Missouri Approves Sports Betting with Slim Margin, Legalization by 2025

Missouri-voters-narrowly-approve-sports-betting-amendment-reject-casino-at-Lake-of-the-OzarksIn a historic decision, Missouri voters have approved Amendment 2, making sports betting legal across the state. The measure, passed by just 0.256%, represents Missouri’s entry as the 39th state in the U.S. to legalize this form of gambling. The Secretary of State’s office reported a tight margin, with only 7,486 votes out of nearly 2.9 million cast separating approval from rejection. Although the amendment passed narrowly, the opposition group Missourians Against the Deceptive Online Gambling Amendment has confirmed they will not seek a recount, even though Missouri law allows recounts for margins under 0.5%.

The push to legalize sports betting in Missouri has been fueled by neighboring states like Illinois and Kansas, which have already embraced regulated sports wagering. Following final certification, expected by December 10, Amendment 2 will take effect 30 days after the election. The Missouri Gaming Commission has until December 1, 2025, to establish licensed sports betting platforms statewide, allowing residents to bet both at casinos and via mobile apps.

What Amendment 2 Means for Sports Betting in Missouri

The passage of Amendment 2 opens up several betting options across Missouri. Once the market launches, residents will have access to both retail and online sports betting platforms. Professional sports teams in Missouri, including the Cardinals, Royals, and Chiefs, will be authorized to set up physical betting locations near their stadiums and offer branded mobile betting options.

Additionally, casinos in the state will be able to host sportsbooks on-site, with each casino eligible for an online sports betting license. Two additional online licenses will be available for platforms independent of casinos or sports teams, paving the way for major operators like DraftKings, FanDuel, BetMGM, and Caesars Sportsbook.

Missouri will join Kansas in taxing adjusted gross gaming revenue from sports betting at 10%, a comparatively low rate among states with legalized sports wagering. This tax will support the Missouri Department of Elementary and Secondary Education, and a portion will fund the Compulsive Gambling Prevention Fund to help those affected by gambling addiction. However, the amendment’s approval as a constitutional measure makes any future tax rate adjustments challenging, as changes would require another statewide vote.

Proponents of Amendment 2 believe sports betting will contribute much-needed revenue to Missouri’s education budget. According to the Winning for Missouri Education campaign, which received over $14 million in backing from FanDuel and DraftKings, sports betting could generate over $100 million in new tax revenue within the first five years of legalization. In comparison, Kansas has collected more than $20 million in tax revenue since it launched sports betting in 2022, directing funds toward attracting professional sports teams.

Missouri’s Journey to Legal Sports Betting and Broader Implications

Missouri’s journey to legalized sports betting has been marked by legislative challenges. Despite significant support for legalization in Kansas City and counties like Jackson, Clay, and Platte, efforts repeatedly stalled within the state legislature due to opposition from various interest groups. However, with Amendment 2’s approval, Missouri residents can expect betting options similar to those in surrounding states like Illinois, Iowa, and Tennessee.

Notably, the amendment includes restrictions, such as prohibiting prop bets on college athletes from Missouri-based institutions, which aligns with measures in other states. This stipulation reflects a cautious approach to collegiate sports wagering intended to address ethical and integrity concerns associated with betting on amateur athletes.

The American Gaming Association (AGA) reports that the U.S. sports betting industry reached a record $10.92 billion in revenue in 2023, underscoring the industry’s potential as a revenue source for Missouri. Nevertheless, revenue from sports betting, while valuable, is not anticipated to fully address Missouri’s educational funding needs, with estimates suggesting it may cover only a small fraction of the state’s annual $10 billion education budget.

With more than 35 states permitting some form of sports gambling, Missouri’s approval of Amendment 2 reflects a continued national trend toward legalizing sports betting. However, Oklahoma remains the lone border state holding out against sports betting, further distinguishing Missouri’s choice to capitalize on the industry. This decision also highlights the growing influence of major online gaming operators, with FanDuel and DraftKings spearheading the initiative in Missouri to significant effect.

Missouri’s sports fans can anticipate their first legal bets as early as December 2025, marking a new chapter for the Show-Me State’s gaming landscape.

