A Franklin County Circuit Judge upheld a Kentucky law that bans “gray machines,” slots-like devices that pay out money. The ruling was announced on June 28 and gave state officials a boost in their effort to rid convenience stores, gas stations and bars across Kentucky of the machines.

Judge Grants Summary Judgment in Favor of Kentucky’s ‘Gray Machine’ Ban

In his decision, Judge Phillip Shepherd granted Attorney General Russell Coleman’s request for summary judgment, meaning he decided the case without going to trial. Coleman praised the ruling, noting the vital role of the Legislature in protecting public interests, as reported by the Associated Press. He commended lawmakers for their bipartisan action against machines often alleged to have tenuous legal status.

The so-called gray machines triggered considerable controversy during this year’s legislative session. They were installed at various locations statewide and drew support as well as opposition. Advocates described them as valid “skill games” and put forward alternate legislative proposals to regulate and tax them as such. Critics warned they would enable the biggest expansion of gambling in Kentucky history.

ARKK Properties led the legal challenge along with other stakeholders including Pace-O-Matic, maker of the popular Burning Barrel machine. The lawsuit raised several arguments against the ban. ARKK Properties together with the other stakeholders claimed the ban violated free speech rights, was arbitrary, and impaired contracts, among other points. 

Judge Shepherd dismissed all these arguments, stating that expecting immunity from regulation for machines operating on the fringes of legality was unreasonable given Kentucky’s history of stringent gambling laws.

Court Decision Brings Closure to Contentious ‘Gray Machine’ Debate in Kentucky

House Bill 594, which initiated the ban, had a tumultuous journey through the legislative process before becoming law. Despite intense lobbying on both sides, it cleared both chambers with overwhelming support and Gov. Andy Beshear signed it. House Speaker David Osborne said he supported Shepherd’s ruling because it reaffirms that these games are illegal and cannot be operated without proper oversight. Regarding the next steps, J.Guthrie True, attorney for plaintiffs indicated an appeal may be coming.

In recent years, Kentucky has passed other significant gambling legislation, including measures that secured the legal status of historical racing machines at horse tracks. These machines, which allow betting on past horse races, have become a substantial revenue source for the tracks, helping to enhance the state’s horse racing industry.

The fight over gray machines has been costly and continued, taking place both in courtrooms as well as in political arenas. This issue involved more than just legal disputes – there were significant political moves made and heavy lobbying done around this subject, which points to how serious people take gambling regulation in Kentucky.

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Australia has introduced a new measure banning the use of credit cards for online gambling, aiming to ensure that players only gamble with their own money. This significant change has been in the works since 2021, with Responsible Wagering Australia (RWA) and its members playing a crucial role in advocating for and developing this ban alongside the Commonwealth Government and the financial services industry.

Industry Support for the Ban

Responsible Wagering Australia CEO Kai Cantwell expressed the importance of this measure, emphasizing that it helps individuals manage their gambling more effectively. “This is an important measure to protect customers, making it easier for people to stay in control of their own gambling behaviour,” Mr. Cantwell stated. He highlighted that this ban complements the existing suite of safer gambling tools provided by RWA members.

Cantwell also pointed out the need for uniform consumer protection measures across all forms of gambling. “RWA and its members support the extension of this measure to all forms of gambling that have been exempted from the ban such as lotteries and keno. If consumer protection measures aren’t consistent across all forms of gambling, it will incentivize vulnerable Australians to move to less-regulated types of gambling, where they are more at risk of harm.”

Enhanced Consumer Protection Tools

RWA members are committed to ensuring that gambling is conducted safely and responsibly. They offer a variety of tools to help users manage their gambling activities more effectively. Many of these tools have been integrated into the National Consumer Protection Framework (NCPF) by the Commonwealth Government.

Cantwell noted the significance of the NCPF in maintaining a safe gambling environment. “The NCPF is expected to be evaluated shortly and we look forward to engaging in this process to ensure that consumer protection tools are fit-for-purpose and support a safe and sustainable regulated gambling environment,” he added.

