December 2016 Infinity Gaming Magazine

InfinityGaming www.gaming-awards.com | ISSUE DECEMBER 2016

RALPH TOPPING PRESIDENT TRUMP

NEWS VIEWS COMMENT

What does it means for online gambling in the US

GAMING + ARTICLES + BUSINESS+ GLOBAL+ ONLINE + NEWS

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DECEMBER 2016

15 ESPORTS WH get in on major new market

23 12

PRESIDENT TRUMP The future for online gambling

08 INTERNATIONAL GAMING AWARDS Judges making their final votes

Opinion Disclaimer: The views and opinions expressed in all external articles are those of the authors and do not necessarily reflect the official policy or position of The Infinity Gaming Magazine Any content provided by our feature writers or authors are of their opinion, and are not intended to malign any religion, ethic group, club, organization, company, individual or anyone or anything.

INFINITY GAMING

DECEMBER 2016

4 EDITOR NOTES Lana welcomes you to the November edition of Infinity Gaming Magazine.

6 OUR WRITERS Meet our feature writers, the superb writers on our rosta.

08 THE IGA JUDGES Final votes made

12 WHAT’S IN A NAME

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Teresa Tunstall article

15 ESPORTS Exciting new market for WH

END GAME FOR FANTASY SPORTS Professor Nelson Rose

23 TRUMP FACTOR Good or bad for online gambling in US

WHAT’S IN A NAME? Teresa Tunstall

28 END GAME Professor Nelson Rose article

37 GENTING STAR CITY Flagship casino to close

+ ALL THE LATEST NEWS & Opinions

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DECEMBER 2016

A note from the editor CONTACT US Clever Duck Media Centrix@Keys Keys Park Road Staffordshire WS12 2HA UK Tel: +44(0)1543 478 889 PRODUCTION Clever Duck Media Centrix@Keys Keys Park Road Staffordshire WS12 2HA UK

The finalists are soon to be announced!

PUBLISHING Infinity Gaming Magazine is operated by © Clever Duck Media Ltd ®

Lana Thompson - Editor

Welcome to the December edition of the Infinity Gaming Magazine and a busy time for all, but a MUST READ EDITION Welcome to the latest edition of In-

once great flagship casino by Genting.

finity Gaming Magazine and what a month that has gone by, not

Not long to go now for the 10th Inter-

least the result of the next Presi-

national Gaming Awards and if you not

dent of the US being named Trump!

booked your table you better hurry last year we sold out in December.

What that will mean for onine gambling

Enjoy the magazine.

Apart from that amazing result we have So, “To Infinity and Beyond!”

Professor Nelson Rose.

Regards, As I indeed write this article our wonLana

votes for the extra special 10th Annual Awards and we will be announcing all the finalists in a special edition coming soon.

Not only that but with great news inside on Esports and William Hill and our exclusive news on the closing of a

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Business Partnerships Svetlana@gaming-awards.com Marketing & Advertising claire@cleverduckmedia.com

media@cleverduckmedia.com

edition.

derful IGA Judges are finalising their

Sponsorship Opportunities Colin@cleverduckmedia.com

Editorial Content & PR

is reviewed and digested inside this

more superb articles from Teresa and

Company Reg. No. 687 1018 (Registered in England) V.A.T reg. no 972 6372 91

The Editor

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DECEMBER 2016

Infinity Gaming Magazine Contributing Writers A magazine is only as good as the content inside and with some of the leading specialists within the gaming industry. With specialised articles covering customer service, the gaming law, new prducts, technology and current affairs with the sector the Infinity Gaming Magazine is delighted to showcase our superb line-up of contributing writers.

Christina Thakor-Rankin - Gaming Consultant Christina is Principal Consultant at 1710 Gaming Ltd, a specialist betting and gaming consultancy, delivering a range of services including licensing and compliance (incl. regulation, money laundering and social responsibility), business start-up, training and strategic reengineering, project management, research, business analysis and development, to start-ups and established multi-national operators and providers, gambling regu-

lators, law enforcement and government agencies, media, and specialist interest groups and associations within the sector, in both established and emerging markets across the world.

www.1710gaming.com

Teresa Tunstall – Independent Gaming Consultant After many years of working in casinos in the UK and on USA ships as a croupier and inspector, Teresa turned from ‘poacher to gamekeeper,’ spending 16 years with GamCare, who offer help and support to those who develop problems with their gambling.

Teresa now works independently consulting on all issues relating to Social Responsibility and Problem Gambling.

Working closely with the betting and gaming industry, She developed strong links delivering Social Responsibility and Problem Gambling training around the world, from Antigua to Moscow, and Auditing in the UK.

To contact Teresa regarding consulting please email: Teresatunstall1@gmail.com

Paul Swaddle - CEO Pocket App A self-confessed ‘gadget geek, Paul Swaddle has been working at the leading edge of mobile technology for the past 15 years. He co-founded Pocket App in 2011 to bring the creative and technical development elements of mobile technology together under one roof.

This unique approach continues to differentiate Pocket App in today’s increasingly competitive landscape.

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Working across a range of communications disciplines such as acquisition, loyalty, retention and customer development, Paul understands the importance of a strategic and coordinated marketing approach, particularly between on and off-line communications. In the past decade he has enabled brands as diverse as Kellogg’s Fruit Winders, Barclays and Loaded magazine to get the best out of mobile.

