Bally’s is trying to increase the gambling credit limit at its two properties in Rhode Island from $50,000 to $100,000 in order to stay competitive and attract high-stakes players. Not surprisingly, this move has sparked concerns despite the fact that Bally’s has secured the support of Senate President Dominick Ruggerio.

Bally’s Representative Tackles Concerns Over Rhode Island Casino Credit Proposal

Bally’s representative, Elizabeth Suever, addressed concerns during a Senate Committee on Special Legislation meeting. Suever noted that the proposal’s goal is to cater only to gamblers capable of repayment, reported The Providence Journal. 

Notably, casinos in Connecticut and Massachusetts are operating without such credit limits so the proposal is trying to level casino offerings in Rhode Island with the neighboring competition. The state of Rhode Island is quite dependent on gambling tax revenue, which amounts to $428.8 million annually.

However, opponents have expressed their confusion about the proposal being introduced at the end of the legislative session and the urgency surrounding it.  A spokesperson for Ruggerio confirmed that the legislation was crafted upon Bally’s request to counter competition from Massachusetts casinos.

Nonetheless, there is one stipulation in the proposal that has raised lawmakers’ eyebrows. The bill is going to affect the state’s Department of Business Regulation‘s authority to change Bally’s operating agreement without legislative approval. 

Rhode Island Proposal Aims to Attract High-Rollers

The proposal proponents argue that the bill will affect only a small group of high-rollers. It is going to reduce the need for large cash transactions for such players and, thus, make Bally’s casinos more attractive to them. 

Answering concerns about financial oversight and potentially higher gambling debt, the bill’s supporters note that players are going to be subject to rigorous scrutiny such as credit checks, identification verification, and tracking of their gaming history across local casinos. 

However, there is no detailed information available regarding the current number of players with $50,000 credit limits.

Additionally, the proposed legislation is going to change various aspects of Rhode Island’s lottery and casino operations. For example, Bally’s debt ratio shall have to be revised and the method for calculating promotional points shall also be changed.

This, in turn, will impact the state’s revenue share. The main challenge ahead of legislators will be to strike a balance between responsible gaming and keeping the competitive edge of Rhode Island casinos against neighboring states. The fate of the proposal will have implications for economic revenue and consumer behavior in the gambling sector.

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Iowa is one of the US states that currently offers not only legal sports betting but casino gambling as well. The state currently offers legal retail and online betting on sports, as well as casino gambling via 19 brick-and-mortar casinos. The tax rate applicable for sports betting is set at 6.75% on sports betting revenue, while casinos that generate a minimum of $3 million in gross revenue pay a 22% tax rate on their gross gambling revenues.

Amid the growing competition from casinos in nearby states, lawmakers in Iowa are exploring options for the gradual reduction of the tax rate applicable for land-based casinos. One such effort is led by Rep. Jane Bloomingdale, who filed House Study Bill 719 earlier this month. The proposal, calls for a slight decrease in the rate applicable for casino operators.

Under House Study Bill 719, the 22% tax rate for land-based casinos will decrease by a percentage per fiscal year. This process, under the proposed bill, will continue through the fiscal 2027 year, when the tax rate for retail casinos will be reduced to 19% on gross gaming revenues. The aforementioned proposal comes at a time when the state Governor anticipates tax cuts on the income of Iowa residents.

Ultimately, the slight reduction in the taxes for casinos seeks to make them more competitive amid the growing competition from nearby states. For example, nearby casinos in Illinois and Nebraska may gain an advantage against Iowa and attract visitors considering their lower tax rate.

Casinos Provide Vital Economic Stimulus for Local Communities

Bloomingdale, who was recently quoted by Iowa Capital Dispatch, revealed that casinos across Iowa have helped local communities. This economic stimulus, she said, helped by providing vital resources. “Every fire department has a new fire truck, every church has a new roof, every cemetery has tombstones that have been fixed, on a paved road. So I look at the things that they’ve (casinos) done in our communities that, you know, if they have 1% more income, that money would go directly into our communities,” added Bloomingdale.

Additionally, she spoke about the importance of tax cuts, acknowledging that lawmakers are considering lower taxes for corporations and individuals but not casinos. “It just doesn’t seem fair,” Bloomingdale added, pointing out that if Iowa considers lowering taxes the state should “look at everyone.”

Bloomingdale’s proposal gained traction by securing approval from a House Ways and Means subcommittee on Monday.

