want a substantial sum of money."

Horses on the track at Happy Valley.

Photographer: Justin Chin/Bloomberg

The Clubs voting members and stewards read like a Whos Who List of Hong Kongs richest and most powerful, including billionaires who control virtually all of the citys significant property, retail, entertainment, utilities and infrastructure building, along with other business luminaries:Li Ka-shing,Lee Shau Kee,Henry Cheng,Stanley Ho,Allan ZemanandCanning Fok.

Major powerhouses of politics are there, too: Former Chief JusticeAndrew Li; former Finance Secretary and Chief SecretaryHenry Tang; former head of the Hong Kong Monetary Authority,Joseph Yam, who on Thursday was appointed to the city's Executive Council, or cabinet; and former Legislative Council PresidentRita Fan.

"For a long time, it has been a place where entrepreneurs and officials can mix together and have the same status," said Eddie Chu, another LegCo member and government critic. "The Jockey Club maintains its power not by horse racing but by its network of powerful people gathering together."

Withtwo race tracks, more than 100 off-track betting outlets, soccer-wagering services and a lottery, the club can be generous because generations of Hong Kongers grew up spending their money and time at the track.

BettingatHappy Valley Racecourse.

Photographer: Justin Chin/Bloomberg

My friends and I were crazy about horse gambling 20 years ago, said Tony Yu, 40, a construction company manager who used to spend several hundred Hong Kong dollars on tickets and beers at the track, especially on payday. Those days are long past. Who do you see reading the horse-racing page in the newspaper and going to the Jockey Club to buy tickets? Old-timers!

The club also faces competition from across the Pearl River Delta, where Macaus casinos are now aggressively targeting Hong Kong, Jockey Club CEO Winfried Engelbrecht-Bresgeswrote in the most recent annual report. With the expected completion later this year of a bridge linking the two cities for the first time, traveling toSands China Ltd.s Venetian andMelco Resorts & Entertainment Ltd.s City of Dreams will be even easier. The bridge will undoubtedlyexacerbate the problem" already facing the club, Engelbrecht-Bresges wrote.

The Jockey Club has found ways to keep the money flowing. One solution has been to expand the number of races per season. Back in the mid-1990s, there were 75 days in a season, with 595 races; now there are 88 in the season, with 807 races. The club also moved into soccer in 2003. Such wagering accounted for HK$86.8 billion in bets in the most recent fiscal year, up 11 percent from the previous year.

A horseswims in anequine pool atSha Tin Racecourse in Hong Kong's New Territories.

Photographer: Justin Chin/Bloomberg

While mainland China doesn't yet allow betting on horses, the Jockey Club is establishing a foothold there. It plans to open a new training facility across the border in Guangdong province next year. Twice the size of the Jockey Clubs facility in Hong Kongs New Territories, the site will be able to host about 660 horses.

Worldwide, the club has broadened its reach through whats known as commingling, or allowing people overseas to bet on Hong Kongs horses. In the 2013-14 season, the Jockey Club began taking bets from Australia, New Zealand, Singapore and Macau. It has also expanded its reach to South Africa, Ireland, Canada and parts of the U.S., where Hong Kongs Happy Valley races are available via simulcast on Wednesdays at 8 a.m. New York time throughTVG Networks online betting site and cable channel,one of several operators in the U.S. with Jockey Club deals.

Last November, the Jockey Club announced anexpansionto the U.K. that enables customers ofLadbrokes Coral Group Plcand anotherbetting shop operator to bet on Hong Kong races. The Jockey Club announced a similaragreement last year with Canadian racetrack owner and online betting services provider Woodbine Entertainment Group.

Inside a Ladbrokes bookmakerin London.

Photographer: Chris Ratcliffe/Bloomberg

Hong Kong is attractive for global gamblers, according to Ken Kirchner, former executive director of the Pennsylvania Racing Commission and president of consulting firm FalKirk International. Bettors can wager on unusual options such as a triple trio, three consecutive trifectas, and get huge payouts because Hong Kongs gambling pool is large, he said.

Theyre run under strict regulation and authority, so you feel like youre betting into a very honest product, Kirchner said.

Hong Kong offers more data on horses than other venues, including the only consistent publishing of veterinary reports, said Ron Luniewski, president of Xpressbet, a Washington, Pa.-based company that provides online betting.