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DECEMBER 2016

MEET THE IGA10 JUDGES 01

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Christina Thakor-Rankin Gaming Consultant

Desmond Lam Ph.D - Associate Professor of Marketing at the University of Macau

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Gavin Isaacs - Vice Chairman of the Board at Scientific Games Corporation

Gemma Strath - Group Head of Marketing at Betfred

Isabelle Andres - Chief Executive Officer of the BetClic Everest Group

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Janet Viippola - Gaming Consultant

DECEMBER 2016

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07

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Liz Karter - Specialist in Gambling Addiction in Women

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Marek Milewski- Operations Manager Casinos Poland

Mor Weizer - CEO Play-

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tech

Paul Armitage - Operations Director Grosvenor Casinos

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Onika Russell - Head of Gambling , Airlines & Travel Strategic Services, PayPal

Paul Swaddle - Founder and Chairman Pocket App

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DECEMBER 2016

MEET THE IGA10 JUDGES 13

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Peter Hoetzinger - CoCEO & President, Vice Chairman Century Casinos

Prof. Dietmar Hoscher Deputy Chariman of the Supervisory Board of Casinos Austria

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Professor I. Nelson RoseSpeaker & Gaming Law expert

Richard Noble – Chief Operating Officer of the Aspers Group

Roger Marris – CEO at The Ritz Club

Roger Raatgever – CEO Microgaming

DECEMBER 2016

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Sebastiรกn Salat - CEO

Zitro

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Stella Dalton - Head of Business Development at GamCare

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20 HAPP

Sim Bialk - CMO SUZO-

22 Stephanie Cheung - Chief Legal Officer at Melco Crown Entertainment

Tristan Sjoberg -Executive Chairman at TCS John Huxley

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DECEMBER 2016

What’s in a name a play on words?

Problem gambling – Social Responsibility – Harm related gambling – Harm Minimisation

By Teresa Tunstall

H

ow titles and names have changed throughout the years as recognition of gambling issues evolve spreading their message across the industry.

What does changing a name, playing with words particularly in the area of problem gambling achieve, should the title describe the subject content matter referred to inside, should this be simple, straight forward and to the point not however, to the extreme so that players are reluctant and too embarrassed to pick them up.

The true gauge is how much of a disturbing impact gambling is on their life, where their head is at, a bad losing streak or the bank is about to repossess the house.

Responsible Gambling Trust have recently changed their name to Gamble Aware, their new conference is titled, ‘Harm Minimisation,’ what should be taken into account is if a person seeking knowledge, help or support for excessive gambling which wording would immediately give them a guidance of contents for help and control be it leaflets or posters.

When names and titles are changed its imperative that help for problem

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gambling is contained to give those that require it find immediate help and support in the contents.

There is the continue issue of avoiding the, ‘wallpaper syndrome,’ where leaflets and posters can and do fall into ‘I’ve read it all before,’ category the industry should be prepared for smaller print runs allowing regular changes and updating.

Changing colours and design to create interest for inquisitive players pick up in casino’s, betting shops, bingo etc., is what every good Market-

ing company would advise for all land based and Remote gambling Operators to make their Responsible Gambling information as attractive to view as the gambling facilities they offer.

As Regulation increases and requirements change leaflet content should now explain and encourage the advantages of multi self-exclusion for the player along with encouraging those who would benefit to take Time Out from their online gambling and the final step to source and accept professional help.

DECEMBER 2016

When I joined in the early days of GamCare, that particular month they had run out of money, unable to pay staff wages, an urgent call was made to the relevant Government body, who in-turn called all the big UK Operators from every sector of gambling and betting to inform of them of how scandaious it would be if the only national Helpline for problem gamblers were to close.

As a consequence Operators from all sides of gambling sent money directly to GamCare, wages were met. However, there were those outside the gaming industry making insinuations of GamCare ‘being in the lap of the betting and gambling,’ not true and not acceptable.

Through the centuries many Lords and Ladies of nobility lost their fortunes and houses to gambling.

My experience in the time I spent working in casino’s we had a regular player a gentle kind man who owned shoe shops, never leaving the casino until it closed or he ran out of money.

barred from all casinos. The player, with a need to discover what caused him to escalate into problem gambling, was later to become distinguished Psychotherapist.

One Friday afternoon he sat at my blackjack table the manger whispering in his ear there would be no more credit, he opened his brief case and pulled out wages packets for his shop staff, tore open each wage envelope pouring the cash onto the blackjack table. He looked up.

Fortunately, in what is a relatively short period of time, problem gambling was recognised in the early days first by the Gambling Board for Great Britain, later to be re-named Gambling Commission, putting the United Kingdom as the first to install Regulation that recognised and introduced help information and protection for those who succumb to a problem with their gambling.

“Why don’t you take a break have a coffee,” I implored him, he shook his head, “I can’t, I can’t.”

At that time there was no recognition of problem gambling however, his family supported by two Psychiatry Reports on his gambling behaviour, sent these out to every casino in town, overnight, the gambler was

The European Community are now looking at endorsing help and support for problem gambling be it each individual country or across Europe.

Whatever is chosen this is road is a one-way street; with no going back and proudly the UK was the first and foremost the leading light.

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GAMING NEWS

DECEMBER 2016

William Hill granted first ever eSports betting license

T

he Nevada Gaming Control Board (GCB) has approved William Hill and the Downtown Grand Hotel & Casino’s application for them to accept bets on eSports, the video gaming competitions which is currently valued at $463 million in revenues for 2016.

fastest gaming sector for the next decade.

William Hill is the first company that will offer odds and accept bets on the new upcoming craze of professional players in many cases playing against each other in video games and now gamblers can bet on who will win.

Nevada Governor Brian Sandoval said of the new licensing, “This announcement is a major step toward ensuring Nevada becomes the e-sports capital of the world,” Sandoval said in a statement. “By embracing this unique opportunity and incorporating innovation and technology into our gaming industry, we’re expanding the potential of one of our oldest industries.”

