Connecticut is one of only a small handful of states in the U.S. that doesn’t have a professional sports presence – no NBA team, nothing in the NFL and, despite the cold weather, no ice hockey. However, the state has swallowed the bait from the national sports leagues and has agreed to give them the integrity fee they want. A new sports gambling bill has been introduced to open the market, but includes the integrity fee as a priority.

Lawmakers in the state have been reviewing four different gambling bills over the past couple of weeks and, during an 11-hour committee hearing last week, the new sports gambling bill was thrown into the mix. It would pay a handle of 0.25% to the leagues, but there is a caveat – not all of the money would be kept by the sports groups.

The bill was created by Representative Joe Verrengia and he included language that would destine part of the money to go to a new partnership between the leagues and the Connecticut Department of Economic Development. He explained, “I think there’s a distinct difference here in looking to partner with professional sports teams, and in return they would get up to a certain amount of revenue with the understanding that they would create more of a presence here in the state. I believe we would be one of the first states to engage in a partnership of this kind and magnitude.”

The partnership includes the introduction of pro exhibition games of the major sports leagues to the state. It would also pave the way for further development of youth sporting activity in Connecticut. However, how much of the 0.25% would make its way to the partnership and how much would be kept by the leagues has not been discussed.

According to Verrengia, the idea has already been received well by at least one major sports league. He indicated that he had spoken with Dan Spillane, the senior VP of the NBA, about the possibility and that the executive said that he was willing to explore the idea.

The bill will go before the House Public Safety and Security Committee next Tuesday, where it will most likely pass without any resistance. Verrengia is the chairman of the committee.

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A planned satellite casino in Pennsylvania’s Caernarvon Township from Penn National Gaming (PNG) was challenged on moral grounds this week, but backers assure locals it will add economic fuel to the region.

Pennsylvania residents in Caernarvon Township expressed opposition to a planned mini-casino from Penn National. (Image: Natalie Kolb/Reading Eagle)

Hundreds crammed into a hearing on Monday — as opponents warned the Pennsylvania Gaming Control Board (PGCB) the casino could lead to social ills in a community known for conservative values.

Dozens of the detractors wore “CasiNO!” badges, and they presented a petition with 1,029 signatures.

Yet, some 53 of the 71 written comments submitted to the PGCB backed the casino. A supporters’ petition so far had 156 signatures.

Moral, Religious Opposition

“The majority of the criticism is coming from those with a moral or religious opposition to gaming in general, and we appreciate and respect their opinions,” Jeff Morris, vice president, Public Affairs & Government Relations at PNG, told Casino.org.

Morris points to its economic benefits: creating about 275 construction jobs and an additional 250 jobs once open. ESI, a consultant hired by PNG, further estimates the casino will add $94.3 million a year into the local economy.

Casino Would Create Jobs, Procurement

“Local hiring and local procurement represent one of the most positive direct benefits associated with this project,” Randy Peers, president and CEO of the Greater Reading Chamber Alliance, testified in support of the casino.

He also predicted the casino will generate a “significant amount” of indirect economic benefits — as well as increased tax revenue for the town and Berks County.

Our proposed facility will become an economic engine for Caernarvon and the surrounding communities, create hundreds of new local jobs, and — as is the case in all of the communities in which we operate — we will become actively engaged in local charitable and philanthropic activities,” Morris said.

Caernarvon Township will get two percent of slot tax revenue and one percent of table game revenue from the casino — estimated eventually to be about $1.6 million a year.

Also, about two-thirds of the revenue created by the casino will come from people who live outside of Berks County, according to Peers. Its entertainment will also improve the quality of life in the region, he adds.

The casino, if approved by the PGCB, will be located 15 miles from Reading, a city of about 90,000 people. The casino will also be less than 50 miles from Philadelphia, the sixth most-populated city in the US with 1.58 million residents. Opening is slated for the fall or winter of 2020.

