Assemblyman Gary Pretlow has long been a supporter of legalizing, expanding, and liberalizing the gambling industry in New York – a state often seen as a holdout by many gambling companies across the nation.

The Highest Bidder Is Still Not in the Room

Despite the slow momentum, plans for casino properties are gaining traction, too substantial to halt at this point. However, Assemblyman Pretlow feels a sense of urgency due to the lack of tangible progress, particularly regarding the delayed start of the bidding process.

In 2022, New York approved a decision to introduce three downstate casinos, with the casino bill sponsored by Assemblyman Pretlow and his colleague Senator Joseph Addabbo, another gambling advocate, signed into law by Gov. Kathy Hochul. Senator Addabbo also recently proposed to revise the rules for daily fantasy sports in New York.

Surprisingly, gambling is one of the few issues that do not divide along political lines, with parties largely in agreement. Assemblyman Pretlow stressed the issue with the delay of the bidding process in an opinion piece for the Yonkers Times, insisting on the need to expedite the arrival of downtown casinos to avoid costly delays.

“Black and Brown families are leaving the downstate region in droves because of limited career opportunities. School administrators struggle with meager budgets, and commuters face long commutes due to aging infrastructure,” he noted.

Assemblyman Pretlow aims for resolution and hopes for project rollouts as early as 2025. However, observers cite factors such as NIMBYism and bureaucratic red tape as potential causes for delays in downtown casino development.

New York Needs to Start “Flipping Cards”

The state cannot afford to wait, given its staggering $9.5 billion budget deficit. Awarding three licenses could alleviate some fiscal strain, generating $1.5 billion in revenue for the state, with each license priced at $500 million. However, the licensing fee might be subject to change, with New York possibly considering raising it to $1 billion a pop.

Assemblyman Pretlow believes this is feasible, but he emphasizes that the state must take action. Bureaucratic delays have hindered progress, postponing the bidding process for over a year.

According to Assemblyman Pretlow, New York’s upcoming casino projects could significantly impact the state’s deficit and create tens of thousands of construction and permanent jobs. However, for these benefits to materialize, the administration must prioritize and move forward.

Apart from turning to the public and the media, both Senator Addabbo and Assembly Pretlow have submitted a new proposal which they want approved, so that casino license bids must be submitted by July 31, 2024. The pair of lawmakers does not worry about companies missing the mark, as they believe that everyone interested is already prepared, but a bidding process must be commenced.

The post Gary Pretlow Urges to Quicken Pace of NY Gambling Expansion appeared first on Keno Wizard.

Peter-Paul de Goeij, director of the Netherlands Online Gambling Association (NOGA), is calling for a “rigorous” response from Kansspelautoriteit (KSA) after research revealed that illegal operators are allowing minors to gamble. The findings, shared by Keurmerk Responsible Affiliates (KVA) and Licensed Dutch Gaming Providers (VNLOK), highlight a significant issue within the Netherlands’ gambling industry.

Research Findings on Underage Gambling

The research conducted by KVA uncovered that minors in the Netherlands can easily gamble with offshore operators. The study showed that these operators do not require the necessary age verification, allowing anyone with an email address or telephone number to create an account. This lack of oversight enables those below the legal gambling age of 18 to deposit and gamble, often using cryptocurrency for anonymous transactions.

Further, the study found that illegal casinos use the logos of banks and legal operators to mislead minors into believing that their deposits are safe. This practice is particularly concerning as it exploits the trust and security associated with these financial institutions.

Previous Research and Industry Concerns

KVA’s recent findings build on previous research from 2023, which indicated that illegal sites were targeting players attempting to bypass Cruks, the Netherlands’ self-exclusion scheme. This ongoing issue highlights the need for stringent regulatory measures to protect vulnerable groups from the risks associated with illegal gambling.

De Goeij emphasized the heightened risks for underage gamblers, noting their increased susceptibility to addiction and related mental health and financial problems. He urged the KSA to take decisive action to address these issues and fulfill its mandate to protect consumers.

“The Kansspelautoriteit (KSA), the Dutch Gambling Authority, is expected to address these issues rigorously,” De Goeij told iGB. “The KSA is likely to enhance monitoring and enforcement actions against unlicensed operators, imposing hefty fines and blocking access to these websites. Educating the public, especially minors and their parents, about the risks of unlicensed gambling and how to avoid these sites can be an effective preventive measure.”

