The Council of Ministers of Spain has appointed Andrés Barragán Urbiola as Secretary General of Consumption and Gaming. In this role, Urbiola will oversee Spain’s ongoing federal overhaul of gambling laws, a directive led by the Ministry of Consumer Affairs. This appointment is part of a broader strategy to strengthen the regulation and safety of Spain’s gambling sector.

Leadership and Legislative Reforms

Pablo Bustinduy, Spain’s Minister of Consumer Affairs and Social Rights, advocated the need for a dedicated minister to oversee gambling reforms. Bustinduy has assumed the remit of gambling reforms from his predecessor, Alberto Garzon, who chose not to serve in Spain’s new ‘progressive left’ coalition government.

Since 2020, under Garzon’s leadership, Spain has undertaken a significant reorganization of its gambling laws, focusing on unified standards and centralized controls for both online and land-based gambling. Key among these reforms was the “Royal Decree on Gambling Advertising,” which reshaped the gambling landscape by banning betting sponsorships and restricting gambling advertisements to late-night hours.

In 2023, Garzon introduced the “Royal Decree on Responsible Gaming Environments,” preparing the Spanish gambling industry for additional changes. These include the implementation of a centralized player registry and the mandatory documentation of risk profiles for younger consumers, particularly those under 25.

Strategic Appointment

Appointing Urbiola as Secretary General of Consumption and Gaming is a strategic move by Spain’s government to continue its rigorous overhaul of gambling laws. Urbiola, who has a strong background in economic policy and financial analysis, was personally selected by Bustinduy to lead the federal reforms for the gambling sector.

Urbiola brings diverse experience from his tenure at the Ministry of Economy, Commerce, and Business, where he played a pivotal role in designing support measures for companies during the pandemic and planning Spain’s Transformation and Resilience Recovery Plan. His expertise in economic strategy and policy development makes him well-suited to navigate the complexities of gambling reform.

Focus on Compliance and Safety

As Secretary General, Urbiola’s primary focus will be on implementing and enhancing the measures laid out in recent decrees. By 2024, he aims to ensure that Spanish gambling operators comply with some of the strictest regulations in Europe. This includes strict adherence to advertising restrictions and robust mechanisms to protect younger and vulnerable consumers from gambling-related harms.

The appointment underscores Spain’s commitment to fostering a safer gambling environment and addressing gambling addiction challenges. It aligns with the new Action Plan on Addictions for 2025-2028, which Bustinduy will lead, focusing on comprehensive strategies to mitigate the risks associated with gambling.

Source:

Spain appoints Urbiola as ‘dedicated minister’ of federal gambling reforms, SBC News, June 25, 2024.

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In a landmark decision following the Switzerland casino industry’s delegate meeting on May 22, the Swiss Federal Council has unveiled new regulations for casino licenses, set to commence in January 2025. These licenses will be granted for 20 years, introducing new casinos and reinforcing industry standards.

New Casinos in Prilly and Winterthur

As part of the new licensing framework, new casinos have been approved in Prilly and Winterthur. Notably, the Winterthur casino will replace the current venue in Schaffhausen, as no application was submitted for the latter location. This shift underscores the evolving landscape of Switzerland’s gambling industry.

Gerhard Pfister, President of the Swiss Casino Association, hailed the new licenses as a historic milestone for Switzerland’s gambling sector. “The granting of the new concessions is a milestone,” Pfister stated. “The federal government has recognised that today’s casinos ensure safe and responsible operations and generate great economic benefits in their region.”

Enhanced Industry Collaboration

The Swiss Casino Group venues in Zurich, Schaffhausen, St. Gallen, and Pfäffikon have unanimously joined the Swiss Casino Association. Winterthur will also submit a membership application once it opens. This development means that all 21 land-based and 10 online casinos in Switzerland are now members of the Swiss Casino Association.

Pfister emphasized the benefits of this unified collaboration, stating, “I’m pleased that Swiss Casinos has joined the association and with it the entire casino industry with one voice can speak.” Marc Baumann, a board member of Swiss Casinos, added, “The online business is changing the Swiss casino industry sustainably. We are happy to work together with the Swiss Casino Association to help shape the future.”

Revenue Trends: Land-Based vs. Online Casinos

In 2023, Switzerland’s land-based casinos experienced a slight decline in revenue, generating CHF 623 million in gross gaming revenue (GGR), down 1.1% from the previous year. Conversely, online casinos saw significant growth, accumulating CHF 286 million in GGR, a 14.3% year-on-year increase. This trend reflects a broader shift towards digital offerings in the gambling industry.

