Category Archives: Online Gambling

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The U.S. online sports betting industry is losing a lot of money as more than a dozen companies compete for market share. Thirty-two states have now moved to legalize the business in some form.

Lightshed Partners analyst Rich Greenfield wonders whether the ultimate size of the market and its profitability will be enough to justify the market values of leaders in the field.

The dirty little secret is that even as players come out of the industry, there is still a limit to the sports betting market sizeone that likely does not alone justify the valuations of the top players, Greenfield wrote in a post on Thursday.

Greenfields view is that companies will need to seek other opportunities such as iGaming, or online casino games like blackjack. But state approvals for iGaming have been slow and likely will continue at that pace, he wrote.

The industry is spending heavily on marketing and advertising, including free bets to new users, as companies vie for market share.

The top participants are DraftKings (ticker: DKNG) and FanDuel, which is 95% owned by Flutter Entertainment (PDYPY). DraftKings and FanDuel have leveraged their success in fantasy sports to control over 50% of the online sports betting market.

Other leading players are Bet365, which is private, BetMGM, a 50-50 partnership of MGM Resorts International (MGM) and Entain (GMVHY) and Barstool Sportsbook, which is owned by Penn National Gaming (PENN).

Industry leader DraftKings, whose shares were down 3 cents Thursday, at $63.36, is valued at $25 billion. The company is nowhere near profitability, having lost $652 million in the first half of 2021.

Greenfield noted that DraftKings has spent nearly $800 million in marketing and related expenses in the past 12 months. Smaller participants are ramping up spending including Caesars Entertainment (CZR) and Wynn Resorts (WYNN).

DraftKings CEO Jason Robins told Barrons last month that the companys losses, reflecting marketing spending in new markets, obscure the underlying profitability in more established ones.

We like to explain to people its a state-by-state thing, Robins said. Weve said we will get to profitability in a state in a two-year to three-year time horizon. And profitability will grow from here.

He noted that the business in New Jersey, an early and large market for DraftKings, moved into the black last year. That makes people comfortable that each state will get profitable.

He said that investors want the company to invest in new states that allow online sports betting. The company said earlier this year that the contribution profit in New Jersey was $8 million in 2020 and it projected $65 million in profits in the state for 2021.

Morgan Stanley analyst Thomas Allen wrote recently that the U.S. and Canadian online sports gambling and iGaming could generate a combined $20 billion in revenue in 2025 and $5 billion of earnings before interest, taxes, depreciation, and amortization, or Ebitda.

That is an optimistic assumption. Allen noted last month that many investors think theindustry is too competitive and the business will never be profitable.

Write to Andrew Bary at andrew.bary@barrons.com

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Why Online Sports Gambling Companies May Never Earn Much Money - Barron's

LARCHWOOD, IOWA (KELO) In-person sports betting started today in Deadwood. Similar bets have made for two years about 405 miles east of Deadwood at a casino near Larchwood, Iowa.

Sports betting at Grand Falls Casino has netted the state $234,133 since sports betting started in August of 2019, according to Play IA.com .

State officials in South Dakota have said the state will make money with sports gambling. Based on Iowas results, thats a safe bet.

South Dakotas approach differs from Iowa and has more pieces.

The state will collected a 9% tax on gaming. One percent of that 9% will go directly to the states general fund, said Mike Rodman, the executive director of the Deadwood Gaming Association.

The state gaming commission will subtract expenses from the remaining 8% which will still leave revenue to be split between several entities.

Once the state gaming commission subtracts its expenses the remaining revenue is split as follows: 40% to the state tourism department, 10% to Lawrence County and 50% to the Deadwood Historical Preservation Commission with the city of Deadwood. Once the the Deadwood commission receives $6.8 million, the split formula changes to this for what remains: 70% goes to the states general fund, 10% to other municipalities in Lawrence County, 10% to school districts and 10% back to the Deadwood commission.

Unlike Iowa, South Dakota will not have online sports betting.

South Dakota is a conservative state, Rodman said. The state is using a go slow approach to sports gambling, he said.

The gambling industry identifies the handle as typically the amount of money bet on sports over a certain period of time.

Based on that definition, the majority of sports betting is in person at Grand Falls. The total handle is $33 million since 2019. The breakdown for online handle betting is $12.39 million and its $20.6 million for retail handle, or in-person betting. The two total the $33 million. The figures are from PlayIa.com.

In July of 2021, in-person sports betting still outpaced online betting by more than $50,000.

But, according to the gaming industry, online sports betting is a leader in the states with the most sports betting.

As of Sept. 1, New Jersey had nearly $17 million in sports betting, according to Legal Sports Report. About 80% of its bets are online bets.

The revenue from sports betting is only part of Grand Falls revenue.

The casino generated $7,177,811 in slot machine revenue, for example.

Deadwood and the state are using an Oxford Economics study to estimated the revenue generated by sports betting, Rodman said. The American Gaming Association shared the Oxford study which said that an estimated $6.1 million in direct revenue would be generated by sports betting. The study said another $22.1 million in overall gaming revenue would be generated, Rodman said.