Source:

All in: Missouri Voters Pass Amendment 2, Legalize Sports Gambling“, kshb.com, November 6, 2024. 

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Brazil Proposes Online Betting Ban Over Mental Health and Financial Risks

Latest-bill-calls-for-online-betting-ban-in-BrazilA new bill aimed at banning online sports betting across Brazil has been introduced by Senator Sérgio Petecão, reflecting growing concerns over the impact of virtual gambling on mental health and financial stability. The bill, officially named Bill 4.031/2024, was submitted to the Brazilian Senate on October 21, 2024, and seeks to halt the rapidly growing online betting market just months before it is set to be fully regulated and legalized.

Concerns Over Mental Health and Financial Debt

Senator Petecão’s primary concern is the toll that online betting can take on the mental well-being of bettors, as well as the financial burden it places on families. The senator argues that online betting platforms are accessible 24 hours a day, creating a heightened risk for addiction and compulsive gambling behaviors. According to Petecão, “The platforms of online betting are available 24 hours a day, creating a false sense of easy winnings and leading many people to addiction. This compromises their own lives, their relationships, and their finances.”

The proposal comes in response to growing evidence that many Brazilians are falling into significant financial debt due to online betting. One controversial study, despite its small sample size, received widespread attention for suggesting that some bettors were using money meant for food and medicine to gamble. These findings have fueled public debate about the potential dangers of expanding the online betting market.

Bill Calls for an Immediate Halt

The new bill requests that the law enabling online betting in Brazil, signed earlier this year, be amended within 60 days to prohibit virtual gambling. While in-person betting at physical venues would still be allowed, with bettors required to purchase printed tickets, the bill suggests that online betting is a far more dangerous practice due to its round-the-clock availability and the anonymity it offers players. Petecão’s argument hinges on the belief that retail betting carries fewer risks of addiction compared to its online counterpart.

The senator’s proposal arrives as the Brazilian government prepares to launch its licensed online betting market in January 2025. As preparations continue, various other lawmakers and public figures have expressed similar concerns, particularly regarding the potential impact on vulnerable populations, including the elderly and those dependent on social benefits.

Government Response and Lula’s Position

President Luiz Inácio Lula da Silva is expected to address these concerns and clarify the government’s stance on the matter before the scheduled launch of the regulated betting market. In response to calls for more restrictive measures, Lula has already signed Bill 3.626/2023, which legalized online betting. However, the latest developments and concerns may prompt further action. Less severe proposals, such as spending limits for vulnerable groups and an accelerated ban on using credit cards for betting, are also being discussed.

In addition to Petecão’s bill, the Brazilian government has already been actively working to curb illegal betting through its Secretariat of Prizes and Bets (SPA). This regulatory body recently blocked over 2,000 unlicensed betting sites operating in Brazil. The SPA has also focused on ensuring that licensed operators meet strict requirements, including providing safeguards to protect players from gambling addiction and unethical practices.

Opposition from the Betting Industry

While the proposed ban has garnered attention, it faces strong opposition from within the betting industry. Licensed operators argue that a ban would only drive more bettors to illegal sites, undermining the government’s efforts to control the market. Moreover, with the launch of the legal market so close, many in the industry worry that these drastic measures could stall progress and hinder the development of a regulated, safer betting environment.

Supporters of the legal betting market point to ongoing efforts to protect consumers, such as advertising restrictions and player protection mechanisms, as steps in the right direction. Advocates for legalization believe that a regulated market will reduce harm by providing proper oversight and tools to manage problem gambling.

Impact on Bolsa Família and Social Benefits

The controversy surrounding online betting extends beyond the Senate, as data from Brazil’s Central Bank reveals that some recipients of Bolsa Família, the government’s flagship social welfare program, have been using their benefits to place bets online. This revelation has led to discussions about imposing stricter regulations on how Bolsa Família funds can be spent. Senator Cleitinho has introduced a separate bill that would limit the use of these funds to specific purchases, ensuring that they are used for necessities like food and healthcare rather than gambling.

As the Brazilian government continues to debate these issues, the outcome will shape the future of the country’s betting industry. Whether Petecão’s bill leads to an outright ban or simply encourages further regulation remains to be seen. Either way, Brazil is facing a critical decision about balancing economic interests, public health, and consumer protection in the burgeoning online gambling market.

