The post Crown Resorts Hit with AU$2m Fine After Letting 242 Self-Excluded Gamblers Place Bets appeared first on Vegas Slots Online News.
]]>Crown Resorts is in hot water again after letting 242 self-excluded gamblers enter its casino in Melbourne, Victoria and gamble. The Victorian Gambling and Casino Control Commission (VGCCC) has fined the company AU$2m (US$1.3m) for its transgressions from October 2023 to May 2024.
It is illegal in the state for a casino to let self-excluded people step foot on the premises, let alone allow them to place bets. Talking about the penalty, VGCCC Chairperson Fran Thorn explained how Crown failed to protect people and that it’s imperative that vulnerable individuals can trust that gambling operators will carry out their harm prevention policies.
the mistakes weren’t intentional but rather the result of systemic failures
The regulator acknowledged the mistakes weren’t intentional but rather the result of systemic failures. Crown must cooperate with an independent expert to examine its policies regarding self-excluded gamblers and implement recommendations to prevent similar incidents from happening in the future.
Crown Resorts is no stranger to financial penalties, having paid over AU$250m (US$168m) in the past to the VGCCC alone for historical failings, including anti-money laundering and responsible gambling failures.
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]]>The post UK Gambling Stocks Lose ￡3bn Amid Talk of Tax Raid appeared first on Vegas Slots Online News.
]]>UK betting companies have taken sharp hits to their stock prices after reports emerged that the government was considering hefty tax hikes on gambling operators.
Almost ￡3bn ($3.92 bn) was wiped off the value of UK gambling stocks following a report in The Guardian which claimed that Chancellor Rachel Reeves was under pressure from leading think tanks to squeeze the betting industry with tax increases.
Flutter Entertainment, which is listed on the New York Stock Exchange, fell by 9% on Friday when the report emerged. When UK index FTSE opened on Monday, Entain fell by 14%, while Evoke also suffered a 12% haircut.
urged more than doubling taxes on “higher harm”?products
The report stated that the Institute for Public Policy Research, a left-leaning think tank, had urged more than doubling taxes on “higher harm” products such as online casino games, while exempting items such as lotteries and bingo.
Another think tank, the Social Market Foundation, proposed doubling the tax on online gambling companies.
Financial services group Jefferies, however, questioned the likelihood of such severe actions saying that they would “effectively wipe out listed operator profitability and likely pose an existential threat to many smaller operators.”
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]]>The post Genting Partner Files $600m Lawsuit Alleging “Massive and Co-Ordinated Fraud”? appeared first on Vegas Slots Online News.
]]>Malaysian casino giant Genting Bhd is facing a lawsuit from a partner alleging that the company has been dumping vast liabilities onto its Resorts World Bimini (RWB) property in the Bahamas.
RAV Bahamas, which owns 22% of the RWB operating entity BB entertainment, alleged in a lawsuit filed last Monday that Genting, who owns the remainder of the stake, dumped more than a billion dollars of liabilities onto the Bahamas property in “a massive and co-ordinated fraud.”
The lawsuit, filed in the US District Court for the Southern District of Florida, stated: “To date, BB Entertainment has not distributed any profits to RAV from this venture because Genting Americas, who controls BB Entertainment’s finances, has used BB Entertainment as its financial wasteland.”
Genting Americas has used BB Entertainment to conceal a medley of fraudulent activities”
“Through its stranglehold over BB Entertainment and its finances, Genting Americas has used BB Entertainment to conceal a medley of fraudulent activities.”
The RWB property, a 10,000 square-foot casino, also contains 305 hotel rooms, multiple restaurants and lounges, as well as facilities for docking cruise ships.
The BB Entertainment partnership was initially formed as a 50/50 venture in 2012 to develop RAV’s Bimini Bay property, with RWB being constructed on land owned by RAV later before Genting took over majority control.
“The estimated value of BB Entertainment’s resort is substantially less than the approximately US$900 million in liabilities that remain on BB Entertainment’s financials,” stated the lawsuit.
