Category Archives: Elected Officials

UPDATE: Gambling-esque Loot Boxes in Video Games Face Regulatory Measures & Studies from Governments like Hawaii and Private Companies like Apple, but are they Actually Harmful?

Casino Watch Focus has reported on the newly covered, gambling type video game items known as loot boxes. The boxes are purchasable in a video game and they provide random loot, or in game merchandise, much like a slot machine. This system of microtransactions came to light because EA pushed the envelope so far in their new Disney licensed Star Wars video game, that the only way to truly progress in the game or have the tools to win was to buy these loot boxes and gamble on the items you would get. The system is designed for the player to buy boxes, open them and chase after the best loot. Players pushed back, mainstream media picked up the issue, Disney had to get involve and make EA pull the gambling system from the game and legislators started looking into the issue. Hawaii legislators came out very strongly against the idea of exposing children to such psychologically manipulative, gambling type systems and called the game a Star Wars themed online casino. Its no surprise that a few weeks later and Hawaii legislators are now drafting legislation and working with other states and the industry itself to regulate the issue.   Gaming publication Kotaku reports:

A Hawaii in which games with microtransactions are illegal for minors to purchase is one that state legislator Chris Lee is now hoping to realize. He says that prohibiting the sale of games with loot boxes is a “no-brainer,” and along with a dozen other politicians, he says, he’s thinking of how to put legal controls around video game microtransactions. 

Over the course of a few months, Lee had been hearing from local teachers about kids who struggled with the temptation to spend beyond their means in game microtransactions. Lee cited one conversation about a kid who, he heard, had stolen their parents’ credit card to pay for their gaming habit. He says several families reached out about spending thousands of dollars on microtransactions.

“Gambling has been illegal especially for minors and young adults because they are psychologically vulnerable,” he told me, adding that kids “often don’t have the cognitive maturity to make appropriate decisions when exposed to these kinds of exploitative mechanisms.” 

“There’s no transparency at the outset of what they’re getting into,” he said. “That’s something I think is a real concern.” Now, Lee is working to prevent the sale of games containing loot boxes to gamers under 21 in Hawaii. He also wants games to disclose up-front whether they have “gambling-based mechanics” and to publicize the odds of winning various items in loot boxes.

Apple Inc. certainly agrees with Lee that the odds of winning various items need to be disclosed to gamers. Falling in line with what other foreign governments like China Korea, Apple is now requiring game companies to publicize the odds. Venture Beats explains:

Apple quietly updated its rules for developers yesterday with a new version of its App Store Review Guidelines, and it now requires that developers disclose the odds of getting cool loot in the loot boxes for free-to-play games.

Loot boxes have become a big monetization opportunity in free-to-play games, but they’re also controversial, as Electronic Arts’ discovered with tying loot crate purchases to unlocking desirable characters like Darth Vader in Star Wars: Battlefront II. Gamers revolted, and EA backed off. Government officials also started to step in to say that loot crates should be regulated, as they can be perceived as ripping off consumers or even as gambling.

Apple is clearly trying to get ahead of any regulatory problem by requiring that developers now disclose proper information.

But those in the gaming industry don’t believe loot boxes are gambling. Not only have individual companies gone on record to say they are perfectly fine, the ESRB, the self-regulated industry body who labels games by age range, came out and said they didn’t believe they were gambling and they certainly haven’t proposed any regulatory measures to help protect consumers against the predatory nature of microtransactions. Those fighting against loot boxes aren’t simply looking at antidotal evidence either. The UK’s Gambling Commission just released a report with rather shocking evidence of children as young as 11 being preyed upon and possibly lead into gambling addiction. Dr. Mark Griffiths, Professor of Behavioral Addiction at Nottingham Trent University explains:

Last week, the Gambling Commission’s annual report found that children as young as 11 years of age are “skin gambling” online – paying money for the chance to win in-game virtual items. But this, while alarming, is just the tip of the iceberg.

