Category Archives: Gambling

William Hill is among the online bookies to be registered in the Northern Territory, where the tax and regulatory environment is more favourable.

The South Australian government will introduce from July a point-of-consumption tax to claw back some of the gambling tax revenue it is seeing disappear over the border.

The new tax is a reasonable response to a growing problem, and probably wont send bookmakers to the wall. But it does highlight the current regulatory mess surrounding how we tax internet wagering in Australia.

In 2008, the High Court decided it was unlawful for a state government to protect local wagering operators from the emerging competition provided by online bookmaker Betfair.

The case turned on Section 92 of the Constitution, which provides for free trade between the states. What the decision meant was internet bookies licensed in one Australian jurisdiction (the Northern Territory, for example) could offer their wares to anyone living anywhere in Australia. It led to dramatic increases in the promotion and advertising of internet betting, and also to very rapid growth in that commodity.

One of the consequences of this has been a decline in racing revenue going to governments. In 1990-91, the SA government derived A$52.6 million in racing tax revenue. By 2012-13, this had declined to less than A$1 million (both numbers in real terms, at 2014-15 values).

Meanwhile, in the NT, growth in wagering revenue for both racing and sports betting has been exponential.

People in the NT have not taken to racing and sports betting like theres no tomorrow. But the NT has become home to most of Australias internet bookies, thanks to a low-tax regime and relatively loose regulation.

There are 18 internet bookies registered in the NT, including William Hill, CrownBet, bet365 and Ladbrokes. They get most of their revenue from other states including SA.

They also dont pay a lot of tax. In 2014-15, with total wagering expenditure of A$937.6 million, the NT government collected taxes amounting to a little over A$10 million. Thats a bit less than 1.1% of the money gamblers lost. So, its easy to see why the bookies like the NT.

The SA government has decided to try to get a slice of that action, or to dissuade the bookies from marketing their wares into the state or perhaps a bit of both.

State governments have to pick up the pieces when their residents suffer gambling harm and its effects. This includes domestic violence, job loss, suicide, mental and physical health problems, and so on. Its pretty galling when another state takes all the benefits (at a discount rate) and doesnt contribute to the costs involved.

The SA tax is intended to take 15% from net wagering revenue (that is, gambler losses).

All wagering operators will pay the tax not just the internet bookies. So, it may not amount to a discriminatory or protectionist measure. This is important: if it is discriminatory, the High Court would probably find it unconstitutional, as the Western Australian governments actions in the Betfair case were deemed to be.

It is abundantly clear that the federal government has the power to regulate internet gambling, via the Constitutions telecommunication provision. It has adopted legislation that does just that, although in a minimal way.

The federal legislation provides for bookmakers licensed in any Australian jurisdiction to be able to offer wagering services throughout Australia. Their actual regulation, however, is left to the state jurisdictions. This is how weve ended up in the current mess.

The federal government recently convened a ministerial meeting to propose new consumer protection regulations to the states. The government has sensibly realised that inadequate regulation at state level has to be tackled.

But this leaves at least two key issues unresolved.

The main concern of ordinary people when it comes to internet gambling is the continuing bombardment of bookies ads accompanying sports broadcasts. These are consumed by millions of children because there is an exemption for sport in the TV broadcast self-regulation code. This needs to be tackled, and the federal government is the only jurisdiction with the clear authority to do so.

Also, the tax regimes of the various states differ; the NT clearly leads the race to the bottom. The federal government can regulate and tax the bookies uniformly, if it wishes, and distribute the revenue according to a GST-style formula or some variation thereof.

That might diminish the NT revenues a little. But it would at least regularise the industry, enable uniform regulation and stop the states trying to pinch each others revenue base.

Earlier this week, online bookmaker CrownBet announced a deal with ClubsNSW to provide internet wagering with the co-operation of clubs, which would recruit their members to the cause. In return, the deal would allow the clubs to get a slice of the action. If this works, club-based TABs will see their revenue decline.