Satellites Orbiting

PNG won the rights to build a satellite casino after submitting a $10.5 million bid for the license. The casino is one of 10 satellite/mini casinos Pennsylvania officials paved the way for in a 2017 gaming expansion law. However, only five were successfully auctioned.

Penn National is also trying to open its Hollywood Casino York satellite in Springettsbury Township’s York Galleria Mall. The bid for that license cost PNG $50.1 million.

Other gaming operators have submitted plans for their own mini-casinos.

The 12 Pennsylvania casinos in operation last year collectively won more than $3.248 billion, the state’s record since commercial gambling was legalized in 2006. The PGCB reports the state’s share was about $1.38 billion.

The post Proposed Pennsylvania Mini-Casino Promises Large Economic Benefits, But Locals Outraged appeared first on Casino.org.

William Hill might be making huge strides in the US market, but that wasn’t enough to make the British bookmaker profitable last year.

William Hill posted a loss of more than $950 million in 2018 due to the lower value of its retail stores in the face of FOBT betting limit cuts. (Image: Racing Post)

The company reported a loss of £722 million ($954 million) in 2018, despite the fact that revenues were up slightly over 2017.

Positive Year Offset by FOBT Concerns

That didn’t come as a shock to investors, who were forewarned that they shouldn’t expect William Hill to put up impressive numbers for the year. And outside of that single bottom line number, the bookmaker’s business operations looked pretty solid for 2018.

The company paid off more than £200 million ($264 million) in debt, and saw a 2 percent rise in revenues. Operational profits dropped slightly, but the company still made £266.8 million ($352.4 million) in the course of business.

Next month, gamblers who walk into the High Street shops operated by William Hill across the UK will only be able to bet £2 ($2.64) at a time on the machines, rather than the £100 ($132) they can wager right now. Based on that, the company took a £883 million ($1.17 billion) non-cash impairment charge on their books – essentially meaning they downgraded the value of their retail outlets, given the impending changes.

American Market to Fuel Future Growth

William Hill has already warned investors and employees that it may have to close up to 900 of its shops in the UK as a result of the change. But the brand has already made plans to remain profitable in the future thanks to a new strategy that will see it focus on international markets – particularly the United States – as well as online products.

“The gambling group now knows what it’s up against and has clear plans to turn this into a winner and double operating profits by 2023,” Fidelity Personal Investing associate director Emma-Lou Montgomery told City AM. “The US looks to be key for the group, where it has a clear lead. While in the UK time will tell how the fixed odds betting cap affects business.”

The focus in the USA is already evident. The company positioned itself to be one of the biggest sports betting operators in the United States, partnering with Monmouth Park in New Jersey, the Vegas Golden Knights NHL franchise, and manufacturer IGT to accelerate its pivot to the American market. According to William Hill, it now commands a 34 percent market share in the states that have legalized sports betting so far.

“William Hill has gained real traction and awareness,” CEO Philip Bowcock said, talking about the company’s American business operations. “We have a strong American senior management team and will make full use of our market access.”

The post William Hill Posts $950M Loss in 2018 Thanks to New Regulations on FOBTs appeared first on Casino.org.

Kansspelautoriteit introduces more “terrifying” fines to scare away violators of its rules for the provision of online gambling services

The Netherlands Gaming Authority announced yesterday that the minimum fine for providing illegal online gambling services to Dutch customers will increase to €200,000 from €150,000. The revised rules on penalizing erring online gaming and betting rules are taking effect today, March 1.

The regulatory body further pointed out in a Thursday statement published on its official website that the new fines are only an interim step toward a major revision of its penalty policy.

The announcement about the increased penalties for violators of the nation’s rules for the provision of digital betting and gaming services arrives on the heels of the recent passage of the Remote Gaming Bill. The Dutch Senate finally approved the piece of legislation three years after the lower house of the Dutch Parliament gave the nod to its provisions.

