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Compliance Updates

Gaming Americas Q1 2024 Meetup: Balancing Slot Mechanics and the US Legislation Roundup

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Gaming Americas Q1 2024 Meetup: Balancing Slot Mechanics and the US Legislation Roundup

 

HIPTHER’s Virtual Quarterly Meetups for the Gaming industry have officially returned for 2024! The Gaming Americas Q1 Virtual Meetup took place on February 28, featuring an informative panel on Innovating Slot Mechanics, and our staple US Legislation Round-up.

HIPTHER’s Co-Founder, Zoltan Tuendik, hosted the first session about Slot Mechanics, featuring Connor Blinman, Head of Games at Gaming Corps, and Raph Di Guisto, Founder at Silverback Gaming. For the Q1 US Legislation Roundup, the “usual suspects” Martin Lycka, SVP for American Regulatory Affairs & Responsible Gambling at Entain, Bill J. Pascrell III, Esq, Partner at Princeton Public Affairs Group Inc, and Jeremy Kleiman, Gaming Attorney and Member at Saiber LLC, reunited for a session that offered ample insight into the latest regulatory updates in the United States.

The first part of the Meetup primarily focused on the future direction of the gaming industry, including emerging trends in slots and game mechanics, the potential of virtual reality and multiplayer technology in the casino industry, and the game development process. The US Legislation Roundup walked us through the challenges faced by the online gambling industry due to the popularity of unregulated offshore sites, the sports betting industry, the legalization of iGaming in various states, the regulation of online gambling and sports betting, and the future of online sports betting and iGaming services.

 

Innovating Slot Mechanics: Balancing Novelty with User Experience

Connor and Raph discussed the game development process, highlighting the importance of understanding the target audience, conducting market research, and introducing innovative mechanics. They anticipate a trend towards medium volatility games with increased player engagement. They also discussed the potential of skill-based and personalized gaming experiences, as well as integrating multiplayer technology. The conversation underscored the complexities of the market and the need for continuous innovation. They discussed the challenges of introducing a new feature in the competitive slots game market and the importance of adapting and innovating. They also focused on reducing player fatigue and burnout and adapting to evolving market needs. The discussion ended with a focus on measuring the success of new game mechanics after their release using player feedback and data analysis.

 

Q1 US Legislation Roundup: Online Gambling Challenges, New Markets,Taxation, and Sports Betting Industry

Jeremy discussed the difficulties faced by the online gambling industry due to the popularity of unregulated offshore sites among players in regulated markets. He questioned the incentives for players to switch to regulated sites and acknowledged this as a challenge for both the industry and regulators.The conversation between Jeremy, Bill, and Martin revolved around sports betting, particularly in New York and North Carolina, with a focus on tax rates and policy. The need for investing in consumer protection, innovation, and improved customer experience was emphasized.

Bill Pascrell discussed the challenges and progress of online gaming in various states, including the potential tax increase proposed in New Jersey and the readiness of other states to legalize iGaming. The conversation primarily focused on the introduction of sports betting legislation in various states and its potential impact. The panelists also briefly touched on the possibility of regulating online casino and poker games in Maryland. The conversation emphasized the importance of bringing in interested operators, incentivizing them with bonuses, deductions, and reasonable tax rates.

Bill, Martin and Jeremy had a wide-ranging discussion about the sports betting industry. They highlighted the role of Senator Hoskins and his support for the industry. They also touched upon the public perception of the industry and the need for responsible gambling. The conversation explored the challenges of regulating the Black Market and the potential for increased tax revenue. The group also acknowledged the need for the industry to proactively educate the public about its benefits. Towards the end, they discussed the difficulty of creating a positive narrative around the industry.

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Bill, Jeremy, and Martin discussed the regulation of online gambling and sports betting, emphasizing the need for a balance between industry growth and job creation, and addressing concerns about dysfunction and stakeholder engagement. They also touched on the potential of technological innovation and the risk of entrenched market shares. The conversation concluded with a reminder about the importance of integrity, compliance, legality, and responsible gaming in the industry. The trio discussed the need to respect tribes and engage with them in negotiations. The issue of betting on college sports was raised, highlighting potential risks for players and the need for regulation. The discussion ended with a brief mention of the NCAA tournament and the importance of commercial operators’ support for legislation.