“Genting Americas has effectively deprived RAV of the entire value of RAV’s over 20-acre contribution without having ever received any return for that contribution.”
hundreds of millions of dollars in illegitimate debt”
“What is clear is that Genting Americas’ fraudulent accounting practices have drowned BB Entertainment in hundreds of millions of dollars in illegitimate debt.”
RAV is seeking damages of over $600m from Genting, which is valued at around $3.13bn.
BB Entertainment’s auditor has also expressed doubts about the future of the partnership, with RWB consistently incurring losses since the partnership began in 2012.
The group recorded a $151.28m loss for the year ending Dec 31, 2022, a significant increase from 2021, when it recorded losses of $114.2m. The partnership’s liabilities now stand at a total of $885.2m.
Genting Americas is of the view that the complaint is baseless and totally without merit”
Responding to the lawsuit, Genting stated: “Genting Americas is of the view that the complaint is baseless and totally without merit and will vigorously defend against the complaint.”
The company said it would comment further as the situation developed.
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]]>The post UK Government Mulls Higher Gambling Taxes to Fill Budget Gap appeared first on Vegas Slots Online News.
]]>UK Chancellor Rachel Reeves hopes to fill in a ￡22bn (US$24.05bn) black hole in the nation’s finances. The solution? A tax raid of up to ￡3bn (US$3.28bn) on the gambling sector. Treasury officials are considering proposals advanced by two influential think tanks to double taxes levied on online casinos and bookmakers. If approved, the measures would be Labour’s first budget inclusion in 14 years.
It’s definitely on the map. There’s no obvious pushback to it.”
Industry lobbyists oppose the revisions to the UK’s complex system of betting and gaming duties, but one source familiar with Treasury thinking told The Guardian: “It’s definitely on the map. There’s no obvious pushback to it.”
Derek Webb, both a former poker player and casino game inventor, put forth a call for higher taxes on the gambling industry, which accumulates ￡11bn (US$12.03bn) a year in revenue. Webb stands as the Labour party’s fifth-largest individual donor since the start of 2023, having given ￡1.3m (US$1.42m) to Labour.
A report by the left-leaning think tank Institute for Public Policy Research (IPPR) estimates the government could raise ￡2.9bn (US$3.17bn) by next year, with projections showing that number could rise to ￡3.4bn (US$3.72bn) by 2030, if the government will double taxes on “higher harm” products, which include online casino games.
The IPPR’s proposals call for leaving duties on “lower harm” games untouched, which include the lottery and bingo. The proposal would instead double taxes on activities like the 15% general betting duty, which affects retail bookmakers’ profits. In another example, the remote gaming duty levied on online operators is currently charged at 21%, but that would rise to an astonishing 50% under the IPPR’s plan.
it will create incentives for companies to focus on lower-harm products
IPPR said: “We suggest this is the best application of the ‘polluter pays’ principle and it will create incentives for companies to focus on lower-harm products.”
A separate think tank, the Social Market Foundation, proposed a more moderate plan that would merely double the tax levied on online gambling companies from 21% to 42%. Derek Webb helps fund the SMF and has pointed the Treasury to examples from other jurisdictions – such as the United States – that outearn the UK through higher online gambling taxes.
Opposition to the taxes, however, points to the rise in black market gambling, where similar regulations and higher taxes have been passed. A spokesperson for the Betting and Gaming Council said: “Comparable markets abroad which have imposed draconian regulations and disproportionate tax regimes have seen a spike in illegal black market gambling.”
According to The Guardian, one industry source said: “The anti-gambling lobby has donated at least ￡1m (US$1.09m) to Labour over the past 18 months and you have to wonder what they expect to get in return for that.”
Indeed, senior figures in the UK’s ruling Labour party have received gifts from the gambling industry totaling over ￡1m (US$1.3m).
Dan Waugh, an adviser at the gambling consultancy Regulus Partners, said: “If one raises the cost of consumption, it is conceivable that one may cause additional harm, because at some point the consumer will bear that additional cost.”
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]]>The post US Sports Betting Handle Since Ending of Federal Ban Passes $400bn Mark appeared first on Vegas Slots Online News.
]]>Legal US sportsbooks have taken more than $400bn worth of bets since the end of the federal ban on the activity in May 2018.
