Month: November 2021

The proposed code, which was drafted in August but published this week, covers advertising through electronic media, comprising television, radio, internet services, fax transmissions, social media, computer games, electronic billboards and cinemas.

It also applies to print media, namely newspapers, magazines, brochures, leaflets, circulars, mailings, posters, printed billboards, displays on buildings and vehicles.

For electronic media, there will be a gambling advertising ‘blackout’ between 6AM and 9PM, covering both television and radio. An exception will be made for ads on dedicated sports channels and stations, however.

It states all advertising must comply not only with the provisions of the 2003 and 2019 laws, but also those set out in the 2015 Cybercrimes Act, the 2016 Media Service Act and the 2018 Electronic and Postal Communications Regulations.

Advertising, according to the code, must not be false, misleading or deceptive, feature minors, or encourage criminal activity. Licensees must also avoid suggesting that winning is guaranteed, that gambling is a way to improve an individual’s finances, while credit, vouchers, or rewards as an inducement to gamble are prohibited.

There is an exception for loyalty programmes, though operators are only permitted to promote the name of the programme and the associated terms and conditions.

In addition, all advertising must carry a safer gambling message, either read out or featured on-screen, alongside the number for the board’s problem gambling helpline. For print ads, the safer gambling message must account for 10% of the ad space.

The code will apply to all operators, the board noted.

“It is duty-bound upon all gaming operators to adhere to this advertising code of practice with a view to keeping in hold the sustainability of the existing business, addressing the emerging challenges and promoting the gaming industry while embracing responsible gaming,” it noted.

Once approved by the Tanzania Gaming Board’s directors, the code will come into force.

Gambling advertisements are already subject to measures set out in the 2003 Gaming Act, with additional measures introduced in the Written Laws (Miscellaneous Amendments) Act of 2019.

However, the Tanzania Gaming Board said that if gambling ads were not subject to specific controls, the country may miss out on social and economic benefits of gambling.

“It is therefore intention of the board to ensure that the gaming adverts are properly regulated in order to achieve social and economic benefits accruing from gaming activities,” it said.

The board added that there was little specific detail in the measures outlined in the two acts, meaning that until legislation was passed, a code of conduct could be applied to ensure vulnerable groups were protected and legal providers were properly promoted.

In July, Tanzania lowered its casino tax from 20% to 15% in an amendment to its Gaming Act.

The regulator has launched a consultation outlining a series of planned changes to its policies related to risk assessments, licensing, carrying out compliance activities, as well as regulatory and criminal enforcement.

Running until 9 February next year, the consultation seeks to gather opinion from gambling operators, trade associations, charities, financial institutions and other stakeholders, as well as the general public, about the new proposals.

In the consultation document, it outlines a number of changes for enforcement activity, admitting that regulatory settlements are only agreed at a late stage in the investigation process. It said these agreements can only be made when the licensee involved in transparent, and readily offers up relevant information. This will see an addition to the Licensing, Compliance, and Enforcement Policy, stating that offers for settlements should be put forward early in the investigation process.

For financial penalties, the regulator has proposed asking the licensee for financial information, to assess the level of fine that is appropriate, which not only takes into account the business’ financial probity, but also that of its owner or parent company. Should a business fail to provide this information, the Commission will infer that it has the available funds.

It also clarifies that licensees will have grounds to challenge interim suspensions at a regulatory panel of commissioners. This would have to be convened as soon as possible, the update adds.

Special measures, which can be applied when a licensee is found to be deficient in a compliance assessment, will be required to submit an urgent action plan to rectify the failings. As part of this process it may be required to divest any financial benefits from the failings.

Should this meet the regulator’s standards, it would not proceed with a review of the business’ licence.

The Commission also said it has been working on its regulatory approach to products relating to stocks, shares, indexes or investments. It believes they should be regulated by the Financial Conduct Authority (FCA), but added that this is unlikely to happen before the current Gambling Act Review. As such it proposes no longer issuing licences to businesses offering such products.

“Products which are or may also fall to be regulated by other regulators, for example under the Financial Services and Markets Act 2000, create the risk of uncertainty as to where the regulatory responsibility may lie, so risking harm to the second and third licensing objectives,” the Commission explained.

Other proposals include clarifications to licensing criteria, and giving the regulator the power to reject incomplete applications.

The Commission also clarified the changes for which licensees must update the regulator, including changes to ownership or control, the submission of timely regulatory returns, and variation applications if a business is likely to exceed the fee category limit of its licence type.

In addition, it aims to begin carrying out remote compliance assessments if and when necessary.

The casino will be managed by the Mashantucket Pequot Tribal Nation, who also own and operate the Foxwoods Resort Casino in Mashantucket, Connecticut.

