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Compliance Updates

California Could Open Door To $30 Billion In Annual Bets If Sports Betting Is Approved

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Details of bills that could send sports betting to voters call for balanced tax structure that will spur growth, according to PlayCA.com analysts

LAS VEGAS — If California voters approve online and retail sports betting in November it will open the door to a market that has the potential to generate more than $30 billion in wagers annually, according to projections from PlayCA.com, which analyzes legalized gambling in California. Those wagers would generate some $2 billion in operator revenue and $300 million in state taxes each year.

“California is the holy grail of sports betting markets, and not just because of its sheer size,” said Dustin Gouker, chief analyst for PlayCA.com. “It appears that legislators are working to put in place a structure that will make California uniquely attractive to every major operator. And because it has the potential to be the largest legal sports betting market in the U.S., ultimately it represents a seismic shift in the industry.”

The California assembly took a significant step toward the legalization of online and retail sports betting in the Golden State on Thursday by adding implementation details to ACA 16 and SCA 6. The new language in the bills, which were originally introduced in June 2019 by Sen. Bill Dodd (D-Napa) and Assemblyman Adam Gray (D-Merced), would amend the state constitution to:

  • Authorize retail and online sports betting at the state’s tribal casinos and racetracks if approved by voters, but not at the state’s cardrooms.
  • Set a tax rate of 10% on gross revenue for in-person wagering and a 15% tax for mobile or online wagering.
  • Impose taxes on the platform operators rather than directly by the tribes, to avoid sovereignty issues.

The tax rates are reasonable within the context of legal U.S. sports betting jurisdictions. By comparison, New Jersey, the nation’s largest online sports betting market, levies a 13% tax on online sports betting revenue and 9.75% tax on revenue from retail sportsbooks. Pennsylvania levies a 36% rate, by far the highest in the nation.

With the proposed tax rate, California could generate $240 million in operator revenue and $36 million in state taxes annually from online sports betting and another $60 million in operator revenue and $6 million in taxes a year from in-person betting, according to PlayCA.com estimates.

“The tax rates are fair for both operators and the state, and would be competitive with many of the states that have already legalized sports betting,” Gouker said. “The rate certainly won’t scare off sportsbook operators, who are all eager to enter California. This balanced approach should help the market ramp-up quickly once the industry launches, which is ideal considering California’s budget crunch.”

The state assembly and senate still must approve the bill, and then it must be signed by Gov. Gavin Newsom, before it can make its way to ballots this fall. But with a $50 million shortfall in California’s budget, and deep cuts expected, there is pressure on lawmakers to find new sources of revenue.

“The structure of these bills seems sound, and it should help the state eventually realize its revenue goals to the benefit of all of California,” Gouker said. “As for the gaming industry, if sports betting is approved by voters, it stands to change the face of sports betting across the country,”

Compliance Updates

Greyhound Advocates Applaud Oregon Governor Tina Kotek for Signing Historic Internet Betting Ban on Greyhound Races

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The largest greyhound protection group in the world thanked Oregon Governor Tina Kotek for signing a bill to outlaw the processing of internet bets on dog races, calling the new law a landmark victory for greyhound advocates.

“This is the biggest victory for American greyhound advocates since Florida outlawed dog racing in 2018. The walls are closing in on the final remnants of this cruel industry,” said GREY2K USA Executive Director Carey Theil.

Internet wagers on dog races can only be legally processed in two states, Oregon and North Dakota. More than $155 million was gambled on dog racing in 2024 through these Advance Deposit Wagering platforms, with Oregon processing 57% of all internet greyhound bets nationwide. House Bill 3020 phases out the processing of greyhound bets by July 1, 2027. It also ends remote gambling on dog races in Oregon, known as simulcasting.