The panel concluded with thoughts on the future of online sports betting and iGaming services. The speakers emphasized the importance of agreements with individual states and the federal government to offer these services. The role of human interaction in understanding stakeholders’ interests and pain points was highlighted, and the potential for legalizing sports betting in California and other states was discussed, while acknowledging the problems with the black market. The need for a more efficient way to engage with tribes and the necessity of regulation were stressed as next steps to drive out the black market.

 

Coming up Next:

Watch the recording of the Gaming Americas Q1 Meetup on HIPTHER TV, and keep an eye out for our next Gaming Americas Quarterly Meetups for 2024!

 

Compliance Updates

Final CFG USA 2024 Online Gambling Report Confirms: Crime Wins After Years of Legalization

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The Campaign for Fairer Gambling (CFG) has released 2024 CFG USA State Supplement #2: All States, the final report in its landmark CFG USA 2024 Series, warning that the rapid expansion of legal online gambling is fueling more gambling and higher consumer losses – all without displacing crime from the total marketplace.

The analysis, produced by technical marketplace intelligence platform Yield Sec, offers the most comprehensive national and state-by-state breakdown ever produced across the US online sports betting, casino, and poker marketplaces. It shows that states with more legal operators record the highest Gross Gambling Revenue (GGR) per capita as a percentage of income – but, illegal operators continue to dominate, with 74% of total GGR across US online gambling being stolen by crime during 2024.

In 2024, the total US online gambling marketplace was worth $90.1 billion, of which $67.1 billion (74%) was illegal. The illegal sector grew by 64% year-on-year, outpacing the legal sector’s 36% growth.

There are three states with legalized online sports betting where the market is below the average of 0.31% GGR per capita as a percentage of income for states with no legalization, being Oregon, Maine, and Arkansas. These states have operator numbers of Oregon 1, Maine 2, and Arkansas 3, for an average of 2, below the national average of 9.

There are three states with both legalized online sports betting and casino gaming where the market is below the average of 0.77% of GGR per capita as a percentage of income for states with legalization of online sports betting only, being Delaware, Rhode Island, and Connecticut. These states have operator numbers of Delaware 4, Rhode Island 2, and Connecticut 3 for an average of 3, below the national average of 14.

There is a pronounced correlation between having a small number of legal operators and lower GGR per capita as a percentage of income.

The proponents of legalization assert that having more legal operators is better for competition and implies that this will help reduce the size of the illegal sector. The evidence, contained in CFG reporting from years of monitoring and the most comprehensive study ever conducted upon the US online gambling marketplace at both the national and state levels, contradicts this assertion.

Derek Webb, Founder and Funder of CFG, said: “The onus is on the proponents of legalization to provide an explanation as to how they managed to get it so wrong – at the least, they should apologize to the legislators they influenced based on their misleading representations. There should now be a moratorium on state expansion until effective action reduces illegal revenues and enables effective control of online gambling marketplaces.”

Ismail Vali, founder and CEO of Yield Sec, added: “Decades of illegal online gambling in the USA were meant to end with legalization and regulation. The hope was simple: legal, licensed options in each state would ‘channelize’ the marketplace and eliminate illegal gambling. This has not happened.

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“Seven years after state legalization began in 2018, the US online gambling marketplace remains a fortress of crime, and the zero-sum game hope that legalization and regulation would, on their own, remove crime, has failed. Illegal gambling isn’t one problem – it’s many. You can only control it through process – MPEO: Monitor, Police, Enforce, Optimize. Crime has now stolen hundreds of billions of dollars from American commerce and communities over more than three decades – it’s time to make this end.”