Projections of the growth of eSports has the sector generating revenues of over $1 billion by 2019 and is seen as the

Sands expansion in Pennsylvania nothing to do with online gambling fail As Pennsylvania stall with online gambling and hopes for 2017 introduction starting all over again has supporters feeling pessimistic, Sheldon Adelson and his Sands Bethlehem casino resort in the state has announced it is expanded with a $90 million investment creating more jobs for the state.

why would he spend so much?

The project will expand the gaming floor and leisure areas by almost 100,000 square feet with 1,000 new gaming seats along with new restaurants and improved back of house facilities. The details of the expansion were announced shortly after the US Presidential elections with conspiracy theorists saying that Adelson knows Pennsylvania will never in the mid-term have online gambling or

Sands actually points out that the expansion is too do also with the vote in New Jersey to stop the expansion of casinos to the north of the state which could have impacted on Sands Bethlehem business. With that threat now gone the company feels it is time to expand their business in Pennsylvania further.

However the CEO of Sands Bethlehem Mark Juliano says that the resort is above capacity and at weekends players cannot find a seat to play, there’s a need to add space to handle the demand.

INFINITY GAMING

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DECEMBER 2016

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The Ritz Club 150 Piccadilly, London W1J 9BS +44 (0)20 7499 1818 www.theritzclub.com @TheRitzClub

GAMING NEWS

DECEMBER 2016

Brazil readies itself to introduce gambling after 70 year break

B

razil is moving ever closer to reversing a 70 year old ban on gambling when the Senate’s Special Committee on National Development approved the bill PLS 186/2014 and moved it for a vote to the country’s Senate Chamber’s floor.

Should it get approval there then casino resorts, online gambling, sports betting, bingo halls and lotteries would be all legal in a country that is the fifth largest in the world by population and it is estimated that casino resorts alone could pull in revenues of $3 billion alone.

With Brazil having a $5.5 billion black hole in its finances for 2016 the need to generate new tax revenues is great and for the first time in 70 years gambling could be coming to the country.

However with the economy suffering in recent times with a fall in the price of oil and exports declining the possible introduction of gambling is hoped to generate tourism and

help grow a once major economic powerhouse in the the 1990’s to 2010 which has fallen on difficult times.

Japanese gambling market worth $20 billion Should Japan ever decide to legalise casino resorts then the market would be worth around $7 billion to the maximum $20 billion a year says investment bank Morgan Stanley.

The firm says in its latest report on Japan that it is also unlikely that any law allowing for casino resorts to be built will pass this year as there is very little time left in countries parliament or “Diet” with the last session this year finishing on the 30th November.

In a note to investors Morgan Stanley said, “First, the current session which ends in end-November does not leave much time for it to pass in both houses, although it is possible that the session may be extended for two to three weeks in December.

“Second, after [the] LDP pushed through the TPP [Trans-Pacific Partnership free trade agreement] without consensus, it is unlikely to do this with the casino IR [integrated resorts] … bill. Finally, uncertainty following the U.S. Presidential election could divert attention away from the bill.”

The valuation of the market there is somewhat smaller that industry estimates of $40 billion and could have an impact on how much operators would spend in the country if and when the government legalise gambling.

Also it is expected that an entrance fee will be charged for all local gamblers in an effort to discourage gambling and social issues.

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GAMING NEWS

DECEMBER 2016

Political insider shows us the future for online gambling in the US

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ollowing the iGaming Post’s article on Donald Trump having a negative effect towards online gambling in the US following his Presidential campaign win over Hilary Clinton many other news sites have released their own versions of the article leaning towards the very same conclusion.

However since the article was released we have been contacted by a political insider who has worked on internet gaming legislation previously in the US, the contact has given us an amazing insight into the political workings of preparing and negotiating bills to present to House and Senate members.

But the most interesting part of our discussions were the tactical positioning of politicians and lobbyists against online gambling expansion in the US both past and what to expect in the future.

What should online gambling in the US expect from the new administration?

Many poker players feel that a Donald Trump administration will be a good thing for online poker expanding in the US further than the current three states that offer legal online gambling. Yes he has owned casinos in the past and at one time built the most opulent and expensive resort being the Taj Mahal in Atlantic City, however since his

departure from the gambling sector what has happened to his former casino resorts.

First and foremost Trump is a businessman, actually not a great businessman as it goes, with one business analyst saying that Donald Trump inherited a huge fortune from his fathers’ business and now has a large fortune. Indeed Donald Trump’s businesses have filed for bankruptcy six times over an 18 year period from 1991 to 2009. Trump personally has never filed for bankruptcy.

He has found himself now with a friend in Sheldon Adelson, a very smart businessman who gave Trump a final push of campaigning in the last week with a $25 million donation to his campaign. Adelson does not do something like that without expecting some help down the road.

Every person involved with online gambling in the US knows Adelson is on a campaign to remove online gambling from the US, of what little there is so far. In fact Adelson has made it public that this is what he intended to do with all and every means possible.

So what can be done to stop or remove online gambling in the US? (continued on next page)

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Political insider shows us the future for online gambling in the US (continued)

I

t will be very hard for Adelson/Trump to remove the current three states that operate online gambling, that would take a federal level position, namely re-instating the RAWA Act and since those efforts have been tried already and failed miserably it is unlikely the same tack will again be done. However the aim by Adelson supporters would be to stop States joining the online gambling industry.

To this possible “stalking horse bills” could be sent to the Capitol to put off those states looking to join internet gambling. For instance if Pennsylvania for example wanted to introduce a new bill next year towards legalising online gambling, then a bill in Washington looking at re-instating the RAWA act or a similar piece of legislation would be placed there to worry that state. There is no point in spending time and money with a local piece of legislation if it will be superseded by a federal bill. Or a bill introduced locally opposing online gambling could do the trick with slowing or halting the other.