This credit card ban marks a crucial step in protecting Australian consumers from the potential harms of gambling by preventing the use of borrowed money for such activities. It underscores the commitment of both the government and the industry to foster a safer and more regulated gambling environment.

Source: “Australia Enforces Credit Card Ban for Online Gambling”, European Gaming, June 12, 2024.

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The Swedish Trade Association for Online Gambling (BOS) has formally submitted its statement to the Ministry of Finance regarding the memorandum titled “A new ban on gambling on credit,” which proposes a ban on the use of credit cards for gambling. BOS has firmly rejected this proposal, citing significant negative consequences for channelization.

Gustaf Hoffstedt, Secretary General of BOS, explained the association’s stance [pdf], emphasizing that such a ban would likely push consumers towards unlicensed and illegal gambling platforms, which currently constitute almost half of the Swedish online casino market. Hoffstedt stated, “In the name of consumer protection, Sweden should not add new restrictions on consumers that still place their bets on the legal gambling market.”

Alternative Proposal Suggested by BOS

If the government decides to proceed with the ban, BOS proposes an alternative approach: instead of placing the obligation on gambling operators, the responsibility should be on credit card issuers. Under this model, the Swedish Financial Supervisory Authority (Finansinspektionen) would supervise credit card issuers to ensure they do not process payments for gambling companies, including those operating illegally or without a license.

BOS argues that this approach would more effectively prevent the use of credit cards for gambling while avoiding further burdens on licensed operators. Hoffstedt pointed out that licensed gambling operators are already heavily restricted and additional limitations could drive more consumers towards the unlicensed market, undermining consumer protection goals.

BOS’s Rationale for Rejection

BOS has consistently supported measures to prevent gambling on credit. However, the association draws a line at banning credit cards, which are a common and regulated form of payment. “At least one credit check is conducted before issuing a credit card,” Hoffstedt noted, “and in most cases, credit is repaid monthly, accruing no interest.”

The association also highlighted that credit card usage for gambling is on the decline, with many consumers shifting to other payment methods like Swish. Those who do use credit cards for gambling are typically older with more organized finances, and the prevalence of problem gambling among them is relatively low.

The biggest challenge, according to BOS, is the prevalence of unlicensed gambling, a view shared by Finance Market Minister Niklas Wykman. Hoffstedt stressed that restrictive measures against licensed operators, such as the proposed credit card ban, combined with inadequate countermeasures against unlicensed operators, have led to a significant outflow from the legal gambling market. “This must end,” he said, emphasizing that enhancing the attractiveness of the licensed market is crucial for effective regulation.

Concerns Over Government’s Approach

BOS expressed concern over the government’s tendency to exempt state-owned or controlled gambling operators from new restrictions, creating an uneven playing field. The association fears that this might undermine competitive neutrality and consumer confidence.

In conclusion, Hoffstedt reiterated BOS’s position that the proposal to ban credit cards for gambling should be rejected. He emphasized that effective regulation should include measures to counteract unlicensed gambling while supporting the legal market.

“Sweden’s largest online casino operator is likely unlicensed,” Hoffstedt noted, underscoring the need for balanced regulation. BOS believes that imposing the ban on credit card issuers rather than gambling operators is a more effective and fair approach to achieving the intended consumer protection goals.

Source: Press release: BOS rejects the proposal A new ban on gambling on credit. BOS. May 23, 2024.

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The Swedish Gambling Authority (Spelinspektionen) has formally endorsed FI2024/00442, a government measure that seeks to prohibit the use of credit cards for gambling. This proposed ban has been under discussion for several months and has now garnered the regulator’s official support.

Camilla Rosenberg, director general of Spelinspektionen, stated that the authority believes the ban on gambling with credit should apply universally across all gambling forms. Additionally, the authority suggested the need for the ability to grant exceptions in certain cases.