Recommendations for KSA Action

De Goeij advocates for increased collaboration between the KSA and other jurisdictions, sharing intelligence and best practices to combat illegal operators. He also suggests that the KSA should work closely with financial institutions to block illegal transactions and cut off revenue streams to offshore operators.

“The KSA should employ advanced technologies like geolocation blocking and AI-driven monitoring to detect and shut down access to offshore gambling platforms,” De Goeij added. “Working with internet service providers (ISPs) to block unlicensed gambling sites could significantly reduce access.”

Broader Issues in the Dutch Gambling Market

The timing of KVA’s research coincides with growing industry concerns over regulatory changes in the Netherlands. Recently, a coalition agreement proposed increasing the gambling tax from 30.5% to 37.8%, aiming to generate an additional €202m in tax revenue. NOGA has expressed concerns that such measures could push operators towards the black market, undermining the regulated market’s integrity.

Earlier this year, the house of representatives voted to ban “high-risk” gambling, including online slots, and to prohibit online gambling advertising. These regulatory changes, combined with higher taxes, could drive more players to unlicensed sites, where consumer protections are minimal.

De Goeij is particularly worried about the potential impact on the legal market, warning that higher taxes and advertising restrictions might reduce revenue for the Dutch government and legal operators. This shift could lead to increased fraud, addiction, and other harms associated with unregulated gambling.

NOGA’s Strategic Recommendations

To combat the potential rise of the black market, De Goeij recommends that the KSA and the government adopt evidence-based regulations that do not overly burden legal operators. He believes that encouraging innovation and improving customer experiences in the legal market can help retain and attract players.

“The KSA and the government should encourage innovation and better customer experiences in the legal market to retain and attract players,” De Goeij said. “They should also be continuously researching market trends and player behavior to adapt regulations and strategies dynamically. Only by taking a proactive and balanced approach, the Netherlands can protect its citizens while maintaining a robust and attractive legal gambling market.”

Source: “NOGA urges rigorous KSA response after research finds illegal operators accepting bets from minors”. iGaming Business, May 23, 2024.

The post NOGA Urges KSA to Act on Minors Gambling with Illegal Operators appeared first on Keno Wizard.

The shares of the leading provider of technology and services, powering betting and gaming operators, Bragg Gaming Group, increased Wednesday, after one of its largest shareholders sent a letter, supporting different business combinations, including partial or full sale of the company’s assets. The letter was sent by Jeremy Raper, the founder of Raper Capital, a company that is in charge of some 375,000 shares in Bragg and the second-largest disclosed investor in the company.

In his letter, sent to CEO Matevz Mazij, the expert spoke about Bragg’s acquisition of Oryx a few years ago, explaining that its current stock price is 25% lower when compared to that period. Raper acknowledged the company has seen “chronic underperformance,” regardless of its listing on NASDAQ dating back to 2021. Raper Capital’s founder explained in his letter to Bragg: “Suffice to say, the public markets have had plenty of opportunity to appraise our Company’s growth story, over time, and yet the record demonstrates that it will not, or cannot, accord even the lower bounds of what most shareholders would consider fair value.”

According to Raper, Bragg can ensure proper returns for the shareholders via a partial or full sale of company assets. He encouraged the company to pursue all possible strategic alternatives, including the aforementioned sale that can help maximize the value for all of its shareholders. Moreover, Raper said he believes that minority shareholders would agree that this would be the best course for Bragg.

“As such, it is evidently clear that a third-party sale of the business is the only way to crystallize a proper return for the underlying business value that you, and legacy management, have created.“

Jeremy Raper, founder of Raper Capital

Proposed Sale To “Unlock Latent Value” for Shareholders

Raper Capital’s founder compared the proposal to similar recent transactions within the iGaming vertical that have taken place over the last 24 months. He uncovered that on average, transactions similar to the proposed one were 19x EV/EBITDA, while a median multiple was approximately 15x EV/EBITDA.

Speaking about Bragg’s shares at the time of writing, Raper said that they trade barely at 5.5x EV/EBITDA. He said that even with a conservative 12x EV/EBITDA Bragg’s share would be worth $13.5 per share based on current year numbers or $18 per share on FY24E numbers.

Toward the end of his letter, Raper said that he plans to continue to be a long-term shareholder of Bragg. “By calling for a sale of the company now, I only seek to preserve, and finally unlock, that latent value for the benefit of all stakeholders,” he explained.

Earlier this month, Bragg confirmed that its current chief operating officer and president, Lara Falzon, gave resignation notice. At the time of the announcement, the company confirmed that she would step down from the two roles, effective from the end of the year.