Greyhound racing is a dying industry, and only continues to exist at two tracks in West Virginia. Florida voters outlawed the activity in 2018 by a vote of 69% to 31%, closing twelve operational racetracks. A bill to prohibit gambling on dog racing nationwide was introduced in the 118th Congress. The bipartisan Greyhound Protection Act earned the support of 80 cosponsors and more than 250 humane groups, anti-gambling organizations, and local animal shelters.

Since 2022, greyhound simulcasting has been outlawed in the seven states of Arizona, Arkansas, Colorado, Kansas, Massachusetts, New Hampshire, and Oregon. When all of these laws take effect, gambling on greyhound racing will only be legal in fourteen states.

All mainstream animal protection groups oppose dog racing due to animal welfare concerns. At the final two tracks in West Virginia, state records indicate that 487 greyhounds were injured in 2024 including 162 dogs that suffered broken bones and thirteen greyhounds that died. Thousands of dogs also endure lives of confinement at West Virginia tracks, kept in cages barely large enough for them to stand up or turn around for long hours each day.

Formed in February of 2001, GREY2K USA is the largest greyhound protection organization in the US with more than 300,000 supporters. As a non-profit 501(c)4 organization, the group works to pass stronger greyhound protection laws and end the cruelty of dog racing on both national and international levels. GREY2K USA also promotes the rescue and adoption of greyhounds across the globe.

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AGCO issues penalties of $151,000 against Great Canadian Entertainment for alleged age verification failures

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AGCO issues penalties of $151,000 against Great Canadian Entertainment for alleged age verification failures

 

The Alcohol and Gaming Commission of Ontario (AGCO) has issued $151,000 in penalties to Great Canadian Entertainment for allegedly failing to prevent minors from accessing gambling on multiple occasions at three Toronto-area casinos.

As part of its investigation, the AGCO reviewed four separate incidents in which minors allegedly gained access to the casino floors and in which some of these minors participated in gambling activities – two cases at Great Canadian Casino Resort Toronto, and one at each of Casino Ajax and Pickering Casino Resort.

The AGCO is committed to ensuring casinos meet Ontario’s high standards of harm reduction and responsible gambling. The AGCO’s Standards require operators to ensure only eligible individuals are permitted into a gambling site and strictly prohibit access to anyone under 19 years of age (except in the course of employment). The Standards also mandate that casino employees have the necessary competence, skills, experience and training to effectively carry out their duties, including age verification.

This enforcement action underscores the AGCO’s dedication to protecting youth and other vulnerable individuals.

A casino operator served with an Order of Monetary Penalty by the AGCO Registrar has the right to appeal the Registrar’s decision to the Licence Appeal Tribunal (LAT), an adjudicative tribunal that is part of Tribunals Ontario and independent of the AGCO.

“Ontario casino operators have an obligation to ensure minors are not able to access casino floors or activities such as slot machines or table games. The AGCO will continue to monitor and hold all casino operators accountable for fulfilling this important role.”  – Dr. Karin Schnarr, Chief Executive Officer and Registrar, AGCO.

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Compliance Updates

MGCB Issues Cease-and-Desist Order to BetUS

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The Michigan Gaming Control Board (MGCB) has issued a cease-and-desist order to BetUS, an offshore gambling operator, for illegally offering internet gaming and sports betting to Michigan residents without proper licensure.

Investigations by the MGCB revealed that BetUS was accepting wagers from Michigan residents on various gambling activities, including sports and casino-style games, without the necessary state authorization. This operation violates Michigan’s Lawful Internet Gaming Act, the Gaming Control and Revenue Act, and the Michigan Penal Code.

“Unlicensed operators like BetUS undermine the integrity of Michigan’s regulated gaming market and expose consumers to potential risks. The MGCB is committed to protecting Michigan residents by ensuring that all gambling activities are conducted legally and responsibly,” said Henry Williams, Executive Director of MGCB.

The cease-and-desist order mandates that BetUS immediately halt all operations involving Michigan residents. The company has 14 days to comply or face further legal action in coordination with the Michigan Department of Attorney General.

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