This process could go on for a very long time and remember online gambling is not a vote winner for any politician so it is not high up on their agenda unless encouraged to do so for a supporter or donator.

All in all the path for online gambling in the US is at a road block, unless some “white knight” as big and as powerful as Sheldon Adelson comes to their aid (which is highly unlikely), Trump will keep his promises to his supporters and friends that got him the keys to the White House, because that is how he does his business.

Online gambling in the US will stagnate and just maybe disappear hopes Adelson, but the problem is that offshore online gambling operators that do not care so much about the legalities of a country will again flourish offering a service that many Americans want but can’t legally take part in.

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GAMING NEWS

DECEMBER 2016

Baazov puts in bid to buy Amaya Gaming for almost $3.5 billion

D

avidBaazov the former CEO of Amaya Gaming has made his move for the company he used to work for by officially making an offer of $3.48 billion, which represents a 30.9% premium offer on each share.

Amaya Gaming closed at $18.34 per share and the offer from Baazov is $24 per share last week.

No comment has come from Amaya on the offer as of yet with Baazov still owning some 17.2% of the gambling firm that’s main asset is PokerStars, however Baazov wants to take the company private aided by a group of investors.

It has been nine months since Baazov indicated that he was preparing an offer for Amaya Gaming and many shareholders thought he had dropped the idea until now.

In a statement Baazov said he had already secured some $3.65 billion to fund the takeover from Head and Shoulders Global Investment Fund SPC – HS Special Event Segregated Portfolio, Goldenway Capital SPC – Special Event SP, Ferdyne Advisory Inc. and KBC Aldini Capital Ltd.

Spain online gambling industry needs reform Has Spain made a mess of their online gambling industry? Many observers involved in the sector believe that Spain is in steep decline because of the way it has handled the 2012 licensing of operators and at the same time restricting players who want to play internationally to a local market.

Many say that before Spain legalised and licensed online operators there was more money in the Spanish market than now and the government is suffering a major drop in revenues because of it.

When Spain started to license operators with a €300,000 fee for an operator license, estimates were that the government would collect between €80 and €120 million a year in taxes, which was close in year one with €101

million, however ever since the market has declined now with the government collecting just €52 million in 2015.

The error was the government taxed operators on their Gross Gaming Revenue (GGR) and with the market smaller than hoped with some operators moving out because of the license and tax regime along with only working with local players especially in online poker the government only thought of making money fast to cover national deficits.

Online poker especially needs to open its borders to not just Spanish players but internationally to increase revenues not just for online gambling companies but for increased taxes.

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GAMING NEWS

DECEMBER 2016

Dutch online gambling bill stalls on unanswered questions

W

hen the Dutch Lower House voted on and approved the new bill for online gambling it was expected to be passed into law by the end of 2016 or latest early 2017, that now seems highly unlikely.

The bill cannot be voted on by the upper house until questions over the bill have been answered by the Secretary of State and some of those questions are quite tricky.

It has been several months now since the first vote and online gamblers were hoping to be playing legally online in the coming month, but the main question to be answered is why should Dutch players actually play online with a licensed operator when they can freely play with an operator outside of the country and most likely get bigger and better bonuses and sign up offers?

After strong opposition to the government bill on taxing online poker sites at 20% of the gross gambling revenue, when land based poker was taxed at 29% of the gross

gaming revenues the government back tracked and taxed online operators 29% also. This angered the online operators as it will impact on the profits and hence them having to lower rewards for players and then players look out of the country for un-regulated operators offering better incentives.

Not just this but questions were asked why online lotteries are not included in the bill and why the tax rates for bingo games and sports betting are totally different.

However even with all these issues the bill has huge support to progress, the problem is time, with the 2016 session ending soon and with elections due in the country March 2017, there seems little time to fit a major instrument of internet gambling into law before that.

Supporters will be hoping that election results favour them and online gambling in Holland will come sooner rather than later.

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DECEMBER 2016

End Game for Daily Fantasy Sports? © Copyright 2016. Professor I Nelson Rose is recognized as one of the world’s leading authorities on gambling law and is a consultant and expert witness for governments and industry. His latest books, GAMING LAW IN A NUTSHELL, INTERNET GAMING LAW and GAMING LAW: CASES AND MATERIALS, are available through his website, www.GAMBLINGANDTHELAW.com.

By Professor I Nelson Rose

Daily Fantasy Sports is Rocky Balboa.

-petitors continue to spend enough

DraftKings and FanDuel say they had

to “move the needle” on the to-

already taken the obvious first step of

Like Rocky in the big fight scene in

tal amount spent by all advertis-

banning their employees from partici-

Rocky I, DFS operators have been on

ers for all products and services

pating in DFS on their own sites. We

the ropes since the beginning of Octo-

throughout the entire United States.

have to hope and assume this also cov-

ber. But, also like Rocky, they continue

ers not passing on inside information to

to battle on, taking a beating that would

Much of DFS operators’ bruises have

floor lesser competitors.

been self-inflicted.

family and friends.

DFS sites are

staffed by people who like to play fan-

But, given the nature of fantasy sports,

For example, during one week in Sep-

tasy sports. This is true of every gaming

which relies so heavily on statistical in-

tember, “DraftKings was the single

operation that puts an existing game to

formation, operators should have also

biggest advertiser on television.”

