Tim Costello, chief advocate for the Alliance for Gambling Reform, highlighted the importance of a gaming ad ban as Australia keeps struggling with a surge in problem gambling. He warned that clandestine talks behind closed doors could herald a potential compromise on the landmark parliamentary inquiry’s recommendations for gradually phasing out gambling advertising within three years.

A Lack of Transparency Raises Lobbying Concerns

Recently uncovered documents have unveiled closed-door dialogues between gambling entities, broadcasters, sporting codes, and global tech companies with Communications Minister Michelle Rowland and her staff. These talks centered on responding to proposals for a complete wagering advertising ban. Costello notes that stakeholders likely felt threatened by the measure and sought to apply pressure against it.

The involvement of prominent gambling companies like Sportsbet, Crown, Betfair, Tabcorp, and others in these private meetings has raised skepticism about the transparency and integrity of the decision-making process. Costello questioned the nature of the information shared behind closed doors and the validity of claims presented by these stakeholders, emphasizing the necessity for transparency in such discussions.

Australia has a huge blind spot when it comes to gambling and the immense harm it causes in the community.

Tim Costello

Speaking for The Sydney Morning Herald, Costello lamented the discreet discussions as Minister Peta Murphy, the inquiry’s chair, worked exhaustively until her recent unfortunate passing due to cancer. Murphy’s dedication culminated in a comprehensive report featuring 31 recommendations to curb the detrimental impact of online gambling and advertising on society. However, a compromise with the broader industry could jeopardize her vision.

Problem Gambling Remains a Pressing Issue

Highlighting the magnitude of gambling-related harm in Australia, with an annual loss exceeding $25 billion, Costello underscored the urgency to address this issue. He stressed the need for the government to honor the recommendations set forth by the multi-party parliamentary inquiry, resisting undue lobbying pressures from the gambling industry.

Moreover, he urged Australian lawmakers to heed the public sentiment, backed by polls indicating over 70% support for a gambling advertising ban. While Costello noted that ignoring industry recommendations could be counterproductive, he once again urged for transparency, highlighting the industry’s significant financial influence in various sectors as it defends its interests.

Now is time to resist the pressure and back-door lobbying by big gambling and other vested interests.

Tim Costello

As the government prepares to unveil its response to the Murphy inquiry, Costello implores new measures to reduce gambling-related harm, focusing on advertisement restrictions. He noted that gaming should face similar restrictions to tobacco and alcohol due to its widespread negative societal impact. The Australian government’s response should set the tone for its future gambling-related policy and hopefully dispel any integrity doubts.

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Last year, New York confirmed plans for the development of three new downstate casinos. This sparked debate as many operators saw the potential of this opportunity, while local communities sought to determine how they would be impacted by the casinos. The development of those projects would also bring economic stimulus for different regions, offering temporary and permanent workplaces and raising tax revenue.

Now, a new report released by Newsday criticizes the slow progress of the three downstate casinos. Back in January, the Gaming Facility Location Board started accepting applications from potential candidates. The lengthy processes concluded with a 103-page document that included the Board’s answers to 613 questions by applicants requiring clarity on the topic.

In its recent op-ed, the publication criticized the slow progress, explaining that the Board needed 208 days to answer 613 questions, calculating that this timeframe represents less than three answered questions per day. Speaking about the application launch in January, it said that since then the “process has been anything but energetic.” What’s more, the recent report highlighted the incomplete and simplistic answers some of the applicants received.

“The state board spent 208 days answering 613 questions from prospective applicants. That’s less than three questions per day. Some answers were thoughtful, helpful to the applicants, even insightful. But much of the Q&A contained simplistic and incomplete responses on trivial topics — like how much detail applicants should include in their submissions. The unsurprising and relatively unhelpful answer: the most detailed information possible,“

reads the recent op-ed released by Newsday

A Second Round of Consultations Is Open through October

After the initial round of inquiries, operators have a new chance to ask more questions in a second round that will go through October 6, 2023. It is unclear when the answers to the second questions and answers session will be released. Yet, Newsday suggests that the Board should use this time to focus and evaluate its capabilities, ensuring it has enough resources and staffing to respond to upcoming queries faster. It added that the “rest of the process should be conducted in an open, efficient way.”

Without any doubt, the three new downstate casinos would bring benefits, considering that gambling companies are likely to spend hundreds of millions, if not billions, while competing for a license. This summer, the prominent casino operator, Greenwood Gaming and Entertainment, along with the real estate investment and development firm, Silverstein Properties, confirmed their intentions to participate in the race for a casino license in downstate New York.

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Sports betting has been on hold in Florida for a few years now and there’s no indication when it will be relaunched. After the state signed a gambling compact with the Seminole Tribe, stakeholders within the sector, including West Flagler Associates, challenged that decision, claiming it was in breach of the Indian Gaming Regulatory Act (IGRA). This ultimately resulted in a legal battle that continues to unravel.

On Thursday, the US Department of the Interior (DOI), criticized West Flagler’s petition for a rehearing en banc on the sports betting case, claiming that the request was “unwarranted.” The latest episode of the legal fight comes after mid-August, West Flagler filed for an en banc hearing of its case. This rare occurrence is actually a rehearing of a court case with the DC Circuit Court of Appeals.

However, what’s different with en banc rehearings is that they are held before a majority of judges on active service, rather than the usual panel consisting of three judges. The DOI described its case in a 25-page response, criticizing West Flagler’s rehearing request for the sports betting compact in Florida.

