Alberta may seem like the frontrunner, but Quebec is also emerging as a contender in the debate over which Canadian province will follow Ontario’s lead in implementing a regulatory model for online gaming. 

Report Reveals Ontario Gaming Model as Solution to Quebec’s Budget Woes

With Quebec facing budget challenges, the government has tasked crown corporations, such as Loto-Québec, with finding cash savings totaling $1 billion. Now, the Quebec Online Gaming Coalition has unveiled a report highlighting the economic benefits of Ontario’s regulatory model.

Chartered accounting firm Mallette conducted an economic analysis of iGaming Ontario for the fiscal year 2022-23, its inaugural year of operation. The report revealed that iGaming Ontario, in collaboration with the Alcohol and Gaming Commission of Ontario (AGCO) and the Ontario Lottery and Gaming Corporation (OLG), generated approximately $230 million in revenue for various levels of government after expenses. Specifically, iGaming Ontario contributed at least $145 million annually to the Ontario government’s coffers. Moreover, OLG’s revenue from online gaming surged by 31% during this period.

The Quebec Online Gaming Coalition, comprising prominent industry players such as Betway, Bet99, and DraftKings, sees potential in replicating Ontario’s success in Quebec. Nathalie Bergeron, spokesperson for the Coalition, emphasized the profitability of Ontario’s model and its ability to address budget deficits. She highlighted that such a regulatory framework not only generates new revenue but also facilitates the implementation of responsible gaming measures.

Quebec’s Gaming Sector Pressure Sparks Interest in Ontario’s Economic Success

The economic impact of iGaming Ontario extends beyond revenue generation. The province experienced a significant boost to its GDP, with nearly $1.6 billion added in the first year alone. Additionally, the industry created over 1,800 jobs with salaries averaging $103,000, well above the provincial average.

The Quebec government faces mounting pressure to modernize its gaming sector, especially considering the substantial revenue leakage to unregulated markets. A November 2023 report from GeoComply revealed that thousands of attempts were made in Quebec to access Ontario-regulated mobile bookmakers during the 2023 NFL season. 

Back in December, GeoComply actually partnered with the Quebec Online Gaming Coalition to safeguard the integrity of the industry and prevent fraudulent access. 

Furthermore, polling conducted for the Quebec Online Gaming Coalition indicated strong support among Quebec-based online gamblers for a licensing system to regulate private-sector operators.In light of Quebec’s fiscal challenges and the Finance Minister’s call for optimization efforts from crown corporations, the Coalition proposes a regulatory framework akin to Ontario’s. Such a model, while tailored to Quebec’s needs, could yield similar economic benefits, providing a viable solution to the province’s budget deficit.

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Amidst budget negotiations in Maryland, hopes for the legalization of online casinos have been dashed for the year 2024. With online casino revenue not finding its way into the state’s budget agreement, it appears that Marylanders will have to wait until at least 2027 to see any progress in this regard.

Maryland’s Legislative Session Ends Without Inclusion of Online Casino Revenue

The state’s legislative session saw no inclusion of online casino revenue as a funding source in the budget deal reached on April 3. This outcome pushes any potential discussion on online casino legalization to the following years.

Although there were initial hopes for a referendum to reach Maryland voters by 2026, the recent developments suggest that such discussions may not gain traction until later. 

Sen. Ron Watson expressed that given the failure to pass legislation this year, the earliest possibility for mobile casino apps to go live in Maryland would be in 2027.

Despite Maryland already permitting legal sports betting and hosting brick-and-mortar casinos, the road to online casino legislation seems fraught with obstacles. Stakeholders in the online casino industry will need to address concerns regarding problem gambling and potential competition with existing physical casinos to garner support in future sessions.

Online Casino Legislation in Maryland Faces Resistance

The exclusion of online casinos from the state budget is particularly significant considering the initial momentum behind the proposed legislation. The House had passed a bill supporting online casinos, including it in its budget proposal, but Senate leadership was firm in their stance against such measures.

Proponents argued that regulated iGaming could address illegal gambling, but debates persisted over potential job losses and addiction risks, with the bill undergoing significant changes to address various concerns. 