In effect, this means a transfer of revenue from the New South Wales government to the NT government. No state wants to see its revenue base decline particularly when the jurisdiction benefiting doesnt even tax (or regulate) its bookies as well as it might.

Maybe its too much to ask for a sensible national gambling policy with uniform tax rates and reasonable consumer protection and harm-prevention measures in place. But allowing state governments to regulate internet-based services seems like a fairly 19th-century approach to regulation. We can probably do better than that.

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South Australia's gambling tax highlights the regulatory mess of online betting - The Conversation AU

Major League Baseball has always taken a hard stance against gambling of any kind. But MLB commissioner Rob Manfred has indicated that the league might be open to softening its stance on the issue.

There is this buzz out there in terms of people feeling that there may be an opportunity here for additional legalized sports betting, Manfred told Yahoo! Finance on Wednesday. We are reexamining our stance on gambling. Its a conversation thats ongoing with the owners.

For a league that seems desperate to attract younger fans to the game, finding a way to allow legalized betting on baseball sounds like a no-brainer.

When fans bet on games, Manfred continued, it can be a form of fan engagement, it can fuel the popularity of a sport. We all understand that.

Fans are betting on sports regardless of whether its legal or not, which is why Manfred is open to a discussion about revising MLBs policies on gambling.

Sports betting happens, Manfred said. Whether its legalized here or not, its happening out there. So I think the question for sports is really, Are we better off in a world where we have a nice, strong, uniform, federal regulation of gambling that protects the integrity of sports, provides sports with the tools to ensure that there is integrity in the competition Or are we better off closing our eyes to that and letting it go on as illegal gambling? And thats a debatable point.

Times have certainly changed since Major League Baseball first adopted an official set of rules about gambling in the sport back in 1927. Legalized gambling in many forms has become commonplace in todays society.

NBA commissioner Adam Silver has been a vocal proponent of legalizing regulated sports betting and recently said he believes gambling is good for business. Manfred seems to agree with his peer in basketball, saying that Silver has framed it the best.

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MLB commissioner admits the league is rethinking its stance on gambling - FOXSports.com

Two men who admitted to running an unlicensed betting website have been fined after pleading guilty to gambling offences.

During a hearing at Birmingham magistrates court, Craig Douglas, 33, of Ilford, Essexa YouTube gamer who's alias is "NepentheZ"and Dylan Rigby, 34, of Colchester, Essexwho founded FUT Galaxyadmitted to operating an unauthorised site that allowed video gamers to place bets using virtual currency.

TheFutGalaxy.com site, which is not affiliated with EA Sports or the FIFA series, allowed users to buy virtual currency, called FUT coins, for use in the FIFA series of video games, specifically in the FIFA Ultimate Team mode, said the Gambling Commissionwhich brought the prosecution.

Customers could then use those FUT coins to gamble by placing bets on matches that took place in the game. The winnings could then be converted into FIFA coins, another virtual currency used in the FIFA series, which in turn could be sold for real money on an unauthorised secondary market in which Rigby also had an interest. This also violated EA's Terms of Service agreement.

"FutGalaxy.com offered gambling products including sports betting, a jackpot lottery style game, and a higher or lower style game," the UK's gambling watchdog said. "The full extent of the gambling operation facilitated and advertised by the defendants was revealed after the commission executed search warrants at the defendants' homes and seized a number of electronic devices and company documents."

Rigby has been ordered to pay 174,000 in fines and costs, while Douglas has been saddled with a 91,000 fine, after both men pleaded guilty to offences under the UK's Gambling Act.

"This was one of the most serious cases that has been investigated and prosecuted by the commission," the watchdog's chief Sarah Harrison said.

"Its gravity is reflected in the significant financial penalties imposed by the judge. The defendants knew that the site was used by children and that their conduct was illegal but they turned a blind eye in order to achieve substantial profits. The effect on children of online gambling was rightly described by the court as 'horrific' and 'serious.'"

