The Pennsylvania Supreme Court is ready to make a big decision about whether electronic gaming terminals, commonly found in bars and convenience stores, should be considered illegal gambling machines. 

Pennsylvania Lottery and Casino Industry Blames Skill Games for Revenue Losses

The decision comes after an appeal by the attorney general’s office challenged a lower court ruling that said these “skill games” depend on a player’s ability rather than chance — making them different from traditional slot machines.

For years, the state has argued that these games operate illegally without a gambling license and can be seized by law enforcement. Manufacturers, distributors and operators of the games say they are legal under state law and do not fall under the definition of regulated gambling. This ruling could provide clarity on how those machines should be treated under the law for the first time, said Jeffrey Rosenthal, an attorney representing Parx Casino in Philadelphia, reported the Associated Press.

Courts and lawmakers have wrestled with their status or years. Texas, Virginia and Kentucky have had similar fights over them. 

The Pennsylvania Lottery and the state’s casino industry blame skill games for major revenue losses. Casinos pay out roughly 54% of slot machine revenues in taxes to the state government. Operators say skill games compete against slots tax-free. There are at least 67,000 such terminals in Pennsylvania — more than any other state, according to American Gaming Association estimates.

Pennsylvania Supreme Court to Decide Fate of Skill Games

Attorney General Michelle Henry’s office emphasized in its brief to the court that these devices are all over the place and need clear legal guidance. The justices will study whether these electronic devices with supposed “skill” components are gambling devices by definition under the law. 

Commonwealth Court Judge Lori Dumas noted previously that though they start off looking like slot machines, they include a memory game element that makes them different.

The case started off in Dauphin County in 2019 when state police confiscated Pennsylvania Skill-branded machines from Champions Sports Bar in Highspire.

No criminal charges were filed, but the bar was given an administrative citation. Champions and Capital Vending Company, which owns the machines, sued for their return and won in county court, a decision later upheld by the Commonwealth Court.Pending legislation would ban or regulate these terminals — with the industry pushing for regulation to prevent seizures of its machines.

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Despite the extensive efforts of casinos in terms of security, incidents do take place in such establishments from time to time. Generally speaking, weapons of any sort are not permitted on the gaming floors and to ensure the well-being of their guests, casinos constantly monitor this through CCTV surveillance, live security and use of metal detectors. However, unprovoked and unexpected attacks are difficult to counter or prevent, which is the case for a Washington State casino that became a scene of a violent stabbing.

The criminal case involved a 31-year-old man with the initials R.F., who was arrested after allegedly stabbing one visitor of the Muckleshoot Casino and Resort. The violent act dates back to the late hours of Saturday and early morning on Sunday. At around 10 PM on Saturday, the suspect arrived at the casino and according to a report by KOMO, he was after killing “an associate.” The 31-year-old entered the casino and searched the gaming floor but after he couldn’t find the person he was looking for, decided to kill someone else instead.

Unfortunately, this was the case for one visitor who fell victim to the attacker. A 29-year-old man with the initials B.L., who was gambling at a craps table, was approached by the suspect from behind. Then, the 31-year-old allegedly took out a box cutter and violently stabbed the victim, slashing his neck. Sadly, the 29-year-old victim, who did not know the attacker, nor expected to be attacked, passed away on the casino floor from the fatal wounds.

After the stabbing, which occurred around 1:30 AM on Sunday, the suspect was detained by casino security. A box cutter knife was collected as evidence from the crime scene by police. So far it is unclear how the suspect was able to bring in the murder weapon.

Suspect Held on a $5 Million Bond

During the suspect’s first court appearance on Monday, prosecutors told the judge that the attack was random and violent. Referring to the vicious stabbing, a prosecutor said: “It occurred in front of a large group of people.”

Considering the unprovoked attack, Judge Jill Klinge concluded that there is probable cause for charges against the 31-year-old suspect. The Judge set a whopping $5 million bond for the suspect of the violent attack, while he also may face charges for first-degree murder.

Currently, murder in the first degree is the most serious type of homicide in Washington State. Such crimes are identified as intentional, and individuals convicted of murder in the first degree are subject to a sentence of life imprisonment.

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In a groundbreaking legal battle, the State of Texas faces off against gambling machines in a case that could set a precedent for the future of such devices in the jurisdiction. The hearing, presided over by the 336th District Judge in Fannin County, marks the first time a Texas court is deciding the legality of these devices.

