Regulations from iGaming and Land-Based industry- Global Recap for February 2021

Continuing the trends from previous months, numerous states in the US welcomed online sports betting or other forms of gambling during February. Those who still haven’t are actively taking steps to introduce this activity to its entertainment scene.

Would you like to take a closer look at the iGaming scene of Europe? Curious to find out what happened in Asia during the second month of the year?

Keep reading!

Recaps from the USA

Let’s start with Massachusetts, where Senator Brian Crighton presented legislation to approve retail and online sports betting in the state. According to the bill, SB177, OTBs, racetracks, and casinos licensed in the state would be permitted to offer these services. If passed, the bill would impose a 15% tax on the gross win on all sports wagering activity. Bets on in-state college sports events would not be allowed.

In Kentucky…

… Governor Andy Beshear signed the legislation to clarify the position of historical horserace wagering into law. It now holds legal status in the state. BetMGM launched its second online casino platform, Borgata Casino, in Pennsylvania on 24 February 2021.

Meanwhile, in Wyoming, legislators filed a bill to greenlight and regulate sports wagering on the Internet in the state. As per the bill HB133, this activity would be allowed on professional, collegiate, and esports events. Also, Illinois legislators introduced a bill to authorize and regulate online gaming in the state. The Internet Gaming Act (HB3142) would permit the state’s land-based facilities and racetracks to offer online casino games via three skins at the tax rate of 12% of the gross win.

In Vermont…

…Senate was presented the legislation to approve and regulate sports wagering. According to bill SB77, retail sports betting via the state lottery and online via six commercial operators would be permitted. Connecticut’s Governor Ned Lamont included projections for legalized sports betting and online gaming in his FY2022/23 budget.

As for North Dakota, representative Jim Kasper introduced legislation to legalize online poker in the state. If passed by the legislature, HB3012 would put the question of whether to allow online poker on the 2022 general election ballot.

Which changes took place in Minnesota?

Legislators announced a bill to authorize and regulate sports betting in the state. The proposal would permit retail wagering at tribal casinos in the state for the first year before expanding thereafter to allow retail betting at racetracks as well as online betting. As far as written in the bill, a tax of 6% on the gross win for retail betting and 8% of the gross win for online would be imposed. Also, the customers would have to register online betting accounts in person at a brick-and-mortar sports wagering facility.

In Oklahoma…

… the Oklahoma Supreme Court ruled against the legality of compacts agreed between State Governor Kevin Stitt and Oklahoma Tribes for the second time. As far as the ruling says, the compacts agreed between the Governor and The United Keetoowah Band of Cherokee Indians and Kialegee Tribal Town tribes in July 2020 were unconstitutional.

Alabama’s representative John Rogers introduced legislation to authorize retail and online sports betting. According to the bill, HB 161, seven licenses would be allowed, as well as tax at a rate of 10% on the gross win from sports wagering. Both professional and collegiate sports would be permitted.

How busy was the state of Michigan?

The state’s online casino and sports betting market officially launched on 22 January 2021 with eight online casino platforms and ten online sports betting platforms going live. Among the operators who launched their platforms were Barstool, BetMGM, BetRivers, DraftKings, FanDuel, Golden Nugget, PointsBet, TwinSpires, William Hill, and WynnBet.

Also, PokerStars launched its online poker platform in Michigan on 29 January 2021, while FoxBet rolled out its online sports betting platform the same day. Barstool presented its web casino platform in the state on 01 February 2021.

Georgia’s Senator Brandon Beach …

…introduced legislation to permit pari-mutuel betting on horseraces in the state via a statewide referendum. The bill would allow for the development of three racetracks in the state which would be permitted to offer pari-mutuel betting.

In Virginia, DraftKings launched the state’s second online sportsbook on 25 January 2021, while BetMGM presented its web-based sportsbook two days later. Furthermore, William Hill opened its online sportsbook on 03 February 2021.

Also, the Lottery Board granted initial approval to regulations to govern casinos in four locations approved in the November 2020 referendum. The provisional regulations were approved to allow potential casino operators to assess the requirements before the licensing process opens in April 2021.

Any changes in Arizona?

