Tennessee became the first state to tax sports betting operators on the total gross wagers instead of revenue after Governor Bill Lee signed Senate Bill 475 into law on May 17. The new law imposes a 2% gross wager tax, replacing the previous tax of 20% on adjusted gross income. Under the new law, sports betting operators are no longer required to partner with Genius Sports for NFL official league data and hold 10% of their handle on an annual basis.

What are the New Requirements for Licensed Sports Betting Operators?

Licensed betting sites began accepting sports wagers in Tennessee in 2020. Similar to all other states that legalized online sports betting, the state taxed operators based on their adjusted gross gaming revenue. Before Governor Lee signed Senate Bill 475 into law, operators were required to use official league data to settle in-play wagers. Besides, licensees had to pay a 10% tax on all wagers.

But that is already in the past because Tennessee Governor Lee approved Senate Bill 475, which was introduced in January this year. In April, the legislation was passed by the Senate on a 30-0 vote. Shortly after that, the bill passed the state’s House of Representatives with a 75-7 vote.

The new law came after several sportsbooks failed to hit the 10% hold. The betting operators who found themselves unable to comply with the state’s 10% hold rule decided to pay a $25k fine instead of the difference between what they paid in taxes and the amount they would pay if they met the requirement. The Tennessee Sports Wagering Advisory Council (SWAC) believed this led to significant losses for the state, amounting to $10 to $12 million in revenues.

Sports Wagering Advisory Council reported that the total sports handle in Tennessee saw a dramatic year-on-year growth of 9%, reaching $318.4 million this April. Adjusted gross income for the month was $32.2 million, while the state collected $6.4 million in taxes. Licensed betting sites paid out a total of $284.1 million in wins.

The Reason Behind Tennessee’s Decision to Changed Its Sports Betting Tax System

Tennessee adopted the new rules in a bid to maximize revenue for the state government. The new law is projected to boost Tennessee’s revenue by $7.36 million annually by fiscal year 2024. It is unclear whether the new law will produce the desired effects. According to industry experts, the new tax regime is a double-edged sword as the state may experience a revenue decline if the handle dips.

Senate Bill 475 was not the only legislation that sought to change the state’s sports betting tax system. House Bill 1362, which was also introduced in January, proposed a 1.85% tax on operators’ handles. But the measure has never appeared on lawmakers’ agenda for further consideration.

Currently, the state offers only online sports betting. The state has granted permits to 11 sportsbooks, with FanDuel, DraftKings, and BetMGM being among the licensed operators. In 2022, all licensed betting sites recorded a handle of over $2.5 billion.

Today, media agency The Washington Post revealed that BetMGM, one of the leading sports betting platforms in the United States, offered a staggering amount of $12k to a customer, who contended that one of the sportsbook’s promotions was deceptive.

Although the operator rejected the claims, the anonymous customer revealed that the sports betting company offered him the money on one condition – that he signs a confidentiality agreement. However, it appeared that BetMGM picked the wrong person as the customer appeared to be a regulatory attorney who decided to fight for justice and refused the tempting offer.

What was Wrong with BetMGM’s Risk-Free Bonus?

Last fall, a man from Virginia decided to take advantage of BetMGM’s risk-free promotion. But the bonus turned out to be quite complicated and not that beneficial to players. The customer found that BetMGM offered a “bonus bet”, which did not pay real cash. Instead, it allowed him to place wagers without using his funds. But the man appeared to be a regulatory attorney who claimed that the offer was deceptive and against state laws.

The Washington Post attempted to contact the sports betting company several times but to no avail. In a statement, BetMGM only said it no longer offers the promotion in question. The man shared his emails with BetMGM to The Washington Post.

From the man’s correspondence with the sports betting company, it became clear that BetMGM rejected the claims but offered the customer a full refund to compensate him for the inconvenience he experienced. However, the operator asked him to sign a confidentiality agreement, under which the man would be prohibited from making the case public.