Casinos also saw a 3% increase in tax contributions, with the state receiving CHF 409.3 million in 2023. Over the past 20 years, Swiss casinos have contributed over CHF 8 billion in taxes, primarily benefiting the country’s AHV pension system.

Record Profits for Loterie Romande

In related news, the Loterie Romande public lottery reported a net profit increase to CHF 5.1 million for 2023. The lottery will distribute a record CHF 243.7 million to good causes, despite a 3.4% drop in gross gaming revenue to CHF 420.7 million.

Jean-René Fournier, Chairman of Loterie Romande, attributed the profit rise to stringent management of operating costs, enhanced digital offerings, and the introduction of the EuroDreams draw game. “This result can be attributed in particular to the rigorous management of operating costs, the strengthening of our digital offering, and – with the launch of the European draw game EuroDreams in October 2023 – the diversity of our product range,” Fournier explained.

The Swiss Federal Council’s new casino licensing regulations mark a significant evolution in the country’s gambling industry. With new casinos in Prilly and Winterthur and a reinforced industry collaboration through the Swiss Casino Association, the future of Swiss gambling looks robust and promising. As the sector shifts increasingly towards online gaming, these new regulations ensure a balanced approach to growth and responsible operations.

Source: “Switzerland federal council grants all casinos new licences from 2025”. May 24, 2024.

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A class-action lawsuit, which presented price-fixing claims against major Las Vegas hotels, has been dismissed by a federal judge. Thus, Caesars Entertainment, MGM Resorts, Wynn Resorts, and Treasure Island scored a big victory in prolonged legal proceedings, which started over a year ago.

Lawsuit Alleges Price-Fixing Conspiracy Among Major Las Vegas Hotel Operators

The lawsuit was filed back in January 2023 by Seattle-based law firm Hagens Berman Sobol Shapiro on behalf of two tourists who sought repayment for alleged overcharges. The lawsuit accused major Las Vegas hotel operators such as Caesars Entertainment, MGM Resorts, Wynn Resorts, and Treasure Island that they have made surreptitious agreements aiming to inflate room prices with the help of data-sharing software called Rainmaker. 

Allegedly the operators used the software developed by Florida-based Cyndyn Group to share sensitive pricing information among themselves, which then resulted in artificially high room rates.

The plaintiffs challenged the major Las Vegas operators under the Sherman Antitrust Act, which aims to prevent anti-competitive practices that could harm consumers.

In the recent hearing in connection with the case, US District Chief Judge Miranda Du dismissed the lawsuit, reported The Las Vegas Review-Journal. She stated that plaintiffs did not prove that there was in fact a clear price fixing agreement among the hotel operators.

Du’s decision followed another dismissal of the lawsuit that happened in October 2023. The plaintiffs then filed an amended complaint but still, the judge found their allegations insufficient to establish a plausible case of price-fixing.

Lawsuit Claims Bias in Vegas Hotel Pricing Software, Judge’s Ruling Highlights Gray Area

According to the claims in the lawsuit, using Rainmaker’s software affected the normal market competition as it provided biased pricing recommendations, which the plaintiffs claimed were in favor of the hotel operators. As a result, the room prices had higher rates for consumers. 

However, Judge Du pointed out that hotel operators do not have to align their prices with the suggestions from Rainmaker, which weakened the plaintiffs’ argument.

Hotel operators’ representatives hailed the decision but also stressed that they are committed to fair business practices.

At the same time, the legal representatives of the plaintiffs said that they are currently considering their options and may potentially file for an appeal.  

Last year in April, the Las Vegas hotel-casino operators also sought to dismiss the class-action lawsuit, refuting the plaintiff’s claims and dubbing them a conspiracy. 

Back then, Amanda Belarmino, an assistant professor at the William F. Harrah College of Hospitality at UNLV, also opposed the allegations as unfounded. She attributed the high room rates to implications following the removal of pandemic restrictions. 

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After years of legal battles, a federal judge has brought closure to the longstanding dispute over the tribal casino in the Jamul Indian Village, located in San Diego County. US District Judge Andrew G. Schopler, appointed by President Joe Biden, not only dismissed the latest case against the casino but also imposed sanctions on the plaintiffs, marking an end to the protracted legal saga.