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Compliance Updates

AU10TIX Launches Free Assessment Tool and Readiness Guide to Help Organizations Navigate Child Safety Age Assurance Compliance

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AU10TIX, a global leader in identity verification and fraud prevention, announced the launch of a free Child Safety Age Assurance Risk and Readiness Assessment and Age Assurance Readiness Guide designed to help businesses better understand their risk and tailor their strategy to meet regulatory obligations. They support AU10TIX’s Selfie-based Age Estimation service, which delivers the industry’s most precise and unbiased age assessment in just two seconds.

In the US, federal legislation such as the Children’s Online Privacy Protection Act (COPPA) requires parental consent for users under 13, while the California Consumer Privacy Act (CCPA) mandates age verification for websites accessed by users under 16. Additionally, 19 U.S. states now enforce mandatory age checks for adult content and gambling platforms. Similar regulations are impacting social media and online services in the UK, EU, and Australia.

AU10TIX’s free Child Safety Age Assurance Risk and Readiness Assessment consists of six short questions about an organization’s sector, security measures, and ID verification processes. Upon completion, participants receive a customized Risk Assessment Report outlining key vulnerabilities and practical recommendations for improving compliance. They also receive a comprehensive 13-page Age Assurance Readiness Guide to help them navigate the complex landscape of age verification regulations.

“As age-based regulations expand globally, businesses are actively seeking guidance on how to balance security, compliance, and user convenience. Our new Risk and Readiness Assessment helps organizations identify their unique risks and stay compliant without compromising the customer experience. This perfectly complements our Selfie-based Age Estimation solution, which adds an extra layer of protection to help ensure safe use of our platform by minors,” said Yair Tal, CEO of AU10TIX.

AU10TIX also offers a Selfie-based Age Estimation solution that leverages advanced AI-driven biometric technology to analyze facial features and estimate age without the need for a government-issued ID. It streamlines the experience by requiring only a selfie, cutting verification time to two seconds while delivering the industry’s most accurate age estimates. It simultaneously conducts a liveness check and analyzes the selfie using AI models trained on millions of biometric data points, which accurately estimate age without storing any personal data. By reducing the need for full ID verification, this approach can reduce costs by up to 10x and boost completion rates by 27%.

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AGCO Removes Cap on Seller Commission for Charitable Lottery Products

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The Alcohol and Gaming Commission of Ontario (AGCO) has updated several lottery policies to remove the cap on seller commission for Paper Raffles and Media Bingo, along with removing the prohibition on Catch the Ace paper lotteries, to align with other charitable lottery products.

Licensed charities may now negotiate commissions directly with sellers and determine commissions, provided they are reasonable and tied to the cost of service provided by the seller.

These updates further the AGCO’s commitment to adopt an outcomes-based regulatory approach and reduce burden for the charitable gaming sector. Local charitable organizations will have greater flexibility to make decisions that best serve their fundraising objectives.

Important Reminders

• Charities must still receive approval for other expenses incurred under their licence and retain receipts for seller commission paid.

• Licensing authorities will not require documentation to be submitted as part of the application process, however, charities are still subject to audit to determine compliance.

• Charities are reminded of their legal requirement to meet their obligations under the Criminal Code and with respect to conducting and managing a charitable gaming scheme.

• As with all licensed charitable lottery events, charities must take the necessary steps to ensure that they are conducting and managing the lottery event within Ontario.

For charitable gaming-related inquiries, email an AGCO Eligibility Officer at [email protected] or call AGCO Customer Service at 1-800-522-2876, Monday to Friday from 8:30 a.m. to 5 p.m.

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GamingAmericas.com (part of HIPTHER) is your one-stop portal for the latest news, insights, and analyses in the gaming industry across the Americas. From legislative updates and market trends to interviews with industry leaders, we provide a comprehensive look at the dynamic landscape of both online and land-based gaming. Whether you're a stakeholder looking to stay ahead of the curve or a gaming enthusiast eager for reliable updates, GamingAmericas.com has got you covered. Follow us on social media and subscribe to our newsletter for real-time updates and exclusive content. Make informed decisions and stay ahead in the game with GamingAmericas.com.

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