Skill Games Remain a Contentious Topic in Many Jurisdictions

Texas law explicitly forbids chance-based gambling machines. However, skill-based games circumvent existing restrictions and remain permitted despite their similarities. The legal scrutiny follows a county-wide seizure of gambling machines in March last year, impacting several locations. Fannin County District Attorney Richard Glaser and local law enforcement initiated the seizure, contending that the machines violated Texas gambling regulations.

A recent report by media outlet KXII revealed that the central question in this hearing was whether the 35 confiscated machines were skill-based or chance-based. Glaser firmly believes these machines operate on chance, making them illegal. If successful, the state plans to seize the machines and their proceeds. Such a move could also lead to more seizures, making business owners reluctant to invest in these devices.

These look like gambling machines, they play like gambling machines. We wanted to seize them all at one time.

Richard Glaser, Fannin County District Attorney

This ongoing legal battle mirrors a similar case in Pennsylvania, where a recent court decision deemed that skill games were legal. The decision caused significant backlash from the gambling sector, which claims that these devices, exempt from gaming taxes and oversight, threatened regulated operators and posed a danger to the public due to non-existent player protection measures.

The Machines Circumvent Existing Laws

While Pace-O-Matic, the company behind the devices, asserts that its games have been deemed legal in other parts of Texas, this hearing is the first instance of a court making a definitive decision. Joe Brown, a member of Pace-O-Matic’s counsel, argues that the games were meticulously designed to comply with Texas law and are, in fact, skill-based.

The skillful player can win every time that they play, and that takes it out of the definition of a gambling device.

Joe Brown, counsel for Pace-O-Matic

As the debate neared its conclusion, Fannin County District Judge Laurine Blake ruled that the game devices were skill-based and legal. She will be issuing an order for the return of seized property. This landmark decision could potentially impact similar machines across the state, setting a crucial precedent for the future of gambling devices in Texas.

Although the hearing has not concluded, the ruling signals a likely victory for skill games. Similar cases across the USA highlight the need for proper regulation. Treating them similarly to slot machines would solve most issues, bringing them out of the legal grey area and ensuring jurisdictions can collect taxes and enforce proper control.

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Over the last few months, mobile sports betting operators in New York have reported exceptional results. The betting handle reported by the operators in October hit a $2 billion record, making the state the first one to surpass such a sum in wagers. Continuing this upward trend, November marked the second month in a row with a betting handle above $2 billion.

New York’s mobile sports betting market isn’t slowing down, considering the latest results released by the gambling regulator in the state, the New York State Gaming Commission. Wrapping up a successful year, betting operators posted $2.04 billion in betting handle for December 2023.

This result came close to the all-time record set in November when the betting handle hit $2.11 billion. While the betting handle didn’t surpass the result from November, a significant increase was observed in the mobile sports wagering gross gaming revenue (GGR). Last month, betting operators posted $188.3 million in GGR, a new record result that marked a $37.4 million increase when compared to the $150.9 million in GGR posted in November.

Year-over-year comparison of the results in December also shows significant growth. For December 2022, mobile betting operators posted $1.62 billion in betting handle. When compared to the $2.04 billion in betting handle posted last month, an increase of nearly 26% is observed. It’s not a surprise that the mobile sports betting GGR last month also marked a year-over-year increase by growing nearly 33% when compared to the same month in 2022.

FanDuel and DraftKings Maintain Their Leadership in New York

A breakdown of the $188.3 million in GGR shows that the operators’ share was $92.3 million, making another all-time high result. Similarly, New York’s net revenue to education also set an all-time high record hitting $96 million. This result marked a significant increase year-over-year when compared to the $72.3 million net revenue to education posted for December 2022.

It’s no surprise that market leaders FanDuel and DraftKings posted the highest betting handle and mobile betting GGR last month.

In December, FanDuel’s betting handle hit $834.5 million, the highest out of all operators for the month. Considering the betting handle, FanDuel posted $93.6 million in sports wagering GGR, a result which translates to $45.8 million in net revenue for the platform provider and $47.7 million in net revenue to education.

Following closely, DraftKings had the second-highest betting handle, posting $773.4 million last month. In December, the operator saw $31.9 million in net revenue, while the revenue toward the state’s education was $33.2 million.