Kumeyaay Native Americans Reveal Historical Dispute in Battle for Tribal Land

The case dates back to the early 1990s when the Kumeyaay Native Americans, residing in the Jamul Indian Village, held an election regarding the construction of a casino and a hotel on their tribal land. The decision led to a series of legal challenges initiated by a group opposing the construction, which persisted over the years.

In his ruling issued on February 29, Judge Schopler emphasized the frivolous nature of the plaintiffs’ claims, citing over 20 failed lawsuits with shifting and meritless arguments, reported Courthouse News Service. Judge Schopler accused the plaintiffs of pursuing the case in bad faith, solely for harassment purposes, and ordered all attorney fees to be borne by the plaintiffs.

The core of the legal battle revolved around allegations that the construction of the casino infringed upon ancestral burial grounds, owned by the Roman Catholic Church of San Diego. The plaintiffs contended that the transfer of the cemetery plot to the Village was fraudulent, and orchestrated to evade responsibility for desecration.

Federal Judge Ends Lawsuit Against Tribal Village, Urges Plaintiffs to Cease Legal Pursuits

However, Judge Schopler dismantled these arguments, highlighting the plaintiffs’ misunderstanding of state laws and failure to prove fraudulent transfer. Moreover, he pointed out a critical legal flaw: the absence of the Village as a defendant, despite its indispensable status. As a federally recognized tribe, the Village enjoys sovereign immunity, rendering it immune to lawsuits.

Consequently, Judge Schopler dismissed the case and cautioned against further legal pursuits by the plaintiffs and their attorneys, warning of escalating financial penalties. Expressing hope for a definitive resolution, he urged the plaintiffs to accept their losses and cease litigation.

Last year the Jamul Indian Village Development Corporation (JIVDC) expanded its Jamul Casino with a luxurious 16-story hotel boasting 200 rooms, including 52 suites, alongside extensive amenities such as a rooftop pool deck, restaurant with scenic views, retail space, meeting areas, spa, and fitness center. 

Linked by a pedestrian sky bridge, the hotel aimed to elevate the gambling experience. The expansion reflected JIVDC’s strategic growth plan following a substantial loan, with Chair Erica Pinto emphasizing the economic benefits for the tribal nation and local community, while casino president Mary Cheeks anticipated enhanced competitiveness in the leisure market.

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In a significant move, the Department of the Interior has announced the finalization of federal rules affirming the legality of Florida-style “hub-and-spoke” tribal gaming compacts. These compacts, governed by the Indian Gaming and Regulatory Act, play a pivotal role in the economic development of Tribal nations and have been a focal point for negotiations between Tribes and states.

Updated Legislation Aims to Avoid Contentious Issues

The modifications to 25 C.F.R. Part 293, which governs the review and approval of Tribal-state gaming compacts, clarify the Department’s criteria when approving these compacts. This newest update aims to provide clear guidance on allowable negotiation topics between Tribes and states, eliminating ambiguity and streamlining the negotiation process.

Important terms related to gaming compacts have received better definitions, reducing potential areas of contention. The new regulations also explicitly outline when the Department must review a gaming compact, ensuring a more transparent and predictable review process. Assistant secretary for Indian affairs Bryan Newland remarked that the update upheld the government’s treaty and trust responsibilities to Tribal Nations.

A key part of that is our obligation to support Tribal Nations as they work to revitalize communities by opening businesses and creating jobs that strengthen their economic self-sufficiency.

Bryan Newland, assistant secretary for Indian affairs

These updated rules received extensive input from Tribal nations, with two listening sessions and seven formal consultation sessions held to gather insights and recommendations. Written comments from Tribes and the public further helped refine the new regulations, reflecting the Department’s commitment to collaboration and responsiveness to Tribal input.

Florida’s Troubles Proved the Need for Better Laws

The Department of the Interior’s drive to clarify tribal gambling regulations likely aims to avoid situations like Florida’s gaming compact between the Seminole Tribe and Gov. Ron DeSantis in Florida, which faced a prolonged legal battle. While the Seminole Tribe relaunched its Hard Rock Bets platform in 2023, the disruptions significantly hindered sports betting’s introduction to the Sunshine State.

West Flagler Associates, the party responsible for the lawsuit, openly questioned the Department of Interior, implying that the Seminole’s compact violated the law. The company’s latest legal maneuver was a writ of certiorari to the US Supreme Court, hoping to overturn the current verdict. If successful, the legal battle may extend into 2025, threatening the Seminole Tribe’s substantial investments.

