Legalizing new areas of gambling in the United States

Due to budget cuts due to the COVID-19 pandemic, the gambling sector, together with the US authorities, is looking for new ways to pay taxes and restore the Treasury. The issue of allowing sports betting and online casinos is on the agenda.

It is noted that all major American sports have not yet resumed competition. At the same time, NASCAR, European football, and Korean baseball came out of quarantine and continued events.

However, despite the above, fanduel Group CEO Matt king said that the States still face unprecedented financial problems, and also expressed hope that the legislation on sports betting and online gambling will meet common sense criteria that will be taken into account by the authorities.

Eilers & Krejcik Gaming managing Director Chris Krafcik said the pandemic will accelerate the expansion of the sports betting and online casino segment in the next two years. According to the expert, these directions will provide the States with new revenue in the form of upfront license fees, as well as in the form of taxes to the budget after some time.

It is important to note that some States do not allow online betting. In total, 18 us States allow gamblers to use the services of bookmakers, and only four States allow gambling in online casinos. Today, the governments of Massachusetts, Louisiana and Ohio support the legalization of sports betting. Recently, the authorities of California, where the budget deficit reaches $54 billion, spoke about the decision to consider legalizing betting in November. Currently, it is allowed to take bets in two tribal casinos in North Carolina, as well as in four casinos in New York.

Professional poker players from the United States will be required to declare their winnings

The US authorities said that professional poker players will be required to declare winnings that were received from gambling. The new rules will take effect in 2019.

The changes include not only a reduction in certain tax rates, but also an increase in the individual alternative minimum tax.

Also, all players who play poker on a professional level will report their winnings using a special application called Profit or Loss from a Business.

Some players will be provided with a special form that will allow them to receive certain benefits for winnings. For example, benefits will be granted if the net winnings are $ 600 or higher. But gambling establishments will have to keep 24% if the amount of net winnings exceeds five thousand dollars.

Recall that the largest prize pool in the history of online poker tournaments will be played on MILLIONS Online. The guarantee of the event, which will be held in the partypoker poker room from November 25 to December 5, 2018, will amount to $ 20 million. The prize pool will be higher if the tournament collects more than 4,000 entries.

Students in America hold “Coronavirus parties” and arrange gambling games with bets on who will get sick first

Students in Tuscaloosa, Alabama, hold “Coronavirus parties” with their friends and gamble on who gets sick first.

City Councilwoman Sonia Mckinstry testified Wednesday that a series of parties previously reported were part of a game that involved inviting coronavirus-infected students in an attempt to intentionally contract the deadly virus:

  • They put money in the “General store” and try to get infected. The one who will catch first gets the jackpot. It doesn’t make any sense, ” she said.

Members of the city Council did not directly mention the University of Alabama, but this institution is the largest in the city and the flagship of the state’s University system.

Tuscaloosa city fire chief Randy Smith informed the Council about these parties earlier this week, saying authorities initially thought this students ‘gamble on transmitting the virus “was some kind of rumor” “but added:” We did some additional research … not only did the doctors help confirm this, but the state also confirmed that they also had this information.”

Despite the news, Mckinstry insists that the city is taking the threat of coronavirus to public health seriously.

“We are trying to break up all these parties that we know about, ” she told ABC News.

In the state of Alabama, at least 37,536 cases of coronavirus infection and 926 deaths have been reported.

There is no doubt that in the world there is a problem with the rates among children and underage individuals, as well as match-fixing. These are the reasons why the US is so scrupulous about the process of legalizing betting. However, large companies know how to deal with this. So since the legalization of online betting in the UK in 2005, there have been less than 10 fixed matches.

In Europe, the proportion of events with a contractual nature is also low, with the exception of a few leagues. The question is what methods are used to combat this problem. In Britain, for example, there are numerous organizations to help dependent people, departments for responsible gaming.

With clear mechanisms for regulating online betting, most problems can be overcome. It is important to define advertising rules, a system of fines and liability for violations of any rules, strict penalties for match-fixing, and the creation of funds to fight for integrity in sports.

