Category Archives: legislation

Florida Bill Banning Online Lottery sales Advances with Additional Warnings for Gamblers

Casino Watch Focus has reported on the ongoing developments of the Department of Justice’s decision to restore the wire act to its long standing position that makes online gambling illegal. Many states have an eye on the developments as legal action was threatened by New Jersey and New Hampshire. The topic is also of interest in Florida where many are curious how gambling legislation will move forward in the wake of the Voters in Charge gambling bill being passed that requires statewide voter approval for gambling expansion. The most well know issue centers around sports betting, but online gambling is also of interest. To that extent, a bill is moving forward in the Florida legislature to end the practice of online lottery sales before it gets off the ground. An online source reports:

Florida does not sell lottery tickets over the internet — and if a bill passed Wednesday by the House Gaming Control Subcommittee becomes law, it never will.

While New Hampshire has sued the Department of Justice in a bid to protect the revenues it derives from its online lottery operations, State Rep. Will Robinson (R-Bradenton) wants to the option taken off the table entirely.

The main aim of Robinson’s bill — which was advanced by the committee in a 10-1 vote — is to shut out third-party websites that claim affiliation with the state lottery but actually just buy tickets and mark up prices.

The bill would ban the use of personal electronic devices for the sale and purchase of tickets, ensuring that every ticket sale involves a transaction between a store and an in-person buyer.

“These fraudulent websites are, in my view, illegally advertising when they are not related to the lottery system at all,” he told /Florida Politics/ earlier this week. “The lottery is significantly regulated and that’s for a purpose … The state of Florida wants to make sure the right thing is being sold.”

The bill’s intent goes beyond just selling tickets online however. The Rep. Will Robinson Jr believes people should truly understand how very unlikely the changes of winning the lottery are for would be gamblers. He has proposed additional warnings placed on physical tickets. The Tampa Bay Times explains:

Debate about a bill that would require warnings on lottery tickets quickly turned into a debate on Wednesday about whether anyone in Florida is actually addicted to lottery games, with one lawmaker blasting it as “deceptive.” The bill (HB 629) by state Rep. Will Robinson, Jr., R-Bradenton, would add two warnings to the front of every lottery ticket:

“WARNING: PLAYING A LOTTERY GAME CONSTITUTES GAMBLING AND MAY LEAD TO
ADDICTION AND/OR COMPULSIVE BEHAVIOR.”

And, “THE CHANCES OF WINNING A BIG PRIZE ARE VERY LOW.”

Under the bill, those two warnings would take up 10 percent of the face of every lottery card, and they would be required in every Florida Lottery advertisement, including those on television.

But state Rep. Emily Slosberg, D-Boca Raton, grilled Robinson during a House Gaming Control Subcommittee meeting about whether he knows of anyone addicted to lottery games. Robinson he didn’t know of any personal examples, but he pointed to news articles out of state. That led Slosberg to come out strongly against the bill.

How many people might be addicted to the games is unclear. But the numbers show that some Floridians spend a staggering amount each year on lottery tickets. Last year, the Florida Lottery sold $6.7 billion in tickets — nearly $400 in tickets for every adult in the state. (The figure doesn’t include tourists, some of whom also play.) And while the Florida Lottery does post the number to a gambling addiction hotline on its website, it doesn’t say anything on its tickets. State Rep. Randy Fine, R-Palm Bay, who used to run a casino consulting company in Las Vegas, disagreed with Slosberg. “The research proves that there are people that become addicted to gambling, and whether it’s 1 percent or 5 percent, people do at times become susceptible to this,” he said. “I know this from my prior life.”

The bill passed the House Gaming Control Subcommittee with only Slosberg voting against it. 

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

 

Advertisements

Bipartisan Federal Sports Betting Regulations Introduced

Casino Watch Focus has reported on the ongoing battles to legalize sports betting outside of Las Vegas. Since the recent Supreme Court decision effectively allows individual states to pass sports betting legislation, many have called for a federal response to provide uniform and consistent guidelines. Now, a new bill has been brought forth and it’s a bipartisan effort. Forbes explains: 

Days before he is scheduled to retire, Orrin Hatch has a parting gift for the Senate. Hatch and Sen. Chuck Schumer introduced bipartisan legislation on Wednesday that would create uniform federal standards for the legalized sports betting market. The bill, the Sports Wagering Market Integrity Act of 2018, is being introduced less than eight months after the Supreme Court’s landmark decision in May that struck down a 26-year federal ban on sports gambling.

“This bill is the first step toward ensuring that sports betting is done right in the states that choose to legalize it. Just as importantly, it provides protections for states that choose not to go down that path,” Hatch said in a statement.

