Category Archives: Social Costs

UPDATE: Seminole Tribe Ends Payments to Florida After Failed Compact Negotiations: Special Legislative Session Talks Begin

Casino Watch Focus has reported on the recent news that the Florida legislative session would end with no gambling deal in place. The failure to renegotiate a deal has been an ongoing issue. At the core of the problem is that the Seminoles have exclusive rights to table games and certain gambling. Florida has not been enforcing this exclusivity and the courts sided with the Seminoles. However, the Seminoles have been acting in good faith, providing the state with the estimated $300 – $350 million annual payments the original agreement set up for such exclusivity. But now that the legislature has once again failed to stop others from offering designated card games, which is expanding gambling in the state, the Seminole tribe has decided to now stop providing the good faith payments. The Sun Sentinel reports:  

The tribe had warned it would halt the payments, which totaled nearly $330 million last year, because of controversial designated-player card games offered by many of the state’s pari-mutuel cardrooms. The Seminoles — and a federal judge — say the games violate part of a 20-year gambling deal by the tribe and the state in 2010. That deal, in part, gave the tribe exclusive rights to “banked” card games. 

The Seminole Tribe of Florida made good on threats Tuesday by telling Gov. Ron DeSantis it is quitting a long-standing revenue-sharing agreement with the state after negotiations on a new gambling deal went nowhere this spring. 

In a July 2017 settlement between the Seminoles and former Gov. Rick Scott, the state agreed to drop its appeal of Hinkle’s decision and to take “aggressive enforcement action” against pari-mutuels operating banked card games that violate state law. In exchange, the Seminoles agreed to continue making payments to the state until the end of this month. “Unfortunately, there has not been aggressive enforcement against those games, which have expanded since Judge Hinkle’s decision,” Osceola wrote.

Florida lawmakers considered this possible outcome, and mad adjustments the budget, but some believe the financial contribution, and the gambling restriction that comes from Seminole exclusivity, too import to not make an attempt to resolve the issue.   An online source explains:

State Representative Evan Jenne called for negotiations with the Seminole Tribe of Florida to reinstate the annual payments of an estimated $350 million suspended by the tribe after a failure to reach an agreement about the future of gambling in the state. “That’s just too much money to be left out there unaccounted for in our budget,” said the legislator.

Jenne, a Democrat who represents 99th District which include most of Hollywood and Southern Broward, said the suspension of payments from the tribe could have been avoided. “It was something that was a long time coming, it’s been talked about for quite some time it’s been nearly a decade since the compact would, should have been signed,” he said.

“They had a promised of exclusivity when it came to games like that and the state has not done their part in holding up that part of the bargain,” said Jenne.

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Florida Gov Encouraged to Pass Lottery Ticket Warnings

Casino Watch Focus has reported on a Florida Bill that would call for warning labels to be placed on the front of physical state lottery tickets sold, as well as prevent online sales in the future. The warning labels would be visible and warn that playing lottery games constitutes gambling and may lead to gambling addiction. Those in support of using gambling as the means to fund education took issue with the bill and drafted a letter. No-Casino’s John Sowindki addressed the problems with the letter and encouraged passage. Florida Politics reports: 

“The lottery industry would rather pretend that there are no adverse consequences to their regressive and addictive enterprise,” said No Casinos President *John Sowinski*. “Clearly there are.” Sowinski goes after specific points raised in a letter from World Lottery Association President *Rebecca Paul Hargrove* to Gov. *Ron DeSantis.*

Hargrove argues requiring warning labels on the front of lottery tickets threatens education revenues in Florida and sets bad precedent nationwide. “The instant scratch-off games have been around for over 45 years, and sales of these games continue to grow every year,” Hargrove wrote, “but more importantly the sales of these games continue to grow funding for good causes every year.”

