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Compliance Updates

NeoPollard Interactive and New Hampshire Lottery Prevail Against U.S. Government Appeal in iLottery Case

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NeoPollard Interactive Congratulates The New Hampshire Lottery On A Succesful FY 2022 In iLottery Sales

 

NeoPollard Interactive LLC, jointly owned by Pollard Banknote Limited and NeoGames S.A., is thrilled with the decision rendered by the First Circuit of the U.S. Court of Appeals on January 20, 2021 that unequivocally reconfirmed that the federal Wire Act is limited to sports betting and, therefore, does not pertain to state-run lotteries. This decision confirms the ruling of the U.S. District Court for the District of New Hampshire in 2019 that was appealed by the U.S. Federal Department of Justice. Overall, this decision is important for the U.S. lottery industry as a whole by alleviating concerns related to the legality of traditional retail or online lottery sales (also known as “iLottery”) which rely on the transmission of lottery data over the Internet.

The Wire Act subjects to criminal liability any person who “knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers.” In 2011, the Department of Justice’s Office of Legal Counsel (“OLC”) concluded that the Wire Act only applied to sports betting. Following that opinion, many lotteries began to offer non-sports gaming products over the Internet, reasonably relying on the OLC’s conclusions that their activities were lawful.

In January 2019, the OLC reversed that prior decision and released a new opinion concluding that the Wire Act extended beyond the sports-betting context to criminalize interstate transmissions of all bets or wagers—thereby overturning the conclusions of the 2011 opinion and threatening to shut down the burgeoning iLottery industry.

Working alongside the New Hampshire Lottery Commission (“New Hampshire Lottery”), NeoPollard Interactive and Pollard Banknote, the New Hampshire Lottery’s iLottery providers, immediately sought a declaratory judgment in federal court that the OLC’s new Wire Act interpretation was based on an incorrect reading of the statute. In June 2019, the U.S. District Court for the District of New Hampshire confirmed that the federal Wire Act applies only to sports-betting activities. The OLC appealed that decision.

In this latest judgement, the First Circuit affirmed the District Court’s June 2019 decision thus restoring the 2011 interpretation that limited the Wire Act to sports betting. By upholding the 2011 interpretation that the Wire Act applies only to bets or wagers on a sporting event or contest, this ruling safeguards the New Hampshire Lottery, NeoPollard Interactive and Pollard Banknote, specifically, and all other iLottery operators, generally, from the threat of unlawful prosecution.

In addition, and equally importantly for other state lotteries, any concerns about the pooling of bets or the transmission of wagers in connection with national and regional multi-state games such as PowerballÂź and Mega Millions, whether through traditional retail or online channels, have been completely eliminated.

“We are very happy with the recent judgement confirming, yet again, the 2011 interpretation of the Wire Act,” said Liz Siver, General Manager, NeoPollard Interactive. “This is a great success for the Lottery industry generally, and iLottery specifically, as it ensures that the sale of both iLottery games and national and regional multi-state games can continue to be strong contributors to lottery sales and the good causes that U.S. lotteries support. In terms of iLottery, we know first-hand the positive effect that these operations have had, not only on state resources, but on player experience as well. The current worldwide pandemic has amplified the importance of this new channel. We look forward to continuing to provide state-of-the-art iLottery products and strategies to lotteries with an increasing array of products within the digital landscape.”

SOURCE NeoPollard Interactive

Compliance Updates

Washington’s Lottery Achieves Nation’s Highest Level of Responsible Gambling Certification

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Washington’s Lottery announced that it has achieved the highest level of responsible gambling certification in the country. As acknowledged by the National Council on Problem Gambling (NCPG) and the North American Association of State and Provincial Lotteries (NASPL), Washington’s Lottery officially was certified for “Responsible Gambling Verification Best Practices at the Sustaining Level” in December 2024, the culmination of a process that began with certification at the Planning Level in 2019 and Implementation Level in 2021.

Washington’s Lottery is only the third state lottery in addition to Virginia and Ohio to achieve this milestone. NCPG and NASPL also recognize nine other state lotteries that have achieved a similar certification through the World Lottery Association.

“I can’t begin to express how proud I am of the work our team has done to achieve this important standard. We have a unique obligation as a state agency that sells a gambling product and need to balance the goal of raising money for important state initiatives like education with the need to acknowledge and assist the small percentage of players who may experience gambling-related distress. We take that work very seriously and weave it into all aspects of our jobs,” Kristi Weeks, Director of Legal Services for Washington’s Lottery, said.