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You can bet on it; Grand Falls had sports betting before Deadwood - KELOLAND.com

The casino should have a software program that will be processing trades and a license agreement with a game programmer in order to allow each player to play their own matches. It sounds simple, but it is not. It is getting more complex as technology advances at a gradual pace. Clients are becoming more tech-savvy and searching for optimal channels of supply, but also integration to ensure smooth transitions between all the platforms.

You will quickly forget about optimization and software when you consider all the bonuses and flashy games offered by each online casino. These wallflowers in the world of online gambling serve a crucial function. But, you should always keep it in mind for several reasons which we will explain in the article below.

Individuals will abandon an internet casino if they see excessive cashout times or poor site quality. This is a clear indication of how crucial applications are. Operators spend a lot of time, effort and money to create a platform that loads matches immediately, processes payments securely and quickly, and allows them to provide customer service without any hassle.

Players may be discouraged from using the site if they have limited choices of games or poor cellular functionality. This is where it becomes crucial to find the best baccarat programmers. The casino may either have their own software or contract with a game programmer to include their matches. As you can see, the first option requires a lot more investment. Therefore, most casinos outsource their sports programs to software suppliers.

You will find the exact same games at many casinos because they are all powered by the same application companies. They offer a wide range of matches in every type of game, including table and card matches.

The application platform is the core of any internet casinos functionality. Gambling websites would normally sign a licensing agreement to a casino program developer in order to use their matches. If you are interested in playing baccarat online, consider this: the more baccarat software suppliers, then the more matches. It isnt just about games.

The entire program system is responsible for supporting the casinos operation, including calculating withdrawals and payments, engaging in promotions, and calling customer care. It is important that the casinos mobile-friendly layout and interface be optimized to allow for uninterrupted, immersive gaming.

While slots will dominate all casinos, the table and card games will not be far behind. Casinos have featured online live roulette in all its variants American, European, and French with all the La Partage rules along with Blackjack, which has many variations that enhance the standard 21 gameplay. A sport might have additional guidelines, side bets, or other attributes depending on the programmer. This ensures that everyone has an option. The odds of huge winnings can be high if you are able to place your first wager.

Download programs were the best alternative to playing online games back in the afternoon. They not only provided more matches but also gave you a realistic gaming experience complete with high-quality audio and images. They are stored on your computer so you can expect no issues during the gameplay and no loading times.

However, they require some distance from your computer or notebook. This may make it difficult for those who are only interested in trying new casinos. Although download times are much faster, you still have to wait for the program to be downloaded and disabled if it is not up to your expectations. You can only play the casino apps on the downloaded version.

Flash applications, which are considered less special than the download versions, are becoming more popular due to the freedom it offers. You wont be able to access the entire casino system, but it will store temporary files. The major developers of casino apps are currently working to improve their Flash versions, which are lighter and faster. You can access more games through your browser on any computer or notebook as long as you have an internet connection.

NetEnt is one of these game programmers that launches only in Flash. The quality of the images, animations and audio are unmatched in this business. The dream of having better-looking matches and more efficient download customers is now a reality. It is much easier to try as many websites as possible with the instant-play edition. If you still have a favorite casino in mind, you can test it in-browser before you decide to download it.

The slots division is particularly complicated because it offers a wide range of video and 3D slots. Microgaming is a prolific gaming company with over 1000 matches. Some of the biggest names in the market allow deals with other studios. Branded titles are extremely fun and completely based on chance. You can win huge jackpots at very low stakes without any skill or knowledge.

There is one business model that will include all casinos in the best experience which can facilitate a seamless transition with minimal effort on the clients part. The Omnichannel experience includes all channels used by the casino for supply, including land-based gambling halls and sites, native cellular programs, and social networking platforms. The popular demand for the Difference among these stations is taken into account by betting operators who are using the integrated strategy to bring together those stations and instruments that the consumer will use.

According to a 2016 study, one of the main factors that clients consider when choosing a gaming site is their ability to gamble offline. Cross-launching of games by casinos for mobile, desktop, and gambling machines is a common practice. This allows clients to meet their expectations, particularly millennials who want to use both brick-and-mortar and electronic sockets to place bets. These games are a huge success and outperform single-channel games.

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Why does software matter in the online casino industry? - Techiexpert.com - TechiExpert.com

The online casino industry has been growing at a rapid pace. However, many online casino operators have been taking a slow approach to expansion, as they feel the market is already saturated with operators offering a wide variety of games. And they are right there are so many online casinos to choose from, and people are overwhelmed when it comes to deciding where to play. But thats why https://www.casinoreviews.net.nz/ exists; this site is the place to look when you need information on top-rated online casinos and can also help you decide which game suits you best.

The sports betting industry is also one of the most popular forms of online gambling, and sports bettors are taking advantage of this growing market. If you are interested in sports betting, chances are you have already thought about whether it is a good investment. Is sports betting a safe investment? Is it a prudent investment to make? Sports betting offers the opportunity to make a good return by taking advantage of the legal sports betting markets.

During big sporting events such as the European Championship or the FIFA World Cup, the online betting sector is particularly active. Horse racing and greyhound racing are two other activities that are popular among gamblers. In reality, big events are used by the bulk of online gaming businesses to advertise their brand. Bwin is an example, with its sponsorships of football teams such as AC Milan and Real Madrid. Other firms, like Betsson, are more focused on breaking into important areas and establishing themselves as market leaders, either via better service or by attracting the majority of players.