Senator Sonny Borrelli and Representative Steve Pierce reintroduced legislation to authorize Indian tribes to operate retail sports betting in casinos on premises that hold alcohol or private club license. Governor Doug Ducey later agreed on that, but also requested the legislature pass legislation to permit online sports wagering in the state as well as allow DFS games and keno.

On top of that…

…Representative Jeff Weninger introduced legislation to remit sports betting via tribal casinos and major league sports organizations in the state. As per the bill, HB2772, retail and online wagering as well as daily fantasy sports games through the state’s 24 tribal casinos would be authorized. Also, 10 licenses would be awarded to major league sports organizations including the Phoenix Raceway, Arizona Cardinals NFL team, and Phoenix Coyotes NHL team.

Retrospective of Regulations from Asia

The Government of Thailand issued a warning to ISP’s to state they must block access to over 1,200 blacklisted gambling sites within 15 days or face legal action. Also, Prime Minister General Prayut Chan-o-cha announced he would consider the legalization of gambling in order to assist the economic recovery from the current health crisis.

Meanwhile in China…

…the Government introduced an amnesty period for citizens involved in the organization or facilitation of cross-border gambling-related activities. Those involved in illegal gambling activities were encouraged to come forward and provide information in return for reduced punishment.

Then, the House of Representatives in the Philippines passed legislation to impose a 5 % tax on the gross gaming receipts of POGO. The bill progressed to the Senate for consideration. Finally, in Japan, the Government confirmed it would not impose a withholding tax on the casino winnings of foreign visitors.

Highlights from Europe

Ukraine’s Commission for the Regulation of Gambling and Lotteries (KRAIL) approved the country’s first online gambling license under the new regulatory regime. The license was awarded to Spaceiks, a local online gaming provider that operates the Cosmolot brand. However, the Government is still required to pass the necessary taxation legislation before the country’s new gambling market can launch.

Svenska Spel launched a new online sports betting platform in partnership with DraftKings on 02 February 2021.

As for the Netherlands…

… the Government announced a further one-month delay to the enforcement date of the Remote Gambling Act to 01 April 2021 and, consequently, an extension of the launch of the online market to 01 October 2021.

Also, the Remote Gaming Act implementation regulations were finalized with a number of amendments. Those changes include bans on:

• gambling companies using sports teams in advertisements;
• offering timed bonuses
• offering bets on football games in u-21 sports leagues and events in the third division, or below

Which regulatory changes took place in Austria?

The Ministry of Finance announced it would introduce new legislation by the end of April 2021 to overhaul the current gambling regulatory framework in the country.

The legislation would establish a new, independent gambling regulator to enforce regulations and govern licensing. Also, the regulator would develop a new national omnichannel self-exclusion register. Moreover, the legislation will include measures to introduce stake and time limits on online gaming machines and raise the tax on gambling operators.

Further measures were announced which included the establishment of a blacklist for unlicensed operators and powers to order ISPs to block any site listed.

Recap of Changes in the United Kingdom and Ireland

Let’s start with the UK, where the DCMS launched a consultation to gather opinions on its proposals to increase the annual license fees for the remote casino, betting, and bingo operators as well as all gambling software suppliers by 55% from 01 October 2021. Additionally, the DCMS proposed to remove the 5% discount for combined remote and non-remote operating licenses from 01 October 2021. The proposals would also increase the annual license fees for non-remote operators by 15% from 01 April 2022.

Also, The Gambling Commission announced a range of new restrictions for online slot games, which include bans on:

• features that speed up play or give the illusion of control over the outcome
• slot spin speeds faster than 2.5 seconds
• auto-play - which can lead to players losing track of their play
• sounds or imagery which give the illusion of a win when the return is, in fact, equal to, or below, a stake;

In addition to this…

…the Commission introduced a ban on reverse withdrawals for all online gambling. Operators will be required to display total loss or win during any slot play session. They must ensure they adhere to the new regulations by 31 October 2021.

Also, the BGC published new rules to prohibit sports teams from including links to gambling websites or “calls to action” on non-promoted social media posts.

Finally, in Ireland, legislators introduced a bill to prohibit all forms of gambling advertisement with the exception of sponsorship. The Gambling Prohibition of Advertising Bill 2021 was introduced by the Labour Party which stated the intention of the bill was to help address the national problem of gambling addiction.

Source:

"H2 Gambling Capital", February 2021