To receive the Sustaining Level certification, Washington’s Lottery was evaluated by a team of four independent experts, who reviewed the lottery’s efforts in eight key categories related to responsible gambling: planning, employee training, retailer training, public education and awareness, product oversight, research, advertising, and resources.

“The key to our success has been the integration of responsible gambling initiatives into each and every employee’s position rather than centralizing it into only one or a few positions,” Weeks added.

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Compliance Updates

IBIA establishes innovative Payment Provider Forum to protect the integrity of the sports betting market in Brazil from financial fraud

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IBIA establishes innovative Payment Provider Forum to protect the integrity of the sports betting market in Brazil from financial fraud

 

Six payment providers have signed a Declaration of Commitment and Participation

In a pioneering move to bolster the integrity of Brazil’s newly regulated and rapidly expanding sports betting market, the International Betting Integrity Association (IBIA) today launched a dedicated Payment Provider Forum with the explicit goal of protecting the market from financial fraud related to competition manipulation. The project has launched with six prominent payment providers already signed up to a Declaration of Commitment and Participation: Bazk, Z.ro Bank, OneKey Payments, OKTO, VPag and Pay4Fun.

With IBIA’s members forecast to generate over 70% of remote gross gambling revenue in Brazil, IBIA will play a key role in protecting the integrity of the sports betting market. Payment providers and other related financial services can also play a crucial role in ensuring the integrity of sports betting. The IBIA Payment Provider Forum has therefore been established to foster collaborative activities that contribute to a robust, secure and responsible gambling market in Brazil.

Regulatory and other institutions linked to financial payments and competition manipulation will be invited to join Forum meetings and engage in the development and implementation of preventative actions against financial fraud.

The Forum will also benefit from IBIA’s extensive knowledge of sports betting integrity issues and trends, obtained from its global integrity monitoring and data intelligence network. That includes many of the world’s largest regulated betting operators, active across six continents, and partnerships with leading sports bodies and gambling regulatory authorities. It will also leverage IBIA’s expertise in establishing industry standards, such as its Data Standards Kitemark.

Khalid Ali, CEO at IBIA, said: “Cooperation between financial services, regulatory authorities and betting operators is essential to address the challenges from financial fraud and to maximise the potential of the sector in Brazil. IBIA is therefore delighted that these major payment institutions have agreed to explore collaborative activities to protect the market. Working together, we can create a sustainable and thriving sports betting market in Brazil that benefits all stakeholders. Cross-sector partnership working is a central pillar of IBIA’s global activity, and the association will be assessing the potential benefits of replicating this group in a wider international setting.”

To that end, the Declaration’s signatories have committed to:

  • Collaborate in the development of standards and best practices for payment processing.
  • Engage with regulatory bodies to defend a robust, fair and effective regulatory framework.
  • Promote responsible gambling and consumer, market and sporting event protection.
  • Share knowledge and expertise to innovate and improve the payments ecosystem.
  • Maintain the highest standards of ethical conduct and compliance with regulations.

The first meeting of the Forum will take place during SBC Rio.

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Compliance Updates

Aristocrat Interactive Secures Approval for OASIS Rollout in Washington

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Aristocrat Interactive, the rebranded online Real Money Gaming (RMG) division of Aristocrat, has received certification from the Washington State Gambling Commission to roll out its OASIS system to Class III operators across the State. OASIS is a comprehensive casino management system designed to offer a superior experience for land and sea-based operators.

Through this new jurisdiction approval, OASIS is now available to all 29 federally recognized tribal casinos in the state with a Class III Gaming Compact. This approval builds on OASIS’ existing authorization for Class II gaming in Washington, as BJ’s Bingo & Gaming in Fife, WA has used Aristocrat Interactive’s OASIS system for many years.

“We are thrilled that our OASIS system has been licensed by the Washington State Gambling Commission, and we look forward to working with more Casinos as we expand our footprint across the state. We strive to provide our casino partners with innovative solutions, helping them stand apart from their competition,” Kristen Jones, VP Sales of Aristocrat Interactive Gaming Systems, said.

With 360 partners across North America, Aristocrat Interactive Gaming Systems’ product suite has proven to be a key addition to casinos looking to enhance their operational capabilities. Quinault Beach Resort will be the first operator to incorporate the OASIS system through this new approval.

“We look forward to being the first-Class III casino in Washington to utilize the OASIS system across our casino floor. It is a cutting-edge solution that we are confident will lead to increased efficiencies across our operations,” Mark Palmer, GM at Quinault Beach Resort, said.

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