With the new rules set to be effective 30 days after publication in the Federal Register, Tribal nations engaging in gaming compacts will benefit from increased clarity and certainty. The move aligns with broader initiatives under the Biden-Harris administration’s Investing in America agenda, which aims to deploy significant investments to help develop Tribal communities.

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In the 1950s, a federal excise tax on sports wagers was implemented as a method to fight against illegal gambling. The tax, which is 0.0025% of every sports wager has remained in place since, despite efforts of lawmakers against it. While at the time, only Nevada was affected by the tax, this is not the case at present.

Now, a newly introduced legislation, supported by Sen. Richard Blumenthal and Rep. Andrea Salinas, proposes to use the money raised from the federal excise tax on sports betting to develop a new fund that will help with research, treatment and prevention of gambling addiction.

Per the new proposal, labeled as the “Gambling Addiction, Recovery, Investment, and Treatment Act,” some 50% of the tax, which is often referred to as the handle tax, would be used for funding the initiative.

As announced by the Nevada Independent, Salinas and Blumenthal released a joint statement, highlighting the importance of dedicating more funds toward research, treatment and prevention of gambling harm across the country. “The growing legalization of sports and online betting, paired with the ability to place bets from your phone whenever you want have created a perfect storm for gambling addiction,” explained Blumenthal. Additionally, he said: “Dedicated federal resources to tackle problem gambling head-on will provide much-needed support, resources and treatment for those suffering from gambling addiction.”

According to Salinas and Blumenthal, the new proposal is supported by the National Council on Problem Gambling (NCPG). The duo confirmed that the proposed bill also enjoys approval from problem gambling councils in Connecticut and Oregon.

Not Everyone Agrees with the Proposed Handle Tax Bill

The proposed legislation about the handle tax surely surprised Rep. Dina Titus, one of the long-term opponents of the tax. For 10 years, she has been trying to repeal the federal excise tax on sports betting, deeming it “redundant.” On Friday, Titus supported her position that the federal excise tax isn’t needed considering that states that have legalized sports betting already dedicate resources toward fighting problem gambling.

“Nearly every tax dollar earmarked for problem gambling services comes from casino gaming taxes, including new legal sports betting and iGaming markets.“

Chris Cylke, SVP of the American Gaming Association

Chris Cylke, the American Gaming Association’s senior vice president, shared Rep. Titus’ position. He explained that both legal online gambling and sports betting activities across the country raise money for problem gambling. Additionally, Cylke warned that amid the expansion of legal gambling across the country, the “antiquated” federal excise tax represents a disadvantage for licensed operators and favors the illegal gambling sector, where no license fees or taxes are paid any way.

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Jordan Lewis Cook, a former Gun Lake Casino employee responsible for maintaining and unclogging the casino’s cash-out machines, has confessed to stealing over $84,500 in cash over a span of 14 months. 

The Casino Worker to Return $84,564 Stolen from Indian Tribal Organization

The federal charge against Cook is for theft from an Indian Tribal Organization, which carries a potential punishment of up to five years in prison and a hefty fine of $250,000. Cook is scheduled to be sentenced in January.

The series of thefts occurred between September 2021 and November 2022 at the popular Allegan County casino operated by the Gun Lake Tribe. Cook’s responsibilities included helping clear jams in the cash-out machines located in and around the casino floor. To perform this task, he used a key card to open the machines, removed the cassettes holding currency in various denominations, and addressed any misfed or crinkled bills. Shockingly, he would also pilfer cash from the machines during this process, as revealed in the ‘factual basis of guilt’ contained in the plea agreement.

Cook admitted to stealing various denominations of cash on at least 32 separate occasions, resulting in a staggering total of $84,564, which he then converted for personal use.

The federal theft charge against Cook was initially indicted in March. Following his arraignment in May and his release on $10,000 bail, Cook and his legal team opted for a plea agreement, ultimately admitting his guilt in late August. The plea deal stipulates that Cook must make full restitution of the stolen money to Gun Lake Casino. 

Another Michigan Casino Worker Faces Million-Dollar Bail in $700,000 Embezzlement Case

Another similar case in the state saw Danika Young, a 38-year-old cash cage supervisor at the Four Winds Hartford Casino in Michigan, accused of embezzling $700,000. She was arrested and her bail was set at $1 million.