Arriving third was Caesars Sportsbook, followed by BetMGM. Overall, the mobile betting handle reported by Caesars last month was nearly $202 million, resulting in a GGR of $15.9 million. On the other hand, BetMGM also enjoyed a strong month with its $126.5 million in wagers which brought $8.1 million in betting GGR.

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On November 24, the gambling giant Entain announced that it has reached a deferred prosecution agreement (DPA) with the Crown Prosecution Service (CPS). The agreement was also approved by Dame Victoria Sharp, president of the King’s Bench Division. The gambling company will proceed to seek final judicial approval from the Court on December 5.

The agreement in question relates to HMRC’s investigation into the company’s former business activity in Turkey. While Entain sold its Turkish assets in 2017, the bribery-related offenses of its legacy business continue to haunt the company.

Under the DPA, Entain agreed to pay a financial payment of £585 million ($737.5 million), to make a charitable donation of £20 million ($25 million) and to pay a £10 million ($12.5 million) contribution that covers the HMRC and the CPS’s costs. As per the terms of the deal, the gambling company will pay this money in installments over four years after the DPA secures approval from the Court.

The current settlement will add to Entain’s woes as the company struggles with investor distrust and shareholder disapproval.

Entain Is Committed to Following the Rules

Entrain highlighted its cooperativeness with the HMRC and the CPS and expressed its desire to continue working with the authorities in the future.

Barry Gibson, the company’s chairman, commented on the DPA, explaining:

This legacy matter concerns a business which was sold by a former management team six years ago. The Group has changed immeasurably since these events took place, and the DPA process has provided a reminder of the stark differences between the GVC of yesterday and the Entain of today.

Barry Gibson, chair, Entain

Gibson added that his team is planning to only operate in regulated markets and remain a trusted business. Now a best-in-class responsible operator with high levels of corporate governance, Entain hopes to never repeat its past mistakes.

Entain added that it will release a further announcement after the hearing on December 5.

Earlier this month, Entain’s leadership increased its stake in the company. This move aimed to demonstrate the higher-ups’ trust in the company’s financial position despite the recent setbacks.

A few weeks ago, Entain published its Q3 results, highlighting a net gaming revenue increase of 7%.

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The Miami Heat NBA franchise will have to go without Tyler Herro after the guard injured his ankle. He should be able to return to competing fairly quickly, experts believe.

The accident happened during the first quarter of last week’s game against the Memphis Grizzlies. In the first quarter of the game, Herro attempted a floater but landed on Grizzlies center Jaren Jackson’s foot.

As a result, Herro’s ankle got sprained. In an interview, the player admitted that he heard some crunches once he landed on Jackson’s foot and immediately knew he had sustained an injury.

Experts diagnosed the player with a grade 2 ankle sprain. His condition will be evaluated in two weeks to see if he can return to competing. This means that he will be absent from Miami Heat’s games for at least two weeks.

Whether the Heat will be able to maintain their momentum without Herro is yet to be seen. The team is pushing hard to win the championship and is currently on a five-game winning streak.

The Player Has Been Through This Before

The current incident isn’t the only time Herro has sustained an injury. Previously, the guard broke his shooting hand, causing him to skip many games.

Despite the injury, he continued to play for a while but eventually quit the field at halftime. Experts later confirmed the fracture, causing the player to miss out on a few weeks of action and appear at the NBA Finals.

Reminiscing about the accident, the Heat guard said that he has been through this “injury stuff” already. He said that this was very unfortunate but promised to continue to keep working.

In the meantime, Herro’s responsibilities will be handed to Jimmy Butler and Bam Adebayo. The Heat’s head coach, Erik Spoelstra, believes that both players are well-prepared and will be able to meet expectations.

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ESPN BET, one of the most highly-anticipated online sports betting platforms in the United States, finally has an official launch date. As announced by ESPN, the new online sportsbook is set to debut on November 14.

ESPN BET is set to launch in a total of 17 states, including Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, New Jersey, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia. The launch in Massachusetts recently faced a challenge as the local regulator required more information from PENN Entertainment.

In addition to revealing the official launch date, ESPN also announced that it is now using official odds provided by ESPN BET across editorial and other content.

ESPN BET is a joint venture of the experienced gambling operator PENN Entertainment and the Walt Disney Corporation-owned media channel ESPN. As a result, the launch of ESPN BET signifies Disney’s foray into the world of sports wagering.

