In a bold move, North Carolina Gov. Roy Cooper has firmly rejected a controversial plan put forth by Republican state lawmakers. The plan aimed to tie the long-awaited expansion of Medicaid to an ambitious proposal to significantly expand casino gambling within the state. 

Medicaid Expansion Jeopardized as Governor Cooper Slams Casino Pairing

Gov. Cooper’s decision comes as little surprise, as he had already expressed his reservations about linking these unrelated subjects. On social media, the governor called the proposed pairing “the most brutally dishonest legislative scheme” he had encountered during his more than three decades in politics.

While both Medicaid expansion and casino expansion had at times been tied to the passage of a new state budget, their fates now remain uncertain. Initially, Republicans had voted in favor of Cooper’s efforts to expand Medicaid under the Affordable Care Act earlier this year. However, they conditioned the final expansion on the approval of a state budget for the current fiscal year, which began on July 1.

Similarly, advocates for casino expansion had sought to incorporate their proposal into the budget, but this faced resistance from both Republican and Democratic members of the General Assembly.

Governor Cooper’s rejection of the Republican scheme indicates his willingness to take a stand, even if it jeopardizes the Medicaid expansion he has fervently pursued throughout his two terms in office. This expansion promises affordable health coverage to over 600,000 North Carolinians and will prevent hundreds of premature deaths each year.

Governor’s Concerns Over Gambling Expansion Influence Decision

An administration official close to Cooper revealed that the governor’s decision was influenced by concerns regarding the potential negative consequences of a massive and unprecedented gambling expansion, including the risks of corruption and addiction, reported NC Newsline. Additionally, the projected tax revenue generated by the casino plan appeared to be comparatively modest.

Earlier this year, Gov. Cooper did sign a bill legalizing online sports gambling in the state, a move that garnered bipartisan support in legislative committees and floor votes despite its controversial nature.

However, while North Carolina is gearing up to launch online sports betting activities next year, and lawmakers are exploring the expansion of casino-style gambling, a recent report revealed that at least eight state lawmakers, including Sen. Phil Berger, received a total of $34,400 in campaign contributions from individuals connected to an out-of-state gambling operator, The Cordish Companies.

While accepting such contributions is not illegal, it has raised concerns among critics and financial analysts about potential unfair advantages as the state considers new casino developments and gambling expansion.

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However, the approved legislation has left both industry insiders and Atlantic City casinos puzzled due to unexpected changes made earlier in the week.

New Jersey’s Internet Gambling Extension Cut Short, Causing Concern Among Stakeholders

The original plan was to grant a ten-year extension to Internet gambling, which has been in operation for a decade now. But, surprisingly, an Assembly panel secretly shortened the extension to just two years, causing confusion and concern among stakeholders. Shortly after, the extension was amended again to a five-year term without any official explanation.

The state Assembly and Senate approved the bill with little resistance, and now it awaits the decision of Gov. Phil Murphy, a Democrat, who has the final say on its implementation.

The Atlantic City casino industry, through its trade association, has voiced strong support for a full ten-year extension, citing its critical importance for the casinos’ sustained success. Daniel Heneghan, a gambling industry consultant, expressed his reservations about the shortened extension, saying it could send the wrong message to potential companies interested in entering the online gaming market, reported the Associated Press.

Since the introduction of Internet gambling in November 2013, the casinos in Atlantic City, along with their online partners, have generated an impressive $6.29 billion in revenue from online gamblers. This growth has been widely attributed to the survival of Atlantic City casinos during the challenging months of the pandemic, where online gambling proved to be a lifeline for the struggling industry.

New Jersey Legislature’s Move Spurs Debate on Gambling Tax Rates and Market Uncertainty

Despite the state’s thriving online gambling market, there are concerns that the Legislature’s decision to cut the extension may have already had adverse effects. Experts fear that uncertainty surrounding the industry’s future could deter potential investors, hindering further growth in the nation-leading internet gambling market.

There is also speculation that the Legislature’s move might be a strategic attempt to gain leverage over Atlantic City in terms of increasing future gambling tax rates. Presently, the state taxes in-person winnings at casinos at a rate of 8%, while online sports betting and internet gambling are taxed at 13% and 15%, respectively.

The fate of internet gambling in New Jersey now lies in the hands of Gov. Murphy. If he signs the bill, online gambling will be authorized to continue for another five years. However, should he reject or veto the bill, online gambling will be limited to Atlantic City casinos only. 

