By 2022 that logic had collapsed under its own contradictions. Channelisation had sunk below 50%, Veikkaus’ annual contribution to the state had halved since 2017, and policymakers across the political spectrum were conceding—quietly at first, then publicly—that the monopoly was no longer defensible.

Now the country is poised to become Europe’s newest licensing market. What remains uncertain is when the competitive regime will actually begin. The legislative process—still officially aligned with the government’s timetable—has begun to buckle under political nervousness about advertising, electoral timing and the preparedness of regulators.

But while Parliament wrangles over dates, operators are already building teams, commissioning legal advice and shaping local strategies. The Finnish opening is small by European standards but symbolically weighty: one of the last Nordic holdouts is moving into the mainstream. And the industry is preparing accordingly.

Where the bill stands—and why delay now looks likely

At a technical level, the bill is close to the finish line. “The Finnish Parliament’s Administration Committee decided to conclude its hearings on 13 November and is now drafting its report,” says Antti Koivula, Chief Compliance Officer of Hippos ATG. He expects the report “at the very latest mid-December,” after which the two plenary readings “can be completed relatively quickly.”

Independent consultant Jari Vahane offers a similar assessment: “Parliament is still considering the bill. The Administrative Committee is almost ready, and Parliament will have time to approve it this year, when the law will enter into force on 1 January 2026.”

And yet the committee’s schedule tells another story. Pekka Ilmivalta of Nordic Legal had noted an omission in dealing with the bill in the administrative committee’s weekly plan, which, he said, “raises concerns about the timetable”.

Behind this ambiguity lies political considerations. Both Ilmivalta and Vahane point to last-minute discussions about pushing the market opening from January 2027 to summer 2027—after Finland’s parliamentary elections.

Gambling operators aware of potential delay

Operators received the same signals. A representative from a big operator told iGB that “government are now discussing postponing the market opening…so after the elections in April,” explaining why the item was unexpectedly pulled from the committee’s agenda.

What is driving the hesitation? According to Vahane, “political decision-makers fear that gambling marketing will increase so much that public opinion will turn against it before the parliamentary elections.” Even parties broadly supportive of liberalisation prefer to postpone any visible shift until after the vote.

Most observers therefore expect a short delay—weeks in legislative approval, months in market opening. As University of Helsinki researcher Janne Nikkinen puts it, “Perhaps a delay of a few days or weeks, they’re mostly ironing out technical issues.” The law’s substance is not in question; the timeline is.

A spokesperson from the Ministry of Interior could not comment on a possible delay, but said in an email to iGB:  “The aim of the Administrative committee has been to complete the report in November, according to the estimate, after which the report is meant to progress to the plenary session”.

Consensus without clarity

Despite procedural delays, political unity on the need for reform is unusually strong. “There has been broad cross-party consensus for a few years that the gambling market should be partially liberalised,” Koivula says. Differences remain over advertising and harm-prevention, but not over the direction of travel.

Ilmivalta explains the logic: “Channelisation of the monopoly is less than 50%, income for the Finnish government has declined and at the same time problem gambling has been slightly increasing. The current system simply does not serve its purpose any more.”

And unlike in many European debates, the opposition has little incentive to resist change: Veikkaus itself declared as early as 2022 that the monopoly should be dismantled. As Nikkinen puts it, “Even the opposition isn’t opposing the reform, because Veikkaus itself said it no longer wants the monopoly.”

The political friction, therefore, is not about whether but when.

A regulator still not ready for day one

While legislative consensus holds, confidence in regulatory readiness is far thinner.

Koivula is frank: “I am not fully confident that the transition will be seamless. ” Although the National Police Board will supervise licensing through 2026, he warns that “the new authority will need to hire a substantial number of employees, and very few—if any—will have prior experience in the gambling sector.” Even within the National Police Board, he says, “this remains to be seen.”

Nikkinen is more pessimistic: Finland’s model “relies on courts, which can take years. That’s too slow for fast-moving marketing campaigns.” The new authority will sit within a regional administrative agency that also handles unrelated topics, from animal welfare to alcohol licensing. “They won’t have power to sanction directly. That’s a weakness,” he says.

Vahane is more hopeful, believing staff will transfer from the NPB and that the technology project “will be ready in 2026.” Ilmivalta, though trusting in Finnish administrative competence in general, stresses that preparations “have not been very transparent, nor has the regulator had much dialogue with the industry.”

The result seems to be a split-screen picture: operators preparing with determination, and regulators racing quietly behind.

A black-market problem without the tools to solve it

Every expert interviewed agreed that the largest structural weakness is enforcement.

Koivula’s assessment is blunt: “I foresee nothing but enforcement challenges. The enforcement toolbox provided to the regulator is highly insufficient for tackling black market operators.” He warns of a counter-intuitive outcome in which “the majority of enforcement actions end up targeting licensed operators,” simply because they are visible and cooperative.

Nikkinen underscores the legislative omissions: Finland “does not include payment blocking, website blocking, DNS blocking,” partly due to political resistance and partly because the autonomous region of Åland—and PAF—complicates national blocking measures. The result, he predicts, is persistent leakage: “I believe leakage to the black market will continue, and that we’ll need to revise the law again by 2029 or 2030.”

Ilmivalta shares the concern: “There will always be those who decide not to join the regulated market, and the regulator’s tools are not too many.” The B2B licensing requirement in 2028 will help, but is unlikely to be decisive.

Even the operators’ own trade body, the Finnish Gambling Association, Rahapeliala, strikes a cautionary tone. CEO Mika Kuismanen argues that “the bill in itself does not contain enough explicit tools to combat the black market,” warning that if supervision focuses only on licensed companies,” unlicensed operators will not have sufficient incentive to consider the legal market.

Operators prepare: cautious, optimistic and waiting for certainty

Despite the regulatory grey zones, operator sentiment is broadly positive. “The industry as a whole has a positive feeling,” says Kuismanen. The legislative process has been relatively fast and well structured, even if “operators will still have to wait before starting full preparations.”, he says.

FDJ/Kindred´s general manager for Finland and Estonia, Joel Hakamies echoes that view: “It’s looking fairly good for the big picture. Overall it’s been fairly positive from our view.” The main constraint, he says, is uncertainty: “For our planning it would be better if the timeline was set in stone sooner rather than later. Uncertainty always blurs the horizon for investment.”

Hippos ATG, meanwhile, is preparing at full speed. “We are building a Helsinki-based organisation, recruiting experts on product, marketing and customer support,” Koivula says. For Hippos ATG, Finnish liberalisation is not just commercial: “Every euro of profit flows back to Finnish and Swedish horse racing — a model no other operator can offer.”

Ilmivalta sees a wide variety of strategies: “Some operators will establish local organisations while some are planning on operating very much remotely. Some are customising, some trust that their international offering works.” He also expects variety of new and innovative measures in brand-building under advertising constraints.

Marketing: permissive or restrictive?

Advertising rules are emerging as one of the most contested elements of the reform. The government’s responsible advertising clause drew criticism for vagueness, and even the Basic Law Committee questioned whether courts could interpret it effectively.

Nikkinen notes that Finnish media interests are lobbying heavily, while affiliates have been “banned,” leaving an “uneven table.” He warns that traditional media—not online channels—are the dominant source of exposure for consumers, including children.

Operators themselves are split on how restrictive the framework will be. Kindred sees the new rules as “actually quite liberal,” with “plenty of possibilities for operators to make their mark”. Kuismanen, too, believes “almost all channels are available and there are no time limits”.

What Finland means for Europe

Experts that iGB has spoken to agree Finland will not transform the European landscape overnight. “In reality, the wider impact will be limited,” Koivula says. Vahane and Kuismanen concur.

Yet Finland matters symbolically: it is the first Nordic monopoly to fall since Sweden in 2019, and Norway will be watching closely. As Nikkinen notes, Norway “still maintains a strict monopoly.” Whether Finland succeeds—or struggles—will shape its neighbour’s arguments for years.

More broadly, Ilmivalta expects Europe to move gradually toward harmonisation in the 2030s, driven by black-market control and safer gambling priorities.

A market worth the wait

Finland’s opening is not smooth, nor is it fully defined. But operators appear willing to tolerate uncertainty for a market that remains both lucrative and culturally embedded. “Finland has been and will be an attractive gambling market,” Hakamies says. “Definitely a major opportunity.”

The real test will come not in 2026 or 2027, but in the following years—when Finland must decide whether its lightly armed regulator and incomplete enforcement architecture can deliver the channelisation and consumer protection the reform promises.

For now, the industry waits—impatient, optimistic and already laying its bets.

All three will now move on to the last round of consideration by the New York State Gaming Commission (NYSGC). The commission is to make its final licensing decision by 31 December. Up to three downstate licences may be awarded, at a minimum cost of $500 million each.

Most of the meeting was procedural – GFLB’s announcement and remarks lasted all of about 10 minutes. The board has been convening weekly behind closed doors since 8 October.

Board chair Vicki Been said in prepared remarks that the group “determined that awarding all three licences best advances the state’s long-term economic, fiscal and community objectives”.

This question of whether all three projects would advance had become increasingly uncertain as the process unfolded. Several previous applicants voluntarily withdrew and two of the three remaining finalists – Metropolitan Park and Resorts World – are both in Queens, raising questions about cannibalisation from competition. The final licensing decision now rests with the NYSGC.

In any case, board members were met with vitriol following the announcement. Chants of “Shame on you!” broke out at the meeting for several minutes until the shouters were removed. It was not immediately clear which decision was being protested.

All three New York casino bids selected but costs vary

Once the shouting was quelled, board member Greg Reimers explained why all three had been approved.

“No alternative scenarios produce comparable revenue or fiscal benefits,” he said, with regard to other licensing outcomes. “Each project proposes to deliver substantial community benefits, including infrastructure and transit improvements, local business partnerships and significant commitments to community-based organisations.”

The planned investment costs listed on Monday for the projects were below the total cost projections offered by the applicants, which took licence fees, community benefits and other costs into account.

The capital investment for Bally’s was listed at $2.3 billion, from $4 billion total. Metropolitan Park was tagged at $5.3 billion, from $8 billion total, and Resorts World was listed at $3.3 billion, from $7.5 billion total.

Applicants eager to clear final licence hurdle

In a statement after Resorts World’s approval, Genting New York chief Robert DeSalvio said the ruling “represents more than 15 years of work to generate jobs, revenue and opportunities for our neighbours”.

Bally’s said in a statement that it was “grateful for the board’s confidence” and was “honoured” to be selected.

“Our team has worked closely with community leaders, union partners and local stakeholders to build a project that delivers real jobs, lasting economic benefits and a world-class entertainment destination for the Bronx,” the statement said.

Metropolitan Park spokesman Karl Rickett said in a statement that the board “has validated the positive economic impact this project will have with billions of dollars in tax revenue, 23,000 union jobs and over $1 billion in community benefits. We look forward to the Gaming Commission’s review.”

Both Bally’s and Metropolitan Park have projected openings in 2030, whereas Resorts World, as an existing facility, has pushed the limit in scheduling its ramp-up. Originally, it projected a July 2026 opening, but its latest projection has it moved up to March.

Bright spotlight for the GFLB

The five-member GFLB was thrust into the spotlight this autumn after a quick formation in 2025. Four of the five members were appointed this year, the most recent of which came on 30 September. None of the members have experience in or connection to gaming.

In a press conference following the announcement, Been indicated the board leaned heavily on consultants in forming its decision. This was especially true with regard to performance projections and market concerns.

“We ask our consultants to be extremely searching and thorough, and we ask them to be very conservative,” she told reporters. “They disagreed with some estimates by the applicants and thought that they were quite high, so all of our estimates about the revenue potential are based upon our consultants’ views, not the applicants’ views.”

The board estimates that the three applicants could generate $7 billion in gaming tax revenue and $5.9 billion in other tax revenue in the 10-year period from 2027-2036.

According to the selection rationale document, the gaming analysis was “led by Tailored Hospitality Advisors with support from Advantage Partners Consulting, Klebanow Consulting, Hall Hospitality Advisors, Ben Mammina Development Group and Thompson Consulting and Analytics”.

Been was adamant that the board’s approval is not a “rubber stamp” for an identical ruling from the NYSGC. When asked whether there are “strong odds” for such an outcome, she said simply, “I am not a betting person.”

Strong market potential but timelines ‘ambitious’

The rationale document showed that all three applicants were approved unanimously. There were points of concern with each, but the market overall was viewed as being fundamentally solid.

“The downstate gaming market is among the nation’s strongest, given the area’s dense population, high income levels and tourism volume,” the rationale said. “The large local population base residing within a two-hour drive of the proposed casino sites is expected to anchor longterm visitation, supplemented by domestic and international tourism. Each proposal is positioned to compete for premium gaming customers through brand strength, amenities, and facility design.”

Applicants’ suitability and integrity was not included in the board’s consideration – that will be the purview of the NYSGC. Commission chair Brian O’Dwyer has vowed repeatedly that applicants will be held to the highest standard.

Aside from the concerns with the individual applicants, the board noted that construction timelines might impact each. All of the proposed timelines were seen as “ambitious” by members.

“Resorts World New York City’s projected March 2026 opening may underestimate regulatory and construction complexities, and Bally’s Bronx and Hard Rock Metropolitan Park’s mid-2030 timelines may be optimistic given project scale and urban constraints,” the rationale reads. “Continued and diligent oversight and coordination will be necessary to ensure timely delivery.”

In the role, the government confirmed that Eldhagen will support the minister for financial markets, Niklas Wykman. Alongside gambling regulation, Eldhagen will oversee the financial market, state properties and the financing of new nuclear power.

Eldhagen takes on the new position having most recently served as head of international secretariat Sveriges Riksbank. Previously, he worked in various management roles at the Ministry of Finance and as an advisor at the World Bank.

The government said Eldhagen will commence his new role with effect from 1 December.

Another new face in gambling regulatory leadership

The appointment comes after the Swedish gambling regulator in September also announced a change in leadership. Johan Röhr is now its acting director general following the departure of Camilla Rosenberg.

Röhr took on the temporary role from 1 November and is overseeing Spelinspektionen until further notice. He has worked as chief legal officer at the regulator since June 2008.

Spelinspektionen confirmed that Rosenberg would be stepping down as director general on 31 October. She had led the body as its director general since 2017.

Changing face of Swedish gambling market

Aside from regulatory leadership, the Swedish market has also seen several changes to laws and rules over the past year.

In September, Sweden’s Ministry of Finance published Marcus Isgren’s report, outlining amendments designed to strengthen the country’s regulatory framework. This included closing loopholes that enabled illegal operators to market to locals via English-language sites with payments accepted in euros.

Other proposed amendments included broadening the prohibition on promoting illegal gambling in Sweden. Beyond advertising, this would extend to payment processors, financial services and other providers that support unlicensed operations.

The memorandum also proposes adjustments to criminal provisions, meaning unlicensed gambling and the promotion of unlicensed services would be made illegal and subject to criminal charges.

Aside from this, the government in October published the full text of legislation imposing a blanket ban on using credit for gambling. This will extend the Swedish Gambling Act, which already prevents players from using credit to gamble with licensed operators.

The new rules will come into effect from 1 April 2026.

This year also saw the end of the country’s land-based market. Svenska Spel confirmed the closure of its final land-based casino in Stockholm, after the Swedish Parliament voted to end land-based casinos in April.

A dominant global force in gaming, the operator has become market leader in the US through its FanDuel brand and has expressed similar lofty ambitions in Latin America.   

In September 2024, Flutter acquired a 56% stake in NSX, the parent company of Brazil-facing brand Betnacional. That same month, the company insisted the deal boosted its market share to 11%. NSX provided the operator with a wealth of local talent and experience.

The deal was completed in May, when NSX CEO Joao Studart stepped into the top job at the newly formed Flutter Brazil.

The agreement mirrored Flutter’s strategy across Europe and the US, combining local brand strength and the group’s financial and technology firepower and global structure. For Studart, the deal made perfect sense and marked a new chapter for the Brazil sports betting market.  

“Flutter saw in Brazil not only an opportunity for strategic expansion, but also a market with real prominence within the global sector,” Studart tells iGB. “It recognised in Betnacional a successful example of genuine connection with Brazilian fans – a popular, culturally rooted and fast-growing brand.” 

M&A specialist Christian Tirabassi, founder and senior partner of Ficom Leisure, believes Betnacional was a top-10 player in Brazil’s pre-regulated market.

Acquiring a local hero of this size meant Flutter could achieve an early-mover advantage, a key benefit in such a highly competitive market.

“The opening of other markets has shown us that whoever is early into the market has an important market share and will probably stay there or even increase that leading position,” Tirabassi says. 

Local prowess 

Stakeholders have noted just how important localisation is to succeed in Brazil, which differs culturally from its LatAm neighbours even beyond the language distinctions.

Pre-regulation, many shared the belief that international entrants could struggle in Brazil unless they properly localised through a boots-on-the-ground approach that differs vastly from their other markets. 

Studart believes Flutter Brazil combines NSX and Betnacional’s local prowess and the Flutter Edge technology stack, bringing scale and local autonomy.

“Flutter Brazil [is] an operation that remains Brazilian at its core, with local leadership and a deep understanding of the consumer,” Studart explains. “At the same time, it operates with the resources, governance and technology of a global group. 

“Through the Flutter Edge, we brought to Brazil state-of-the-art tools, a robust infrastructure, high-level compliance standards and a responsible gaming programme tailored to the country’s reality.

“At the same time, we preserved Betnacional’s essence as a local hero – a brand that represents the Brazilian spirit of football, entertainment and popular culture.”

Brazil’s launch has dominated gaming news in the last couple of years. A huge nation with a population of around 213 million, Brazil has a vibrant sporting culture, and many expected its opening to provide an entry into LatAm’s growing gambling opportunity.  

H2 Gambling Capital ranks Betano, Superbet and Bet365 as its top three players by market share, according to its revenue estimates. International entrants are clearly gaining a strong foothold in the market.

Since the launch, operator revenue figures for Brazil have varied. In Q1 most listed players reported strong numbers as early entrants, but as competition has increased, and KYC pressures remain, some have seen that growth slow slightly.  

In Q3 London-listed Entain warned that iGaming was not performing as well as it could be, due to a slow and arduous certification process, which meant few games were available in the market during the period. Flutter reported revenue of $87 million in Brazil in Q3, marking a 412% uptick on the same period in 2024, prior to regulation.  

Of course, this year the company has included NSX’s revenues within its mix, with Betnacional reportedly achieving record iGaming revenues during the quarter. Excluding NSX’s revenue, Flutter saw a 18% year-on-year revenue drop across its Betfair brand in Brazil.

Group CEO Peter Jackson said this was due to its continued recovery from bottlenecks that occurred during and following the regulatory process.

Ed Birkin, H2 Gambling Capital managing director, estimates Flutter Brazil is currently sitting in fifth position in the market with a 4.5% market share. 

“While it’s still very competitive at the moment, I would imagine Flutter’s strategy will be focused on getting the best product [out],” Birkin explains. “And then as other people start to pull back, which is going to happen at some point because the losses that I’d imagine a lot of companies are making aren’t sustainable, that’s when they will start to leverage their financial firepower, start to lean in as they call it and pick up the slack.” 

A slice of the pie 

The Flutter Edge platform is the core function powering the operator’s “local heroes” strategy, through which it has acquired numerous leading brands in various markets and integrated them into the central platform.

Analysts are bullish on the power of the Edge platform. In December 2024 Macquarie senior gaming analyst Chad Beynon estimated the platform would help Flutter gain up to 25% market share in Brazil by 2030.  

In his December note Beynon said the platform had proven to affect market share gains in new markets quickly. He also said further M&A was on the cards for Flutter in LatAm.  

“Flutter Edge brings to Brazil state-of-the-art resources in infrastructure, data intelligence, innovation and compliance – ensuring that our brands operate with robustness, speed and security,” Studart says. “At the same time, we have the freedom to adapt products, experiences and strategies to local realities, delivering tailored solutions that truly connect with our audience.  