38 states and Washington DC now have some form of legal sports betting, with big hitters like New York, North Carolina, Massachusetts, and Ohio launching over the past couple of years to drive momentum. Not every region with legal sports betting releases their results either, most notably including Florida, the most populated US state with online sports betting.
$400bn handle mark was hit on Thursday
The $400bn handle mark was hit on Thursday after the Kansas and Maryland authorities released their wagering figures for last month. Many states are on track for a record-breaking year, with interest levels constantly on the rise across the country as online betting becomes more popular and sports leagues, content creators, and broadcasters continue to embrace the sector.
Efforts to legalize sports betting in the country’s two most populated states, California and Texas, have been unsuccessful so far. While New Jersey remains at the top of the all-time handle rankings since the end of the Professional and Amateur Sports Protection Act (PASPA), New York is rapidly gaining ground despite launching 3.5 years later than its neighbor.
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]]>The post Mining Company Sues Wynn for Letting Fraudster Gamble Millions Without Checks appeared first on Vegas Slots Online News.
]]>A mining company is suing Wynn Resorts after a man used money from the firm to gamble at one of its casinos. James Bay Resources Ltd claims that former Philippines decathlete David Bunevacz gambled away about $3.8m at the Wynn Las Vegas, with some of the money belonging to the Canadian Stock Exchange-listed company.
The company’s president, Stephen Shefsky, loaned $1.1m to Bunevacz
He was on probation at the time after receiving a prison sentence for selling securities without the necessary qualifications. The company’s president, Stephen Shefsky, loaned $1.1m to Bunevacz, while the mining firm gave a total of $3.5m to two companies under the control of the 56-year-old and his daughter.
The lawsuit against Wynn, filed in the Ontario Court of Justice in April, claims the casino company was negligent and benefited from unjust enrichment.
allegedly failed to do a background check to uncover Bunevacz’s criminal history
It allegedly failed to do a background check to uncover Bunevacz’s criminal history and the various civil lawsuits and tax liens against him. The plaintiff argues this would raise doubts about the legitimacy of the money he was gambling with.
The complaint also questions why Wynn didn’t stop Bunevacz from gambling when he was exhibiting clear signs of gambling addiction.
It eventually came to light that the former decathlete raised more than $39m for a fraudulent vape pen business from 40 investors, ultimately gambling away about $8m of that total. He received a 17-and-a-half-year prison sentence in 2022 for his crimes.
That wasn’t the first time the grifter ripped off investors. He sold 17,000 Vancouver Winter Olympics 2010 tickets to a company for more than $10m without delivering the allocation. They settled the case following a three-year legal battle.
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]]>The post Wynn Resorts Increases UAE Budget by $1.2bn After Securing Casino License appeared first on Vegas Slots Online News.
]]>Wynn Resorts became the first recipient of a casino license in the United Arab Emirates (UAE) last week, allowing it to include a gaming floor at the luxury resort it is already developing in Ras Al Khaimah.
The casino company announced on Tuesday during an investor presentation that it is increasing the budget of this project by $1.2bn, taking the total cost up to $5.9bn.
The aim is for the Wynn Al Marjan Island resort to open in early 2027, marking the first time a Gulf State would offer legal casino gambling.
The company’s share price is up 38% over the past month
Wynn Resorts believes gross gaming revenue (GGR) at the resort will reach $1.6bn annually. This compares favorably to revenue at the Wynn Las Vegas, which generated $628m in 2022. The company’s share price is up 38% over the past month as optimism grows about the UAE project.
Analysts believe the UAE will prove a lucrative market for casino companies, estimating annual GGR to reach between $3bn and $5bn. However, some unknown factors that will influence this number include the number of licenses that will be premitted and if locals will be able to gamble too. The most likely destinations for other casinos are Abu Dhabi and Dubai.
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]]>The post Playtech Management Facing Scrutiny Over “Obscene” €100m Bonus Plan appeared first on Vegas Slots Online News.