Source:

Bill to Ban Online Sports Betting Proposed in Brazil“, igamingbusiness.com, October 23, 2024.

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Brazil Faces Legal Battles Over Betting Sites List and Crackdown on Unlicensed Operators

Operators-left-off-SPA-approved-list-initiate-lawsuits-against-the-regulatorBrazil is dealing with a wave of legal action from betting companies following the release of an approved list of operators allowed to continue operating in the country. This list, published by the country’s Department of Prizes and Betting (SPA) in early October, features 96 companies, along with 210 affiliated brands, eligible to operate between October 1 and December 31, 2024. However, several companies excluded from the list have filed lawsuits against the Ministry of Finance, sparking controversy over the approval process.

SPA’s Crackdown on Illegal Betting Sites

The creation of the approved list was prompted by increased pressure from both the industry and the government to regulate the market ahead of Brazil’s licensed gambling market launch, set for January 1, 2025. The government is determined to crack down on illegal betting operators in the meantime. As part of this effort, the National Telecommunications Agency (Anatel) was tasked with blocking 2,040 websites deemed illegal, including prominent names such as Betfred and BoyleSports.

While the approved list allows licensed operators to continue functioning, companies not on the list must cease operations until they obtain federal authorization. This restriction has led to significant backlash from several betting operators, with at least eight lawsuits filed in the federal courts.

Lawsuits from Excluded Operators

One of the prominent lawsuits comes from Zeroumbet, a betting platform owned by lawyer and social media influencer Deolane Bezerra. The company submitted its federal betting license application on August 20, 2024, but was left off the approved list due to an ongoing federal investigation into illegal gambling and money laundering. The investigation, known as ‘Operation Integration,’ is centered on Bezerra, arrested twice in September. However, Zeroumbet’s legal team argues that the investigation should target Bezerra as an individual and not impact the company’s operations. “In this case, the one who would be punished would be Deolane Bezerra and not the company,” the lawsuit contends.

In response to the lawsuit, the SPA maintained that Zeroumbet was excluded to protect public interest and ensure the integrity of bettors, given the ongoing investigation. Zeroumbet is seeking a court ruling to allow the company to resume operations despite the investigation, which could have significant financial and reputational implications for the platform.

State-Level Authorizations and Federal Disputes

Other operators, such as Esportes da Sorte, have taken a different route to stay in the market. Although Esportes da Sorte was also excluded from the SPA’s approved list, the company secured authorization from Rio de Janeiro’s state lottery regulator, Loterj, by acquiring controlling shares in the Loterj-licensed company ST Soft. This allowed the company to continue offering betting services at the state level, despite its exclusion from the federal list.

However, Rio’s stance has drawn criticism from the federal government, challenging the legality of allowing Loterj-accredited betting sites to operate nationwide. The federal government has taken the issue to Brazil’s Supreme Federal Court (STF), arguing that state-level licenses should not bypass federal regulations.

Wider Implications for the Lula Government

The Lula administration is facing significant pressure as it seeks to regulate Brazil’s gambling market. Betting has been legal in Brazil since 2018, but until recently, there was no regulation in place for operators. The government began implementing rules last year with the goal of collecting taxes and ensuring compliance. Despite these efforts, the Ministry of Finance has already faced a series of lawsuits, and more legal challenges are expected as excluded companies continue to contest the SPA’s decisions.

For companies like Sportvip Group International Apostas, the legal battle is seen as crucial to their financial survival. The company recently had its preliminary injunction request denied, but the court is still considering the full case. Sportvip, like many others, argues that being left off the list could result in “incalculable financial and reputational losses.”

The controversy has also been fueled by revelations from a Central Bank report, which indicated that people covered by Brazil’s social welfare program, Bolsa Família, transferred R$3 billion to betting platforms in August alone through the Pix payment system. This discovery has intensified scrutiny of the industry, particularly regarding unregulated platforms operating in the country.

As the lawsuits progress, the Brazilian government’s efforts to regulate the market and safeguard public interest will continue to face challenges from operators pushing for inclusion in the newly regulated space.

