Brazil Sets October 1 Deadline for Unlicensed Gambling Operators to Close

Brazil’s Ministry of Finance has declared that unlicensed gambling operators must cease operations in the country by October 1.

Brazil has long had gambling companies work in a largely unregulated gray market, but is underway with plans to launch a federal, regulated gambling market, which is set to launch on January 1, 2025.

just two weeks to shut down before facing legal consequences

That means that companies who have failed to apply for a license and are still operational have just two weeks to shut down before facing legal consequences.

Companies already operating will be able to continue to do so provided they have already applied for a license. Regis Dudena, General Secretary of the Secretariat for Betting and Prizes, said: “We will maintain the adaptation period until the end of December only for those who have already demonstrated that they want to act in accordance with the law, and in accordance with Brazilian rules.”

113 companies have applied for gambling licenses ahead of the 2025 launch, which require a payment of R$30m ($5.48m) to be submitted before the end of 2024. Brazil has already begun cracking down on payments received by operators that are not compliant.

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Feds Find Denver’s Player One Arcade Owner Guilty of Running Illegal Gambling Dens

Illegal gambling arcade

The United States Attorney’s Office for the District of Colorado (USAO-CO) has announced a guilty verdict for the owner of Player One Arcade in Denver who ran an illicit gambling enterprise.

A federal jury found Denver native Jonathan Arvay, 38, guilty on one count apiece of conspiracy to conduct an illegal gambling business, and conducting an illegal gambling business.

The USAO-DO took to X Tuesday with news of the two guilty charges Arvay will face at his scheduled December 12 sentencing:

According to the feds, Arvay’s Player One Arcade was one establishment in a gambling parlor chain spreading outwards from Denver to the cities of Greeley and Pueblo and taking in Colorado Springs, Lakewood, and Aurora.

These establishments housed multiple electronic gambling machines “made to resemble arcade games,” and virtual slot machines, stated the DOJ press release.

E-currency for cash

According to the USAO-CO release, whatever winnings players made on the games would be converted to cryptocurrency, which could then be exchanged for cash.

Arvay’s trial notes reveal customers in Player One Arcade, or the other parlors, would exchange any credits won for cryptocurrency known as Obsidian Digital Asset Coin.

looked like ATMs but were instead crypto teller machines

Housed within the arcades, or next door to them, were what looked like ATMs but were instead crypto teller machines. Customers would then use the machines to convert their e-currency winnings into cash, for which they would pay a transfer fee.

USAO-CO’s Acting US Attorney Matt Kirsch stated on Tuesday that Arvay and other unnamed defendants ran “a large, complex” illegal gambling operation via online and brick-and-mortar channels.

Kirsch said the gambling parlors “masqueraded as arcades with a veneer of legitimacy.” IRS Criminal Investigation Denver Field Office Acting Special Agent in Charge, Tom Demeo, meanwhile, praised those involved in the investigation for helping unravel Arvay’s “complex financial scheme.”

Demeo added that IRS special agents will counter fraudsters devising “new ways to evade their tax liability and defraud the government,” by adding novel investigative methods to trace the illegal funds and “hold these criminals accountable.”

Community concerns

FBI Denver Special Agent in Charge Mark Michalek said the money made by the illegal gambling parlors led to multiple violations besides money laundering and fraud. Michalek went on to thank all parties involved for successfully dismantling “the gambling dens that were negatively impacting surrounding communities.”

establishments were causing real harm in our communities.”

Attorney Kirsch was also grateful to officers of the law for “digging beneath the veneer and finding that these establishments were causing real harm in our communities.”

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MGM Has Capital to Execute Big Projects, Analysts Say

MGM Resorts International (NYSE: MGM) has the financial resources and access to capital needed to execute multiple new casino hotel projects over the medium term.

