The Malta Gaming Authority Releases 2022 Annual Report and Financials

the_malta_gaming_authority_Releases_2022_annual_report_and_financialsThe Malta Gaming Authority (MGA) has released its 2022 Annual Report and Financial Statements. The move and similar moves by government entities are widely seen as efforts to provide clarity of mission and transparency of operations.

In that light, Malta has been mostly successful throughout the years, at least in as far as the information provided is somewhat useful to potential license holders and consumers. However, the type of information and the depth to which activities are reported can leave a lot to be desired.

5,280 players requested assistance

While the number of player complaints is reported, the type and severity of potential violations are not reported in context nor are the results of any decisions related to specific disputes. Further, alternate dispute resolution is mandatory so it is assumed that only complaints that fail arbitration and that ADR service providers consider worthy to escalate are ever considered by the gaming authority.

As well, plans to change the law or even bills introduced to mdo so are rarely ever reported either on the website news section or in the periodic or annual reports until policy or law has changed such as when operators may have been aware of a comment period but players had no clue that the minimum theoretical return to player percentage (RTP) for MGA-regulated online slots would drop from 92% to 85%, ostensibly to bring it “into line” with the land-based sector.

More recently we had to learn from news outlets that follow such disputes that a bill had been introduced to the legislature which would modify the gambling act yet apply to all other European Union trade disputes absolving any Malta-registered company from responsibility to conform to EU trade law by escaping enforcement of judgments when a Maltese licensed online casino is sanctioned or fined by another EU member state.

While the previously mentioned and other information may be available in official government gazettes or press releases, in the spirit of transparency and consumer confidence it should at a minimum be linked to from the MGA website if not included in periodic and annual reports.

The topline numbers and a link to the financials and report can be found here (here).

A brief summary follows:

  • 5,280 players requested assistance
  • 28 compliance audits were conducted and 228 desktop reviews
  • 25 licensees were subject to remediation and/or administrative measures
  • 6 individuals and companies were deemed by the Fit & Proper Committee to not be up to the Authority’s probity standards due to various factors
  • 41 gaming license applications were received during 2022. Thirty-one (31) licenses were issued
  • 1,500+ criminal probity screening checks were undertaken
  • 48 interviews with prospective Money Laundering Reporting Officers (MLRO) and key persons carrying out the AML/CFT function
  • 9 Letters of Breach were issued following breaches of the Commercial Communications Regulations
  • 85 responsible gaming-themed website checks were performed with 38 URLs found to have misleading information

In publishing the report, MGA CEO, Dr Carl Brincat said: “This report is testament to our collective efforts in promoting a fair and sustainable gaming ecosystem. Through proactive measures and leaner regulation processes, we strive to ensure a level playing field that nurtures innovation while safeguarding against any potential risks.

“As the global gaming landscape evolves, our role becomes even more critical. We embrace this responsibility with utmost determination, working tirelessly to stay ahead of emerging trends, technologies, and challenges. We remain steadfast in our pursuit of robust frameworks that inspire confidence, protect vulnerable individuals and render Malta the home for gaming operators of goodwill.

Source: The MGA publishes its 2022 Annual Report and Financial Statements, Malta Gaming Authority News, June 2, 2023

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US Court Okays $415 million class settlement against “free-to-play” Casino

us_court_okays_415_million_class_settlement_against_free_to_play_casinoFollowing years of litigation, a U.S. judge on Thursday approved a $415 million class-action settlement against DoubleDown Interactive LLC and International Game Technology PLC (IGT.N). The settlement resolves claims that the “social casino” and the online gaming company violated consumer protection provisions and Washington state gambling law where personal gambling online is a felony.

U.S. District Judge Robert Lasnik in Seattle federal court called the resolution “fair, reasonable, and adequate,” in his ruling that was the final approval order and ended almost half a decade of litigant action.

Conclusion of Nearly Half a Decade of Litigation

The case arose in 2018 about one year after Aristocrat Liesure’s Big Fish Games another social gaming site with chip purchases but also a black market trading space for the “chips of no value” was found to be offering illegal casino games in the state of Washington by the 9th Circuit Court of Appeals in Kater V. Churchill Downs – the panel was assembled to hear an appeal related to the Seattle courts’ finding that the games were not illegal under state.