“It is precisely this combination of global structure and local leadership that positions Flutter Brazil among the most prepared companies to lead the sector – with consistency, credibility and a positive impact on the entire ecosystem.” 

Birkin expects Flutter will invest heavily in marketing further down the line, as competition slows and others pull back from the market. This will enable it to capitalise on waning competition, a strategy that worked for Flutter in stunning fashion in the US. 

“My view is the best strategy would be to focus on integrating their very strong technology and know-how into the Betnacional business to improve the product,” Birkin says. “Once they’ve got the product where they want it, then to spend their money on marketing as others pull back on it. 

“What you’d notice in the US is that as people started pulling back on bonusing and marketing, as lots of operators were loss-making, they pull back, then FanDuel starts to lean in and kind of use their scale to take customers.”

Birkin notes Bet365 employed a similar strategy in the US, where the operator avoided spending huge amounts to gain brand awareness. Instead, it operated efficiently in the background, waiting to make market share gains when others pulled back. 

The sheer scale of Flutter Brazil compared to smaller operators is demonstrated by its massive local workforce of over 500. The business operates multiple functions locally, including technology, marketing and customer services. The company also recently changed its corporate structure, with a raft of new C-level appointments to work alongside Studart. 

Flutter Brazil has drawn from other sectors to build out its executive team, while also ensuring a combination of international expertise with a “deep cultural connection” to Brazil.

“The IT team is a great example of this integration, with professionals from Flutter’s international structure working remotely in collaboration with the local team, expanding our capacity for innovation and integration,” Studart adds. 

“The new executives bring extensive experience in their fields, foster local reach and lead highly qualified teams that are already recognised as industry benchmarks, always operating with responsibility and a long-term vision. With Betnacional as part of its brand ecosystem, the goal is to sustain an operation centred on Brazilian talent and local insight.” 

Further M&A 

Tirabassi shares Benyon’s view that Flutter will make other acquisitions in LatAm, in part due to their strong history of successful M&A across its global portfolio and with the company’s sights set on reaching the summit of the regulated Brazil sector.

“Their objective, clearly, is to become number one, and that’s why I think they’re going to make other acquisitions,” Tirabassi says. “Large ones that would allow them to be quickly number one or number two, so something of the same size or similar size. I think that Flutter is actively looking for an [M&A] target. I know that for sure.” 

But Tirabassi knows well that this process isn’t easy.

“We believe the issue [in Brazil] is finding a target which is ready to transact,” Tirabassi adds. “Being on the sell side, the majority of the work we do is prepare the target, because they’re not ready. We understand the priority is business. But then again, very big business, very small corporate. So that’s why we’re trying to kind of help them to realign the size of the corporate together with the size of the business.  

“They need at least a couple of quarters to organise the company. So, we expect that in 2026 you will see some additional M&A in the market, because targets will be in a better position than now to engage in a transaction with a company like Flutter.” 

With Birkin currently ranking Flutter Brazil and its Betnacional and Betfair brands at number five in the market, he has reservations over whether they can scramble to the top spot. H2’s numbers give Betano, Superbet and Bet365 a combined 47% of the market, and Birkin feels that could be a tough trio to crack for Flutter. 

“They want to be in a podium position,” Birkin explains. “On our numbers that would involve them overtaking Sportingbet and Superbet. Is that possible? Yes. Do I see them being able to capture in a year, five years, Betano and Bet365? That would involve a significant change in market structure.” 

Tirabassi, however, is a little more confident and believes in the value of the NSX acquisition. Add to that Flutter’s capability to conduct more M&A, and Flutter could certainly buy its way to the top.  

“I think the difference is that culturally, the Flutter group has been extremely capable in M&A, they have a very strong team and also the guys that come after the deal. Betano has basically no experience in M&A or very little so it’s not really their culture.” 

Ultimately, Studart is confident Flutter Brazil will continue to make strides in the new and exciting Brazil market.

“The Brazilian market is going through a phase of consolidation that brings great opportunities for operators who invest with seriousness, a consumer-first mindset and a commitment to best practices,” Studart concludes.  

“The progress of regulation has laid the foundation for a more balanced ecosystem – one that combines innovation with responsibility. Flutter Brazil sees this new scenario as fertile ground for sustainable growth. By combining global scale with a deep understanding of local specificities, we aim to actively contribute to the sector’s maturation – offering relevant and safe experiences to users while reinforcing the pillars of trust, transparency and Brazilian culture that underpin our brands.” 

From 2 December, residents in the following countries will be unable to place bets with William Hill; Angola, Bolivia, Burkina Faso, Cameroon, Kenya, Mozambique, Nepal, Nicaragua, Nigeria, Republic of Congo, Democratic Republic of Congo, Somalia, Vietnam.

As explained on the William Hill website, any open bets will be settled as normal up to 2 December. Any bets due to be settled after that will be voided and refunded to accounts.

Customers will be able to log in to their accounts until 5 January to withdraw their funds.

From 6 January onwards, players’ login details will no longer work. To withdraw their remaining funds, they will have to contact the customer service team.

In 2022, Evoke licensed the 888 brand to the Africa-facing joint venture 888Africa for regulated online markets in the continent. Evoke retains a stake in the venture.

Ex-Paddy Power head of competitive intelligence Christopher Coyne serves as CEO of 888Africa, while former William Hill online manager director Andrew Lee holds the position of chief product officer.

Threat of retail closures in the UK

The withdrawal from these 13 markets comes after Evoke warned it could close up to 200 William Hill retail shops in the UK should the government increase gambling tax in the November budget, which is due next Wednesday.

Evoke is reportedly mulling the closure of up to 15% of its UK William Hill stores, with 1,500 jobs potentially being lost.

An Evoke spokesperson said: “As part of our ongoing planning, we are assessing the potential impact of different overall tax scenarios on our UK operations. This includes the difficult but necessary consideration for shop closures.

“We are mindful of potential tax increases in the forthcoming budget which would impact investment in the UK and drive more customers to the black market.”

“Yolo is entering the UAE market with a complete eco system offering, live studio experiences, slots and aggregation services,” Falcon tells iGB. “Thus, providing a fully connected entertainment platform that can provide quality, safety and innovation to players.

“This all-in approach builds credibility and trust, which effectively gives us a lot of opportunities as well as a head start when compared to our competitors.”

First-mover advantage for Yolo in the UAE

Yolo is aiming to “press the start button” in the UAE as early as this month, with its live studio in Abu Dhabi very close to completion, according to Falzon. “As soon as they’re ready, we’re ready to go,” Falzon declares.

Falzon believes Yolo’s first-mover advantage in the UAE is imperative to success, especially in a market that could prove to be hugely lucrative.

“Speed to market is key,” Falzon adds. “It provides the opportunity to have a local footprint and thus raising barriers to entry for competitors. This could be quite rewarding both in terms of revenue but also valuation.”

In early October, Yolo Group announced it had secured two gaming-related vendor licences in the UAE for its Hub88 Holdings and Live Online Gaming Services subsidiaries.

The licences enable Yolo to supply iGaming content to the UAE’s regulated market. As per the the UAE’s gambling regulations, one online licence will awarded per emirate.

The news of the approved licences followed Yolo’s announcement that it had decided to pivot to fully regulated markets, leaving its grey past behind.

Yolo CEO Tim Heath described the move into the UAE as a “statement of intent” and Falzon, who was appointed CEO of Yolo’s B2B brands in July, says the company’s mentality should prove a successful strategy in the market.

UAE a key market for Yolo’s future

During Falzon’s time at the company she says securing the UAE licences has been one of her proudest achievements so far.

“Beyond the commercial opportunity it represents, it fundamentally changes Yolo’s positioning in the market,” Falzon says. “The licence has elevated our credibility and opened new conversations that weren’t possible before. It’s a strong foundation for the next phase of our growth.”

It’s a big opportunity for Yolo and its B2B segment, especially considering some other more mature regulated markets are already dominated by monopolies or big operators.

The UAE, meanwhile, is described by Falzon as a “forward-thinking, well-regulated market”, which aligns with Yolo’s company values. “Yolo Group believes it has the opportunity to innovate responsibility in a high growth region,” Falzon explains.

“In the UAE, there are a lot of untapped opportunities which makes it very exciting as we don’t know where this will take us, both in terms of product offering but also from a strategical point of view.”

Falzon believes Yolo’s ability to differentiate itself in the UAE market will hinge on two strategic levers – product and technology.

“One of our core initiatives is to treat the UAE as a live lab trying to test & identify what players value most,” Falzon says. “As a content aggregator our key focus is to understand the market & identify different product offerings that appeal to the players in this region.

“The other lever is technology. Yolo can differentiate through a best-in-class tech stack which is trusted by its suppliers and customers. The technology allows for rapid iteration and deployments. Moreover, it provides other tools such as analytics, automated promotional setups as well AI-driven personalisation.”

Localisation as a safety net

One interesting finding so far has been the UAE’s affinity for camel racing. Falzon jokes: “I need to find a studio that offers camel racing first!” But while she feels localisation is important, it goes beyond simply making Yolo “fit in”.

“It acts as a safety net, reducing cultural, regulatory and engagement risk,” she says. “However, I still believe that long term success depends on how quickly Yolo ‘integrates’ into the market.

“An additional factor which is very important in the UAE is the religious and social alignment that is unique when compared to other markets.”

A transparent licensing process in the UAE

The licensing process in the UAE as tough but collaborative, she says.

“Overall, the process has been thorough, transparent and internationally benchmarked, but it’s still evolving. We had several briefing sessions, guidance calls and documents reviews whereby GCGRA offered a level of engagement that was more of a collaboration or ‘partnering’ rather than punitive,” she concludes.

“What is unique is that the UAE’s approach is to encourage innovation and co-operation while still asserting control.”

After its authorisation to operate in the newly regulated Brazil online gambling market was formalised in July, Caixa set a November date for the launch of its betting offering.

However, the plans received political criticism, as Senator Damaras Alves launched a scathing attack on Caixa in October, describing its plans as a “contradictory, dangerous and profoundly irresponsible move”.

This attracted the ire of Brazil’s president, Luiz Inácio Lula da Silva, who then met with Caixa President Carlos Vieira to discuss the matter.

According to local news outlet O Globo, Caixa has now decided to delay its planned November launch, with no new date given.

Vieira previously estimated Caixa’s betting business would achieve revenues of between BRL2 billion (£371.8 million) and BRL2.5 billion in 2026, in its first full year of operation.

The licence covers three brands: BetCaixa, Megabet and Xbet Caixa. The company did not respond to iGB’s request for comment on the delay.

What does this mean for Caixa and the market?

Caixa’s plans to launch betting also raised questions around competition, with concerns over whether a state-owned entity should be involved in the market considering the potential for government influence.

As an example, Vieira had previously described a potential rise in the gambling tax rate from 12% to 18% as “reasonable”, going against the opinions of the majority of the regulated sector.

Fabio Ferreira Kujawski, partner at Brazilian law firm Matthos Filho, expects this comment stems from Caixa’s difficult position, in which it “cannot publicly oppose what the federal government is saying”.

Atucha has warned Caixa’s delayed launch highlights various “contradictions” within Brazil’s regulatory landscape, with the government seemingly halting Caixa’s entrance into what is now a legal activity.

“With rising taxes, political debate and public backlash, the move risks undermining the regulated market itself,” the LatAm iGaming expert tells iGB.

“Instead of fostering a sustainable, competitive environment, these actions may end up strengthening the position of unlicensed, offshore operators, precisely the opposite of what regulation is meant to achieve.”

Questions over Caixa’s potential

Vieira has voiced his hopes Caixa will become a “major player” in the regulated Brazil betting market.

Caixa holds a legacy federal lottery monopoly, and its status as a state-owned bank means it should have strong brand recognition as a trusted entity in Brazil.

However, H2 Gambling Capital Managing Director Ed Birkin doesn’t expect Caixa to be at the very top of the market, despite its existing lottery player base.

“I do not believe that they will be one of the number one operators,” Birkin told iGB earlier this month. “Lotteries have never done particularly well against commercial operators in the online betting and iGaming market.”

Birkin describes Vieira’s estimate of 2026 revenues between BRL2 billion and BRL2.5 billion as “highly ambitious”, with the upper band of that prediction placing Caixa at a market share of 7.5%, according to H2 data.

“It would be completely unheard of for a lottery operator to get to a podium position, or even a top five position in a commercial market,” Birkin explained.

However, Caixa may not need to invest as heavily in marketing as other operators entering the Brazilian market, since it can leverage its established lottery brand and possibly its existing player database.

This advantage, Birkin suggests, is one reason Caixa is likely to run a profitable betting operation.

“In terms of the financials, they can be profitable with a much lower market share than other people in the market,” Birkin said.

“They already have all the land-based network there, they already do have online operations. So it financially makes sense for them. It should very much be additive to their earnings. The financials are more compelling than they would be for commercial operators.”

At the heart of the debate is Morten Rønde, director of the Danish trade body Spillebranchen and managing partner at Nordic Legal. Speaking to iGB on the immediate impact of the changes, Rønde did not mince his words.  

“I am shell shocked to say the least,” he says, capturing the uncertainty and frustration spreading through the sector.  

For more than a decade Denmark has been viewed as a model for balanced gambling regulation – strict enough to protect consumers yet flexible enough to sustain a competitive licensed market. That balance, according to Rønde, has been the key to its success.  

Regulator’s relationship with the sector

In August, Denmark achieved gambling revenue of DKK 714 million – both a year-on-year and month-on-month increase. Sports betting and iGaming markets posted double-digit growth compared to the same month last year. 

“I think the key is that Denmark has struck a balance where you have strict consumer protection and kind of strict, but still pragmatic, rules that are possible to comply with for the operators,” Rønde says. The model, he added, maintained a structure where the regulator has been working “in a very open-minded way”. 

This dialogue-based relationship between the regulator and licensees – praised in a recent comparative report between Sweden and Denmark, ordered by the Swedish trade body BOS – has long been a cornerstone of Denmark’s success.  

Rønde insists the Danish Gambling Authority operates as “the glue in the system”, maintaining trust through direct, transparent communication. “Each operator has two contact persons assigned,” he adds, “a legal contact and a technical contact. So that creates a more personal approach in dialogue with the regulator.” 

A turning point for Denmark’s gambling model 

But that finely tuned balance has come under strain. The government’s new gambling agreement marks a decisive shift. Minister for Taxation Ane Halsboe-Jørgensen of the Social Democrats said it marked the beginning of a reckoning with a gambling industry “that has, for far too long, taken up too much space”.  

She said the new measures were to prevent entertainment “from turning into addiction. It requires both responsible operators, stronger regulations and a sustained political effort.” 

The government claimed nearly 500,000 Danish adults experienced some extent of gambling problem in 2021 – a figure that has doubled since 2016 – with almost 30,000 experiencing serious gambling problems. Twenty-five thousand Danish children and young people have experienced some degree of gambling harm, according to government data. 

“I’m really pleased that we’ve reached a broad agreement that, above all, ensures we can now protect our children and young people much better from advertising for gaming and gambling,” Jan E Jørgensen of the Liberal Party, Venstre, said. 

Denmark gambling addiction debate intensified

As public debate around gambling addiction intensifies in Denmark – fuelled by high-profile media stories about widespread gambling addiction among younger men and political pressure – Rønde argues that the measures being implemented are not evidence-based. 

“There’s been a rise in gambling addiction,” he acknowledges, “but based on a study that is now three years old and had quite inconclusive findings.” The government, he said, is acting largely because “people are just sick of all the gambling adverts, which we agree with – there are too many of them. They are overexposed in the market.” 

Rønde is certain the arguments put forward in the political decision-making process were not supported by meaningful evidence. “In all the proposals that are made, there’s no link to any evidence that this is something that will help gambling addiction. And I am pretty sure that it won’t,” he says. 

In his view, the only sustainable path forward is to manage the balance between consumer protection and an attractive regulated offer. “Advertising in Danish media is the only advantage that a licensed operator has. Because otherwise it’s just restrictions and taxation. When you are [no longer] allowed to advertise, you lose that competitive advantage,” Rønde explains.  

If those advantages continue to erode, he warns, “there’s nothing left other than the branding you can put on your website that says you’re regulated by the Danish authorities.” Outlining the broader risks, he insists restricting the legal market too heavily will tip the balance. 

“And it becomes unviable for the operators, but also for the consumers in Denmark. That leads to leakage in the market and consumers going to the black market. And again, in turn, it would lead to more addiction and more gamblers who get in trouble.” 

Total ad ban threat and the risk of market leakage 

The new rules, agreed to by a broad coalition of political parties, will prohibit betting advertising during live sports broadcasts, restrict outdoor advertising within 200 metres of schools and impose new limitations on bonuses. This could indicate the end of outdoor advertising in Denmark’s major cities.  

Still, Rønde warns the outcome could have been worse: “It looked worse at one point; a complete advert ban was discussed, but it’s still not great where we’ve landed.” The political appetite for stricter measures remains strong. “There are several political parties in Denmark who are in favour of a full advertisement ban,” he notes.  

“What happens if you do impose a ban? Those countries who have tried like Italy and now the Netherlands have seen an explosion in illegal gambling offerings.” He points out the Italian government is now rolling back part of its advertising ban because it was creating too many illegal gambling offers for Italian players. 

Denmark could follow the same path – undermining its once-enviable rate of channelisation. “It’s impossible to block operators from the market,” he says of illegal offerings. Black market presence in the market is heightened by a lack of popular products like crash games and virtual betting, as well as various casino games that are banned.  

H2 Gambling Capital data shows Denmark’s channelisation rate has fallen to 72%, the same as Sweden. It was historically among the highest in Europe, sitting at around 90% in 2022. Rønde attributes much of the decline to player interest in the aforementioned banned verticals.  

Mounting economic consequences 

In terms of economic consequences for the sector, Rønde can’t put a figure on it, but insists the sum of the 20 or more new measures will have a big impact. The trade body is considering what these changes will mean for the industry. Most concerning is the likelihood that operators will exit the market in response. “It will severely impact the market and the whole business of being in Denmark,” he laments.  

TV2, the biggest commercial TV channel in Denmark, which holds the licence to show matches in the Danish football Superliga, said it expects revenue to drop due to the gambling ad ban – potentially up to €12 million per year. “It should be no secret that the regulation comes with significant financial consequences,” TV2’s commercial director, Stig Møller Christensen, said of the impact. Previous government calculations pointed towards a loss in tax revenue in the hundreds of millions in Danish Kroner for the state.  

Denmark was the industry’s ‘beacon of light’ 

In neighbouring Sweden, gambling trade body BOS has been watching Denmark’s developments closely. Gustaf Hoffstedt, BOS’ secretary general, voiced concerns that the new Danish direction could undermine a system long seen as a model for Europe. 

“It concerns me,” he says, “because Denmark, together with the United Kingdom, have been the two beacons of light in Europe when it comes to safeguarding the licensing market.” According to Hoffstedt, H2’s revised estimate of 72% channelisation for Denmark is “totally dissatisfactory”.  

Like Rønde, he warns against measures that risk driving consumers toward unlicensed gambling: “Denmark should pay more attention to how to create an attractive legal licensed market than to implement measures that will scare away more consumers. After all, that’s the number one consumer protection measure that you can take.” 

Hoffstedt cautions that Denmark’s reputation as a regulatory role model is now in question. “Denmark has at least up to this moment been possibly the best example in Europe,” he notes. “Yes, I’m afraid it will change – that Denmark is also choosing a path that in the long run may lead to them crawling in the mud, just as so many other European jurisdictions.” 

The message is clear: tightening regulations without maintaining a viable, competitive legal market risks undoing years of progress in consumer protection and channelisation.