MGM Resorts Empire City casino
MGM Resorts International’s rendering of Empire City in Yonkers, NY. The operator has the financial resources to execute multiple significant projects, say analysts. (Image: MGM Resorts International)

That’s the take of CBRE Credit Research Colin Mansfield and Connor Parks who in a new note to clients said the gaming company bolstered its financial flexibility with the recent sale of $850 million of corporate debt. Some proceeds from that transaction will go toward eliminating the operator’s 2025 maturities, meaning it now has no debt coming due before 2026.

The issuance clears out the 2025 maturities at MGM’s domestic box, with the next maturity being the $400 million due in late-2026,” according to the analysts. “Lease-adjusted consolidated leverage at MGM remains low at 4.3 times pro-forma for the issuance.”

The CBRE duo noted that MGM has the resources to work on multiple large-scale projects, including MGM Osaka in Japan, and potentially, converting Empire City Casino in Yonkers, NY to a traditional casino while also possibly pursuing gaming licenses in Thailand and the United Arab Emirates (UAE).

MGM Has Big Ambitions

Each of the projects mentioned above would likely be a multibillion-dollar venture. MGM has a 42.5% stake in the Osaka integrated resort scheme, which carries a price tag of $8 billion, and it could take several billion more to transition Empire City into a Las Vegas-style gaming venue if the operator wins one of the three downstate casino permits New York regulators could award next year.

Likewise, a Thai license could cost as much as $3 billion, depending upon the location of the venue. MGM previously said its MGM China unit would be the entity to pursue an integrated resort in that country.

“Each development would require multibillion-dollar investments and sizeable equity checks, though MGM can fund these via FCF (free cash flow) depending on their ultimate timing,” observed the CBRE analysts.

The analysts added that MGM “has balance sheet flexibility” should it need to issue more debt to deal with the possibility of overlapping timelines on various projects. The gaming company added $175 million to its already sizable cash-on-hand position via the aforementioned bond sale.

Where Dubai Fits in for MGM

MGM executives have consistently said the company would be interested in bidding for a gaming license in the UAE if that opportunity presents itself. Its MGM-branded hotel in Dubai is currently structured as a nongaming venue, but CEO Bill Hornbuckle told analysts and investors earlier this year that the operator said aside space for a casino, indicating it could quickly pivot if need be.

Not including a casino, MGM and local partner Wasl Asset Management Group expect to spend $2.5 billion or more on a three-hotel plan in Dubai. The hotels are expected to be reflections of the Aria, Bellagio, and MGM Grand on the Las Vegas Strip.

The operator has 150,000 square feet to work with at the Dubai property when it comes to adding a casino, but the company hasn’t commented on the cost of such an addition.

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UK Government Reprimands Flutter’s Sky Betting & Gaming for Sharing Customer Data With Advertisers

Unlawful data sharing

The data protection arm of the UK government’s Department for Science, Innovation and Technology has “reprimanded” Flutter-owned Sky Betting & Gaming for unlawfully sharing subscribers’ details with advertising firms.

complaint by pressure group

According to The Guardian on Tuesday, the telling off by the Information Commissioner’s Office (ICO) came after the regulator investigated Flutter’s Sky Betting & Gaming holding brand Bonne Terre Ltd after a complaint by pressure group Clean Up Gambling.

The not-for-profit body alleged the Flutter iGaming subsidiary, whose brands include Sky Bet, Sky Vegas, Sky Bingo, Sky Casino and Sky Poker, was “misusing its customers’ personal data to target vulnerable gamblers.”

Upon investigation, the ICO said it found zero evidence Sky’s intention was to target at-risk gamblers.

Fortunate finding

A Sky Betting & Gaming spokesperson stated the iGaming firm “welcomed” the all-clear on the vulnerable gambling accusation after the ICO’s “exhaustive 18-month investigation.”

What the probe uncovered, however, was that the Flutter firm had, without customers’ consent, processed their data via advertising cookies over a seven-week period in early 2023. Sky then immediately passed customers’ data onto advertising tech firms before it gave customers the option to accept or decline cookies.