Several challenges contributed to the demise of the online casino legislation. Notably, not all casinos supported the initiative, with Maryland Live! and Ocean Downs Casino expressing concerns about potential job losses and cannibalization of their businesses. Arundel County, the county where Maryland Live! Is located, also championed a study that corroborated the concerns regarding cannibalization.

Additionally, labor unions were strongly opposed to the legalization efforts.

At the same time, a recent study commissioned by the Sports Betting Alliance (SBA) challenged the conventional belief that online casinos cannibalize traditional brick-and-mortar establishments, revealing instead a symbiotic relationship between the two. 

Conducted by the Analysis Group, the study examined six states and found a significant increase in overall gaming revenue, suggesting that online gaming complements rather than competes with physical casinos.

However, despite these setbacks, there remains a glimmer of hope for proponents of online casinos. The fact that the Maryland House managed to pass the legislation demonstrates some level of support, suggesting that future sessions may see renewed efforts toward legalization.

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For years, a battle has been raging over the legality of skill games in Pennsylvania. While supporters of such form of entertainment said that it provides a different experience than gambling and helps local businesses, opponents warned about the impact of skill games on the brick-and-mortar casino sector. Currently, skill games operate within a grey area across Pennsylvania, but that may soon change with the state’s newly proposed budget.

Pennsylvania Gov. Josh Shapiro recently released his proposed budget for FY 2024/2025, which included estimates for proceeds from skill games tax. Per the proposed budget, the tax rate for such games would be 42% on gross gaming revenue. The Governor’s budget reveals that the regulation of skill games would be in the hands of the state’s gambling regulator, the Pennsylvania Gaming Control Board (PGCB).

The collected tax on gross gaming revenue from such machines would be deposited into an administrative account. Subsequently, the collected taxes from skill games would be relocated to the state’s General Fund, under the proposed budget.

Assuming that the required legislation and rules would be in place with the budget’s effective date, July 1, 2024, an estimated $150.4 million in proceeds from skill games taxes are expected to be generated for FY 2024/2025. Gov. Shapiro’s proposed budget estimated the proceeds from skill games taxes to increase to $313.4 million for FY 2025/2026 and remain in a similar ballpark through FY 2028/2029.

“This budget proposes a tax to be levied on the daily gross gaming revenue from electronic gaming machines that involve an element of skill and are regulated by the Pennsylvania Gaming Control Board. Estimates assume an effective date of July 1, 2024. This budget deposits tax revenues into a restricted account for administration, transferring the balance to the General Fund,“

reads Gov. Josh Shapiro’s proposed FY 2024/2025 budget

A Major Milestone for Skill Games

Undoubtedly, including tax revenue from skill games within the proposed budget marks an important milestone after years of dispute over the legality of such games. Yet, it is important to mention that the proposed budget may undergo changes. Still, the Governor’s intention to include skill games in the budget marks a clear signal for lawmakers about the future of skill games in Pennsylvania.

The recent development follows a court decision from late last year. At the time, skill games were designated as not illegal, a move that paved the way for the regulation of such games. The judgment came from the Commonwealth Court, approving a lower court’s decision that recognized winnings from skill games as legal.

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January 8, 2024, marked the second year of legalized online sports betting for the market in New York. The activity broke all records for that period, with billions of wagers and significant proceeds to the state and the operators who hold a license. While sports betting surpassed even the brightest predictions, online gambling may not see the light of day, at least this year.

On Tuesday, Gov. Kathy Hochul announced the state’s FY 2025 Budget. Surprisingly, the $233 billion budget did not mention online gambling, a move that may doom the legalization of the activity this year. Upon releasing the budget, the Governor explained: “This budget makes it clear that fiscal discipline can co-exist with progressive, people-driven policies.”

Moreover, Hochul said: “I am committed to fight the right fights on behalf of New Yorkers, and to pursue the common good with common sense – by seeking common ground.” Interestingly enough, iGaming didn’t get much traction during 2023 and it wasn’t included in the 2024 state budget as well.

Now, despite the predictions that the state can benefit from tax revenue by legalizing online gambling, the activity isn’t included in the recently released budget. Still, this doesn’t guarantee that iGaming won’t be up for debate or lawmakers won’t consider it.

Proposal Calls for the Legalization of iLottery, iGaming

The FY 2025 Budget was announced days after Sen. Joseph Addabbo, a supporter of the legalization of iGaming activities, officially filed an online gambling and lottery bill in New York. Continuing his efforts toward legalizing iGaming, the Senator introduced Senate Bill 8185. The proposal called for the legalization of online lottery and iGaming activities across the state.

Senate Bill 8185 follows another proposal introduced by Sen. Addabbo last year, S4856. Yet, a significant difference between the two bills is that the new one includes online lotteries. While S4856 never really lifted off, Senate Bill 8185 reaffirms the Senator’s dedication toward the legalization of the activity.

The proposal calls for the implementation of a 30.5% tax on gross gaming revenue, applicable to online gambling operators. This high tax rate reminds of online sports wagering in the state, which is subject to a 51% tax.

Not unexpectedly, under the new proposal, players need to be age 21 or older to engage in online gambling activities. To secure a license in the state, independent contractors would be subject to a $10 million one-time licensee fee. On the other hand, existing operators would pay a one-time $2 million fee to secure a license.

The post Online Casinos Don’t Make New York Budget Cut in 2024 appeared first on Keno Wizard.

In the closing chapters of this year’s state budget negotiations, the legislative arena buzzed with intensity as lawmakers in North Carolina wrestled over the unexpected proposal to legalize four casinos within the confines of the nearly $30 billion state budget. 

North Carolina Lawmakers Challenge $1.5 Billion Casino Investment Proposal

The controversial addition pitched as a rural incentive development program, earmarked a substantial $1.5 billion state investment for the establishment of three privately operated casinos. A potential fourth casino, to be managed by the Lumbee Tribe, loomed over Robeson County. Oversight of these establishments was slated for the Department of Commerce, with licensing falling under the purview of the North Carolina Lottery Commission, reported The Carolina Journal.

This audacious move, not subjected to the scrutiny of legislative committees, triggered a wave of dissent among lawmakers, most vocally from the Freedom Caucus, spearheaded by Rep. Keith Kidwell, R-Beaufort, and Sen. Bobby Hanig, R-Currituck. Budget negotiations were momentarily derailed, forcing Senate and House leadership to withdraw the proposal from the budget. However, they emphasized the necessity of gearing up for a robust debate on more tightly regulated gaming options in the forthcoming legislative session.

The heart of the issue revolved around an intricate web of financial interests. An earlier analysis conducted by the Spectrum Gaming Group indicated a potential $1.9 billion market in North Carolina should three new resort casinos emerge. Each facility was projected to generate approximately 3,000 jobs and funnel $30 million into local tax coffers.

Gaming Giants Shape North Carolina’s Casino Landscape Amid Political Intrigue

Various gaming giants had already made their mark. Among them, The Cordish Companies, a Maryland-based commercial real estate group, led the charge, successfully lobbying for the rezoning of nearly 200 acres of land in Rockingham County for an entertainment district.

Behind the scenes, the influence of lobbyists and their financial clout became increasingly apparent. Allegations surfaced regarding significant contributions made by casinos to key state lawmakers’ political campaigns, totaling over $1.4 million. However, a deeper analysis revealed that this financial impact was a mere fraction of the broader contributions flowing from the gaming industry.

The power play extended beyond individual lawmakers to lobbyists, who maneuvered deftly in the legislative corridors, juggling roles between gaming companies and NCInnovation, a privately-run economic development initiative. 

Critics raised eyebrows as NCInnovation secured a $500 million earmark in the final budget, a significant cut from the initial $1.4 billion proposal. The lobbying teams, featuring prominent figures such as Tony Copeland, North Carolina’s former commerce secretary, and Tracy Kimbrell, the ex-general counsel for Sen. Phil Berger’s office, operated in a complex landscape of shifting alliances and political intricacies.

As the legislative session neared its end, the stage was set for a resurgence of the casino debate in 2024. Lawmakers, including Rep. Keith Kidwell, R-Beaufort, voiced concerns not about the concept of casinos per se, but rather the opaque process by which they found their way into the budget. 

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