Earnings of 86 million, in-depth Analytics and young talents – European bookmaker captures the US

Kambi Group Plc. was founded on may 19, 2014 as a subsidiary of Unibet betting company. The headquarters are located in Malta, and branches are located in Philadelphia, Stockholm, London, Sydney and other cities. The company employs 525 people worldwide; revenue for the past year was $86 million, net profit – $11 million (revenue growth in 2014-70%, in 2015-32%, in 2016-17%). In 2018, Kambi took up online betting: they acquired a 25% stake in the Internet service Virtus Sports, allowing players to place bets in online games of football, horse racing, and auto and motorcycle racing. Kambi shares are traded on the Stockholm stock exchange.

The headquarters of the American branch of Kambi is located in Philadelphia. The company partners with SugarHouse, Parx, and Rivers Casino entertainment clubs in Pennsylvania, as well as online projects DraftKings and PlaySugarHouse.com in new Jersey, which offer players the opportunity to play on the sweepstakes. With the help of DraftKings, Kambi has also taken up betting outside of Nevada: it is favored by the repeal of the Federal law on restrictions on gambling, and more States are agreeing to open casinos or legalize gambling. Max Bixel is the head of sales at the American branch: He played Golf in College, and golfers know exactly what bookmakers do.

Kambi is invested in in-depth Analytics
However, the name Kambi does not appear on the front pages of Newspapers, and Bixel is not interested in making sure that as many people as possible know about Kambi — on the contrary, he wants everyone to have the names SugarHouse, Parx or Rivers Casino on their lips. The company is known only to insiders in the betting industry, and its clients are actually bookmakers, not ordinary gambling enthusiasts. Kambi differs from large “multi-jurisdictional” companies like Caesars (which gives gambling enthusiasts the opportunity to play in their own offices under the brands Harrah, Caesars and Bally) and from the world-famous office of William Hill (which cooperates with ordinary bookmakers to bring them to the market under the brand William Hill). Kambi in principle does not engage in retail business, being in the background of the sphere of betting.

Due to its growing influence in the us betting business, Bixel intends to establish a think tank in Philadelphia. A native of Cranbury, new Jersey, Bixel now lives in new York, but believes that there is not as much competition in Philadelphia as in new York, where professional sports leagues and technology companies in the field of sports can afford the same offices as Google, Amazon and Microsoft. Phil Richards, General Manager and fan of the crystal Palace football club, believes that there is no city in the world more obsessed with sports than Philadelphia. This is why Kambi requires ardent sports fans who are well versed in mathematics. Those who work in Finance can be used by the company in trading, risk management and partnership development.

How does Kambi work?
Kambi traders set a bet line before a match and calculate odds, and after the game determine who won how much
Bookmakers who purchase information from Kambi are responsible for paying out winnings and storing information about players, as well as setting betting restrictions
Kambi manages the software and hardware that calculates all the coefficients and risks — they are monitored by employees of offices in London and Philadelphia, receiving real-time statistics (fast data)
This process allows clients to place bets during certain matches.

Why is online betting during a match the future of betting?
It is believed that dynamically developing online sweepstakes are the future of bookmakers in the United States, and bets will be placed in the future not on the final result of the performance, but also on some intermediate stages of it. In the UK, about 80% of online bets in tennis matches are made in live mainly on what score the set will end with or how exactly the game will be won. In new Jersey, more than half of online sports betting is done in live, according to Bixel.

This is why Kambi needs fast-responding operators and risk managers, as well as information systems that can instantly process streaming information about new bets made during the match. It sounds simple, but if during a basketball game someone bets on two or three points that will be scored on the next throw, you need to determine the coefficient for this event in a few seconds and accept the bet. Thanks to such systems, the company actively attracts young people to the sweepstakes game, which is already in demand among marketing specialists of all stripes. Online betting is just what customers need, and the company no longer follows the traditional Las Vegas casino model in order to stay ahead of the game.

In the US, players on illegal sites may start to be put behind bars

In the us, California made a new attempt to legalize online poker. Local parliamentarians Adam gray and Reggie Jones-Sawyer submitted to their colleagues a draft law that regulates the functioning of the legal online poker market in the territory of the richest American state.

In many ways, the document is similar to the version of the bill developed by the same gray last year. However, some significant amendments have been made to the new version, CalvinAyre informs.

Thus, the clause providing for a 15% tax on the income of gambling companies, as well as a mandatory fee of $15 million for a potential operator to obtain a license, was excluded. Both of these figures were eliminated largely due to the objections of representatives of large gambling companies, who argued that in such conditions, operators would not be able to earn a cent.

However, the most important innovation in the bill is the new paragraph on criminal liability for the illegal organization of online poker rooms through registered abroad (in offshore zones) Internet sites that do not have the necessary California license.

The strict penalty of imprisonment will be applied not only to representatives of the operator companies, but also to ordinary players-Californians who will support such resources.

$4.2 billion will put US residents on the upcoming super bowl

The American gambling Association (AGA) has estimated that the 50th anniversary super bowl between the National football League’s Denver Broncos and Carolina Panthers will accumulate approximately $4.2 billion in bets in the United States.

The main game of the season in the NFL will be played on February 7 in Santa Clara, California. AGA experts believe that this year bookmakers will raise funds by 8% more than at the super bowl last year. At the same time, about 97% of the total volume of bets will be made on the illegal market for the country, including (which is illegal in the United States) online on the sites of foreign bookmakers, Newsweek reports.

For example, last year only 3% of all bets on the super bowl were made legally. This year, AGA representatives expect a similar proportion between the legal and” black ” markets.

The favorite before the super Bowl is “Carolina” with a coefficient of 1.41 to win. The probability of winning “Denver” is estimated at 3.0.

More and more citizens are emigrating from the US because of the ban on gambling

The flow of US citizens leaving the country due to the ban on online gambling has not dried up for the seventh year in a row. Professional gamblers began moving to neighboring countries-Canada, Mexico, Costa Rica, and even more distant routes-in 2011, when the United States authorities launched a decisive offensive against companies that violate the UIGEA (“anti – illegal gambling”) law, adopted in 2006, but until now ignored by almost all operators of gambling on the Internet.

This was especially painful for online poker players. “Black Friday” April 15, 2011 was marked for them by the fact that American intelligence agencies organized raids into offshore jurisdictions where the servers of the largest poker rooms worked, and forcibly disconnected them from the network for allowing US citizens to play at their homes.

Gambling sites were able to resume operation only after they blocked the accounts of all American players, forbidding them to register and play from the territory of the United States in the future.

In October 2012, the alleged owners and major agents of the leading online bookmaker Pinnacle Sports were arrested in several cities in the United States. Although this bookmaker’s website stopped accepting direct bets from US residents back in January 2007, they could continue to play there through agents. The crackdown forced Pinnacle to abandon all methods of working with American citizens, and even a simple visit to its website from the United States leads to the automatic blocking of your account.

As a result of such measures, the inhabitants of this country, who earned their living by playing, were forced to emigrate. Who knows, perhaps soon their example will have to be followed by Russian professional players, to whom the authorities of the Russian Federation are increasingly tightening the screws, trying their best to cut off such Russians from the sources of their earnings.

One way or another, someone else’s experience will be useful. Atlas Obscura portal tells about the communities of professional American poker players who have settled in Costa Rica.

The life of professional players here may seem like a fairy tale. During the day, they play poker online, and in the evenings and weekends they gather for parties: eat, drink, travel around the country, raft, ride down the mountains on steel ropes, ride Quad bikes. New players keep coming and coming. “There must be more than 50 American poker players living here in the vicinity of a couple of miles,” says Ryan Garrita, one of the first settlers who emigrated here from the US back in 2011.

Similar communities were formed everywhere. “Playing professional poker can provoke some degree of seclusion and loneliness,” says Kristin Wilson, who founded Poker Refugees, a company that helps players move. – “Players like to settle in the same area.”

As Wilson flipped through the Black Friday news, she kept wondering: what are all these thousands of professional poker players going to do? They are not going to give up poker, which is their main source of income, and is what they are best at doing. They’ll have to move.

Having lived in Costa Rica for six years, Kristin knows from experience that it takes time to get used to the customs and difficulties of life abroad, and decided that the players do not need to waste it. After all, it can help them move, and quickly. Other groups of professional players have settled in Mexico, Canada,and even on the island of Malta in the Mediterranean.

Although the move was a forced measure, many of them soon fell in love with their new place of residence. “I know I had to leave the country to continue living my dream,” says Chris Haniken, a very high – income player who moved to Costa Rica with a group of friends. “At first I was scared and nervous about what my new life would bring.”

But these fears were soon dispelled. Haniken and company initially planned to stay in Costa Rica for three months. Six years have passed and they are still living here, moreover, having convinced even more friends to join them. “I think we’ve become local celebrities,” Haniken grins. – “Parties and women we have in abundance.” He is married to a Costa Rican woman and they have two children.

Every year, starting with Black Friday, the Wilson company helps hundreds of people move, and this flow does not stop. Some players since 2011 have turned to it repeatedly, having lived in one place and imbued with the spirit of adventurism, asked to move them somewhere else in order to try out different countries.

Elena Stover had just started her poker career when Black Friday happened, and she didn’t have the money to emigrate yet. Only after 2014 did she save enough money to fully devote herself to the life of a professional player and move abroad. After living for a while in Mexico and Malta, Elena eventually settled in Berlin, where she can safely pursue her poker activities, and from where it is also easy to get out to live tournaments all over Europe. By the way, she has a degree in cognitive neuroscience and is also studying how different parts of the brain interact when people make decisions based on risk.

Legalizing new areas of gambling in the United States

Due to budget cuts due to the COVID-19 pandemic, the gambling sector, together with the US authorities, is looking for new ways to pay taxes and restore the Treasury. The issue of allowing sports betting and online casinos is on the agenda.

It is noted that all major American sports have not yet resumed competition. At the same time, NASCAR, European football, and Korean baseball came out of quarantine and continued events.

However, despite the above, fanduel Group CEO Matt king said that the States still face unprecedented financial problems, and also expressed hope that the legislation on sports betting and online gambling will meet common sense criteria that will be taken into account by the authorities.

Eilers & Krejcik Gaming managing Director Chris Krafcik said the pandemic will accelerate the expansion of the sports betting and online casino segment in the next two years. According to the expert, these directions will provide the States with new revenue in the form of upfront license fees, as well as in the form of taxes to the budget after some time.

It is important to note that some States do not allow online betting. In total, 18 us States allow gamblers to use the services of bookmakers, and only four States allow gambling in online casinos. Today, the governments of Massachusetts, Louisiana and Ohio support the legalization of sports betting. Recently, the authorities of California, where the budget deficit reaches $54 billion, spoke about the decision to consider legalizing betting in November. At present, it is allowed to take bets in two tribal casinos in North Carolina, as well as in four casinos in New York.

Due to budget cuts due to the COVID-19 pandemic, the gambling sector, together with the US authorities, is looking for new ways to pay taxes and restore the Treasury. The issue of allowing sports betting and online casinos is on the agenda.

Gambling development in the United States

Legend has it that gambling existed in America before Columbus discovered it. The main gaming center at that time was not Las Vegas, but New Orleans. In New Orleans at the beginning of the 18th century, there were all sorts of coffee shops and taverns where visitors played card games. It is said that in the 18th century, gambling in some States was so popular that well-behaved Americans asked the government to issue a law prohibiting gambling, since it is sinful and corrupting the soul. But the fight against the desire of Americans to take risks and play did not bring any results, despite all the prohibitions.

In 1823, the United States passed a law regulating the operation of gambling houses, then the authorities considered legal only those casinos that operate under a license that cost as much as $ 5,000. But, despite the huge price of the license (at that time, 5000 USD is a very large amount), casinos in the United States opened one after another. The most gambling city at that time was New Orleans, where players, mostly military personnel, played cards and dice around the clock. Not in all establishments gambling was fair and quiet, often players found out relationships that ended in fights and stabbings. It is for this reason that gambling was re-banned in New Orleans.

The second gambling city in the 18th century in the United States was Chicago. Gamblers came to Chicago to play poker for money, but often in this popular card game lost and won not only substantial sums of money, but also entire estates and mansions. Many American gamblers really lived by gambling, the game brought them money and was the main meaning of their lives.

At the end of the 18th century, an important event occurred in the United States that left a huge mark on the history of gambling – a young guy from San Francisco independently assembled the first slot machine. Now America can be proud of having given the world such a popular game as slot machines. Americans simply love slots and consider them their national game.

In Las Vegas, gambling became legal only in 1931. Many gambling houses in Las Vegas were owned by the mafia and controlled by gangsters. Currently, in many States in the USA officially prohibited gambling. You can only legally play in American casinos in Las Vegas, new Jersey, Reno, and Indian casinos. Because of the bans, many players are forced to play in online casinos, especially since they feature all the favorite gambling entertainment of Americans:
online slot machines, virtual poker, American roulette, video poker, and other card and table games.

American-style betting: how sports betting is legalized in the United States

What has changed since the ban was lifted?
Now that the Federal ban is lifted, each state must determine the legal status of sports betting on its own. According to available information, 14 States will legalize sports betting within the next two years. Another 18 are preparing to legalize betting activities in the next 3-4 years. The situation in the other States remains uncertain. As a rule, local legislation that prohibits their activities on a specific territory puts a stick in the wheels of bookmakers.

Native Americans also began to fight for their share of the new market. Not so long ago, one of the “tribal” casinos in new Mexico announced the beginning of betting activities. According to state law, gambling and sports betting are prohibited, but this measure does not apply to Indian reservations. This precedent may give the native American population a good reason to look for loopholes in regional legislation.

Where can I bet on sports?
In addition to Nevada, sports betting has long been available in Delaware, Oregon, and Montana. However, in the form of a lottery. Mississippi and West Virginia foresaw the cancellation of PASPA in advance, allowing betting activities on their territory before the Supreme court’s decision. The same applies to Pennsylvania, but a license worth $10 million and a tax of 36% (4 times more than in neighboring new Jersey) do not attract businesses.

Rhode island in June this year announced that the launch of a regulated sports betting market in the state will take place in October, but later the deadline was moved to November.

New Jersey won the most from the repeal of the Bradley Law. It was the local authorities who were the most ardent opponents of PASPA, eventually achieving its final abolition. Atlantic city is the second gaming center in the United States after Las Vegas, so the reasons for new Jersey’s dissatisfaction with the monopoly granted to Nevada are quite clear. Now the betting market is developing dynamically in the state, the lion’s share of which is accounted for by playing online. For example, the volume of bets made in September was $ 184 million, of which 104 million were made on bets made on the Internet.

Online betting, by the way, is not available anywhere except in new Jersey: even in Nevada, only land-based operators operate. The total volume of bets in turn has almost doubled compared to 96 million dollars in August. In July, this amount was $ 41 million. Growth is expected in October, especially if you take into account the start of the largest North American leagues.

Bookmakers in the US: pros and cons
The greatest concern about the legalization of betting activities throughout the United States is expressed by North American sports leagues. In particular, they are concerned that with the spread of sports betting, the number of match-fixing will also increase. Especially in College sports.

Also, the financial issue remains unresolved. Despite the fact that the legalization of sports betting can bring significant dividends to the leagues, it is not yet possible to agree with bookmakers about specific figures. Teams that want a share of the revenue of local bookmakers also have their own interests. The situation is made worse by the fact that legalization may not affect all States, and therefore some clubs risk being at a disadvantage. The same applies to teams from Canada, where the monopoly on sports betting is held by the state.

The main advantage of legalizing betting activities in the United States is a significant inflow of funds to the Treasury of a state and the creation of jobs. For example, last year, the total profit of the American gaming industry was almost 77 billion dollars. With the legalization of sports betting, this indicator is expected to grow faster.
In General, despite the obvious obstacles, the future of the sports betting industry in the United States looks very bright. Thus, according to the Zion Market Research, which, in particular, analyzes the prospects for the global online betting market, North America was recognized as the most promising market in the world.

Maine legalizes sports betting

A bill to legalize sports betting in Maine has received preliminary approval from local lawmakers. If the document is adopted, residents of the state will be able to make legal sports betting.

According to the text of the bill, sports betting will be legalized on the territory of local casinos and the racetrack “Scarborough downs”. In addition, gambling operators will have the right to offer online bets to residents of the state. A person who has reached the age of 21 can become a bookmaker’s client.

The activities of offline betting shops will be subject to a 10% tax, while operators of online platforms will be subject to a 16% tax rate.

Although the bill received initial approval from the Senate, lawmakers still haven’t reached a consensus on some issues.

So, some of them suggest introducing licenses for online bookmakers linked to real gambling establishments in Maine. Politicians believe that this will protect local businesses and create additional jobs. Other lawmakers object to this decision and favor a free market.

In the near future, sports betting may be legalized in the state of new Hampshire. The local Senate has already approved the relevant bill, which is awaiting the Governor’s signature.

The Senate of New Jersey will soften the regulation of sports betting

Georgia lawmakers are discussing the possibility of easing legislation to regulate sports betting. In particular, they want to remove restrictions that prohibit team owners from placing or accepting bets on any events related to their sport.

The decision to lift the ban is related to the Golden Nugget casino in Atlantic city, which is owned by Texas billionaire Tilman Fertitta. In addition to the casino, the entrepreneur also owns the NBA team “Houston rockets”.

According to current legislation, Golden Nugget cannot accept bets on basketball. Casino representatives complained that the current legislation deprives them of profits, as customers do not want to visit two different casinos to place bets.

New Jersey lawmakers have developed a package of amendments that will allow Golden Nugget to bet on NBA games. It allows club owners to place and accept bets on games other than those involving their own team.

“The sports betting industry in new Jersey is still young. If we remove the extra restrictions, it could surpass Nevada as the largest market in the country within a few years. I don’t see any point in missing out on a potential participant in this new industry. Similar rules have long been in effect in Nevada, ” said Raj Mukherjee, one of the authors of the package of amendments.

It was previously reported that new Jersey residents spent $3 billion on betting over 12 months. According to analysts, “garden state” can become the largest betting market in the United States.

The future of sports betting in the United States

Previously, one of the main arguments against legalizing sports betting was that players and officials would be tempted to rig games. But this began to look controversial after the boom in illegal gambling via online bookmakers. Many sports organizations and law enforcement agencies argue that the best way to combat match — fixing is to bring sports betting out of the shadows. Whatever the risks, the potential tax profit from legalization may be too attractive to miss. By legalizing betting in 2018, the US launched the largest experiment in the history of sports gambling.

Situation
Sports betting is legal from Australia to Western Europe. But they thrive even in places where gambling is banned. Information the Swiss company Sportradar AG monitors the markets for fraudulent activity. They estimate the annual volume of bets at 1.5 trillion euros (1.7 trillion dollars). And most of it passes through unregulated markets. In the United States, where a 1992 law banned betting everywhere except in Nevada, annual illegal sports betting is estimated at $ 50-150 billion. However, the situation changed after the us Supreme court overturned the 1992 law, freeing new Jersey from the ban on sports gambling, and other States followed suit. 13 States currently have legal sports betting and this number is growing.

The problem with legal bookmakers is how to attract players who are used to betting on foreign or illegal sites. Worldwide, about 80 percent of sports betting is done through the black market, according to a 2014 report by the International center for sports security. Betting syndicates in Asia, where sports gambling is mostly banned or restricted, have provoked some of the most high-profile cases of match-fixing. Europol, the European Union’s law enforcement Agency, found that one such syndicate rigged the results of 380 football matches between 2011 and 2013.

Prehistory
The Internet has made betting modern. Now players can bet at home or on the road using their smartphone. You can bet on almost any professional sport, and not only on winners and losers, but also on small details: the number of fouls or the winner of the third set in a tennis match. This allows players to earn on their Providence, but also expands the opportunities for bribery.

Match-fixing scandals have stirred up not only football, but also cricket, tennis, and even sumo. A century has passed since eight Chicago white SOx players were banned from baseball for life after the 1919 World series. To counter such threats, sports organizations such as the international Olympic Committee and the NBA have partnered with companies to collect data to track suspicious bets.

Arguments
The strongest argument in favor of legalization is that sports betting continues regardless of whether the law allows it, so why not regulate and tax it? This gives players greater confidence that they will not be cheated, and brings money to the state budget that is still going into the pockets of illegal bookmakers or even organized crime. Opponents say the benefits don’t justify the social costs of gambling, from gambling addictions to falling into debt. according to research, four out of ten Australians who bet on sports have a gambling problem. Sceptics argue that bookmakers should be subject to the same advertising restrictions as tobacco and alcohol to protect vulnerable young people.

Athletes and scientists also warn of a growing gambling culture around sports, in which the focus is on betting rather than the pleasure or frustration of the sporting events themselves. Fatalists are convinced that betting cholera can no longer be stopped, it turns all matches into match-fixing and poses the same threat to the purity of sports as doping.