As Denmark’s gambling restrictions move toward implementation in January 2027, time will tell whether one of Europe’s most admired regulatory systems can preserve its balance – or whether it will become, as Rønde fears, another example of good intentions gone awry. 

After months of breakneck pace and a flurry of news from applicants, the process has largely ground to a standstill, at least in public view. Bidders have made their final offers and the many hours of public input from previous rounds have been replaced by closed-door meetings of the GFLB.

The GFLB’s first meeting 8 October was just 15 minutes and was largely organisational. But the rest have run for multiple hours, and although the virtual meetings are open to the public, the audio and video are disabled when the board is in session. Only the opening and closing of the meetings are viewable.

None of the five board members has experience in or connection to gaming, to help ensure neutrality. Four of the five were appointed just this year, the most recent on 30 September.

The board is working toward a 1 December deadline to submit licensure recommendations to the New York State Gaming Commission (NYSGC). So far, a weekly cadence has been established for its meetings. That would indicate that there is a maximum of five more meeting opportunities before the deadline, including Wednesday.

What criteria is NYC casino board considering?

Once its recommendations are submitted, the commission will have final say on the licensing outcome. Regulators could issue all three, less than three or award some at a later date. When the upstate New York casino process was conducted in 2014-15, four casinos were recommended by the GFLB but only three were licensed initially. The fourth licence, which went to Tioga Downs Casino Resort, was issued a year later.

Following a surprise exit by MGM Resorts earlier this month, three applicants remain for the three downstate licences:

• Bally’s Bronx
• Metropolitan Park
• Resorts World NYC

The bidders submitted their final, amended applications to the GFLB 14 October. Each project is being reviewed based on four weighted criteria:

• Economic activity and business development (70%)
• Local impact siting (10%)
• Workforce enhancement (10%)
• Diversity framework (10%)

Bally’s busy across the country

All three bidders have been active as the process unfolds. Bally’s in particular is stretched coast to coast, with ongoing projects in Chicago and Las Vegas in addition to its $4 billion Bronx proposal.

Its Chicago project has seen multiple roadblocks, including recent pushback from lenders financing the project. Bally’s is obligated to open the $1.7 billion casino by 9 September 2026 under its host city agreement but is currently projecting a fourth-quarter opening. The company did not respond to a request for clarification on this point.

On the Las Vegas Strip, Bally’s unveiled new renderings and broad construction timelines this month for its 26-acre plot next to the under-construction A’s MLB stadium. Preliminary plans include four construction phases that would begin as early as April 2026 and finish by March 2029.

The spacing is somewhat condensed, as Phase 1 is slated to open alongside the stadium in spring 2028. That timeline would leave just one year to complete the remaining amenities. Phase 1 only includes infrastructure, dining and retail spaces. The casino, two hotel towers totalling 3,000 rooms, and a theatre would come in Phases 2-4.

Bally’s has faced immense scrutiny for its highly leveraged business model and consistent debt manoeuvering. Much of its funding has come through Gaming and Leisure Properties, which has not ruled out the possibility of investing in a New York project. Bally’s has said its reverse-merger with Intralot reset its balance sheet with  “more than $1 billion of cash and available credit facilities”.

Unlike other New York casino bidders, however, Bally’s would owe an additional $115 million to the Trump Organization if awarded a licence. That controversial kicker was included in the sale agreement from 2023.

Resorts World, Hard Rock all-in as well

Resorts World is also doing some shuffling as it angles for a New York casino licence. Parent company Genting Berhad is attempting to buy out its Genting Malaysia subsidiary for $1.6 billion, to help consolidate its capital structure. A previously announced sale of its Resorts World Catskills property to Sullivan County in upstate New York is on hold until the merger is completed.

With regard to the downstate process, Resorts World remains the most committed bidder in the field. It is proposing the highest licence fee ($600 million), the highest tax rate (56% for slots, 30% for tables) and the fastest speed to market (July 2026). The project received unanimous approval from both the public and its appointed community board. In addition to $5.5 billion in capital investment, Resorts World is pledging $2 billion worth of community benefits.

Metropolitan Park’s casino partner, Hard Rock International, has been the quietest of the three finalists by comparison, though it has several ongoing projects of its own, including a Las Vegas Strip resort. Its finances are perhaps most secure for a New York casino, given the project’s connection to Steve Cohen. Cohen is the owner of the New York Mets and is listed as the 101st-richest man in the world by Forbes.

The company made headlines last week for its donation to a $300 million ballroom project at the White House. No comment was given and no amount was disclosed, but Hard Rock Chairman Jim Allen was previously an executive for the Trump Organization.

MTA counting on a lot of New York casino money

There are two factors at the state level that might complicate the licensing process. The first is the fact that New York’s Metropolitan Transportation Authority (MTA) has long earmarked licence and tax revenue for future budgets. Its projections indicate an expectation that all three licences will be awarded, and quickly.

According to an MTA financial outlook from the state published this month, the agency is depending on “$500 million annually during 2026 and 2027, $600 million in 2028 and $200 million in 2029” from casino licensing and tax revenue. That totals $1.8 billion, and the exact figure that will come from licence fees is still unknown.

Resorts World and Hard Rock are pitching a combined $1.1 billion in licence fees, while Bally’s did not indicate a fee preference. The $500 million minimum indicates the total would be at least $1.6 billion, but there is no guarantee that all three bidders will remain in consideration following several withdrawals by other major gaming companies. Time is also of the essence for the GFLB and the NYSGC to make their decisions by year’s end.

“Any delay in the approval would lead to a delay in the MTA receiving license fee revenue and then recurring gaming tax revenue — opening potential budget gaps,” the report said.

New York state already faces a $34 billion cumulative budget gap over the next three fiscal years.

Kalshi lawsuit now top-of-mind

Adding to the New York casino intrigue is a new lawsuit between the state and the prediction market Kalshi. The NYSGC last week became the eighth state regulator to send a cease-to-desist letter to the controversial platform, and Kalshi sued in response. The company is now involved in lawsuits with a total of six states: New York, Massachusetts, Ohio, Nevada, Maryland and New Jersey.

Tribal groups in California and Wisconsin have also filed suit, and several other states have sent warnings or notices to sports betting licensees.

New York has substantial turf to defend as prediction markets expand in scope and prevalence. The Empire State boasts the biggest online sports betting market by revenue and tax generation in the US. Its running total of both retail and online handle is nearing $75 billion, with almost $3.5 billion in tax revenue.

Sports event contracts on prediction markets, including parlay-type offerings, could affect New York more than any other wagering market based on revenue and taxes. This significance has fast-tracked these lawsuits in other markets, meaning there is no time to waste for state officials in the wake of the licensing saga. It remains to be seen what kind of strain this added pressure might have on the downstate process.

At stake is whether Estonia – already one of the world’s most digitised economies – can convert its technological advantage and forward-thinking tax policies into a credible and sustainable hub for online gaming. 

“Estonia is indeed moving toward positioning itself as a more attractive and competitive jurisdiction for gambling operators,” says Margus Reiland, partner and head of regulation, gambling and tax at Tallinn-based Law Firm Widen. 

Reiland explains that Estonia’s new gambling bill currently being debated in Parliament represents the most significant update to Estonia’s gambling framework in more than 15 years.  

New measures being considered

Among its key measures are: 

• Updated definitions of remote and additional gambling. 

• Broader scope for licensed operators to offer support services such as IT and accounting within the same group. 

• Mandatory audits of annual financial reports. 

• Clearer anti-money laundering data requirements for licence applications. 

• The Tax and Customs Board becoming the single point of contact for licences. 

• Tighter rules on gambling venues located near youth facilities. 

• Tenfold increases in fines and penalties. 

• Perhaps most importantly, a reduction in the remote gambling tax rate. 

According to the bill’s explanatory memorandum, its aim is to “modernise rules that have remained largely unchanged for over 15 years, strengthen supervision and improve the reliability and transparency of the gambling sector”. 

“In other words,” Reiland adds, “the reforms aim to encourage licensed operators to base their operations in Estonia instead of elsewhere in the world.”  

The timeline for reforms remains uncertain but Reiland says the bill is currently under parliamentary discussion and has not yet been adopted. “That being said, if the government coalition remains stable and continues to support the proposal, it is likely that the amendments will eventually pass,” he adds.  

Estonia new gambling bill’s tax reform 

One of the headline changes is the proposed lowering of Estonia’s gambling tax. For Reiland, this sends a clear strategic signal. The proposed bill by MPs from the Eesti 200 and the Reform Party would gradually reduce the remote gambling tax rate by 0.5 percentage points per year, aiming to reach 4% by around 2029.  

“From a regulatory standpoint, the intent appears to be to strengthen Estonia’s position in the gambling sector,” Reiland says. “And that intent is without a doubt positive.” 

Operators have largely welcomed the move, viewing it as recognition that “their long-standing concerns and challenges are being acknowledged by policymakers,” says Reiland. Although he also points out that the wider political debate “has been more divided”.  

The main question seems to be whether lowering the gambling tax truly benefits the wider economy or primarily favours the operators. 

The most prominent opponents are members of the centre-left opposition party Keskerakond The underlining sentiment is that the proposed gambling regulation is a lobby project, with no real positive effect. Industry insiders, however, are cheering the direction of travel.  

In an October blog post, Tim Heath, founder of crypto-driven gaming giant Yolo Group, praised Estonia’s new gambling bill, noting: “Only a year ago, the plan was to raise taxes. Proposing a different course took serious courage, and it shows the Estonian government understands how our industry really works.” 

Yolo has been headquartered in Estonia for years. Lower tax friction, Heath argued, would attract more operators, which in turn could bring “more investment, more jobs and, ultimately, more tax revenue. By going down this path, Estonia is choosing to grow its share of the pie rather than fight over the crumbs.” 

Digital credibility as a competitive edge 

Reiland believes Estonia’s strengths go beyond gambling taxation. “Obtaining and maintaining a licence in Estonia is already relatively fast, cost-efficient and administratively straightforward,” he explains. 

On top of that, “Estonia has strong IT infrastructure, robust cyber security standards and a well-developed anti-money-laundering framework. This raises the regulatory credibility to a high level.” 

In his view: “Estonia has always been a solid and effective choice for getting a licence – it just hasn’t received the same level of international attention as some other jurisdictions.” That could soon change. Estonia’s X-Road data-exchange system – a secure interoperability platform connecting public and private databases – underpins much of the nation’s digital governance and has become a unique asset for regulators. 

“It’s not just used in gambling supervision,” Reiland notes. “It’s also in data exchange across government agencies, health service providers and many private sector stakeholders. I wouldn’t go as far as to say it is a branding exercise but a widely used system that does actually support regulatory efficiency.” 

Yolo Group’s Heath agrees that this technological backbone gives Estonia an advantage few others can match. The market’s use of crypto as a payment method for gambling is a huge benefit to the group. “Estonia’s embrace of crypto in this new regulation helps cement its reputation as the world’s most digital country,” he wrote. “It encourages operator transparency and turns it into a national advantage.” 

Crypto and compliance in the EU  

Unlike many European jurisdictions tightening their stance on digital assets, Estonia is keeping cryptocurrency as an approved payment method – albeit under strict AML and KYC rules. 

“The Estonian approach allows crypto as a payment method for Estonian licensed operators,” Reiland explains. But he cautions that since MiCA – the European Union’s comprehensive legal framework for crypto-assets, designed to bring consistency, consumer protection and financial stability to the crypto sector – it is still a novel regulation and national practices differ.  

“It should be analysed under other target market jurisdictions whether all necessary requirements have been met,” says Reiland. In practice, he says, “the key question isn’t whether to use crypto but whether the operators know how to apply the highest standards of AML, KYC, enhanced due diligence etc under self-regulation principles”. 

In his blog post Heath echoed this pragmatism, arguing that Estonia’s openness “aligns with MiCA and EU best practice”. The integration of blockchain analytics tools such as Chainalysis, he suggests, allows for “real-time tracing and risk-scoring of crypto transactions,” thus enhancing transparency rather than undermining it. 

Crypto casinos, which are largely unlicensed or illegal across most European markets, are gaining rapid popularity among younger players. Last month Yolo announced it would be leaning entirely into regulated markets, and in another blog post Heath said he believed crypto was becoming “mainstream”.

Predictability and digital expertise 

Some in the industry remain cautious of Estonia’s new gambling bill and point to last year’s short-lived proposal to raise gambling taxes as a sign of political volatility. But Reiland dismisses this concern. 

“Estonia has had a very stable regulatory framework for a long time,” he insists. “The only real changes have come in the past couple of years, largely because different interests were competing over how to modernise the system. Right now if the bill is passed, the expectation is that the framework will remain generally stable for many years and the likelihood of a reversed course is very low in my eyes.” 

That sense of predictability – combined with Estonia’s digital expertise – could be decisive in drawing operators who are increasingly weary of the administrative burdens in older licensing hubs. The draft bill also introduces modest reforms to responsible-gambling measures, including expansion of the Estonia´s self-exclusion register, HAMPI. 

“There were different ideas floating on the self-exclusion list amendments but right now the latest parliamentary bill seems to be quite conservative,” Reiland notes. “It is my view still that probably the HAMPI regulation will be overhauled pretty soon since the existing system has been in place for quite some time.” 

Heath, meanwhile, highlighted this as one of the most important improvements, arguing that the reforms “lay the foundation for a safer, fairer environment – one where players can simply enjoy the thrill of the game, confident that they’re spinning in a trusted, regulated space”. 

Estonia’s new gambling bill a blueprint for Europe? 

If Estonia succeeds, could its model influence EU-wide discussions on digital gambling regulation? Reiland is cautiously optimistic. “Hopefully, if Estonia’s system proves effective, it could serve as a model for EU discussions rather than an outlier,” he says.  

“The underlying logic is not to prohibit or overregulate, but to use IT systems and secure information exchange to support legitimate business while maintaining continuous oversight.” 

Marriage of innovation and integrity could pay off 

For now, Estonia’s new gambling bill’s parliamentary journey continues. “It might be expected that after this bill has been adopted, the Ministry of Finance might also present a bill covering the remaining issues,” Reiland says – mentioning future clarification on crypto and the HAMPI system as likely priorities. “No seismic changes are to be expected.” 

As Heath of Yolo Group put it: “What Estonia is proposing right now could become a blueprint for how small, smart countries lead global industries – by marrying innovation with integrity.” And with legal experts like Reiland pointing to stability, efficiency and credibility as the cornerstones of the new framework, Estonia’s gamble on innovation might just pay off. 

Speaking to analysts during the group’s Q3 earnings call on Thursday, Evolution CEO Martin Carlesund hinted at the December deadline, although he said the Gambling Commission had not specified a timeline for the review.  

Evolution Gambling Commission review stems from supplier crackdown

The GC commenced its review in December, after discovering the supplier’s games were being provided to unlicensed operators in the country. The case indicated a wider crackdown on supplier compliance in the UK, as the commission stepped up enforcement against the growing black market.  

Gambling Commission CEO Andrew Rhodes had previously warned operators to step up their monitoring of business relationships, to ensure partners were not facilitating illegal gambling. 

“When it comes to the UK Gambling Commission timeline, unfortunately I don’t have any other information. It’s in the hands of the regulator and our estimation is that it will be by the end of this year,” Carlesund told analysts.  

Q3 revenue dips on troubles in Asia  

In what has been a pivotal week for the group, as it unveiled that Playtech had commissioned a secret investigation against it, Evolution reported its net revenue for Q3 had decreased by 2.4% to €507.1 million. 

Carlesund blamed Asia for its continued impact on the group’s earnings, as it continued to fight targeted cyber-attacks during the period.  

He also looked to the Philippines iGaming market, noting it had been “very volatile” during its early stages.  

“Other markets such as India, which in our view show signs of moving towards regulation, create a higher level of uncertainty than before,” he said in a statement.  

However, the group reported quarter-on-quarter growth in Europe after a couple of challenging quarters during which the market had been impacted by ring-fencing actions to prevent Evolution’s games from being used in grey markets.  

Europe revenue hit €182.2 million in Q3, up from €180.2 million in Q2. But in a year-on-year comparison, Europe was down 6.5%. The ring-fencing exercise commenced after the commission’s review was launched. The supplier initiated the project to ensure it was meeting compliance requirements across Europe and not contributing to the growing back market.  

EBITDA for the period was down 18.9% to €337 million, while EBITDA margin hit 66.4%, down from 71.7% last year. Profit landed at €252.3 million, down 23.2%.  

With the ambiguity around how many prefectures will actually apply – especially considering the twists seen in Yokohama – other prefectures may make a late bid to snap up a licence. Or only two of three could be awarded.

Toru Mihara, chair of the National Council on Gaming Legislation, Ayako Nakayama, director at the Japan IR Association and Brendan Bussmann, discuss the remaining challenges for the development of the IR industry and make predictions on what the market will look like once the process is complete.

The session was presented to the committee by the National Gambling Board (NGB) and the National Lotteries Commission (NLC).

Overall turnover across all verticals stood at ZAR1.5 trillion. “Obviously this figure includes all of the [gambling] sectors, and also across the PLAs,” NGB acting Chairman Lungile Dukwana told members.

PLAs are Provincial Licensing Authorities that have the power to grant land-based and online licenses within their region. There are nine in South Africa today.

GGR from online betting was up 60% on the previous year, the data showed. And taxes and levies collected by regulatory bodies amounted to ZAR5.8 billion ($335 million), with the betting sector accounting for the greatest share of these taxes (59%) at ZAR3.4 billion.

This was followed by the casino industry (30%), which generated ZAR1.7 billion. Limited Payout Machines (LPM) (9% overall) generated ZAR525 million and the bingo industry accounted for 2%.

Provincially, the Western Cape was the major driver in terms of gambling revenue generation (30%), with Mpumalanga coming in second and Gauteng third. Data showed the gambling industry directly employed 33,169 people during the year.

“The [data] gives an indication of the prominence around the area of online betting specifically, which obviously has an effect on the physical casinos,” said Dukwana.

Dukwana was appointed to head the board following the resignation of former head Caroline Kongwa in July, after a forensic audit flagged “irregular spending” within the department, related to a number of bonuses she had received.

Lottery finances in South Africa

Moving on to key financial movements from the Lottery Commission between 2024 and 2025, ticket sales rose from ZAR1.8 billion to ZAR1.96 billion thanks to an increase in the number of major jackpots, digital penetration and marketing.

Operational costs increased from ZAR533 million to ZAR651 million, while grant expenses also increased from ZAR545 million to ZAR958 million. Irregular expenditures noticeably decreased from ZAR44.9 million to ZAR6.8 million.

Commissioner for the NLC Jodi Scholtz outlined the board’s activities across South Africa’s nine provinces, which included erecting new offices in each, as well as morphing into a more purpose-driven organisation.

Impact of the black market on South Africa

During the session, a number of MPs flagged how a surge in mobile phone usage was driving up illegal gambling activity among players.

The regulators told the committee that most of the offshore operators providing unlicensed gambling in the market appeared to be licensed or based in Curaçao.

Dukwana’s presentation also outlined the NGB’s upcoming strategy, which he said would involve the regulator assessing the performance of PLAs “to ensure the national norms and standards established by the NGA are applied uniformly and consistently throughout the Republic of South Africa”.

Additionally, the national regulator would assist the PLAs in detecting and targeting unlicensed gambling activities in the market.

The company’s $2.3 billion plan to renovate and expand its Empire City racino in Yonkers was long considered to be a favourite for one of the three available licences. But the perceived economic return from the project, MGM said, declined over the course of the process to the extent that it warranted withdrawal.

Now, only three applicants remain in contention, all of whom submitted revised bids to the state this week:

• Bally’s Bronx
• Metropolitan Park
• Resorts World NYC

Bally’s projected construction cost is $4 billion, followed by $5.5 billion for Resorts World and $8 billion for Metropolitan Park. Resorts World, like MGM, is an existing racino and proposes an initial casino launch in July 2026. The other two are greenfield projects that would take multiple years to build and longer to reach profitability.

