Illegal Texas Horse Racetrack Raided, Drugs, Gambling Devices Seized

Authorities in West Texas raided an illegal quarter-horse racetrack and arrested nine people for offenses including promoting gambling, money laundering, racketeering, and the manufacture and delivery of a controlled substance.

Carril Mochomos, racetrack, Levelland, Hockley County, Texas, bush racing
Footage taken from Carril Mochomos’ Facebook page, above, shows that it was a slick operation, with professionally produced highlights of races. (Image: Facebook/Carril Mochomos)

Police uncovered 135 grams of cocaine and numerous illegal gambling devices at the track, known as Carril Mochomos, near the city of Levelland, west of Lubbock, Texas.

The raid came after an investigation by animal rights group PETA into the clandestine world of unlicensed horse racing.

The organization said it identified as many as 50 illegal “bush tracks” across Texas, where a lack of regulatory oversight means that the drugging and abuse of horses is rife. PETA estimates that there are more than 150 such tracks throughout the US.

Advertising Openly

Carril Mochomos openly advertised its events on social media and produced professional quality videos of racing highlights, complete with informational graphics.

A September 13 post on its Facebook page written in Spanish advertises the track’s third anniversary, inviting visitors to bring their own beer while offering free candy and a bounce castle for the kids.

PETA said in a statement Monday that it had handed information about Carril Mochomos’ operations to the Texas Department of Public Safety (DPS), which coordinated the raid with the Texas Racing Commission and multiple law enforcement agencies.

PETA’s investigation also uncovered illegal racetracks in Georgia, which led to animal cruelty charges against six jockeys and a felony commercial gambling charge against an on-track bookmaker. Five of the jockeys who face charges in Georgia also race at licensed racetracks across the US.

Drugged, Whipped, Electroshocked

At the Rancho El Centenario bush track in Georgia, the animal rights organization claimed to witness trainers openly injecting horses with stimulants to make them run faster.

On six different visits to the track, PETA investigators collected 27 discarded syringes, which lab tests later revealed contained cocaine, methamphetamine, methylphenidate (Ritalin), and caffeine, sometimes in combination.

While racegoers would wager hundreds of thousands of dollars, trainers and jockeys would “drug, whip, and electroshock horses to try to win at any cost, the organization said.”

Jockeys whipped horses relentlessly — often over 20 times in a row — and other team members even struck the horses from behind as the starting gates opened,” according to PETA. “Jockeys and handlers also whipped and hit horses before races, during loading, and in the starting gates, as punishment and/or to control fractious behavior in the drugged-up horses.”

The PETA investigation in Georgia prompted the California Racing Board to ban its licensees, including jockeys, trainers, and owners, from participating in bush track racing. It’s the first state racing agency to do so.

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Canadian Study Warns Gambling Ad Regulations Are Moving Too Quickly

This-study-suggests-Canadian-regulators-should-pace-themselves-when-crafting-RG-rulesWithin a year of legalizing online gambling in Canada, a surge in public complaints about the volume and content of gambling advertisements has raised concerns. A new study released by the Canadian Gaming Association (CGA) highlights that regulators may be acting more quickly than the available evidence supports. This could result in policies that don’t adequately address the nuances of gambling advertising and may be overly broad or miss key issues.

The CGA published an academic and policy-focused study, warning that the development of gambling regulations is outpacing the research needed to effectively guide these policies. The study, conducted by GP Consulting with contributions from specialists at Eilers & Krejcik and academics from the International Gaming Institute and Washington State University, examines the current state of advertising for online gambling and sports betting.

Regulations Outpacing Research

The study’s central premise is that the evolving regulatory framework for gambling advertising in Canada is advancing faster than the research base supporting it. This, the report warns, could result in insufficiently tailored rules that fail to fully address the complex issues inherent in gambling promotion. The research team conducted a “rapid review” of 41 academic studies related to online gambling advertising and responsible gambling programs. This review is meant to serve as a resource for regulators and stakeholders as they navigate the fast-paced changes in the industry.

Ontario Leading the Charge

Ontario became the first province in Canada to launch a regulated online gambling market in April 2022, and now other provinces, such as Alberta, are expected to follow suit. Ontario’s Alcohol and Gaming Commission (AGCO) has already revised its rules on gambling advertising multiple times. Notably, a ban on the use of celebrities and athletes in gambling advertisements came into effect in February 2024, and Canada’s parliament is currently considering stricter regulations regarding when gambling ads can air on television.

The research recommends that Canadian policymakers pursue more in-depth studies in several key areas, including responsible gambling advertising, consistent measurement of exposure to ads, and the effects on vulnerable populations. The study also stresses the importance of avoiding one-size-fits-all approaches, noting that gambling advertising research from other countries, such as the United States or Australia, may not directly apply to Canada’s unique market.