It’s the terrifying phenomenon of “loot boxes” that are the most worrying and potentially dangerous aspect of e-gaming for children right now. “Loot boxes” are everywhere – they are otherwise known as crates, chests, cases, bundles, and card packs.

In FIFA Ultimate Team, for example, players can purchase gold, silver or bronze card packs, either using in-game currency or real money, in the hope of getting their hands on top talent to improve their teams. But there’s no guarantee of landing A-listers like Ronaldo or Messi – the cards won’t all be star players and will more likely be less valuable collectables.

The issue is that the buying of crates or loot boxes is a form of gambling because players, often children, are being asked to buy something of financial value that could end up being of lower financial value than the amount they paid. 

The good thing is parents are now hearing about things like “skin gambling” and “loot boxes” but children also need to be educated about these activities as much as drinking, drugs or the risks of underage sex. Parents need to get to grips with what is going on in their children’s worlds.

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION

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Update: Florida Voters in Charge Amendment Reaches State Signature Requirement and Receives backing from Disney and Seminole Tribe

Casino Watch Focus has reported on the ongoing progression of signatures gathered to place a new amendment on the Florida ballot aimed and controlling gambling better in the state. The proposal would require any gambling legislation passed by the Florida Government to get a vote of the people to pass. Disney has been a backer of the amendment and now it appears the Seminole Tribe has joined in support. The Tribe has a vested interest in keeping gambling to a minimum, given they are one of only a few means to gambling in the state. Still, they have had a difficult time recently with the Florida government adhering to the agreement to keep certain gambling activities restricted in the state, so its unsurprising that they would back additional gambling expansion safeguards. In addition to their support, its being reported that the Voters in Charge amendment has reached the signature threshold to allow the measure to be voted on by the people. An online source explains: 

Voters in Charge is pushing the Voter Control of Gaming Amendment. If the group can obtain the necessary 766,200 signatures to put the issue before voters, Florida residents would decide next fall on the forcing all future gaming expansion to be decided by the voters directly. Outside of the state lottery, parimutuel racinos, and Native American casinos, gambling is supposed to be illegal in Florida. But state lawmakers have gotten crafty in recent years, allowing for parimutuel venues to dance a fine line between racetrack or jai-alai fronton and full-fledged casino.

Well-funded by the Seminoles and Disney, Voters in Charge seems to have plenty of support to get the ballot question before voters. The group said in a release that it has obtained 860,203 signatures, far more than the 766,200 needed. Voters in Charge Chairman John Sowinski said election officials are currently in the process of validating the signatures.

A poll this year found that 84 percent of Floridians “want to reduce or hold the line on gambling.” While this research was commissioned by a lobbying firm working closely with the anti-casino activist group, they now have support from the biggest pro-casino group in the state in an effort to maintain the competitive status quo. 

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION


Florida Sen. Tom Lee Proposes Unique way to Ban Greyhound Racing, but is it Meaningful and Helpful Change or a Decoupling Effort Aimed at Gambling Expansion?

Casino Watch Focus has reported on the ongoing struggles of Florida’s greyhound industry and efforts to remove the races, but keep the slot machine gambling, an act known as decoupling. As it stands, to offer slot machines, the tracks must maintain a certain level of dog racing. Many see the terrible conditions for the animals as reason enough to shut down the industry and others want to not only protect the dogs, but Florida’s families by removing the full scope of gambling happening at the 12 tracks across Florida. Florida state Sen. Tom Lee, and former Senate President Don Gaetz are approaching the issue in unique way. As an online source explainsthe current methods to ban greyhound racing have failed due to the ability for those in opposition to add gambling expansion and other amendments to the bill that would make it undesirable. They now think the have a way around this issue:

Gaetz and state Sen. Tom Lee, both members of the Constitutional Revision Committee convened early this year, are listed as co-introducers of a measure “to prohibit wagering on greyhound or other dog races.”