There is no timeline in Bally’s submission and Metropolitan Park only notes that construction would begin in January.

The state’s Gaming Facility Location Board (GFLB) is tasked with reviewing the remaining bids under various financial, environmental and workforce criteria. Its deadline to submit licensure recommendations to the state is 1 December. State regulators may then choose to award up to three licences by year’s end.

MGM bid underwhelming from the start?

With a July 2027 opening date, MGM’s bid was the second-fastest in terms of speed to market but featured few other standout details when compared to the field. The proposal did not include a resort hotel, public park spaces, housing commitments or similar benefits featured in other projects.

The New York casino consideration process once included 11 downstate proposals, and MGM sat lowest of all in terms of confirmed capital investment. A casino atop the Saks Fifth Avenue retail store in Manhattan might have been lower in terms of cost, but those stakeholders never announced concrete details and didn’t submit an official bid.

The pool was whittled down to eight after a first-round deadline in late June. Of those eight, MGM was the only bidder that did not make a presentation to its appointed community advisory committee (CAC) during its initial meeting.

Despite this, the project had solid backing and was squarely in contention at the time of withdrawal. The CAC approved the bid unanimously and both MGM and local officials adopted the messaging that the property needed a commercial licence for survival.

MGM said so in its own application materials and sent dozens of employees to testify in support of the project to the CAC. James Cavanaugh, the chair of the committee, said that the “aging slot parlour” would “wither and die” without a full licence. Yonkers Mayor Mike Spano lobbied for the project for years. But instead of revising its application and proposing a custom tax rate, MGM pulled out altogether.

The company said the “newly defined competitive landscape – with four proposals clustered in a small geographic area” – was cause for concern investment-wise. Its bid was also “predicated on the receipt of a 30-year commercial casino licence” rather than 15 years, which is what it qualified for based on capital expenditures.

Northfield Park sale announced days after New York exit

Two days after the New York announcement, MGM made more racino news by selling the operations of MGM Northfield Park in Ohio for $546 million to private equity firm Clairvest Group. MGM originally acquired the racino’s operations for approximately $275 million in 2019, the same year it purchased Empire City.

CEO Bill Hornbuckle said in a statement that Northfield Park is “a great property with great opportunity ahead”. Yet he also asserted that his company is “focused on growing our digital business, developing our international expansion opportunities and continuing to invest in our leading integrated resorts domestically”.

This seems to be further indication that MGM could also sell Empire City in the near future, but its statement announcing the New York casino exit denied such intentions.

“We know our decision will impact many individuals; we remain committed to operating the property in its current format and believe it will continue to enjoy success serving customers in Yonkers and the surrounding communities,” the company said.

On condition of anonymity, multiple industry sources indicated to iGB that MGM still has time to make a decision. It would be a few years before the downstate licensees really start to compete, sources said, and the property should still perform well in the meantime.

Empire City generated $607.4 million in net win, or hold, in fiscal year 2025 (April-March). The property is slightly ahead of that pace in FY26, generating $311.7 million in the first six months of this fiscal year.

Withdrawals highlight ongoing issues in NYC casino process

MGM was the third major casino operator to voluntarily withdraw from consideration in 2025, joining Wynn Resorts and Las Vegas Sands. The withdrawals all cited different reasons for their exits and each of those reasons would still ostensibly impact any bids that reach fruition.

Sands was the first to exit the race in April. Its primary concern was “the impact of the potential legalisation of iGaming on the overall market opportunity and project returns”. New York legislators have rejected multiple attempts to legalise iGaming but it could gain traction in future years, especially after the downstate licensing process is complete. The state faces a $34 billion cumulative budget gap over the next three fiscal years and could turn to iGaming to help drive tax revenue.

Wynn was next to drop out, in May, citing bad politics related to the rezoning process. It ultimately saw downstate New York to be “an area in which we, or any casino operator, will face years of persistent opposition despite our willingness to employ 5,000 New Yorkers”.

Not alone in political controversy

Both Bally’s and Metropolitan Park have also seen political controversy.

New York City Mayor Eric Adams assisted the Bally’s bid twice in city council, vetoing one vote and lowering the threshold for another. Metropolitan Park owner Steve Cohen sidestepped local Senator Jessica Ramos in favour of Senator John Liu after Ramos refused to endorse its zoning legislation.

MGM’s competition concerns would also still apply to the remaining applicants. All three are within 30 miles of each other.

In a statement following the Tuesday bid deadline, Bally’s told iGB it was “ready and willing to bet on the Bronx”. Resorts World in a release said its proposal was “a promise kept to the people of New York”. Metropolitan Park’s casino partner, Hard Rock International, declined to comment on its bid.

Casino bidders prepare balance sheets, lenders weigh risks

The remaining applicants face uncertainty related to building costs and timelines. From a macroeconomic perspective, rising tariffs, sticky inflation and slow job growth could significantly affect new construction. Bidders must also have the ability to fund or finance such projects, which is no small task for three companies with multiple projects ongoing.

Bally’s, above all, has faced skepticism over its leveraged business model, although the company said its recent reverse-merger with Intralot provided it with “more than $1 billion of cash and available credit facilities ready to commit to the project”. In addition to its interest in New York, Bally’s is building large-scale projects in Chicago and Las Vegas.

Its lenders for the Chicago project are pushing back on Bally’s attempts to modify certain aspects of its $1.9 billion loan term, which could be a sign that its constant debt manoeuvring is running out of room. To this point, the company facilitated much of its growth through financing from Gaming and Leisure Properties (GLPI). Bally’s revised New York casino application said it had a “$2.5 billion investment commitment” from GLPI.

GLPI’s senior vice president of corporate strategy, Carlo Santarelli, clarified to iGB that “there are rarely formal negotiations between the parties nor is anything agreed upon” when including such statements in applications. The company will await the final licensing outcome before making any commitments, he said.

Santarelli added that GLPI “would be willing to work with other bidders and was in fact working with other bidders, whose projects did not advance to this stage of the process”.

Costs, timelines likely to rise amid economic turmoil

Resorts World parent company Genting Berhad has also been aggressive in rejigging its balance sheet this year. It sold its Resorts World Catskills property to Sullivan County in a complex transaction and is in the middle of a $6.8 billion expansion of its flagship Resorts World Sentosa resort in Singapore. The broader Genting is pushing to buy out its Genting Malaysia subsidiary for $1.6 billion, in efforts to better facilitate these growth plans.

Metropolitan Park is perhaps the safest economically despite the high price, as owner Steve Cohen is listed by Forbes as the 100th-richest person in the world, with a net worth of $23 billion.

Duane Bouligny, managing director for Wells Fargo Securities, said that current downstate New York casino projections are “aggressive”. But every lending opportunity is itself a gamble, he said, and banks must have faith in operators’ ability to execute.

‘What we’ve found is that the properties actually get there, it just takes longer to get to those cash flow numbers in their projections.’

“So it’s not year one, might not be year two, it might be year four, year five … it takes time to get there,” Bouligny said. “So we have to have faith from a balance sheet perspective that they’re going to get there at some point.”

His belief is that costs will “go up, not down” based on the current economic landscape.

Battle of New York casino tax rates, licence fees

Another major component for the remaining applicants will be tax rates. The state allowed bidders to pitch their own, with a minimum of 25% for slot revenue and 10% for other gaming.

According to materials posted to the GFLB website, the three bidders proposed the following rates:

• Bally’s Bronx: 30% for slots, 10% for tables
• Metropolitan Park: 25% for slots, 10% for tables
• Resorts World NYC: 56% for slots, 30% for tables

The downstate licence fee was set at a minimum of $500 million but bidders were free to offer more. Metropolitan Park offered $500 million, Resorts World offered $600 million and Bally’s did not indicate a fee preference. As MGM noted, bidders learned in August – after official submissions were due – that licence lengths also would depend on capital investments.

The structure is:

• Total investments under $1.5 billion get a 10-year initial licence
• Investments between $1.5 billion and $5 billion get a 15-year initial licence
• Investments between $5 billion and $10 billion get a 20-year initial licence
• Investments above $10 billion get a 30-year initial licence

Based on cost projections for the finalists, Bally’s would qualify for a 15-year licence, whereas Metropolitan Park and Resorts World would qualify for 20-year terms. Only two downstate proposals – Wynn’s Hudson Yards bid and Soloviev Group’s Freedom Plaza – would have eclipsed the $10 billion threshold to unlock a 30-year licence, but neither is a finalist.

New York gaming regulators now in spotlight

The five-member GFLB now becomes the centre of the New York gaming universe. None of the five appointees are familiar with or have experience in gaming, although that was by design to ensure neutrality. Board Chair Vicki Been took it a step further, telling Bloomberg this summer that casinos are “nowhere I want to spend my time”.

Four of the five members were appointed to the board this year. The most recent was Cindy Estrada, who was appointed on 30 September, the same day as the CAC deadline. Only Been has served for more than one year, having been appointed in 2022.

There have been two GFLB meetings this month – the first on 8 October and then again on 15 October. The 8 October meeting ran for just 15 minutes and was largely organisational. There is no available archived audio or video from the 15 October meeting, which was scheduled for three hours.

The next meeting is set for 22 October at 2pm EDT.

As a result, the Netherlands has been ordered to bear its own costs for the long-standing case and to pay those further costs incurred by defendant – the European Gaming and Betting Association (EGBA). 

In the 2023 ruling, the EU General Court found the European Commission (EC) had failed to properly investigate whether the Netherlands had provided incumbent Dutch lotteries with unlawful state aid, by extending their monopoly lottery licences without an open tender process. 

The case, brought by the EGBA, dated back to 2016 when the trade body lodged a complaint with the European Commission, highlighting the lack of open tender process in the Netherlands.  

It said the Netherlands’ process to renew the incumbents’ licences constituted a violation of the EU’s state aid rules. 

Then, in 2023, the General Court insisted the EC should have analysed whether licence holders were mandated to pay a portion of their proceeds to certain charities, as this process could have amounted to indirect state aid.  

The Netherlands appealed that 2023 ruling and requested the EGBA pay all related legal costs. 

What’s next for the Netherlands? 

However, on Thursday, the EGBA celebrated the ECJ’s latest judgment, which dismissed the Netherlands’ appeal entirely and upheld the General Court’s previous 2023 ruling.  

As a result, the EC will be required to assess distribution of aid by the Netherlands’ gambling monopolies, including indirect charity beneficiaries. 

It will launch an investigation into whether the Netherlands’ lottery tender process facilitated unlawful state aid distribution.  

EGBA secretary general welcomes ECJ Netherlands monopoly ruling 

Reflecting on the latest result, and the ending to a drawn-out legal process, EGBA Secretary General Maarten Haijer hailed the ECJ’s Thursday ruling as “a clear victory for the proper enforcement of EU law”. 

In a statement Haijer said: “The court has confirmed what we said all along: the Commission must investigate state aid complaints thoroughly and cannot take shortcuts.  

“While this case dates back to 2014, it remains relevant today. It demonstrates that the Commission must fulfil its responsibilities as guardian of the treaties – and that there are consequences when it fails to do so.” 

Haijer reiterated that EU member states must ensure a fair and competitive process when issuing gambling licences. 

The tension in the room was palpable. Operators, lawyers,and regulators gathered in a large hall: 16 tables, two companies per table, with KSA staff mingling at the edges.

When the Dutch remote‑gambling market launched in 2021, licences were granted for five years. The first 10 operators – TOTO, FPO, Holland Casino, NSUS Malta, Play North, Tombola Malta, Hillside, Bingoal, Betent and LiveScore Malta would face renewal in October 2026. Both LiveScore and Tombola exited the market in 2024.

With that date approaching, speculation had grown that the KSA would tighten rules – making the relicensing process laborious and punishing. Many feared a reset, rather than a renewal, that would overwhelm even well‑established operators.

‘Past behaviour’ requirement sparks concerns among operators

The anxiety was partly caused by statements made before 1 October. The KSA chair had hinted that it would look into past behaviour when considering new and reapplications for gaming licences.

In its public announcements, KSA said: “Providers that made mistakes in the past five years must explain during the application process how they have learned from previous mistakes and how they intend to prevent recurrence. If we find this explanation insufficient, the permit may be denied or additional conditions and restrictions may be imposed.”

Bjorn Fuchs, chairman of VNLOK – the Dutch iGaming trade body – confirms that wild rumours circulated among operators prior to the meeting.

“We [thought we] were going to be punished for bad behaviour. Maybe we get five years, maybe one year, maybe we lose it altogether. These were some of the concerns,” he says.

Operators also feared that every facet of their business would be re-scrutinised. Would new demands be imposed on advertising, addiction prevention, AML and player funds? Might entire chunks of existing policy be deemed insufficient?

What came out of the operator KSA licence renewal meeting?

But after the meeting, as Fuchs recalls: “There was a sigh of relief going through the room when it was presented,” although the tension was not entirely dispelled.

Rather than a crackdown across the board, what is emerging is a more regulated renewal framework.

Fuchs summarises: “If you have a clean sheet, there are some hoops, but for various modules you can just send a declaration which states that you’re compliant.”

He emphasises the new system will make burdens less demanding than before, but the new “exit plan” requirement and sharper duty‑of‑care definitions do bring some added complexity.

Justin Franssen, a regulatory lawyer and partner at Franssen Tolboom, likewise tells iGB the KSA is not imposing extreme hurdles on existing licensees, as some had feared would be the case.

Although new measures such as more comprehensive responsible gambling policies and civil judgment compliance are being introduced, these largely build on existing structures, he explains. “The gambling authority strives to make the reapplication process as smoothly as possible,” Franssen says.

The formal session on 1 October opened with KSA addressing submitted questions across various licensing modules. A detailed programme had been circulated in advance.

Operators asked pointed questions: How much weight will prior fines carry? How is behaviour/activity abroad assessed? When does the new licence take effect relative to the old one?

Various operators and law firms pushed hard for more clarity, Fuchs said, and the KSA acknowledged that need for clarity.

Unpacking the KSA’s exit plan requirement

Most notably, all submissions must now include the aforementioned exit plan – a new obligation that applies across the board. This requirement, intended to ensure orderly market withdrawal, marks a move toward embedding long-term risk management into the licensing process.

It requires operators to describe in detail how they will responsibly wind down their operations should their licence not be renewed or be revoked. Or if they decide to leave the market midway through the five years between renewals.

In short, it is to ensure players are not left vulnerable in the event of sudden market withdrawal. This includes ensuring proper handling of player balances, communication strategies to customers, technical shutdown procedures and data retention compliance.

In another marked departure from previous practice, the breach-prevention module (overtredingspreventie) is no longer confined to new entrants. Existing licensees seeking renewal must now also submit detailed protocols on how they proactively prevent regulatory breaches.

Several modules, including those related to financial security, player fund provision and internal oversight, can now be approved through signed declarations rather than full evidence-based submissions. Should doubts arise, the KSA may demand supporting documentation.

Non-compliance with KSA licence renewal rules could end in licence revocation

Other areas are heading in the opposite direction. The Central Data Bank (CDB) module has seen a notable hardening of requirements: operators must now submit a detailed control plan, present evidence of system conformity and provide a test programme.

Meanwhile, advertising and recruitment remain documentation-heavy areas, showing little regulatory leniency amid public and political sensitivity about consumer protection and market integrity.

Background checks have also become more intrusive in the KSA licence renewal process. The reliability assessment now obliges applicants to disclose previously unreported persons – individuals who were involved with or connected to the gambling operation but were not disclosed in earlier applications – or past behaviour linked to the operation and to map out corporate and personal affiliations.

Perhaps most consequential is the now-strictly enforced clause on civil judgment compliance. Operators who have failed to comply with enforceable rulings – be they related to player winnings, losses, or data subject access requests – could have their licence revoked.

As Franssen warns: “If an operator does not comply with civil judgments, they will not get a licence. The licence can be pulled.”

Political pressure on the market

Overall, the feeling among operators is that the regulatory changes reflect a market recalibrated for oversight and accountability.

As chair of the trade organisation, Fuchs’ stance is a mix of cautious optimism and realism. In his view, many new demands are not radically burdensome.

He notes that operators may now submit declarations in many modules rather than full packages, reducing paperwork in some cases. The real burden falls on areas like exit planning and the finer detailing of duty of care.

But Fuchs worries about one big overhang for the online market: political pressure. He described how for years in the Netherlands, gambling had “no friends in politics” and was subject to opinion-driven restrictions by Christian and socialist parties.

Those parties, such as the Christian Union and SP, have steadily pushed for tighter regulations or even prohibition. The coalition politics of 2021, reliant on such parties, suppressed the fact-based dialogue and liberal push-back, Fuchs expressed. The result: increasing constraints and shrinking product flexibility for legal operators.

Deregulation in Netherlands is ‘unrealistic’

Fuchs believes a turning point came earlier in 2025, when Parliament and a government roundtable began acknowledging how large the unregulated market had become and how detrimental that is to regulation and player protection.

Anti‑gambling voices like national addiction rapporteur Arnt Schellekens – who has previously been very vocal about banning online play – have moderated, admitting that prohibition would only drive players towards the unregulated market.

“The National Rapporteur is not in favour of a gambling ban, because it would drive people into illegality,” Schellekens said recently. Fuchs thinks that outright deregulation is politically unrealistic, even if opposing parties gain influence.

Franssen accepts that new entrants to the market will face burdens – even more than in 2021 – but he doesn’t expect the KSA to place unachievable demands on existing licence holders.

He warns, however, of “overarching playing limits” in the pipeline. Currently, deposit limits are set operator‑by‑operator. A regime to enforce a limit across all operators would devastate monetisation, he said.

Overall, Franssen calls the market situation in the Netherlands “a death by a thousand cuts”. Some smaller operators, he predicts, will drop out or be consolidated.

No friends in politics – but hope

Gambling remains a topic fraught with moral questions in the Netherlands, and few parties risk openly embracing it. For the operators, the tax hikes and tightening of regulations reflect more political caution than logic.

The gaming tax, starting at 29% at market launch, has climbed to 34.2% and is expected to reach 37.8%. The media, social pressure and anti‑gambling campaigns reinforce a political narrative that gambling needs constant control, stakeholders tell iGB.

Fuchs argues that the political tide appears less venomous now, as serious attention is turning to illicit gambling growth and the limits of prohibition. Yet he is aware that “gambling has no friends in politics” – and that upcoming elections may again bring forward stricter stances rather than liberalisation.

Franssen echoes this: many of the restrictions, such as advertising bans and deposit limits, were quickly introduced after the 2021 launch in response to political backlash. Any operator considering entering the Dutch market now must weigh a difficult climate of political fragility, he explained.

Fuchs hopes that in the future, fact‑based regulation replaces stacking of new burdens. “If you keep squeezing the legal industry, people go to the illegal offering,” he adds.

Indeed, many in the sector point to the growth of the unlicensed or offshore market and remain skeptical of early KSA claims that channelisation was 80–20. He believes the illegal sector was always larger, and that recent tight regulation has driven more players outside KSA’s purview.

Still, the hope among operators is that if KSA gets relicensing right – clear, proportional, consistent – they may strengthen legitimacy and player trust in the long run and could gradually push out illegal operators.

The Michigan Gaming Control Board issued a memo to sports betting operators last week warning them licences could be in jeopardy if they expand into prediction markets. The Closing Line newsletter first reported the news. Other state regulators have issued similar letters, including the Ohio Casino Control Commission and the Arizona Department of Gaming.

“The MGCB writes to make you aware that any involvement in the offering of sporting event contracts, directly or via an affiliate, key person, related business entity, or other association, will have implications relative to your licensure in Michigan,” the regulator’s memo to operators reads.

In April, the MGCB opened an investigation into sports prediction markets.

The objection from state-level regulators comes despite event trading platforms being regulated by the US Commodity Futures Trading Commission. Multiple state and federal lawsuits are in progress over the issue of whether prediction markets illegally offer sports betting in their product.