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During the pandemic a few years ago, casinos across the United States temporarily banned smoking indoors. While in some venues, this policy lasted as long as the pandemic did, others saw an opportunity to eliminate indoor smoking, leaving the ban permanently. For years, the sector warned about decreases in visitation and gaming revenues as a result of the implementation of an indoor smoking ban. Yet, more media reports and data disclosed by casinos hint that those fears may be unfound.

Currently, close to a dozen US states allow smoking inside casinos. Kansas is one of those states, where efforts against the elimination of smoking on the casino floors continue. Earlier this week, a new proposal was introduced, calling for closing the existing loophole that permits smoking inside casinos across the state. Details regarding the proposal, House Bill 2622 (HB 2622), were released earlier this week.

Sponsors of the bill include Reps. Owen Donohoe, David Buehler, Sydney Carlin, Ford Carr, and Dennis Highberger. On Tuesday, HB2622 was introduced and referred to the House’s Committee on Health and Human Services. The next move for the proposal is a hearing scheduled for next week Wednesday, February 7, 2024.

Anti-smoking Group Supports the New Proposal

The latest effort of lawmakers in the state was met with approval from the group of casino workers fighting against smoking inside casino establishments, Casino Employees Against Smoking Effects (CEASE) Kansas. Joe Hafley, CEASE Kansas’ founder and security employee at Hollywood Casino at Kansas Speedway, who was cited by KCTV, highlighted the long-term efforts of casino workers to eliminate indoor smoking.

“For too long, casino workers like myself have had to endure the hazardous conditions of secondhand smoke, all in the name of a paycheck.“

Joe Hafley, founder of CEASE Kansas

Explaining that he participated in this fight, he said it was devastating to see how people are forced to accept hazardous conditions such as secondhand smoke in exchange for a paycheck. “It’s not just about the cards, slots and profits; this bill is a beacon of hope for the hardworking people in our industry, signaling that our health and well-being matter,” added Hafley. Finally, he explained that casino employees should not have to make a choice between their paycheck and their well-being.

Elsewhere, in another US state where smoking inside casinos is permitted, New Jersey, a smoking ban is getting closer to becoming a reality. A proposal that calls to eliminate smoking inside casinos is making its way forward after securing approval from the New Jersey Senate Health Committee. Yet, nothing is certain for the moment as the bill still has a long way to go.

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In a move to address the escalating property tax concerns of older constituents, Utah Representative Kera Birkeland is championing a proposed constitutional amendment that would legalize the state’s first-ever lottery. 

Rep. Birkeland’s Lottery Proposal Could Boost Utah’s Finances by $200M

Rep. Birkeland contends that legalizing the lottery could inject up to $200 million into Utah’s coffers, money currently flowing across state lines as residents travel to neighboring states like Idaho, Wyoming, and Arizona to purchase lottery tickets. The proposal aims to redirect these funds to alleviate the financial strain on seniors facing rising property taxes, reported KSL.

The lawmaker’s initiative sparks a broader conversation about the intersection of gambling practices, fiscal policies, and the unique challenges posed by Utah’s comprehensive ban on all forms of gambling. Utah and Hawaii are the only states where any game of chance is strictly prohibited.

Birkeland argues that the prohibition on gambling has deprived the state of a significant revenue stream. She emphasizes the real-world impact on seniors, sharing stories of constituents forced to sell their homes due to soaring property tax bills.

While the full details of the bill are yet to be unveiled, Birkeland is considering including a stipulation that mandates tax revenue from lottery sales be dedicated to offsetting the tax burden on older adults with fixed incomes. 

The proposal faces a significant hurdle, as a constitutional amendment requires the support of two-thirds of lawmakers in both chambers and approval by a majority of voters in the upcoming general election.

Gov. Cox Challenges Lotteries, Deems Them Harmful

Gov. Spencer Cox, despite not possessing the authority to veto constitutional amendments, conveyed his opposition in a recent news conference, asserting that he believes lotteries and gambling, in general, function as taxes on individuals who struggle with mathematics, causing more harm than good.

Despite the challenges and opposition, Birkeland is determined to push the bill forward, emphasizing the need to address the primary concern of her constituents regarding property taxes. 

Birkeland recognizes the challenging nature of the endeavor but maintains her determination, asserting that she has introduced several bills attempting to limit property taxes and decrease government spending, yet none of them has gained traction.

The proposal reignites the ongoing debate on gambling laws in Utah, with past endeavors facing significant resistance. Birkeland’s initiative signals a potential shift in the state’s stance on gambling, setting the stage for a contentious legislative session.

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In a move aimed at revitalizing Ohio’s sports betting industry, State Senator Niraj Antani, a Miamisburg Republican eyeing a congressional run, has recently introduced legislation to significantly reduce the state tax imposed on sports betting operators. 