In a statement, ICO Deputy Commissioner Stephen Bonner said seemingly tailored ads, such as a commercial for sneakers popping up after joining a gym online, were commonplace. Bonner added, however, that while some people may be happy to consent to these ads, others might not appreciate them when they impinge on the more “sensitive aspects of our digital activity.”

personal information being shared with advertisers”

“For example, if you are visiting a gambling website or looking up concerning health symptoms, you may want to prevent this personal information being shared with advertisers.”

The spokesperson for Flutter’s UK iGaming brand blamed the breach on an “accidental technical error.” The exec added Sky “rectified this error within a day of becoming aware of it.”

Dealing with the past

Clean Up Gambling first leveled the claim against Sky Bet’s “invasive” online data retrieval processes that involved “widespread illegality” back in August 2022.

The non-profit is led by Matt Zarb-Cousin, co-founder of anti-gambling software company Gamban.

The probe may have brought back bad memories for Flutter of a Sky Vegas free spins promo sent to vulnerable customers in 2021, for which the UKGC fined it £1.17m ($2.24m).

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Tesla Cybertruck Light Show Wows in Front of Treasure Island Casino in Las Vegas

Not many vehicles get more attention than the Tesla Cybertrucks have received since their inception. People seem to either love or hate the space-like creations, which spawned from the mind of controversial billionaire Elon Musk.

a fleet of the futuristic trucks worth more than $1.6m combined

To show off the trucks, that hit the market in November last year, renowned Tesla light show creator Simon Pollock curated an experience in Las Vegas over the weekend. It featured a fleet of the futuristic trucks worth more than $1.6m combined, which put on a light show in front of the Treasure Island Resort & Casino in Las Vegas.

The soundtrack was a remix of Kanye West’s hit song “Stronger,” and the trunks lifted up their trunks to add to the overall spectacle. Viewing discretion is advised if you struggle with flashing lights:

The Cybertruck’s official X page approved, responding to the video saying: “I think we could sell out a stadium with that show.” Comments from the general public were also overwhelmingly positive, and Simon Pollock let people know that he’s planning an even bigger spectacle for a Halloween special on October 26.

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Cambodian Union Leader Imprisoned for Casino Strike Vows to Fight on After Release

Union leader defiant

A union leader who was imprisoned for striking against the biggest casino in Cambodia has said she will continue fighting after her release.

Chhim Sithar was sentenced to two years’ imprisonment in May 2023 for incitement to commit a felony, relating to her part in the casino workers’ strike against Nagaworld in Phnom Penh.

more than 1,300 employees, mostly union members, were laid off

Sithar had been one of the leading figures of a strike which started in December 2021 after more than 1,300 employees, mostly union members, were laid off amid financial troubles during the COVID-19 pandemic.

She attended a demonstration before she was arrested and charged in January 2022. Several other union members were also charged, although all received suspended sentences.

Cambodia’s longest strike

Despite her imprisonment, Sithar remains undeterred and has vowed to continue the industrial action. Speaking to The Associated Press, she said: “We will continue holding strike action until we get a solution. That’s the position we have determined since the first strike.”

As long as there’s no justice, our struggle continues.”

“Unfortunately, as of today, after nearly three years, our workers have still not gotten justice. Therefore, as long as there’s no justice, our struggle continues.”

Nagaworld, which is owned by the estate of the late Malaysian billionaire Chen Lip Keong, is the largest casino in Cambodia and has been operating since receiving its license in 1994.

The strike, taking place in the capital of Phnom Penh, was far more high-profile and long-running than other industrial action in Cambodia’s history, which drew a harsh response from authorities. Seeking to avoid a demonstration at the prison, Sithar was released at dawn on Monday and escorted back to her home in Phnom Penh.

Union members attacked

Union members were subjected to police violence as well as other intimidation tactics, which Cambodian human rights campaign group LICADHO called “relentless efforts by authorities to suppress the strike — including sexual harassment, physical assaults, and judicial harassment.”

At the time of the strike, Amnesty International also condemned the response, saying union members were “prosecuted solely for exercising their basic rights to freedom of expression, association and peaceful assembly.”

Protests continued after Sithar was detained. In December 2022, more than 200 protestors accepted an offer of compensation, but the remainder fought on, despite the risks.

“No one wants to be in prison and I can say that we were afraid,” said Sithar. “But I want to make a comparison … Which one is the scarier? For me, the scare of losing the rights to a union, the scare of losing the right to unionize, is more scary than putting me in jail.”

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Atlantic City Casinos Heat Up in August as Gaming Win Climbs Nearly Five Percent

Atlantic City casinos needed a little bit of luck to cap off the unofficial end to summer, and August delivered for the gaming properties down the shore.

Atlantic City casinos gaming revenue
The Atlantic City casino skyline is seen from the Atlantic City Expressway. Atlantic City casinos enjoyed a strong August after a disappointing June and July. (Image: Shutterstock)

The New Jersey Division of Gaming Enforcement (DGE) revealed Monday that the nine Atlantic City casinos combined to win $294 million on their physical gaming floors in August. That’s a 4.9% year-over-year improvement, or about a $13.7 million increase.

Slot win climbed 5.3% to $221.6 million while tables won $72.4 million, a 3.8% increase. James Plousis, chair of the New Jersey Casino Control Commission, which oversees the DGE, said last month was the casinos’ best August in over a decade.

Monthly casino win finished the summer well, achieving its best August result in 10 years. Year-to-date casino win was relatively flat compared to last year, but it was still the second-best result in 11 years,” Plousis told Casino.org.

Through eight months, 2024 brick-and-mortar casino gaming revenue totaled more than $1.92 billion, a 0.2% decline from the same period in 2023. Both slot win ($1.42 billion) and table revenue ($495.2 million) were 0.2% lower.

iGaming, Sports Betting Growth

In-person casino gambling was flat through three quarters of 2024, but that wasn’t the case for online slots, interactive table games, and sports betting.

New Jersey’s iGaming sector continues to blossom, with internet gross gaming revenue (GGR) totaling more than $1.52 billion through eight months. The online win represents a 22.7% surge from 2023.

Oddsmakers also continue to grow their businesses. Despite a poor hold rate in August where oddsmakers kept just $62.7 million of the $698.8 million bet, down $33.3 million from August 2023, sportsbook revenue through eight months was $715.8 million. That’s almost 20% higher, or $117.9 million more, than the same period a year ago.

iGaming and sports betting were responsible for the state gaming industry expanding by 10.5% from January through August. 2024 marks the fastest that New Jersey GGR has eclipsed the $4 billion mark.

Overall business in Atlantic City remains stable, with operators gaining competitive advantage from a unique combination of impressive gaming options and first class in-person experiences. There is great opportunity for continued momentum in the fall season,” Plousis concluded.

Casino reps argue that the industry remains troubled as inflation and overall higher operating costs eat into their bottom lines. The DGE disclosed second-quarter reports last month that revealed that profits declined almost 2% despite a 1.3% increase in revenue.

iGaming Record

Online gamblers lost more money in August than they had in any month before, as the $198.3 million in iGaming GGR marks a new monthly record.

Internet slots and tables generated online win of $195.8 million. Online poker rake generated almost $2.4 million.

With most of the $62.7 million in sportsbook revenue derived from online operations, New Jersey’s online gaming industry is nearing monthly revenue generated at the nine physical casinos. The DGE’s sports betting breakdown showed that, of the $62.7 million won by oddsmakers last month, more than $57.7 million was generated online.

That brings total online gaming revenue in August 2024 to approximately $256 million, or $43 million less than what the physical casinos won.

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Boston to Study Encore Boston Harbor’s Impact on Nearby Youth

The City of Boston is seeking a research partner to conduct an institutional review of how a commercial casino in Everett is impacting youth.