The letter comes after several sportsbook operators announced intentions to offer prediction markets. FanDuel entered a joint venture with CME Group for an events-based markets product, while Underdog announced it would begin offering products through a deal with Crypto.com. DraftKings CEO Jason Robins has also discussed prediction markets.

State regulators wary of prediction markets

The MGCB said it is tasked with “developing licensing qualifications, standards and procedures and evaluating a person’s suitability for licensure both when an application is made and on a continuing basis”. It also said each licensee must notify the agency if it looks to offer sports event contracts.

Last month, Massachusetts Attorney General Andrea Campbell sued Kalshi over the issue of sports betting through prediction markets. That followed similar lawsuits from California, Maryland, Nevada and New Jersey.

“Sports wagering comes with significant risk of addiction and financial loss and must be strictly regulated to mitigate public health consequences,” Campbell said in a release. “This lawsuit will ensure that if Kalshi wants to be in the sports gaming business in Massachusetts, they must obtain a licence and follow our laws. I am grateful for the ongoing partnership with the Gaming Commission.” 

Prior to sending its warning letter to sportsbooks, Ohio’s commission issued a cease-and-desist letter to Kalshi earlier this year. Other states to send similar letters include Arizona, Illinois and Montana.

Prediction markets continue push into sports betting

Event trading platform Kalshi began offering sports event contracts in January and continues to expand its offerings. It recently pushed into parlays as well.

Robinhood began offering Kalshi’s football markets at the beginning of the season.

Last month at a roundtable held by the CFTC and US Securities and Exchange Commission, representatives discussed ways to collaborate. Prediction markets received little attention, despite an outgoing CFTC commissioner’s recent warning about the segment’s weak oversight.

With the introduction of Gibraltar’s new Gambling Act 2025, the jurisdiction is embarking on a broad reform of its regulatory framework – designed to reflect the realities of a fast-evolving gaming industry in a post-Brexit landscape.

This legislative overhaul replaces the long-standing Gambling Act 2005, and aims not just to modernise but to reposition Gibraltar as a top-tier regulatory hub, after it was recently removed from the European Commission’s list of high-risk jurisdictions.

According to Victoria Reed, a regulatory consultant and founder of Better Change, the 2025 Act – effective since 1 October with a transitional period of six months – represents a “substantive and directionally aligned” leap forward.

”Gibraltar was one of the first jurisdictions to build a reputation as a credible, well-regulated hub. We’ve got a low corporate tax rate, access to skilled people and, crucially, a regulator that struck the right balance between commercial awareness and strict oversight which undoubtably helped attract many of the industry’s biggest brands,” she tells iGB.

Its close link to the UK gave operators access to the market, which cemented Gibraltar’s importance for many of the UK’s tier one players.

”After Brexit though, it lost the ability to passport licences across the EU, so its value became even more tied to its guaranteed UK market access. That shift meant Gibraltar had to double down on reputation and substance and the new act is designed to do exactly that,” says Reed

The framework, she explains, expands scope, embeds economic substance, strengthens oversight of the full value chain and maintains an active enforcement stance.

What’s included in Gibraltar’s new Gambling Act?

The new Gambling Act is comprehensive, placing new classes of businesses under supervision, introducing individual accountability for senior managers and enforcing real local economic presence.

As Andrew Lyman, head of Gibraltar’s Gambling Division, puts it: “Any gambling business now managed and controlled in or from Gibraltar potentially falls within scope.”

Key innovations within the new act include:

• Substantive presence requirements: Licensees must now demonstrate real economic substance in Gibraltar – through staff, offices, infrastructure and local tax contribution. The goal is to eliminate “brass plate” operations that offer little benefit to the jurisdiction.
• Expanded licensing perimeter: The act creates distinct licences for B2C, B2B and “Gaming operator support services”. Activities such as marketing and CRM, managed trading and software hosting now require their own approvals.
• Approved persons regime: For the first time, senior decision-makers will require personal vetting and licensing, similar to the UK’s Personal Management Licence. This enhances accountability at the individual level.
• Marketing oversight: All marketing activities conducted “in or from Gibraltar” will be subject to new regulation – bringing affiliates, group marketing hubs and even creative agencies into scope.
• Enforcement powers: The Gambling Commissioner’s powers are significantly bolstered. The commissioner can now issue administrative fines, cease-and-desist orders, conduct inspections and impose suspensions where warranted.
• Digitalisation and reporting: Operators must prepare for increased digitised reporting, particularly in relation to AML, financial disclosures, technical standards and safer gambling initiatives.

Gambling Appeals Tribunal introduced to review regulatory enforcements

Crucially, a Gambling Appeals Tribunal is being introduced. The independent body established under the updated Gambling Act is designed to hear appeals against decisions made by the gambling commissioner. These may include licence refusals, suspensions, revocations or other enforcement actions.

The tribunal’s creation marks a key milestone in Gibraltar’s broader regulatory reform, legal experts have said, reinforcing its position as a jurisdiction committed not only to robust regulation, but also to fairness, transparency and legal accountability.

Ultimately, it adds another layer of trust that should help to attract serious operators to the market.

Gibraltar’s new Gambling Act: Impact on stakeholders

Steven Caetano, partner at Isolas law firm, notes: “The act raises standards for all stakeholders, with the greatest operational impact on operators and their key personnel.”

Operators must overhaul their group structures to map out which business units will require licensing. For multinationals, this may mean multiple licence applications and reorganised internal governance. B2B providers and third-party support services – including marketing, technology and CRM services – must now assess whether they require standalone licences.

Similarly, senior personnel face new responsibilities, with the “Approved Persons” regime emphasising personal accountability front and centre.

Regulators gain more authority – but also a heightened responsibility to ensure fair, consistent and transparent enforcement.

In the end, players stand to benefit through stronger consumer protections, responsible gambling requirements and greater market integrity.

Navigating the challenges

Stakeholders have welcomed the new regulation, but it doesn’t come without significant challenges. Among them are increased compliance costs as new licence applications, reporting obligations and staffing requirements will drive up outlay – especially for smaller operators or those transitioning from leaner compliance models.

If the new act succeeds in attracting more business to Gibraltar, there will likely be demand for more local staff, though a relatively small labour pool in Gibraltar may pose recruitment challenges.

However, the anticipated UK-EU border agreement is expected to ease the movement of frontier workers from Spain, by removing the need for border checks between Spain and Gibraltar.

There is also a degree of transitional complexity. Although current licensees will be “grandfathered” into the new system, they will still need to undergo fresh applications within six months of the Gambling Act’s commencement.

Uncertainty around licensing categories in Gibraltar’s new Gambling Act

Speaking to iGB, legal experts agree there is a level of uncertainty around how some of the the new rules should be implemented.

Victoria Reed points to the uncertainties around licensing categories: “The government has said marketing carried out ‘in or from Gibraltar’ will generally need its own licence but has also indicated it may carve out some intra-group activity on a case-by-case basis. Until more secondary rules and precedents are published, operators can’t be entirely sure which affiliates, agencies or shared-service teams fall inside scope and which don’t.”

She also highlighted new rules around support services leaving room for interpretation.

”The act lists functions like managed trading, RNGs, hosting and advertising as ‘support services’, but leaves room for interpretation,” Reed adds.

”Multinational groups will need to decide whether in-house teams that straddle multiple hubs — for instance a centralised risk team partly in Gibraltar — require licensing.”

Caetano flags additional guidance could be needed to clarify B2B versus B2C licensing:

“The distinction between B2B and B2C activities is clearer, but some hybrid or cross-border models may require further guidance.”

In essence, it is unclear if dual licensing is needed or whether it could be covered under one tailored licence.

Credibility in a crowded field

Gibraltar’s iGaming sector, which employs more than 3,200 people across 54 operators, continues to be a cornerstone of the peninsula’s economy, generating 20% of its GDP.

Last year the sector contributed £110 million in corporate tax and £40 million in PAYE contributions. There are currently 83 licensees appointed – 49 B2C and 34 B2B.

In a reality where jurisdictions like Malta, the Isle of Man, and emerging offshore hubs are all vying for operator attention, Gibraltar’s message is clear about its brand: credibility, not convenience.

Where a place like Malta offers flexibility, and the Isle of Man applies rigid structure, Gibraltar positions itself in the middle as a risk-based market, but also with regulatory discretion and pragmatism, Reed explains

As Gibraltar’s Minister for Justice, Trade and Industry Nigel Feetham noted in his recent parliamentary budget address, Gibraltar has never operated a “no-questions-asked” model and the jurisdiction expects its licensees to respect local laws in other markets and take local licences where appropriate. This ethos is embedded in the 2025 Act.

“If we drive business away, it will be business we don’t want,” Lyman notes.

The real test begins now, where both regulators and businesses will be adapting to the new act, but the tone is optimistic.

“We’ve already seen renewed interest in the jurisdiction,” says Lyman. Caetano agrees the act “ensures Gibraltar remains at the forefront of the global online gambling industry for years to come”.

Its community advisory committee (CAC) rejected the bid on Monday afternoon with a vote of 2-4 against Thor Equities’ $3.4 billion casino complex in Coney Island. It was expected, as it became clear last week that at least three members intended to deny the project. Stakeholders would have needed four affirmative votes from the CAC in order to advance to state consideration, as three other bidders have done thus far.

It became apparent however, after two raucous public hearings, that The Coney had perhaps the lowest level of local support among the eight bidders for three potential downstate New York casino licences. The level of strife showcased in the hearings made CAC approval all but impossible based on that metric.

Prior to the down vote, the committee considered a flurry of amendment proposals from the bidder. A total of 10 categories of amendments spanning virtually every aspect of the proposal were offered on 19 September. The changes were extensive, totalling nearly 150 pages. Interestingly, the amendments were accepted by a 5-1 vote, minutes before the project overall was denied.

Some trends have begun to emerge from the CAC votes that have been held thus far, with one still remaining. For example, six of the seven bidders to host votes have lodged last-second changes. However, this has not meaningfully impacted outcomes, as all four of the rejected projects submitted amendments. Conversely, Resorts World NYC was approved with no amendments.

Additionally, the mayor’s and governor’s appointees to all CACs have voted in favour of every project. And for all four of the rejections – Caesars, Avenir, Freedom Plaza and The Coney – their appointees offered the only positive votes.

‘Disruption and uncomfortable moments’ for The Coney

As it came time to vote, the statements given by CAC members were starkly different from those given earlier in the day by the Bally’s Bronx committee, which approved its bid 5-1. In that case, members pledged the need to invest in underprivileged communities like the Bronx and applauded Bally’s for its collaboration.

Similar arguments could have been made for Coney Island. Yet Thor and The Coney received no such praise.

“There was a lot of disruption and uncomfortable moments throughout this process that I wish would’ve never happened,” said Brooklyn Borough President Antonio Reynoso. “I hope we didn’t make irreparable harm to each other in our community. Because we’re always going to be here.”

Alex Sommer, appointed by Mayor Eric Adams, gave the only positive statement, but it referred to the process rather than the project specifically.

“As the mayor’s office has emphasised throughout this process, we believe casinos can serve as major economic development initiatives, creating good-paying jobs and delivering benefits to the city, region and local communities,” Sommer asserted.

Moving forward, Metropolitan Park is the last project still needing a CAC vote, which is scheduled for 11am on Tuesday. After that, all projects still alive will go before the state’s Gaming Facility Location Board. The board will begin a fresh round of consideration with a 1 December deadline to make recommendations to the New York State Gaming Commission. From there the commission will have until 31 December to issue up to three licences.

Prior to the Metropolitan Park vote, the projects approved so far are Bally’s Bronx, Resorts World and MGM Empire City.

A fresh round of review by the GFLB will now run through 1 December, the board’s deadline. The state-appointed panel will evaluate all remaining proposals and make licensure recommendations to the New York State Gaming Commission. At that point, the commission will have until 31 December to issue up to three downstate commercial licences.

Eight proposals made it through to the CAC phase, and Resorts World was considered a frontrunner from the beginning. As an existing facility, Resorts World boasts a July 2026 casino launch timeline, by far the quickest in the field. The video lottery terminal facility has also operated since 2011 and has contributed billions in taxes during that span.

Fellow racino MGM Empire City enjoyed similar advantages and was also unanimously approved earlier in the day. Three casino projects proposed in Manhattan have been rejected by their CACs, leaving three more bidders to be considered after Thursday’s votes for the two racinos.

With regard to public support, Resorts World’s first and second hearings were by far the most positive of all New York casino applicants. That public endorsement coupled with the existing strengths of the bid made approval all but certain. Queens now appears well positioned to secure at least one casino licence. Metropolitan Park, also in Queens, will have its CAC vote on Tuesday at 11am.

“Sorry Jay-Z, we win again,” Queens Borough President Donovan Richards said during the Resorts World vote, referencing the rapper’s failed endorsement of Caesars Times Square. “I just had to rub that in. You can let the Brooklyn borough president know that I send my regards to him. With that being said, I vote aye.”

Resorts World now heads to GFLB phase

With the approval, Resorts World must pay a $1 million application fee before the GFLB phase can begin. The board is an independent body of members who, like the CACs, are not connected to the industry and were appointed specifically for this process. Current board members are:

• Vicki Been, chair: Appointed 2022, professor at NYU School of Law
• Terryl Brown: Appointed 2025, vice president/general counsel at Pace University
• Marion Phillips III: Appointed 2025, SVP of community development, DEI at US News and World Report
• Greg Reimers: Appointed 2025, retired finance executive

Revenue projections and potential impact on existing facilities and other prospective licensees will be significant considerations for the board. Each applicant has provided estimates based on various licensing scenarios. Beyond that, each project that advances before the board will be judged on four weighted criteria:

• Economic Activity & Business Development (70%)

• Local Impact Siting (10%)

• Workforce Enhancement (10%)

• Diversity Framework (10%)

Additionally, Resorts World will be free to pitch and negotiate its own tax rate. This rate can be anything above a minimum of 25% for slot revenue and 10% for other gaming. However, MGM CEO Bill Hornbuckle said recently his company was told it must match the property’s current rates – VLTs face a tax rate of about 55%. Horse racing purse commitments must also be kept.

This would not seem to be an issue for Resorts World, which was notable last year for pledging annual tax payments of $1 billion or more.

Who will be left to battle the racinos?

While committee approval of the two racinos was unsurprising, the biggest question now is what another bidder or other bidders will move past the CAC phase for state consideration.

Given that the CAC votes were not final decisions, there was a sense that committees might seek to keep the pool of applicants as wide as possible, for as long as possible. This could be evidenced by the fact that all of the CAC appointees of Governor Kathy Hochul and NYC Mayor Eric Adams have voted yes in every vote held thus far.

But things have not played out that way, as all three Manhattan proposals were quickly shot down. Meanwhile, three members of The Coney’s CAC, scheduled to vote Monday at 3pm, have already announced their intention to deny the project. Four positive votes on the six-member committees are required for projects to advance.

Rejection of The Coney would leave Bally’s Bronx and Metropolitan Park as the only other remaining applicants. Bally’s has been responsive to its CAC’s requests, but it faces operational and financial challenges. Metropolitan Park has billionaire New York Mets owner Steve Cohen’s lobbying power, but it is also in Queens, raising the question of whether two of three licences would go to one borough.

These scenarios illustrate the point that while there are three available licences, regulators might not award all three, or at least not at the same time.

All three previous bids to be voted upon by local committees were rejected, but Empire City went through on a unanimous 5-0 vote.

It will now move on to the next round under the state’s Gaming Facility Location Board (GFLB). That board will start a fresh round of consideration, with a deadline of 1 December to make recommendations on awarding up to three casino licences. The commercial licences will be awarded by 31 December by the state gaming commission.

There has been consensus opinion that the bids from two racinos, MGM and Resorts World NYC, were particularly strong candidates. This was due to their existing facilities, history of tax contributions and longstanding community ties. MGM is the former Yonkers Raceway and has operated as a video lottery terminal facility since 2006.

Despite these strengths, competitive concerns also played a factor for MGM. Of the eight proposals that made it to the CAC process, MGM is the only one outside New York City. The company said in its application that a full licence was necessary for survival, as it could not compete if three other commercial casinos opened nearby in the future. This argument appeared to hold a lot of sway with the committee.

“If Yonkers does not get one of the three full casino licences, Empire Casino will wither and die,” said CAC Chairman James Cavanaugh, before voting yes. He added that no one would choose to visit “an aging slot parlour” over a full-service casino. Cavanaugh was appointed to the CAC by Yonkers Mayor Mike Spano, the project’s biggest supporter.

What’s ahead for the GFLB process?

Now that MGM has cleared the CAC phase, it must pay a $1 million application fee to the state. Then the GFLB, made up of four appointed members, will evaluate the project under a range of criteria. Board members are as follows:

• Vicki Been, chair: Appointed 2022, professor at NYU School of Law
• Terryl Brown: Appointed 2025, vice president/general counsel at Pace University
• Marion Phillips III: Appointed 2025, SVP of community development, DEI at US News and World Report
• Greg Reimers: Appointed 2025, retired finance executive

The first consideration will be each project’s revenue impact. This involves analysis of “the revenue impact of each applicant’s proposed gaming facility on existing facilities and potential new facilities”, per the board’s website. As part of the request for applications, bidders had to provide projections based on how many licences are awarded and where.

Additionally, each project will be evaluated based on four weighted categories:

• Economic Activity & Business Development (70%)
• Local Impact Siting (10%)
• Workforce Enhancement (10%)
• Diversity Framework (10%)
  

Another “quirk” of the process, as MGM CEO Bill Hornbuckle joked at a recent conference, concerns taxes. Bidders are asked to pitch their own tax rates, so long as they start at 25% for slot revenue and 10% for all other gaming revenue. However, existing VLT tax rates are about 55% and Hornbuckle said MGM is expected to at least match that level while also maintaining its existing horse racing purse commitments.

MGM first to have amendments accepted

Unlike the first three CACs that voted, the MGM committee was the first to accept amendments submitted by the bidder. Backers of all three rejected proposals made submissions within days before their votes, while MGM’s was filed on 17 September. A week’s worth of deliberation appeared to bear fruit, as the amendments were accepted unanimously.

The only CAC that has requested changes from its bidder was the committee reviewing Bally’s Bronx. In that case, Bally’s did submit a response to the litany of requests, and it now faces a vote at 10am on Monday. The Coney, meanwhile, has filed a flurry of amendments despite at least three members making public their plans to oppose it. Resorts World and Metropolitan Park have not filed any amendments.

MGM’s approved amendments include additional safety and infrastructure commitments, a minimum city revenue requirement that starts at the rate of existing contributions, reimbursing the city for construction costs and other concessions.

Some 101 MPs – nearly half of Labour’s backbenchers – signed a letter asserting there is a “compelling” case for a “targeted levy on harmful online gambling products”. The letter, written by MPs Alex Ballinger and Beccy Cooper of the All Party Parliamentary Group for Gambling Reform, suggested that the money raised should be used to scrap the two-child benefit cap.

Ballinger and Cooper called on Chancellor Rachel Reeves to introduce changes recommended by the Institute for Public Policy Research (IPPR). Former Prime Minister Gordon Brown made the same call last month.

What gambling tax changes does the IPPR propose?

The IPPR proposes increasing the tax rate on gross gambling yield, with Remote Gambling Duty lifted from 21% to 50%. Machine Games Duty on cash-prize slot machines would rise from 20% to 50% under its proposal, while General Betting Duty on sports betting, online or in betting shops, excluding horse racing, would rise from 15% to 30%.

The IPPR estimates these measures would together raise an extra £3.2 billion ($4.3 billion) in 2026-27 – enough to remove the cap that allows families to claim benefits only for their first two children. The think tank said this would lift 500,000 children out of poverty.

