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Compliance Updates

California Gambling Control Commission’s Agenda: Key Decisions and Recommendations for January 2024

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The California Gambling Control Commission (CGCC) has released its agenda for the upcoming meeting scheduled for January 25, 2024. The comprehensive six-page document details a series of important considerations and recommendations that will be discussed. These include license renewals, key employee considerations, and crucial decisions regarding the Revenue Sharing Trust Fund and Third-Party Proposition Player Services.

 

  1. Revenue Sharing Trust Fund Final Report

The Commission will review the final report for the Revenue Sharing Trust Fund, which outlines the distribution to eligible recipient Indian Tribes for the quarter ending December 31, 2023. The staff recommendation is to approve the distribution payments, a significant move that reflects the Commission’s ongoing commitment to supporting tribal communities through equitable revenue sharing.

 

  1. License Renewals and Evidentiary Hearings

A significant portion of the agenda focuses on the renewal of various cardroom owner type licenses and the consideration of key employee licenses. Notably, the Golden West Casino in Kern County has two options under consideration. The first option suggests rescinding the referral to an Evidentiary Hearing and approving the Renewal Applications through January 31, 2026. The second option is to deny the request to rescind the referral and instead approve the Issuance of a New Interim Renewal License.

Bay 101, Palace Poker Casino, LLC, and Parkwest Casino Marina are also under the spotlight for their renewal applications. The Commission’s decisions in these cases will be pivotal in setting the tone for the regulatory environment in the state’s gambling sector.

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  1. Third-Party Proposition Player Services Employee Type License

The meeting will also include discussions on several applications for Initial and Temporary Third-Party Proposition Player Services Employee Type Licenses. This includes deliberations on applications from Faros Unlimited, Inc., Knighted Ventures, LLC, and Qualified Player Services, LLC, among others. The Commission’s staff recommendations vary, with some applications recommended for approval and others suggested for referral to an evidentiary hearing.

 

  1. Tribal-State Compact Key Employee Findings of Suitability

Another key agenda item is the consideration of Initial and Renewal Tribal-State Compact Key Employee Findings of Suitability. This segment involves a wide range of applications from various tribal casinos, including Chukchansi Gold Resort and Casino, Hard Rock Hotel & Casino Sacramento, and Harrah’s Northern California. These decisions are crucial for maintaining the integrity and trust in the management of tribal casinos.

 

  1. Consent Calendar Items

Finally, the Commission will review Consent Calendar items 11 through 17, which encompass various administrative and procedural matters.

The January 25 meeting is set to be a significant event, reflecting the CGCC’s ongoing role in overseeing and regulating gambling activities in California. The decisions made in this meeting will have lasting implications on the gambling industry, particularly in the areas of licensing, regulation, and tribal relations. Stakeholders and the public await the outcomes of these deliberations, which are crucial for the future landscape of gambling in California.

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Compliance Updates

NJ Governor Murphy Establishes Task Force to Support Responsible Gaming

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New Jersey Gov. Phil Murphy has signed Executive Order No. 360, establishing a Responsible Gaming Task Force responsible for providing advice and recommendations to the Governor’s Office and to the Attorney General regarding reforms to support responsible gaming and to address problem gambling in New Jersey.

A rise in problem gambling has been observed over the past few years, according to a 2023 report from the Rutgers University Center for Gambling Studies. The Rutgers study estimated that 6% of New Jersey residents are at high risk for problem gambling, which is significantly higher than the national average of 1-2%, with the highest rates affecting Black/African American or Hispanic residents.

“New Jersey is known to be a gaming destination with historic locations like Atlantic City, amusement gaming at the Jersey Shore, notable horse racing venues, and more. This Task Force will see to it that we maintain our global leadership in gaming by ensuring that we have the tools needed to address problem gaming for our residents,” said Governor Murphy.

“I applaud Governor Murphy for his leadership in elevating responsible gaming initiatives through the establishment of a statewide task force. New Jersey has been a national leader in casino and sports wagering for many years, and we owe it to our residents to review and expand our existing efforts on problem gambling. This task force demonstrates that ‘responsible gaming’ is not merely a buzzword in New Jersey, but a critical issue that demands the attention of government entities, industry, and stakeholders. As Chair of the task force, I’m eager to get underway in examining ways to help bring attention to and support the prevention and treatment of gambling disorder,” said Attorney General Platkin.

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The responsibilities of the Responsible Gaming Task Force will be to review several areas of the problem gambling landscape, including the effects on underage and vulnerable communities; develop strategies to achieve responsible gaming; and make recommendations for policy changes to address the issue of problem gambling.

Members of the Task Force will consist of seven government representatives or their designees, including:

The Attorney General, who shall serve as Chair;

The Chair of the New Jersey Casino Control Commission;

The Director of the New Jersey Division of Consumer Affairs;

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The Director of the New Jersey Division of Gaming Enforcement;

The Director of the Division of State Lottery;

The Executive Director of the New Jersey Racing Commission; and

The Commissioner of the Department of Human Services.

The Task Force may consult with experts, representatives of regulated entities, or other knowledgeable individuals in the public or private sector with respect to any aspect of its mission.

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Compliance Updates

Flows Now Registered in New Jersey

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Technology solutions provider Flows is now officially registered as an active vendor in New Jersey.

James King, CEO of Flows, said: “Receiving approval as a vendor in New Jersey is a next natural step for us at Flows as we accelerate our North American expansion. It highlights the dedication and effort of our entire team and aligns with our mission to deliver cutting-edge innovation platform to the US market. A big thanks to our fantastic client Light & Wonder who supported our registration as well as a big shout out to North America’s finest legal outfit Saiber LLC (Jeremy and his team) for their expert guidance throughout this process.”

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Compliance Updates

Aruze Gaming Announces Rapid Expansion Throughout North America and Asia

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Aruze Gaming Global (AG2) has announced rapid expansion throughout North America and Asia. AG2 has now met the rigorous requirements and has been granted approvals from the following jurisdictions, across North America and Asia. These new gaming licenses dramatically expand AG2’s addressable markets in more than 160 new jurisdictions, including recent approvals in Macau (SAR) China (DICJ), Philippines (PAGCOR), Pennsylvania, Virginia, Saskatchewan, Nova Scotia, and dozens more that are in process. Additionally, AG2 is establishing offices and distributorships in the Netherlands, Malaysia, Philippines, Cambodia, and Vietnam to further extend its international reach. AG2 has now been granted licenses for over 160 gaming jurisdictions world-wide, up from just 76 licenses in August of 2023.

This accomplishment marks a substantial expansion for AG2, solidifying its commitment to providing cutting-edge gaming solutions with the highest standards of regulatory compliance. The recent approvals underscore the company’s dedication to fostering strong relationships with its partners across the globe while ensuring responsible and transparent gaming practices.

Kelcey Allison, Global Chief Operating Officer, said: “The timing could not be better for the new gaming licenses. Coupled with the recent release of several new titles that are performing at 2 to 3 times house average – thus giving us some amazing new content for our existing and newly accessible markets.”

Betty Zhao, SVP of International Operations, said: “Our explosive growth and high-performing new content is fueling a lot of excitement with our new customers.”

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