ESPN Has a Lot in Store

ESPN also unveiled a new advertising campaign featuring SportsCenter anchor Scott Van Pelt who will showcase the cohesiveness of the ESPN and ESPN BET apps by receiving notifications from the two apps. The ESPN BET Creative campaign will launch around the sportsbook’s launch and will also feature SportsCenter anchor Elle Duncan.

 In the meantime, the beloved ESPN Daily Wager program will be known as ESPN BET Live from November 10 onward. ESPN noted that the show’s final episode as Daily Wager is set to air on November 6.

ESPN also announced that fans will be able to enter into a sweepstakes ahead of the launch of the new sports betting platform. Participants in the sweepstakes can win an exclusive trip to ESPN’s headquarters in Bristol, Connecticut.

PENN Entertainment’s president & CEO, Jay Snowden, commented on the launch of ESPN BET in his company’s Q3 report. He teased that the ESPN BET product will include a “wide array of popular betting options,” including featured bets, quick bets (micro-markets), player props and same game parlays, among others.

Looking ahead, we will be introducing even deeper platform and media integrations with ESPN over the upcoming months, providing an unmatched and seamless media/betting experience that will appeal to sports fans across the country.

Jay Snowden, president & CEO, PENN Entertainment

ESPN BET’s logo was revealed a few days ago, further ramping up the hype for the launch of the sportsbook. However, the similarities with BroThrow’s logo also attracted criticism.  

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WarHorse Gaming, a division of the Winnebago Tribe’s economic development arm, Ho-Chunk, Inc., is developing two brick-and-mortar casino resorts in the state- WarHorse Casino Lincoln at the Lincoln Race Course and WarHorse Casino Omaha at Horsemen’s Park. These developments will be a game-changer for local economies, and they come at a time when sports betting has also taken root in the state.

High-Profile Venues Will Redefine Nebraska’s Hospitality Sector

The WarHorse Casino projects in Lincoln and Omaha signify a vital step forward for Nebraska’s economy. The state’s decision to allow Las Vegas-style casinos to operate at licensed horse racetracks can allow such venues to become catalysts for economic growth in their respective regions. WarHorse’s two projects aim to open next year, redefining Nebraska’s hospitality industry.

Both developments will feature ongoing expansions, eventually including on-site hotels with approximately 200 guestrooms, further enhancing their appeal as entertainment destinations. The operator’s safe gambling efforts have been instrumental in maintaining a safe and secure environment, bolstering customer confidence, and fostering an enduring reputation for quality and social responsibility.

WarHorse Casino Omaha opened a temporary gaming space in September 2022, featuring over 400 slot machines and pari-mutuel simulcast wagering. This gaming venue, set up within the infield at Horsemen’s Park, marked the beginning of the operator’s operations in Omaha. Subsequently, WarHorse Gaming applied to expand its offering by introducing sports betting at this location.

WarHorse Will Also Capitalize on the Launch of Sports Betting

The recent approval by the Nebraska Racing and Gaming Commission allowed WarHorse to offer sports wagering at select venues after 1 November. The company has partnered with Kambi for its sports betting operations, leveraging the supplier’s substantial experience in the tribal gaming industry. This collaboration reflects the WarHorse’s commitment to providing patrons with a high-quality sports wagering experience.

The launch of sports betting in Omaha holds particular significance as it coincides with the height of the football season. The NFL and the NCAA traditionally dwarf all other sports during this period, and sports fans will finally have the chance to support their favorite teams. Legalizing sports betting should also eliminate the need for cross-state trips to Iowa, bolstering the local economy.

WarHorse Casino has expertly timed its entry into Nebraska to capitalize on its expanded gaming options. The recent regulatory developments and high-profile launches should stimulate local economies, provide a source of entertainment, and enhance the state’s gaming landscape. WarHorse Gaming’s commitment to delivering a superior gaming and sports betting experience aims to transform Nebraska’s gaming industry and aid sustained growth.

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The European Gaming Congress, an eagerly anticipated event in the iGaming industry, is set to make a big comeback after a three-year hiatus. This year’s edition will take place in Warsaw, the Polish capital, on October 30-31, 2023.