"Thats a big deal. I give them a lot of credit for that," he said. In a lot of ways, Hong Kong racing is the gold standard globally.

Commingling now accounts for about 6 percent of the Jockey Clubs betting income, according toRichard Cheung, head of marketing, and is forecast to top 10 percent by the end of the decade.

Hong Kong is a very small place, Cheung said. To seek growth we must go elsewhere.

As it expands globally, the Jockey Club will still have a challenge winning back people like Yu, the construction manager.

Now I seldom bet because there are so many other options, he said. I earn more money than before, so I can afford to invest money in the stock market.

People leaveHappy Valley Racecourse.

Photographer: Justin Chin/Bloomberg

With assistance from EbenNovy-Williams

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Hong Kong's Gambling Empire Is Losing Horsepower - Bloomberg - Bloomberg

Photo: Pixabay.

NAIROBI (Reuters) Kenyas president signed a law on Wednesday that raises the tax rate on gambling but sets it at a lower rate than had originally been proposed.

The law will impose a tax of 35 percent of gross profits on all gambling. Until now, lotteries were taxed at 5 percent, betting firms bookmakers at 7.5 percent, casino gambling at 12 percent and competitions like raffles at 15 percent.

Secretary for the National Treasury Henry Rotich had originally proposed raising the tax rate to 50 percent, saying the rapid growth of on-line gambling hurt the young and vulnerable, and the proceeds from the tax would fund sports, culture and the arts.

Gambling in Kenya generally takes place on-line. Mobile- phone-based financial services like M-Pesa by Safaricom allow users to place bets, pay off losses and get winnings on their phone without needing a bank account.

Industry executives say about 7 million out of 45 million Kenyans have registered for betting services. No figures are publicly available on the industrys profits.

(Reporting by George Obulutsa, editing by Larry King)

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Kenya says will raise tax rate on gambling to 35 percent - CNBCAfrica.com

Legalized gambling any gambling really comes with the specter of people who will become addicted or at least form habits more costly than they can really afford.

Since the opening of Presque Isle Downs & Casino in 2007, that's been evident in the prosecution of people who turned to theft to feed that habit. Some of them get in really deep.

And those are just the ones you hear about. There's surely damage being done to lives and families in ways that don't turn up in the court docket.

But the deepest and most intractable gambling addiction of all has been playing out in plain view for months. Government in Pennsylvania has it bad.

The latest round of political maneuvering over the proceeds of vice was launched last fall by a Pennsylvania Supreme Court ruling that voided part of the state's 2004 casino law as unconstitutional and put huge sums of casino tax revenue in play. The legislative sharks immediately started circling.

That set off alarm bells in Erie and other communities that host casinos. The court decision in effect abrogated the deal the state made with those communities to provide them with millions in gambling cash in exchange for shouldering the problems and burdens that casinos bring.

That put at risk the roughly $11 million annually Erie County has been receiving from the casino. This region, like the state, has become deeply reliant on that money.

The state Senate's version of the legislative fix to the gambling law would make Erie County mostly whole, splitting $10 million a year between Erie County government and the Erie County Gaming Revenue Authority. But then the House upped the ante earlier this month by proposing to change who controls the money and to cut some new regional players in on the action.

The House version would eliminate the Gaming Revenue Authority from the equation in favor of funneling $8 million straight to county government. It would also reallocate $1.5 million for blight reduction countywide.

The remaining $500,000 annually would be redirected to the city of Erie for public safety or infrastructure. Or in the language of the legislation: "$500,000 of the gross terminal revenue to a city of the third class with a population of not less than 80,000 located within a county of the third class that is also a home rule county." Home sweet home.

The prospect of the region retaining most of its casino money has been met with relief. And the House's move to eliminate the Gaming Revenue Authority in favor of direct county control over the money ignited a vehement debate in these parts.

But the most consequential aspect of the House version for the state as a whole involves another massive expansion of gambling throughout Pennsylvania. That would deepen state government's addiction and enable it by arranging for more people to lose more money in more places.

It would do that by allowing 40,000 video betting machines in bars, fire halls, restaurants, bowling alleys and other venues licensed to sell alcohol. Gov. Tom Wolf's administration has projected that would raise $150 million.

As the state struggles with a massive budget deficit, the House play would fatten Harrisburg's coffers by putting gambling in easy reach of a lot more folks who could put their money to more productive uses. The Black Clergy of Philadelphia and Vicinity came out against the expansion this week, arguing that it would "have a hugely negative effect on the quality of life of already challenged neighborhoods and communities."

In addition to the moral and civic considerations, the proposed expansion raises questions about how much gambling the market can bear. The new options could cut into the take by existing casinos and the Pennsylvania Lottery, and presumably in due course threaten the share received by Erie County and other host communities.

The casino industry is taking that threat seriously. The Sands Casino Resort Bethlehem launched a $1 million advertising campaign aimed at turning public opinion against licensing video gaming terminals statewide.

There's risk for the state as well. Remember that it was just five years ago when then-Gov. Tom Corbett pushed unsuccessfully to outsource management of the state lottery in a bid to increase its revenue. Corbett's reasoning was that without more money coming in, the coming demographic wave of older Pennsylvanians would swamp the lottery's capacity to fund services for them.

As the House proposes doubling down on gambling again, the bottom line is simple. For the state to win that bet, it has to create more losers.

Pat Howard can be reached at 870-1721. Send email to pat.howard@timesnews.com. Follow him on Twitter at twitter.com/ETNhoward.

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Pat Howard: Pa. House seeks to deepen state's gambling addiction - GoErie.com

Members of the Black Clergy of Philadelphia and Vicinity held a press conference at Mt. Pisgah AME Church, 428 N. 41st St. in West Philadelphia Monday to announce their opposition to plans to extend gambling in Pennsylvania.

Weve come today because we want to raise our voice about an issue which we believe will have a hugely negative affect on the quality of life of already challenged neighborhoods and communities, said Black Clergy President the Rev. Jay Broadnax.

Broadnax said on June 7, the House of Representative passed what he called sweeping legislation to expand access to video and internet gaming video within the state including airports, truck stops and other places with valid liquor licenses.

The state has set a goal of a maximum of 30,000 of these machines in 2018, 35,000 in 2019 and 40,000 in 2020, he said.

Broadnax said supporters of the legislation said that the increase revenue from passage of this measure would increase state revenue and close the budget gap.

Our first concern is how this will impact neighborhoods and communities, he said.

Currently the majority of gaming take place in casinos like Sugar House and Parx which, for some constitute a harmless evening out. With this new legislation gaming traffic moves directly into our neighborhoods, in bowling alleys, supermarkets and Stop n Gos, many which are already nuisances and sources of disruption.

The Black Clergy noted not only will this create incentives for local residents to misuse already scarce personal resources but will also pose the risk of increased loitering, noise and other nuisances in already challenged areas.

Were also concerned about what this sort of legislation and this sort of revenue raising means in the quality of lives of individuals, he said. The idea of depending and relying on vices, such as gambling, as the way to balance the budget does not bode well for the long-term health of families.

If passed, the Black Clergy said the ability to go to the corner Stop N Go as opposed to a casino would possibly have a direct impact on those who lack the wherewithal to travel to casinos.

While a few would benefit financially, having extended access to these devices would only serve to foster an increase in behaviors that could quickly turn addictive and place at risk the financial stability of families in our communities, Broadnax said.

Not only did the clergy express concerns about the impact of the legislation if ratified but they also expressed concerns about the intent of the proposal.

It seems as though some of our legislators want to balance the budget on the backs of those who could least afford it, reaching into our urban neighborhoods where the highest concentration of liquor license holding establishments are, rather than finding a way of gleaming state revenue from those who are far better able to pay.

Citing underfunded schools, oppressive poverty, rate of any major city and depressed neighborhoods, Broadnax said expanding gambling to local communities would add another hardship to already struggling neighborhoods.

The Rev. Donald D. Moore of Mt. Carmel Baptist Church asked Gov. Tom Wolfe would veto the measure which he says would have the potential of devastating local communities by compounding the burdens of residents who cannot even afford the necessities of life.

Its almost as if they are saying that if they are not going to the casinos, lets bring the casinos to the people, Moore said.

House Bill 271 passed the House of representatives by a vote of 102 89, this bill authorizes new gaming options throughout the state and authorizes the proposal of Video Gaming Terminals (VGTs), similar to slot machines, in such places as bowling alleys catering clubs, truck stops, restaurants, golf courses and other establishments with valid liquor licenses.

The book of Isaiah said that they will frame mischief using law, said Philadelphia NAACP president and minister Rodney Muhammad. This is an attempt to exploit an already weakened community and attack a vulnerable demographic.

I wanted to be here on behalf of the NAACP and all concerned stakeholders to be a part of this effort to resist this more demonic kind of legislation, he added.

Originally posted here:

Local Black clergy oppose expanding gambling - The Philadelphia Tribune

Ill admit it. I feel a bit hypocritical when I write about the problems with expanded gambling in Pennsylvania. Why? Because I freaking love to gamble.

Ive played poker since I was 9 years old; I love the game. I play fantasy sports baseball and football and at one time I even played fantasy golf. Las Vegas is absolutely one of my most favorite places on this planet, and an annual trip there is something I look forward to.

However, I have a different feeling when it comes to expanded gambling in states like Pennsylvania. Places where casinos are located near residential neighborhoods. Places where the dreams of striking it rich can be played out 10 minutes from your house. Places where its too easy to spend your paycheck on the dream of big bucks. Its become too easy to lose your money, and thats what I have a problem with.

And now, facing a nearly $3 billion budget shortfall, our state legislators are about to make it even easier to lose your cash in the name of revenue generation. Expanded-gambling bills have already passed in the state house and the senate. The bills would allow you to play casino games like poker, blackjack and slots, lottery games and fantasy sports from the comfort of your home. Additionally, one version of the bill would allow bars and restaurants to install their own video-gambling terminals like slots and video poker, and would permit gambling at airports. If this gambling bill passes, you wont have to make the onerous three-minute trip to the North Side to gamble. Christ, you wont have to even put on pants in order to lose your shirt.

None of these gambling options are good, but the worst in my experience are the terminals in bars and restaurants. Increased access is the obvious problem, but in places like West Virginia, expanded gambling like this over the years hasnt just resulted in a casino on every corner; its resulted in several on every block. I wrote about this issue in my very first City Paper cover story, in 2005. Slot machines were put into every business imaginable, from car washes to ice-cream shops.

During that time, I met a Weirton, W.Va., activist named Jody Kraina. She was fighting for reforms to the states gambling laws. She got nowhere fast. But she knew what she was talking about.

Look at Pennsylvania, says Kraina, spokesperson for Weirton-based RAGE (Residents Against Gambling Establishments). Theyre sitting where West Virginia sat years ago, allowing slots to help save racetracks. But they need to look very closely at where we are now. Once you allow those things in here, its Katie bar the door.

It took 12 years, but her premonition came true. Also, I wonder whether Kraina even realized the heights that expanded and online gambling would reach in cash-strapped states. Gambling halls in Pennsylvania once seemed like they would never materialize, but in 2004 in-state gambling was approved. Also since then, a lot of legislators have changed their tunes on gambling. Even Self-Righteous Mike Turzai is coming around, and he was staunchly against the first round of gambling legalization. Maybe hes had an honest change of heart or maybe his former chief of staff Krystjan Callahan, who is now a lobbyist for the gambling industry, has. Do with that information what you will.

But the reality is, the state needs revenue from somewhere, and Republicans are against raising traditional taxes to take the burden off Pennsylvanias hard-working families. Instead, theyre going to impose huge taxes on expanded gambling, and charge the suppliers of that service. Except theyre not.

Researchers at the University of Buffalo have done extensive research on the impact that gambling has on lower-income individuals. They began studying the issue when the Buffalo Creek Casino was being planned for construction in an area with high poverty rates. Among the findings: Populations already facing high poverty rates and inequalities, such as African Americans, have higher rates of problem gambling. A 1994 study of Wisconsin gamblers found that 53.7 percent of casino gamblers had an income below $30,000 per year, with 37 percent below $20,000 per year and 13.7 percent below $10,000 per year.

So what does that mean? It means, in essence, that expanded gambling is a tax. Its a tax on our poorest citizens. But this isnt the kind of tax that is likely to keep Pennsylvanias long-time legislators from getting re-elected. Its not a larger sales tax or an income tax, so most people arent going to make this an issue come election time. Expanded gambling is a safe bet for our state legislators; theyre essentially playing with what is known in casino parlance as house money. Its the rest of us who are going to crap out.

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Expanded gambling is a safe bet for Pennsylvania legislators - PGH City Paper

CHAMPAIGN There won't be any new video-gambling terminals in Champaign for the rest of 2017 after the city council voted Tuesday to extend a moratorium on video gambling until Jan. 23.