During the month of May, New Jersey lawmakers also put forward additional legislation to tackle the increasing issue of gambling addiction among college students. The proposed bill mandates educational institutions to prominently display a hotline number for gambling addiction. In May, another bill was introduced in New Jersey, signaling a change in the state’s approach to dealing with underage gambling. The legislation aims to offer assistance and support to young individuals facing gambling addiction, rather than focusing on punitive measures.

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Gov. Jared Polis has found the bill to be vastly inappropriate and said that it was impossible for him to go ahead and approve it. The bill went through some legislative rollercoaster with lawmakers who originally not supporting it, changing their minds, and ultimately sending it to Gov. Polis’ desk.

No Credit to Be Extended to Patrons in Casinos – For Now

It was there where SB23-259 had its fiercest opposition yet with the governor arguing that the proposal to extend credit markets of $1,000 or more was inappropriate. He argued that there were ethical and legal concerns with this legislation. For one, how is the state to ensure that people with substance or gambling disorders are protected when they can tap into credit to play more?

This invites a dangerous way for casinos to interact with their patrons and one that Gov. Polis simply could not approve of. Gov. Polis is one of the public figures to have changed his mind on the bill himself, however. He previously vowed support for SB23-259 in the sense he wanted to see more tourists motivated to visit Colorado.

The bill, he thought previously, could have made it possible to attract more VIP customers and casino-goers who come from across the state border, a win-win for local businesses and the state. The original design of the bill though is not to instigate social malaise but to rather offer high rollers and other VIP customers convenience.

Not Designated for the Right Type of Customers

High rollers traveling with high amounts of cash may not feel entirely comfortable taking the trip to Colorado and its casinos. However, if a person can apply for credit beforehand, that is another matter altogether, the logic goes.

Meanwhile, Colorado’s casino properties have been looking to attract more clientele from across the border with Wyoming, New Mexico, Arizona, Nebraska, and Kansas. Gov. Pois is not entirely convinced that SB23-259 was worded properly.

He explained his lack of support for the bill by explaining that the bill failed to focus on out-of-state high rollers. Gov. Polis would have expected the bill to have been specifically targeting that cohort of VIP visitors and not locals. The veto comes as a blow to lawmakers who expected to see the bill signed into law. They would now have to wait for the next legislative session most likely.  

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The Indian state of Tamil Nadu has passed a new bill to ban online gaming in spite of last week’s IT law amendments. The state is firm in its belief that regulation will not solve the gambling problems it faces.

In Tamil Nadu, the so-called Tamil Nadu Prohibition of Online Gambling & Regulation of Online Games Bill was just cleared by Governor Ravi. This marked the second time he had been sent this bill and followed earlier attempts to crack down on gambling.

The government said that it will not ban down on its decision, despite the newly-introduced IT rules. For reference, last week an amendment introduced changes to existing IT regulations in the state that provide the regulatory framework for online gaming.

In spite of that, the head of Tamil Nadu’s online gaming panel, Justice K Chandru, favors the introduction of a blanket ban that would ban all gaming. He believes that introducing a regulatory framework would be insufficient.

Chandru said that the only way forward, he believes, is banning online gaming. He argued that regulation will still allow people to play online, which would mean that the state would experience no real change.

The Bill Was Previously Delayed

The Tamil Nadu Prohibition of Online Gambling & Regulation of Online Games Bill was passed by the government in October 2022. However, Gov. Ravi did not sign it into law because he wasn’t sure if the state can actually pass it. He returned the bill on March 6, 2023, asking for additional clarifications, despite receiving clarifications in November 2022.

The bill has the full support of the DMK-led government and will ban all online money games in the state. As a result, it would any operator offering such products from providing them in the province.

While gambling is usually a state subject in India, the passing of the Tamil Nadu Prohibition of Online Gambling & Regulation of Online Games Bill will likely lead to a dispute between the state and central governments. Experts expect online gaming bodies to try to fight the ban in court.

Tamil Nadu has long fought against online gambling. Real-money games have led to spikes in gambling harm, sparking concerns within the government. To make matters worse, people have been taking their lives over lost bets, adding an extra layer of urgency to the situation.

In February, India banned hundreds of gambling and betting apps in addition to a number of loan services.

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