Source:

Governo Já Enfrenta Ações Sobre Lista de Bets e Empresa de Deolane Tenta Liberação, jornaldebrasilia.com.br, October 16, 2024.

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Colorado State Attorneys Ask Federal Court to Toss Tribal Sports Betting Lawsuit

State attorneys in Colorado have asked a federal court to dismiss a lawsuit filed by two federally recognized tribes challenging how sports betting was rolled out in The Centennial State.

Colorado sports betting Ute tribes
A patron at the Ute Mountain Casino Hotel Sportsbook places a wager. The Ute Mountain Ute and Southern Ute Indian tribes have sued the state of Colorado for how online sports betting debuted. (Image: Ute Mountain Casino Hotel)

In July, the Southern Ute Indian Tribe filed a lawsuit in Colorado’s US District Court on claims that the state and Gov. Jared Polis (D) failed to negotiate in good faith as required by the federal Indian Gaming Regulatory Act (IGRA). The Ute Mountain Ute Tribe joined the case in September.

The lawsuit challenges how Polis and the Colorado Division of Gaming finalized the state’s sports betting regulations after voters authorized sports gambling during a 2019 statewide referendum.

“The Tribes’ position is substantively incorrect,” the state’s filing read. “However, this Court need not address the merits of this case because it lacks subject matter jurisdiction over the Tribes’ claims and the Tribes fail to state a claim.”

The tribes allege they were kept in the dark about the state deciding not to expand their Class III gaming compacts to include online sports betting. The sovereign nations say they received cease-and-desist letters from the state gaming agency in June 2020 — a month after commercial mobile sportsbooks went live — ordering them to yank their online sports betting platforms. 

State Seeks Dismissal

When Colorado’s online sportsbooks regulated by the Gaming Division took their first wagers in May 2020, so did the mobile Sky Ute Sportsbook. The following month, as the Ute Mountain Ute Tribe was readying to launch its mobile sports wagering operation, the state threatened to revoke the operator licenses of the tribes’ sportsbook partners, US Bookmaking and IGT.

The state told the tribes that while their Class III gaming compacts expanded to include retail sports betting privileges following the 2019 referendum, the constitutional amendment didn’t expand tribal gaming to the internet.

As the Tribes argue that they have a sovereignty interest in their right to control gaming on Indian lands, so too does the State possess a sovereignty interest in the ability to regulate sports betting in Colorado,” the motion to dismiss continued.

The tribes believe the state wants to reap as much revenue from sports betting as possible. And since their Class III gaming compacts don’t include revenue-sharing provisions, a rarity among states that have entered into compacts with their tribal nations, allowing online tribal sportsbooks would presumably cut into the state’s windfall.

State officials told the tribes that they could only operate online sportsbooks if they agreed to share 10% of the sports betting revenue with the state. Another condition was agreeing to have their online sports betting platforms regulated by the Gaming Division.

The tribes say they tried to engage in discussions with the state before the rollout of online commercial sportsbooks but those requests went unfulfilled.

The Sky Ute Casino Resort shuttered its retail sportsbook in July 2023 after determining the operation to be unfruitful. A retail book remains at the Ute Mountain Casino Hotel.

Seminole Repercussions

The crux of the Colorado tribes’ lawsuit seems to hang on a recent federal ruling in Florida that concluded the Seminole Tribe’s running of an online sportsbook doesn’t violate the IGRA so long as the tribe’s internet sportsbook computer servers remain on the tribe’s sovereign land.

The Southern Ute and Ute Mountain Ute tribes seek financial damages and for the court to declare that their compacts provide online sportsbook privileges.

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Brazil Contemplates Ban on Online Sports Betting Over Addiction and Financial Strain

Brazil-considers-ban-on-online-sports-bettingBrazilian President Luiz Inácio Lula da Silva is contemplating an outright ban on online sports betting if the government’s recent regulatory efforts fail to address the growing issue of gambling addiction in the country. Since the legalization of online sports betting in 2018, there has been a dramatic surge in betting activity, raising concerns about the negative financial and social impacts on Brazilian households.