Young claimed she received a call instructing her to take the money to Indiana, but the funds remain unrecovered. She faced charges related to embezzlement and could potentially serve up to 20 years in prison if sentenced. Judge Arthur Clarke expressed concern about the missing money and set a high bail to prevent Young from disappearing.

At the same time in neighboring Minnesota, Blake Carl Fitzgerald faced potential prison time for operating an illegal gambling scheme on TikTok and Discord. Over three months, he allegedly received $65,103 from customers through CashApp and Venmo, then live-streamed himself playing slot games at casinos, with subscribers choosing the machines.

Fitzgerald kept more than half of the winnings and charged subscribers $5.99, communicating with them on Discord. He now faces three counts of running an illegal gambling operation, which could result in up to three years in prison and significant fines.

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In a recent development, Federal Court Justice Michael Lee has raised doubts about Crown’s assertion that it cannot afford to pay the AUD450 million ($301 million) fine imposed by AUSTRAC in a single payment. The fine was levied against the casino giant for numerous breaches of anti-money laundering and counter-terrorism laws.

Justice Lee Questions Crown’s Financial Predicament in Landmark Court Proceedings

During the court proceedings, Justice Lee emphasized that the penalty was already at the lower end of what would be considered an appropriate punishment for the company’s “absolutely egregious” misconduct, reported the Australian Financial Review. Crown’s suggestion to pay the fine over a two-year period would reduce its net present value to AUD406 million ($271.6 million) when accounting for interest rates.

Crown’s barrister, Philip Crutchfield, KC, claimed that the company “can’t afford to pay more than we’ve agreed.” However, Justice Lee expressed skepticism about the veracity of Crown’s financial predicament, noting the lack of substantial evidence beyond an affidavit from the company’s CFO, Alan McGregor. Justice Lee further highlighted the absence of cross-examination of McGregor by AUSTRAC, which hindered the verification of Crown’s claims.

Justice Lee emphasized the need for accountability and suggested that the lack of thorough examination of witnesses’ affidavits could undermine the honesty of their statements. He also raised concerns about the penalty’s failure to factor in the historical payment of dividends to Crown shareholders, suggesting that the penalties should be significant enough to discourage similar illegal activities.

In February, Justice Lee also criticized AUSTRAC for taking too long to bring the case against Crown to the court.

Crown’s Contrition Questioned as Justice Lee Weighs Options for Fine Approval

Justice Lee is expected to deliver his final decision on the afternoon of July 11. While he indicated his inclination to approve the fine, he also contemplated the possibility of appointing an independent party to assess Crown’s financial situation. Alternatively, he proposed allowing a payment plan but with provisions for Crown to pay earlier if its financial position improved.

Crown’s contrition was also called into question during the court proceedings. Although the company expressed remorse for its breaches and underwent a complete overhaul of its board and senior management, Justice Lee challenged whether the changes truly reflected a genuine state of contrition. He emphasized that contrition should entail a genuine change of mindset and not merely the replacement of individuals involved in the wrongdoing.

The outcome of this case will have significant implications for Crown and the gambling industry as a whole. At the same time, Australia is poised to implement significant changes to its gambling industry, with proposals for a national gambling regulator and a ban on all forms of gambling advertising.

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An error by a federal judge soon after sportsbooks launched in Florida lawmakers on the budget committee along with recipients of state funding as well as Gov. Ron DeSantis have scored a rather large victory in court – worth at least $2.5 billion and as much as $6b by some estimates.

A three-judge panel on the D.C. Circuit Court of Appeals has rejected a challenge to the 2021 state/tribal gaming compact in Florida that authorized the Seminole Tribe there to offer mobile sports betting. The practice was banned soon after books opened for business in 2021 and online sports betting in the state has been deemed in violation of the law since that time.

Sports Betting Could Open Back Up in Florida Right Away

However, that could change at any time with the new ruling. Sportsbetting could return to Florida virtually overnight.

In a nutshell, the judges decided that any conflict with the opposing party needed to be settled under state law as none of the assertions made actually had anything to do with federal law. So, while it may appear to be a landmark decision, it was really more of a venue correction than anything else in the final analysis and an appeal by the plaintiffs could send the industry right back into a death spiral at any time with a challenge to the decision and an injunction.

The Seminole Tribe applauded the decision but stopped short of saying it would resume sports betting right away.