DFS

the Internet. But DFS operators should

prohibited their staffs from playing on

operators have slowed their spending,

have learned the lesson of Absolute

every DFS site, especially big money

in part because media companies are

Poker, where an insider was discovered

games. This would have prevented the

reluctant to run commercials for what

to be a “super-user,” with the ability to

scandal that will haunt operators for

might be illegal gambling. Still, Draft-

see every other players’ down-cards.

years, where a DraftKings employee

Kings, FanDuel and their smaller com-

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won $350,000 on FanDuel.

DECEMBER 2016

“Just a mistake,” said DraftKings about

Massachusetts, and apparently of at

Even some of DSF’s allies were back-

its

re-

least three other states, were already

ing off. ESPN suspended branded seg-

leased important customer informa-

investigating whether DFS violated any

ments featuring DraftKings during its

tion about player selections and then

of their state laws. The scandal broke at

news and information programs. The

won $350,000 playing fantasy football

the beginning of October. On Monday,

worry is more than mere public rela-

at FanDuel. To state and federal pros-

October 5th, the New York Times ran a

tions. If DSF is illegal gambling – which

ecutors and disgruntled losing patrons,

lead editorial entitled, “Rein In Online

is by no means clear – then anyone as-

it looks instead like the manager used

Fantasy Sports Gambling.” It also pub-

sociated with it could be facing seri-

inside information to give himself an

lished a detailed, scathing investigative

ous federal and state criminal charges.

advantage in choosing which players to

piece, with the not too subtle headline,

Fighting potential sentences of years in

put on his fantasy team.

“Cash Drops and Keystrokes: The Dark

prison and the confiscation of all profits

Reality of Sports Betting and Daily Fan-

arising from supposedly criminal activi-

tasy Games.”

ties would cost millions of dollars, even

manager,

who

accidentally

Now, prosecutors are looking into what other possible misconduct might have

if the charges are eventually dropped.

occurred. Worse, they are investigating

Within three weeks bills were entered

whether DSF has violated state or fed-

in Congress and state legislatures to

The problem for DSF sites and their

eral anti-gambling statutes.

outlaw DFS, at least one federal grand

associates is not the minor scandal

jury was convened, state attorneys gen-

of possible insider trading, or even al-

At least one class action has been filed.

eral opened their own investigations

legations of cheating.

I expect both government and private

and the FBI was called in.

is that violations of gambling laws

The problem

trigger all of the draconian statutes

lawyers to look for more than just money. They will attempt to get courts to is-

A manager of a multi-billion-dollar mu-

sue injunctions, closing down the sites.

tual fund cancelled a call he had sched-

designed to fight organized crime.

uled with me to discuss investing in DSF.

When Prohibition was repealed, organ-

The timing of the $350,000 DraftKings

Big investors may want big profits. But

ized crime, or OC as they call them-

scandal could not have been worse.

they are scared to death of uncertainty.

selves, looked around for other illegal

The Attorneys General of New York and

products and services that they could

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End Game for Daily Fantasy Sports?

DECEMBER 2016

supply consumers. When you think of

gambling law guilty of a major federal

Americans wanted and the actual laws

OC you naturally think of illegal drugs,

felony. The only requirement is that the

that were enacted; but affluent citizens

prostitution and gambling. So both state

business has five or more people and

and powerful special interest groups

legislatures and Congress passed nu-

does at least $2,000 in business a day.

were able to get legislatures to pass or

merous acts that make anyone involved

defeat bills reflecting their positions.

with illegal gambling potentially liable

Arizona, Iowa, Louisiana, Montana and

under the anti-racketeering laws. These

Washington have expressly made fan-

Of course, we don’t need to have stud-

laws were expressly designed to include

tasy sports illegal. DFS operators say

ies to show how laws are made, or not

investors and others involved with OC

they do not take players from those

made. The National Rifle Association

who like to keep their hands clean.

states, because they know that doing

was able to prevent Congress from

so would be a violation of the IGBA.

passing a single new gun control law,

There are three ways a non-actor, like

But there a dozen other states with

even those supported by a majority of

ESPN, could be criminally liable merely

anti-bookmaking and other laws on the

gun-owners, after the massacre of 20

for running ads for a business that vio-

books which might also apply to DFS.

students and six adults at Sandy Hook

lates anti-gambling laws.

Elementary School in 2012. If the mass It is possible for an individual to be

murder of first-graders does not result

The crime that is often called “the pros-

guilty of multiple crimes under these

in such widely desired laws as back-

ecutors’ friend” is conspiracy. Almost

doctrines.

For example, if someone

ground checks for gun purchasers, it is

all state anti-gambling crimes are mere

agrees to help an illegal gambling busi-

difficult to see how average Americans

misdemeanors. But conspiracy to com-

ness that has not just five but six other

could ever defeat the lobbying power of

mit a misdemeanor is a felony. Prosecu-

people involved, he can be charged

politically well-connected special inter-

tors only have to prove is that there was

with both conspiracy and the IGBA. And

est groups.

an agreement to do an act that violates

the IGBA opens the door to even worse

the law and that one of the co-conspira-

anti-OC statutes, including RICO, Rack-

The proponents of DFS include the

tors took a substantial step toward com-

eteer Influenced and Corrupt Organiza-

extremely rich and powerful sports

pleting that act. Co-conspirators do not

tions. RICO allows federal prosecutors

leagues, with the sole exception of the

even have to know that what they are

to seize all of a defendant’s assets that

NCAA. Even the fanatically anti-gam-

agreeing to do is illegal.

were derived from OC activities – the

bling NFL allows its team-owners to be

so-called “tainted fruit of the poisonous

directly involved with DFS operators.

The second and even more common

tree.” Plus, of course, potential penal-

way for a non-actor to be criminally li-

ties include many years in prison.