]]>Playtech shareholders are questioning the recent proposal of a €100m ($110m) bonus scheme for top company executives. The gambling software development company announced the package the same day it completed the sale of Italian gambling operator Snaitech for €2.3bn ($2.5bn) to Flutter Entertainment.
Snaitech’s management would have a €34m ($37m) bonus pool under the plan
Current CEO Mor Weizer would be the biggest winner from the plan, although Playtech didn’t outline exactly how much he could receive. A clause would permit executives to receive 10% of the profit from selling parts of the business in the future. Snaitech’s management would have a €34m ($37m) bonus pool under the plan.
Certain shareholders questioned why the bonus plan isn’t linked to performance targets.
In an open letter to the company’s remuneration committee chairperson, Australian activist investor Jeremy Raper went as far as calling the bonus plan “the most egregious case of shareholder value expropriation in the history of UK public market.”
would set a dangerous precedent as management could agree to further deals
He believes it would set a dangerous precedent as management could agree to further deals no matter what impact they might have as they would get a cut of the deal.
Palm Harbour Capital’s Peter Smith said in his letter that the sole reason for the bonus package is due to the big cash intake following the sale. He believes the executives already receive handsome remuneration that is partially linked to the share price performance.
He noted how the share price dropped following the Snaitech announcement when it should have “rallied strongly,” which he believes is a sign the market agrees with his viewpoint.
Playtech intends to hold a shareholder vote on the matter by the end of November, already having support from 34.4% of the company’s shareholding. Explaining the reasons behind the bonus, Weizer said during a Monday earnings call that it would create incentives for expanding the business and creating more value for investors.
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]]>The post IRS Commits to Going After $1.4bn in Unpaid Taxes From US Gamblers appeared first on Vegas Slots Online News.
]]>The IRS is cracking down on people who don’t pay taxes on their gambling winnings after a recent audit showed that over $1.4bn went unpaid. A recent Treasury Inspector General for Tax Administration (TIGTA) report highlighted that 139,045 people in the US who won over $15,000 from 2018 to 2020 did not file the necessary tax returns to report this income.
will start with the 100 biggest cases
The analysis estimated that gambling winnings totaled over $13.2bn for the period, which led to the $1.4bn unpaid taxes figure. About 103,000 of the non-filers did not receive any notice or enforcement action from the IRS; TIGTA recommended the agency begin doing so. The IRS agreed with this advice and said it will start with the 100 biggest cases.
Another issue the report uncovered was people filing the W-2G gambling winnings forms without providing a Tax Identification Number (TIN), making it more difficult for the IRS to track compliance. Additionally, the IRS lacks proper systems for spotting tax compliance failures by gaming operators, especially among companies in the online sports betting space.
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]]>The post French Gambling Giant FDJ Completes €2.5bn Kindred Group Purchase appeared first on Vegas Slots Online News.
]]>France’s biggest gambling company has completed its €2.45bn ($2.7bn) purchase of the Kindred Group. La Fran?aise des Jeux (FDJ) confirmed on Thursday that it now controls the NASDAQ Stockholm-listed group after at least 90% of shareholders gave the deal their blessing.
The new entity will be the second-biggest gambling operator in Europe.
FDJ initially submitted its takeover bid in January, and the transaction went through the relevant regulatory approvals and other typical closing conditions before the shareholder vote. The new entity will be the second-biggest gambling operator in Europe.
FDJ Chairperson and CEO Stéphane Pallez believes the acquisition will help drive profitable growth, and Kindred’s portfolio of “strong brands” and “recognized technological excellence” will improve FDJ’s existing operations.
Brands in the Kindred Group portfolio include 32Red, Unibet, and Bingo.com; some of its main markets include the UK, Sweden, and the Netherlands.
64% of the merged company will be made up of FDJ’s French monopoly in retail sports betting and lottery products. Another 30% will relate to Kindred’s online gambling operations and 4% will be international lottery operations. The remaining 2% is for payment and services verticals.
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]]>The post UK Council Accountant Who Stole ￡1m to Fund Gambling Addiction Jailed for Five Years appeared first on Vegas Slots Online News.