Senator Antani’s Bill 190 Ignites Controversy Over Ohio’s Sports Betting Revenue

The original tax rate on sports betting operators in Ohio was 10% when the state’s sports betting program kicked off on January 1 of this year. However, during the summer, lawmakers opted to double the tax rate through the state budget, a decision now being challenged by Senator Antani’s proposed legislation, reported Cleveland.com.

Gov. Mike DeWine, a Republican, had advocated for the tax hike, expressing concerns over what he deemed as excessive advertising by operators. He highlighted instances of regulatory fines levied against major players such as DraftKings and Barstool Sportsbook for violations, including mailing advertisements to individuals below the legal betting age and hosting events that ran afoul of advertising rules.

Since the introduction of the increased tax, Ohioans have wagered an impressive $5.2 billion on sports, with $4.5 billion returned as winnings. The tax hike has also prompted a cultural shift, with professional and collegiate leagues, as well as sports media, increasingly embracing legal sports betting.

Critics Sound Alarm as Ohio Weighs Impact of Senate Bill 190

The financial implications of Senate Bill 190 remain uncertain, with the Legislative Service Commission yet to provide a revenue estimate. However, the proposed tax cut raises questions about potential impacts on the state’s revenue, as Ohio has already collected nearly $102 million in tax revenue from sportsbooks between January and October.

Senator Antani criticized the decision to raise the sports betting tax through the budget, arguing that it negatively influences the emerging market. He contended that the increased tax not only affects sportsbooks but also trickles down to bettors through less favorable odds and fewer promotional offers.

Antani, however, was not the only critic. Other proponents argued that the higher tax may deter operators, making Ohio less attractive to the sports betting industry. Critics, including former Ohio Rep. Dann Dodd and Americans for Tax Reform, warned that the measure could drive existing brands out of the market, potentially leading to significant economic consequences for Ohio. 

As of March 2023, 29 states in the US have legalized sports betting, with tax rates generally falling between 10% and 15%. However, there is considerable variation, ranging from a low of 6.75% in Iowa to a high of 51% in Rhode Island, highlighting the ongoing debate over the optimal tax rate to balance industry growth and government revenue.

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Vietnam’s Ministry of Planning and Investment has put forth an ambitious plan for a $2.2 billion integrated resort and casino in the Van Don Special Economic Zone, nestled in the Quang Ninh Province. 

Vietnam’s Mega Casino Resort Project Nears Approval

The project, set to be completed by the third quarter of 2032 if approved, is a collaboration between the ministry and the Quang Ninh People’s Committee, reported eTurbo News. This initiative, first mentioned by the provincial authority in late 2018, is part of a broader strategy to establish coastal resorts with casino operations. Under the guidelines of Vietnam’s Ministry of Finance, only projects with an investment capital equal to or exceeding $2 billion will be granted a gaming license.

The proposed complex aims to be one of the two casinos in Vietnam permitted to cater to local citizens, a policy established in 2016. The bid for government approval includes plans to initiate the bidding process by the end of 2023, as disclosed by the Quang Ninh People’s Committee in July.

Vietnam’s Ministry of Planning and Investment is optimistic about the potential impact of the project. If given the green light, the resort is expected to generate an average annual after-tax profit of VND8.16 trillion ($336 million), with a break-even point anticipated after 32.8 years of operation. Over the span of 70 years, it is estimated to contribute VND228,000 billion ($9.4 million) to the state budget and provide employment opportunities for approximately 6,000 individuals.

Money Laundering Concerns Hover Over Vietnam’s Casino Project

The proposal, however, comes amidst concerns raised by international officials regarding Vietnam’s ability to address money laundering risks in the casino industry. Although Vietnam implemented an anti-money laundering law in March 2023, the United Nations Office on Drugs and Crime has expressed reservations, stating that the regulatory and enforcement mechanisms in place may not be robust enough to handle the evolving landscape of transnational organized crime.

Despite international alarms, the Ministry of Planning and Investment remains steadfast in its pursuit, emphasizing the socio-economic benefits the integrated resort and casino complex could bring to the region. If Prime Minister Pham Minh Chinh gives the go-ahead, construction could commence as early as next year, with the resort anticipated to be ready for guests by 2032.

In other news, in July Hong Kong’s Cheng family officially assumed control of Vietnam’s Hoiana casino resort, previously managed by the Suncity Group led by jailed Macau tycoon Alvin Chau. The $4 billion joint project with LET Group and VinaCapital includes a casino, golf course, and Cheng-branded hotels. 