In the United States, bookies may legally operate in New Jersey, Pennsylvania, and Nevada, with Pennsylvania being the biggest and most recent to allow and regulate internet gambling. Sports betting, internet poker, and online casinos are now allowed under the new legislation.

New Jersey, on the other hand, is the countrys largest marketplace for regulated internet betting. When it comes to online gambling, Canada has a hugely uncontrolled industry. Meanwhile, Mexico is reviewing its gambling laws. The area is attempting to get control of the online gambling industry to align itself with the rest of the continents nations.

During the past several years, innovators and market leaders have focused on mergers. They aim to increase market share and profit margins. The merger of Betfair Plc and Paddy Power Plc became Paddy Power Betfair Plc is an example of this. Ladbrokes Coral Group Plc was formed when Coral and Ladbrokes merged.

Many online betting companies now rely on third-party software providers such as Playtech. Others would rather create their own solutions. For example, 888poker made a lot of money by developing its online gambling technology and software. The main companies in the online gaming business, on the other hand, provide comparable or almost identical goods and services. As a result, the industry is very competitive, with a strong focus on appropriate marketing and price.

Online sports betting has seen tremendous growth in recent years, with many online sportsbooks luring in new players with attractive promotional deals and high-roller bonuses. Now, it seems, the trend is set to gain even further traction, with sports betting taking over the online gaming industry. From the advent of real-money sports betting in New Jersey, to the explosion of sites like Paddy Power and Marathonbet, the online casino industry is a fast-growing sector, and a huge portion of that growth is being driven by sports betting.

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Sports Betting is the Fastest Growing Segment of Online Casino Industry - American Football International

Australian senators have heard impassioned pleas by financial counsellors and gambling reform groups to ban the use of credit cards for online betting.

The use of credit cards for online wagering platforms like Sportsbet could be banned if the proposed Interactive Gambling Amendment (Prohibition on Credit Car Use) Bill 2020 passes.

A Senate committee heard submissions on Friday as it prepare to hand down its recommendations.

Under the Bill, its suggested Australia follow the United Kingdom, which banned credit cards for all forms of remote wagering last year.

Proponents of the Bill say the ban would ensure problem gamblers didnt use money they didnt have and push themselves into debt.

Overwhelmingly, stakeholders who fronted the committee on Friday supported the ban.

Dr Mark Zirnsak from the Alliance for Gambling Reform told the committee that passing the bill would be a significant step forward in addressing gambling harm.

The legislation is absolutely necessary, he said.

Lauren Levine from Financial Counselling Australia said she and other financial counsellors saw first-hand the significant harm credit cards could have on those with gambling problems, particularly in the Covid-19 context.

We know a lot of people are struggling in Covid, but other countries have done things with gambling in Covid, Ms Levine said.

Spain banned gambling advertising during lockdown, Sweden introduced a national gambling ID where people can only spend a set amount over all forms., the UK regulator introduced guidance for wagering operators.

Weve done absolutely nothing, and gambling has increased. Sportsbets profits were up 108 per cent to the six months to June 30 last year.

Andrew Whitecross from the Australian Institute of Family Studies said the Bill was not proposing people stop engaging in gambling activities, but it would stop problem gamblers ability to act impulsively and to chase losses.

In that sense, its trying to provide some friction in peoples gambling behaviour, he said.

It would benefit some people and could reduce their propensity to engage in risky behaviours without stopping them from engaging in gambling if they want just in a more planned way.

There were also concerns about e-wallets, including PayPal, which can be filled using credit cards.

The committee will make its report on October 8.

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Push to ban credit cards in online gambling - PerthNow

The Swedish Trade Association for Online Gambling (BOS) has requested that the Government lifts the temporary restrictions for online casinos. The plea - by letter - asked for this to become effective from 29 September instead of the later date of 14 November.

The letter was sent after the Government held a press conference on 7 September announcing all general pandemic-related restrictions would be lifted from 29 September, therefore the pauses on online casinos should also.Gustaf Hoffstedt, Secretary General, The Swedish Trade Association for Online Gambling, commented: "The main argument from the Government for the restrictions was a concern that increased time spent in the home during the pandemic would lead to increased gambling problems.

That did not happen, it would turn out. Now that the Swedish Public Health Agency is also lifting the recommendation to work from home from 29 September, we believe that the Government should lift the temporary restrictions for online casinos on the same date in the name of consistency.

During the regulation period there has been no evidence or support that gambling problems linked to online casinos would have increased during the global pandemic, according to BOS. Studies show that the number of Swedish gaming consumers increased during the first phase in the coronavirus outbreak but the actual size of the average bets decreased.

With the Government's ambition to return Sweden to a normal situation, BOS has requested that it terminates the temporary restrictions on gambling regulation together with the termination of the general pandemic restrictions, thus both ending on 29 September.

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BOS requests a lift on online gambling restrictions in Sweden - Gambling Insider - In-depth Analysis for the Gaming Industry

Australian gambling company Tabcorp says it will not oppose the banning of credit card use on online gambling platforms, but says that banks should be responsible for enforcing the ban, as reported by ZDNet.

Appearing before the Parliamentary Joint Committee on Corporations and Financial Services, Tabcorp CEO David Attenborough said that the financial sector is best equipped to implement such a ban, given its infrastructure and customer data available.