Key Themes for Responsible Advertising

The authors identified five essential themes that they believe are necessary for ensuring that gambling advertising is both effective and safe:

  1. Responsible Messaging: Advertisements should avoid making false promises or encouraging excessive gambling. The study suggests that campaigns should focus on promoting responsible play rather than depicting gambling as a way to easily win big.
  2. Avoiding Vulnerable Audiences: Ads targeting youth or other vulnerable groups should be strictly limited. Regulations in Ontario already reflect this, with the ban on using celebrities or athletes in promotional materials.
  3. Promotion Restrictions: The report suggests restricting the use of enticing terms like “risk-free” in promotional content, with such offers limited only to consumers who have opted into receiving marketing communications.
  4. Affiliate Accountability: Gambling operators should be held responsible for the actions of their affiliates, ensuring that all marketing practices adhere to regulatory guidelines.
  5. Direct Marketing Controls: Gambling operators should limit direct marketing to individuals who have explicitly consented to receive such communications.

The study places these themes within the broader context of regulatory frameworks in other jurisdictions, such as the United Kingdom, Ontario, Denmark, Michigan, and New Jersey. The UK is considered to have the strictest rules, with Ontario following closely behind and Denmark, Michigan, and New Jersey rounding out the list.

Ongoing Debate and Need for Caution

The CGA’s research arrives at a critical time in the Canadian gambling landscape, as debates continue about how best to regulate gambling advertising. Although Bill S-269, which calls for a national framework for sports betting advertising, is currently stalled in federal parliament, the issue remains at the forefront of industry and government discussions. The report highlights the risk that regulations may be shaped more by public opinion and social pressures than by solid empirical evidence.

The research team emphasized that policymakers need to strike a balance between regulating gambling ads and ensuring that rules are grounded in fact-based evidence. “The approach to regulation in Ontario was shaped in part by the necessity to integrate grey market operators into a regulated framework,” the researchers noted, suggesting that regulatory bodies should remain flexible as the market continues to evolve.

Future Research Priorities

The study also lays out a research agenda for further investigation into several areas, including how to better measure the impact of gambling ads on consumer behavior, how cultural factors influence advertising effectiveness, and the challenges of conducting research in real-world settings. The authors call for more targeted studies that can inform future regulations with greater precision.

Source:

CGA research: gambling ad regulation misaligned with evidence, canadiangamingbusiness.com, September 20, 2024.

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Norway’s Conservative Party Pushes for End to Gambling Monopoly, Major Operators Face Withdrawal

Norways-Conservative-party-joins-calls-for-end-to-gambling-monopolyNorway’s Conservative party (Høyre) has called for the end of the country’s state-run gambling monopoly. The party’s latest manifesto, published ahead of the September 2025 election, proposes a transition to a licensed gambling market, potentially opening the doors to market liberalization by 2028. Norway remains the last Scandinavian country to maintain a gambling monopoly, while its neighbors, including Finland and Sweden, have moved toward more liberalized models.

Currently, the state-owned operators Norsk Tipping and Norsk Rikstoto hold exclusive rights to provide legal gambling services in the country. These monopolies cover a broad spectrum of activities, including physical slot machines, lottery games, online gambling, sports betting, and horse racing. However, Norwegian players have long been able to access international gambling operators licensed outside the country, such as those regulated by the Malta Gaming Authority (MGA).

The Conservative Party’s Push for Change

The Conservative Party’s new manifesto marks a significant shift from its 2021 stance, which supported the continuation of the monopoly system. The updated policy, championed by party members such as Magnus Mæland, Ola Svenneby, Tage Pettersen, and Anita Oterhals Eide, calls for replacing the exclusive rights model with a licensed system. By doing so, the Conservatives aim to increase state revenues while also providing more robust tools to address problem gambling.

“Replace the current exclusive rights model with a licensed model to increase revenues for the state and [provide]

greater opportunities to help those who are struggling with problem gambling,” the manifesto states.

The Conservative Party is the second-largest in Norway’s parliament, holding 36 of the 169 seats and having secured 20.6% of the vote in the 2021 general election. The next general election, scheduled for September 2025, is set to be a pivotal moment in determining whether the monopoly model will be replaced with a licensed framework.

Growing Political Support and Incoming Regulations

The Conservative Party is not alone in advocating for change. The Progress Party, which holds 21 seats, also called for a licensing model in its 2021 manifesto. Additionally, the Liberal Party has expressed intentions to review gambling regulations, particularly to tackle gambling addiction. Meanwhile, the Labour Party, which governs in coalition with the Centre Party, has historically supported the monopoly system and shows no signs of shifting its stance.