Gaetz called the gaming event known as the Sport of Kings “a cruel, abusive practice” and noted that twice when he served as Senate President he had proposed legislation to ban greyhound racing. Both times the measure had passed the Senate and failed in the House.

Then-House Speaker Will Weatherspoon had been hesitant to have a companion bill to his legislation brought up for consideration, Gaetz said, because doing so would allow for amendment proposals that could serve to expand all sorts of gambling opportunities in the state.

“He was afraid we could move from a very humane bill about greyhounds to amended legislation creating a dramatic expansion of casino gambling,” Gaetz said. “It was a real tragedy we couldn’t get a clean bill banning greyhound racing passed.” As Constitution Revision Commission members, though, Gaetz and Lee can control the wording of the amendment they propose without fear of amendments being added. The proposed amendment would then be voted upon by state residents. “This seems like a better environment for this proposal,” Gaetz said.

If the proposed amendment is an outright ban of greyhound racing and doesn’t allow the site operators to stay open and operate mini-casinos by way of legally allowed slot parlors, the measure can be viewed as a win for the animals and Florida families. If, however, the measure simply prevents additional gambling amendments, but still leaves mini-casinos behind via decoupling, then it’s not nearly as beneficial as it appears on face. Some are skeptical. Former Florida Lieutenant Governor Jeff Kottkamp has been outspoken against decoupling and his article in Florida Politics outlines the decoupling potential:

State Sen. *Tom Lee* has proposed a constitutional amendment, as a member of the state’s Constitutional Revision Commission, that would end live greyhound racing and allow all 12 of Florida’s greyhound tracks to essentially continue operating as mini casinos.

It has been suggested that the proposal is an animal welfare proposal. There have been numerous attempts to end live racing in the Legislature over the years. All of those efforts have failed, in large part, because most members of the Legislature oppose the dramatic expansion of gambling that would result from such efforts.

It must also be noted however; his end goal is not to solely or altruistically oppose the act because gambling would left in the wake, as so many others do. He openly represents Florida Greyhound Association, so to that end, their goal is to keep greyhound racing alive. The rational and motivation behind each particular path can become muddled, but the reality of how this issue will be resolved is in the air until final language is seen. The intent of this measure is certainly being outlined from an animal welfare standpoint though, so time will tell what the final wording will be or even if it will make it to voters. The Bradenton Herald explains:

Dog racing is banned in 40 states and controversy surrounds the industry. Opponents say dogs are mistreated and have tested positive for cocaine, according to reports. According to the Tallahassee Democrat, at least 22 greyhounds have tested positive for cocaine this year and state figures show nearly 400 dogs have died at Florida tracks since 2013.

“There is growing recognition that many of these animals live in inhumane conditions, a reality that is out of line with the moral standard of Floridians,” Lee said in a statement. “For over a decade, the Legislature has fought to end greyhound racing, but special interests derail the issue every year. Now is our opportunity to finally end the mistreatment of greyhounds, reduce the amount of gambling in our state, and restore community values.”

Lee is on the Constitution Revision Commission, which has the power to place amendments on the ballot and meets every 20 years. Lee would need to convince the majority of the commission members to allow the proposal on the 2018 ballot before the decision would be passed to voters, according to the Democrat.

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Florida goes after Pari-Mutuels as it Seeks to Enforce Designated-Player Card Games Ruling

Casino Watch Focus has reported on the ongoing and developing situation regarding designated player banked card games. This form of card game was offered for four years before its legality was challenged. Last year, however, the court determined the games to be illegal and a violation of the Seminole Compact which outlined exclusive card games at Seminole casinos. As recently reported by Casino Watch Focus that ruling is being challenged in appeals court and is set to be heard next month. In the mean time, swift enforcement has begun to stop these illegal card games. An online source explains:

Florida gambling chiefs have launched legal action against two pari-mutuel venues, the Sarasota Kennel Club and Pensacola Greyhound Racing, for their alleged failure to remove so-called “designated player games” from their premises.

