SharpRank’s weekly updates on Compliance, Audit, Legislation, Ethics, & Regulation within the Sports Betting Industry.
Click here to read our latest blog post: “CHAOS”: Consolidation Of North America’s Gaming Market
Topics 7/31/24:
- Nevada Gaming Board Enhances Regulations and Systems
- Nebraska Eyes Online Sports Betting to Ease Property Taxes
- Bally Bet Launches in Maryland, Boosting Education Funds
- NCLGS to Standardize U.S. Online Gambling Laws with New Model Bill
- Tennessee Fines Three Operators for Betting Violations
- NGCB Orders Playgon Interactive and Bitrate Productions to Cease Unlicensed Gaming
- English Football Leagues Introduce New Gambling Sponsorship Code
Nevada Gaming Board Enhances Regulations and Systems
The Nevada Gaming Control Board is continuing efforts to refine its regulations through new initiatives and revisions, aiming to strengthen the industry and contribute significantly to the state’s general fund. During a recent presentation to the Joint Interim Standing Committee of the Judiciary, Senior Policy Counsel Sebastian Ross, alongside Chairman Kirk Hendrick, outlined these priorities ahead of the 2025 legislative session. The board plans to propose two bill drafts shortly, though details were not disclosed. The Control Board and the Nevada Gaming Commission have already repealed 13 regulations, revised eight, and updated three surveillance standards, with six regulations recently approved. They are also replacing their technology operating system, a process expected to take several more months. Key regulatory changes include simplifying tax collection, updating the process for listing excluded persons, establishing technology approval guidelines, expediting slot machine evaluations, and enabling field test procedures by board agents. These updates aim to maintain the industry’s prosperity, evidenced by record gaming win and tax collection figures. Gaming taxes currently account for 18.2% of the state’s general fund revenue, second only to sales tax. The board employs 363 full-time staff across various divisions, including enforcement, auditing, investigations, and technology.
Nebraska Eyes Online Sports Betting to Ease Property Taxes
Nebraska legislators have initiated a special session focused on reducing property taxes, considering the legalization of online sports betting as a potential solution. Legislative Bill 13 aims to authorize online sports wagering, with 90% of the generated tax revenue dedicated to property tax relief, addressing the state’s heavy reliance on local property taxes for public education funding. If passed, the bill would significantly increase funds for property tax relief, potentially generating between $4.5 million to $5.8 million annually. The proposed tax distribution structure allocates 90% to property tax relief, 3.5% to the Racing and Gaming Commission’s funds, and 3% to the Compulsive Gamblers Assistance Fund. This move could pave the way for online casinos in Nebraska, which are projected to generate substantial additional tax revenue.
Bally Bet Launches in Maryland, Boosting Education Funds
Maryland has added Bally Bet Sportsbook as its newest online sports betting operator following successful testing and approval by the Maryland Lottery and Gaming Control Commission. Bally Bet, already operational in eight other states, is now live in Maryland, joining a competitive market with 13 online sportsbooks and 12 retail sportsbooks. Despite struggling to gain significant market share in other states, Bally Bet will contribute to Maryland’s Blueprint for Maryland’s Future Fund, which supports public education.
NCLGS to Standardize U.S. Online Gambling Laws with New Model Bill
The National Council of Legislators from Gaming States (NCLGS) is crafting a model bill to standardize online gambling legislation across the U.S. The proposed framework, unveiled by former Florida State Senator Steve Geller, addresses key areas such as revenue management, responsible gaming, impact on land-based casinos, advertising practices, licensing, age restrictions, and data sharing. The draft suggests a tax rate of 15% to 25%, aligning with current state averages, and aims to provide a comprehensive approach for states considering online gambling laws. The bill will undergo a public review process, with the final version expected to be presented in December 2024. The initiative reflects the growing interest in online gambling’s revenue potential, despite concerns about its impact on traditional casinos, which evidence suggests is minimal.
Tennessee Fines Three Operators for Betting Violations
Tennessee sports betting regulators have recently imposed fines on three operators due to various violations. BetMGM was fined $25,000 for allowing customers to place bets on soccer penalty cards, which is prohibited in Tennessee. Action 24/7, which only operates in Tennessee, faced an $18,000 fine for failing to prevent self-excluded bettors from depositing and betting, marking a repeat issue for the operator. Penn Interactive, operating the ESPN Bet app, was fined a total of $12,000: $3,000 for sending marketing messages to self-excluded bettors and $9,000 for failing to enforce a self-exclusion. These fines were announced during a recent committee meeting, reflecting ongoing compliance challenges in the state’s sports betting sector.
NGCB Orders Playgon Interactive and Bitrate Productions to Cease Unlicensed Gaming
The Nevada Gaming Control Board (NGCB) has ordered Playgon Interactive, Inc. and its affiliate, Bitrate Productions, to cease all unlicensed live gaming content operations by July 26, threatening civil or criminal penalties for non-compliance. The NGCB alleges that Bitrate Productions, which used Las Vegas dealers for live dealer broadcasts, and Playgon Interactive, which distributed these broadcasts to global online casinos, lacked proper licensing. Playgon CEO Darcy Krogh expressed disappointment over the sudden decision, citing the detrimental impact on their business and local employees. Nevada maintains strict regulations on online gambling to protect its land-based casino industry, reflecting its broader reluctance to fully embrace online casinos.
English Football Leagues Introduce New Gambling Sponsorship Code
The Premier League, EFL, FA, and Women’s Super League have introduced a new voluntary code of conduct for gambling-related sponsorships, effective from the 2024/25 season. This code outlines four key principles: protecting vulnerable individuals from gambling-related harm, ensuring responsible promotion and education, reinvesting sponsorship revenue into football infrastructure and community programs, and maintaining the integrity of football competitions. The move follows the Premier League’s decision to end betting sponsorships on matchday shirts by the 2025-26 season, leading to a surge in temporary gambling deals with clubs before the new regulations take effect.
Click here to read our latest blog post: “CHAOS”: Consolidation Of North America’s Gaming Market
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