Closely aligned with the professional

able for the actions of another person is

sports teams are large mass media com-

accomplice liability. Unlike conspiracy,

Everyone wants to know what is going

panies, like Disney. It is easy to see

which is a separate crime, accomplice

to happen with DSF. Given this list of

why: DFS players watch athletic events

liability is a theory of liability. Often

horrors, it may be surprising to hear

to the end, even when it is a blow-out.

called aiding and abetting, this is a way

that I am rather optimistic about the op-

Unlike regular sports fans, DFS partici-

to make anyone who helps another

erators. The most important reason is

pants are more interested in the per-

commit a crime become guilty of that

money – big money coming from very

formance of their individual players

crime. The get-away driver is guilty of

powerful institutions.

than whether their team wins or loses,

bank robbery, even though he never steps foot into the bank.

or even whether it beats the spread.

Researchers at Princeton and Northwestern universities recently proved

The main opponents of DFS are estab-

For DFS, the last and possibly most

what every student of American politics

lished legal gambling operators, particu-

frightening way for a person to be

already knew: Big money buys politi-

larly casinos. Nevada announced that it

criminally responsible for the actions

cal influence. The professors examined

is taking up the battle against DFS by

of another are special statutes. In the

1,800 separate public policy debates

declaring DFS to be a form of gambling.

case of gambling, the most important is

between 1981 and 2002 and compared

the federal Illegal Gambling Businesses

the preferences of average citizens with

Act. Congress enacted the IGBA as part

those of the wealthiest individuals and

of the Organized Crime Control Act. It

largest special interests groups.

makes everyone who participates in

results: There was virtually no correla-

a business that violates a state anti-

tion between what the vast majority of

(continued on next page)

The

INFINITY GAMING

31

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End Game for Daily Fantasy Sports?

DECEMBER 2016

DFS operators are taking the position

So the DFS operators are stuck with

based on real-world sports events tak-

that their games are contests of skill, so

lobbying state by state.

They could

ing place over at least two days. This

they could not apply for gaming licens-

probably get a bill passed through the

would lessen the impact of random in-

es. Instead, they had to start exclud-

New York Legislature, making their op-

juries and bring back the skill factor of

ing real-money players from the Silver

erations legal in that state. But even if

allowing fantasy team owners to make

State.

licensed in New York, a DFS site could

trades.

not safely take players from New Jersey But casino owners have much bigger

unless they got a similar statute passed

In the end, will DFS win? Rocky with-

things to worry about than DFS, includ-

their, or they convince the New Jersey

stood repeated blows that would have

ing the lack of interest in casino gaming

Supreme Court that DFS was not gam-

killed a lesser fighter, and stayed on his

by Millennials. And privately owned ca-

bling.

feet through all 15 rounds. Still, in the end, he lost the match by a split deci-

sinos do not have a good record when it comes to keeping out newcomers.

The reason I am optimistic is that DFS,

sion. DFS and its many fans have to

Nevada’s casinos were against both In-

and especially its allies in the profes-

hope that Rocky will not be an omen for

dian gaming and Internet poker; battles

sional sports organizations and mass

them.

which they lost badly.

media companies, have the resources to fight these battles throughout the

And they may be right. DFS may be get-

The other main opponents of DFS are

entire nation. They do not even have to

ting hit almost every day. But it has not,

the “anti’s”, mostly religious groups op-

win; they only have to continue stand-

and will not, throw in the towel. We are

posed to all legal gambling. The anti’s

ing until they reach settlements with

still in the early rounds. And this is only

lost that battle decades ago.

prosecutors and other opponents.

Rocky I.

So, the proponents of DFS have the

What will those settlements look like?

Let’s not forget that in Rocky II,

power to get laws passed, expressly

There is little dispute that season-long

Rocky wins, and becomes the Heav-

making their activities legal. But legis-

fantasy sports is a contest of skill. DFS

yweight

lation will not immediately solve their

has eliminated at least one of the ele-

problems.

ments of skill: the ability of participants

© Copyright 2016. Professor I Nelson

Champion

of

the

World.

to make trades. The impact of chance is

Rose is recognized as one of the world’s

enacted

also much greater on daily games. For

leading authorities on gambling law

preempting state anti-gambling laws,

example, injuries and other unforeseen

and is a consultant and expert witness

as was done with trading in stocks and

events happen all the time. But over the

for governments and industry. His lat-

commodities. But Congress no longer

course of an entire season, such chance

est books, GAMING LAW IN A NUTSHELL,

passes laws. And even if it did, there

occurrences have much less of an im-

INTERNET GAMING LAW and GAMING

would have to be provisions for states

pact on which fantasy teams win or lose.

LAW: CASES AND MATERIALS, are avail-

A

federal

law

could

be

able through his website, www.GAM-

to opt in or opt out. The federal government is not going to impose the same

I would suggest agreeing to legislation

public policy on Nevada and Utah.

requiring that fantasy games must be

BLINGANDTHELAW.com.

INFINITY GAMING

33

34

DECEMBER 2016

INFINITY GAMING

GAMING NEWS

DECEMBER 2016

Australia introduce new online gambling bill

A

ustralia is looking to get tough with online gambling operators with a new bill that has been introduced into the countries Senate. The Interactive Gambling Amendment bill 2016 is aimed at stopping the so called “click to call” system where online operators can offer live sports betting services which is illegal but do so with the current “click to call” button.

Not just this but the bill also allows for the government agencies responsible to impose large fines on international gaming operators offering services to local gamblers without the proper licensing.

It also looks at helping problem gamblers with Alan Tudge, the human services minister, saying: “Currently hundreds of illegal gambling services are easily accessible on the internet and we know that people are more likely to get into trouble online – 2.7% of interactive gamblers are problem gamblers compared to 0.9% of all gamblers.