In its official statement, Spelinspektionen affirmed its support for the proposal. However, the Swedish trade association BOS criticized the measure, arguing that it could severely impact the legal gambling marke. Despite this opposition, the regulator acknowledged that there is no conclusive evidence on how the measure would affect operators who sell tickets digitally.

One concern raised was the ambiguity regarding how the ban would impact players using account credits for wagers. Given that credits linked to a bank account are also considered account credits, Spelinspektionen noted that this could imply licensees must ensure that credit limits are not utilized for payments made with debit cards.

However, the original proposal does not mandate licensees to investigate such matters. Therefore, Spelinspektionen concluded that it does not interpret the current wording as requiring gambling companies to verify whether users’ debit cards have a credit limit.

Implementing a ban on credit card gambling would place Sweden in line with other modern regulated markets such as Australia, Ireland, Norway, and the United Kingdom.

Spelinspektionen concluded that the proposal outlined in the memorandum is consistent with the regulator’s recommendations.

The Regulator Continues Market Oversight

In other developments, Spelinspektionen recently banned another skins gambling website. The company, WiseAvant OÜ, was found to be providing games of chance to Swedish customers without the necessary license.

This action follows a series of crackdowns by the authority on unlicensed operators. A few months ago, Spelinspektionen took similar actions against three companies: Galaktika NV, Newera Frozen PTE Limited, and Aprodi Ltd, two of which also offered skins gambling.

In related news, ATG’s chief executive officer, Hans Lord Skarplöth, recently suggested that the government might reconsider its proposed Gross Gaming Revenue (GGR) tax hike. The proposed tax increase has been controversial, with BOS warning that it could benefit the black market if implemented.

Source: “Spelinspektionen Approves Ban on Credit Cards in Gambling”. Gambling News. May 22, 2024.

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As reported by CasinoNieuws.nl, the Netherlands is set to alter its gambling tax rate from 30.5% to 37.8%, should the latest coalition agreement be implemented.

This change is expected to provide the state treasury with an additional €202 million (£173.3m/$219.6m) annually in gambling tax contributions. The agreement involves the PVV, VVD, NSC, and BBB parties.

In November, seven political parties announced their goal to generate an additional €200 million to €400 million in state contributions through an increased gambling tax. The coalition agreement, titled “Hope, Courage and Pride,” is scheduled to be presented today (16 May).

Tax Increase Amid Online Slot Ban Controversy

The proposal to raise the gambling tax comes on the heels of the Netherlands’ house of representatives voting to ban online gambling advertising and “high-risk” gambling, which includes online slots. The house voted to ban all targeted advertising, having already prohibited untargeted advertising. This new ban, effective from July 2023, encompasses mass advertising through television, radio, and sports sponsorships.

Additionally, the house voted for a ban on online slots due to concerns over the lack of player control in such games. These motions were put forward by Socialist party MP Michiel van Nispen. Although the bans have passed a house vote, the Netherlands’ minister for legal protection, Franc Weerwind, will review the law and decide whether to approve the changes.

Industry Opposition to Proposed Bans

The proposed changes have faced significant opposition from the industry. The Netherlands Online Gambling Association (NOGA) argues that these bans would push players towards the black market. NOGA described the proposed changes as “thoughtless and irresponsible,” with its director, Peter-Paul de Goeij, expressing concerns that the motions are based on inaccurate data.

“A majority in the house of representatives is taking an expensive gamble with online players who are now consciously opting for the legal offer,” said De Goeij. “If we soon find that politicians have made the wrong decisions too hastily, the house will be responsible for the negative consequences.”

Implications for the Dutch Gambling Market

The increased tax rate and the new regulations reflect the Dutch government’s attempt to regulate the gambling market more stringently. While the tax increase aims to boost state revenue, the advertising and slot bans are intended to mitigate the risks associated with gambling. However, the controversy and opposition suggest that the road to implementing these changes may be fraught with challenges.