The proposed legislation includes a mandate that would require sports wagering operators to use data provided or licensed by sports organizations to determine the outcome of sports wagers through 2024. Upon the completion of the transition period, the proposed bill allows operators to use alternative forms of data if they can prove that it is sufficiently similar to the data provided by the leagues.

Each state has 18 months to come into compliance with the legislation before the bill takes effect. Hatch, a Utah Republican, was an original author of the Professional and Amateur Sports Protection Act, a 1992 federal law that prohibited sports betting.

This bill has garnered the support of the NFL and others as its viewed as having the necessary regulatory guidelines and enforcement tools to help regulate the industry as best as it can. Forbes continues: 

“The bipartisan legislation that Senator Hatch and I have introduced, follows the principles laid out in the federal framework that I released in August and will serve as solid foundation upon which we build the appropriate guardrails around the burgeoning sports betting industry,” Schumer said in a statement.

In the months since the Court rendered its decision, the NFL has advocated for the imposition of robust federal guidelines that could mitigate some of the societal risks posed by sports gambling. On Wednesday, NFL Executive Vice President Jocelyn Moore applauded the senators for establishing positions in the bill that “closely aligned,” with the core standards she articulated in testimony before Congress. Specifically, Moore appeared pleased with guidelines that could provide law enforcement with tools to penalize unscrupulous actors closely tied to the dark underbelly of gambling.

Not everyone supports the bill and others see it as a vehicle for expanding the Wire Act to involve all interstate betting, not just sports betting. The changing political landscape will also complicate the issue. Forbes wraps up by reporting: 

There were also reports on Wednesday that the Department of Justice is prepared to reverse a 2011 opinion from the Office of Legal Counsel on the Federal Wire Act. When the department issues the opinion, the government could find that the act pertains to all forms of online gambling, not just sports betting, according to Online Poker Report. In an opinion seven years ago, the office wrote that the act only applied to the latter.

The bipartisan bill from Hatch and Schumer, a New York Democrat, seeks to update the Wire Act to allow certain interstate wagers. The draft also proposes the creation of a new mechanism that could allow the Justice Department to target unlicensed, illegal offshore sports betting websites.

The timing of a vote still remains in question. Besides Hatch’s retirement, a leadership change in the House of Representatives could complicate matters.

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

 


Vatican Says Using Gambling for Tax Revenue is Unethical

Casino Watch Focus has reported many times on various states expanding gambling as a means to collect tax revenue, often times at the expense of its own citizens. 100 years ago virtually all forms of gambling were illegal, but slowly, one state at a time, gambling has been made legal by states looking to take their cut of the action. Some gambling expansion takes the form of lotteries, other expansion measures are full-scale casinos. The sales pitch is typically the same, why not allow some harmless fun that will allow the state to bring in some much needed tax revenue, often times promised to local educational causes. Unfortunately, gambling is rarely simple fun and leads to out breaks of crime and addiction. As such, the Catholic Church has come out in opposition to generating tax revenue from gambling, calling it unethical. The Catholic Spirit reports:

Legalizing gambling fuels addictions, creating more and more compulsive gamblers, and using the industry as a source of tax revenue is unethical, said a major Vatican office.

“The legalization of gambling, even when it is supported by the intention of unmasking its criminal management, exponentially increases the number of pathological players,” said an introductory note to an international conference on drugs and addictions, organized by the Dicastery for Promoting Integral Human Development.

“Moreover, taxation by the state is to be considered incompatible from an ethical standpoint and contradictory in terms of prevention,” it said in the conference program, released Nov. 26.

“As the landscape of addictions diversifies, indifference and at times indirect complicity in this phenomenon contributes to diverting the attention of public opinion and governments, often focused on other emergencies,” it said. 

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


Florida Votes to End Dog Racing – What Comes Next?

Casino Watch Focus has reported on the complicated decoupling issue masked as a simple greyhound ban that later officially became known as Amendment 13The amendment needed 60% voter approval to pass and it received 69%. At face, the Amendment will end live dog racing at the end of 2020, but many questions remain. The Amendment also decoupled the gambling requirements at those facilities from the actual live racing.   This means the facilities aren’t shut down completely, but they can offer simulcast races and slot machines and other prior authorized forms of gambling. The Orland Sentinel explains that some tracks will operate as these mini-casino’s, while others will have fewer options:

While all other tracks in Florida also have card rooms to supplement their dog-racing revenue, Sanford Orlando does not, making its future more tentative.

Florida’s 11 active dog tracks will have until Jan. 1, 2021, to phase out their live greyhound racing. They’ll still be able to race horses, if their tracks can accommodate the event, and they’ll still be able to have wagering on simulcast races from other tracks, including from dog tracks in the five remaining states where the practice is still active and legal.