A lawyer representing the casinos that had challenged the compact pointed out what the plaintiff side saw as nonsensical – according to Hamish Hume, the court had somehow “recognized” that federal gambling laws “cannot authorize gambling off of Indian lands, but then upheld a compact that purports on its face to do exactly that.”

The legal counsel stated, “We respectfully disagree with that decision, and are evaluating our possible next steps.”

The federal appeals court’s reversal of a lower court judge’s order was personally and politically important for Florida Governor Ron DeSantis because he personally lobbied lawmakers to pass the compact in 2021.

A spokesman for the governor stated: “While we are not surprised the lower court’s perplexing ruling was unanimously overturned, this is great news for Florida,” Mahon said in an email to Politico. “We will continue working with the Seminole Tribe of Florida to ensure the success of this historic compact — the largest gaming compact in US history.”

A spokesman for the Seminole Tribe said of the most recent decision: “The Seminole Tribe of Florida is pleased with today’s unanimous decision. It is a positive outcome for the Seminole Tribe and the people of Florida and for all of Indian Country. The Tribe is fully reviewing the decision to determine its next steps.”

New Compact Also Authorizes Table Games

In addition to authorizing sports betting the “new compact” also allowed the tribe to offer table games such as craps and roulette to its existing slots casinos and to build at least one more casino on its reservation the Hollywood area which already has a Hard Rock Hotel & Casino.

In the ruling that blocked implementation of the compact, D.C. District Judge Dabney Friedrich decided the compact was beyond what the laws allowed because it let people place sports bets anywhere in the state – which could be a violation of federal law that govern gambling on Tribal lands.

The impetus of the adverse decision was a pair of lawsuits brought by an anti-gambling group active in Florida, another that focuses primarily on the southern part of the state and casino competitors. Plaintiffs had sued U.S. Secretary of the Interior Deb Haaland, who didn’t block the compact but instead took no action and allowed it to automatically come into effect after some time as prescribed by law.

The erring judge also determined that it would take a new citizens’ initiative to authorize sports betting under the premise that voters passed a law in 2018 that required any expansion of casino gambling without a citizen’s initiative – that law was supported by both Disney Corp and the Tribe.

The Tribe and DeSantis relied on the legal theory that bets processed on servers physically situated on tribal lands were indeed placed “on the Reservation”. The Trump-appointed judge called that a “fiction” and stated that: “When a federal statute authorizes an activity only at specific locations, parties may not evade that limitation by ‘deeming’ their activity to occur where it, as a factual matter, does not.”

The panel of D.C. appeals court judges in essence said that neither argument mattered in this instance: “Whether it is otherwise lawful for a patron to place bets from non-tribal land within Florida may be a question for that State’s courts, but it is not the subject of this litigation and not for us to decide.”

“We hold only that the Secretary’s decision not to act on the Compact was consistent with <federal law>,” wrote Wilkins who added, “We express no opinion as to whether the Florida statute ratifying the compact is constitutional” under Florida law.

The balance of arguments raised by the litigants against the legality of the compact was also summarily dismissed as a ‘matter for state courts to decide’.

Source: DeSantis scores big legal win upholding $2.5B gambling deal with Florida tribe, Politico, June 30, 2023

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The following article reflects the knowledge, experience, and well-reasoned opinions of the authors and is not meant to be construed in any way as legal advice. Online gamblers in all US states should consult their state laws or seek legal counsel to determine if online gambling at unlicensed offshore websites or gambling venues licensed by regulators located anywhere but within their domiciled states is a crime or a right to be exercised freely by responsible adults. The same applies to federal gambling laws or any other ancillary issue related to online gambling.

Regulators from seven US states have contacted the United States Department of Justice in an attempt to nudge the DOJ into “doing something” about offshore competition in the online gambling market.

Not Understanding Federal Law?

As is usually the case when such actions occur, the signatories refer to all offshore gambling sites with a broad brush whether purposefully or not – lumping all other operators of gambling into one basket and broadly referring to them as “illegal” online gambling sites.

At least that is the implication as state regulators and spokespeople from the American Gaming Association (AGA) consistently leave out any real differentiation among casino sites licensed offshore, illegal sportsbetting sites, and the very small handful of operators that provide services to players in the USA with no known license at all.

Painting every online gambling operator with the same broad brush appears to the informed consumer or observer as disingenuous at best.

The most recent public relations gambit is co-signed by regulators in some of the most financially successful US gambling states including Colorado, Illinois, Louisiana, Michigan, Mississippi, Nevada, and New Jersey.