Worsening Socio-Economic Impact

Recent studies have revealed troubling trends linked to the rapid rise in online betting. Many Brazilian families are suffering financially due to an increased tendency to gamble, often using money intended for essential purchases. A significant portion of household income is reportedly being diverted to gambling, contributing to permanent debt and family bankruptcies. One study commissioned by a Brazilian retailers’ association found that 63% of online betting platform users experienced income declines, and 23% of those surveyed admitted to prioritizing gambling over purchasing necessities like clothing.

President Lula expressed particular concern for low-income families receiving social assistance through Brazil’s Bolsa Família program. Addressing the issue after casting his vote in São Paulo’s municipal elections, Lula stated, “Everyone knows that the person going to buy bread in the morning will make a small bet using the bread money.” He emphasized the importance of regulating the industry to prevent vulnerable populations from falling further into financial hardship. Lula added that, if the new regulations are insufficient in curbing the addiction, he “won’t hesitate in putting an end to [betting]

definitively.”

Stricter Regulations Underway

To address these growing concerns, the Brazilian government has introduced a set of regulations aimed at tightening control over the online sports betting market. The new rules mandate that international betting companies operating in Brazil must obtain local licenses, establish corporate offices, and provide customer support specifically for Brazilian users. Additionally, measures are being implemented to prevent money laundering, and credit card usage for betting will be prohibited under these guidelines, which are set to take effect by the end of the year.

Brazil’s Secretariat of Prizes and Bets (SPA) has already published a list of licensed operators, which includes some of the biggest names in the betting industry, such as Flutter Entertainment, Entain Group, and Betsson. These companies must now comply with local regulations, including partnering with Brazilian entities and adhering to strict financial and operational requirements. Hundreds of other companies have been denied licenses for failing to meet the necessary conditions.

Despite these new regulations, concerns about gambling addiction persist. In August alone, Brazil’s central bank reported that recipients of Bolsa Família spent over R$3 billion ($550 million) on bets, raising alarms about the impact on vulnerable communities. Lula’s government recently held a cabinet meeting to discuss whether to ban Bolsa Família beneficiaries from participating in betting activities, although no decision has yet been made.

Further Investigations and Potential Ban

As Brazil grapples with the consequences of its booming online gambling market, a separate parliamentary inquiry has been launched to examine the links between online gambling and criminal organizations. The inquiry, led by Senator Soraya Thronicke of the Podemos Party, aims to investigate potential money laundering activities and other illegal practices connected to online betting. Thronicke, addressing the gravity of the issue, noted, “There is no point in closing our eyes to this problem. It is a fact. It is one of the main reasons for attacks on life and separations.”

In recent months, Brazilian authorities have ramped up efforts to clamp down on illegal betting activities. As part of Operation Integration, a major money laundering crackdown, popular online influencer Deolane Bezerra was arrested in September for her involvement in promoting illegal online gambling activities. The inquiry will delve deeper into these connections, examining how criminal organizations may be exploiting the growing online gambling market.

Senator Dr. Hiran Gonçalves, another key figure in the inquiry, raised concerns about the lack of oversight in online betting transactions, especially with the use of cryptocurrencies and offshore operators. He highlighted the need for a robust inquiry to provide the Brazilian public with answers and ensure that the country’s financial system is not being compromised by unchecked gambling activities.

A Complex Balancing Act

Brazil is now at a crossroads, trying to balance the economic benefits of its rapidly growing gambling industry with the need to protect its most vulnerable citizens. While banning online sports betting entirely may seem like an extreme measure, Lula has made it clear that if the current regulatory measures do not effectively curb the social and economic harms of gambling, more drastic action will be taken.

Lula also acknowledged that completely banning betting may drive it underground, as has been the case with illegal cockfighting and clandestine number betting, known as “jogo do bicho,” which has been prevalent in Brazil since the 19th century. “Brazilians will always find a way to gamble,” he remarked, emphasizing the importance of tackling the problem without pushing it into unregulated spaces.

As Brazil’s gambling market continues to evolve, the government’s efforts to regulate it will be closely monitored. With nearly 25 million new users joining betting platforms this year alone, the stakes are high. If regulation proves ineffective in combating addiction and the negative financial impacts, Lula’s administration has made it clear that a ban remains a viable option.

Source:

Brazil’s Lula Says He Will Ban Sports Bets if Addiction Not Regulated”, reuters.com, October 6, 2024.

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