Each week, CasinoBeats breaks down the numbers behind some of the industry’s most interesting stories. Numerous updates across Australia, including a second A$100m penalty for Star Entertainment, new tribal gaming compacts, potential fines in the US and Netherlands and Michigan sentencing for illegal gambling all feature in our latest headline round-up.
100
Star Entertainment Group was hit with a second A$100m penalty package and was given a 12 month time frame to get its house in order after the latest disciplinary actions against the beleaguered group was taken in Queensland.
The financial penalty applied, which mirrors the fee imposed in New South Wales, will be paid through 2023 in three instalments on March 31 (A$30m), June 30 (A$30m) and December 31 ($40m).
In addition, the Treasury Brisbane and Star Gold Coast casino licences boasted by the group are to be suspended for a period of 90 days on a deferred basis with effect from December 1, 2023.
Furthermore, Nicholas Weeks, who was previously named as a special manager for the Star’s Sydney operations, will occupy a similar role in overseeing the Star’s Queensland facilities. The cost associated with this will be recouped from the relevant casino.
25,000
Holland Casino launched an appeal to a regulatory ruling by the Kansspelautoriteit regarding the online advertising of the group’s land-based gaming venues.
This saw the Dutch Gaming Authority rule that the company’s igaming site violated the fifth paragraph of article 4.2 of the country’s Gaming Act.
This states that “the licence holder does not allow any recruitment or advertising activities for goods and services and goods other than the licensed games of chance on the games of chance interface”.
Subsequently, Holland Casino, which has a monopoly of land-based gaming within the country, was instructed to remove all advertising and recruitment activities for its branches across the country from its mobile site.
The Ksa warned that the company had a seven day grace period to adhere to the ruling. Following this a penalty of €5,000 per day, up to a maximum of €25,000, would have been imposed.
71
According to a Betting & Gaming Council survey, the majority of the British public believe placing compulsory health warnings on betting products would be ‘ineffective’ in preventing problem gambling.
The study, conducted by YouGov for the BGC, saw 71 per cent suggest that government health messaging, similar to those on cigarettes, would not help tackle problem gambling.
Meanwhile, the survey also found that 47 per cent of the public think banning popular promotions like free bets would also be ‘ineffective’ in helping to tackle irresponsible gambling.
Alternatively, only three per cent of the public think health warnings would be ‘very effective’ in preventing problem gambling, with eight per cent believing the same for banning free bets and similar promotions.
2
The National Indian Gaming Commission could impose a hefty fine or potential closure on the Catawba Two Kings Casino for perceived violations of the Indian Gaming Regulatory Act.
The Commission, which oversees regulatory compliance and integrity for tribal gaming group’s, said that “multiple violations” of the IGRA as well as NIGC regulations have been identified.
This saw E Sequoyah Simermeyer, Chair of the NIGC, issue a notice of violation against the Catawba Indian Nation, Kings Mountain Sky Boat Partners and Sky Boat’s owners, officials, managers, and consultant.
Elaborating on the offences, it is said that Catawba permitted Sky Boat to manage, in part, the expansion of the Two Kings Casino without an approved management contract.
Furthermore the Nation, Sky Boat, and their respective officials also stand accused of failing to submit the required ground lease, which is a management contract, within 60 days of its execution, as required by NIGC regulations.
10
The Western Australian government is to introduce a A$10 betting limit on electronic gaming machines on the main floor of Crown casino from July 1, 2023.
In a move endorsed by Tony Buti, Racing and Gaming Minister, this is one step in the ongoing work to implement a series of recommendations stemming from the state’s royal commission into the group.
In March, it was found that Crown was unsuitable to continue holding a gaming licence in Western Australia, but the group was afforded a two year remediation plan, to be overseen by an independent monitor, to clean up its act.
Echoing previous outcomes in New South Wales and Victoria, a series of findings outlined following the inquiry found that the group failed to minimise gambling related harm; permitted junkets with criminal links to operate at the casino; and was not open, accountable, or competent in communications with the state regulator.
19
New tribal-state gaming compacts have been agreed in North Dakota that will see the legal age of gambling on reservations lowered from 21 to 19-years-of-age.
Agreed by Governor Doug Burgum and the Chairpersons of the five tribal nations, with whom North Dakota shares geography, the new terms will replace current tribal gaming compacts.
Existing agreements are set to expire early next year, with the next process in the hands of the US Department of the Interior for final approval.
The lowering of the legal age limit will also see an exception that will remain in place for those with military ID, who may gamble at the age of 18.
2019
The Australian Transaction Reports and Analysis Centre has followed the launch of federal court proceedings against Star Entertainment Group by taking a similar course of action against SkyCity regarding its Adelaide gaming venue.
The commencement of civil penalty proceedings, regarding which any potential financial penalty will be determined by the court, has come as a result of alleged serious and systemic non-compliance with Australia’s anti-money laundering and counter-terrorism financing laws.
This action stems from a compliance campaign that began in September 2019, which subsequently commenced an enforcement investigation into SkyCity Entertainment as well as Crown Resorts and Star Entertainment Group.
3
Three individuals have been sentenced in Michigan for their roles in running an illegal gambling operation, following a joint investigation by the Department of Attorney General and the Gaming Control Board.
The residents of the state each pled guilty for their part regarding the operation, at the now-closed Fortune Internet Café, in the latest similar such action taken in the region.
All gambling-related money and other evidence was ordered to be forfeited to the state, with this including items such as $3,022 in cash and gift cards, 32 slot-style gaming computers and two standalone slot-style gaming machines.