Foxwoods El San Juan will be open daily through mid-December, with provisional plans in place to remain open 24/7 in the future if novel coronavirus (Covid-19) protocols allow.

“Today is a landmark milestone for the Mashantucket Pequot Tribal Nation as we expand the Foxwoods Resort Casino brand – for the first time ever – to the Caribbean,” Mashantucket Pequot Tribal Nation chairman Rodney Butler said

“We’re honoured to bring real economic value and tourism to the region – including an estimated economic impact of $22 million – with the launch of Foxwoods El San Juan Casino and remain a committed partner as we help build a bright future for the island. We thank our partners at LionGrove and Fairmont El San Juan for making this happen.”

Puerto Rico governor Pedro Pierlusi added the new casino will have a positive impact on the local economy and community.

“This past January, we made the historic announcement that this iconic casino would reopen its doors. After a lot of work, today I am pleased to be present to formalize the opening of Foxwoods El San Juan Casino,” Pierlusi said.

“With Foxwoods El San Juan Casino’s capital investment of $12.5m, the casino will positively impact our economy and create over 150 direct jobs,” Pierlusi continued. “I remain committed to the economic development of our Island, through efforts like Foxwoods El San Juan Casino, to boost tourism growth and investment in Puerto Rico.”

Puerto Rico is working through a process to expand its gaming industry, with sports betting regulations under development since 2020. This has already seen BetMGM position itself for market entry, through a partnership with Casino del Mar at La Concha Resort.

The state now plans to take its first bets within the coming two months.

Penn National’s Hollywood Casino in Perryville; Caesars Entertainment’s Horseshoe Casino in Baltimore; Cordish Companies’ Live! Casino & Hotel in Hanover; the MGM National Harbor in Oxon Hill and Churchill Downs’ Ocean Downs Casino in Berlin all secured licences.

The MLGCC previously cleared the quintet to receive licenses earlier this year.

After the SWARC awarded the licences at a meeting yesterday (November 18), the MLGCC voted unanimously to delegate staff the authority to issue sports wagering licences to each facility once all procedural requirements have been completed.

Read the full story on iGB North America.

Gross revenue across online casino and sportsbooks climbed 6.3% month-over-month to $134.0m, according to new Michigan Gaming Control Board figures. This comprised $109.7m from tribal and commercial igaming, beating the record set in September 2021, and $24.3m from online betting.

After adjustments for free-play incentives awarded to players, however, revenue across both verticals was slightly lower, at $103.6m. This still marked a 92.3% improvement on September.

Looking at online sports betting, the $463.3m handle represented a 30.8%  rise from September’s $359.5m. Net revenue of $4.7m was significantly higher, after adjustments whittled the prior month’s figure to just $17,399.

Read the full story on iGB North America.

The new, unsolicited and non-binding proposal values Crown at approximately AUD$8.46bn (£4.57bn/€5.43bn/US$6.16), and would see Blackstone pay $12.50 in cash per each Crown share.

Blackstone currently holds a 9.99% stake in Crown, and its offer comes after two previous proposals to acquire the operator outright were rejected.

In March Blackstone put forward a proposal of $11.85 cash per share, and later increased this to $12.35, but this was turned down by Crown, saying the offer undervalued its business.

The latest proposal is subject to a number of conditions, including Blackstone conducting due diligence on Crown, as well as Blackstone receiving final approval from its investment committees for the offer.It also requires backing from Crown’s board to proceed.

Blackstone has proposed an implementation agreement, which sets out terms and conditions such as the necessary approvals from relevant courts and gambling regulators.

Conditions also relate to ongoing regulatory cases involving Crown in both Victoria and New South Wales, which were also present in Blackstone’s original proposal.

Last month, Crown was deemed “unsuitable” to run a casino in Victoria after it was found to have engaged in conduct that was “illegal, dishonest, unethical and exploitative”, but will not immediately lose its licence and instead face special measures in the state

Crown in February was also found to be unsuitable to operate a casino in the Barangaroo area of central Sydney after the New South Wales Casino Inquiry (Bergin Inquiry) found evidence that its facilities and accounts were used for money laundering. However, it may still be able to operate casino if it makes certain changes, including compliance and financial audits and an end to its dealings with junkets.

Blackstone proposed that should Victoria opt to cancel Crown’s licence before the second court hearing in relation to the acquisition, or Crown is halted from conducting gaming operations at its existing Crown Sydney site in New South Wales, this could lead to the deal being cancelled.

It would also have grounds to pull out of the deal should any government or governmental entity, authority, agency, commission, corporation or body take action against Crown by way of licence cancellation or suspension.

Similarly, Blackstone said any recommendations made in the Bergin Inquiry that would otherwise impact Crown’s gaming operations in any state in Australia be fully applied.