]]>A council accountant who stole almost ￡1m ($1,314,000) in public money to fund a gambling addiction has been jailed for five years.
equivalent to 6% of the entire annual budget of the local authority
Alan Doig, 57, was employed by Gedling Borough Council in Nottinghamshire, England as a senior accountant. Over a period spanning two decades, he managed to steal a huge sum to fund his online gambling addiction. The total was equivalent to 6% of the entire annual budget of the local authority.
Doig used his own knowledge of the accounting system to carry out the fraud, which he spent on gambling almost ￡2,000 ($2,262) per night, mostly on online slots.
Doig was seen as a “popular and credible” member of staff at the council, where he had worked for more than 20 years.
He told authorities that he had been gambling small amounts since he was 17, but won ￡12,000 ($15,779) one night on online slots, leading gambling to become “a constant, every single night.”
It was all he thought about, day in and day out”
Prosecutor Alan Murphy said that from then on: “It was all he thought about, day in and day out. He opened multiple online accounts to avoid betting company restrictions and once he’d used up his salary and savings he started committing fraud, chasing his losses.”
“He had around 20 accounts. He thought he was spending ￡2,000-per-night. He said his problems had been over the last 15 years.”
Doig was eventually caught when a suspicious assistant noticed discrepancies in a car loan scheme while preparing a report for the UK customs service.
At a hearing, Doig pled guilty to charges of fraud by abuse of position and obtaining money transfer by deception.
A business impact statement from the council Chief Executive Mike Hill stated: “This loss has had a real and significant impact on not only the council, but every individual resident in the borough.”
In a separate victim statement, Hill reassured locals, saying: “We are confident that this was an isolated incident by a man with a serious problem. He stole public money, which could have been used to pay for essential services, and we want to reassure the public that the money will be recuperated in full.”
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]]>The post Bank Analysts Estimate Casino Revenue in Bangkok Could Top US$5bn Yearly appeared first on Vegas Slots Online News.
]]>Thailand’s government is currently debating the legalization of integrated resorts (IRs) which analysts predict would prove a big boom for their coffers. Analysts from JP Morgan estimate that IRs in Bangkok, the country’s capital city, could generate revenue of up to $5bn annually if the government issue three licenses.
conservatively suggested a minimum of $2.5bn if only a couple of licenses are permitted
JP Morgan issued its report on Wednesday, focusing on the potential opportunities for these entertainment complexes. They conservatively suggested a minimum of $2.5bn if only a couple of licenses are permitted, with the large number of tourists arriving in the city each year making up the bulk of the demand.
Despite IRs offering an array of other entertainment options, analysts believe gaming floors would account for at least 90% of total revenue, and more than half of the business would come from overseas tourists. Bangkok is one of the most visited cities in Southeast Asia, attracting almost 26 million international visitors last year.
The report considered other markets in the region as a means of comparison when estimating the potential revenue, including Macau, Singapore, the Philippines, and South Korea.
comparing Bangkok to Singapore as the two regions have similar populations and urban area sizes
It especially focused on comparing Bangkok to Singapore as the two regions have similar populations and urban area sizes. Analysts did argue that some stark differences, including the more diverse range of tourist attractions in Thailand, could mean a lower conversion rate for casinos.
The report also noted how locals in Thailand have a relatively lower level of wealth and income in comparison to Singapore, which would impact revenue from locals. An entrance fee for residents could also stop people from visiting.
After outlining these contrasts, the analysts still believe Singapore is a good model for Bangkok if IRs become a reality.
The legalization bill remains under consideration in parliament, with the current draft proposing gaming areas be no more than 5% of the complex’s space. The licenses would be valid for 30 years, and the government suggests having two permits for Bangkok and the others in the Eastern Economic Corridor, Phuket, and Chiang Mai.
Some global casino companies are already expressing interest in a potential Thailand IR, including MGM Resorts International, Wynn Resorts, and Caesars Entertainment.
Opposing views are still present in the debate among lawmakers about the specifics of an IR market. Thailand’s Prime Minister Korrawee Prissanantakul believes the government should operate the casinos to enjoy the full benefits, while Minister of Finance Julapan Amornvivat disagrees, saying they should have experts running these properties.
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