Compliance Updates
PGCB Approves License for Nittany Mall Casino
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.
Canada
BetConstruct Becomes the First iGaming Company to Offer Both B2B and B2C Licenses in Canada through Affiliate Entity
BetConstruct, a global pioneer in iGaming and sports betting solutions, has announced a significant milestone in the gaming industry. Through its affiliate entity, BetConstruct has become the first iGaming company authorized to facilitate the issuance of both Business-to-Business (B2B) and Business-to-Consumer (B2C) licenses. This remarkable achievement was made possible by obtaining a direct license authorization from the Tobique First Nation in Canada.
The Tobique First Nation, renowned for its innovative and forward-thinking regulatory approach, has entrusted BetConstruct’s affiliate entity with the authority to oversee applications and facilitate the issuance of licenses from its jurisdiction. This partnership underscores shared values of innovation, transparency, and a commitment to responsible gaming practices.
This historic development places BetConstruct at the forefront of the Canadian iGaming market, redefining the opportunities available to gaming operators. By leveraging its affiliate entity’s licensing capabilities, BetConstruct empowers businesses to navigate a streamlined and transparent regulatory environment, unlocking new opportunities for growth and innovation.
“At BetConstruct, we’ve always strived to push the boundaries of what’s possible in iGaming. This landmark achievement with the Tobique First Nation reflects our unwavering dedication to creating opportunities for our partners while upholding the highest standards of responsibility and integrity in gaming,” said Vigen Badalyan, Co-Founder of BetConstruct.
The issuance of dual licenses under the watchful eye of BetConstruct’s affiliate not only highlights BetConstruct’s commitment to supporting its partners but also reinforces the company’s role as a trusted leader in the global iGaming landscape.
This milestone signals a new era for regulated iGaming, as BetConstruct takes bold steps to establish a robust ecosystem for operators and consumers alike. With its direct license authorization from the Tobique First Nation, BetConstruct is setting a new standard for innovation, consumer protection, and sustainable growth in Canada and beyond.
Compliance Updates
Media Troopers Receives Two-Year Renewal of Colorado Sports Betting License
Media Troopers, a leading digital marketing agency specializing in sports betting and iGaming, has marked its two-year anniversary in promoting sports betting in Colorado as a vendor licensed by the state.
Shmulik Segal, CEO of Media Troopers said: “We are very proud of this renewal, as it marks a milestone of two successful years of growth and commitment to the State of Colorado.”
Colorado’s Division of Gaming has renewed Media Troopers’ vendor license, allowing the company to promote sports betting offers for its customers until January 2027.
“Receiving a new license and debuting in a state is always exciting, but it is where the hard work begins,” Segal added. “So I am proud to celebrate two successful years of hard work and dedication in promoting safe and reponsible gaming for our Colorado partners such as BetMGM, bet365, and BetFanatics.”
Compliance Updates
Digitain Group Products are Certified for Brazil
Digitain among the first game and software suppliers to successfully meet Brazil’s new regulatory standards.
Digitain, a leading provider of sportsbook and casino platform solutions, is proud to announce that it is among the first game and software suppliers to successfully meet Brazil’s new regulatory standards.
The Brazilian gaming market is undergoing a significant transformation. With new regulations in place, gaming operators and providers must adapt quickly to meet these evolving requirements. This achievement underscores Digitain’s commitment to delivering high-quality gaming products and ensuring full compliance with local laws and regulations, allowing our partners to continue their operations seamlessly.
Arshak Muradyan, Digitain Group’s Chief Compliance Officer, stated, “Brazil’s gaming industry has witnessed rapid growth over the past few years, with more attention given to regulating and managing this fast-evolving market. In 2024, Brazil introduced stricter rules for gaming providers, including new certification requirements, enhanced player protection measures, and tighter oversight of both games and operators. The certification process, conducted by an authorised testing laboratory of GLI (Gaming Laboratories International), ensures that our products meet the high standards of quality and fairness mandated by Brazilian regulators.”
Ani Mkrtchyan, Chief Sales Officer of Digitain Group, said, “As a company operating on the global stage, Digitain Group has consistently recognised the importance of regulatory compliance. This is why we’ve acted swiftly to meet the new requirements set out by Brazil’s regulatory authorities, positioning ourselves as one of the first companies to successfully navigate this evolving landscape.”
“Digitain Group’s success in securing certification for the Brazilian market is a significant milestone, and we’re proud to be among the first to meet these new regulatory standards. By adhering to the highest standards of compliance, we ensure the integrity of the industry and position ourselves and our partners for continued success in one of the world’s fastest-growing gaming markets.”
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