In the most recent case, online consumers alleged the “social casino” games developed by the defendants “constitute unlawful gambling under Washington’s gambling laws.” The settlement was the latest in a series of related cases.

The specific arm of world gambling behemoth IGT, International Game Technology PLC, is based in the U.K., and DoubleDown have denied any liability. They argued that the plaintiffs’ claims “rest on novel and untested interpretations of Washington’s gambling laws.”

The games start out free to play with a certain number of free chips granted, but players must purchase additional chips or wait a period of time for additional chips to be awarded.

The suit was brought on behalf of tens of thousands of class members who “purchased and lost chips” by wagering at DoubleDown Casino, the plaintiffs’ lawyers alleged. Attorneys argued users were entitled to recover their losses under a Washington state law.

About half a dozen class members opted out of the settlement, but there were no formal objections to the deal and there was no clear indication that those former class members intended to pursue individual cases against the firms.

Lawyers have recovered over $600m for Plaintiffs

Edelson counsel, Todd Logan, speaking on behalf of the plaintiffs said on Friday that the firm’s social-casino litigation has produced or recovered over $650 million for clients and class members to date.

Many class members stand to receive, individually, hundreds of thousands of dollars,” said Logan

Chicago-based Edelson was awarded over $120 million in the case.

Judge Lasnik’s fee award amounted to nearly 30% of the total award, outstripping the state’s and 9th U.S. Circuit Court of Appeal’s benchmark 25% top fee award for such cases.

Lasnik said the litigation was “risky, novel, and hard-fought,” in his award order, and so he approved a request for fees that went beyond a 25% benchmark.

The case is Benson et al v. DoubleDown Interactive LLC et al, U.S. District Court, Western District of Washington, No. 2:18-cv-00525-RSL.

Source: US court approves ‘social casino’ $415 million class settlement, Reuters, June 2, 2023

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Another Judge Rules That Pennsylvania Skill Games are Legal in the Commonwealth

another_judge_rules_that_pennsylvania_skill_games_are_legal_in_the_commonwealthFor nearly a decade now, judge after judge has ruled that Pennsylvania skill games known by the Pace-O-Matic name are legal in the commonwealth. yet prosecutors and agents of the Pennsylvania Bureau of Liquor Control and Enforcement (BLCE) seem hell-bent on finding a jurist who will take their side in the matter of “Chance v. Skill” and stand behind the authorities when they raid a local gathering place and seize the machines and any cash or collateral equipment associated with them.

So far, Pace-O-Matic’s Skill Games have been found to be legal in the state by rulings in the following courts: Beaver, Dauphin, Monroe, and York counties. Clearfield County and Delaware County reviewed the law itself and case law as created by those decisions and returned seized games without the need to go to trial and determine the facts for themselves.

Games Deemed Legal Since 2014

The Beaver County Court of Common Pleas ruling that Pace-O-Matic’s Pennsylvania Skill games are legal and games of predominant skill have stood since 2014 (ruling .PDF)

Once again a judge has ruled in favor of game providers. This time in Monroe County where the DA’s office and the BLCE carried out a raid on a small business there in 2022 and held the devices in a secure location until the gambit played out in court – again. Judge Mark said in his recent ruling that the gaming “devices are games of skill and not games of chance.”

In the same county earlier this year, prosecutors caught an earful from Monroe County Common Pleas Judge Jennifer Harlacher Sibum who scolded them for not only prosecuting non-criminal behavior but for misconduct in the investigation and prosecutions themselves. In fact, she used the withholding of crucial evidence and misrepresentation of evidence by the prosecution side of the equation as reason to suppress the actual evidence from a court hearing as the case was dismissed.

The court finds that the Commonwealth improperly withheld and misrepresented material evidence relative to the issuance of the search warrant in this matter and that such conduct warrants the suppression of the seized property,” wrote Judge Sibum in her order dismissing the charges and ordering the return of the machines, cash, and other instruments to the rightful owners.

According to a report on G3 Newswire, Wednesday judges in York County and Dauphin County have ruled against prosecutors and the BLCE in other cases this year as well.