The organizers say that they anticipate the event “to be the industry’s most significant gathering”. The congress will bring together regulators, compliance experts, and top professionals from the gaming industry. The participants will be mainly from Europe but not only, professionals from other continents will also take part.

The European Gaming Congress has a solid history after having taken place for eight years. This time the panel discussions will be led by top players from the gaming industry, or, as the organizers put it, “some of the most influential figures.”

Compliance updates will be a big topic of discussion at the European Gaming Congress. Compliance experts and industry leaders will debate the latest changes in regulations that have taken place in Poland, Italy, Spain, France, Netherlands, Greece, and the Scandinavian countries.

The event will also present a great networking opportunity for industry professionals, there should be quite a few new partnerships emerging following the meetings that will take place at the Warsaw congress. Moreover, with participants from various sectors, the event will be able to put together the gaming industry with blockchain, fintech and artificial intelligence experts.

The panel discussions will be a good chance for participants to find out the latest regulations and market trends. Moreover, the event will also benefit from the participation of C-level executives and government officials, people that have the latest information regarding the industry’s future.

Securing the Future

One of the most important panel discussions at the European Gaming Congress will be the one dedicated to cybersecurity, responsible gaming, artificial intelligence, and anti-money laundering in the gaming industry.

This panel discussion is expected to be “a comprehensive guide to a sustainable future of the iGaming industry.” The panel discussion will be moderated by Zoltán Tűndik, Co-Founder at HIPTHER, and it underlines the importance of a unified approach to creating a secure and ethical gaming world in a sustainable way.

Cybersecurity, one of the key aspects in this panel discussion, is regarded as “the backbone of the industry, while responsible gaming practices are very important to fostering a culture of healthy gaming.

Artificial Intelligence is becoming more and more important in the industry, while AML (Anti-Money Laundering) is also a key component of the online gambling world as it ensures the legitimacy of financial transactions.

Source: “A Unified Approach to the Future: European Gaming Congress Panel Explores Cybersecurity, Responsible Gaming, AI, and AML in the Gaming Industry“. European Gaming. October 17, 2023.

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Swedish state-owned gambling company Svenska Spel announced that it will be parting ways with Patrik Hofbauer, who is set to explore new opportunities. Hofbauer, currently serving as the operator’s president and chief executive, believes that the gambling company is in a good position to continue without him.

The outgoing CEO joined Svenska Spel back in December 2018. He will officially depart from his position on January 31, 2024, to sit at the helm of Telia Company, a Swedish telecommunications juggernaut.

Svenska Spel noted that it’s already on the lookout for a suitable successor.

As CEO of Telia, Hofbauer will depart from the gambling sector he has served for five years. Prior to joining the state-owned operator, the outgoing CEO served as the CEO of the Norwegian majority state-owned multinational telecommunications company Telenor.

Before that, Hofbauer had stints as CEO of Telenor Broadcast and CEO of Clear Channel. An experienced individual, Hofbauer is also a member of several companies’ boards of directors. This lineup includes Clas Ohlson, NHST Media Group, Svenskt Näringsliv and Presto Holding.

The Decision to Leave Svenska Spel Was Difficult

Hofbauer commented on his new position, sharing that his time with Svenska Spel has been a “fantastic journey.” He said that the decision to depart did not come easily.

While melancholic about his departure, Hofbouer believes that Svenska Spel is in good hands and poised for further success. He praised the company’s robust corporate culture and values, saying that the operator will continue to deliver results.

Erik Strand, Svenska Spel’s chairman, also commented on the matter, praising Hofbouer for his hard work as CEO and the multiple changes he delivered. Thanks to the outgoing executive, the company now sports a modernized approach and a commitment to sustainable practices.

Strand also thanked Hofbouer for navigating the company through the reregulation of the Swedish gaming market in 2019 and setting a clear agenda for the company. The chair concluded that Hofbouer truly made a difference.

Svenska Spel is set to report its Q3 earnings later this month.

Hofbauer Is Excited about His New Position

Hofbauer also released a statement on his new position at Telia Company. He said that he is honored to have been appointed as the telecommunications giant’s next president and CEO and is looking forward to further developing the company.

While I have most recently been working outside telecoms, I have followed recent industry developments with great interest, and I am ready to continue executing on Telia’s strategy and move forward with its digital transformation program.

Patrik Hofbauer

Hofbauer will officially step into the office on February 1, 2024.

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