Legal & compliance Archives

September 27, 2023

Waterhouse VC: Ordem e progresso

In his latest column, Tom Waterhouse of Waterhouse VC analyses the burgeoning sports betting market in Brazil after the country's recent regulation.

“Order and Progress”– The national motto of Brazil, inscribed on the Brazilian flag.

The motto is an allegory for Brazil’s new reforms to regulate the country’s US$1.5bn (£1.23bn/€1.41bn) wagering industry.

With 214 million people and 217 indigenous languages in addition to Portuguese, Brazil is a large and complex market. It is also one of the largest online sports betting markets in the world, with 42.5 million unique users. Wagering operators are generating significant revenues in Brazil by leveraging influencer marketing and numerous sports sponsorship deals.

Brazil’s historic and forecasted wagering revenue across online casino, online lottery and online sports betting. Source: Statista

Brazil’s Chamber of Deputies recently passed a gambling regulation act. This act allows online gaming and omnichannel wagering, with operato..

September 26, 2023

West Flagler files challenge against DeSantis and FL legislature

West Flagler has filed a state constitutional challenge against Florida governor Ron DeSantis and the Florida state legislature.

This follows the US Department of the Interior (DOI) filing a challenge to oppose West Flagler’s motion to stay, which was filed last week. This motion to stay was a further attempt to keep Hard Rock Bet shut down as West Flagler prepares to appeal to the Supreme Court.

West Flagler’s latest challenge claims that DeSantis “exceeded his authority” when he agreed to a compact with the Seminole Tribe of Florida in 2021. DeSantis approved the compact in April 2021, and signed it into law the following month.

The compact gave the Seminoles exclusive access to offer online and in-person sports betting in Florida.

But in November that year, a judge for the District of Columbia ruled that the compact infringed upon the Indian Gaming Regulatory Act (IGRA). This reversed the initial agreement.

West Flagler also argues that the legislature exceeded its authority be..

September 18, 2023

West Flagler files motion to stay ahead of Supreme Court appeal

West Flagler Associates filed a motion in the US Court of Appeals for the DC Circuit to keep Hard Rock Bet shut down ahead of its appeal to the Supreme Court.

The filing by the two Florida pari-mutuel betting operators is the latest twist in the fraught legal battle questioning whether the Seminole Tribe are permitted to offer statewide online sports betting through their compact with the state.

West Flagler lost its case against secretary of the interior Debra Haaland in June, clearing the compact from federal objections. Following this loss, it appealed for a rehearing, which the court rejected.

In the motion West Flagler confirmed they would be seeking to appeal the case to the Supreme Court, confirming previous speculation.

If the court opts to deny the motion, then the Seminoles could launch online wagering through its Hard Rock Bet platform as early as tomorrow. Despite this, the tribe may prefer to wait and see how the case will proceed in the Supreme Court to remove legal a..

September 18, 2023

EGBA urges Norway to drop online gambling monopoly

The European Gaming and Betting Association (EGBA) has urged lawmakers in Norway to switch from its current monopoly system to a licensing model for online gambling.

Norway remains one of the last European countries with a state gambling monopoly. Lottery Norsk Tipping has the rights to online casino gaming and sports betting, while Norsk Rikstoto covers horse racing.

However, EGBA says Norway should follow the example of other European markets such as neighbouring Sweden and Finland and make the move to a licensing system. EGBA secretary-general Maarten Haijer said this would help combat issues such as consumers gambling with unlicensed sites.

“The belief that a monopoly model is essential for safer gambling does not align with the current European trend,” Haijer said. “Nearly every other European country has implemented some form of licensing system, successfully prioritising player safety within a regulatory framework that provides clear rules for companies to follow.

“In Norw..

September 15, 2023

Arrests made in Spain as match-fixing network dismantled

The Spanish National Police has made a series of arrests in connection with the dismantling of an organised crime group suspected of fixing sports events and using technology to place bets ahead of bookmakers.

Some 23 arrests have been made through a joint effort with the Spanish Tax Agency, Europol and Interpol. This includes one of the group’s leaders subject of an Interpol Red Notice for persons wanted internationally for match-fixing activities.

The joint operation began in 2020 when Spanish officers identified suspicious online sports bets placed on international table tennis events. Further investigation uncovered a criminal network of Romanian and Bulgarian origin.

According to Interpol, the group fixed matches outside of Spain by corrupting athletes. Once outcomes were agreed, crime group members in Spain placed online bets on what Interpol described as a “massive” scale.

Criminals get ahead of bookmakers

Officers also discovered a criminal process whereby the group acces..

September 14, 2023

Sweden gambling regulator nets funding boost

Sweden’s gambling regulator, Spelinspektionen, is set for a funding boost to ensure it meets Europe-wide commitments to counter match-fixing.

The government plans to increase Spelinspektionen’s (SGA) budget over the next three years. It is to receive SEK10.8m ($970K/€900K/£780K) in increased funding in 2024. It will then receive SEK15.6m in 2025 and SEK18.6m in 2026.

The grant will ensure Sweden meets the requirements of the Macolin Convention of the Council of Europe regarding the manipulation of results in sports, the government said.

The increased budget will also assist the body in restricting illegal gambling, with plans unveiled to work more closely with the Finansinspektionen financial supervisory authority.

The government intends to propose an increase in Finansinspektionen’s allocation by SEK4.5m starting in 2024. This cash will strengthen the authority’s cooperation with SGA in order to block payments to illegal gambling operations.

The proposals are based on an agreeme..