“We expect online wagering providers to meet community expectations. The tougher laws will seriously disrupt illegal offshore providers from acting unscrupulously or targeting vulnerable Australians.

“The government is committed to taking tougher action against illegal offshore wagering providers and this bill does exactly that.”

It is not known if the opposition Labor party would support the new bill which would be needed to have the bill pass into law.

Cyprus casino could be ready for 2017

Following their right to acquire the only license in Cyprus to operate a casino resort Melco International Development Limited and their partner Hard Rock Casino have said they could open a temporary casino and training facility in Limassol as soon as 2017.

The joint venture company plan to spend upwards of $500 million on the resort which will have 100 gaming tables and 1,000 slot machines along with a 500 room hotel when completed.

The government announced the winner earlier last month and the partnership have won the right to offer casino games in the region exclusively for 15 years.

Giorgos Lakkotrypis, Minister For Energy, Commerce, Industry And Tourism, said: “We have set the bar very high and we seem to be getting there.

I believe that you will be impressed by the plans, which we will present to you at some point shortly.”

Lakkotrypis also said that at a subsequent stage, they shall be ready to appoint the gaming authority.

INFINITY GAMING

35

INFINITY GAMING

GAMING NEWS

DECEMBER 2016

37

Genting Star City Casino Birmingham to close

G

enting UK the second largest

known in advance of the regulatory dif-

their business to ensure they can offer

casino operator and part of

ficulties and planning delays they were

the best possible facilities to customers

Genting International are to

to suffer.

and staff in the most efficient way.

close its Star City Casino in Birmingham.

But the Star City casino which opened

Staff were informed Wednesday of the

in 2003 and was at the time lauded as

“Earlier this week we began consultations

decision and it is expected to close at the

the biggest casino in the UK has over the

to relocate support staff from offices

end of December 2016.

years reduced its size and entertainment.

in Liverpool to Birmingham, where we

Star City employs some 220 staff.

Speculation over the casino has been rife

already have a large support function. for months with the venue suffering fall-

“We are also considering the future of

The casino company opened their latest

ing revenues and competition.

our Star City casino in Birmingham. It op-

resort at the Birmingham International

It now seems that Genting UK are hop-

erates in the shadow of our Resorts World

Airport back in October 2015 called Re-

ing that the closure will drive players to

facility, which offers some of the best

sorts World at a cost of £150 million and

the Resort World Venue at Birmingham

leisure facilities in the world including an

at the time President of Genting UK Peter

Airport.

international casino, hotel and shopping

Brooks said he was very cautious over the

centre. We have begun consultations with

development calling it an “experiment”

Following the news Genting’s UK PR com-

our staff and will make a decision in the

and “an act of faith.” Indeed Mr Brooks

pany released the following statement:

near future. Our staff remain a priority

said that the company would never had invested in the casino resort had they

and there are many opportunities for “Genting UK are constantly reviewing

them in our facilities across the region

INFINITY GAMING

The Ritz Club 150 Piccadilly, London W1J 9BS +44 (0)20 7499 1818 www.theritzclub.com @TheRitzClub

GAMING NEWS

DECEMBER 2016

Police in Ukraine bust illegal online gambling firm Pagcor selling off all casinos to private onwership

K

iev authorities in Ukraine have smashed an illegal online gambling syndicate that ran some 18 online websites and employed over 120 staff.

According to Vadym Troyan, the acting chief of criminal police in Kiev the websites were owned by a group of Russian & Lithuanian nationals but the majority of the staff employed were unaware that the operation was illegal and only 20 who were involved in direct operations have been detained by the police.

Both the cyber-crime and prosecutorial task force of 80 officials raided areas in the city of Kiev seizing computer equipment, nearly £100,000 in cash, firearms and ammunition.

The authorities in Kiev say that the illegal websites were generating incomes of 400,000 Euros a month.

As the raid was being conducted another call from the Ukrainian Gaming Industry Association for the lifting of the seven year ban on all forms of gambling within the country.

Ukraine banned gambling both land based and online in 2009 following a fire at a casino in Dnipropetrovsk that killed nine people and the association now believe it is time to review lifting the ban.

The Philippine Amusement and Gaming Corp (Pagcor) which is an operator and regulator of gaming in the country will be selling all its gaming operations and in essence revert back to just a regulator in an effort by the government to generate revenues for the 2017 national budget and is expected to be completed by September 2017.

It has not been estimated the total amount of revenues generated by the sale to the private sector of the casinos but Pagcor own 565 gaming tables and some 1,280 Slot Machines Senator Loren Legarda, chair of the Senate’s Committee on Finance said the government had “already started the process of privatisation” of Pagcor’s casino operations, adding that only the “regulatory function will be retained by Pagcor,” Buyers of the casinos and the process to apply has not been disclosed.

INFINITY GAMING

39

GAMING NEWS

DECEMBER 2016

Donald Trump picks Adelson and Wynn to organise inauguration party

P

lanning for the Presidential inauguration of Donald Trump has started and the property billionaire has

called on his casino buddies to organise it.

It seems President-elect Donald Trump believes that Steve Wynn and Sheldon Adelson who have been named on the inauguration committee to organise the event will throw a superb bash for him.

Others from the casino industry named on the 20 member inauguration committee are Treasure Island casino owner Phil Ruffin and Gail Icahn, wife of billionaire Carl Icahn, who controls Tropicana Entertainment along with Sheldon Adelson’s wife Miriam.