Sowinski suggests Hargrove gives up the game in her search for further lottery sales.“Rebecca Paul Hargrove’s letter is basically an admission that if Floridians are properly warned about the addictive nature of scratch-off games and other lottery products, that some will choose to not spend money on them,” Sowinski said, “which is the entire purpose of this good legislation.”

Moreover, Sowinski then brings into question the very nature of raising funds off those that are addicts in the first place. Florida Politics continues:

The legislation requires ticket labels read either “WARNING: LOTTERY GAMES MAY BE ADDICTIVE” or simply “PLAY RESPONSIBLY.”

Sowinski scoffed at the reluctance to warn against dangerous behavior or to demonstrate responsibility.

“The World Lottery Association’s letter never disputes the addictive nature of these games,” he said. “The fact is that gambling enterprises, including lotteries, rely on addicts who spend a high volume of money for a large portion of their profits. That they would object to a simple, truthful warning label is obnoxious.”

The bill has been sent to the Governor’s desk and awaits his action.

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


New Federal Legislation to Regulate Predatory Gambling-esque Loot Boxes in Video Games Announced by Mo Sen. Hawley

Casino Watch Focus has reported on the ongoing developments and many efforts by regulatory officials to bring awareness to a new form of gambling aimed at kids and video game players. Loot Boxes are a new gambling type mechanic that has the player pay money to open a mystery box in hopes of winning loot to help them in the video games they are playing. In some cases those items carry real value that can be sold, effectively making them video game slot machines aimed at kids. In other cases, loot boxes are implemented to play on the exact same psychology exhibited when people outright gamble, and regulators and studies agree. A lot of international efforts have been taken, but domestically, the reactions have been mostly to encourage the industry to fairly self regulate and to call for investigations into this gambling-esque video game mechanic that is largely targeting children. However, new federal legislation has now been announced by Missouri Senator Josh Hawley. NBC News Online reports: 

Senator Josh Hawley, R-Mo., is introducing legislation that seeks to ban exploitative video game industry practices that target children like loot boxes and pay-to-win, he announced on Wednesday.

“Social media and video games prey on user addiction, siphoning our kids’ attention from the real world and extracting profits from fostering compulsive habits. No matter this business model’s advantages to the tech industry, one thing is clear: there is no excuse for exploiting children through such practices,” Sen. Hawley said.

“When a game is designed for kids, game developers shouldn’t be allowed to monetize addiction. And when kids play games designed for adults, they should be walled off from compulsive microtransactions. Game developers who knowingly exploit children should face legal consequences.”

There are many strategies for regulating microtransactions and loot boxes. Some places have banned them outright, others have looked at making sure the items cant be sold for cash, thus not being gambling, but a transaction and others have focused on the intent of the loot box or simply the age of those making these purchases. Sen Hawley’s approach is a bit of an amalgam with the emphasis on the age of the player and the legislation utilizes a unique lens, The Children’s Online Privacy Protection Act. An online source explains: 

Called “The Protecting Children from Abusive Games Act,” the bill would specifically seek to protect minors by focusing on games either targeted at, or played by, consumers under the age of 18. Determining what games are targeted at minors would apparently be based upon a number of factors, including the game’s subject matter, visual content, and other indicators similar to those used to determine the applicability of the Children’s Online Privacy Protection Act (COPPA).

For games that meet the bill’s criteria, the legislation would prohibit “several forms of manipulative design.” In particular, the announcement identifies that the legislation would prohibit loot boxes, defined as “microtransactions offering randomized or partially randomized rewards to players.” Further, it would outlaw “pay-to-win” game designs, including both (1) attempting to induce players to spend money to quickly advance through game content that is otherwise available for no additional cost; and (2) manipulating the balance in competitive multiplayer games to give players who purchase additional microtransactions a competitive advantage over other players who do not pay the additional fees.

The proposed legislation would be enforced by the FTC through its authority to curb unfair and deceptive trade practices. In addition, the proposed legislation would empower state attorneys general to file lawsuits against game makers to enforce the act. 