Pace-O-Matic got its machines, cash, and related equipment back from prosecutors in York County after it was improperly seized by the Bureau earlier in 2023. In Dauphin County, the “L” was chalked up to prosecutors there, and the “W” for POM.

In that case, Dauphin County Common Pleas Judge Andrew H. Dowling wrote, “Initially, it is this Court’s belief that the Commonwealth’s investigation shows case bias. The Commonwealth is seeking to make all machines like the POM Machines into illegal gambling devices, and their whole approach and intent is to shut down games regardless of the actual gameplay… Thus, the Commonwealth as a whole is biased against the games, and their approach lacks case credibility.

Pace-O-Matic lawyer, Matthew Haverstick of Kleinbard, LLC, stated: “Pace-O-Matic’s Pennsylvania Skill games are legal. The Commonwealth has wrongfully seized its equipment for years with no credible evidence that the games are illegal. Judges are now carefully looking at the evidence and ruling in our favor.

Mike Barley, Chief Public Affairs Officer for the company added, “Again, another Pennsylvania court has found that Pennsylvania Skill games, powered by Pace-O-Matic, are legal games of predominant skill. With the legality of our games upheld repeatedly, we are eager to work with the Legislature to pass legislation that will fairly regulate and tax the skill game industry. In fact, Pace-O-Matic stands out among our competitors as the active driving force seeking additional regulation and taxation.

Pennsylvania Skill games are manufactured in the commonwealth and 90% of the profit generated from them reportedly stays inside the state. Earlier reports claim to show that “real casino” businesses are not cannibalized by play on the devices as those seeking to spend a few dollars for entertainment with potential prizes on the games visit a neighborhood mom-and-pop grocer or other stores, another nearby small business, a favorite fraternal or social club, the local volunteer fire company or a veterans’ organization without the need to plan travel, overnight accommodations, or even to plan any form of major budget expenditures.

The Same or Similar Games have been Banned by Law in Kentucky Since March 2023

The games do not enjoy the same standing in Kentucky where they were recently codified into law as unregulated and illegal.

Pennsylvania casino and lottery revenues have continued to grow year in and year out as the skill games find their way into more and more locations giving at least anecdotal evidence to advocate’s claims that it is a totally different clientele than would be found looking for flashing lights, bells and whistles, and big jackpots.

Sen. Gene Yaw who serves as Vice Chair on the Judiciary Committee in Harrisburg has introduced legislation that would tax the machines and reportedly provide some $300m a year in revenue to the commonwealth while regulating the games as well.

As part of most press releases from the company, POM often mentions that it “employs a team of former state police officers to enforce all terms of contracts and codes of conduct. These contracted terms limit the number of machines, where they are placed in a location and have protections in place to prevent anyone underage from playing the devices.

Source:Judge rules that Pennsylvania Skill games are ‘devices of skill’, G3Newswire, June 7, 2023

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Steve Wynn Still Hasn’t Found a Buyer for Beverly Hills Mansion

Steve Wynn continues to struggle to find a buyer for his Beverly Hills mansion.

Steve Wynn Beverly Hills Los Angeles mansion
The interior of Steve Wynn’s Beverly Hills mansion overlooks the Los Angeles skyline. Wynn has been trying to sell the Los Angeles mansion for more than two years. (Image: Compass)

Wynn had no problems finding buyers for his 11.8% stake in his namesake casino empire when the billionaire departed Wynn Resorts amid shameful allegations that he handled himself improperly around female subordinates during his career. After selling his shares for about $2.1 billion in March 2018, Wynn exited the gaming industry and relocated to South Florida.

Wynn has since taken up the hobby of flipping premier beachfront real estate in Palm Beach County. The Las Vegas visionary has also sought to unload his properties in Nevada and California.

Wynn sold his mansion in Summerlin’s “Billionaire’s Row” west of Las Vegas in April 2022 for $17.5 million. It was a deep discount from the initial $25 million asking price at which Wynn listed the 15,000-square-foot estate in June 2020.

90210 a Buyer’s Market

Though Wynn called Southern Nevada home for decades as the billionaire oversaw his Wynn Las Vegas and Encore resorts on the Strip, the casino magnate purchased marquee properties around the country. The costliest residence he ever bought was his Beverly Hills estate located at 1210 Benedict Canyon Drive.

