Chris Cylke, vice president of government relations at the American Gaming Association (AGA), has pointed out that attractive promotions, better odds, and the ability to gamble with cryptocurrencies are some of the things that lure people into illegal gaming.

Illegal Gaming Threatens Consumers and Undermines the Legal Industry

Different aspects are included in illegal gaming such as offshore online casinos, unregulated slot machines and illicit sportsbooks. These hidden activities present significant threats to customers and undermine the legal gambling sector.

However, Cylke further noted how important it is to educate consumers about the risks associated with these illegal platforms, reported local media outlet Vegas Inc. According to him, illegal gambling is not a victimless crime as many believe. Users may expose their personal and financial details to unregulated entities which could be located anywhere since there is no oversight over them and customers do not know where their money ends up.

Legalized operators face stiff competition from such illicit operations which do not incur costs like getting licenses or paying taxes. In 2022 alone, reports indicate that illegal betting houses took in more than $510 billion worth of bets while legal establishments lost over $44 billion due to this unfair competition. The legalization of sports betting in numerous jurisdictions in the US has led to a decrease in illegal sports betting, but online casino gaming remains a major issue, with over $337 billion transacted illegally.

Illegal Sports Betting: A $13.3 Billion Tax Drain

Cylke reiterated on consumer education saying that sometimes individuals unknowingly visit sites considered illegal because they appear prominently on search engines. He further stated that some users knowingly choose these sites to avoid scrutiny, a practice that further complicates the problem.

Alan Feldman who is UNLV’s director of strategic initiatives highlighted the absence of consumer protection safeguards found within unauthorized gaming websites together with the fact that they do not pay taxes and thus deprive state coffers of revenues meant for local economies. An AGA report also pointed out that state governments lost $13.3 billion in tax revenue due to illegal and unregulated sports betting.

Feldman called upon all US states where gambling has been legalized to acknowledge the damage caused by unlicensed gambling establishments arguing that legalization of sports betting was primarily done with an aim to generate additional tax dollars for public use. Additionally, he mentioned that people affected negatively by illegal gambling rarely come forward thereby complicating matters even further.

To fight against the illegal gaming industry leaders are calling for stricter law enforcement coupled with creating awareness among the general public. Feldman cited Nevada as an example where they have employed GeoComply technology among others which help to identify and block unauthorized betting activities whilst Cylke commended the Michigan state government’s move of issuing cease-and-desist letters to major illegal sites.

The post How Illegal Gaming Operations Undermine the Legal Industry in the US appeared first on Keno Wizard.

A cease-and-desist letter has been issued by the Michigan Gaming Control Board (MGCB) against Bovada, an offshore online gaming operator registered in Curaçao. The move comes after an investigation found that Bovada.com and Bovada.lv were both available to Michigan residents without proper licensing.

Executive Director Williams Warns Illegal Online Gaming Will Face Strict Enforcement

Executive Director of the MGCB Henry Williams said this was a significant step because regulators around the world have become increasingly concerned with online gaming platforms. He added:  

“This action serves as a stern warning to overseas companies that flouting local regulations will not be tolerated. The MGCB remains steadfast in its commitment to upholding Michigan’s laws and regulations and will continue to actively monitor and enforce compliance within the state to ensure a fair and secure gaming environment for all.”

Bovada is run by Harp Media BV and has been accused of violating several state statutes such as the Lawful Internet Gaming Act and Michigan Gaming Control and Revenue Act. These laws specify that only internet gambling establishments which are licensed by the state (including federally recognized tribal casinos) may provide such services within Michigan. Running an unlicensed betting operation in this state can lead to imprisonment for up to 10 years or fines amounting to $100,000.

Harp Media BV has 14 days from receipt of notice of the cease-and-desist order issued by MGCB to prevent access to its gambling offerings from any device located anywhere within the geographical boundaries of the state of Michigan. However, should it fail to do so then legal proceedings shall be initiated against them by the MGCB.

MGCB Stresses Consumer Safety in Crackdown on Unlicensed Online Gambling

The MGCB also emphasized the need for consumer protection. The regulator pointed out that unauthorized websites lack the necessary measures specified by Michigan’s rules to assist players in managing their gambling habits. According to the organization, such systems’ absence can pose a significant danger to people with gambling-related problems.

Despite this fact, MGCB cannot directly enforce its rules against a company like Harp Media B.V., which is based outside the country. However, previous experiences show that regulatory pressure may work in this case. 

Last year, Virtual Gaming Worlds stopped operating in Michigan after being warned by regulators about the same issue. 