Norway’s gambling trade association, Norsk Bransjeforening for Onlinespill (NBO), has responded positively to the Conservative Party’s proposal. NBO’s general secretary Carl Fredrik Stenstrøm, expressed optimism, stating, “I am extremely optimistic this could be our time for a licensed gambling market. Everyone [in Norway]

understands it is a matter of time before the market is liberalized.”

This movement follows similar trends in other Scandinavian countries, such as Sweden and Finland. Finland recently announced plans to adopt a licensed model by 2026, and Norway’s neighbors are often cited as examples in the debate.

DNS Blocking and Operator Withdrawals

In addition to political discussions, Norway is preparing to implement new regulations to tighten control over the gambling market. Starting in January 2024, Norway intends to introduce DNS website blocking for international gambling operators that do not hold a local license. This move has long been in the pipeline, with several proposals previously submitted to the Norwegian legislature but failing to gain approval. Now, political sentiment has shifted, and the upcoming regulations aim to curb access to unlicensed platforms.

International operators such as Unibet, Betsson, ComeOn, and bet365 have long served Norwegian customers by operating under licenses from other jurisdictions, particularly Malta. However, Norwegian regulator Lottstift recently announced that many of these major operators are preparing to withdraw from the market due to increased regulatory pressure.

“Companies that do not withdraw from the Norwegian market risk having their websites blocked next year, when we get new regulations in place,” Lottstift said in a statement.

Despite this, some operators, including Kindred Group (the parent company of Unibet), argue that their services remain legal under international law. A Kindred spokesperson stated, “Norwegian residents have legally and at their own free will chosen to participate in our offers. It is totally legal for Norwegian residents to play with overseas gambling companies, and they are not breaking any Norwegian laws.”

While international operators are facing increasing pressure, the European Gaming and Betting Association (EGBA) has also called for Norway to introduce a licensing system, arguing that it would help tackle the demand for international services more effectively. The EGBA’s secretary general, Maarten Haijer, emphasized that Norway’s current monopoly system is out of step with regulatory regimes across Europe.

Outlook: A Liberalized Market by 2028?

As Norway inches closer to the 2025 election, the debate around the country’s gambling monopoly is expected to intensify. With major political parties divided over the issue and international operators facing new restrictions, the coming years will be crucial in determining the future of Norway’s gambling sector.

Carl Fredrik Stenstrøm of NBO is confident that Norway could see a fully liberalized online gambling market by 2028, following in the footsteps of Sweden and Finland. Public consultations and political negotiations are set to continue, with the Conservative Party leading the charge for change.

Source Attribution:

Norway’s Conservative party joins calls for end to gambling monopoly, igamingbusiness.com, September 11, 2023.

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New Alabama Bill Targets Illegal Gambling with Harsher Penalties

Bill-would-increase-penalties-for-illegal-gambling-in-Alabama-possession-of-slot-machinesAlabama lawmakers are taking steps to strengthen their stance against illegal gambling through a new bill that proposes harsher penalties for those found in violation. The bill, introduced by Republican State Representative Matthew Hammett, seeks to address persistent issues with illegal gambling operations by upgrading penalties from misdemeanors to felonies. These changes are aimed at deterring repeat offenders and curbing illegal activities that have continued to thrive despite current laws.

Proposed Changes in Penalties

Under the current system, those involved in illegal gambling face misdemeanor charges, which come with a maximum sentence of one year in jail and a fine of up to $6,000. However, Rep. Hammett’s bill proposes to elevate these offenses to felony-level crimes. Specifically, promoting gambling would be reclassified as a Class C felony, carrying a possible sentence of one to ten years in prison and a fine of up to $15,000. For repeat offenders, the situation becomes even more severe, with a second violation resulting in a Class B felony, which could lead to a prison sentence of up to 20 years and a fine of $30,000.

Hammett collaborated with Covington County District Attorney Walt Merrell in drafting this legislation. The need for stronger enforcement became apparent after Merrell observed that existing laws were not effective in stopping illegal gambling activities, such as the sale of scratch-off tickets in convenience stores. “I asked him what could be done,” Hammett said, and they worked together on crafting a proposal that would give law enforcement more power to address these problems.

Persistent Illegal Gambling Issues

Illegal gambling has long been a challenge for Alabama authorities. Despite ongoing efforts to shut down these operations, many venues continue to operate. Jefferson County, in particular, has seen electronic gambling halls reopen after being shut down, showing the limitations of current enforcement. Attorney General Steve Marshall has been actively involved in efforts to combat these illegal activities, but the relatively light penalties often allow offenders to return to business soon after facing charges.