The questions of how much gambling expansion will also need exploring thanks to the passage of Amendment 3, which will now require voter approval for new gambling. This is a bit of a grey area as it may seem clear that a new simulcast track may not be able to be built without voter approval (a key worry with decoupling as it would be far easier to set up a simulcast location and operate as a mini-casino via decoupling), but expanding the gambling at an existing location may be perfectly permitable. The key example is the number of slot machines. The Sun Sentinel explains how existing tracks could simply drastically increase their numbers as the amount allowed is already established: 

Dog track owners in Florida will be allowed to keep operating card rooms. They’ll be able to run slots in the case of dog tracks in Broward and Miami-Dade counties. So, another result could be that track owners will use their space to expand restaurants and nightlife, or even casino floor space. In turn, the combination of anti-gambling expansion Amendment 3 and anti-dog racing Amendment 13 could mean already existing casinos offer more entertainment options for patrons. 

There already is an example of that. The Magic City Casino in Miami had been a dog track until last year, when the state Department of Business andProfessional Regulation gave it permission to convert to ajai-alai fronton.

The decision capped off a six-year legal fight between the casino and state regulators. With the jai-alai court taking up far less room than the track, Magic City Casino has plans to expand by putting the jai-alai court where its entertainment venue, Stage 305, is now and then building a much bigger entertainment venue on top of the old dog track.

The Big Easy Casino, a Hallandale Beach dog track, would have to stop racing within three years. What might be in store? An option for the Big Easy could be to expand lucrative slot machines. According to its own website, the casino currently offers “more than 500” slot machines. The upper limit for perimutuel casinos under state law is 2,000, though none of them at this point have approached that limit. 

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


Florida Voters Pass Amendment 3 to take Control of Casino Gambling

Casino Watch Focus has reported on the evolution of the Voters in Charge which later officially became know under the title Amendment 3The Amendment sought to give the final approval of expanded gambling to the voters. If passed, new gambling would require approval of 60% of all Florida voters, which is clearly aimed at taking the power away from the politicians. The Amendment required 60% approval to pass and the Amendment 3 pass by an overwhelming amount. The Tampa Bay Times reports: 

Floridians will retain exclusive rights to authorize and potentially expand casino gambling in the state, including slot machines and electronic betting games.

Amendment 3, which garnered about 71 percent of the vote Tuesday, was proposed by Voters in Charge — a political committee largely financed by the Seminole Tribe and Disney.

The ballot initiative came about after the Legislature failed to agree on gambling decisions in recent years — particularly in the House, which is more opposed to gambling than the Senate.

The Florida Chamber of Commerce supports the amendment.

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


New Loot Box Legislation Proposed Domestically as Foreign Governments Ban them in Video Games: Publishers State they Wont Stop Exposing Children & Gamers to Such Practices

Casino Watch Focus has reported on the ongoing realization that loot boxes are simply a sophisticated form of gambling in video games. More and more jurisdictions are becoming aware of loot box and skin gambling as they are expected to reach revenue over $50 billion dollars by 2020. Many domestic jurisdictions have already proposed regulations, studies or called for the industry to self-regulate. Minnesota is the most recent to propose legislation. An online source explains: 

[N]ew loot box bill was introduced in Minnesota this week. The bill joins other state level legislative efforts in the USA, which were introduced since the global loot box debate peaked in the second half of 2017. State Rep. Rick Hansen (DFL-South Saint Paul) introduced the bill H.F. 4460, which “would regulate ‘loot box’ gambling in video games”. The matter was discussed and both parties spoke in favor of the bill. According to Rep. Hansen “People are spending real money on random drawings in video games. Minnesota regulates gambling and when loot boxes meet the threshold to be considered gambling, then we need to treat it as such and regulate it too.”

The bill prohibits the sale of a “video game containing a system that permits the in-game purchase of (1) a randomized reward or rewards, or (2) a virtual item that can be redeemed to directly or indirectly receive a randomized reward or rewards to a person under 18 years of age” [sic].

Additionally, no video game may be sold or provided unless accompanied by a warning stating: “Warning: This game contains a gambling-like mechanism that may promote the development of a gaming disorder that increases the risk of harmful mental or physical health effects, and may expose the user to significant financial risk.” For games sold through electronic means, the warning must be acknowledged by the purchaser.

The Minnesota bill has a long way to go before it becomes binding legislation, as do most of the domestic bills discussed recently. However, several foreign government have passed and implement regulations including outright banning loot boxes from video games. The online European source The Verdict explains: 

Belgium has followed the Netherlands in banning the sale of loot boxes in video games, as Europe begins to crack down on what it deems to be illegal gambling operations run by major game publishers. Speaking to /Verdict/, a Belgian Gaming Commission spokesperson said: “The Belgian Gaming Commission has come to the conclusion thatreal-money loot boxes are gambling. This means that in Belgium, these types of games are prohibited unless licensed.”

If they do not adapt their games, they all potentially face criminal prosecution. Punishments would include up to five years in prison and fines of up to €800,000, which could be doubled if it is found that minors were involved.