September 14, 2023

Brazil lower house approves gambling bill

Brazil’s Chamber of Deputies has approved the government’s gambling bill, which regulates both sports betting and online casino.

The passage of the bill marks one of the final hurdles in the long journey to regulate online gambling in Brazil, the 10th largest economy in the world.

Bill 3,626/23 – which will replace the provisional measure (PM) president Luiz Inácio Lula da Silva issued in July – was amended several times from the original bill that the rapporteur, deputy Adolfo Viana, presented yesterday.

However, the bill still legalises online casino in addition to sports betting. Betting on fantasy sports will remain illegal due to a specific exemption from the new rules.

deputy adolfo viana presents amended bill

The bill will now head to the Federal Senate, which has 45 days to comment on the bill.

Foreign operators barred from licensing

Unlike the PM, the proposed law excludes foreign companies from offering regulated gambling. Only businesses incorporated under Brazilian ..

September 13, 2023

Online casino included in imminent Brazil gambling regs

Brazil’s Chamber of Deputies is set to vote today on the latest set of sports betting regulations, which leaves in place the high tax regime put in place by the provisional measure (PM), but includes the legislation of online casino.

Bill No 3626/23 amends PM No 1,182 issued by Brazil president Luiz Inácio Lula da Silva in July. If passed, the law would keep in place the high tax regime brought in by the PM. This will maintain the original 18% tax on gross gambling revenue.

However, commentators previously pointed out that once additional mandatory contributions are accounted for the effective tax rate will run between 31% and 34%.

On top of this, the law will impose a 30% tax on prizes won over R$2,112 (£342/€398/$427).

the bill keeps in place the high tax regime imposed in lula’s provisional measure

The maintenance of the high tax rates no doubt will be a blow to Brazil’s gaming industry. The sector largely responded negatively to the original PM, with many criticising the tax r..

September 12, 2023

West Flagler mulls Supreme Court appeal after rehearing denied

After the DC Circuit Court of Appeals denied West Flagler's rehearing motion, the plaintiff will weigh up whether to appeal the matter to the Supreme Court.

In a one-sentence response to West Flagler’s petition the court denied the motion, in the latest twist for the two pari-mutuel betting operators seeking to challenge the Seminole Tribe of Florida’s compact with the State of Florida.

“Upon consideration of appellees’ petition for rehearing en banc, the response thereto, and the absence of a request by any member of the court for a vote, it is ORDERED that the petition be denied,” read the court’s statement.

West Flagler had been seeking an en banc rehearing, meaning the case would be heard by the entire bench of the court, as opposed to the panel of three that ruled in the original case, West Flagler Associates Ltd vs Haaland.

The outcome of the case saw the Seminoles permitted to offer mobile sports betting statewide by confirming the federal legality of the state’s “hu..

September 11, 2023

Missouri sports betting fight could be reignited as new petitions filed

Lawmakers in Missouri are set to again consider plans to legalise sports betting after a series of new petitions were filed in the US state.

Several efforts to launch legal wagering in the state have fallen by the wayside in recent years. However new petitions suggest further proposals and bills could be on the way in Missouri.

Missouri’s secretary of state, John Ashcroft, is accepting comments on four petitions. All filed by Alixandra Cossette, an attorney at Stinson LLP, they relate to legalising sports betting in Missouri in some form.

Petitions propose legal sports betting in Missouri

The four petitions – 2024-135, 2024-136, 2024-137 and 2024-138 – all map out plans for online and land-based gambling.

Each of the petitions refers to the same set of proposed rules for sports betting.

Operators may only hold one licence, with retail permits costing up to $250,000 and online $500,000. Licensees will pay tax at a rate of 10% of gross gambling revenue from sports betting.

If the..

September 8, 2023

Iowa athletes plead guilty to reduced charges

Five current or former Iowa State athletes have submitted guilty pleas to underage gambling as part of a state investigation into sports betting.

The pleas by quarterback Hunter Dekkers and offensive lineman Jake Remsburg, plus former players Dodge Sauser and Aaron Blom and ex-ISU baseball player Gehrig Christensen, were to reduced charges of underage gambling.

The original charge collectively dropped for the quintet – tampering with records – would have carried a maximum penalty of two years in prison. However, each athlete will now pay a $645 fine. None will face further criminal action.

Reduced charges

“The original records tampering charge against these young men never fit this case, either legally or factually,” attorney Mark Weinhardt, who represents Dekkers, Remsburg and Sauser, said in a statement.

“Hunter, Jake and Dodge are not and never were guilty of that charge. The charge has nothing to do with gambling. Other than the fact that Hunter, Jake and Dodge placed some bet..

September 6, 2023

Malta regulator cancels Tipster’s licences

The Malta Gaming Authority (MGA) has cancelled Tipster Limited’s licences in the country after the business was recently wound up.

The regulator in July suspended Tipster in response to the winding up order and is now proceeding with full cancellation. This, the MGA, said was the most “appropriate” measure.

Tipster must now notify all players of the cancellation and settle outstanding fees with the regulator. The sports betting operator is also ordered to remove any reference to MGA licensing from its websites.

All licence cancellations and suspensions in Malta are open to appeal.

Tipster faces insolvency proceedings

The licence suspension and subsequent cancellation come after insolvency proceedings were launched against Tipster in June. Dr Jörg Gollnick was appointed as its provisional insolvency administrator.

Gollnick is also the provisional insolvency administrator for Tipster Service GmbH, part of the Tipster group. At the time, Gollnick said the restructuring hinges on the..

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Tag: Legal & compliance