Boston casino study Encore Boston Harbor
An Encore Boston Harbor shuttle picks up patrons downtown to be transported to the casino located in Everett. Boston city officials are commissioning a study to learn if the casino is negatively impacting area youth. (Image: The Boston Scope)

Wynn Resorts invested $2.6 billion to build an integrated resort casino in Everett. Encore Boston Harbor opened in June 2019 and has since become the top revenue-earning casino in the commonwealth.

Now, Boston city officials want to examine how the casino has impacted youth in Charlestown. The neighborhood is the oldest in Boston and is located on a peninsula north of the Charles River and just south of the Mystic River separating Boston from Everett.

Boston’s request for proposals (RFP) deadline is 11:59 pm EST this Wednesday, September 18. The city’s Office of Human Services will review the submissions and select a vendor to carry out the review. The winning bidder will be compensated no more than $177K for the contract that is to run from Oct. 15, 2024, to Oct. 15, 2025.

Study Focus

Jose Masso, the chief of the Human Services Office, says the focus of the casino study will be to determine if the existence of Encore Boston Harbor has shaped young people’s perception of and interest in gambling. The probe is also to conclude what sort of attitudes young people, defined as aged 14-25, have toward the Wynn complex.

The contracted researchers will examine what sort of community elements are in place to educate young people about the risks of participating in gambling and protective measures to make sure youth don’t gamble before they’re legally of age to participate.

A 2022 study commissioned by the Massachusetts Gaming Commission (MGC) found that the state’s allowance of three casinos has normalized gambling for younger people. The Charlestown probe will seek to solidify those findings and develop ways to make sure such normalization doesn’t lead to higher rates of problem gambling.

What role can the City play in protecting youth from being harmed or exploited by gambling?” the RFP asks in the project summary.

The younger the age at which a person first gambles has been proven to correlate with greater severity of gambling problems later in life, the International Journal of Environmental Research and Public Health concluded in a March 2023 report.

Gambling Prevalence 

It’s been several decades since commercial casinos were largely confined to Nevada and Atlantic City. Today, more than half of the adult population in the Northeast lives within 25 miles of a casino.

Social science experts say the three As — accessibility, availability, and acceptability — are “ecological predictors” of gambling participation. Paulette O’Gilvie, a doctor of philosophy at Capella University’s Department of Human Services, wrote in a 2022 study that casinos in urban settings, such as Encore Boston Harbor, might do more harm than good.  

“The review found that urban casinos are typically placed in low socio-economic communities with some existing gambling culture, socio-economic improvements are promised to existing disadvantaged communities prior to the adoption of casinos, but modest economic benefits realized in urban casino neighborhoods are unsustainable, and increased accessibility and availability of urban casinos due to proximity could increase casino participation, which in turn could potentially increase gambling-related problems,” O’Gilvie wrote in her report titled, “The Impact of Casino Proximity on Northeast Urban Communities.”

Boston’s RFP for the Encore study says the majority of patrons who visit the Wynn casino come from nearby communities, including Charlestown.

“As the casino works to make itself even more enticing and accessible, the impact this will have on young people is not well known,” the RFP concluded.

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New Jersey Supreme Court Rejects Emergency Request to Halt Casino Smoking

The New Jersey Supreme Court has rejected an emergency relief request from plaintiffs challenging the state’s ongoing allowance of smoking inside Atlantic City casinos.

Atlantic City casino smoking lawsuit New Jersey
Atlantic City casino workers who want indoor smoking outlawed argue that their rights to a safe workplace are being violated. The New Jersey Supreme Court will soon rule whether that claim has merit. (Image: AP)

The state’s highest court ruled the lawsuit challenging the exemptions included in the 2006 Smoke-Free Air Act that allow tobacco use inside casinos and parimutuel wagering facilities “shall proceed in the ordinary course.” Plaintiffs argue that the 2006 loopholes violate casino workers’ rights to a safe workplace afforded to them under the New Jersey Constitution.

