Compliance Updates
PGCB Approves License for Nittany Mall Casino
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The Pennsylvania Gaming Control Board (PGCB) on Wednesday unanimously approved a license for the proposed mini-casino at the Nittany Mall, but a potential appeal and a parallel lawsuit by a competing company mean the facility is unlikely to move forward any time soon.
SC Gaming OpCo, owned by investor and former Penn State trustee Ira Lubert, was awarded the state’s fifth category 4 casino license about two and half years after Lubert won an auction to apply with a $10 million bid.
The $127 million casino project is planned for the 94,000-square-foot former Macy’s property at the College Township mall.
While the board approved the license, it cannot be issued until any appeals are resolved, and a competing casino company is likely to contest the decision.
Stadium Casino, which was the losing bidder at the 2020 auction, has argued that Lubert subsequently partnered with other entities and individuals who may have ownership interests and who were not eligible to bid because they had no pre-existing interests in Pennsylvania casinos. State law for Category 4 casinos requires bidders to have ownership in existing casinos in Pennsylvania, and Lubert was eligible because of his ownership interest in Rivers Casino Pittsburgh.
SC Gaming has partnered with Bally’s, which does not have any Pennsylvania casinos, to develop the project. The board on Wednesday also approved a casino management license for Bally’s.
Baltimore-based Stadium, which operates the Live! casinos in Philadelphia and Pittsburgh, contended that the PGCB did not even have the statutory authority to consider the license application because of the ownership questions.
Stadium was granted 15 minutes to speak at Wednesday’s hearing but was denied discovery and not permitted to question witnesses. Attorney Mark Aronchick called the limitations “an abuse of discretion” by the board and said that because Stadium was the only party involved questioning the authority to consider the application, an adversarial hearing should have been conducted.
“You have tied our hands. You are not permitting us to do it in the proper way and that is not right,” Aronchick said.
PGCB’s chief enforcement counsel, Cyrus Pitre, said the board’s statutory authority is clear.
“The authority is in the [Pennsylvania gaming] act. The act is replete with the authority of this board, so as far as I’m concerned that argument goes out the window. Everything submitted by Mr. Lubert as an applicant is similar to just about every other application that we’ve received for a category 1, 2, 3, 4 license. His application is no different from Stadium’s application or any other applicant that came before us in general. There is nothing unsuitable about the application. There is nothing unsuitable about the integrity of the source of the funds, the source of the bid. All of that has been investigated and is of a suitable nature,” Cyrus Pitre said.
Lubert’s attorneys stated that he is the sole owner of SC Gaming OpCo, that any transfer of ownership would require PGCB approval and that state law does not prohibit having other financial backers.
Office of Enforcement Counsel attorney Ashley Gabrielle said PGCB’s Bureau of Investigations and Enforcement and its Financial Investigations Unit conducted “exhaustive and detailed” background investigations and found no issues.
“…OEC is of the opinion that SC Gaming OpCo is eligible and suitable for the issuance of a category 4 slot machine license at this time. As such, OEC is of the opinion that the board has the authority and duty to consider this application as it does any other application that is ripe for consideration,” Gabrielle said.
An appeal of the board’s decision would go to the Pennsylvania Supreme Court. Stadium also has a lawsuit against Lubert and the PGCB pending in Commonwealth Court, with no clear timeline.
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.
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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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.
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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