BetMGM Does not Violate State Laws, According to the Virginia Lottery

After two months of exchanging emails with BetMGM, the company’s offer reached $12k. But the customer responded that he would decline any deal that would forbid him to share his experience with others.

The man brought the case to the Virginia Lottery – the authority responsible for regulating the sports betting industry in the state. An investigator said that BetMGM did not violate state laws and closed the case without further explanation. The customer was shocked that the Virginia Lottery could not explain the reasons for its own decisions and even preferred to buy his silence.

To attract customers’ attention, many betting sites have started using the term “risk-free” to describe some of their promotions. But according to industry experts, these offers are deceptive and misleading because they can cause significant losses, too.

Several states, including Ohio and Massachusetts, decided to prohibit operators from using the term “risk-free” in advertising because such promotions involve financial risks. In March this year, Ohio’s regulator slapped BetMGM and two other operators with a fine of $150k each for running afoul of responsible gambling messaging rules.

Sports betting companies licensed to operate in Ohio were warned that if they present their services as fantasy contests in order to pay lower licensing and compliance costs, they violate the state’s gambling law and may be penalized for that. Ohio authorities said the same goes for “fantasy” operators offering services that look a lot like sports betting. At a meeting held on Wednesday, the Ohio Casino Control Commission officials reiterated the legal definition of fantasy contests and said that only contests that meet all requirements would be classified as daily fantasy contests.

Why Some Sports Betting Operators Present Their Services as Fantasy Contests?

Ohio legalized daily fantasy sports in 2017, while sports betting was launched in January 2023. Although the state has a clear-cut statutory definition of daily contests, some licensed sports betting operators try to disguise their services, presenting them as fantasy contests, and there are several reasons for this.

First, “fantasy” operators pay lower license and compliance fees. While fantasy operators pay no more than $30k for a permit, sports betting companies have to part with $1 million if they want a license. Second, Ohioans can bet on fantasy contests when they turn 18, while the legal age to bet on sports is 21.

At a meeting held on Wednesday, Matt Schuler, executive director of the Ohio Casino Control Commission (OCCC), explained that regulatory problems are not unusual for the gambling market. He added that many fantasy operators offer prop bets, presenting them as fantasy contests. Schuler noted that OCCC General Counsel Andromeda Morrison sends cease-and-desist letters to operators falling afoul of the law.

What is the Legal Definition of Fantasy Contests in Ohio?

The Ohio Casino Control Commission is responsible for overseeing and regulating the daily fantasy contests market. Since January 1, 2023, the authority is also tasked with regulating all online sportsbooks. The regulator proved to be pretty strict, taking its responsibilities seriously.

According to Ohio’s law, fantasy contests are not gambling. Hence why, fantasy and sportsbook operators are subject to different oversight. The state’s law stipulates that fantasy contests should meet specific requirements to be considered as such. All fantasy contests should include an entry fee and a set prize. Additionally, players must use knowledge and skill to compete against each other.

On Wednesday, the deputy director of licensing told commissioners that the OCCC had issued 23 fantasy sports licenses to operators and renewed two permits since 2020. Schuler said that all contests must strictly follow the said criteria to be classified as fantasy contest games. He added that convincing the companies and their attorneys that they violate the law is a challenging task.

StopSpillet revealed disturbing information that 88% of the people who contacted the helpline started gambling before they were 25 years old. Data shows that 50% of the callers placed their first bet when they were 17 years old or younger, while the minimum age at which Danes are allowed to gamble is 18. Since 2019, when StopSpillet was launched, over 2,500 people contacted the helpline via phone or chat.

Statistics about the People Who Contacted Denmark’s StopSpillet Helpline?

Those who contact Denmark’s StopSpillet helpline are usually asked when they placed their first bet. Based on that information, Denmark’s gambling regulator, the Spillemyndigheden, has published a report, revealing that 88% of the people who contacted its helpline placed their first bet when they were before the age of 25. What is even more alarming is that 50% of the players started gambling before they were 18.

The helpline has received nearly 2,500 calls since its launch in 2019. Of all people who contacted StopSpillet, 39% sought help for their relatives with gambling problems. As much as 17% of the calls came from partners, while another 17% came from the players’ children or other relatives. Data from the StopSpillet helpline revealed that the callers experienced gambling problems for approximately two years and seven months before contacting the helpline.

In a bid to spread problem gambling awareness, the Danish gambling regulator promotes its StopSpellt helpline on different channels such as TV and social media. Besides, StopSpellt advertisements can be seen at bus stops and train stations.

What Responsible Gambling Measures are in Effect in Denmark?

A week ago, the Danish gambling authority announced it would focus on conducting responsible gambling research. The research will be led by a new Danish Gambling Committee, which will partner with industry experts in the problem gambling field.

Funding for the research was contributed by licensed and reputable operators such as Danske Spil, Mr Green, Kindred Group, and others. The country is expected to introduce new responsible gambling measures based on the data resulting from the research.

The Danish gambling market continues to surge despite the tough restrictions imposed on operators and players. Denmark has upped the ante in the fight against problem gambling. Last year, the Danish gambling regulator prohibited operators from offering reactivation bonuses to lapsed players as part of its responsible gambling policy.

As of January 2020, all players must set monthly, weekly, or daily deposit limits before being allowed to gamble. Moreover, Danish lawmakers capped the size of a casino bonus to DKK 1,000. As of October this year, land-based casinos will be required to register their players to ensure customer protection and combat money laundering processes.

Rep. Ben Collings rolled out a new casino bill that aims to keep the door open for a tribal casino proposal. The legislation is introduced just a few weeks before state lawmakers are expected to act on a bill that would recognize the sovereignty of Maine’s tribes.

Collings’ proposal, LD 1944, would require the state to negotiate a gaming compact with the tribes that want to open gambling venues on their territories. If the legislation becomes law, the state would also need to negotiate with all federally recognized tribes in Maine for a casino on non-tribal land.

The Tribal Sovereignty Bill is More Important Than the Casino Legislation

Rep. Ben Collings, who has worked as a tribal consultant for years, introduced a casino bill seeking to authorize the state’s recognized tribes, the Passamaquoddy, Penobscot Nation, and Houlton Band of Maliseet Indians, to build and operate casinos on their land. LD 1944 would urge the state to negotiate a gaming compact with Maine’s federally recognized tribes.

Additionally, the legislation seeks to convince the state to allow the tribes to open one casino on non-tribal land as long as it is not situated in Penobscot or Oxford counties, where Maine’s two privately operated casinos are located.

Collings explained that gambling could generate more money for the tribes, but the state should recognize their sovereignty first. Last year, the Legislature adjourned without acting on the proposed tribal sovereignty bill. In a letter to legislative and tribal leaders, Governor Janet Mills explained that she does not support the tribal sovereignty legislation because it could lead to tension and division in the state.

Why Maine Lawmakers Have Not Recognized the Tribes’ Sovereignty So Far?

Last year, Maine legalized sports betting, giving the three federally recognized tribes exclusive rights to launch online or mobile sports betting platforms. But the state gambling watchdog is still working on the rules that will govern the industry. On May 3, Maine’s three tribes announced that they entered into a partnership with Caesars Digital to offer online sports betting services.

In a letter to tribal members, Penobscot Nation Chief Kirk E. Francis said that the agreement ensures the tribes would receive mandatory minimum payments every year once the commission allows them to commence operations. On Tuesday, a spokesman for the Wabanaki Alliance said that the tribes have no particular casino plans yet. At the start of the current legislative session, tribal chiefs told lawmakers that sovereignty is their priority.

In 2021, Collings submitted a tribal gaming bill, also known as LD 554, seeking to grant the same level of sovereignty over gambling as most other tribes across the country have. Collings’ legislative effort was approved by the Senate and the House but could not receive the two-thirds majority required to override Governor Mills’ veto.

On Monday, a three-judge panel in a US appeal court agreed to revive a nine-year-old class action filed against Resorts World New York City, operated by the Malaysian company Genting. The lawsuit claims the company violated federal and state laws by laying off 177 buffet workers without notice.

Lawyers for Genting said that the eatery was not separate from the casino, meaning it was not an independent employment site. Defendants also added that many of the buffet employees worked in other casino restaurants. Two circuit judges, however, decided that the company might have, indeed, violated Worker Adjustment and Retraining Notification (WARN) Act.

Resorts World New York City Allegedly Had to File Notice Before Laying Off the Buffet Workers

On Monday, two out of three judges in the US 2nd Circuit Court of Appeals voted in favor of renewing the proposed class action suit against Resorts World New York City over the layoffs of 177 employees who worked in the casino’s eatery called Aqueduct Buffet. According to court filings, the company terminated the workers’ contract without notice in 2014.

As a result, the employees decided to bring the company to court, claiming that it violated the Worker Adjustment and Retraining Notification (WARN) Act, under which companies must file a 60-day notice if it plans to terminate the contracts of more than 33% of its workers. Former buffet workers claim that Resorts World New York City terminated their contracts on the same day the eatery closed. Casino officials told them that the restaurant did not make a profit for a long time, which led to its closure.

The Buffet is an Independent Employment Site

The litigation experienced significant delays for various reasons, including the pandemic. In March 2021, US District Judge Leo Glasser ruled in favor of the company, explaining that the eatery offered the same working conditions as other restaurants owned by Resort World. Glasser noted that the company did not violate the WARN requirement because the eatery was part of the casino, which means that the 177 layoffs represented not even 10% of the company’s staff.

But on Monday, Glasser’s ruling was reversed after Circuit Judges Denny Chin and Jon Newman voted in favor of reviving the lawsuit. The pair found that the company may have been required to file a WARN notice after consultation with the US Department of Labor.

In a written statement, Chin and Newman explained that the eatery had a separate entrance and the workers had to wear different uniforms than other casino workers. Additionally, it occupied an area not attached to other amenities. Therefore, the buffet must be treated as an employment site independent of the casino.

At a public hearing held last week in Tuchoměřice, Czech gaming operator GPC Win a.s. introduced a new project of a hotel and a multifunctional casino, which would host international poker tournaments. The operator wants to build its Grand Arena hospitality complex in Tuchoměřice, a small town close to Prague and Václav Havel Airport. The proposed casino and convention center would invigorate the local economy and tourism.

Another casino project was introduced by a Czech investment and property company during the hearing. The proposed casino would be located behind the POP Airport Outlet and entertainment center in Tuchoměřice. It would feature live games and slot machines.

What the Proposed Casinos Would Offer?

King’s Casino in Rozvadov may get some competition as the Czech gaming operator GPC Win a.s. presented a project for a hotel and casino in Tuchoměřice. King’s Casino plays host to many major poker events, but GPC Win’s Grand Arena may become a preferred venue for international poker tournaments because the town is very close to the Czech capital, Prague, and Václav Havel Airport.

The company revealed that the gambling venue would offer 140 gaming tables, 25 roulette and blackjack tables, and 400 gaming machines. The casino’s target audience would be high rollers. The project also includes a 72-room hotel, exquisite restaurants, and bars.

During the hearing, the Czech investment and property company Kaprain, which owns the POP Airport entertainment center, introduced another casino project. The proposed gambling venue would offer live games and slot machines. Kaprain’s representatives revealed that the company also plans to build an outdoor part of Majaland – the largest indoor amusement park in the Czech Republic.

The Pros and Cons of Having Gambling Establishments in a Small Town

The companies expressed hopes that their casino projects would encourage the city to improve its infrastructure. However, they did not suggest covering the expenses associated with the improvements. Members of the two companies explained that the city would receive tens of millions in tax revenue from the gambling venues, which could be used for infrastructure growth.