I'm not sitting here saying I accept a ban on credit cards for gambling. I'm saying if the committee decides it's going to ban it, we're not going to oppose it for online wagering, said Attenborough.

The CEO added that only 14% of online wagering transactions use a credit card, with the majority of that group using it responsibly and for convenience.

Commenting on the potential ban of credit card use, Attenborough noted: If that is the solution the committee chooses to do, we will support that, but that legislation needs to be applied to the financial sector because they're best set up to be able to implement that.

If we got more information from the banks that a card was suspect, we could shut it down, he added. If the banks notified us that this was a problem, we would be able to stop dealing with that problem, but this flow of information doesn't happen.

While the use of credit cards in online wagering with Tabcorp is declining, Attenborough did admit that a problem gambler can always find ways of getting around blocks or bans, suggesting that a national regulator is the only way of fixing the issue.

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Tabcorp: Banks should be responsible for online gambling credit card bans - Gambling Insider - In-depth Analysis for the Gaming Industry

The overall gaming industry in India is expected to grow exponentially in the upcoming years. The gambling sector also plays a major role in the expansion of the overall gaming industry in the country. When we take a look at the factors that will affect the growth of this sector, we will notice that changes in the regulations are also a major contributor to the development of the gambling scene.

Based on the results from a recent report of Beyond the Tipping Point: A Primer on Online Casual Gaming in India, the gaming field in the country is expected to reach INR 290 billion ($3.91 billion) by 2025. Compared to this years market size of INR 136 billion ($1.83 billion), these estimates show an expected growth of 113%. It should be noted that these numbers include casual gaming, casino and card gambling, and fantasy sports.

Factors that Have Affected the Growth of the Gaming Industry

It was not that long ago when the gaming sector in India was exclusively reserved for players who owned expensive consoles. Nowadays, however, with the deeper integration of online and mobile gaming, the sector is enjoying a huge expansion. Currently, there are over 400 gaming companies or start-ups that have generated enough products to surpass the console-based sector in India.

As games can now easily be accessed online and on various handheld devices, there has been a huge surge in the number of active online players between the ages of 18 and 24. This age group represents about 60% of all online gamers in the country, contributing to the increasing popularity of online gaming in India.

Another factor that also fuelled the growth of the gambling sector and the overall gaming industry is the global pandemic. As the whole country was forced to lockdown due to the disturbingly increasing numbers of Covid cases, more people resorted to online gaming. A certain gaming platform soared to newer heights as it enjoyed more than 100,000 new users every day during that period. Meanwhile, many brick-and-mortar casinos started their online platforms, catering to the players who were constantly stuck at home.

Online gambling has also earned the attention of Indian players as it offers localized content that can be easily accessed. Many virtual casinos cater specifically to the preferences of Indian players, providing games like Andar Bahar, Rummy, Teen Patti, and Texas Holdem Poker. Often the live-dealer versions of these games are hosted by dealers who are fluent in local languages, allowing Indian players to fully immerse themselves in the gameplay.

Online gambling requires making virtual payments with ease and still feel protected while doing so. As the fintech payment solutions in India are constantly developing, ensuring players smoother and more secure transactions, this has also contributed to the increasing popularity of online gambling. Indian players can handle their online casino accounts via solutions such as Google Pay, PayTM, and other digital payment methods that many find convenient to use.

Regulations that affect the Gambling Industry Growth

One of the regulations that contributed to the growth of the local gaming industry is the ban on well-developed international iGaming companies. This type of legal action gave Indian gaming companies more opportunities to develop and grow their presence on the local online gaming scene. The government of India has launched its Armanirbhar Bharat program to help the country become more self-sufficient. Supporting the local gaming industry and the development of games inspired by Indian culture is also a part of that program.

Another factor that will play a major role in the future development of the gambling industry in India is the legal framework that regulates the sector. As there is no common consent to the way gambling should be regulated in the country, different states have their own gambling laws and regulations. The majority of the states are still following the outdated Public Gambling Act of 1867. Not only is that law incapable of regulating online gambling as it did not exist back in the day, but it also lacks a clear definition of games of skill.

While most states have deemed bets on horse races and fantasy sports legal, many states do not permit playing Rummy and Poker as they fall under the category of skill-based games. This is not the case across all states in India, however, as they do not consider them as games of skill. This lack of legal unity can significantly slow down the growth of the gambling industry in the country. This is why there is a serious need for change in the current laws regulating the gambling in India.

There have been some signs of a possible implementation of a unified legal framework. In December 2020, the governments policy think tank NITI Aayog proposed a centralized legal framework to regulate fantasy sports platforms in India. Rather than focusing only on fantasy sports, the policy institute was asked to introduce a self-regulatory body that will oversee the entire skill-based gaming industry in the country.

Estimates for the regulated gambling market in India by 2025 predict annual income of $1.4 billion from direct and indirect taxes. These numbers are enough to motivate policymakers to review the current gambling laws and introduce a legal framework that is up-to-date with the developing gaming sector in the country.