The event will be a Gala night concluding the normal ceremony outside the U.S. Capitol and once again indicates that major donor Adelson is firmly in the friends bracket of the soon to be President further stamping the belief that online gambling supporters in the US need to be concerned about the future of the industry there.

Brazil votes Dec. 7 on gambling bill

T

he Senate in Brazil will vote

Senate President Renan Calheiros

on the Gambling expansion

said by holding the vote early in

Both International casino opera-

bill 186/2014 on December

December the country will know

tors and online operators will be

7th possibly paving the way for

the outcome before the govern-

watching the outcome of the vote

both land based and online gam-

ment takes their seasonal break

intensely to see if one of South

bling to be legal in the country that

from 22nd December. By then the

Americans largest countries enters

has not be allowed to gambling for

country will know if gambling will

the gambling market again.

70 years.

return to the country in the New Year.

INFINITY GAMING

41

42

DECEMBER 2016

GAMING NEWS

Japanese gambling market worth $20 billion

S

hould Japan ever decide to legalise casino resorts then the market would be worth around $7 billion to the maximum $20 billion a year says investment bank Morgan Stanley.

The firm says in its latest report on Japan that it is also unlikely that any law allowing for casino resorts to be built will pass this year as there is very little time left in countries parliament or “Diet” with the last session this year finishing on the 30th November.

In a note to investors Morgan Stanley said, “First, the current session which ends in end-November does not leave much time for it to pass in both houses, although it is possible that the session may be extended for two to three weeks in December.

INFINITY GAMING

“Second, after [the] LDP pushed through the TPP [TransPacific Partnership free trade agreement] without consensus, it is unlikely to do this with the casino IR [integrated resorts] … bill. Finally, uncertainty following the U.S. Presidential election could divert attention away from the bill.”

The valuation of the market there is somewhat smaller that industry estimates of $40 billion and could have an impact on how much operators would spend in the country if and when the government legalise gambling.

Also it is expected that an entrance fee will be charged for all local gamblers in an effort to discourage gambling and social issues.

GAMING NEWS

DECEMBER 2016

Crown Resorts employees in China formally arrested Head of VIP Gaming involved

F

ollowing the arrest last month of a group of Crown Resorts employees by the Chinese authorities on gambling related crimes the government have now formally charged the group and will now be detained for more than two months as investigations continue.

The news is a major blow to the Australian based casino company and means its employees will now be held in China till after the New Year while police compile a case to be considered for prosecution.

Those arrested spell danger for others involved in enticing Chinese nationals to gamble overseas in their casinos. The Chinese government are cracking down on companies actively marketing their casinos in mainland China.

Seventeen employees from Crown Resorts will spend the entire festive season in jail awaiting the outcome of the full investigation. This follows China warning Crown Resorts last year to cease its marketing activities and these arrests seem to stem from that warning.

LATEST UPDATE: Chinese authorities have confirmed that three Australian nationals from Crown Resorts are part of the formal arrests made regarding “on suspicion of gambling,” in China that is illegal.

One of the key Australian figures named by the Chinese foreign ministry is Jason O’Connor head of Crown’s VIP International team, if found guilty they could face three years in prison.

The investigating prosecution says that those arrested were involved in organizing groups of more than 10 Chinese citizens to gamble abroad, which under Chinese law is illegal.

Australian Foreign Minister Julie Bishop said Australia’s consular staff visited all three on Tuesday. They are being held in Shanghai.

“They are in good health, they are all represented by lawyers and we were able to provide advice and support and messages from their families,” Bishop told Sky News television.

“It is a very difficult circumstance, but we will continue to provide whatever advice and support that we are able,” she added.

It is understood that the investigations will take three months before any formal charges and court action will be decided and in that time the accused remain in custody.

INFINITY GAMING

43

VS LostVegas.co.uk

#October2016

GAMING NEWS

DECEMBER 2016

Hard Rock Cafe Planning Investment in Japan

F

ollowing announcements from

ing the bill and if it passes, the Japa-

claims that the Japanese market can

rival casino operators, MGM

nese gaming market is estimated to

even surpass the Macau one, in terms

Resorts and Las Vegas Sands

be worth billions of dollars. A record

of gaming. Dodds agreed with that

Corp, Hard Rock Cafe have announced

high in tourism numbers, driven by

estimate and claimed that the market

plans to build an integrated casino

an interest in a local betting games

was worth more than $10 billion. The

resort in Japan. The US Cafe and ca-

(pachinko parlors), also makes a case

Macau market is currently valued at

sino chain has expected to numerous

for the legalization of integrated and

$30 billion, even though it has been

Asian countries over the years and is

regulated casinos.

hit with government investigations.

legalized in the country. Over half of

Hamish Dodds, Hard Rock Cafe CEO,

Dodds is confident that the bill will

Hard Rock’s net revenue of $4.5 bil-

made the announcement during an

pass this time as he claims that there

lion, is generated through it’s gaming

interview. The company is currently

is more talk around it and commercial

sector.

looking for local partners to col-

establishments are meeting to make

laborate on the project. Dodds says

plans for the legalization of the bill.

Japan has been going through a bill

that Hard Rock is willing to play “a

His statement rings true as just last

to legalize casinos in the country for

lead role or a partnership role” and

week, representatives from major op-

years. However, the current political

hopes to collaborate with Japanese

erators like MGM, held a conference

climate in the country makes it likely

institutions soon. The Japanese gam-

with local institutions and politicians

that the bill will pass through this

ing market is estimated to be values

to discuss future partnerships and

time. Current ruling party, the Liberal

around $10 billion – $40 billion.

plans.

Democratic Party, seem to be favor-

Aaron Fischer, an analyst at CLSA Ltd,

likely to get a license, if gambling is

INFINITY GAMING

45