The management shift aligns with Macau junket operators exploring Southeast Asia due to stricter regulations at home. Vietnam’s relaxed regulations and rebounding tourism make it an attractive destination. 

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Missouri is one of a handful of US states that are yet to legalize sports betting. Legislators in the state have previously shown support for the legalization of the activity, but efforts haven’t gained much traction. While previously, the House showed support for the legalization of wagering on sports, efforts halted in the Senate over arguments about the growing illegal retail sector across the state.

While efforts of lawmakers have previously stalled, professional sports teams in the state joined forces in support of the legalization of sports betting. A coalition, supported by professional sports teams in Missouri leads the efforts in legalizing sports wagering. This coalition includes St. Louis City, a soccer club, St. Louis Blues, a hockey team, as well as St. Louis Cardinals, a baseball team, who are leading the charge for the legalization.

Currently, the coalition has proposed eight ballot questions that will seek a response from voters in the state. Ultimately, the proposal calls for the legalization of retail and mobile sports wagering and the implementation of a 10% betting tax. If the activity is legalized, some $29 million is expected to be raised for education. The proposed legalization calls for the development of a $5 million problem gambling fund.

Despite the coalition’s plan, a report released by the St. Louis Post-Dispatch suggests that not everyone agrees with the legalization of sports wagering. Citing research, the report outlined data from a Remington Research Group survey that uncovered some 54% of 711 likely voters would oppose the legalization of sports betting. With only 26% voting in favor, 20% admitted they were not sure whether to support it or not.

Betting Legalization Is Still Far from Becoming a Reality

Supporters of the legalization of sports betting in Missouri would now need to select one out of the eight questions to be placed on the ballot. Yet, to include the question, supporters need to collect signatures of at least 170,000 residents across the state.

“I would be thrilled if we could get legislative action because then we wouldn’t have to do it. I’m hopeful, but I’m also being realistic.“

Bill DeWitt III, president of The Cardinals

The Cardinals’ president, Bill DeWitt III, said that the coalition’s next step is to discuss the proposed legalization with members of the gambling sector. After that, he said, they would consult on how to collect the necessary signatures. While DeWitt said that he hopes to see lawmakers act on the legalization of sports betting, he explained that he looks at the matter realistically.

The efforts toward legalization of sports betting come at a time when most US states have already legalized some form of the activity. According to data from the American Gaming Association, 37 US states and Washington DC offer sports betting, while less than a dozen states are yet to legalize the activity.

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In line with the industrial trends for an active engagement in addressing the current social and environmental issues, the Malta Gaming Authority (MGA) has introduced the Environmental, Social and Governance (ESG) Code of Good Practice for the remote gaming sector.

Self-Regulation Instrument

The ESG Code represents an instrument to help remote gaming companies opt for the best social and environmental practices through a self-regulation process. Albeit voluntary, the ESG process is highly recommended for the sector as the proposed adoption of the ESG practices will demonstrate the commitment of MGA licensees to sustainable operations across all the remote gaming sector stakeholders.

During the press conference, MGA CEO Carl Brincat reportedly said:“The MGA has always strived to be at the forefront of regulatory innovation and progress. We have been working not only to supervise the gaming industry, but also to nurture it, to foster a space where operators can thrive, while ensuring that the welfare of society remains paramount. Our ESG Code represents our commitment to this.”

Minister for the Economy, EU Funds and Lands Silvio Schembri reportedly commented: “All businesses should embrace tools to reduce risk and transform successfully, and when it comes to remote gaming, one of the tools is using ESG metrics.’’

Minister added: “The ESG code will serve as an instrument for self-regulation, helping remote gaming companies align with best practices and maintain a position that allows them to effectively meet the evolving expectations of key stakeholders in the sector.”

ESG Code Features

The ESG Code production has been carried out in several stages including the peer review and research stage, stakeholder interviews, and consultation with licensees to ensure that the ESG Code comprehensively addresses social and environmental concerns of the industry stakeholders.

The Code includes three categories, Environmental, Social and Governance, to identify a total of 19 ESG topics and provide the effective guideline for remote gaming companies to secure effective reporting practice.

The MGA will classify these reports into Tier 1 and Tier 2 reports depending on the extent of reporting exercised by the companies. For this purpose, the ESG Code offers a flexible approach for companies to meet the basic standard requirements and choose optional disclosures of their respective social and environmental practices.

No specific targets have been set by the ESG reporting but rather focused on the reporting process itself. The companies submitting reports under this code will be awarded the MGA ESG Code Approval Seal acknowledging that companies demonstrate the commitment to ESG. The seal will differentiate Tier 1 and Tier 2 reports.