The United Auto Workers (UAW) and Casino Employees Against Smoking Effects (CEASE) asked the high court for emergency relief as the bench considers whether to accept the case. The request was for the court to issue an injunction to immediately halt casino smoking inside the nine properties down the shore.

“Applicant’s request for emergency relief in the form of a temporary injunction is denied,” the application response signed by a clerk for Justice Anne Patterson read. “The matter does not warrant adjudication on short notice. The applicant’s appeal shall proceed in the ordinary course unless subsequently ordered accelerated by the Appellate Division.”

Case Continued

The UAW represents table game dealers and slot machine attendants at several Atlantic City casinos. CEASE began as a grassroots coalition of casino workers opposed to indoor smoking, but has since grown to become a powerful ally of the nationwide movement for clean indoor air.

The Americans Nonsmokers’ Rights (ANR) Foundation is the largest nonprofit in the country seeking to eliminate indoor smoking where it remains allowed. The casino industry remains one of the largest business sectors where indoor smoking continues to be prevalent. Fourteen states still allow smoking inside commercial casinos.

The ANR has helped CEASE expand and organize chapters in Pennsylvania, Rhode Island, Virginia, Kansas, Nevada, and Mississippi. Those states are among the 14 that allow cigarettes and cigars inside casinos.

In the Atlantic City casino lawsuit, Mercer County Judge Patrick Bartels ruled in August that the case should be dismissed. Bartels said the plaintiffs’ allegations that their rights to a safe workplace are being violated are meritless because the 2006 smoking law doesn’t impede their freedom to find employment in a smoke-free environment.

Legislative Solution 

Gov. Phil Murphy (D) remains supportive of eliminating the indoor casino smoking exemptions but wants the change to come through the legislature instead of the courts. New Jersey Republicans last week said they’d get a bill to the governor’s desk if Democrats, who control both legislative chambers, want to amend the 2006 smoking law.

In previous legislative sessions, bills to close the smoking loopholes gained enough support by way of co-sponsors to get the statutes to Murphy. However, Democratic leadership stalled floor votes after the casinos and a larger union, Unite Here Local 54, which represents nongaming resort workers, argued a smoking ban would hurt revenue and lead to thousands of layoffs.

Local 54 represents employees like food and beverage staff, housekeepers, and bellmen.

The New Jersey Supreme Court typically determines whether to grant a petition review within 30 days, meaning its decision regarding the UAW and CEASE appeal should be issued within the next two weeks.

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Islamic Political Party Vows to End Gambling in Home of Genting’s Malaysia IRC

The Islamic political party making huge federal and territorial gains in Malaysia has vowed to voters it will end gambling in Pahang, home of the integrated resort casino (IRC) Resorts World Genting, if it wins the state in general elections.

Gentings’ shares nosedived in 2022 when Mal Parti Islam Se-Malaysia (PAS) became the biggest party in federal parliament after crushing the GE15 national elections. With four of Malaysia’s 13 states already under its control, PAS now wants to take Pahang in GE15 and is upping the voter ante.

According to the South China Morning Times, the party is “tapping into concerns by the country’s Muslim majority over gambling.” The Koran forbids gambling.

Gambling is harmful, so we have to close it.”

The SCMT cited a deputy at a PAS annual gathering as telling voters in Pahang that, if they want an end to gambling in their state, they should vote for the rising political power. “Gambling is harmful, so we have to close it,” stated PAS’ Andansura Rabu.

Rabu, however, said the eradication of gambling wasn’t about religion, but rather a “social issue.” Genting’s Resorts World casino is believed to have contributed approximately 5 billion ringgit ($1.16bn) annually to government coffers pre-COVID-19.

While Genting shares have recovered since the 2022 slump, the rising tide of support for the party ahead of the GE15 elections, which must be held before 2028, poses a real threat to Kuala Lumpur-based Genting’s Resorts World interests in Pehang.

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