Now as the Remote Gaming Bill has survived all legislative hurdles, the Netherlands has commenced the process of re-organizing its gambling market in a manner that would enable international online gambling operators to apply for a license with Kansspelautoriet and operate in a regulated environment. It is yet to be seen when exactly first regulated services will commence in the newly liberalized space.

Previous Fines “Not Terrifying Enough”

Commenting on the amended fines, Kansspelautoriteit Chairman René Jansen said that the previously imposed penalties were “not terrifying enough” to prevent internationally licensed companies from targeting Dutch gamblers. The regulator went on to say that the implementation of increased fines was only the first step in the local market’s re-organization process.

The new regulatory regime actually provides the Netherlands Gaming Authority with increased power and responsibilities in relation to keeping the local gaming and betting space clean from unregulated operations.

Kansspelautoriteit explained yesterday that the new €200,000 fine would be the starting point. Penalties could go up or down depending on the violations made by operators. The number of illegal websites operated by a given company, the type of games and of promotional activities conducted by violators and their marketing partners to lure Dutch people into gambling will be among the factors considered by the gaming regulator when deciding on the size of a fine.

Fines can also be hiked on percentage terms. Operators that have previously been warned by Kansspelautoriteit but have dismissed the warnings will have their penalties increased by a quarter. A 50% rise awaits those targeting minors or people with problem gambling behavior. Last but not least, companies previously slapped by the Netherlands Gaming Authority will receive fines two times the size of the €200,000 minimum.

Russian gambling operator 1xBet was the most recent violator of the Netherlands’ gambling rules to be fined by Kansspelautoriteit. The parent company of the popular betting operation was imposed a €400,000 penalty earlier this week for conducing unregulated services on the territory of the Netherlands.

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Spanish online casino games developer Red Rake Gaming has obtained a B2B license from the Malta Gaming Authority, the company announced in a press release on Wednesday

Red Rake Gaming regards its brand-new MGA license as an important milestone in its expansion and growth strategy. The announcement about the company’s recognition by the Maltese gambling regulator arrived shortly after it secured its expansion in the highly lucrative UK gambling market with a license from the local regulator, the UK Gambling Commission.

Red Rake Gaming’s license in Malta will give the casino games developer the opportunity to extend its footprint into multiple new jurisdictions through partnerships with Malta-licensed online gambling operators. The company’s content is currently available in its homeland, Spain, as well as in the regulated markets of the UK, Italy, Portugal, and Belgium.

The game developer sprung to life back in 2011. It originally started out as a creator of social games. Since its inception, Red Rake Gaming has evolved into a developer of real-money casino games content developer.

It currently has more than 200 partners across several platforms. Its games are available in 20 different languages and over 100 different currencies.

It has been an eventful week for Red Rake Gaming as debuted its latest video slot game – Bonnie & Clyde – just a few days ago. The new title transports players back to the 1930s America and makes them part of the thrilling adventure of notorious bandit couple Bonnie and Clyde. The game features 50 paylines spread across a 5×4 reel set, and is packed with free spins.

Expansion at the Core of Growth Strategy

Securing licenses from two major European regulators will help Red Rake Gaming deliver on its strategy to grow its presence through new partnerships and extended footprint across multiple regulated jurisdictions.

Commenting on their latest milestone, the group’s Malta Managing Director Nick Barr said the MGA license “increases [their] capability to be able to supply the large concentration of operators” located in Malta.

Red Rake Gaming has recently set up its commercial and business development teams in Malta. Mr. Barr pointed out that being licensed by the local gambling regulator further “solidifies [their] commitment and expansion” strategy on the island.

The Malta Gaming Authority has kept itself quite busy over the past few weeks. Apart from issuing a license to the Spanish game developer, the regulator also released statements that it has suspended/terminated the gaming licenses of four online gambling groups, with those being Betixx Limited, Morpheus Games (MT), Bet Service Group Limited, and World-of-bets EU Limited.

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