ESG Reporting Process

The Code will be submitted on a voluntary basis and will be separated from other ESG disclosures to the regulatory bodies. Submissions will be confidential and available via an MGA online platform. The ESG reporting schedule will follow the financial year reporting and is expected to launch in 2023, with the deadline for submission set for the third quarter of 2024.

Source: “MGA Publishes Voluntary ESG Code of Good Practice”. European Gaming. November 13, 2023.

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Colombia may soon introduce new regulations on gambling advertisement. Under a bill proposed by Coljuegos on September 29, the body will become the official regulator of licensed gambling ads and marketing campaigns.

In addition to establishing Coljuegos as the new marketing regulator for gambling ads, the proposal would also introduce new rules on what operators can and cannot do. The measure would provide the authority with more power, allowing it to regulate how gambling is advertised in the country.

The proposed rules also outline sanctions for violations and set a cap on how much companies can spend on advertising. Starting 2024, operators would be unable to spend more than 20% of their project GGR on advertising and marketing campaigns. Under Coljuegos’ proposal, operators will also be unable to spend more than $2.2 million on promotions in the first year.

If passed, the measure would provide Coljuegos with authority to require information about gambling companies’ expenses. This way, the body will be able to ensure that gambling companies are compliant with the new rules.

Coljuegos Wants to Protect Vulnerable Audiences from Harm

Furthermore, the new rules would require licensees to follow new safer gambling protocols and work harder to identify and prevent gambling harm. To that end, operators would be unable to advertise nearby learning establishments and health centers. Coljuegos also plans to prevent operators from advertising to younger audiences.

In line with its desire to protect the Colombian market, Coljuego would prohibit the usage of false or misleading advertisement that downplays the risks associated with gambling. In addition, the regulator would bar gambling companies from advertising their products and services to people who have excluded themselves from gambling.

Companies would also be unable to advertise products by featuring people who have benefited from gambling as to not create a false association that gambling is an easy way to get rich. Moreover, operators would be required clearly communicate the nature of products they advertise and transparently inform consumers of their games’ characteristics.

If approved, Coljuegos’ proposal would also introduce rules on payment that only allow deposits via pre-paid cards.

The fate of Coljuegos’ gabling ad resolution will be decided by the Congress.

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In a bold move to win approval for its proposed casino near the United Nations headquarters in Manhattan, the Soloviev Group has unveiled a groundbreaking plan that combines a state-of-the-art casino complex with a significant affordable housing initiative. 

Soloviev Group Adds Affordable Housing Units at Below-Market Rates

The developer, Stefan Soloviev, heir to the Solow real estate fortune, has announced a revamped proposal that includes more than 500 affordable housing units to be offered permanently below market-rate rents, catering to the city’s growing housing crisis, reported The New York Times.

The Soloviev Group’s innovative approach comes at a time when the competition for New York’s coveted casino licenses is fiercer than ever. The revised plan for the 6.7-acre site, now known as Freedom Plaza, no longer features the previously proposed Ferris wheel. Instead, the project comprises two elegant champagne-colored hotel towers offering a total of 1,200 rooms, a residential complex, a democracy museum, and a sprawling 4.7-acre green space open to the public.

What sets this proposal apart is its commitment to addressing New York City’s pressing housing needs. Of the 1,325 units planned, 513 would be designated for affordable housing programs, with renters qualifying if they make an average of 80% or less than the area’s median income. These units would be rented permanently below the market rates, providing much-needed relief to the city’s housing crisis.

Soloviev Group’s Casino Project Leverages Affordable Housing for Local Support

According to Michael Hershman, CEO of the Soloviev Group, the affordable housing component is directly tied to the casino project’s economic viability. He explained that the inclusion of a casino on the property enables the company to offer these affordable housing units in a prime midtown location. Without the casino, this offer would be rescinded.

This strategic move aims to win local support, which is pivotal in securing one of the three downstate gaming licenses New York state officials will issue next year. The Soloviev Group’s partnership with Mohegan, the gaming unit of the Mohegan Tribe in Connecticut, further emphasizes the project’s credibility and potential benefits to the community.

To further engage with the community, the Soloviev Group has commissioned a public art installation on the property. Renowned artist Bruno Munro will create a captivating display featuring over 17,000 low-light, fiber-optic stemmed spheres, framing a painted landscape against the backdrop of the city’s iconic skyline and the East River waterfront. The Soloviev Group’s proposal is one of several in a competitive bidding pool. Among the competitors is 92-year-old billionaire Larry Silverstein, who has also integrated affordable housing into his Midtown casino plan, emphasizing the social and economic benefits of such initiatives.

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