The commission has been eyeballing the rise of online video game gambling.

In a series of tweets following the fine, Douglas said: "I owe a huge apology to my family and close friends for putting them through this process, and appreciate all those that stood by me... I also owe a huge apology and debt of gratitude to my loyal supporters. Even if this is the end of our journey together, I'm grateful."

This post originated on Ars Technica UK

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YouTubers fined for running illegal FIFA 17 gambling site - Ars Technica

LAS VEGAS (KSNV News3LV)

Ever since Las Vegas legalized gambling in '31, you've had to be 21 to place a bet.

86 years later, the assemblyman in the cowboy hat says, I think if you're old enough to go to Afghanistan, or Yemen, or Iraq and fight - if you're old enough to drink in some states - if you're old enough to vote - then you ought to be old enough to gamble, if that's what you want to do, says Jim Wheeler, a Republican who represents Minden, NV.

Wheeler's bill was one of a flurry introduced on Monday, the first day of the session.

Nationwide, while a few states allow 18-year-olds to gamble in a casino.

Most set the legal age at 21.

Wheeler admits his bill could cause complications. If gambling becomes legal at 18, our legal drinking age is still 21.

So it's going to make it a little tougher on the cocktail servers, for instance, to check ID's. But the fact is they're supposed to be checking anyway, Wheeler says.

The Assemblyman says hes open to feedback.

News 3 received some on Wednesday from Nevada's gaming industry.

"We are not aware of any compelling benefits from doing this, yet there are uncertain risks. Absent a clear policy rationale, we are opposed," says Virginia Valentine, President of the Nevada Resort Association.

Wheeler says he introduced the bill to start the discussion. Well, the fact is in this business you actually have to put a bill out before you get comments on it, he told me.

He also says if the proposal has negative consequences, he wants to hear about those, too, especially from those who treat problem gambling.

"I definitely think this could lead to more problems as far as problem gambling, Nick Tangeman, Clinical Director at Center Youth Services, told me. Tangeman works with young people fighting issues with addiction. Those are very formative years for a teenager. Developmentally, the teenage brain is primed for addition, he says.

I just have a little concern we'd be making available to a risk-taking group of people a new risk activity, that most of them would handle but some would not do well with, says Dr. Robert Hunter, the founder of Las Vegas Problem Gambling Center.

For his part, Wheeler is going into this eyes open.

This bill very well may not go anywhere, he says.

The idea was floated in 2008 as a way to attract new gamblers to help Nevada ride out what was a growing recession.

It went nowhere.

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Proposal to lower legal gambling age gets cold reception from gaming industry - News3LV

R.J. Marx/The Daily Astorian

The owner of the former Gearhart Grocery was denied in his bid to install four lottery machines in a new brew pub. He is seeking to reverse that decision in an appeal.

R.J. Marx/The Daily Astorian

Pub owner Terry Lowenberg at the Planning Commission hearing in January.

GEARHART The owner of a brew pub at the former Gearhart Grocery has accused the city of rejecting video lottery machines because of a bias against gambling.

In an appeal delivered to the city Tuesday, Terry Lowenberg states the denial of a conditional use permit does not appear to be based on any relevant fact, but rather on a prejudice against gaming and the people that participate in gaming.

Lowenberg states that city code does not exclude lottery machines, gambling or gaming.

Last year, Lowenberg won approval for a brew pub and deli on Pacific Way, but at a Planning Commission hearing in January he told commissioners he needed the lottery machines to survive economic hardship in winter months. The machines four to start, with a maximum of six would be placed in an enclosed area next to the deli separated by an 8-foot wall.

Lowenberg closed his grocery store in November after citing competition from larger supermarkets in the region.

Simply exist

In his January request, Lowenberg said he needed the lottery machines to simply exist, and if the permit was not granted, he would end up having to close the store.

Commissioners denied the request 5-2. They said the lottery machines could open the door to gambling machines downtown, and pointed to video gaming establishments on nearby U.S. Highway 101. Others were skeptical that video poker could prop up Lowenbergs failing business.