The DOI wrote: “West Flagler’s arguments for rehearing are strawmen, premised on its erroneous assertion that, by referencing the state-sanctioned wagers, the Compact — and the Secretary’s approval thereof — purport to unilaterally legalize the placement of those wagers and the State regime for regulating them.” The lengthy response adds: “But, as West Flagler acknowledges, the panel held in no uncertain terms that the compact does not do that. And the panel did so while making scrupulously clear that neither its opinion nor the Secretary’s approval prevents West Flagler from challenging the relevant State law in Florida’s courts.”

Legal Battle for Sports Betting Continues

In light of the current circumstances, sports betting remains on hold in Florida, and it is yet to be confirmed when the activity will be able to resume. The Seminole Tribe previously said it plans to resume the betting offering via the Hard Rock brand, but the legal hurdle needs to be cleared before this can happen.

Next week marks the start of the new National Football League (NFL) season. By the look of it, residents of Florida will have to wait further before they can place wagers on the NFL. After legalizing the activity in 2021, Florida launched it briefly for a month before it was put on hold on December 4, 2021.

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Late last year, the former Treasurer of New South Wales (NSW), proposed a change to the taxation for casino operators, pushing for an increase in casino duty rate. Although it wasn’t implemented, the proposal stuck around with the lawmakers following the recent election in NSW. In light of discussions with the local government for the increase in casino duty rates, The Star Entertainment released a new statement Tuesday outlining its concerns.

The Star’s managing director and CEO, Robbie Cooke, criticized the proposed duty rates increase, explaining that it was introduced by the former Treasurer without the necessary consultations. Moreover, he explained that the proposed casino duty rates do not consider the impact on The Star’s Sydney operations.

Cooke noted that the proposed duty rates are likely to bring significant economic challenges for the company’s Sydney business. At the same time, he warned that those rates may ultimately threaten the jobs of some 4,000 of The Star’s Sydney employees.

“This proposed duty increase was policy on the run by the former Treasurer, was ill-conceived with no consultation and had no regard to the capacity of our Sydney operation to afford the impost. If implemented as originally proposed, the additional duty would significantly challenge the economic viability of the Sydney business and put the jobs of up to 4,000 hard-working Sydney employees in jeopardy.“

Robbie Cooke, managing director and CEO at The Star

While Talks Continue, Charter Hall Transaction Halts

The managing director and CEO confirmed that The Star will continue its discussions with the NSW Government. Ultimately, according to Cooke, the company seeks to “guarantee the jobs” of its team members. Additionally, he said that The Star continues to follow its plan for reforms for its “suitability and to ensure it remains a valuable contributor to the NSW economy.”

The recent statement released by The Star pointed out that the company “appreciates the engagement to date by the current NSW Government.” It also said that it will continue to collaborate with the local government, as well as the NSW Treasury and support a proposal that seeks to protect the future of its employees in Sydney.

The criticism and concerns shared by The Star coincided with a separate announcement made by the company Tuesday. The company said that its plan for a sale and partial leaseback transaction with Charter Hall regarding the Treasury Casino and Hotel buildings and the Queen’s Gardens Car Park, would not be going ahead. In a separate statement released by The Star, it said that Charter Hall confirmed it is no longer interested in going ahead with the transaction.

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The German Sports Betting Association (DSWV) published a press release on its website, criticizing the market figures, sources and methodology used by the German Head Office for Addiction (DHS) in its article, Yearbook Addiction 2023.

Incorrect Market Size Calculation

The DSWV states that the DHS uses incorrect figures as per the sports betting market size in Germany in 2021, putting up total sales at €18.3 billion ($19.9 million), translating to an increase of 409.6% year-over-year, while the market totaled €9.4 billion ($10.2 billion) in wagers, or an increase of 21%.

The DSWV was provoked to inform the public that Yearbook Addiction 2023 was based on incorrect figures after informing the DHS about the correct method of calculation did not change the figures the DHS used to calculate the 2021 market size in the revised version of its article.

Prof. Dr. Gerhard Meyer from the Health & Society Department of the Institute for Public Health and Nursing Research at the University of Bremen used gross gaming revenue (GGR) of €1.3 billion ($1.4 billion), as well as a payout rate of 93%, using the incorrect sales figures and comparisons drawn from questionable sources, fussballwetten.com, sportwettentest.net and wettProvider.de.

Elaborating on its claims about the dubious nature of the websites used by the DHS, the DSWV points to the anonymity behind these websites and the incomplete nature of the data they provide.

Furthermore, fussballwetten.com advertises gambling, which is illegal in Germany, and ranks only illegal operators in its top ten betting providers list. The website even suggests that a Curaçao license is enough for legally accepting bets in Germany, working against the legal market.

As for the payout percentage, the DSWV claims that data used by the DHS that was derived by sportwettentest.net and wettProvider.de is incomplete as payouts generally vary based on numerous factors, including the level of competition, taxes, provider’s cost structure and willingness to take risks, and the behavior of players on the market.

Online vs Retail, Combined vs Single Bets

To prove its point, the betting association points to the difference between the payout rates online and in retail, with the latter usually being well below those in betting shops, as well as the different payouts based on the type of dominating bets for each bookmaker since customers placing combined wagers tend to lose more than those wagering on a single event.

Adding the high tax burden of 5.3% on each bet in Germany, the association concludes that the payout rate of 93% used by the DHS in the calculations is not realistic, and expresses its concerns that the University of Bremen reverts to using data from such unreliable sources for its scientific work.

As a staunch defender of the legal market, the DSWV demands again that the DHS and Prof. Dr. Meyer correct their article and calculate the market size according to data published by the Federal Ministry of Finance based on the 5.3% tax on stakes and where 95% of the payments come from regulated providers.

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