It is unclear what Bovada will do next given these legal obstacles. The recent action taken by the MGCB is intended to make internet-based gambling more secure and fair, especially for residents within Michigan.

For their part, people living in Michigan should be careful when selecting where they gamble online. The Regulator advises them to only use platforms licensed by the MGCB, a list of which can be found on its website.

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Fanatics Betting and Gaming has officially completed its acquisition of PointsBet’s US operations, marking a significant expansion in New Jersey where it has now gone live. This latest development brings Fanatics’ sportsbook services to all 20 states where PointsBet was previously active, covering approximately 95% of the US online betting market.

The acquisition, valued at $225 million, was finalized in April 2024 following an agreement made last year. As part of the transition, all existing PointsBet customers in New Jersey will have their usernames, passwords, account balances, rewards points, and responsible gaming settings seamlessly transferred to the Fanatics Sportsbook platform.

Expanding Casino and Sportsbook Operations

New Jersey also becomes the fourth state where Fanatics has introduced its online casino, featuring a variety of games including roulette and slots. The Fanatics Sportsbook is already operational in states such as Arizona, Colorado, Connecticut, and many others, while the Fanatics Casino is available in Michigan, Pennsylvania, and West Virginia.

Strategic Acquisition and Market Expansion

The journey to this acquisition began in June 2023 when Fanatics made an initial $225 million bid for PointsBet US, following a competitive bidding process that included a rival offer from DraftKings. Although DraftKings initially proposed a higher bid of $195 million, they later withdrew, allowing Fanatics to proceed with their acquisition plan. The deal was cemented when PointsBet shareholders approved the acquisition at a meeting on June 30.

Over the past year, Fanatics has systematically taken over PointsBet’s operations across various states, with Kansas and North Carolina being recent additions. This strategic expansion not only enhances Fanatics’ footprint in the US market but also strengthens its position as a leading provider in both sports betting and online casino services.

Fanatics now operates 19 retail locations, including exclusive sportsbooks at notable venues like Progressive Field and Nationwide Arena, and the unique distinction of running the only sportsbook inside an NFL stadium at Commanders Field.

This acquisition represents a major milestone in Fanatics’ strategy to dominate the sports betting and gaming industry across the United States, promising greater market reach and enhanced customer experiences across its platforms.

Source: “Fanatics concludes PointsBet takeover with New Jersey launch”. iGaming Business. May 8, 2024.

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2024 edition of the Casino Operations Summit kicks off in Amsterdam on April 23 to run through April 25. One of the most prestigious gaming events gathering together European multi-channel casino operators will once again feature industry-leading sponsors and stakeholders. Once again, this year’s edition of the Summit will feature its platinum sponsors EGT and EGT Digital, industry-leading gaming technology and content providers.

Main Topics

The Summit, exclusively open to land-based and online multi-channel casino operators and sponsors, focuses on a variety of themes pending to the industry, with Volatility, Think Different in Technology, and Land-Based Casinos and Sustainability/ESG emphasized as the main topics of the conference. Held under the slogan ‘’Think Different,’’ the Summit expects to facilitate the exchange of information and opinions of around 300 attendees for the mutual benefit.

Event Schedule

The flagship event includes the Gaming in Holland mini-conference exclusively tailored for Dutch casino operators and scheduled for the first day of the Summit. However, all the attendees of the 2024 Casino Operations Summit will also have a chance to check out the latest developments coming from the EGT and its vertical EGT Digital, platinum sponsors of the event.

Platinum Sponsors EGT and EGT Digital

The visitors will therefore be able to view and try out some thrilling products, like the four new-released jackpot products. The exciting line-up starts with the 4-level Bell Link Boost and the Asian-themed Sheng Sheng Bu Xi, to continue with the player-favorite Bell Link and take the game at another level with the Gods & Kings Link jackpot experience.

Latest Multi-Game Developments

Further, the platinum sponsors will present some superior multi-game developments, such as the popular titles Gold General, Blue General and Winner Selection. On top of that, the latest Supreme Selection multi-game series will offer an exclusive insight into the first installment, the Supreme Green Selection release. In fact, EGT and EGT Digital will offer a total of 50 engaging titles for the visitors to personally sense the level of excitement radiating from each game of the impressive package.

Customized Products

The Summit held in the vibrant city of Amsterdam also represents an opportunity for the Dutch operators to review some EGT’s solutions customized for the Dutch market. One of these is the cutting-edge Phoenix AWP cabinet, powered by Exciter platform and featuring 27-inch monitors and state-of-the-art keyboard with video and electro-mechanical options. The solution includes the multi-game Bonus Prize Collection AWP, specially designed for the Dutch players, and much more.