Two commissioners, Virginia Dideum and Jeremy Davis, praised the brew pubs design plan and opposed the denial.

Gambling and drinking

Lowenbergs appeal takes City Planner Carole Connell to task for failing to provide evidence for her staff report recommendation to deny the machines, based on what she said were studies linking gambling and drinking. The city finds gambling stations that encourage alcohol consumption do not coincide with the intent of a neighborhood cafe as defined.

This is clearly a highly-biased opinion from someone who is adamantly against the proposed use rather than independent review of an application, Lowenberg wrote. It seems the planner is trying to find arguments against the lottery machines by linking gambling and drinking, he said.

Lowenberg disputes the planners contention that lottery machines are not a use devoted to the use of food while customers are seated at tables.

Lottery dollars support many resources in Oregon and locally, he said, and if customers want to participate in lottery while waiting on a meal, this is good for Gearhart and good for Oregon.

City Administrator Chad Sweet said the City Council will set a date to hear the appeal at a public meeting. A decision must be rendered by March 28, within 120 days of the original application.

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Is gambling 'good for Gearhart'? - Daily Astorian

Gamblers placed wagers totaling a record $132 million on Super Bowl LI Sunday at Nevada sports books. However that amount represents a drop in bucket compared to the $4.5 billion of bets placed illegally on the game.

Nevada is currently the only state where gambling on sports is legal, but the black sports betting market is estimated to account for 97% of all wagers placed, according to theAmerican Gaming Association.

These bettors rely on offshore sports books, online means and illegal bookies to satisfy their tax-free gambling needs thanks to the Professional and Amateur Sports Protection Act signed in 1992 that made Nevada the only state to legally place bets on sports.

"Vegas currently has a monopoly on sports betting," Erik Balsbaugh of the American Gaming Association toldTheStreet. "The internet has changed a lot of things in the industry though, and it's time for the U.S. to catch up."

The sportsbook from companies like MGM Resorts (MGM) andLas Vegas Sands (LVS) on the Las Vegas Strip comprises between 1.5% and 2% of total gaming revenue annually, according to Union Gaming analyst John DeCree.

Betting on the Super Bowl, both legal and illegal, was up year over year in spite of the fact that viewership for the big game was down from a year ago.

Legal sports gambling is good for the game, Balsbaugh argued, because people with something riding on the game tend to be more attentive to the games and are more likely to even watch the commercials during a broadcast.

Continued here:

Super Bowl Betting Tally Helps Make the Case for Legalized Sports Gambling - TheStreet.com

BOISE, Idaho (AP) The ongoing battle over appropriate Indian gambling is once again coming to a head in the Idaho Legislature, with both sides preparing to rip open old wounds.

Rep. Tom Loertscher, a Republican from Iona, introduced legislation Wednesday that would ban lucrative video gambling terminals inside the tribes' casinos. The proposal was tepidly accepted by the House State Affairs Committee, with some lawmakers raising concerns about the ripple effects of the bill.

"We've been bothered by several gambling issues over the last few years," said Loertscher, chairman of the House panel. "This is a major policy thing that we need to address."

The move comes two years after lawmakers banned the use of so-called historical horse racing due to fears that the electronic betting machines resembled slot machines. The repeal effort generated outrage from the horse racing industry. It claimed the tribes were unfairly trying to squelch competition because they have a monopoly on video gambling in Idaho.

Yet the fight over Indian gambling has been a sore subject since 1988 when the Idaho Lottery was established.

Under federal Indian gambling law, Idaho tribes can only operate their own bingo and lottery operations as long as the state has already authorized that form of gambling. This has created lingering tension between the state and tribes over what types of gambling devices are legal.

According to the tribes, they operate what the state allows: A video form of the state lottery.

However, prolonged disagreement led the tribe to successfully push a 2002 ballot initiative amending Idaho's law to say as long as the tribe's machines do not have a lever or dispense coins only cash out tickets then the machines could not be defined as a slot machines and are not a simulation of casino gambling.

Then in 2006, the 9th Circuit Court of Appeals upheld the tribes' ability to offer video gambling devices after the state sued. The court's decision also influenced a 2009 ruling where the Idaho Supreme Court declared Idaho could no longer sue regarding the constitutionality of the tribes' machines.

Loertscher's bill would remove a key section of the law amended in 2002 so that even if the tribe's machines do not have a lever or dispense coins, they would still be banned from possessing slot machines. It's a subtle difference, but one that would could potentially upend the entire system.

"This issue has been addressed in the judicial branch and now they want to get the Legislature involved," said House Assistant Majority Leader Brent Crane, R-Nampa, who said he only voted to introduce the proposal to learn more about the issue. "I'm not convinced that's going to happen."

Other lawmakers contend that the Idaho Constitution outlaws casino-style gambling but claim tribes are violating that ban due to a loophole in the law.

"We simply can't have any statute that would attempt to override the constitution," said Rep. Steven Harris, R-Meridian, who has supported other efforts to limit gambling in Idaho this year.

For the tribes, the issue comes down to protecting their sovereignty.

"This is highly unnecessary," said Rep. Paulette Jordan, D-Plummer, a member of the Coeur d'Alene Tribe, who voted against introducing Loertscher's bill. "I don't believe this bill will make it out of committee and I would urge the chairman to reread our laws."

A full hearing for the bill has not been scheduled.

Read more:

Idaho House panel introduces bill limiting Indian gambling - Virginian-Pilot

Defense Department datashows that 514 active duty military service members and Coast Guard and 72 Reserve members were treated for or diagnosed with a gambling disorder from 2011-2015, according to a Government Accountability Office report.

Though this number represents only .03 percent of the active and reserve population, the GAO, a federal agency that provides oversight and investigative services for Congress, wants the military to get more serious about identifying and treating gambling addiction.

Other organizations have placed the number of at risk active duty service members much higher. The National Council on Gambling Problemsays36,000 active duty troops meet the criteria for gambling addiction.

"Previous surveys found average rates of gambling problems among active duty personnel at 5%, approximately twice the average civilian rate," Executive Director Keith Whyte told Military Times.

Adding to the dilemma, nearly 3,000 slot machines are available to soldiers deployed to bases around the globe, accumulating roughly $539 million in profits between 2011 and 2015, according to the GAO report.

"At the very least, this jackpot comes with an obligation to minimize harm related to gambling addiction. When DoD promotes and profits from slot machines they have a high obligation to take extensive measures to treat military personnel who develop gambling problems," Whyte said.

Currently, the military does not provide annual screenings and its present medical screening process does not include questions that could indicate susceptibility to gambling problems, as it does for other addictive disorders. They do not screen for gambling disorder because they focus on mental-health disorders that are high risk to overall readiness, high volume and have validated measures for assessment, according to the GAO report.

However, gambling disorders can have a resounding impact on military operations. The preoccupation with gambling, financial hardship and increased risk of suicide can pose a risk to individual readiness, the report argues. The service branches provide guidance on substance abuse for medical and non-medical staff, "however, it refers only to problematic substance use," GAO said.

The GAO recommends annual screenings to identify gambling addiction and updating policy guidance. DoD and Coast Guard officials have agreed to update its guidance on gambling disorders but have rejected calls for annual screenings, citing the low prevalence of gambling addiction in the military. "It is impractical to screen for every low prevalence disorder," DoD officials said in a response to the GAO report.

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Federal oversight agency wants the military to screen for gambling addiction - Military Times

As food containers made of polystyrene continue jamming San Diegos landfills, a maker of the ubiquitous plastic has been pouring money into the Greater San Diego Chamber of Commerces political action committee at a record-setting pace.

A January 25 disclosure filing with the city clerks office shows that Dart Container Corp. of Mason, Michigan, kicked in another $20,000 to the PAC on October 25, matching an earlier $20,000 it gave in the first half of 2016. Dart wants recycling considered before San Diego bans the troublesome material, an option the city has resisted. To make its point, the firm has retained the services of lobbyist Clarissa Falcon to include recycling of polystyrene food containers in the Citys Zero Waste Plan.

Other special interests kicking in for the chamber PAC include LHR Investment Company, backer of the failed Lilac Hills Ranch ballot measure, with $15,000, on October 28 and Walmart Stores of Bentonville, Arkansas, $10,000 on October 27. Among the expenses listed for the political action committee was a $7500 consulting fee paid to Stephen Puetz, chief of staff to Republican mayor Kevin Faulconer. The candidate drawing the most cash from the group, per the filing, was failed GOP city attorney hopeful Robert Hickey, who lost out to Democrat Mara Elliott.

The GOP Lincoln Club collected a total of $199,185 during the period from October 25 to the end of the year, finishing the 12-month period with a total of $1,097,123 in total contributions and an ending cash balance of $41,338. Among the donations was $5000 received on October 25 from LE Gaming. The operation belongs to Certified Player Corporation of Placentia, which provides so-called third party proposition players, who serve as bankers in cardroom games, including those offered at Chula Vistas Seven Mile Casino, per its website.

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Gambling and plastic politics - San Diego Reader

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WASHINGTON, D.C. - A new report from theUnited States Government Accountability Office is recommending that the military screenits members for gambling disorder addiction.

The government watchdog agency released its report on January 31st, noting Department of Defense and Coast Guard"non-medical personnel do not have clear guidance addressing gambling disorder."

According to data from the Department of Defense, "less than 0.03 percent of the average number of service members in each yearwere diagnosed with gambling disorder or were seen for problem gambling in fiscal years 2011 through 2015 in the Military Health System."

While the GAO report acknowledges that figure is low, it stated "without explicitly including gambling disorder in DoD and CG guidance on substance use, DoD and the CG may not being able to identify and provide appropriate treatment and counseling to DoD and CG service members afflicted by gambling disorder and mitigate or prevent individual readiness issues."

The GAO report makes eight recommendations, including that the Department of Defense incorporate gambling disorder questions in a systematic screening process.

In its response, the Department of Defense concurred with recommendations about updating guidance, but did not agree with incorporating questions into ascreening process.

"There is no evidence to suggest that gambling disorder is a high prevalence disorder in the DoD, and it is impractical to screen for every low prevalence disorder," the Department of Defense wrote in comments to the GAO recommendations.

It goeson to saythat there are multiple mental health disorders with similar or higher prevalence such as Bipolar Disorder and Obsessive Compulsive Disorder, which are not routinely screened.

Keith Whyte is the Executive Director of the National Council on Problem Gambling, a non-profit that is neutral on legalized gambling.

"We are neither for nor against, we just want to help people who may have a problem," Whyte told News 3's Todd Corillo Tuesday.

Whyte says the NCPG has been advocating for better screening in the military for the past decade.

"The military surveys of behavioral health used to include gambling addiction questions and those questions were returning rates of up to 5% of active duty troops who were meeting criteria for a gambling problem," he stated.

According to the NCPG, the rate of military members impacted is low now because it is based only on those who seek treatment and not on a general screening.

The NCPG argues that because the military generates revenue from Department of Defense run slot machines overseas, they have a greater obligation to screen service members.

"If you are providing, promoting and profiting from slot machines at overseas bases, youve got a higher ethical and economical obligation to take care of the health of your service members," Whyte argues.

Data in the Government Accountability Office report shows that the Department of Defense generated $538.9 million in revenue from DoD run slot machines on military installations overseas in fiscal years 2011 through 2015.

You can read the entire report from the GAO here:

DOD and the Coast Guard Need to Screen for Gambling Disorder Addiction and Update Guidance

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GAO report recommends military members be screened for ... - wtkr.com