Meanwhile, many of Florida’s other cardrooms and racetracks are bracing themselves for similar action, as the state moves to crack down on the controversial games.

This action is especially important given litigation was dropped by the Seminole’s in exchange for the state agreeing truly enforce the courts ruling. The online source continues:

The case had initially been brought by the State against the Seminoles for their refusal to stop offering banked games once their initial five-year compact expired in 2015. But the tribe countersued over the exclusivity violation, forcing the state into a humiliating retreat. In July, both parties agreed to an end to litigation and the state vowed it would take “aggressive enforcement action” against pari-mutuels that violated the ban on the games it had previously permitted.

Nick Iarossi, a lobbyist for Jacksonville Greyhound Racing, told Sunshine State News that the state’s actions this week show it intends to live up to its word. “They’re going to come in. They’re going to check tape. They’re going to watch games being played live. And if they see anything out of compliance being done, they’re going to issue administrative complaints and fines,” he said. “So everybody is double- and triple-checking to make sure they’re in compliance.” 

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION


First Case of De Facto Decoupling Granted in Florida

Casino Watch Focus has reported on the ongoing efforts of those in the dog racing industry to separate the need to continue to allow races as a requisite for allowing slot machines at their facilities. Florida law stated that slot machines were only allowed in certain counties and racing facilities. The dog and horse racing industries in Florida have been struggling. Few bet on the races, the greyhound industry has come under increased scrutiny for mistreatment or drugging of their animals and its been clear that slot machines are the only real think keeping the doors open. Those involved have been attempting to remove the racing requirement so they can simply offer slot machines instead of closing the tracks down. It now appears that one venue has succeeded at getting permission to decouple. The Miami Herald explains: 

Florida gambling regulators this week gave a Miami dog track permission to ditch greyhound races but keep more lucrative slot machines and card games, in a first-of-its-kind ruling.

The Department of Business and Professional Regulation on Wednesday granted a request from West Flagler Associates, which operates Magic City Casino in Miami, to replace dog races with jai-alai matches, as part of a drawn-out legal dispute over a controversial “summer jai-alai” permit.

It’s the first time a pari-mutuel facility has been allowed to drop dog or horse races and continue operating slots. 

This isn’t the result of new legislation or action taken by gambling administrators, as much as it is an application of an old 1980 law. But it does signal that legislators are willing to consider more wide spread decoupling legislation in future. The Miami Herald continues:

The Magic City decision is rooted in a 1980 Florida law that allows pari-mutuels in Miami-Dade and Broward counties that have the lowest betting handle for two consecutive years to convert to summer jai-alai permits. But if those pari-mutuels do not seek conversion, other facilities can seek the permits. The Miami dog track’s lawyer, John Lockwood, first sought the summer jai-alai permit for Magic City in 2011.

After much legal wrangling, the department’s Division of Pari-Mutuel Wagering denied the track’s request to do away with dog races, launch jai-alai games and keep lucrative slots that the track began operating after voters signed off on the machines in 2004. But the 3rd District Court of Appeal ordered gambling regulators to reconsider the issue.

In a declaratory statement issued Wednesday, state regulators said Florida law gives the track the green light to do away with dog races, as long as the jai-alai matches take place at the same facility where the current greyhound permit is operated.

 The agency’s decision won’t have broad implications but comes as lawmakers consider a push by gambling operators who want to do away with live dog and horse racing while holding onto slots or card rooms.

“It’s pretty clear that the department intends for this to not have any far-reaching effects, but once again, John Lockwood has masterfully used a unique set of circumstances to create a positive outcome for his client,” Scott Ross, a former deputy secretary at the Department of Business and Professional Regulation who is now a lobbyist representing other gambling operators, said in a telephone interview Thursday.

Hopefully this was just legal maneuvering and the skill of a lobbyist with connections, but its best to make your opinion known to local representatives.