It is highly likely that this would be the case. Approximately 22% of video gamers are aged between ten and 20 years old according to Statista, which is largely the cause of the Belgian Gaming Commission’s concerns. The Belgian Gaming Commission added:

“Real-money loot boxes are not innocent. Especially because the video games that they appear in are often played by children. “The Gaming Commission wants to protect the players in general and vulnerable groups (e.g. minors) in particular.”

Despite all these bans and all the discussion of how loot boxes are gambling and harmful to children, publishers don’t seem to willing to stop such predatory practices. EA, the publisher whose Star Wars video game Battlefront started this backlash, has been the most vocal about their inability to part from this gaming mechanic. The Verdict continues:

The loot box debate has been going for some time, but the bans issued by the Netherlands and Belgium are the first sign that governments are beginning to take notice. However, at least for the time being, publishers are unlikely to be too concerned.

Tom Wijman, market consultant at video game research company Newzoo, told Verdict: “I don’t expect publishers to be too worried, it should be quite simple to turn the option for loot boxes off for Belgian and Dutch bank accounts, and those markets are pretty small compared to the United States or UK.”

EA stated that it disagrees with Belgium’s ruling. A company spokesperson told /Verdict/ that the company welcomes discussions with Belgian authorities, but did not confirm whether it intends to comply with the request to remove these items from its games. EA CEO Andrew Wilson has since told industry analysts that the company plans to continue pushing forward with services such as Fifa Ultimate Team, which generates vast revenues through the sale of loot box items known as player packs.

For now, the issue is more of a nuisance than a problem for game publishers, but it could get worse if other regulators decide to follow Belgium’s lead. “I think the significant part about these bans isn’t so much theNetherlands and Belgium banning loot boxes, but rather the messagethis sends to regulatory institutions for gambling worldwide,”Wijman added. Should other countries issue similar bans, the attack on loot boxes could prove costly for developers.

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


Supreme Court Could Rule in Favor of Sports Betting Expansion Soon, MLB & NBA Seek to Impose a Controversial Integrity Fee

Casino Watch Focus has reported over the years on the numerous efforts by New Jersey to legalize sports betting in their State. As is stands. Las Vegas is the only place where sports betting in allowed and the Supreme Court has heard arguments about the appropriateness of the PASPA, the law which makes it illegal outside of that specific jurisdiction. Experts believe the ruling could come as early as Monday, April 2nd, so states are getting ready. The Washington Post reports:

Some time before July — perhaps as early as Tuesday — the Supreme Court is expected to make a ruling that could drastically alter sports gambling in the United States, possibly striking down the 25-year-old federal law that largely prohibits sports bets outside of Nevada or maybe allowing individual states to decide for themselves whether fans should be permitted to wager on games.

While the Supreme Court could opt to maintain the status quo, many sports gambling analysts and court-watchers anticipate a ruling that lays out some sort of path to legal sports wagering. At oral arguments in December, a majority of justices seemed receptive to New Jersey’s argument. At least 18 state legislatures have some form of legislation in the works in anticipation of the Supreme Court giving them a path to legalized sports betting.

The States aren’t the only ones preparing for such a Supreme Court decision. Whereas the NHL and NFL are continuing their position of opposing sports gambling, the NBA and MLB are actively lobbying state legislatures to craft gambling legislation that they believe will be integral to the leagues. Bloomberg explains:

Now, on the eve of a Supreme Court decision that could reshape gambling in America the leagues have come around. Professional baseball and basketball have gone further: They also want a cut of the profits, drawing a new battle line with the casinos and sparking a state-by-state lobbying war. The National Basketball Association and Major League Baseball are asking legislators to require casinos to pay the leagues 1 percent of all wagers placed on their sports. Casinos and sports book operators, unsurprisingly, are vehemently opposed.

The fee is by far the most controversial entry on the leagues’ wish list, though there are others: The leagues want states to require bookmakers to use official data streams, share consumer information and allow the leagues final approval of what types of wagers are allowed on their games.

The leagues justify the fee as part royalty, owed to the league for rights to profit off its games; and part insurance policy, to offset the risk to the league that its games will be corrupted and the money it will spend to make sure they aren’t.

“Sports betting is built on our games,” NBA General Counsel Dan Spillane told a hearing of Connecticut legislators on March 1. “If something goes wrong, if there’s a scandal, something that tarnishes the image of the game, that’s going to be a cost borne by the sports leagues, and less of a cost borne by the operators that offer sports bets.”

A representative from William Hill Plc, one of the world’s biggest gambling companies, made the bookmaker’s case. Las Vegas casinos typically keep about 5 percent of the bets they take, he said, which means the NBA’s proposed 1 percent cut is really a 20 percent cut of revenue.

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