Merrell noted that prosecuting illegal gambling cases is particularly challenging because the current laws do not impose harsh enough penalties to deter these activities. In many cases, the individuals running the operations are not the ones being prosecuted, and instead, it is low-level employees, such as store clerks, who end up facing legal action. “How do we hold store employees accountable when the real beneficiaries are those behind the scenes profiting from these illegal activities?” Merrell questioned, emphasizing that the bill seeks to target those truly responsible.

Clarifying Legal and Illegal Gambling

The proposed bill also aims to clarify what constitutes illegal gambling in Alabama, specifically addressing electronic gambling machines like those used in historical horse racing. These machines are currently in use at racetracks across the state, operating under laws that permit pari-mutuel wagering. Hammett emphasized that his bill is not intended to target racetracks or any legal gambling operations, explaining, “Our focus is on illegal activities, not operations that are running legally at tracks.”

Despite Hammett’s push for tougher enforcement, he has expressed personal opposition to gambling in any form. Merrell also voiced his disapproval, citing the negative effects gambling can have on communities. “Both legal and illegal forms of gambling increase poverty, drive up crime rates, and hurt local economies,” he said.

Hammett has pre-filed the bill, HB41, for the upcoming legislative session beginning on February 5, 2025. The legislation is designed to provide law enforcement and prosecutors with stronger tools to combat illegal gambling activities in the state. Discussions are expected to continue as lawmakers weigh the implications of the proposed changes.

Source:

House Bill 41, Alison Legislature.

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Colombia’s Online Gambling Industry Fuels Economic Growth in Q2 2024

Colombia-government-credits-online-gambling-for-supporting-GDP-growth-in-Q2Colombia’s online gambling industry has emerged as a significant driver of economic growth in the second quarter of 2024, contributing to a 2.1% increase in the country’s Gross Domestic Product (GDP). The National Administrative Department of Statistics (DANE) identified online gambling as one of the key activities behind this economic upswing, highlighting the sector’s growing influence on the nation’s financial health.

Online Gambling’s Impact on GDP Growth

The recent report from DANE underscored the vital role of online gambling in bolstering Colombia’s economy, particularly through its association with major sporting events. Piedad Urdinola, DANE’s director, emphasized that the surge in online betting was largely driven by popular sporting events, such as the Copa América, where the Colombian national team made it to the final. This surge in sports-related betting activity has been credited with significantly boosting the overall performance of the iGaming sector.

In the second quarter alone, Colombia’s online gambling market generated a staggering COP10 billion (approximately $2.5 billion). According to Marco Emilio Hincapié, president of the Colombian gambling regulator Coljuegos, sports betting accounted for nearly half (47%) of the total gross gaming revenue (GGR) during this period. The success of the sector reflects a combination of well-regulated markets and strategic advancements that have effectively curbed illegal gambling operations.

Health Sector Benefits from Gambling Revenue

The growth of online gambling in Colombia has also translated into substantial benefits for the country’s health sector. Hincapié reported that, to date, online betting has generated nearly COP231.3 million (around $58 million) in revenues allocated to healthcare. This figure represents a 20% increase in monopoly revenues paid to Coljuegos compared to the previous year, underscoring the sector’s expanding contribution to public welfare.

Colombia was the first country in Latin America to regulate iGaming, a milestone achieved with the enactment of the Egaming Act in 2016. This legislation allowed for the legal operation of both online casinos and sports betting, subjecting operators to a tax rate of 15% of GGR for those with a return-to-player (RTP) rate of 83%, and 17% for operators exceeding this RTP threshold.

Future Outlook and Continued Innovation

The positive impact of the online gambling sector on Colombia’s economy and health system has encouraged regulatory bodies to pursue further innovations. Hincapié expressed optimism about the future of the industry, stating that if current trends continue, the total collection from gambling activities could exceed $1 billion by the end of the year. This would surpass initial projections and provide even more resources for public health and scientific research.

In addition to sports betting, other localized games such as bingo and casino games also contributed significantly, accounting for 33% of the GGR. Lottery games like AstroSport and Baloto added another 13% and 7%, respectively, to the revenue mix.

Hincapié concluded by reaffirming Coljuegos’ commitment to maintaining the growth trajectory of the gambling sector through ongoing regulation and innovation. By fostering a well-regulated environment, the industry aims to generate more jobs, stimulate economic activity, and continue to provide valuable financial support to vital public sectors such as health and research.

Source:

“Colombia government credits online gambling for supporting GDP growth in Q2”. iGaming Business. August 20, 2024.

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