As the situation develops, the Dutch gambling industry will closely watch the minister for legal protection’s decisions, which will significantly impact operators and players alike. The balance between regulation and maintaining a healthy market will be crucial for the future of the Dutch gambling landscape.

Source: “Netherlands coalition agreement proposes increased gambling tax of 37.8%”. igamingbusiness.com. May 16, 2024.

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High-profile Bulgarian media companies have raised their voices in opposition to a proposed ban on gambling advertising, expressing concerns over its potential impact on media revenue streams and journalistic freedom. They criticized the government for lacking foresight, alleging that some parties would use the situation to influence the media space before the upcoming elections.

The Changes Could Do More Harm than Good

The new bill calls for a prohibition on gambling advertisements across various media platforms, including television, radio, newspapers, and online sites. While outdoor advertising in specific locations would still be permitted, the proposed ban has drawn criticism from media industry stakeholders who believe the bill does not aim to protect consumers but to suppress freedom of speech.

Former prime minister Nikolai Denkov highlighted the threat the ban poses to media outlets, emphasizing the significant revenue loss and increased dependency on other funding sources it could entail. He also drew attention to rising concerns about the potential suppression of media freedom, with industry experts warning against the adverse effects of legislative interference.

Let’s hope that (the proposal) is an oversight. The worse option is if somebody in a position of power – in this case, legislative power – is trying to strike a targeted blow against media freedom.

Nikolai Denkov, former PM

Leading journalists noted that social media platforms, banners, and targeted advertisements would remain unaffected, expressing concerns over the rising prevalence of underage gambling. They highlighted that vulnerable groups like children did not engage with traditional media, and the bill would only increase the prevalence of gambling ads in the digital space, exacerbating existing issues.

Leading media conglomerate Nova Broadcasting Group expressed apprehension over the ban’s impact on sports broadcasts, particularly those related to high-profile events like the European football championship. Similarly, Net Info group, which operates numerous popular websites in Bulgaria, underscored the potential hardships it would face without gambling-related revenues.

The Association of Bulgarian Broadcasters (ABRO) shared this opinion, cautioning against the ban’s implications for media sustainability, citing the importance of advertising revenue in supporting quality journalism. Meanwhile, the Technology Industry Alliance raised concerns about the ban’s feasibility in enforcing restrictions on internet platforms, citing potential conflicts with EU law.

As demonstrated in other European markets, advertising restrictions lead to an increase in unlicensed operators, consequently impairing the state’s ability to collect taxes from gambling activities and to provide adequate consumer protections.

Stilian Shishkov, Sportal Media Group CEO

As the debate over the proposed ban continues, affected parties are urging policymakers to consider the bill’s broader implications and either consider a substantial overhaul or cancel it. The outcome of the upcoming vote on the ban will likely shape the future landscape of gambling advertising regulation in Bulgaria, necessitating a careful and comprehensive approach.

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Atlantic City casino workers have voiced their discontent with Gov. Phil Murphy‘s stance on the smoking ban proposal. The governor’s comments during News 12’s “Ask Gov. Murphy” program stirred controversy among members of the Casino Employees Against Smoking Effects (CEASE) group, who vehemently oppose his assertion that there are valid arguments on both sides of the issue.

Casino Workers and Industry Debate Escalates Over Smoking Ban Advocacy

During the program, Gov. Murphy acknowledged the differing viewpoints within the casino industry regarding the proposed ban. He highlighted the concerns raised by the United Auto Workers (UAW), representing dealers, who advocate for the ban citing the discomfort caused by patrons smoking in close proximity. 

Conversely, he pointed out the reservations expressed by Local 54 of Unite Here, another prominent union, fearing adverse impacts on business if the ban were to be implemented.

Responding to the governor’s remarks, Pete Naccarelli, co-founder of CEASE, emphasized the lack of parity in the debate. He criticized Gov. Murphy for according legitimacy to what he termed as “casino industry scare tactics,” which he believes are fueled by unsubstantiated claims. 

Naccarelli asserted that independent research, based on current data, indicates that casinos could actually experience enhanced revenue in a smoke-free environment. He called upon Gov. Murphy to exhibit leadership in safeguarding the well-being of workers, stressing that no one should be compelled to compromise their health for the sake of employment.

Atlantic City Casino Workers’ Lawsuit Faces Setback Amid Hearing Postponement

CEASE, in collaboration with UAW Region 9, has taken legal action against Gov. Murphy and the state health commissioner, contesting the exemption granted to casinos from the Smoke-Free Air Act of 2006. A court hearing to address the matter has been scheduled for May 13, underscoring the escalating tensions surrounding the issue.

The postponement of the anticipated hearing for the lawsuit seeking a smoking ban in Atlantic City casinos, filed by workers represented by CEASE and the UAW union, presents a setback in their efforts for safer workplaces. 

Pete Naccarelli previously expressed frustration over the delay, highlighting the continued health risks faced by thousands of workers. Despite opposition from the Casino Association of New Jersey, workers remain determined to pursue a comprehensive ban, emphasizing the importance of safeguarding health and constitutional rights.

Workers in Atlantic City casinos, represented by the UAW, resorted to legal action by filing the lawsuit challenging the exemption that allows smoking in gambling establishments, arguing it violates equal protection under the law. 

This move reflects ongoing efforts to address concerns about workplace safety amid the industry’s resistance to banning smoking, sparking similar campaigns in other states such as Rhode Island, Pennsylvania, Kansas, and Virginia, and drawing attention to the broader issue of workers’ rights in the gaming sector.

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The anticipated hearing for the lawsuit filed by Atlantic City casino workers seeking a smoking ban has been postponed, marking a significant setback in their ongoing fight for safer working conditions. Initially scheduled for April 25, the hearing has been delayed by two weeks following a request from the New Jersey Attorney General’s office.

Lawsuit Delay Heightens Battle Against Smoking in Atlantic City Casinos

This delay comes amidst a longstanding effort by the Casino Employees Against Smoking Effects (CEASE) and the United Auto Workers (UAW) union to challenge the exemption allowing smoking in Atlantic City casinos. Their lawsuit contends that the exemption violates the principle of equal protection under the law and is unconstitutional.

Expressing frustration over the delay, Pete Naccarelli, co-founder of CEASE, highlighted the continued exposure of tens of thousands of casino workers to hazardous secondhand smoke. He emphasized the urgency of addressing the issue, asserting that the current environment not only poses dangers but also infringes upon workers’ constitutional rights.

The postponement of the hearing adds another layer of complexity to an already contentious issue. Workers, represented by the UAW, have long advocated for a smoking ban in casinos, citing concerns about their health and safety. 

Similar campaigns in other states such as Rhode Island, Pennsylvania, Kansas, and Virginia have underscored the broader significance of this issue, resonating with workers across the country.

Casinos Maintain Stance Against Smoking Prohibition

Recent financial reports revealing a downturn in physical visits to Atlantic City’s casinos have heightened concerns. However, workers and union leaders assert that implementing a smoking ban is imperative to safeguard the well-being of both employees and customers, viewing it as a crucial step toward addressing the city’s existing challenges.

Earlier this year, Sen. John Burzichelli presented a bill aimed at addressing the grievances of both workers and the casino sector. However, the proposed legislation was heavily skewed in favor of casinos, leading workers to advocate for a comprehensive ban to reject it. 

Despite growing calls for a smoking ban, the Casino Association of New Jersey remains steadfast in its opposition, citing apprehensions regarding its potential impact on competitiveness with neighboring states. Nevertheless, workers are resolute in their pursuit of change through legal means. The quest for improved working conditions has struck a chord across New Jersey, garnering widespread public backing.

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X, the global social network formerly known as Twitter, has received a fine worth 1.35 million euros from an Italian authority after having breached the gambling advertising ban imposed by the country’s laws.

The Autorità per le Garanzie nelle Comunicazioni, the government body in charge of overseeing the communications industry in Italy, had issued the fine to Twitter International Unlimited Company, which is the corporation that owns X.

The social network allegedly violated the so-called “dignity decree”, which has been in place in Italy since 2019. The respective law bans any form of advertisement, sponsorship or communication of promotional content regarding sports betting or gambling.

The Italian authority found nine violations from verified accounts on the respective social network, accounts that have advertised websites that offer gambling and sports betting services with cash winnings. The reasoning behind the fine is closely related to the blue check mark which each of the nine accounts had, that made X liable for those accounts’ activities according to the Italian authorities.

Moreover, the authority has issued an order for access inhibition for two of the aforementioned nine accounts that are still active on the social network. Another inhibition order has been adopted for all further uploaded content that would be in breach of the regulations.

More Social Networks Fined

The decision to issue a fine for X (Twitter) comes just a few weeks after the Autorità per le Garanzie nelle Comunicazioni fined Meta, the company which owns Facebook and Instagram. In that case the fine was worth 5.58 million euros but the reason was the same: gambling advertising.

The Italian government authority found promotional content for gambling and sports betting on 18 different social media profiles, five on Instagram and thirteen on Facebook. Another 32 sponsored video and image posts were considered aimed at promoting or advertising online casinos or sports betting websites.

Similar penalties had previously been issued to Google, Twitch and YouTube. Google received a fine worth 700,000 euros in August 2022 for advertisements that appeared on the Spike YouTube channels. However, the Italian government authority did not specify which were the gambling operators advertised on the platform.

The gambling advertising ban imposed in Italy in 2019 has been loudly contested by football clubs in the country because many of them had partnerships in place with gambling and sports betting operators. The law still permits partnerships for sports teams but only when they are focused on other markets (mainly Asia) but football clubs in Italy’s top two leagues have argued that they have still lost income due to the ban.

Source: “X hit by €1.35m penalty for Italian gambling ad ban breaches“. iGaming Business. March 15, 2024.

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On Wednesday, February 28, the Alcohol and Gaming Commission of Ontario (AGCO) rolled out the measure which is designed to safeguard against the proliferation of gambling harm and problem gambling in the jurisdiction.

Firm Bulwark Against Gambling Harm

The decision follows a public consultation on the matter, and it aligns with a higher ambition to ensure that consumers are steered clear of harmful practices. Moving forward, no active or retired athletes may appear on advertising or promotional materials for internet gambling in the province.

The only case where this is allowed is as part of responsible gambling practices and campaigns, with influencers, celebrities, and otherwise well-known entertainers and people of prominence coming under the same restriction.

Yet the onus is on licensed companies in the province to ensure that no transgressions occur and that the new rules are observed to the letter of the law. Operators would have to meticulously study the personalities they want to work with to launch campaigns that are aimed at advertising and boosting awareness for their brands.

The AGCO similarly expects companies to ensure that their advertisement does not appear to minors or individuals under the legal gambling age. The rules further ensure that the industry is advertising more responsibly and ethically, including a prohibition that now bans ads to appear near schools, among a select list of venues.

The ban has been welcomed by the Canadian Mental Health Association which congratulated the regulator on the swift execution of its plans, journeying from public consultation to consideration, to implementation. A spokesperson for the association, Camille Quenneville, called the new rules “a critical step” designed to safeguard consumers.

Beware of the Pitfalls

Yet, Quenneville used the opportunity to also speak about “alarming trends” in online gambling, and especially among young people who are the most at risk of falling victim to harmful gambling practices. Jurisdictions such as the Netherlands still discover that a quarter of individuals under the age of 24 are moderate-to-risk gamblers, which is a serious enough concern to merit further addressing.

“We encourage a public health approach to regulating iGaming. This includes implementing further restrictions on advertising and marketing until all advertising for iGaming is completely prohibited,” Quenneville said, urging the industry to lead by example and protect consumers.

The provincial market has been looking to strengthen the safeguards available to players, including the rollout of a request for proposals for a self-exclusion system.

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