“No child should be growing up in poverty while gambling companies continue to enjoy record profits,” Ballinger wrote. “Harms from gambling place a huge burden on our public services, costing the exchequer over £1bn a year.

“It’s time to confront these excessive profits, reduce gambling-related harm, tackle poverty and ensure gambling is taxed fairly.”

The Betting and Gaming Council, which represents the industry, said increasing taxes on the licensed sector would only strengthen black market operators.

In a statement, a spokesperson said: “We strongly oppose proposals to raise taxes on the regulated betting and gaming industry. Such a move would be short-sighted, harming jobs, investment and sports funding, while failing to deliver more revenue.

“Every time the treasury squeezes the regulated sector, it strengthens the unsafe black market, which pays no tax, offers no consumer protection and puts UK jobs and growth at risk.”

Dutch rate hike has led to tax revenue decline

Supporters of the industry also point to international examples. A recent increase in gross gambling revenue rates in the Netherlands has triggered a decline in revenue collected by that nation’s exchequer. After a rise from 30.5% to 34.2% was introduced in January, regulator Kansspelautoriteit (KSA) released a report in August revealing the measure will likely result in a €40 million drop in iGaming revenue. This was in contrast to government forecasts of a €100 million rise in GGR for 2025.

Earlier this month, Dutch State Secretary for Taxation Eugène Heijnen ruled out introducing a new policy to make up for an expected decline in online gambling revenue due to tax increases.

Speaking in parliament, he said: “It is true that the estimate for revenue has been revised downwards this year. This picture is broadly consistent with the expectations communicated by the KSA in a recent report.”

The Licensed Dutch Online Gambling Providers trade body suggested the revenue fall was due to several new restrictive measures enacted over the last year. These include bans on untargeted advertising and sponsorships, new deposit limits and the increased tax burden. It called for the government to act on this and revise the current tax framework.

The online betting group posted gross betting and gaming revenue of €25.3m ($27.5m) for the six months to 30 June 2025. This was almost unchanged from the prior year. Net gaming revenue of €19.7m was down slightly, by 2.5%, as higher levies took effect.

Profitability improved despite stagnant sales. EBITDA before special items rose to €3m, compared with €1.2m last year, while net profit almost tripled to €1.8m.

Management credited lower marketing costs, which fell as there wasn’t a major summer football tournament. Indeed, advertising expenses – including marketing and bonuses – were down 20.5% to €8.2m.

Bet-at-home’s European market concerns

The headline numbers mask a more complex story about the operator’s two core markets.

In Austria, a steep increase in the betting levy from 2% to 5% of stakes took effect on 1 April, triggering an immediate decline in activity.

Management responded by beginning to pass on the costs to customers in June, but this move risks eroding competitiveness since several rivals have absorbed the increase themselves.

The longer-term picture in Austria is also uncertain. Austria’s new coalition agreement includes language about a “further development of the gambling monopoly”, which could open the door to the eventual liberalisation of the online sector. For now, the state monopoly remains in place, with licensed foreign operators continuing to serve Austrian customers in a grey-market environment, but the trajectory of reform could materially alter market conditions over the coming years.

Regulatory challenges in Germany

Germany remains Bet-at-home’s largest market, but the regulatory environment there continues to generate friction. A recent report by the German Sports Betting Association (DSWV) concluded that the regulated market is facing a “serious structural problem,” with as much as a quarter of gambling activity still channelled through unlicensed operators.

The DSWV pointed to restrictive measures such as the €1,000 monthly deposit cap, limits on bet types and onerous checks on player affordability as key drivers of consumer flight to the black market.

Bet-at-home has repeatedly stressed that while regulation is necessary, overly tight rules undermine licensed operators and threaten the policy objective of keeping play within the legal framework.

The company did secure licence renewals in Germany through to 2027 and was permitted to add certain international friendlies to its sportsbook this year, but management said the broader constraints remain a drag on revenue potential.

Managing legacy risks

Beyond its core markets, Bet-at-home continues to manage legacy risks, including the liquidation of its former Maltese subsidiary. While the company expects some recovery from that process, ongoing disputes over the enforceability of customer claims and European scrutiny of Malta’s legal framework have added uncertainty. Legal challenges also persist in Germany and Austria, where customers are seeking reimbursement of historical gambling losses, although management considers the current financial exposure to be contained.

Looking ahead, the group maintained full-year guidance for gross betting and gaming revenue in the range of €46m to €54m, with EBITDA numbers before special items coming in between break-even and €4m.

The wide range reflects the unpredictability of regulatory and tax developments across its footprint. Management continues to emphasise efficiency, technology investment and brand visibility as levers for navigating the challenging landscape, but acknowledged that external pressures will remain the decisive factor in performance.

Unfortunately for stakeholders, Brooklyn appears to be next on the chopping block.

Two members of the CAC evaluating The Coney – the Coney Island bid from Thor Equities and other partners – announced on Monday that they both intend to vote against the project. No official vote has been scheduled as of writing, although the deadline is 30 September.

Brooklyn Borough President Antonio Reynoso and state Senator Jessica Scarcella-Spanton, both of whom appointed themselves to The Coney CAC, told the Brooklyn Eagle they will be voting against the project once the vote is held. They join opposition previously stated by a third member.

“The Coney has failed to prove itself as a public good,” Reynoso told the outlet. “The proposal is deeply unimpressive and unresponsive to the needs, desires and rich history of the Coney Island community. Quite simply, it will not improve conditions for the Brooklynites who call Coney Island home.”

Scarcella-Spanton added that the project “would not be suitable for the proposed location”. The bid is one of five that remains for the three available downstate casino licences that will be awarded by year’s end. The Coney and the four others can advance for state consideration, however, only if their local CACs approve them.

Passage seemed unlikely after rowdy hearings

Thor and the Chickasaw Nation, Saratoga Casino Holdings and Legends Hospitality have pitched The Coney as a $3.4 billion transformative development that would revive Coney Island into a year-round destination instead of a seasonal specialty.

Plans call for a theme park-esque mixed-use complex with a casino, hotel, entertainment venue and more. Yet even before the officials’ rejections, The Coney faced long odds of approval.

Each CAC is tasked with holding a vote based on its project’s level of public support. This was to be evaluated through two public hearings and an online comment submission portal. Of the eight proposals to reach the CAC stage, The Coney easily had the worst public reception.

Both its first and second hearings were extremely rowdy and the vitriol from residents was obvious. The shouting matches, police interventions and overall objections would have made even the most supportive committee hesitant to approve the bid. A fully independent board would have found it all but impossible.

Three ‘no’ votes count more than $3 billion

Unfortunately for The Coney, its CAC seemed far from neutral. While Reynoso and Scarcella-Spanton’s votes might have swung only recently, another committee member’s opposition was clear from the outset.

Marissa Solomon, a Coney Island local who had long advocated against the proposal, was appointed to the CAC by Assemblymember Alec Brook-Krasny, another huge opponent. Solomon was sharply critical of The Coney in its first presentation and local residents pleaded with the rest of the CAC to join her opposition.

In a statement posted to X Monday, after the reports surfaced of the two additional members opposed, Brook-Krasny alluded to the negative outcome expected, since four votes in favour from the six members would be required for The Coney to advance.

“Today’s news indicates three ‘NO’ determinations on the proposed Coney Island casino development,” he said. “From the outset, my office maintained that this project was not a fit for our neighborhood.”

Racinos head to vote amid rapid denials

With The Coney now presumed out, Thursday will become a huge day in the CAC process. Both of the “racino” proposals, MGM Empire City and Resorts World NYC, are slated for votes, with MGM first at 10am followed by Resorts World at 3pm.

The two projects have been considered the biggest frontrunners from the start. This is due to their immense speed-to-market advantages over greenfield projects, their extensive tax contributions and their established community relationships. The projects’ stakeholders will now learn their fates within hours of each other.

Despite the string of rejections thus far, Resorts World still has reason to feel confident. Its two hearings were unanimously supportive, and its plans call for a July 2026 casino launch, a full year before MGM’s own projection.

MGM also has cause for optimism, although its hearings did feature some opposition from Yonkers locals. As the only bid outside of New York City, MGM’s CAC is just five members but passage still requires four in support, meaning it cannot have two votes in opposition. Notably, the company has warned that the property could be forced to close if it is denied a full casino licence. It could not compete, MGM has said, with three other commercial licensees nearby.

Isgren’s report has proposed scrapping the Gambling Act’s current “directional criterion” for online gambling and replacing it with a new rule that prohibits illegal sites from providing access for Swedish players, regardless of whether operators are actively targeting the market.

What are Isgren’s key proposals?

Under the current regime, online gambling falls under Swedish law only if it is considered to be “directed” at Sweden. This standard has allowed many unlicensed companies to avoid oversight by structuring their services in ways that avoid obvious Swedish markers, such as language, currency or local marketing. The proposed shift to a “participant criterion” would instead apply the law whenever Swedish residents are able to access and play.

Additional recommendations would broaden the prohibition on promoting illegal gambling in Sweden. Beyond advertising, this would extend to payment processors, financial services and other support providers that support unlicensed operations.

A presumption rule would apply, so that if a provider processes payments to or from an unlicensed operator, it must assume Swedish participation unless there is clear evidence to the contrary.

The memorandum also proposes adjustments to criminal provisions, meaning unlicensed gambling and the promotion of unlicensed services would be made illegal and subject to criminal charges.

Collectively, the measures aim to strengthen Sweden’s channelisation target – ensuring at least 90% of gambling takes place with licensed operators, in order to protect consumers and safeguard tax revenues.

Earlier this month, Sweden’s Gambling Authority estimated that channelisation is currently 85%, down from 86% during the prior year.

Minister welcomes proposals

Finance Markets Minister Niklas Wykman announced the Gambling Act review in February 2025, with a view to enforcing tougher policies against illegal operators.

Industry stakeholders have long debated the shortcomings of the current framework. The online gambling trade association BOS has repeatedly warned that unlicensed operators exploit the directional test to reach Swedish consumers, often offering services in English and using euro currency.

Minister Wykman welcomed Isgren’s submission, calling it “a crucial step in creating a safer and fairer gambling market”. In a press statement, he said the government would now prepare the proposals within the Regeringskansliet (Government Offices) before a formal referral round and parliamentary debate. If approved, the reforms would come into force on 1 January 2027.

Isgren’s proposals were welcomed by Svenska Spel president and chief executive Anna Johnson, who repeated  a call for DNS blocking of illegal sites.

“The investigator’s proposals are long-awaited and welcome,” Johnson said. “This is about improved protection for consumers, but also about safeguarding trust in the entire Swedish gambling market.

“It is absolutely necessary to continue with more measures to combat illegal gambling. DNS blocking of illegal gambling sites is a natural next step to take. It would further strengthen the Swedish licensing market as well as the protection of Swedish consumers.”

BOS demands new gambling inquiry

BOS – a longtime critic of the Gambling Act – welcomed the proposal that would force unlicensed companies to take active measures to exclude Swedish gamblers.

Secretary General Gustaf Hoffstedt said: “This is an important contribution to the possibility of strengthening the Swedish gambling licence market, which is now proposed to criminalise almost all unlicensed gambling in Sweden. I foresee the government shortly submitting a bill to the Riksdag in accordance with the investigation’s proposal.

“Good job Mr Investigator and with the hope of equally good job from the government and the Riksdag to now proceed with legislation on the matter. Unlicensed gambling in Sweden must be smoked out.”

In early September, the group called for a new broad gambling inquiry, with the task of proposing measures that strengthen channelisation in the Swedish gambling market. Among the proposals that should be considered, BOS mentioned a less rigid regulation of loyalty bonuses, which are currently completely prohibited.

Hoffstedt said at the time: “The appointment of a broad inquiry tasked with preventing leakage to the unlicensed gambling market would undoubtedly be this government’s most important measure to protect and strengthen the legal regulated gambling market, before Sweden goes to the polls in September next year.”

It took less than 10 minutes for the CAC to put an end to the $11 billion project, which was the biggest of the eight downstate proposals in terms of size and scope. Located along 1st Avenue near the United Nations headquarters, Freedom Plaza was proposed by Soloviev Group and Mohegan Gaming.

The expansive plans called for a casino, two hotel towers, two residential towers, a so-called Museum of Democracy and much else.

In the end, the final CAC votes were as follows:

• Nichols Silbersack – Yes
• Sandra McKee, chair – No
• Reshma Patel – No
• Celeste Royo – No
• Jennifer Sta. Ines – Yes
• Jasmine Narula – No

With the latest rejection, just five of eight casino proposals in or around New York City remain up for local committees’ consideration. A favourable vote from the committees is required for projects to advance to state consideration for three downstate casino licences to be issued by year’s end. The five remaining committees are to vote by month’s end.

Similar outcomes across Manhattan

After years of work and millions spent, all three Manhattan hopefuls ended up with eerily similar outcomes. All three projects were rejected by 2-4 votes in about 10 minutes each, and none received endorsement from the CAC chairs.

Notably, the CAC members appointed by Governor Kathy Hochul and New York City Mayor Eric Adams were the lone supporters of all three projects. The mayor’s representatives came to the first two hearings with statements decrying the rushed nature of the votes, but no such statement was given for Freedom Plaza Monday.

No amendments approved by CACs thus far

Unfortunately for Freedom Plaza, the similarities to its contemporaries went beyond the vote outcome.

As with Caesars and Avenir, a series of last-minute amendments were submitted prior to the vote. In Freedom Plaza’s case, there were several submissions and revisions dated 18, 20 and 21 September. The most recent submission outlined a huge concession by the bidders – commitment to 100% affordable housing on the site. Overall unit count was raised to 1,080, all to be deemed affordable.

This would have been perhaps the biggest concession yet among downstate applicants, if it had been accepted. The Freedom Plaza materials will now be removed from the state’s Gaming Facility Location Board website.

So far, no amendments proposed by bidders have been approved. The only CAC to request amendments of its bidder, Bally’s Bronx, received a response from the company on Friday afternoon but has not scheduled its vote.

While the Avenir’s rejection prompted a heated rebuke from SL Green CEO Marc Holliday, there was a more muted reaction for Freedom Plaza. Per Crain’s reporter Nick Garber on X, there was “applause and some (happy) tears”, but “no outbursts from the developers”.

“I’d like to thank everybody who participated in the process,” said McKee, the committee’s chairwoman. “It’s been a very robust review of all the work that’s been done by the community and the applicants. I vote nay.”

The remaining projects in the New York race and their locations are:

• Resorts World NYC, Queens
• MGM Empire City, Yonkers
• Bally’s Bronx, Bronx
• The Coney, Brooklyn
• Metropolitan Park, Queens
  

MGM and Resorts World are the next two to face votes, both on Thursday – MGM is at 10am and Resorts World is at 3pm.

Of the eight total proposals vying for three licences, the first two to come to a vote — Caesars Times Square and Avenir — were rejected swiftly by their appointed community advisory committees (CAC). Both six-member committees voted 2-4 on the projects, below the threshold of four “yes” votes needed to advance to the next round.

The two CAC meetings, held about an hour apart at the same location Wednesday, lasted less than 30 minutes combined.

Positive votes would not have been the final step to licencing, as projects that move on still must clear the New York Gaming Facility Location Board and the state’s gaming commission. As such, some bidders might have sensed that CACs would approve most projects to avoid the burden of decision-making or to keep the pool of applicants as wide as possible.

Yet after last week, the remaining bids up for consideration by end of the month face new uncertainty. Freedom Plaza is up for debate Monday, while MGM Empire City and Resorts World NYC receive consideration Thursday.

(Editor’s note: Freedom Plaza became the latest voted down on Monday.)

Which NY casino projects face next votes?

Of the three bidders next to face votes, Freedom Plaza is perhaps the most at risk based on the first two rejections. Despite the fact that the $11 billion mixed-use complex is the largest by cost and scale, its CAC hearings were similar to Caesars in terms of length. The level of pushback was perhaps not quite as high for Freedom Plaza, but was still present.

For Caesars , the Broadway and theatre industry were opposed; for Freedom Plaza, it was residents in the immediate area. Neither Caesars nor Avenir appeared to have a marked advantage in local support throughout the process, which could be an ominous sign based on the first two votes.

By contrast, MGM and Resorts World might still have reason to feel confident. The strength of those two bids has been perhaps the consensus opinion among industry observers in the downstate race. Both are existing video lottery terminal facilities with significant speed-to-market advantages over greenfield projects and both established years worth of community relations and partnerships. Resorts World’s hearings were glowingly positive, while MGM’s featured a moderate level of local opposition.

In theory, the state could grant those two licences to ensure that tax revenue comes in as quickly as possible, and then decide on a preferred greenfield from those bidders approved by their local committees. Yonkers Mayor Mike Spano has been advocating for this approach for several months.

Upstate licence outcome an example of unpredictable nature

But New York casino stakeholders have learned that outcomes can be uncertain, with the upstate process being the chief example. That saga began in 2013, when voters approved Proposal 1. This amended the state constitution to eventually allow for up to seven commercial casinos throughout the state.

Four of the licences were earmarked for upstate, with the remaining three left for the downstate region. Upstate went first, in efforts to boost that area’s economy. The region was split into three main development zones outlined in the graphic below.

One consultant involved with both the upstate and downstate processes who spoke to iGB on condition of anonymity explained that the consensus opinion at the time was that two of the four licences would go to the Catskills/Hudson Valley zone, that being the closest to New York City. There were nine bidders in the zone as a whole and six within Orange County specifically, out of 16 total.

But ultimately state regulators threw a curveball and Orange County was passed over entirely. Instead, three licences were awarded in 2015 to Rivers Casino & Resort in Schenectady, Lago Resort & Casino in Waterloo and Montreign Resort Casino in Monticello, which later became Resorts World Catskills. Tioga Downs Casino Resort in Nichols was also recommended for licensure by the GFLB but was not awarded its licence until 2016.

This time, the source noted that the downstate request for applications (RFA) asked bidders for projections based on scenarios where one, two or three licences were awarded. This precedent, added to the scenarios outlined in the RFA, might give more credence to the idea that not all three downstate licences will be awarded, or perhaps not at the same time.

State faces budget gap, but other factors remain

One key difference between the two cases, however, is the potential benefit to the state. For the upstate casinos, the licence fee was $70 million. The downstate licence fee is a more robust $500 million.

The question of whether decision-makers would decline to award all three licences and miss capitalising on $1.5 billion in immediate combined income, regardless of other issues, remains open. New York faces a cumulative budget gap of $34.3 billion through fiscal year 2029.

At the same time, there are additional external factors that must also be taken into account. Macroeconomic fears related to rising US tariffs and reduced international travel could result in added construction costs and longer timelines for any projects that would be approved, with declining visitation once they’re open.

This is coupled with the fact New York City is headed for a significant mayoral election in November. Democratic socialist candidate Zohran Mamdani is considered a heavy favourite, and business leaders do not know how his policies could impact the city’s economy, although he has said he will not block casino developments.

So you’re saying there’s a chance …

Las Vegas-based consultant Brendan Bussmann of B Global Advisors told iGB there is “definitely a chance” that the downstate licencing outcome is a surprise, either in the number of licences awarded or to whom.

He pointed to Japan as an example, which started its licencing process in 2019 with great enthusiasm and three available licences only to issue one thus far, to MGM Osaka in 2023.

Bussmann noted that the Empire State is a particularly challenging gaming market, with very high tax rates for both mobile sports betting (51%) and casino gaming (10-30+%). Caesars, Sands and Wynn were on the short list of operators capable of executing such a high-level New York casino project, and all are now out of contention.

“This has been an extraordinarily lengthy process, and yes it is complex, but when you have over 1,000 questions in your RFA, it really makes you scratch your head,” Bussmann said. “Have we done this process right from the beginning? This process seems designed to weed everybody out and hopefully get down to three in the end.”

Do quick rejections show what’s next in New York casino race?