The temporary moratorium on installing and operating the terminals in newly licensed liquor-serving establishments was passed Feb. 21. It was first extended April 11 and would have expired July 18.

Video gambling is regulated in Champaign through liquor licenses instead of a specific video-gambling license, which Urbana uses.

Mayor Deb Feinen reiterated Tuesday that the moratorium's purpose is to allow time to discuss and analyze additional regulations on video gambling that aren't used by Champaign now.

Out of the 60 licensed video-gambling locations in Champaign, according to Illinois Gaming Board data, 28 are bars/restaurants, 17 are gaming-specific cafes/parlors and the rest are bingo halls/fraternal establishments, gas stations, bowling alleys, music venues, hotels or veterans' establishments.

"In a strip mall, there are two (gambling) cafes right next to each other," said council member Clarissa Nickerson Fourman. "This gaming thing is just not doing something great for our community, but I don't want to get rid of all of it."

City attorney Fred Stavins noted how the city previously limited places that sell alcohol with adult entertainment, which Fourman said is a similar situation.

Only council member Tom Bruno voted in opposition, which he has done on this issue before.

"Is it our place to say 'Now we have enough video-gaming outlets'?" Bruno asked. "We're stepping in to say 'We know better than you,' but if that's the only test, we ought to say 'You can't sell cigarettes or unhealthy food.'"

Council member Greg Stock said video gambling and other businesses like those offering payday and title loans are becoming predatory. He noted that he's only received positive feedback on the moratorium.

"Most of these gambling cafes we're talking about aren't locally owned," Stock said. "$14 million was lost from Champaign gambling last year, and most of that money didn't stay in the community."

Deputy City Manager Matt Roeschley said there will be a council meeting this fall to go over possible regulation methods.

If the council picks a method around then, he said there will be enough time to prepare it before the moratorium expires.

"I think council was pretty clear that the majority is interested in regulating video gaming in some way which we don't do now," Roeschley said, noting special concern over the gambling parlors/cafes.

"We are currently at cap," Feinen said. "If a bar or tavern owner wanted to come to Champaign, there is not a (liquor) license to be had ... so maybe we should have a gaming license."

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Champaign council extends video-gambling moratorium till Jan. 23 - Champaign/Urbana News-Gazette

GROSSE POINTE, Mich. (WJBK) - Nick Cinqueranelli has a good job, lots of friends and a beautiful family but he's behind bars accused of robbing several local banks.

"He unfortunatley is addicted to something in this case is worse than drugs," said David Griem. "And that's gambling."

Griem never thought this Cinqueranelli would be his client, he's known him since he was a kid - and the 27-year-old had never been in trouble with the law - until last week when the Grosse Pointe native allegedly robbed the Chase Bank near his family's home Wednesday evening.

"He handed the teller a note stating he had a gun and to put 100s and 50s into an envelope which the teller did," said Chief Stephen Poloni, Grosse Pointe Department of Public Safety. "The teller noticed he had been in the bank twice earlier that day without making any transactions also. So he was recognized but he escaped at that point."

Police say he only got away with about $2,000 and it wasn't nearly enough - so he was back at it the next day.

On Thursday police say he presented another note to another teller at the Fifth Third Bank in Grosse Pointe Farms. He left before getting any money - it's alleged Cinqueranelli stopped outside another bank in Grosse Pointe but didn't go in, before heading home .

Someone had called police with his license plate and police spotted him.

"The lead detective on the case was in fresh pursuit, chased him into the house and arrested him at that point," said Poloni.

"It's potential life imprisonment," said Griem.

All, his attorney says, over gambling. Cinqueranelli bet on sports and owed a total of $30,000 to two professional gamblers and one was threatening to kill him and his family.

Cinqueranelli was so desperate, Griem said, he called several friends the day before the bank robbery trying to get a loan.

"He did fear for his life," Griem said. "Nick went to a number of different people trying to borrow money to pay off the gambling debt."

When that didn't work, Griem says his client did the unexpected.

"It's inconceivable that this happened," Griem said. "I mean this is a good kid who had done everything right for 27 years. And then - like that - it's all gone.

"Sadly he's going to pay a significant penalty for those actions."

Cinqueranelli is out on bond he's due back in court in July.

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$30K in debt, man threatened by pro gambler arrested for bank robberies - Fox 2 Detroit