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

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Regulations affecting gambling industry's growth in India: All you need to know - Free Press Journal

Forbes reported earlier this year that the U.S. sports betting market generated $1 billion in revenue in 2020, and that number is projected to grow sixfold by 2023. | Paul Sancya/AP Photo

OAKLAND Major gambling players intend to ante up $100 million for an online sports betting initiative that would fund homelessness and mental health efforts, adding a new wrinkle to the 2022 battle over California's lucrative gaming future.

Proponents told POLITICO they will file the California Solutions to Homelessness and Mental Health Support Act" today with the state attorney general's office. Top backers include DraftKings, FanDuel and BetMGM, and they will establish a campaign committee today, according to campaign manager Dana Williamson, a veteran political strategist who advised former Gov. Jerry Brown.

Though 21 states plus Puerto Rico and the District of Columbia now allow online sports betting after a 2018 U.S. Supreme Court ruling, the California ballot measure would be the first in the nation to dedicate a permanent revenue stream for homelessness and mental health programs.

Permanent solutions require a permanent funding source. The California Solutions to Homelessness and Mental Health Support Act will raise hundreds of millions of dollars annually to fight homelessness and expand mental health support in California by allowing regulated entities to offer safe, responsible sports betting online," Williamson told POLITICO in a statement.

The potential windfall from such a measure could be huge. Forbes reported earlier this year that the U.S. sports betting market generated $1 billion in revenue in 2020, and that number is projected to grow sixfold by 2023.

Proponents insist the measure does not conflict with a sports-betting initiative backed by California gambling tribes that is already headed for the 2022 ballot. That initiative would allow for in-person sports betting at tribal casinos and racetracks. Backers of the new proposal called their measure "complimentary" to the tribal one.

Any online sports betting operator seeking to participate in the California marketplace must do so by partnering with a California tribe," Williamson said, noting that a portion of the measures revenue is dedicated to uplifting Tribal communities."

Still, the initiative could open a third front in the battle for control of a lucrative new gambling sector. Native American tribes have already donated roughly $12 million to qualify the measure that would give them control over sports wagering. Meanwhile, card rooms have spent $450,000 so far to pass a rival proposition giving them a slice. Tribes and card rooms have long battled over gambling revenue and turf.

Given how many of Newsom's consultants are tied to the new initiative, the effort also risks cleaving Newsom from Native American tribes, one of his most financially powerful supporters. Tribes have channeled more than $3.2 million so far to beating back the recall, accounting for some 5 percent of the roughly $60 million Newsom has raised.

Williamson, who served as Browns cabinet secretary, heads a powerhouse group of California political players hired to get the measure across the finish line. Also involved: Bearstar Strategies, the political consulting team behind Newsom, Kamala Harris, U.S. Sen. Alex Padilla and San Francisco Mayor London Breed, among others. So is Nathan Click, the former communications director for Newsom and current spokesperson for the anti-recall campaign and David Binder, the pollster for Newsom and the presidential campaigns of Barack Obama.

With three separate proposals potentially headed to the ballot, the issue could be resolved next summer in the state Capitol. Lawmakers could craft a compromise measure that would prompt tribes, card rooms, race tracks and the sports betting giants to withdraw their proposals before next fall. But the interest groups have tried for years to get their own versions of bills through the Legislature without success.

It was not immediately clear how the new proposal would divvy up revenues between mental health services, homelessness and tribes that affiliate with online gambling firms.

The initiative calls for 85 percent of total revenue to go to homelessness and mental health, with 15 percent going to tribal communities, proponents say.

Sacramento Mayor Darrell Steinberg said he welcomes the measure. As a Democratic assemblymember, Steinberg spearheaded the 2004 initiative that increased income tax rates on millionaires to pay for mental health services.

It is a rare occasion when any initiative seeks to dedicate hundreds of millions of dollars or more for the cause," he said in an interview. "Funding mental health programs and fighting homelessness is currently subject to the whims of the economy."

Backers could face opposition from those concerned about expanding gambling access in California, as well as gambling interests that get cut out of proceeds. Proponents say the new initiative strictly limits online betting to individuals 21 years of age or older, using the most advanced and proven technology to enforce restrictions, and it imposes fines of up to $100,000 for any operator who knowingly accepts bets from minors."

The initiative also gives the California Department of Justice "broad power to regulate online sports betting in California to ensure there is no corruption or illegal activity in the market," proponents say.

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Sports gambling giants back new online betting initiative in California - POLITICO Magazine

Chinese authorities are coming down hard on online gambling in China. Similar events are starting to happen in Cambodia, raising questions as to how all of this will end

It is 1:30pm, Sotheary (not her real name) is sitting on the wooden floor of her house, facing a mirror propped against the wall as she combed her hair, allowing it to fall on her shoulders.

She finishes her make-up with some blusher, slaps on a liberal amount of red lipstick, and checks herself in the mirror one last time.

The make-up has to be heavy, so we look good on camera, she quips, grabbing her handbag on her way out.

The 26-year-old is off on her motorcycle, manouvering through a warren of potholed dirt paths to the main road of Sihanoukvilles city centre, promptly arriving at her workplace, a beach hotel where she enters through the back door, evading attention.

Five floors above, a supervisor looks at her watch, keeping a hawk eye over the quiet operation before her. Spread across the dark carpet are casino tables with overhead video cameras pointed at female dealers or croupiers, as they are known, dressed in black corsettes, bosoms pushed up.