Each CAC had until 30 September to vote, yet the first two decisions were made with almost two weeks to spare. Both Caesars and Avenir submitted last-minute amendments in the days prior to their votes, but none were accepted by the CACs.

Some members disagreed with how the process unfolded.

Angel Vasquez, an Avenir CAC member, said its vote should have been postponed because conversations with the applicant were “incomplete”. Those conversations were ongoing up to the previous night before the vote, he said.

Laura Smith of the Caesars CAC and Nabeela Malik of Avenir’s, appointed to their committees by New York City Mayor Eric Adams, came to their votes with identical statements alleging that certain unnamed CAC members requested to move the votes up, despite the extra time available for deliberation. Neither the names of the members who requested this nor alternate vote dates were revealed.

New York casino licence denial surprise to Caesars, partners

Following the Caesars vote, SL Green CEO Marc Holliday confronted committee members directly, saying his company’s bid “met the standard and then some”. He applauded the two yes votes as the only ones “with courage to stand up”.

“Go run and hide, because what you did, the benefits you denied this community and this city and state, you have to live with that history forever,” Holliday shouted as members filed out.

The Caesars Times Square group then put out a fiery joint statement, calling the bid a “visionary proposal that aimed to address long standing challenges through meaningful private investment”.

“We’ve built strong relationships with a community that is eager for progress, and we hope that those who opposed this project — both in the public and private sectors — will now bring the same energy and resources to solving the very real challenges facing Times Square,” the statement concluded.

Caesars itself had a more muted response in a statement to iGB, extending “sincere gratitude” to the CAC for their “thoughtful consideration throughout the evaluation process”. The company pointed to its ongoing and future operations in the state.

“While we are disappointed by the outcome, our commitment to New York remains unwavering,” Caesars said. “We are proud of our strong partnerships across the state as anchored by our Caesars Sportsbook platform, where we continue to invest and innovate to serve New Yorkers.”

Avenir CAC made ‘significant request’ prior to denial

The Avenir rejection also seemed to surprise its stakeholders.

On the day of the vote, the group issued a statement reiterating the concerns that Vasquez voiced to the committee. The statement alleged the CAC had “made a very significant request” at 10:50pm the previous night, without proper time for consideration. This, they said, “taints the CAC process” and should have postponed the vote.

On the state’s website, the materials for both the Avenir and Caesars proposals have since been removed. It is unclear what request was made to the Avenir team.

“We’re putting forth a project in a location which could really use this type of complex jobs, housing, a hotel, restaurants,” Silverstein COO Dino Fusco told Spectrum News NY1 after the denial. “These are all things that we heard from the community, both in advance of putting together our proposal and then again, at the public CAC meetings that were held over the past month.”

As a comparison to Avenir, the Bally’s Bronx CAC also made significant amendment requests and held a separate meeting for the purpose. The list of requests was long, but Bally’s was given time to submit a response before Friday’s deadline, which it did, indicating some willingness to continue negotiations.

What Caesars, Avenir projects would have done

Caesars Times Square, a joint effort by Caesars, SL Green and Roc Nation, would have renovated an existing office building at 1515 Broadway into a $5.4 billion casino-resort in one of America’s tourism hubs.

Silverstein Properties’ $7 billion Avenir bid was also in Manhattan, near the Javits Center. Plans called for a New York casino operated by Rush Street Gaming, a 1,000-room Hyatt hotel, a ground-level community art gallery spanning 11th Avenue and more.

To this point, four significant bids have been eliminated or voluntarily withdrawn:

• Avenir
• Caesars
• Las Vegas Sands’ Long Island proposal
• Wynn Resorts’ Hudson Yards proposal

Sands’ projected cost was $7.6 billion and Wynn’s was $12 billion, meaning more than $30 billion in potential development has exited the New York casino race, with more hurdles still to go.

In the end, it wasn’t enough.

The Avenir’s appointed community advisory committee (CAC) swiftly voted 4-2 against the proposal on Wednesday morning, removing it from further consideration. Silverstein would have needed four affirmative votes to move on to the next round. All told, the meeting ran for less than 15 minutes.

Final votes from the CAC were:

• Angel Vasquez: Yes
• Richard Gottfried: No
• Matthew Tighe, Chair: No
• Madeleine McGrory: No
• Nabeela Malik: Yes
• Quentin Heilbroner: No

Avenir’s rejection was the second of the day, alongside Caesars Times Square approximately an hour earlier. That project’s CAC also featured Tighe and Gottfried, who voted against both projects. The same meeting room was used for both hearings.

Two of three Manhattan proposals are now defeated. Soloviev Group and Mohegan Gaming’s Freedom Plaza bid remains as the lone contender from New York City’s highest-profile borough from an economic and tourism perspective, although no vote date for that project has been set.

Silverstein did not immediately respond to a request for comment on the vote.

Many similarities between Avenir, Caesars hearings

The Avenir hearing featured many of the same hallmarks as Caesars in addition to location and CAC members. As with Caesars, the Avenir hearing started with a consideration of last-minute proposed amendments to the application. These included further changes to housing commitments and other provisions.

These amendments, however, did not post to the New York State Gaming Commission website until after the meeting concluded. They are dated 16 September on the website and 15 September in the 184-page submission. The committee spent little time discussing these amendments before rejecting them. Caesars also had its amendments quickly rejected.

But CAC member Angel Vasquez, appointed by New York Governor Kathy Hochul, spoke out against this amendment rejection and the process overall. He stated that the committee was “in conversations about the housing proposal” with Silverstein “up until last night”, and called those negotiations “incomplete”.

Fellow committee member Nabeela Malik echoed those sentiments. Malik was appointed by New York City Mayor Eric Adams and came with a prepared statement.

“As the mayor’s representative on this committee, I want to express my disappointment that today’s vote was scheduled earlier at the request of some CAC members,” Malik said. “By moving today’s vote forward, we have effectively lost two weeks of deliberation.”

The same statement was read to the Caesars committee by Laura Smith, also an Adams appointee. Neither Smith nor Malik specifically named the committee members who asked to move the votes. Gottfried, meanwhile, praised both the Avenir and Caesars CAC processes despite voting against both bids.

“It’s been as open and involved and fair of a process as I’ve seen in decades of involvement in state and local government,” Gottfried said at the Avenir hearing.

The high-powered bid was rejected by a 4-2 vote by its appointed community advisory committee (CAC). It is the first of the eight proposals to be officially axed from consideration for one of three available downstate New York licences. The proposal needed four yes votes from the CAC to advance.

Final votes were as follows:

• Carl Wilson, Chair: No
• Laura Smith: Yes
• Chris Carroll: No
• Matthew Tighe: No
• Richard Gottfried: No
• Peter Hatch: Yes

By voting against the project, CAC members indicated that they did not believe it had adequate public support. Of all the proposals, Caesars Times Square fielded the most public comments, more than 12 hours across two hearings.

Broadway and the theatre industry were the biggest opponents of the $5.4 billion project from the beginning. Despite pledges of collaboration and various partnerships with theatre groups, opposition from organisations like the IATSE union and Broadway Cares apparently proved too much to overcome.

“Caesars Entertainment would like to extend our sincere gratitude to the members of the Community Advisory Committee (CAC) for their time, dedication and thoughtful consideration throughout the evaluation process,” the company said in a statement to iGB. “We respect their decision and appreciate the opportunity to engage in meaningful dialogue about the future of Times Square.

“While we are disappointed by the outcome, our commitment to New York remains unwavering. We are proud of our strong partnerships across the state as anchored by our Caesars Sportsbook platform, where we continue to invest and innovate to serve New Yorkers.”

CAC process disjointed for Caesars Times Square

In some ways, the hearing on Wednesday was indicative of a process that has at times felt discombobulated.

Laura Smith, appointed to the Caesars Times Square CAC by New York City Mayor Eric Adams, spoke out about the disjointed process before ultimately voting in favour.

“As the mayor’s representative on this committee, I want to express my disappointment that today’s vote was scheduled earlier at the request of some CAC members,” Smith said. “By moving today’s vote forward, we have effectively lost two weeks of deliberation.”

Most CAC members were appointed to their committees, and had no experience with such processes. Because of this, they leaned heavily on the consultants hired by the state, and their availability to serve as a group was hard to nail down. This has led to a wide range of outcomes throughout the bids.

For example, Caesars hearings ran for 12 hours, while Metropolitan Park’s hearings ran for five. In another example, the Bally’s Bronx CAC held a dedicated meeting to propose amendments to its project, whereas the Caesars committee promptly rejected an amendment proposal with virtually no consideration on Wednesday. The amendment was submitted by Caesars the day before the hearing.

Conversely, former Assemblymember Richard Gottfried, appointed by Senator Liz Krueger, praised the process before voting no.

“I think it’s been an open and deliberative process, as good or better than anything I’ve seen in state and local government,” Gottfried said.

With two hearings completed, each project’s appointed community advisory committee (CAC) is free to hold a binding vote anytime before the 30 September deadline. The votes are to reflect each project’s public support, through both written and oral comments. A two-thirds majority approval from the local committee is needed to be considered by the state for one of three licences to be awarded by year’s end.

For Metropolitan Park and the other six bids inside New York City proper, that means four of six votes in favour are required. MGM is the only one of the eight total bidders with a five-member CAC, but it still needs four yes votes to advance.

Both projects have been seen as strong candidates for licensure for very different reasons. Empire City, the former Yonkers Raceway, has operated as a video lottery terminal facility since 2006 and was bought by MGM in 2019. Because of this history, the property has paid billions in taxes and had years to establish community relations. As an existing gaming site, it also has a significant speed-to-market advantage over ground-up projects.

Meanwhile, Metropolitan Park has enormous funds and political influence behind it thanks to billionaire Mets owner Steve Cohen. Its location on parking lots near Citi Field would have less construction and housing impact than the projects proposed in more central areas like Manhattan.

The project also survived opposition from its local representative, Senator Jessica Ramos. Her pushback led Cohen to enlist Senator John Liu, whose district encompasses a much smaller portion of the project than Ramos’. Liu championed the necessary rezoning legislation for Metropolitan Park, one of the most public examples of political manoeuvring in the New York process.

Early start, abrupt ending for Metropolitan Park hearing

The second hearing for Metropolitan Park was unusually early and quick compared to others. With a 10am local start time, the meeting ran for less than two hours. It also ended strangely, abruptly cutting off in the middle of a speaker’s comment.

The New York State Gaming Commission did not respond to a request for clarification on the ending.

In any case, supporters showed up to speak in favour of the $8 billion mixed-use project, which includes a range of amenities from a casino and hotel to an entertainment venue, 25 acres of park space and more. Cohen’s vision is to transform Citi Field into a “walkable village” of sorts. Queens cultural elements, like a local food hall and music museum, are prevalent throughout the proposal.

“This isn’t about a new sports and entertainment district. It’s about building wealth in communities that too often have been left out,” testified Bill Thompson, former NYC comptroller. “It’s about giving local businesses the capital and contracts they need to succeed and ensuring that equity is more than a slogan, it’s part of the foundation of this project.”

A dominant theme from supporters has been a desire to replace existing parking lots, which serve limited purpose. Unlike other sites that could be developed in other ways, Citi Field is unlikely to encounter an opportunity like Metropolitan Park anytime soon. As such, business groups have been among the biggest proponents.

“Thank you for the opportunity to be here today on behalf of the Queens Chamber of Commerce and to voice our strong support for Metropolitan Park,” said a spokeswoman for the group. “We would like to take a moment to thank Metropolitan Park for its strong support of small businesses.”

Dissent among Asian-Americans, Mets fans

Opposition to the proposal came on strong at the tail end of the hearing. Many of the last 10 or so speakers before the meeting ended were unaffiliated residents strongly opposed.

“If you want real community input, ask people who can’t take time off to be here,” said a resident named Sandy. “Not the people who are on Steve Cohen’s payroll in box seats with him at Citi Field, not the nonprofits who got money from him, and community members who have ‘hire me’ on their website.”

Sandy identified herself as a Chinese immigrant, which is notable. The Asian-American population is about 26% in Queens, the highest of any ethnic group. Many residents or representatives from Asian groups spoke in support of Metropolitan Park, and the majority of the loudest opponents were also of Asian descent. Organisers asked those holding opposition signs in Mandarin and other languages to take them down. This cultural split was also notable at the last hearing.

Some detractors, however, were self-proclaimed fans of the Mets who still opposed the project.

“I’ve been a Mets fan all my life, through highs and lows,” said resident Pat Barrett, in full Mets gear. “I have seen how Steve Cohen has improved the Mets, the fan experience. And yet I strongly oppose his proposal to build a casino next to the stadium. This is something that preys on addicts.”

No vote date for the project has been posted as of writing.

MGM supporters make last pitch for Yonkers proposal

To the north, about 75 speakers came to the MGM hearing on Tuesday night at the Yonkers Montessori Academy. If approved, Empire City would embark on a $2.3 billion renovation and expansion of the VLT facility, with a launch date of July 2027. Plans include a remodelled casino, a new porte cochere and a 5,100-seat entertainment venue.

But at the same time, MGM has said in its application that it would likely close if it is passed up for a New York casino licence. The VLT venue could not survive, stakeholders say, if three other fully operating casinos are nearby.

“We all know that if we don’t get this licence, that Yonkers couldn’t possibly compete with the other casinos as just a racino,” testified Yonkers Mayor Mike Spano. “In which case, if we don’t get this licence, our track would probably close.”

This theme was carried by droves of Empire City employees in attendance. Some testified about their experience with MGM while others stressed to the CAC the potential impact its decision would have on their jobs.

Vote for full New York casino licence now looms

While the facility’s long history in the community can help in some ways, it is a point of concern for others. Residents from the immediate areas alluded to the previous iterations of the property, when it was purely a racetrack, to a VLT, to now.

The same promises being made today, many said, are recycled from those previous iterations and still haven’t been addressed. Some also noted that the $2.3 billion investment proposed for the project is the lowest among the eight applicants for licences.

Instead of casino-related issues, most concerns expressed by opponents related to traffic, flooding and water diversion, and negative impacts from the entertainment venue. Of the eight proposed New York casino sites, Yonkers is arguably the most residential.

“We need a clear plan and a rock solid commitment that the casino expansion does not worsen these conditions, but rather contributes to long-overdue improvements,” said resident Jerry Longarzo.

At the conclusion of the hearing, CAC Chair James Cavanaugh announced the committee will meet for a vote next Thursday, 25 September.

The Missouri Gaming Commission reported that 10 sportsbooks had applied for sports betting operator licences by last Friday’s deadline. That could grow as the MGC said it would accept applications with a postmark date of 12 September. The commission received 734 applications in total for operators and suppliers as of the deadline day.

The MGC expects to issue temporary licences on 22 October.

Operators of the online sportsbooks can then begin customer signups and deposits on 17 November. After completing requirements for internal controls and house rules, operators can begin live wagering at midnight on 1 December. It will be the first new US market since North Carolina’s online sportsbooks went live in March of 2024.

Sportsbooks ready for the Show-Me State

The application period opened on 15 May, with the September deadline used for operators hoping to be ready for the 1 December go-live date.

DraftKings and Circa have already secured untethered licences after winning a competitive bid process last month. FanDuel applied unsuccessfully for an untethered licence. Despite FanDuel’s demonstrated market-leading capabilities in US sports betting, the commission liked the “different types of bettors” Circa might attract.

The operators are:

• Bet365
• BetMGM
• Caesars
• Circa
• DraftKings
• ESPN Bet
• Fanatics
• FanDuel
• Kambi
• Underdog

While the application deadline has passed, there are still multiple steps left for the hopeful operators. The commission will hold meetings on 23-24 September to hear from applicants. Applicants must turn in house rules and internal control details by 26 September.

The state will tax sports betting revenue at 10%.

Missouri sports betting partnerships

After missing out on an untethered licence, FanDuel announced it has partnered with Major League Soccer team St Louis City SC.

Bet365 partnered with Major League Baseball’s St Louis Cardinals, the team that helped steer the ballot initiative in 2024 to legalise sports betting. The Cardinals and other professional sports teams in Missouri launched the initiative after multiple years of legislative deadlock on the issue. Sports betting was narrowly approved by just over 50% of voters in November 2024.

BetMGM announced it has partnered with Century Casinos, while Fanatics paired up with Boyd Gaming, which has two Ameristar Casino locations in Missouri.

Penn Sports Interactive applied for a licence for ESPN Bet through its Hollywood Casino and River City Casino locations in the state. Likewise, Caesars applied for a licence through its Harrah’s Kansas City and Horseshoe St Louis casinos. Casinos can open in-person sportsbooks.

Underdog and Kambi have not announced market access partners.

The projects, which have been years in the making, are preparing to face binding votes from their appointed community advisory committees (CACs). A two-thirds majority is required from those local committees in order for projects to advance to state consideration. For the seven bids in New York City, that means approval is required from four of six members; for MGM Empire City in Yonkers it means four of five.

Three hearings took place on Monday – the second public hearings for Freedom Plaza and Resorts World NYC as well as one where the Bally’s Bronx CAC proposed amendments to the project in order to obtain various commitments.

Elsewhere, the Caesars Times Square and Avenir proposals are the first to be scheduled for votes, which are set for Wednesday morning. When the CAC process started, members were informed that the minimum obligation was that two hearings be held, with more to be scheduled as necessary. However, if votes are set for Caesars and Avenir, two bids with marathon hearings, that might indicate a reticence to extend the process into further hearings.

As such, years of hard work for all of the New York casino hopefuls could soon to be put to the test.

One last pitch for Freedom Plaza

Soloviev Group and Mohegan Gaming’s Freedom Plaza proposal near the United Nations headquarters in Manhattan is the biggest among the field in terms of scope and price. At a projected cost of $11 billion, it would include a casino, two hotel towers, two residential towers, a Museum of Democracy and more.

In a presentation prior to comments, Mohegan Chief Strategy Officer Nelson Parker said the developers’ polling has found that local support for the project has increased from 61% in December 2024 to 66% today. Awareness and publicity for the project, he said, has also increased substantially over that time.

But Parker eventually touched on the biggest sticking point for the project, the casino itself. At the project’s first hearing, on 28 August, an outpouring of residents supported the non-gaming amenities while condemning the casino.

On Monday, Parker reiterated that the project’s full benefits package would not be feasible “had it not been for the gaming facility licence”.

Party buses and angry residents

Both Mohegan and Soloviev sent dozens of employees to the hearing to comment in favour – Mohegan Sun employees said they came to New York from Connecticut via party bus.

They were joined in their support by several other groups, including labour unions. Freedom Plaza pledges 25,000 full- and part-time construction jobs, the most of any New York casino bid. The Local 3 electrical union in particular was well represented throughout Monday’s hearing, and the project has also had some political support.

“This proposal, in my opinion, will uplift the community, increase real estate values, create new green space to help the community here and a lot of other things that do nothing compared to all the other pending proposals,” testified Jerry Kremer, a consultant and longtime state assemblyman.

That said, local residents also made their way to the hearing at Scandinavia House, where they again voiced displeasure for the casino element. The influx of attendees attached to Mohegan and Soloviev was a fresh source of ire for many.

“I’m happy that Mohegan Sun employees and Soloviev employees have been here to talk about their life’s history and their success, and may that always remain so,” said a resident named Linda. “But that has nothing to do with putting a casino in the middle of a city and comparing that to one that was built in … Connecticut in a very rural area.”

As of now, neither a vote date nor additional hearings are scheduled for Freedom Plaza.

Strong arguments for Resorts World NYC

To the east at the Queens Borough Hall, Resorts World NYC also fielded its second hearing, about three weeks after receiving unanimous support from community groups and nonprofits at its first meeting in mid-August. Monday saw another three-hour display of support without a single dissenter.

Prior to the comment period, Resorts World Chief Legal and Strategy Officer Kevin Jones gave another passionate presentation, stressing the strengths of the proposal. These include a significant speed to market advantage, both for the casino and community benefits; an established site; local operating expertise; and completed labour and zoning agreements. It has been considered a frontrunner in the New York casino race since the beginning, for those reasons.