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Missouri’s Largest Gambling Expansion Proposal Since Casino Legalization Emerges in the House

Casino Watch Focus has reported on the various gambling proposals and changes in the Missouri gambling landscape, but this proposal might be the most shocking. The Missouri constitution was amended to allow gambling on riverboats by the voters back in 1994 and since that time, the qualifications for river boat gambling has drastically expanded. Its started as actual river boats that traveled up and down the rivers for a two hour period, but now no time or monetary limits exist and gamblers walk into full scale buildings up to 25 feet off the river bank (albeit with a tiny amount of river water with a tiny amount of river water pumped underneath them as to technically make them water craft). Even still, gambling has always been limited to the Missouri and Mississippi rivers. Now a bill has been proposed in the Missouri house that is so radical, it’s not an exaggeration to call it the largest and most problematic expansion of gambling the state has ever seen. An online source explains:

“This irresponsible bill would permit slot machines on every street corner where a restaurant, bar, convenience store or truck stop is located,” said Mike Winter, executive director of the Missouri Gaming Association. “These machines look and play just like slot machines. If this bill passes, we can expect to see them in every city, town or community across the state. Missouri could very quickly have more slot machines outside of casinos than inside them.”

“This is not what Missouri voters envisioned when they voted to approve casino wagering in Missouri,” Winter said. “Voters were very careful to restrict casinos to certain locations and to limit the number of casinos.”

The bill would bypass a vote by Missouri residents, who first authorized casinos by ballot initiative in 1994 and also voted to limit the number of casinos to 13 in 2008.

Not only does the bill drastically expand gambling, it seemingly bypassing regulation by the Missouri gambling commission and it leaves vulnerable those people and families who could be most impact by gambling addiction. The source continues:

If passed, the proposed gambling expansion is expected to heavily impact rural areas throughout the state. The same towns and cities that opposed casinos in their communities could suddenly see hundreds of slot machines in family restaurants, convenience stores and other retail establishments.

HB 423 would prohibit anyone under the age of 21 from playing lottery slot machines but oversight would be minimal as compared to the strict rules that regulate casinos. Busy retailers with machines on their premises would be solely responsible for monitoring their use.

“The proposed regulations, security and oversight are simply inadequate,” Winter said. “This gambling expansion would bypass not only our state’s voters but also our strong gaming commission, which establishes and enforces strict gambling regulations in our casinos.”

Missouri casinos and the Missouri Gaming Association provide a full range of programs to promote responsible gaming and to help those who have a gambling problem. Retailers hosting lottery slot machines would not be required to provide similar responsible gaming education.

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


Despite Recent Supreme Court Ruling, most NCAA March Madness Gambling will be Illegal and Cost Employers Millions in Lost Productivity

Casino Watch Focus has reported on the ongoing problems that come with the NCAA March Madness tournament each year. Millions is lost to employers through a decline in work place productivity and people continue to gamble away money at unprecedented rates. Most of this gambling is illegal and despite the recent legalization of sports betting by the Supreme Court, that trend will continue. An online source explains:

America has seen a boom in legalized sports betting over the past year, and March Madness betting will highlight that. Nevada certainly remains the top dog, but New Jersey has come on strong. Yet illegal offshore sportsbooks continue to thrive. The American Gaming Association (AGA) set out to determine how much legal versus illegal wagering will take place with *March Madness *betting.

Over the first week of March, the AGA utilized Morning Consult to conduct an online survey among more than 11,000 adults. The study found that some 47 million people will wager on the NCAA men’s basketball tournament, which began Tuesday with the First Four. The AGA found that $8.5 billion will be bet during the tourney, shared by legal and illegal sportsbooks. Legal sports betting continues to expand, but this report found that offshore operations and local bookies will still attract more action than regulated sportsbooks. 