Some of the issues addressed in the letter to US Attorney General Merrick Garland are some real and unreal dangers the ill-informed assume are associated with gambling online. These include age verification, money laundering concerns, responsible gambling protocol, game fairness, and the lack of each or any state capturing tax revenues.

The letter also states that offshore operators are not subject to any licensing requirements. The vast majority of those points are incorrect and are most likely based on good-faith misunderstandings of how offshore online gambling operators actually operate.

Well over 90% of offshore casinos and most sportsbooks that serve US players are licensed in the jurisdiction of Curacao (formerly known as the Netherland Antilles). Operators are required to verify the identity, age, ownership of financial instruments used to deposit, a player’s address, their subscription to local utilities, and quite often a copy of their bank account statements at a minimum.

Three Decades of Compliance

Operators in the offshore jurisdiction of Curacao have followed essentially the same protocol since the mid-1990s.

These documents cover nearly all of the concerns raised by the regulators including money-laundering concerns.

The over-arching government-sanctioned gambling license issuer makes sure that anti-money laundering concerns are taken care of through international authorities in compliance with an anti-money laundering/counter financing of terrorism (AML/CFT) framework that addresses both risk issues.

In a nutshell, what’s known as “document verification” – which is enforced by 99% of all offshore operators as any offshore player knows – addresses all concerns listed except responsible gambling issues and tax collections.

Responsible gambling is only addressed at the most critical level which is gambler self-exclusion. Even there, if an operator refuses to let a gambler self-exclude, they will have their Curacao license revoked. However, there are no auxiliary tools available for players to set deposit or time limits, force breaks at prescribed time intervals, or any of the other things more stringent regulatory regimes such as the Malta Gaming Authority or the British Gambling Commission may require.

That leaves the competition for the gambling dollar and state tax revenues buried in slurs of illegality, and black market accusations.

While this may seem to be counter-intuitive, offshore casinos are actually not illegal at the federal level nor have they ever been in the United States. It is, however, incumbent upon each consumer to check their own state laws to determine if the practice might be legal in their state. If competent legal counsel is indicated, that should be sought.

The Wire Act of 1961

Interstate or Inter-territorial sports betting is illegal in the United States and has been since 1961. While the US DOJ under various administrations has sided with casino moguls such as the late Sheldon Adelson in determining offshore casino gambling to be illegal, the world’s biggest lottery company by gross receipt,s, IGT recently sought and received a declaratory judgment (once and for all) that very specifically informs that The Wire Act only applies to sports betting operations. The act of casino gambling has no federal law to prohibit it.

The sticky wicket in this reality is the UIGEA (Unlawful Internet Gambling Enforcement Act of 2006) which neither creates new gambling laws nor modifies any existing laws as clearly stated in the law itself. It does, however, make most online financial transactions (deposits and withdrawals) illegal and de facto money laundering simply because US financial institutions have been given “guidance” that assumes the Wire Act applies to all interstate or inter-territorial wagers.

However, the very act of providing a gambling service or a US citizen partaking in offshore gambling is not a crime at the federal level by any law this editor has seen in nearly three decades in the industry. so it’s unclear how Attorney General Merrick Garland could be of assistance to state regulators unless he attacks the practice “from the side” and deems them all to be illegal thanks to incorrect guidance from the Federal Trade Commission (FTC) and the Federal Deposit Insurance Corporation (FDIC) which was issued during the Bush administration in 2007 under the false premise that the Wire Act actually applied to anything but sportsbetting.

In the letter to AG Garland, the Executive Director of the Michigan Gaming Control Board (MGCB), Henry Williams states: “In Michigan, strict laws and rules govern internet gaming and sports betting and provide consumer protections, promote confidence and ensure fair and honest gaming. We are willing to help the US Department of Justice in any way we can as it pursues enforcement of US laws against offshore illegal gaming enterprises that take advantage of our citizens.”

“State regulators like the MGCB ensure operators offer products that pass technical standards and testing, and we also require operators to comply with reporting requirements.

“Offshore operators flaunt state regulations and offer products that do not protect the public, which greatly concerns me and my fellow state regulators,” Williams added.

He continued, “Regulated operators recognize licensing is a privilege that can be taken away, but illegal operators do not face similar consequences for failure to follow laws and maintain integrity.”

Source: Regulators urge DoJ to take action on offshore gambling, iGaming Business, May 5, 2023

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