Of course, the casino projects invoked mixed feelings among Tuchoměřice residents, who recognized the economic benefits of having a casino but also acknowledged the downsides. People opposing the casino proposals explained that gambling often leads to increased criminal activity, social problems, and noise. Some residents spoke in favor of the proposed gambling venues, explaining that they would create jobs and boost local businesses by attracting visitors to the town.

The two companies introduced their casino projects only a week after a group of businessmen introduced another casino project in the city of Rudná u Prahy. The proposed casino would be situated to the southwest of Prague. But according to the local media agency Radiožurnál, the casino project allegedly has ties to the Russian mafia and a well-known US figure associated with the casino industry. That is why officials do not dare to discuss it publicly.

This Monday, two Chinese women in the southern Ba Ria-Vung Tau Province were sentenced to 6.5 years and 5.5 years in prison for organizing illegal gambling activities. A total of 18 other Vietnamese linked to the case also face imprisonment or suspended sentences for actively participating in the illegal gambling ring.

Prosecutors claim that Wu Ting Ting was the mastermind, and she organized everything for the gambling operations. The 34-year-old woman cooperated with her cousin, Wu Can Sen, 32, and other people living outside Vietnam to organize illegal online gambling.

Court Lays Charges Following an Illegal Gambling Ring Bust

Wu Ting Ting will spend 6.5 years in prison, while her cousin will serve 5.5 years in prison for running an illegal online casino. The two Chinese women were sentenced by the Ba Ria-Vung Tau People’s Court today. Another 18 Vietnamese caught participating in the illegal gambling ring received prison or suspended sentences.

According to prosecutors, Ting was the organizer of the illegal gambling ring. She found the location and equipment for the illegal gambling operations. Ting and Wang Rong Hui, who is still trying to escape the police, hired people to advertise their services. Prosecutors claim that the pair worked with other people living outside Vietnam. Servers were located outside the country, so finding the people at the heart of the illegal gambling ring was not easy.

The wrongdoers rented several houses in Vung Tau and purchased computers, phones, and SIM cards for their illegal gambling business. Ting hired Vietnamese people, who had to join online groups and advertise the illegal ring’s gambling services. Ting paid her employees VND7-million ($298-341) a month plus extra bonuses.

How Did the Illegal Gambling Ring Actually Work?

If someone wanted to play, Ting’s employees had to send them links and detailed instructions on creating an account. From April to July 2021, the illegal gambling ring welcomed 11,000 customers who made transactions totaling VND1.4 billion ($59,678). Ting used the money to pay her employees and for personal needs.

At the court, Ting rejected prosecutors’ claims that she was the mastermind of the illegal gambling ring. She explained that she worked for a group of Chinese people and added that Wang Rong Hui was the mastermind. But prosecutors dismissed the claims and sentenced Ting to 6.5 years in prison.

Illegal gambling rings are not uncommon in Vietnam. In November last year, the police raided 15 places and busted an illegal gambling ring, which netted more than VND30 trillion in three years. Police officers revealed that the ring was run by Vietnamese living in Cambodia. Only a week before that, the police busted an online football betting ring worth more than VND 1 trillion ($40.3 million) in northern Vietnam.

Casino workers in many U.S. states urge lawmakers to ban smoking on casino floors due to the health risks associated with secondhand smoke exposure. Currently, Kansas casinos are exempt from smoking bans, but that could change in the future as a group of casino workers calls on state lawmakers to pass a bill that would prohibit smoking in all areas of a gaming venue.

According to some industry experts, the smoking ban would drive away players and reduce tax revenues. But various studies and reports show that casinos, which voluntarily adopted a smoking ban, did not experience revenue declines and customer losses.

Casino Workers Demand Safer Working Environment

Casino Employees Against Smoking Effects (CEASE) represents the loudest voice against smoking on casino floors. The group pushes state lawmakers to prohibit indoor smoking in casinos. Members of the group focused on the negative health effects of inhaling secondhand smoke. CEASE founder Joe Hafley explained that casino workers are the backbone of the industry and taking care of their health is important.

In a news release, Hafley said that thousands of casino workers from different states joined the organization to urge lawmakers to ban indoor smoking in casinos and ensure a safe working environment. As a casino security officer, Hafley explained that he is not stuck on the casino floor but is still exposed to secondhand smoke and smells like cigarettes when he goes home after work.

Hafley added that CEASE Kansas has already convinced several policymakers to cosponsor a bill that would prohibit indoor casino smoking, which was approved by the Kansas House in April this year. Cynthia Hallett, Chief Executive Officer of Americans for Nonsmokers’ Rights, admired the passage of the legislation and said that the legislative effort would benefit casino workers and visitors if approved.

Banning Indoor Smoking Will not Hurt Kansas Casinos’ Revenues

CEASE members claim that Kansas is one of about a dozen states that still allow indoor smoking in casinos. Pete Naccarelli, a co-founder of CEASE, said that casino workers do not want to risk their health and endure secondhand smoke to support their families anymore.

Secondhand smoke contains dangerous chemicals that increase the risk of developing allergies, infections, and other respiratory problems. Naccarelli noted that gambling establishments must get rid of the perception that banning indoor smoking would harm their revenue and must start taking care of their staff.

CEASE cited a report by Las Vegas-based C3 Gaming, which revealed that casinos that implemented smoking prohibitions did not experience any drop in revenues. The report even claims that gambling venues, which have banned smoking completely, perform better than the casinos that still allow indoor smoking. CEASE also noted that casinos’ ventilation systems are ineffective against secondhand smoke.

This Thursday, Melco Resorts & Entertainment Limited announced that Europe’s first integrated casino resort in Cyprus is slated to open on July 10. The company explained that the casino resort will transform the island’s tourism and hospitality sectors. City of Dreams Mediterranean is to offer a high-end casino experience, fine dining, and unlimited entertainment. The casino resort will also host the biggest expo center in Cyprus.

City of Dreams Mediterranean Poised to Provide Every Casino Fan with a Second-to-None Experience

City of Dreams Mediterranean will be the first integrated resort in Europe. Its official opening is scheduled for July 10. Melco Resorts will hold a soft opening period for select guests on June 12. The resort’s general manager Grant Johnson said that the integrated casino resort will bring Melco’s high standards of hospitality and entertainment to Europe.

The landmark project, as described by the company itself, will have 500 guest rooms and the largest presidential suite in Cyprus. All rooms will have private balconies from which the visitors can enjoy breathtaking views of the Akrotiri Salt Lake, the Troodos Mountain range, and Lady’s Mile Beach. The company revealed that the rooms reflect the Mediterranean spirit and feature modern design.

The casino will occupy 7,500 square meters and offer a range of table games, ultramodern slot machines, a designated poker area, and live entertainment. The resort will host eight restaurants and bars, where people can enjoy delicious food and cocktails.

While building its Cyprus casino resort, Melco Resorts ran a temporary casino in Limassol and satellite casinos in Nicosia, Ayia Napa, and Paphos.

What Other Amenities City of Dreams Mediterranean Will Offer?

At the City of Dreams Mediterranean, visitors can enjoy the largest resort pool complex, an adventure park with a zip line, a trampoline zone, and a Waverider. The integrated casino resort will also offer entertainment for children of all ages. The indoor and outdoor event space span over 8,000 square meters.

The City of Dreams Mediterranean can host various events, including weddings, conferences, and concerts. The resort features a Grand Ballroom for over 1,000 guests, a multi-purpose center, luxurious meeting rooms, and even a Roman-style Amphitheater.

The resort will also have a spa and fitness zone inspired by Morpheus Spa in City of Dreams Macau, which was named “Spa of the Year” by the Forbes Travel Guide in 2020. The integrated resort will also feature a shopping area where visitors can buy designer clothes, shoes, and accessories. World-famous DJs and artists will take care of the good mood of the guests.