2024 Casino Operations Summit, sponsored by EGT and EGT Digital, opens its gates today to facilitate valuable connections among industry stakeholders.

Source: “EGT and EGT Digital Will be Platinum Sponsors of Casino Operations Summit for Second Year in a Row’’. European Gaming. April 23, 2024.

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Bally’s Corporation continues its expansion across the US, and the newest casino is in Rhode Island.

Bally’s monopoly in the market

The state legalized iGaming eight months ago, and now it’s time for operators to expand their businesses to this new market. Bally’s is introducing its impressive portfolio of slot and table games to Rhode Island players, so gamers can enjoy the impressive portfolio of 170 captivating slot releases. To play, they must be at least 21 and create an account on Bally’s platform.

Before the official launch, the company conducted a technical trial that lasted for four days to make sure everything was working properly. On top of that, Stakelogic incorporated its live dealer and table games software studio technology in its portfolio.

Back in 2021, Rhode Island legislators approved Bally’s and its IGT supplier a 20-year contract for land-based casinos Bally’s Twin Rivers Lincoln Casino Resort and Bally’s Tiverton Casino & Hotel, so the company has a monopoly in this market. Now, this monopoly will also be transferred to the iGaming industry. Gamesys, Bally’s online arm, might be the only operator who is able to offer its services in Rhode Island.

According to the state’s law, Bally’s and IGT will be obligated to pay 50% of online slot revenue to the state. Tax revenue imposed on table games is 18%.

The industry giant is prepared for launch, so the company has built a Live Dealer Table Studio placed across 4,000 square feet at Twin Rivers.

The state established a body to regulate all iGaming operations, the Rhode Island Division of the Lottery. Now, the body oversees two of Bally’s casinos in the state.

Sports betting revenue decrease

The law ensured that geolocation technology could be used to confirm that players were located inside the state’s borders. If the state has a reciprocal agreement with another state regulator, it might lead to allowing the players to play outside Rhode Island. Sports betting used to be very popular in the state, but according to the revenue reports, its popularity started to decrease. In January, the sports betting handle was $44.8 million. In December 2023, it was $47.9 million, and not only is this figure lower than December’s, but it’s also the lowest handle since September 2023. So far, the handle in the 2024 financial year decreased to $267.2 million, since in 2023 it was $332.8 million. Bally’s interactive iGaming business might help in increasing the revenue in the state since iGaming increased the revenue in the whole country. Apart from Rhode Island, six states legalized iGaming operations: New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, and Connecticut.

Source: iGB Editorial Team. “Rhode Island becomes seventh US state to launch iGaming”, igamingbusiness.com, March 5, 2024.

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Hard Rock International has begun work on its joint project with the Tejon Indian Tribe in California. The groundbreaking ceremony for the Hard Rock Hotel & Casino Tejon featured a commemorative shovel groundbreaking and was attended by representatives of both Hard Rock and the Tejon Indian Tribe.

Described as an exciting day for the state, the ceremony is also a symbolic development for the tribe, which has been landless for more than 150 years. The new casino is a major victory for the Tejon, which, according to its chairman, Octavio Escobedo, is finally close to the “dream of self-determination through economic development.”

The casino hotel will create 2,000 construction-specific jobs and will be managed by the Penta Building Group. After its completion, the property is expected to create roughly 5,000 jobs, both full-time and part-time.

The Hard Rock Hotel & Casino Tejon will also boast 150,000 square feet of gaming space. The casino is set to have 2,500 slot machines, 48 gaming tables and video poker. The property will also sport a multitude of dining options, a pool, a spa, a theater and 400 hotel rooms.

The casino hotel is expected to be completed within 22 months.

Hard Rock Names a New SVP of Hotel Operations

In the meantime, Hard Rock International expanded its team with the appointment of John Rees as its new senior vice president of hotel operations. The new appointee will be responsible for leading and supporting all facets of hotel operations and will serve directly under Jon Lucas, the company’s chief operating officer.

Rees boasts some 30 years in the hospitality industry and is a passionate innovator. He completed his hospitality studies at Newbury College and has since also secured certifications in restaurant management, leadership training and wine studies from acclaimed universities. Rees completed his hospitality training at the Hotel Bellevue Palace in Bern, Switzerland. He also holds an Honorary Degree in Culinary Arts from the Long Island Culinary Federation.

Rees said that he is thrilled to join the company at what he called a “pivotal point” for the Hard Rock brand.