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION


Tribal Casino being pushed in Missouri has Immediate Opposition

Casino Watch Focus has reported that in Missouri, there is a cap of 13 casinos and they must be on the Missouri or Mississippi rivers. The laws have augmented over the years, but initially Missouri only allowed 2 hour river boat gambling tours. Now the casinos are full fledged casinos, not traditional paddle boats, although the still technically float on the rivers as water is pumped in under the buildings. There have been some efforts to expand gambling by attempting to amend the Missouri Constitution to allow casinos in the Branson area, but all efforts have been quickly squelched. Most recently, a trade off was made when voters removed the original $500 loss limit in exchange for a cap on the number of casinos at 13. Now, it appears new efforts have emerged in an effort to get a new form of gambling authorized in Missouri, tribal gambling. An editorial originally published in the Kansas City Star demonstrates how the Osage Nation has laid the ground work to get Gubernatorial approval for tribal gambling in Missouri:

Last December, the Osage Nation of Oklahoma wrote two checks to the Committee for a New Missouri, the dark money nonprofit set up to help pay for Gov. Eric Greitens’ January inauguration. The donations — first revealed by the St. Louis Post-Dispatch — totaled $52,700.

The tribe wanted a good relationship with the incoming governor, its leader said. Oh, and Osage Nation operates seven gaming casinos in Oklahoma and just might be interested in building another facility in Missouri.That facility would need the approval of Missouri’s governor. Under existing federal law, he must conclude a casino would be “in the best interest of the Indian tribe and its members” for the application to move forward.

The story clearly demonstrates why it’s so important to know where political money is coming from.

Missouri Gov. Eric Greitens said he would support the casino if it was both good for the Osage tribe and Missourian. Rep. Jason Steelville also expressed a desire to support a new casino. However, not everyone shares those sentiments and opposition to a new casino in Missouri has already emerged. The Missouri Times explains: 

Don Hinkle, the public policy advisor for the influential Missouri Baptist Convention, editor of The Pathway, and one of the state’s most vocal evangelicals, says that the Missouri Baptist Convention would strongly oppose a casino because of the detrimental effects they believe gambling has on a society.

“Gambling is a form of economic predation. They’re predators. It benefits international corporations while opposing the lower class, the very people we need to be helping here in Missouri. Allowing casinos to prey on them is not good economics, it’s not good business, and it’s not good for Missouri. Every Missourian ought to stand up and call this out for what it is. It’s wrong, and we don’t need it in Missouri. Missouri has a great economy with great people who are willing to work.”

Hinkle says that Greitens’ response in which he said he would support it if it were good for Missouri should be taken with a grain of salt. “That’s a mighty big caveat, and I’d tend to give the governor some slack here. It doesn’t sound to me like he’s committed to it,” he said. 

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION


New Federal Sports Gambling Bill Emerges in Congressional Committee

Casino Watch Focus has reported on the many attempts of New Jersey to legalize sports betting. The reason all of their attempts have failed is because federal law prevents states from allowing sports betting under the Professional and Amateur Sports Protection Act, the Wire Act, the Illegal Gambling Business Act and most recently, the Unlawful Internet Gambling Enforcement Act. A new federal bill, if passed, would remove federal bans on certain gambling and allow the states to regulate them as they please, thus effectively legalizing sports betting for New Jersey and others if they so choose. An online source breaks down the Gaming Accountability and Modernization Enhancement Act (GAME Act):

The US Congress may consider a gambling bill that would annul a *federal gambling ban*. This, on the other hand, would allow the country to make any form of gambling legal and regulate it. 

[I]f the GAME Act is enacted, it would annul the 1992 federal law and would allow every state to separately add sports betting and online gaming to the gambling operations that are legal there. As explained above, *customer protection rules*, as well as rules about *taxation and regulations* are also implemented in the proposed piece of legislation.

Stakeholders are also allowed to give their feedback for the GAME Act. As it has already became clear, the American Gaming Association backed the legal expansion of sports betting operations. Other organizations, such as the National Collegiate Athletic Association (NCAA) do not support the bill. 

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION