Compliance Updates
PACE-O-MATIC Releases Statement Regarding Important Announcement on Virginia Market
Pace-O-Matic of Virginia (POM of VA) released the following statement regarding the status of illegal games in the Virginia market and the legality of Pre-Reveal/NextPlay software currently invading the Commonwealth.
“The Virginia legislature’s decision to ban the regulated skill game industry has resulted in an influx of illegal gaming terminals that are not paying taxes. Skill games were critical in helping restaurants and small businesses survive and thrive in the Commonwealth and generated over $130 million in tax revenue. Whether it is illegal gaming equipment in strip malls, VGTs in bars and restaurants disguised as charitable games, or the Pre-Reveal/NextPlay software invading the market… the influx is real and expansive. POM of VA finds the situation untenable and urges legislators to strongly consider righting a wrong and allow the play of skill games to help small businesses in the Commonwealth.
“The expansion of illegal games in the Commonwealth has been aided by legal opinion letters that have no basis under Virginia law and even under the most generous interpretation. Additionally, confusion surrounding the lack of clarity to enforcement agencies from the skill game ban has resulted in a complete lack of enforcement by Virginia State and local officials, putting tremendous pressure on all small businesses in the Commonwealth. Facing market pressure from locations struggling to make ends meet, POM of VA was asked to consider deploying Pre-Reveal/NextPlay software, the software discussed in the opinion letters, to be deployed into the Virginia market.
“POM of VA invests heavily in securing the services of best-in-class legal counsel. Our legal advisors strongly believe that the opinion letters being relied on are incorrect and do not accurately reflect the law as it currently stands in Virginia. In our view, these opinions are incorrect and advise people to commit illegal acts.
“POM of VA will continue to keep our games out of the marketplace in accordance with the law. While we still have terminals at some locations as pending lawsuits work through the courts, our games have been turned off and unavailable for play since July 1, 2021. That is who we are, and that is who we want to be for the Commonwealth of Virginia. A trusted partner that the Commonwealth can count on to abide by all applicable laws, support small businesses and capture significant tax revenue for the Commonwealth.”
POM of VA believes there is a bright future for legal skill games in the Commonwealth of Virginia. The facts are clear, legal skill games generated over $130 million in tax revenue for the Commonwealth and localities in the one year they were regulated. In addition, legal skill games provided a lifeline for small businesses, bars, restaurants, and convenience stores by generating critical revenue during the pandemic. Most of those small businesses would have met their demise without this lifeline.
Canada
AGCO issues $110,000 in penalties to BetMGM Canada for offering cash to induce new gambling customers
The Alcohol and Gaming Commission of Ontario (AGCO) has served BetMGM Canada Inc. with an Order of Monetary Penalty (OMP) of $110,000 for violations of the Registrar’s Standards for Internet Gaming.
In two separate incidents in 2024, BetMGM engaged marketing companies who offered cash to members of the public in return for opening new BetMGM accounts. The marketing activities occurred in public forums, such as a major national trade conference. Under AGCO’s Standards, operators are responsible for the conduct of their third-party suppliers who are contracted to support the operator’s Ontario gaming business, and must require their third-parties to meet Ontario laws, regulations and standards (Standard 1.19).
Ontario is one of the first jurisdictions in the world to establish and enforce rules that strictly limit high-risk inducement advertising and marketing in the online gambling industry. Registered iGaming operators are prohibited from offering gambling inducements, bonuses and credits as part of their broad public advertising and marketing activities (Standard 2.05). These Standards exist to protect Ontarians from predatory advertising and promotional marketing practices in order to limit the risk of gambling-related harm.
A registered operator served with an OMP by the AGCO has the right to appeal the Registrar’s decision to the Licence Appeal Tribunal (LAT), which is an adjudicative tribunal independent of the AGCO and part of Tribunals Ontario.
QUOTE
“Responsible gambling safeguards and the protection of Ontarians on registered gaming sites is among our key priorities. The AGCO monitors the activities of all registered operators and their third-party suppliers to ensure they are meeting our high standards and we continue to take strong action to ensure they operate within the public interest.”
Dr. Karin Schnarr, Chief Executive Officer and Registrar – AGCO
ADDITIONAL INFORMATION
BetMGM Canada Inc. failed to comply with the Registrar’s Standards for Internet Gaming. Specifically, the licensee failed to comply with the following provisions of the Standards:
- 1.19 Operators are responsible for the actions of third parties with whom they contract for the provision of any aspect of the Operator’s business related to gaming in Ontario and must require the third party to conduct themselves in so far as they carry out activities on behalf of the operator as if they were bound by the same laws, regulations, and standards.
- 2.05 Advertising and marketing materials that communicate gambling inducements, bonuses and credits are prohibited, except on an operator’s gaming site and through direct advertising and marketing, after receiving active player consent.
Contrary to the Standards, BetMGM Canada Inc. and/or their affiliates allegedly engaged in the following activities:
| a) | On or about January 13 and 14, 2024, BetMGM representatives were alleged to have attended the National Franchise Show and were offering $100 in cash to new players for opening a new account and depositing $15. |
| b) | On or about March 11, 2024, BetMGM acknowledged that its marketing affiliate “Above the Street” had engaged in prohibited inducement marketing. The conduct resulted in 377 player sign-ups and $127,180.00 in commissions to “Above the Street”. |
| c) | On or about April 13, 2024, another BetMGM marketing affiliate “Maple Leaf Marketing” engaged in prohibited inducements and marketing to induce on-site activations and acquire new players. The conduct resulted in 94 player sign-ups and about $34,000.00 in commissions paid to “Maple Leaf Marketing”. |
4ThePlayer has officially received game certification for the Brazilian iGaming market, reinforcing its commitment to regulated markets worldwide. This milestone enables the company to bring its acclaimed player-first gaming experiences to a brand-new audience.
Approved by Gaming Associates and eCogra, these certifications allow licensed operators in Brazil, to offer 4ThePlayer’s high-quality, player-centric games through their existing platform integrations with Relax Gaming and Yggdrasil.
Certified game titles include 4 Fantastic Fish, 4K Ultra Gold, and 5 Wild Buffalo as well as their innovative and unique table games 100 Bit Dice and 1000x Busta, all top-performing, player-favorite releases. Moving forward, all 4ThePlayer games will be certified for Brazil from day one.
Beyond its existing portfolio, 4ThePlayer is committed to delivering region-tailored content, leveraging its local team in Brazil to develop engaging, culturally relevant gaming experiences set to launch later this year. The first one of these titles is 4 Fantastic Fish Amazon Adventure, the latest in their player favourite 4 Fantastic series, coming via Yggdrasil in April.
Henry McLean, Co-Founder, Commercial & Marketing Director at 4ThePlayer, expressed his enthusiasm: “We are thrilled to bring our unique, player-centric games to Brazil, a market full of energy and potential. These game certifications are a major milestone, reinforcing our dedication to regulated markets and delivering best-in-class entertainment. We look forward to collaborating with operators and creating unforgettable gaming experiences for Brazilian players.”
With this certification, 4ThePlayer continues its mission of providing exceptional, player-focused gaming worldwide, ensuring its engaging and innovative titles reach new markets and audiences.
SOFTSWISS, a leading iGaming software provider, continues its expansion in LATAM by obtaining certification for the Peruvian market for its Jackpot Aggregator, a comprehensive player engagement solution. This follows the recent certification of the SOFTSWISS Jackpot Aggregator in Brazil.
The certification was achieved through GLI, an accredited testing laboratory, ensuring that the Jackpot Aggregator meets all technical and legal requirements set by Peruvian authorities.
The online casino segment in Peru has seen steady ARPU growth, increasing from 181 dollars in 2017 to a projected 513 dollars by 2028. Similarly, online sports betting has shown consistent growth, with ARPU rising from 319 dollars to 453 dollars over the same period.
The SOFTSWISS Jackpot Aggregator effectively caters to both segments, as it can be seamlessly integrated with sportsbooks and online casinos, even those based on third-party platforms. Also, SOFTSWISS recently announced the launch of the first Network Jackpot for Sportsbooks, a rare and effective engagement tool in the market.
Angelina Stasiuk, Head of Business Line at SOFTSWISS Jackpot Aggregator, commented: “When it comes to player retention and engagement while delivering an exciting entertainment experience, the SOFTSWISS Jackpot Aggregator offers a powerful solution. It allows operators to easily configure and implement a variety of mechanics, from multi-level prizes to branded jackpots. We are excited that these effective tools are now available for the Peruvian market.”
The Jackpot Aggregator can also be seamlessly integrated with the SOFTSWISS Game Aggregator, which is also certified for the Peruvian market.
The SOFTSWISS team will be available to discuss sweepstakes, social casino segments and partnerships at SiGMA Americas in São Paulo, Brazil, from 7 to 10 April.
About SOFTSWISS
SOFTSWISS is an international technology company with over 15 years of experience developing innovative solutions for the iGaming industry. SOFTSWISS holds several gaming licences and provides comprehensive software for managing iGaming projects. The company’s product portfolio includes the Online Casino Platform, the Game Aggregator with over 23,500 casino games, the Affilka Affiliate Platform, the Sportsbook software and the Jackpot Aggregator. In 2013, SOFTSWISS revolutionised the industry by introducing the world’s first Bitcoin-optimised online casino solution. The expert team counts over 2,000 employees.
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