The general legality of such gambling continues to be a prominent issue this time of year as many people view office pools as harmless fun. Unfortunately, it’s anything but and its almost always illegal gambling. ESPN explains:

“Generally, if the office pool charges a fee for entering the pool and awards prizes to the winner(s), then there is a serious question as to its legality. Some states exempt small pools from their gambling laws and regulations,” said Washington, D.C.-based attorney Steven Eichorn of Ifrah Law.

Sports betting is currently legal in only a handful of states, with Nevada the only state permitted to offer single-game wagering, the most popular form. The Nevada Gaming Control Board does not track the amount bet on the NCAA tournament separately, and combines the NBA and college basketball into one “basketball” category on its monthly revenue reports. The spike in action from March Madness is easy to see, though.

In terms of cost to employers, the Charlotte Observer points to a Chicago-based study which says as much as $1.7 billion will be lost by employers in productivity, which breaks down to $109 million lost for every 10 minutes spent following the tournament. They believe there will be over 37 million workers participating in pools with 1.5 million watching games and results online from their desks. ESPN recently quantify the financial impact of just the gambling:

 On the low end, the FBI estimated in 2013 that $2.6 billion was bet illegally on the tournament. On the high end, veteran bookmakers estimate the number to be anywhere from $12 billion to $26 billion. Friendly bracket pools are everywhere, with most everyone betting on the NCAA tournament in some form. But there are bets, and then there are bets. You don’t get to $26 billion with $20-per-sheet office pools.

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FTC and Others Investigating the Dangers of Loot Boxes in Video Games and their Gambling Impact

Casino Watch Focus has reported on the ongoing happenings of loot boxes, a video game mechanic that most view as a form of gambling that prays on children. Various local and international agencies have taken the threat seriously and have started seriously looking into the dangers of loot boxes and their link to gambling. Most recently, 16 countries signed an agreement to study loot boxes as more and more evidence draws links between loot boxes and problem gambling. As an online source reports, the FTC is joining in those that have expressed serious concern with their own investigations:

Federal Trade Commission chairman Joe Simons announced Tuesday that the agency would be investigating the use of micro-transactions, commonly referred to as loot boxes, in video games. According to NBC, there has been growing concern around the use of these loot boxes, which some view as a form of gambling designed to be addictive that is marketed to children.

Earlier this year, Senator Maggie Hassan of New Jersey sent a letter to the Entertainment and Software Ratings Board (ESRB) president to request that she re-evaluate how the board rates games with loot boxes, according to the popular gaming news platform Polygon.

“The prevalence of in-game micro-transactions, often referred to as ‘loot boxes,’ raises several concerns surrounding the use of psychological principles and enticing mechanics that closely mirror those often found in casinos and games of chance,” Hassan wrote in her letter.

Researchers looking into the issue have found signs of addictive behavior and problem gambling among gamers who spend money on loot boxes. One study published in the /Public Library of Science/ which surveyed 7,000 gamers found that “the gambling-like features of loot boxes are specifically responsible for the observed relationship between problem gambling and spending on loot boxes.” They therefore concluded that “there may be good reason to regulate loot boxes in games.”

Across the pond, similar investigations are happening in the UK as the criticisms of look boxes grow, particularly as some of the most popular video games in the industry are adopting these predatory gaming mechanics. The Guardian reports: 

A House of Commons committee has announced plans to investigate the growth of “immersive and addictive technologies”, to advise the government on how to create policy and regulation that can protect the public from the negative effects of digitisation and “gamification”.

It follows a growing campaign against deliberately addictive mechanics in technology and video games, particularly the crossover with gambling represented by “loot boxes” – randomised rewards sold in games for real money.

The links between gaming and gambling is one of the key points to be investigated by the committee, which will ask: “What are the effects of in-game spending, especially on children, and does it need stronger monitoring or regulation?”

Games such as Fifa, Overwatch and Call of Duty have been criticised for the practice, which has led to reports of primary school-age children spending almost £500 on Fifa players and getting into the habit of spending £15 a week on pseudo-gambling. 

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