The post Bragg’s Shares on the Rise after Investor Urges Assets Sale appeared first on Keno Wizard.

The UK Gambling Commission (UKGC) has sounded an alarm over the misuse of gambling statistics by stakeholders, calling for responsible data presentation to maintain debate integrity.

Amidst the evolving discussions on gambling regulations, the UKGC has expressed deep concerns about the manipulation of statistics to bolster arguments. This trend has been observed across the board, involving gambling operators, the media, and other parties, often accompanied by confusion between “problem gambling” and “gambling-related harm.”

A key concern centers on distorted problem gambling statistics. Claims like “99.7 percent of gamblers are unhurt” and “only 0.3 percent are harmed” are misleading. The 0.3 percent figure refers to the UKGC’s abbreviated Problem Gambling Severity Index (PGSI) screen, which has fluctuated between 0.2 and 0.6 percent of individuals aged 16 or older experiencing problem gambling.

The misconception stems from assuming this percentage pertains solely to gamblers, when it includes all adults in Great Britain. Health Survey for England 2021 data shows that among those aged 16 and over who gambled in the past year, 0.8 percent experienced problem gambling by PGSI or DSM-IV criteria.

Misleading notions about low-risk gambling forms are also addressed. The UKGC clarifies that problem gambling rates vary significantly by activity, ranging from 0.9 percent for National Lottery players to 8.5 percent for online slots, live casinos, or bingo participants.

Inaccuracies are noted in comparative analyses due to pandemic-induced data collection limitations or changes in survey methods. The UKGC emphasizes cautious interpretation.

The complexity of gambling statistics underscores the issue. Despite an apparently low overall problem gambling rate relative to participation, the UKGC stresses the profound consequences for affected individuals and their communities.

To maintain discussion credibility and informed decisions, the UKGC urges stakeholders to use statistics responsibly, ensuring diligence, precision, and contextual understanding.

The post UKGC Urges Responsible Use Of Gambling Stats Amid Debate appeared first on Keno Wizard.

Spelinspektionen, Sweden’s gambling regulator, announced that the government has urged it to work together with the Financial Supervisory Authority (Finansinspektionen) to combat illegal gambling. This comes following the introduction of changes to the gambling regulator’s powers.

According to the Swedish government, the Spelinspektionen and the financial authority should work together to control financial transactions related to gambling. Collaboration between the two regulators will help them closely oversee the sector and, for example, block payments to unlicensed companies when needed.

Camilla Rosenberg, director general of the Spelinspektionen, addressed the matter, saying that she sees the government’s proposal as very positive. According to her, partnering with the Financial Supervisory Authority will provide ample opportunities to put the tools available to the Spelinspektionen to use.

The strengthened cooperation with the Financial Supervisory Authority will provide good conditions for all tools to be used efficiently and result-oriented, which we see as very positive.

Camilla Rosenberg, director general, Spelinspektionen

Prior to tasking the Spelinspektionen to working with the Financial Supervisory Authority, the government introduced changes to the regulator’s powers. As noted by the gambling authority, more changes will be introduced within the next six months.

Other Spelinspektionen News

Last month, it was proposed to provide the Spelinspektionen with more funds to combat illegal gambling. Around $230,000 was to be set aside for the watchdog, strengthening its abilities to fight against crime and illegal gambling in Sweden.

The proposal was a part of the spring budget amendment and was based on an agreement between the government and the Sweden Democrats. Back then, the Spelinspektionen welcomed the proposal, saying that this will help it fight money-laundering, match-fixing and other gambling-related crimes.

Meanwhile, the BOS, Sweden’s Trade Association for Online Gambling, approved a separate call for increasing fees for license applications and issuing, saying that the extra funds would help the Spelinspektionen cover its costs for licensing and supervision.

In early April, the Spelinspektionen released an update on its board. As announced by the regulator, its board will continue to field seven members, with the only notable change being that it will now be chaired by Per Håkansson.

The Watchdog Continues to Regulate the Market

In other news, the Spelinspektionen just issued a B2B license to Soft2Bet, allowing it to complement its existing B2C business in the country. A few days prior to that, it also issued B2B licenses to Push Gaming and Pariplay.

Meanwhile, the authority slammed Bet365’s Hillside Hit brand with a $7.7 million fine over various violations. A day earlier, the Spelinspektionen also fined Betfair for accepting illegal bets in the country.

The post Sweden Urges Spelinspektionen and Finansinspektionen to Work Together appeared first on Keno Wizard.