Wynn bought the mansion in August 2015 for almost $48 million. He then spent many millions more renovating the 27,150-square-foot mansion into a Los Angeles villa that oozes the class, luxury, and opulence that his Las Vegas casinos are known for.

But Wynn hasn’t been able to find a buyer for the home since he decided to sell it in early 2021. Wynn listed the Beverly Hills compound in April 2021 for $125 million.

The price was lowered to $115 million in October 2021 and down to $100 million in March 2022. Wynn’s listing agent announced in January that another $15 million had been slashed, with the asking price down to $85 million.

Wynn hoped to sell the home before Los Angeles’ hefty real estate tax on properties over $5 million went into effect. As of April 1, 2023, sellers of residencies above $5 million pay a 4% tax on the transaction to the city.

On home sales upwards of $10 million, the fee jumps to 5.5%. On an $85 million sale, the city’s cut would be about $4.67 million.

Cash Offer Likely

With interest rates high, Wynn will presumably need to find a cash buyer for his Los Angeles pad. His Nevada realtor says that’s how the billionaire sold his Summerlin mansion last year, as that buyer paid the $17.5 million in cash.

Along with the $85 million asking price, 1210 Benedict Canyon has some of the priciest real estate taxes in the nation. The home’s property taxes last year were about $654K on a property assessment of $54.8 million.

Built in 1994, the Wynn Beverly Hills estate sits on 2.7 acres and has 11 bedrooms, 13 full baths and three half baths, an attached guest house, and an outdoor pool.

The listing claims the property also has the “most exquisite taste showcasing rare and decadent materials with sensational views and stunning light quality throughout.”

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Casino Crime Roundup: Suspects Who Robbed Yonkers Casino Players Remain on the Lam

A man tailed two elderly women about a mile from Yonkers, NY’s Empire City Casino to their residence where they were robbed on Tuesday, police said.

Yonkers, New York-based Empire City Casino
Yonkers, New York-based Empire City Casino, pictured above. Two women were followed from the casino to their home, where they were robbed. (Image: Mark Vergari/The Journal News)

The two women, one 83, the other 86, had just pulled into a driveway at a Valentine Street residence in Yonkers at about 3:30 p.m. They were just about to leave their car when the suspect approached.

He pulled out a firearm and stole their purses from inside the car, according to the Yonkers Daily Voice. He next fled down the driveway to a parked black Acura sedan, which sped away with an unidentified second suspect at the wheel.

Neither woman was injured, according to Yonkers police Detective Lt. Dean Politopoulos.

The suspect is a Black man in his late 20s or early 30s. He was dressed in a black baseball-style cap and a black T-shirt, and was wearing sunglasses.

Police continue to search for the suspect. If found, officers will likely apply for an arrest warrant that needs to be approved by a judge.

Drunk Casino Patrons Arrested in Pennsylvania

Two visitors to Pennsylvania’s Valley Forge Casino were apprehended at about 2 a.m. Sunday after one allegedly resisted arrest and the second allegedly helped him in his escape scheme.

The couple were both intoxicated and police tried to arrest one of them at the Upper Merion, Pa. gaming property.

The unnamed man appeared “unsteady on his feet,” Patch reported. He also began to argue with officers. Eventually, he allegedly tried to escape from custody when cops told him they were arresting him for public drunkenness.

At that point, the unnamed woman attempted to help him resist the officers, police said.

Eventually, both the man and woman were arrested and transported to Upper Merion Police Station. They were charged with resisting arrest, public drunkenness, and other counts.

TV Damaged by Illinois Casino Visitor

A man was apprehended on Thursday after he allegedly punched an LED flat-screen TV at Harrah’s Casino in Joliet, Ill.

Joliet cops arrested Antonio Valdez, 33, of Harvey, Ill., and charged him with criminal damage to property before booking him at the Will County Jail.

Casino security guards initially ordered Valdez to leave the gaming property due to his intoxication. He started to make his way to the casino’s parking garage when, on the way, he allegedly punched the TV in a hallway.

Valdez returned to the gaming property where he was apprehended by security guards. He was later turned over to local police.

Valdez punched the TV so hard, it broke, Punch reported. Its replacement value is about $700. He wasn’t injured from when his hand struck the television.

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