All the time smiling, the croupiers deftly deal cards in a game of baccarat, black jack or Texas holdem for players on the other end of the spectrum who convey instructions and place bets via functions on the site.

This was last year. Two months ago, Sotheary lost her job as her employer refused to renew her contract along with a few others because their customers were always winning.

I am still looking for another job but most of the casinos are closed. Being a croupier is the only job I know how to do best, said the mother of one, who remains unemployed.

Presently hit by Covid-19, casinos in Cambodia are shut in compliance with the lockdown. However, it has become common knowledge that online gambling, whose websites feature a myriad of live casino games as well as slot machines, roulette, sports betting, lottery and poker, persisted in the shadows despite the government ban on January 1 last year.

Recent news reports of crackdowns on the activity in non-descript premises in Phnom Penh including Daun Penh and a massive raid by the military police in a condominium tower in Boeung Keng Kang 1 with the arrests of over 100 foreign nationals, and grim details of alleged human trafficking and abuses, only confirmed suspicions of its veiled continuity all these years.

For Sotheary and many casino workers, who had lost their job on the heels of the ban, and later with the closure of casinos in the height of the pandemic, were thankful that online operators were still hiring.

But they only look for good-looking people, she said, adding that she was recruited by a Cambodian, acting as an agent for the operator, via a social messaging app on April last year.

At that time, Kheang Phearum, spokesman for Sihanoukville Provincial Hall, told The Post that online gambling operators were riding out the tenure on their licence.

In March this year, Macau-based Asian Gaming Brief (AGB) wrote an editorial quoting industry expert Ben Lee, managing director of iGamix Management & Consulting Ltd, who expressed shock over the sectors activity in Sihanoukville.

We just [completed] a site survey in Cambodia for a client [in February] the fact that online gambling is coming back is a surprise, Lee told AGB, pointing out there was significant video streaming going on and there is still an army of telemarketers.

In a text message to The Post, he alleged that the area around the Golden Lion Circle, an iconic roundabout in the centre of coastal city Sihanoukville, was especially prolific with this activity.

However, a site visit last December as well as news reports later confirmed that such activities were also present in China City, a mix development project in Otres Beach.

Learning about this during the survey, Lee noted that online gaming activities took place on the top floors of some of the shuttered casinos and hotels, away from the publics eyes.

It is a notion backed by Sharon Singleton, managing director of AGB, an online intelligence service that provides market information on gaming issues. She alleged that many of the casinos in Sihanoukville were a little more than a front for the online gambling industry, with operators live-streaming table games to clients elsewhere, predominantly in China.

In fact, a manager of WM Hotel and Casino who was interviewed last year said: On the exterior, the buildings might look empty, abandoned or locked up but inside these buildings including established casinos, online gambling is going on.

The persistence of online gambling in Cambodia has no correlation with the closure of the casinosdue to the pandemic, Lee asserted.

Its continued existence is down to the lucrative earnings that operators make from players. Even more so in the last 12 months which saw the market value grow to $64.13 billion in 2020.

According to ResearchandMarkets.com, the value is expected to expand to $72.02 billion this year while London-based tech research and advisory firm Technavio estimated the size of the market to balloon to $114.2 billion by 2024.

About 36 per cent of that growth will likely originate from Asia Pacific, Technavio said last year.

Back home, the market value of the segment has halved, indicating a smaller playing field since the ban, where gross gaming revenue (GGR) stood around $2 billion compared to some $5 billion three years ago, Lee said.

A snapshot of Nagacorp Ltds casino earnings for the first half of 2021.

What makes Cambodia an attractive location for such operators could be related to reasons both acrimonious and compelling. This, despite the legalisation of online gambling in the Philippines.

However, Lee offered that Philippines has a reputation for slaughtering the proverbial golden goose.

Their ambitious taxes but most importantly their hidden taxes, ranging between 20 and 50 per cent, have always been a deterrent to long term foreign investment, he commented.

Steve Vickers, CEO of Hong Kong-based Steve Vickers and Associates Ltd, shared that while the Cambodian authorities no doubt seek to curtail illegal gaming, their capacity is limited and capability of organised crime is large.

For its part, the Chinese government is seeking to limit offshore gaming, in the Philippines and in Cambodia, amongst other destinations, but will face a challenge in terms of enforcement, particularly in overseas locations.

It is that regulatory arbitrage which has allowed for the expansion of the gaming industry in Cambodia and the Philippines, said Vickers, who once headed Hong Kong police departments Criminal Intelligence Bureau. His firm is a specialist political and corporate risk consultancy.

The increase in police crackdowns to stem the activity within China has been palpable. The government has drawn up laws to curb capital outflows and issued warnings to blacklist countries that are a target for Chinese gamblers. Observers reportedly said that Cambodia could be one of them, though the list has not been made public yet.

According to Chinas Ministry of Public Security, some one trillion yuan ($155 billion) in gambling funds are funnelled out of the country every year, calling the event a threat to national security.

Following its prosecution of 3,500 cases of illegal cross-border gambling last year, the closure of nearly 2,000 illegal payment platforms, and cancellation of some 145 passports of individuals suspected of being involved in cross-border gambling, the ministry has vowed to further intensify efforts to end the activity.

In December 2020, China passed an amendment to the criminal code outlawing the organisation or solicitation of cross-border gambling, both land-based and online, punishable by up to 10 years imprisonment, said Martin Purbrick, chairman of the Asian Racing Federation Council (AFRC) on Anti-Illegal Betting and Related Financial Crime in Hong Kong.

Chinese customers are a key market for illegal betting operators. The illegal betting market in China is significant, and a concern for the authorities, said Purbrick, a former special branch officer with the Royal Hong Kong Police, involved in counter-terrorism intelligence.

Two years ago, 25,000 people were arrested in China for illegal gambling-related activity, a figure which increased to 110,000 people in 2020.

Illegal betting raids were noted in every province across China, as well as transnationally, disrupting online betting hubs in the Philippines and Cambodia, and driving illegal betting activity further afield, as well as further underground, Purbrick said.

Loss of gambling revenue

On the face of it, the casino sector in Cambodia has been under pressure as the number of junkets plunged on the back of diminished flights.

As at end-December 2019, there were 193 registered casinos but the pandemic cut out a chunk as only 101 operators applied to renew their licence up to mid-March this year.

In Sihanoukville, where nearly two-thirds of Cambodias casinos are housed, foreign direct investment (FDI) surged to some $1 billion in 2018, a majority of that being Chinese construction financing luxury hotels, residential towers and office structures.

It changed the landscape of a previously coastal backwater into a casino metropolis that lured investors and tourists, including high-rollers.

Just before the implementation of a sub-decree that outlawed online gambling, it was a norm in casinos, ringing in millions from a captive audience worldwide, mostly China.

Junkets or trips consisting of high rollers complemented this earnings where agents hired tables from casinos for a fee to host VIP games for physical players who were made up of gambling holidaymakers or career gamblers.

In addition, 50,000 to 60,000 young Chinese professional players living in Sihanoukville supported this gambling sub-segment, an article by beltandroad.news stated last year.

Up till then, Cambodia was raking a plump tax revenue from the sector, peaking at $85 million at the height of the industrys growth in 2019, with one third from online gambling.

Following the ban, where nearly 450,000 Chinese nationals left by the end of 2019, as well as the coronavirus blight, tax revenue fell more than half to $40 million in 2020.

Things got even worse in the first half of 2021, as the revenue nosedived by 90 per cent year-on-year, said Ros Phearun, deputy director for financial industry under the Ministry of Economy and Finance (MEF).

The revenue this year is very limited because all the casinos are closed. It is less than one per cent of the budget, he told The Post.

This is indicative of the losses experienced by casinos in the region which had survived on junkets, like Hong Kong-listed NagaCorp Ltds NagaWorld in Phnom Penh.

In its first fiscal half ended June 30, 2021, it reported a net loss of $77.2 million versus $20.6 million net profit in the corresponding period last year due to the suspension of business operations since March 2 this year, which also caused GGR to fall 67.2 per cent to $129.3 million from last year.

According to its filing with Hong Kong Exchange, most of the revenue was locked in between January 1 and February 20, 2021, thanks to a reasonably-sized expatriate community in Cambodia and East Asian visitors from China, South Korea and Taiwan who were in search of entertainment.

Similarly, Australia-listed Donaco International Ltd, which owns Star Vegas Resort and Club in border town Poipet, Cambodia, and Aristo International Hotel in Vietnam, recorded dim casino operations but managed to return to the black with $25 million net profit in its financial year ended June 30, 2021, due to proceeds from a legal settlement. But, revenue took a beating, slumping 81 per cent to A$10.3 million from a year ago.

No VPN needed

While the focus of the online gambling sites is inherently overseas, social media apps within Cambodia have allegedly enabled locals to play online, although the law explicitly states that Cambodians cannot gamble, calling it a criminal offence.

Most of the websites, with Khmer language pages on social media platforms such as Facebook, Instagram and Telegram act as invitations to treat for new players, coaxing them to sign up while delighting customers with fancy promotions.

The domain address for these webpages change often though, as some sites open up as error after a few months of being active.

This likely indicates the use of mirror websites, AFRCs Purbrick said. Mirror websites are exact replicas of a betting website with different URLs [uniform resource locators], for example xyz123.com, xyz456.com and xyz789.com. Betting operators create tens or hundreds of such mirrors hosted on the same or multiple servers in order to migrate customers from one URL to another if a particular URL is blocked by authorities.

Such migration can be done in minutes. The existence of mirror websites therefore indicates that the operator is attempting to keep its activity away from regulatory attention, he explained.

Ministry of Posts and Telecommunications did not respond to questions.

Meanwhile, Purbrick noted that illegal betting operators could have a licence in a jurisdiction other than the location where the customer places a wager. What it means is that betting might not be legal in the country where the point of sale takes place.

Hence, if any online betting operators in Cambodia accept bets from customers in China they are clearly breaking the law in China, said Purbrick, who is also a consultant to the Hong Kong Jockey Club.

The illegal betting market, an offshoot of the online gaming industry which focusses on e-sports, is huge, reporting a global turnover of over $500 billion.

To stop this, governments of countries where online betting operators are located should recognise that a license in one country does not mean that the operator is legally taking bets in another country, and that appropriate action should be taken to prevent it.

He cited third party payment platforms such as Skrill, Neteller, PayPal, WeChat Pay and Alipay as being popular and a key means of payment for illegal online betting.

In Cambodia, the initiation of new online players is fairly easy and there is no need for the use virtual private network (VPN) to access the sites.

A check revealed that a new customer only needs to sign up and deposit some money into the bank account of a designated holder on the website or use e-wallet options in order to play. Some of the common choices provided by the websites are local commercial banks where players can also cash out their winnings.

When asked, the top heads of the financial institutions asserted their position against online gambling sites promoting their banking services to players.

Acleda has a strict policy that never ever services any customers engaged in gambling. [It] includes employees [who] are not allowed to gamble or even visit any gambling facility, its president and group managing director In Channy stressed.

We have a compliance centre monitoring daily to check suspicious transactions [and] if they breached the terms and conditions. The compliance team contacts the customers immediately to stop such transactions, like gambling. Otherwise the bank will close the accounts of the customers, he told The Post.

Similarly, the head of another commercial bank, which has one of the largest retail payment subscribers, said his unit terminated more than 30 billers or partners soon after the government banned the activity in 2019.

Asked if some accounts possess non-distinguishable characteristics with regular accounts or that they act as shell accounts for transactions, he said their bank accounts have a transaction limit that has been implemented to help the bank comply with Anti-Money Laundering and Combatting the Financing of Terrorism guidelines.

If the transaction is not abnormal and complies with all the rules and regulations of National Bank of Cambodia, and is coming from an individual account that has proper KYC [know-your-customer] documentation, it by default is a normal transaction, he said.

Adding that all abnormal transactions are monitored daily, he shared that each account has different customer risk profiling in monitoring.

We have customer profiling and transaction monitoring including World Check [intelligence] and other international prohibited lists ... in the past many accounts have been blocked and removed. Abnormal transactions are monitored and flagged, he reiterated.

`Not the end for gambling

Early this year, the Law on the Management of Integrated Resorts and Commercial Gambling was passed after sitting on the backburner for nearly 10 years.

The pace for its implementation picked up last year as Cambodia entered into EUs list of 12 high-risk countries which posed significant threats to the blocs financial systems for failures to tackle money laundering and terrorism financing.

Apart from that, Cambodia has also been cited in anti-money laundering reports by the Financial Action Task Force or UN Office on Drug and Crime.

For one thing, the law aims to bring order to the gambling industry which has seen a spate of criminal activities reportedly committed by Chinese nationals, ranging from the kidnapping of alleged gamblers for ransom or not settling their gambling debts, to shootings, gang fights and murder.

It is not known if the increased police crackdowns on online gambling is a push by China but more is expected to take place, National Police spokesman Chhay Kim Khouen indicated.

We are not subsiding our operation against illegal online gambling, but you have to understand that it is not an easy job. Even gambling in the village is not easy to crack down because we are not only working on gambling. We have a lot of work, he said via telephone.

However, it is part of their agenda to continue. [Online] games I cannot say whether it is increasing or decreasing but the anti-cybercrime department works on this everyday, Chhay added.

The Chinese Embassy in Cambodia failed to respond to numerous attempts for comments.

Meanwhile, observers are mixed on the new law invoking a deep cleansing of the industry to rid illegal operators and lure integrated casino resorts via a competitive tax regime.

AGBs Singleton feels it is highly unlikely that many of the casinos would survive long-term without the ability to gamble online. [They] would undoubtedly close if the government does not relax its restrictions.

The gambling legislation per se is a helpful step forward to improve the image of the industry in Cambodia and will be welcomed but it is unlikely that it will completely transform the industry.

Instead, some key changes international investors might like to see is possibly allowing Cambodians to gamble, similar to Vietnam, although the activity is closely monitored.

For foreign investors, it is often a red line when it comes to investment given the added risk of being solely reliant on one type of clientele, which is foreign tourists, Singleton said.

Equally sceptical, Vickers said, while the law would help Cambodia to grow the casino industry, it might rely heavily on Chinese gamers.

Limitations on travel related to Covid-19, and efforts by China to curtail capital outflows [could] limit the activities and [restrict] excessive gaming, thus [affecting] growth, he said. That said, the incentives to develop the industry are strong, and should overcome challenges such as capital controls.

However, the irony is not lost on MEFs Phearun, who conceded that the crackdown in China could more or less have an effect on Cambodias casino sector but hoped that investments in integrated resorts does not dampen.

Going forward, would the law rid Cambodia off online gambling operators? Perhaps force them to move to the Philippines?

Probably not, Singleton opined. The Philippines brings its own set of problems and many who are operating there are finding the business conditions difficult, primarily because of increasing costs and hostility towards Chinese working in the sector.

Some are already leaving for other jurisdictions and I believe Cambodia is one of the beneficiaries, she said.

Can the law raise the stakes in the casino industry? Is the casino sector a sunset industry in Cambodia?

I dont think this spells the end of gambling in Cambodia. Nagacorp, for example, is a highly respected operator and one of the most profitable in the world, showing that with the right conditions Cambodia can be a very strong market, Singleton said.

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Sleepless in sin city Will half-sized, outlawed online gambling sector persist below the surface in Cambodia? - The Phnom Penh Post