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Catch up on six of the stories our gambling compliance analysts have covered lately, and stay up-to-date on the latest news.

Peru Regulator Warns Suppliers Over Unregulated Operators

Registered online gambling suppliers in Peru may no longer provide services to any unlicensed operators active in the country, according to a published by the country's gambling regulator on Tuesday (October 15).

The memo signed by Yuri Guerra Padilla, general director of the gambling authority within Peru's Ministry of Tourism and Foreign Commerce (MINCETUR), noted that regulators had now "successfully" completed a transition process to license operators for sports betting and online gaming, in accordance with an October 2023 regulatory decree.

MINCETUR will now commence web-blocking against unauthorised platforms and shut down illegal betting outlets, Guerra wrote.

"If any service provider is found providing services to unauthorised companies or platforms, MINCETUR... will revoke their registration in the list of registered service providers so that they will not be able to continue providing services to any companies that are authorised in Peru," Guerra warning.

Ontario Fines NorthStar Gaming $30,000

The Alcohol and Gaming Commission of Ontario (AGCO) has fined NorthStar Gaming $30,000 for failing to ensure that their online gaming site is accessible only to players in Ontario and other violations, the regulator confirmed Wednesday (October 16).

As part of its ongoing compliance monitoring of the gaming sector, AGCO identified the issue with NorthStarBets.ca during a proactive, third-party assessment it undertook of registered internet gaming operators.

As part of the assessment, tests were conducted from physical locations in Quebec and New York state to determine whether Ontario gaming sites were accessible outside of the province. During the assessment, NorthStarBets.ca failed to accurately identify the location of one of the devices.

The AGCO is further citing the operator for its repeated failure to provide the registrar with data, information and documents requested in a timely manner as required.

“Ontario’s gaming sector is carefully regulated to ensure it is conducted legally and with the public interest in mind,” Karen Schnarr, CEO and registrar of AGCO, said in a statement.

“The AGCO will continue to take all appropriate steps to ensure that regulated gaming sites are operated with integrity and within the province’s legal framework,” Schnarr added.

Macau Passes Tougher Law On Gambling Crime

Macau lawmakers have unanimously backed a government gambling crime bill that will criminalise side betting, unauthorised land-based or online gambling or its promotion, unauthorised credit, and unauthorised currency exchange.

The Legislative Assembly on Wednesday (October 16) passed the with only minor lawmaker concerns over its tougher range of punishments for gambling crime, including a maximum of eight years in jail for side betting, up from three years.

Side betting refers to informal agreements between players and junket operators that multiply the value of chips by an agreed factor, stripping the casino and the government of revenue.

Other penalties include a maximum of five years’ prison for illegal currency exchange for gambling purposes, whether on or off-site and a two-year prison term for illegal sales of lotteries, including Hong Kong’s Mark Six lottery.

The new law will strengthen enforcement capabilities by granting law enforcement officers greater evidence-collection powers at nighttime in private residences.

It also enhances undercover investigative powers and protections for informants, as well as stripping suspects of the right to legal representation prior to questioning.

New Jersey Allows Gift Cards To Fund Gaming Accounts

The New Jersey Division of Gaming Enforcement (DGE) will amend its regulations to specifically allow for the funding of online gaming and sports-betting accounts using gift cards, subject to certain conditions.

When the regulations were promulgated in 2013, gift cards that could be purchased at gas stations, supermarkets, or other retail locations were not specifically included in the acceptable method of funding an online account.

Among the acceptable funding sources were credit or debit cards, cash, chips, and reloadable prepaid cards issued to a single, identifiable user. The DGE noted that consumers trying to fund their accounts with credit or debit cards have often found their transactions declined.

As a result, the DGE decided to allow the use of these gift cards that were not issued to an identifiable person for account funding, as they were a method that was accepted at higher rates than credit or debit cards.

The DGE admitted it was aware of law enforcement concerns about fraud, so it imposed a “one-time play-through requirement on all gift cards before a withdrawal can be processed.”

For example, if a patron deposits $100 into their online account using a $100 gift card, $100 worth of wagers must be placed before withdrawals can be processed.

“A person cannot, for example, use a $100.00 gift card to buy a $1.00 item and receive $99.00 in change,” according to the DGE.

Argentina's Mendoza To Award Additional Licences

The Argentine province of Mendoza’s new tender for online gaming has attracted the attention of five companies, who have made their bid for a licence. The province will grant a total of two more, in addition to the five companies that already operate.

According to Mendozan media, the companies who applied are KLP Emprendimientos SA, Nuevo Plaza Hotel Mendoza SA, New Star Internacional SRL, CasinoSoft SA and Slots Machines SA.

Current operators are BetWarrior, Codere, Super7 and Bplay, with Betano expected to begin operations soon. Slot Machines SA applied for a licence in the previous tender and failed.

Initial licences were finally awarded in April in 2023, in a process that took so long that half the qualified operators dropped out. All licences will be valid for ten years with the possibility of renewal.

This summer Mendoza embarked on blocking access to unauthorised gaming sites in public spaces as part of an effort to prevent adolescents and those at risk from gambling. It is part of a larger trend throughout Argentina to decrease youth access to games.

SkyCity Loses Twice In Apex Court Tax Battle

New Zealand and Australian casino operator SkyCity Entertainment Group has lost its appeal to the High Court of Australia on the revenue classification of electronic gaming machine credits converted from loyalty points.

The High Court on Wednesday (October 16) upheld the South Australia state Court of Appeal’s that revenue gained from customer credits converted from loyalty points is taxable, SkyCity said in a filing to the Australian and New Zealand stock exchanges.

The company now faces a bill of up to A$38.4m ($25.7m) after the High Court a related government appeal on interest, the filing said.

Today’s decision requires SkyCity to pay an extra A$10.3m in casino duties up until January 2024, resolving a long-standing dispute over a 1999 casino duty agreement between the company and the state government.

In addition, SkyCity must pay A$2.8m deriving from a section of the Court of Appeal decision that the company did not dispute.

The High Court also upheld the state treasurer’s action against Court of Appeal support for SkyCity on the agreement’s interest provisions, potentially adding a further A$25.3m to SkyCity’s tax burden as of the end of September 2024.

The latter amount will be determined by the state Supreme Court “at a later date”, and SkyCity is yet to recognise a provision for it, the filing said.

SkyCity has suffered several fiscal blows in recent months, agreeing in May to pay A$67m in fines to the Australian government and NZ$4.16m ($2.5m) to the New Zealand government over of the nations’ anti-money laundering (AML) laws.

The company was forced to close its gambling operation in Auckland for five days in September over compliance failures, and it remains under investigation in South Australia over AML breaches.

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