Compliance Updates

At $300 Million, This is Expected to be California’s Most Expensive Ballot Fight Ever. And it Just Got More Intense

Published

3 years ago

July 1, 2022

In a sign of the bruising, expensive fight to come, two Native American tribes are coming out in support of a newly qualified ballot measure to allow online sports gambling — instead of a separate gaming measure backed by dozens of other tribes.

On Wednesday, two tribes — the Middletown Rancheria of Pomo Indians and the Big Valley Rancheria Band of Pomo Indians — will announce their support for the online gaming measure that proponents call the Californians for Solutions to Homelessness and Mental Health Support Act.

Backed by commercial operators including FanDuel, DraftKings, and BetMGM, the measure would legalize online sports betting in California, with 85% of the revenue going toward housing for the homeless and mental health services. The rest would go to the Indian tribes that will be partnering with major gaming operators in running the operation.

On Tuesday, Secretary of State Shirley Weber announced that the measure had gathered enough valid petition signatures to be eligible for the ballot in November. A report from the state’s nonpartisan Legislative Analyst’s Office said new tax revenue from the proposal “could reach the mid-hundreds of millions of dollars annually.”

“We’re supporting the Solutions Act because it gives us an opportunity to protect our sovereignty and also create opportunities for economic wealth for the next seven generations for our tribe,” Jose “Moke” Simon, chair of the Middletown Rancheria of Pomo Indians, said.

“It also helps the state of California deal with some of the biggest problems that it has here, that is affecting every community, which is homelessness and mental health issues,” said Simon, who stars in a new online ad for the proposal.

It is a sign that what’s expected to be California’s most expensive ballot measure battle ever is heating up. Analysts have predicted that more than $300 million could be spent between the warring parties. That’s far more than the $224 million spent by both sides over 2020’s Proposition 22, which asked voters to decide whether app-based transportation and delivery drivers should be classified as independent contractors.

Both sides believe that the jackpot that awaits is worth it: California’s estimated sports gaming market is estimated to be around $3 billion. At least.

A proposal supporters call the Tribal Sports Wagering Act, which is backed by dozens of Native American tribes, already qualified to go before voters in November. It would allow only in-person sports betting to occur only at tribal casinos and qualified horse racetracks. Proponents say they have secured the endorsement of roughly one-third of California’s 109 Native tribes.

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Kathy Fairbanks, a spokesperson for the Tribal Act, said that measure represents a more responsible approach.

“It’s allows sports betting to patrons over 21 and older. You have to be there in person, show your ID, people can look you in the eye and make sure that you match the ID in front of you,” Fairbanks said.

The decision for voters, said industry analyst Brandt Iden, is “retail-only sports betting versus mobile.”

“That’s what this is going to come down to do for consumers,” said Iden, a former Republican Michigan state representative who is now head of government affairs at Sportradar, a sports technology company that provides data and content to the betting industry. “Do I need to walk into a sports book to place a wager, or can I do it from a mobile device anywhere in the state?”

Proponents of the online-only measure touted Wednesday’s endorsement from two smaller tribes as a sign that all of California’s Native tribes aren’t fully on board with the in-person-only measure.

Simon, from the Middletown Rancheria of Pomo Indians, which operates the Twin Pine Casino and Hotel in Middletown (Lake County), said the online proposal helps smaller tribes that are far from major population centers. If sports betting were confined to only in-person betting at tribal casinos and racetracks, casinos like the one his tribe operates wouldn’t see much uptick in foot traffic.

“We are looking to obviously move into e-commerce, and this gives us an opportunity to do that,” said Simon, who is also a Lake County supervisor.

But Fairbanks, who represents the in-person proposal, discounted the impact of a few tribes supporting the online proposal, noting that more than 60 tribes oppose it.

“The vast, vast majority are opposed to the (online) measure, and we will make sure that voters are aware of that,” Fairbanks said.

Iden, of Sportradar, said it “isn’t surprising” that some smaller tribes are partnering with the commercial operators. He has seen that happen in other states, including Michigan, where he served. The California online gaming proposal requires a commercial operator to be paired with a Native tribe to be able to enter the market.

Iden said that sort of partnership model has been used in other states “where commercial operators enter the market through a tribal brick-and-mortar operation. Traditionally, smaller tribes really benefit from that because of the money that’s involved.”

The larger question will be whether Californians — particularly the younger generation of digital natives who grew up doing many of life’s activities online — will support a measure that would force them to travel to a casino or racetrack to legally bet on a sporting event.

“That is a huge challenge because everything is really online these days,” said Geoff Zochodne, who covers the gaming industry for Covers, an online site. “That’s where the customer is increasingly located for all businesses.”

Fairbanks didn’t dismiss the tribes pursuing online gaming in the future but said that the current online measure isn’t the way to go “at this point in time.”

“Maybe technology will change. But right now, there’s no 100% foolproof way to ensure that kids under 21 aren’t gambling,” she said.

Iden said the real challenge will be for voters, who will see a blizzard of competing ads. Some ads opposing the online-only proposal have been running for weeks online and on TV — even before the measure officially qualified for the ballot.

“The real question becomes how much confusion is created by these two initiatives,” Iden said. “If you’ve got lengthy ballot proposals that you have to sit there and read, you sort of question whether or not people just get confused and they vote no on both.”

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Attention: Important Information from the Arizona Department of Gaming Regarding Reporting Gambling Winnings on Taxes

Published

1 day ago

March 5, 2025

Adrienn Sarkany

The Arizona Department of Gaming (“ADG”) has received inquiries from patrons seeking to verify the legitimacy of companies that are issuing tax forms for gambling winnings. As a result, the ADG wants to take this opportunity to remind Arizonans to be cautious this tax season and to thoroughly review and investigate any requests from anyone purporting to be the Internal Revenue Service (“IRS”).

The ADG would like to remind Arizonans that if they participate in casino gambling, parimutuel/simulcast wagering, event wagering, and/or fantasy sports, they may receive a W-2G or 1099-MISC form for their winnings. It is important to be aware that the gambling institution that you choose to participate in gaming activities with will be the payor, and the payor is responsible for issuing the tax form. The ADG
advises that Arizonans keep accurate records of any winnings from all gambling activities throughout the year to avoid any confusion during tax season. It is further recommended that Arizonans consult a tax professional if they have any questions about income reporting requirements to ensure they file an accurate tax return.

To help ensure Arizonans are aware of common tax scams, the ADG advises Arizonans to review the
following links and articles on the IRS website discussing common tax scams for 2025:

As stated on the IRS website, the IRS will make initial contact with a taxpayer through a letter
sent via the United States Postal Service. Be wary of anyone purporting to be the IRS or ADG
contacting you by phone, email, or social media requesting personal or financial information.
If you receive a letter from someone purporting to be the IRS, you can verify that the letter is
legitimate through the IRS website.
Dirty Dozen tax scams for 2025: IRS warns taxpayers to watch out for dangerous threats.
Misleading social media advice leads to false claims for Fuel Tax Credit, Sick and Family Leave
Credit, household employment taxes; FAQs help address common questions, next steps for those
receiving IRS letters.

What to Do If You Encounter Fraud or Identity Theft:

If you believe you or someone you know has been targeted by fraudulent payors or individuals
purporting to be the IRS, file a consumer complaint by visiting azag.gov/consumer. You can also find the
contact information for the Arizona Attorney General’s Office below:

Phoenix: (602) 542-5763
Tucson: (520) 628-6648
Statewide: (800) 352-8431

For more information, check out the Department’s related news releases from this past year:

ADG PSA: Tips for Safe and Responsible Online Gaming
Please Remain Vigilant: Department PSA on Gaming Scam Calls

Compliance Updates

GoldenRace secures Brazil’s potential with new certification

Published

1 day ago

March 5, 2025

George Miller

GoldenRace secures Brazil’s potential with new certification

After years of anticipation, all eyes are on Brazil, and GoldenRace, leading provider of award-winning Virtual Sports and betting solutions, is proud to lead this new era with an official certification to operate in this long-awaited, newly regulated market.

Since legislation was first approved in 2018, operators have been waiting for clear rules to unlock Brazil’s potential. Finally, on 1 January 2025, online betting regulation became a reality, opening one of the world’s most dynamic and lucrative markets.

GoldenRace’s certification ensures compliance with Brazil’s rigorous regulations, covering our RNG, RGS (Remote Gaming Server) and 20 top-performing online games available in schedule and instant modes.

For operators, a winning strategy lies in aligning with Brazil’s cultural heartbeat: football. In a nation where this sport is nothing short of a religion, those who tap into this passion will capture players’ attention and loyalty.

GoldenRace brings to the market the industry’s most played Virtual Football, generating the highest ticket volumes worldwide. Now enhanced with their next-generation Virtual Football, which offers advanced features, hyper-realistic graphics and a responsive design.

Brazilian players will enjoy iconic LatAm favourites like La Libertadores and the universally loved Football Single. With so many young Brazilian talent feeding the future of European football, their certified Football League, Euro Champions, Euro League and World Cup titles are perfectly tailored to captivate this football-obsessed market.

Their offering extends far beyond football. Among the 20 certified games is Greyhound Racing, a proven hit across Latin America that consistently drives engagement and revenue.

Other highlights include thrilling combats with MMA, high-speed action in Horse Racing and Motorbike Racing and immersive number games like Keno, Keno Deluxe, Spin2Win and Penalt2Win.

And we can’t forget their Crash Games: Fire Crash, Boom Ball Juggle, Meteoroid, Bank Run and Jet Escape are primed to make waves in Brazil, offering players fast-paced excitement and operators steady revenue growth.

Compliance Updates

Hard Rock Digital joins global sports betting integrity body IBIA

Published

1 day ago

March 5, 2025

George Miller

Hard Rock Digital joins global sports betting integrity body IBIA

Hard Rock Digital has joined the International Betting Integrity Association (IBIA), expanding the association’s integrity monitoring coverage across the United States. Through the partnership, integrity data from Hard Rock Digital’s online sports betting platform, Hard Rock Bet, will now feed into IBIA’s leading global betting integrity network, which includes over 70 companies and 140 sports betting brands monitoring over $300bn per annum in betting handle (turnover).

Matt Primeaux, President and Executive Managing Director of Hard Rock Digital said: “Hard Rock Digital is committed to protecting the integrity of sports and ensuring a responsible gambling environment for our players. We’re proud to join the International Betting Integrity Association and support its mission by helping to detect suspicious activity and ensure fair play on a global scale.”

Khalid Ali, CEO of IBIA, said: “IBIA is delighted to welcome Hard Rock Digital to our association of leading global sports betting operators. Hard Rock is a major U.S. company and is another great addition to our rapidly expanding membership base, further strengthening our integrity monitoring coverage across the North American region and globally. We look forward to working closely with Hard Rock Digital on integrity and protecting the company’s business from corrupt betting activity.”

IBIA is a not-for-profit body that has no competing conflicts with the delivery of commercial services to other sectors and is run by operators, for operators, to protect regulated sports betting markets from match-fixing. The association is licensed or approved to provide integrity monitoring services in 32 U.S. states and holds multiple Tribal Gaming licenses.

IBIA’s global monitoring and alert network is a highly effective anti-corruption tool, detecting and reporting suspicious activity in regulated betting markets. Through the IBIA monitoring network it is possible to track transactional activities linked to individual customer accounts. Additional functionality was added in 2024, with that technological upgrade enhancing the association’s ability to detect and report suspicious activity on its members’ betting markets.

IBIA’s recently released 2024 integrity report detailed 219 suspicious betting alerts reported during to the relevant authorities during the year. IBIA alerts contributed to the investigations and subsequent successful sanctioning of 17 clubs, players and officials in 2024.