Our future pipeline of hotel projects is very robust which will allow me to work with my teams to innovate and create more of the special brand touchpoints and guest experiences our fans expect.

John Rees, SVP of hotel operations, Hard Rock International

Rees concluded that he hopes to turn Hard Rock’s hotels into cool places to stay and feel like a VIP.

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In a public appeal, the Virginia State Police said that it is launching a dedicated hotline, Gaming Tip Line, which is aimed at helping authorities locate and shutter illegal gambling operations.

Illegal Forms of Gambling Now Targeted by the Public Eye

This comes after extended attempts by local authorities to limit the proliferation of illegal gambling properties that have continued to push their illicit business onto customers. A statement from the police reads:

“As the options and opportunities for legal gaming in Virginia expand, Virginia State Police is launching a statewide gaming tip line and online form for the public to report concerns of suspected gaming operations.”

Virginia police

The idea is to involve the public so that such operations are much harder to run, although they are unlikely to disappear completely just because an informant line has been set up.

Then again, there is a correlation between the lowering of illegal operations and higher public awareness and involvement. This comes at a time of reasonable doubts also raised about the nature of gambling expansion in Virginia, with one lawmaker said to have accepted donations from a casino developer.

The tip line need not deliver concrete evidence either, as people may just call in and leave tips about potential illicit operations that they only suspect. Meanwhile, Virginia continues to play a tug-of-war between bars, restaurants, and convenience store owners on the one hand and the Supreme Court on the other, which has taken a dim view of the so-called skill game machines in the state.

Skill-based games were banned in Virginia back in October by the Supreme Court of Virginia, finding the games to be nothing more than actual slot machines operating under a false pretence. Naturally, this has elicited a strong response from companies involved in the sector making a good buck out of it, and the owners of such establishments have confirmed that they would bear the brunt of this decision.

Arguing the Toss – Machines Have to Go

However, in the past two months since, the majority of such machines have been unplugged, indicative of the realization that no matter what the opposition, law enforcement will seize such games and most likely take punitive measures against any business owner that hosts such operations on their premises.

The machines, many owners said, were a lifeline for their business, and without them, they would simply go under, but this appeal has not swayed the Supreme Court. Now, Virginia’s police are taking matters further by encouraging the public to share evidence of suspected wrongdoing involving what is now considered illegal gambling.

The post Virginia Wants You to Snitch on Illegal Gambling Operations appeared first on Keno Wizard.

His years of arguing in favor of legalizing gambling have finally resulted in tangible proof that the Bluegrass State is all the better off for choosing to go down a path that regulates sports wagering.

Beating All Expectations and Then Some

According to the governor and the state regulator, the first two months of sports gambling operation have yielded $8 million in tax revenue for the state. This is a promising number that outlines a brighter future for the industry and one that will most likely beat initial expectations.

According to Gov. Beshear, the initial projections for $23 million in annual revenue may have been underestimated, with the government now looking to rake in far more from sports gambling in terms of tax.

No specific number was cited as there are lull periods throughout the sports betting year, which would mean smaller revenue for the state in certain quarters. Although the industry is fairly new, it came at the right time, as its September launch was just in time for the NFL regular season, the College Football Season, and several other prominent leagues and sports.

According to Gov. Beshear, a total of $656 million had been wagered on sports, with only $26.8 million of this amount going through in-person wagers, and the remainder routed through mobile options. The amounts indicate what was previously a black market that deprived the state of the opportunity to prop up its public purse through a business that was already ongoing.

Of course, a part of this revenue was driven not least because people have become aware that sports gambling exists. In other words, not everyone who has been betting in the past two months has been aware of the offshore gambling market and many have indeed avoided it. Sports gambling was not an easy push in the Bluegrass State either.

Sports Gambling Doing Well, What about Further Expansion

Gov. Beshear has been fighting the good fight for many years, and he has equally tried to introduce online poker, seeing it as another important part of the state’s gambling expansion, and a valuable source of revenue.

Although the current results are encouraging, neither sports gambling nor poker are particularly big drivers of state revenue compared to online casinos, but this is a topic that has not been broached locally.

Of course, there are still issues to address in the market, specifically the lack of sufficient therapists who can help address issues in the market when they arise. Problem gambling will see an increase over the next months, as will Kentucky’s sports gambling revenues. Both are worth paying close attention to.

The post Kentucky Sees Surge in Tax Revenue from Newly-Launched Gambling Operations appeared first on Keno Wizard.