Crown’s board has not yet formed a view on the proposal and will now assess the offer. The operator added that its shareholders do not need to take any action at this stage, saying there is no certainty that the proposal will result in a transaction.

Blackstone is not the only interested party to have submitted a takeover proposal to Crown in recent months. Rival operator Star Entertainment Group in May proposed merging with Crown to create a combined operation worth approximately $12.00bn.

Crown requested further details before Star withdrew its proposal in June, citing concerns over ongoing regulatory processes with Crown in Victoria.

Meanwhile, alternative investment management business Oaktree Capital Management in April put forward a proposal to provide up to $3.00bn in funding for a share buy-back programme. It later increased this to $3.1bn.

Shares in Crown Resorts were trading up 1.60 at AUD$95.00 per share in Sydney earlier today (19 November).

The deal will see DraftKings named as the official daily fantasy sports partner of the National Hockey League franchise, and its Boston’s TD Garden Arena, as well as the exclusive sponsor of the Boston Bruins’ 50/50 charity raffle.

In addition, DraftKings will become an official sports betting partner of the Boston Bruins and TD Garden if sports betting becomes legal in Massachusetts.

Read the full story on iGB North America.

The partnership makes Caesars one of the official sports betting partners of the New York Knicks, New York Rangers, as well as an official partner of the Madison Square Garden Arena and MSG Networks.

The announcement comes in the wake of Caesars Sportsbook being selected as one of the nine recipients of mobile betting licenses in the state by the New York Gaming Commission.

Read the full story on iGB North America.

House Bill 2638, which was signed into law by Governor Jay Inslee in March 2020, legalized in-person sports betting at Class III gaming facilities in Washington state. Nine tribal casinos were then given the go-ahead to offer betting in September, after amendments to their gaming compacts with the state were ratified.

The terms of HB2638 stated the WSGC had to conduct an investigation into the market’s future prospects by December 1 2021, with the project outsourced to Washington State University (WSU).

Read the full story on iGB North America.

The noise around diversity and inclusion initiatives may have been growing as the sector moves towards more sustainable models, aimed at ensuring its longevity in the face of intensifying regulatory pressures.

But according to newly appointed Gamomat joint managing director Dr. Alexandra Krone, more action and less talk is still needed on this front.

“For me, it’s about tangible projects and initiatives and not just expressions of intent.”

“There’s nothing holding companies back from setting themselves ambitious strategic goals to ensure the equal allocation of managerial roles to both men and women.”

Krone comes into her new role with 15 years of management experience behind her as a head of human resources and managing director at mid-sized companies.

“Coupled with my professional background as an organisational psychologist, I feel I’ve been well prepared for both my previous roles and my new position at the company,” she says

Krone however admits that her own ambitious goals coming into her new role could be threatened by external factors beyond her control.

“As we continue to grow, our greatest challenge will be preserving this cultural identity,” explains Krone. “For example, to make our strategic goals a reality.”

“This is not a simple task given the current skills shortage.”

Diversity and inclusion

As for Gamomat’s own progress on diversity and inclusion, it has done better than its peers in terms of incorporating diversity into the company infrastructure, according to Kroine.

“Diversity is already embedded in our core values, and is therefore a crucial part of our employer brand: we see it as an asset,” she says.

“The Gamomat team is already very diverse with regard to all the potential facets of an individual. This isn’t a coincidence; it’s the result of very targeted, professional recruiting.”

But in the wider industry, Krone recognises that obstacles can exist for women that aren’t unique to gambling.

”At least with regard to the key industrial countries, many come to the superficial conclusion that both men and women have the same opportunities because they have the same rights,” continues Krone.

“But if you take a slightly different view, you quickly see that this isn’t true – because there are a lot of structural barriers blocking womens’ paths to managerial roles.”

These obstacles don’t just hurt women. Along with considering the gender pay gap and the inequalities in employment opportunities, Krone sees how both men and women are stereotyped as a serious obstacle to success as a whole.

“In Germany in particular, the current situation isn’t great: around 80% of DAX-listed company board members, approximately 70% of parliament and around 75% of secondary school teachers are male,” Krone explains.

“These numbers speak for themselves: there’s clearly lots more work to do.”

Supporting women’s participation

It’s clear that women require further representation and further support in the gambling industry, particularly in executive roles. Women may need more support to be available before considering executive roles, particularly in the areas of maternity leave and childcare.

Further, with females having disproportionately borne the burden of household tasks and family care during the novel coronavirus (Covid-19) pandemic, Krone sees overcoming these barriers and setbacks as necessitating an all-encompassing effort, rather than being left to women alone.

“I think, first and foremost, it’s the existing decision-makers within companies – who are mostly men – who need to exert their influence and make visible efforts to remove these structural barriers and break down old stereotypes,” muses Krone.

“I think it’s a false assumption that the solution lies solely in the hands of women,” she says