����žž

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

Sports Betting Alliance Opposes Michigan Tax Increases

Even though the proposed tax increases in Michigan on internet gaming and sports betting are small, the Sports Betting Alliance (SBA) has begun an online lobbying effort to make its opposition known before the legislature returns next year.

Senate Bill 1193, filed by state Senators Sam Singh and Jeremy Moss, both Democrats, would increase the tax rate on sports betting from 8.4 percent to 8.5 percent on a commercial operator’s adjusted gross sports-betting revenue. Singh and Moss also authored Senate Bill 1194 that seeks to increase iGaming tax rates across the board by one percent in Michigan.

A form on the that can be sent to state lawmakers says raising taxes on legal sports betting and iGaming will only “hurt fans … who just want to enjoy games how we want.”

The SBA, a coalition of operators including FanDuel, BetMGM, DraftKings, and Fanatics, warns that lawmakers are trying to rush through two bills that would increase the tax burden on the industry putting “hundreds of new local jobs at risk.”

The move to increase tax rates in Michigan follows a successful effort in Ohio that saw the sports-betting tax rate double from 10 percent to 20 percent, while in July, Illinois Governor JB Pritzker, a Democrat, signed a bill creating a tiered system ranging from 20 percent to 40 percent.

The Illinois tax rate had been 15 percent. Other states, including New Jersey, Louisiana, and Massachusetts also debated tax increases but left their rates alone.

Massachusetts Seeks Comment On Data Privacy Regulation

The Massachusetts Gaming Commission (MGC) issued a notice of public hearing Wednesday (December 11) regarding a proposed amendment to a sports-betting data privacy regulation.

The MGC seeks to amend regulation to “provide clarity surrounding sports wagering operators’ ability to utilize personally identifiable information and confidential information for legitimate business purposes including permissible advertising to patrons.”

A proposed new section to the regulations requires operators to use “reasonable protection methods, store all confidential information and personally identifiable information within their possession, custody or control, in a secure manner, against alteration, tampering, or unauthorized access”.

A second amendment requires sports-betting operators to “encrypt or hash” communications over the internet or other public networks to protect “all confidential information and personally identifiable information”.

The MGC will accept public comments on the proposed amendments until January 6, with a public hearing scheduled for January 7, 2025.

New Jersey Awards $720,000 For Gambling Services

The New Jersey Department of Human Services will distribute $720,000 in grants to expand access to problem gambling treatments, while also dealing with mental health or substance abuse issues.

The grants were awarded to six organizations in the state with the goal of making more help available in a state where requests for help have surged along with the availability of online gaming and sports-betting.

“More than 90 percent of individuals with gambling disorders have a co-occurring behavioral health needs,” Human Services commissioner Sarah Adelman said in a statement.

The six organizations will each receive $120,000 to hire at minimum one full-time gambling disorder clinician who will provide treatment and case management service to individuals with a gambling disorder.

Services will include screenings, counseling and therapy designed specifically for gambling addiction, state officials said. The organizations will also connect people to support groups like Gamblers Anonymous, financial counseling and stress management programs.

A 2023 report from Rutgers University Center for Gambling Studies estimated that approximately 6 percent of New Jersey residents are at high risk for problem gambling.

Radio X Betfair Ad Complaint Rejected

An ad for Betfair broadcast during the Chris Moyles show on Radio X was not a risk to children, despite being broadcast at 8am, the UK’s advertising watchdog has ruled.

The Advertising Standards Authority (ASA) that the morning ad for Flutter-owned Betfair could have been aimed at children.

The Chris Moyles show and Radio X in general has a large proportion of listeners over the age of 25, Flutter told the ASA.

The advertising regulator independently verified the audience statistics using official Radio Joint Audience Research figures and said it was satisfied that the radio ad was not targeted at an underage audience.

U.S. Senate Committee Schedules Sports-Betting Hearing

The Senate Judiciary Committee has scheduled a hearing to discuss the U.S. sports-betting market next week.

The committee set a hearing date of Tuesday, December 17, for a hearing titled “America’s High-Stakes Bet on Legalized Sports Gambling.”

The hearing would be the first congressional hearing specifically on sports betting since a House Judiciary subcommittee heard testimony on the issue in September 2018, and continues a trend of federal lawmakers showing increased interest in sports betting.

The SAFE Bet Act, which would include significant new restrictions on advertising and affordability requirements, among other provisions, was filed in both chambers of the U.S. Congress earlier this year.

In addition, two senators, Republican Mike Lee of Utah and Democrat Peter Welch, sent a letter to the Federal Trade Commission last week asking the regulator to investigate FanDuel and DraftKings for antitrust violations.

Action on the SAFE Bet Act, or any other congressional action on sports betting, is extremely unlikely with a new Congress set to be seated on January 3 following November’s elections.

The Senate Judiciary Committee will also have a new chair as of that point, with Democratic Senator Dick Durbin relinquishing that title to Republican Chuck Grassley with Republicans holding the majority in the Senate.

UAE Regulators Warn Unlicensed Operators Pose Risks

The United Arab Emirates’ (UAE) gaming regulator, the General Commercial Gaming Regulatory Authority (GCGRA), has issued a consumer advisory notice warning residents of playing with unlicensed lottery and commercial gaming operators.

In July, the GCGRA granted the UAE’s sole lottery licence to The Game LLC to operate as the UAE Lottery. Two pre-existing airport lotteries, Big Ticket and Dubai Duty Free, that have been operating for almost three decades will continue operating under the supervision of the GCGRA.

In accordance with the law, all other pre-existing lotteries will not be considered for continued operations, and the GCGRA has ordered them to shut down.

“The GCGRA is committed to ensuring a safe and legal gaming environment in the UAE,”  Kevin Mullally, CEO of the GCGRA, said in a statement on Monday (December 9).

Mullally warned that advertisers, payment processors and other service providers that support these businesses risk sanctions and potential consequences affecting their ability to operate in the UAE.

The GCGRA was established in September 2023 with former MGM Resorts International CEO Jim Murren as chairman. Since its inception, the agency has authorised Aristocrat, Smartplay International and PayBy Technology Projects to supply gaming operators.

Wynn Resorts received the first Commercial Gaming Facility Operator licence in October for its Wynn Al Marjan Island project on Ras Al Khaimah.

‍

Want to know more?

‍Request a demo with one of our experts today to gain full access to the stories we cover - and much more - and start learning how you can make compliance a competitive advantage for your organisation.