Hard Rock Digital, Hard Rock’s online casino and sports betting arm, has welcomed a new addition to its team. The one to join the company at this time is Martin Graham Arthur who will serve as the company’s new director of product operations.

Joining a team of new and familiar faces, Arthur will now be responsible for managing the product team and improving the company’s offering. To that end, the new hire will leverage years of experience in the gambling sector.

Hard Rock Digital’s new director of operations boasts an impressive track record. He has worked within the gaming industry for over a decade and has served a number of notable companies.

Arthur’s career started in 2008 when he joined PokerStars as payment analyst. After almost two years, he was promoted as payment services manager and then product manager. In 2014, Arthur became PokerStars’ senior product manager – a position he held for over two years and a half.

Following that, Arthur became an associate director of product & program management for The Stars Group’s sports division. After almost three years in that position, Arthur saw The Stars Group acquired by the Irish gambling giant Flutter Entertainment. At that point, Arthur was appointed as Flutter’s vice president of product & program management for the US market.

As Hard Rock Digital’s new director of product operations, Arthur will leverage almost 15 years of industry experience and many years of product experience to bolster the operator’s business.

An Exciting New Chapter for Arthur

Arthur commented on his new appointment on LinkedIn, sharing an old photo. He reminisced about his arrival in London in 2008 and how he got his first “real job” at a company he hadn’t even heard of.

Now, Arthur has years of experience, 3 continental relocations, 1 FBI shutdown and “countless amazing experiences” behind his back. He thanked everyone who made his time with PokerStars/Amaya/The Stars Group/Flutter special.

I can’t name everyone who made this time special as there are too many, so I’ll just say thank you to all. So much in my life today that I am thankful for and appreciate traces back to this journey.

Martin Graham Arthur, director of product operations, Hard Rock Digital

Arthur added that he is very excited about the new opportunities awaiting him as a member of the Hard Rock family.

Now, I am incredibly excited to be taking on a new challenge with Hard Rock Digital as Director of Product Operations. Ready to rock with some familiar faces and a talented team!

Martin Graham Arthur, director of product operations, Hard Rock Digital

In August, Hard Rock launched its Hard Rock Bet brand in New Jersey.

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Financial crimes are difficult to solve, but not impossible. With such crimes, there’s always a trace that is linked to the money and this is precisely the case of a former employee at the Aria on the Las Vegas Strip that was accused of stealing more than $770,000 in fraudulent hotel reservation refunds. As reported by KLAS, the suspect, a 38-year-old hotel operations manager with the initials B.R.J., is facing 15 charges for his alleged involvement in the scheme.

Unlike some fraudulent operations that involve multiple individuals, so far, the 38-year-old management employee is the sole suspect for the embezzlement. B.R.J. first joined MGM Resorts’ hotel back in 2013. He held the role of operations manager, allowing him to process refunds, as well as other financial transactions. Yet, earlier this year, amid suspicions about his lavish lifestyle, B.R.J. ended his employment at the Aria abruptly.

Reportedly, the suspect is currently held without bail in Clark County Detention Center. A hearing on his source of funds is scheduled for September 11, 2023. At that hearing, the 38-year-old needs to prove that the money he may use for his bail was obtained through legal ways. On September 19, 2023, a preliminary hearing is scheduled on his case.

Overall, the former Aria hotel operations manager faces 15 charges for the alleged fraudulent activity. Charges against B.R.J. include an unlawful felony act regarding computers, attempted money laundering/money laundering, two charges for theft of more than $100,000 as well as two charges for theft of more than $5,000 but less than $25,000. Additionally, he faces nine counts of theft of more than $25,000 but less than $100,000.

Suspect Allegedly Completes 309 Fraudulent Transactions

The charges against the former hotel manager arose after one of his coworkers grew suspicious of his lavish lifestyle. The suspect allegedly used the ill-gained funds to buy a home, fly with private jets and shop for luxury items. When asked about his expensive lifestyle by his coworker, the suspect claimed he worked for wealthy clients as a private chef.

Yet, suspicion continued to grow until the suspect’s coworker did an audit, uncovering that B.R.J. processed a staggering 309 refunds for hotel accommodation to a single credit card – his own. The coworker immediately notified the management which resulted in an investigation by the police as well. Overall, B.R.J. allegedly completed fraudulent transactions for a year, between July 2022 and July 2023.

After the start of the investigation near the end of July this year, the suspect abruptly quit his job by only sending a text message. Then, on August 31, 2023, Metro police were contacted by Las Vegas Defense Group, a law firm representing the former hotel operations manager. Consequently, he surrendered to the police on September 1, 2023.

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