If licensed, the property now containing video lottery terminals would transition to a commercial casino while concurrently embarking on a phased, $5.5 billion expansion.

The property opened as a VLT facility in 2011 and has contributed billions in state taxes since then. Even without a full licence, it consistently ranks as one of the top-grossing casinos in the US, with annual revenue approaching $1 billion.

“We achieved all of this while reducing crime in our neighbourhood, increasing land values, improving the quality of life, while staying at the forefront of responsible gaming initiatives,” Jones asserted.

Addabbo: Resorts World a ‘proven commodity’

While the CAC is still tasked with holding a vote on Resorts World’s application, that feels like a formality by now. If the vote is to reflect public support, speakers made a rejection all but impossible across both hearings.

“Resorts World’s always been there for our community,” said state Senator Joe Addabbo, a prominent advocate of gambling legislation in New York. “So this is not a risk for this CAC to vote on, this is a proven commodity in Ozone Park. This is a proven commodity for our city, this is a proven commodity for our state.”

Dozens upon dozens of community groups and nonprofits testified glowingly about Resorts World, with many acknowledging their initial skepticism when it first opened as a VLT facility. But 14 years of community efforts goes a long way, especially compared to the other bids. Most of those have been drumming up support only for the past three years or less.

“They deserve a full licence, without a doubt, because they created the opportunity for gaming resources to be understood and appreciated by New Yorkers,” said state Senator Leroy Comrie. “It would be a travesty if the commission picks other people other than Resorts, who have set the standard.”

As with Freedom Plaza, neither a vote date nor additional hearings for Resorts World NYC are currently scheduled.

Bally’s Bronx CAC proposes several amendments

Before the public hearings took place, the day started with a closed-door session held by the Bally’s Bronx CAC. The meeting was called so that the committee could propose a series of amendments to the Bally’s proposal, which is the first time such a meeting has been held in the New York casino process. No other CAC has requested amendments to this point.

Overall, the Bally’s CAC outlined several amendments across nine categories from the project. These included:

• Commitments related to a board of directors for a community-led benefit fund.
• Contributions and priorities of said community funds.
• Commitments related to parks, conservancy and parkland alienation.
• Commitments for employment and hiring practices.
• Traffic and infrastructure changes.
• Commitments related to transparency and accountability.
• Environmental and water quality considerations.
• Commitments related to public safety.
• Specific parks to emphasise for parkland commitments.

Bally’s Bronx has already had two hearings, the second of which sparked political fireworks last week. The CAC is technically free to vote at any time before 30 September. But its decision to host an amendment hearing with several proposals instead of voting might indicate that the committee is still wavering in its support.

The company now has a deadline of 5pm on 19 September to respond. If the CAC does not receive a response by then, the amendments will be considered rejected. Bally’s declined to comment on the proposed amendments.

It is for those reasons that stakeholders SL Green, Caesars Entertainment and Roc Nation have argued that their proposal makes the most sense out of eight total submissions, including three in Manhattan. Additionally, the casino would be a $5.4 billion retrofit of an existing office building at 1515 Broadway, meaning the construction and housing impacts would be less than those of any greenfield project.

Conversely, the theatre industry has been the biggest opponent of the casino, which it views as predatory to its business. Broadway workers and labour representatives came out in full force to make their last stand against Caesars Times Square at the casino’s second and final public hearing on Thursday at the Broadhurst Theatre in Manhattan.

More than 175 speakers made their voices heard at the marathon hearing, which stretched six hours. Overall, the project’s appointed community advisory committee (CAC) heard more than 12 hours of public comments, the most of any proposal.

The CAC is now set to vote on Caesars Times Square on Wednesday at 10am, at the Times Square Alliance building. A two-thirds majority vote (four of six) is required for the proposal to advance to consideration by the state for one of three downstate casino licences.

Sharpton brought on for last presentation

Representatives from all three partners were in the room again on Thursday for another presentation, although it was not required. The focal points were reiterated: minimal construction impact; overflow benefits for local businesses; and partnerships with various theatre and community groups.

“Our project has the least possible impact on the surrounding community,” stressed SL Green CEO Marc Holliday. “We will not disrupt the streetscape because the building already exists. We will not displace critical housing opportunities, as 1515 Broadway is an office building.”

Two-time police commissioner Bill Bratton, the project’s security chief, has emphasised public safety that would be provided for the surrounding areas. He outlined a security plan that includes continuous surveillance and patrols. This, he said, would make Times Square “safer everywhere for everyone”.

Rather than using Roc Nation founder Jay-Z, SL Green and Caesars tapped longtime civil rights leader Reverend Al Sharpton to make the final pitch on Thursday.

“If this casino is established, it will be the first time we will have an institution on Broadway that has diversity on an ownership level,” Sharpton said. “And you’re not just given a token – Jay-Z is nobody’s token, he’s the token booth.”

Red versus purple for Caesars Times Square

Much of the public comment portion of the hearing was dominated by two colours: red for the anti-casino crowd, and purple for the supporters. A large portion of those donning red “No Times Square casino” shirts and signs were affiliated with Broadway.

“A casino threatens to overwhelm this unique neighbourhood character,” testified Patricia White, president of the Theatrical Wardrobe Union Local 764. “There are plenty of empty lots in the city. There’ll be jobs there. Go there.”

While Times Square is not primarily a residential area, locals from surrounding neighbourhoods have pushed back against the traffic, congestion and crime that a casino could bring to such a busy location. Stakeholders have pledged that local theatres and businesses would profit from this added traffic.

Caesars Times Square does not have the requisite amenities for its projections, with the idea being that overflow into surrounding areas would happen naturally. To help strengthen this promise, Caesars has pledged to extend its rewards programme for use at partnering businesses nearby. Still, many were not convinced.

“If you’ve ever been in a Caesars casino, I could sit in there in my pajamas and gamble, they don’t care,” argued resident Guy Kroll. “If I have a dollar in my pocket, they want it in theirs. They prey upon the people who don’t have money.”

Dissent not unanimous

While Broadway and its army of red was convincing, the minority holding purple “Yes Caesars Times Square” regalia held its own. Theatre unions came out strong, but other labour leaders made an opposite case.

“Every other proposed site would take away from a possible site for affordable housing,” testified Una Adams, director of organising for Laborers Local 79. “Our members need affordable housing and I am hoping that my child can grow up living in New York City living in affordable housing, which can be built on one of those other sites.”

The Caesars CAC is now tasked with considering multiple factors related to a project that could have the most impact in terms of location. For example, there would be no housing displaced, but none built. The other two Manhattan bids (Freedom Plaza and Avenir) both have housing components.

Union jobs would be created, but the project’s pledged total of 3,000 construction jobs is the lowest of any bid. But in terms of casino operations, Caesars is near the top as far as experience, alongside MGM, Hard Rock and Genting.

“I don’t think it’s just about gambling, I think it’s more about steady paycheques, more opportunities and giving local businesses a boost,” said a resident named Rita.

If The Coney’s first hearing 26 August was rowdy, then its second hearing on Wednesday at the Coney Island YMCA bordered on losing control.

At two different points, police had to step in to restore order. Several speakers on both sides of the issue broke into screaming matches, threw up middle fingers and brandished hand-written signs. It seemed as though most speakers started calmly and became increasingly furious as their two-minute allotments went on.

All told, the spectacle lasted more than four hours. It would have run longer if not for a hard cutoff by the project’s appointed community advisory committee (CAC), which is now tasked with casting a binding vote to decide whether the $3.4 billion mixed-use project continues in the process.

The committee faces a 30 September deadline to cast its vote, which is supposed to reflect the project’s level of public support. Four of six CAC members must approve the project for it to advance to the next round. More hearings could be scheduled, but there are none currently listed.

The discontent of the community was palpable on Wednesday and, for Thor and its partners, approval based on local support seems unlikely at this point.

The Coney gets no love from city, state officials

The furore that was to escalate throughout the evening began with testimonies from elected officials, all of whom were opposed. These included Senator Steve Chan, Senator Sam Sutton and former City Council member Ari Kagan.

Chan explained that he voted in favour of the competing Metropolitan Park proposal in the state Legislature because the stakeholders behind it engaged him personally. Although he opposes casinos and gambling, he ultimately supported it because of that outreach. But for The Coney, “nobody ever explained” the benefits in the same way, he said.

Kagan was more animated, decrying the casino as an erosion of progress he worked for on the council.

“The only thing a casino will bring to Coney Island is increased congestion, huge traffic, more crime, especially muggings against seniors,” Kagan said. “Tons of mental issues, tons of bankruptcies and don’t tell me about jobs. You can go to Atlantic City to see how many jobs were created for local residents.”

Sutton spoke briefly in opposition, before he was interrupted by the arrival of police, followed by a short recess. This moment set the tone for the rest of the hearing.

Strong start, but only temporary for The Coney

The first half-hour of the hearing encompassed the bulk of support. Many of the first few waves of speakers brandished “Yes to The Coney” signs, hats and T-shirts. The green font and lowercase styling of the logo was reminiscent of the Nathan’s Famous Hot Dogs logo, a Coney Island staple.

“I happen to be for the casino,” said a resident named Jay. “Not saying to get rid of the Coney Island we all know and love, but it’s just an expansion, it’s an extension, an add-on. Plus we need jobs. YGS – that means ‘You Gotta Survive’ and, in order to do that, you gotta create opportunities.”

As has become common in this process, the motivations of the proponents came under question. Many accused supporters of being bought, with the figure of $80 being mentioned throughout. Some also griped that supporters stayed in the building, not allowing opponents to cycle in. CACs for several bids have submitted such accusations to state gaming regulators, but that was not mentioned on Wednesday.

That said, there were some seemingly unaffiliated residents who supported The Coney.

“Investing in this community means a brighter future for our children to uplift this community,” said resident Sheila Smalls. “I am very excited about this community agreement, $200 million will go a long way and I’m sure they have much more to contribute.”

Smalls was alluding to the $200 million community-led trust fund that The Coney is pledging. It is perhaps the biggest community sweetener, along with a separate $75 million pledge toward emergency services in the area.

Residents call on CAC member to sway votes

The opposition to The Coney was perhaps made starker by the relative lack of union reps and business groups during the hearing. Resident after resident stepped to the podium, and a fair number used the full allotment of time.

“It’s a direct line to our ruination, it is a direct line to a very financially unstable neigbourhood,” said Patrick Wall, one of several officials to testify from the group Coney Island USA. “It’s going to destroy what we have left. Please, if you are the stewards that we want you to be, please protect us.”

Coney Island is a small community, and the CAC members were known personally by many. One member of the committee who had been critical of the proposal at its first presentation was Marissa Solomon. Solomon, appointed by Assembly member Alec Brook-Krasny, had long advocated against The Coney prior to the CAC process.

“We just need two of you to join Marissa [Solomon] to vote no and we could put this issue to bed today,” resident Pat O’Brien said. “All it takes is three of you to vote no and the application does not move forward to the New York State Gaming Commission.”

However, none of the residents, union leaders, community organisers or other attendees could match the vitriol between opposing local politicians that began the hearing. At one point, the CAC announced police had been called to help calm the situation at the American Turners building on Clarence Avenue. This was followed by a short recess.

In some ways, the political back and forth is symbolic of the proposal itself. The only reason the bid made it to the CAC phase was because of two interventions by New York Mayor Eric Adams. In the first instance, he lowered the threshold of support needed for a city council vote, and he later vetoed another down vote altogether.

The Bally’s project is one of eight applicants for three downstate New York casino licences to be issued by the state by year’s end, but it can only proceed for consideration if the CAC votes to support it later this month.

The chief opponent of Bally’s Bronx is City Council member Kristy Marmorato. She has criticised the project at every opportunity, especially in light of Adams’ assistance. On Tuesday, Marmorato gave an impassioned speech decrying the casino for several minutes, well beyond the two-minute threshold given to non-officials.

“From day one, this project has failed to answer real concerns of our community,” she said. “What’s being proposed is the country’s largest casino, to be built on public parkland. This will fundamentally alter life in our neighbourhood as we know it.”

Septimo, Tapia offer counterpoint in support

To Marmorato’s point, Bally’s Bronx does have ambitious plans. Its $4 billion price tag would represent the largest private investment the borough has ever seen. At 500,000 square feet, the casino would be the largest in the US by size, but there are multiple properties with more than 3,500 slots, as is proposed.

In any case, the size and scope of the project has the potential to be a massive economic driver for the Bronx, New York City’s poorest borough. That is why supporters like Assemblymembers Amanda Septimo and Yudelka Tapia, who also passionately testified for several minutes each, have not been pleased with Marmorato’s opposition.

“At its core, this project is the largest economic development project in the borough’s history,” Septimo said amid the ruckus. “There has never been development this big in our borough’s history. I want to focus on the fact that this is an opportunity for our community that other communities get all the time.”

Septimo’s sentiments are nearly identical to the reasoning given by Adams for keeping the project alive. The mayor said in a statement that he vetoed the city council vote because the denial “deprive[d] the Bronx of the ability to even compete” for one of the three available licences. Of the eight bids, Bally’s is the only one located in the Bronx.

The project is pledging 15,000 construction jobs and 4,000 permanent positions, which are on the higher end of the field of bids. If approved, the casino would become the borough’s second-largest private employer.

“These are union jobs with health care, benefits and real career pathways that can sustain Bronx families and that’s my priority, our families,” Tapia said.

Taking the good with the bad for Bally’s Bronx

For Bally’s, its relationship with the Bronx is two-sided. The negative side is its seemingly inevitable trudge forward that no political manoeuvring or public opposition can stop. The positive comes from its partnerships with local groups, as well as its $8.5 million donation to save the local Preston High School from closure. Both of these sides were illustrated on Tuesday.

“Bally’s plan ensures that more Bronx children grow up in environments that nurture, not endanger, their potential,” testified Jennifer Santos, general manager of the local Legacy Volleyball Club. “I ask you to approve this project for the sake of our kids.”

Numerous Legacy employees, athletes and parents of athletes also spoke in support, perhaps 20 or more. A similar number of Preston students and parents spoke at the previous hearing.

The community board phase, in which each New York project went before its applicable municipal groups, was also divided when considering Bally’s. Community Board 9, for instance, was supportive.

“Beyond employment, the proposal also includes meaningful investments in public space and infrastructure improvements. Community Board 9 stands firmly behind this project,” said Mitchell Halpern, chair of CB9’s land and zoning committee.

Who is opposing the Bronx casino?

Community Board 10, however, was opposed, and voted against the project by a hefty margin in March.

“We are opposed to a casino in Ferry Point,” testified former CB10 member Andrew Tirico. “I’ve also given you two petitions, 880 signatures and 30 written statements by people who live in the community. When CB10 held their two hearings, their vote was overwhelmingly against having a casino in Ferry Point.”

The residents who were opposed seemed like they had been put in a tough spot. None seemed to dispute the fact that the Bronx lags behind its neighbouring boroughs and that it has limited career opportunities. Many were current or former union members who sympathised with their labour colleagues.

But the combination of the casino element, Bally’s history as a company and the proposal’s unseemly political connections was too much for many to accept.

“So what you’re gonna get a job? You do not live here, we live here,” said resident LaVerne Francis. “We do not need that kind of problems around here. And Kristy [Marmorato] knows it and that’s why she voted against it.”

Under state law, the bid’s CAC has now completed its obligation of hosting two hearings. The committee may choose to hold more before its 30 September vote deadline, but only if deemed necessary. A two-thirds majority vote of approval from the CAC is required to advance to state consideration.

Supporters and opponents of the $8 billion mixed-use development waved signs, chanted slogans and cheered and jeered for much of the three-hour hearing. The next hearing is set for 10am local time on 16 September, at the same location.

Two hearings is the minimum obligation for the project’s community advisory committee (CAC). After that, it may choose to hold a binding vote or host more hearings if deemed necessary. The vote deadline is 30 September, with two-thirds approval from the CAC required in order to proceed to state consideration. Eight applicants are vying for three downstate New York casino licences which will be awarded by year’s end.

For Steve Cohen, the hedge fund billionaire who owns the New York Mets, Metropolitan Park would be the latest and biggest splurge in what has been a multi-year spending spree since buying the team in 2020.

Cohen has spent big on players – Juan Soto’s MLB record $765 million deal being the chief example – and has now turned his attention to transforming 50 acres of parking lots around Citi Field into a sprawling mixed-use complex. His chosen partner for this mission is the Seminole-owned gaming and entertainment giant Hard Rock International.

The project is squarely in the mix for licensure due to Cohen’s clout and spending power, but it faces hurdles. These include fierce opposition from local senator Jessica Ramos and related political fallout, as well as the issue that another very strong bid (Resorts World NYC) also has a Queens location.

So far, Metropolitan Park has passed through a litany of board votes with high approval rates. But many residents also made their opposition heard on Tuesday and its facade of support may be showing signs of cracks.

Addressing questions from the CAC

Leading another presentation for the project on Tuesday was Michael Sullivan, Cohen’s chief of staff. He sought to address three specific questions raised by the CAC at a presentation on 4 August. The first was a new entryway and path to better accommodate for pedestrian and bike traffic, which would replace a vehicle on-ramp.

Second, CAC member George Dixon had asked about the possibility of including a soap box derby concourse. Due to its size, it could not be incorporated into the existing design, stakeholders said. But they pointed to the possibility of building one elsewhere using funds from a community-led trust. And finally, Sullivan showed renderings for a new “vendor plaza” that would replace a bus parking lot, which would be used as a temporary food court for the project’s construction workers.

“We humbly believe this is the best site in New York City for one of these gaming licences. It’s the ideal place to tie together these great sports venues and build something beautiful that we can all be proud of,” Sullivan said.

The venues he was alluding to were Citi Field; the Billie Jean King National Tennis Center, which just hosted the US Open tournament; and Etihad Park, set to open in 2027 as the new home of the NYCFC soccer franchise.

Also speaking on behalf of the project was its outreach director and former city council member, Julissa Ferreras-Copeland. She reiterated the project’s success with various votes, including community boards, city council and the state legislature.

“With this meeting we will have now had 18 public hearings on this project,” she said. “Eighteen times our community has shown up and expressed their support.”

High level of support from local officials

The first block of public comments featured a number of endorsements from local figures.

“This is a once-in-a-lifetime opportunity for Queens, I can’t encourage it enough,” said former city councilman Daniel Dromm. “I have lived in Queens almost all my life and we have never had an opportunity like this before.”

That emphasis on the economic opportunities for Queens was mentioned frequently by others. This highlights a general theme of the downstate New York race, in that the bidders outside of Manhattan (five of eight) have argued that their communities are more deserving of development and growth opportunities.

That said, Metropolitan Park has the potential disadvantage of also being in the same borough as Resorts World, which is considered perhaps the biggest frontrunner. It remains to be seen whether state officials would be willing to award two of three available licences to one borough.

“These things don’t happen every once in a while, this is a once-in-a-lifetime, generational project,” testified Tom Grech, CEO of the Queens Chamber of Commerce.

Outpouring of diversity for Metropolitan Park

The diversity of the speakers and their groups was notable, and there were examples of comments both for and against. Queens is nicknamed “The World’s Borough” for its high level of diversity and immigrants. According to Data USA, four different ethnic groups garner at least 10% of the borough’s population, far above the US average.

Some speakers applauded this and argued that Metropolitan Park represents an opportunity for all.

“Our people, who were considered essential workers, have been, with a few notable exceptions, invisible and overlooked when it comes to transformational investments,” said Frankie Miranda, CEO of the Hispanic Federation. “That is why Metropolitan Park is essential to the future of these communities.”

Of all the ethnic groups in Queens, the Asian population is the largest at over 25%, per Data USA. It is something of a cultural stereotype that Asians love to gamble, partly due to the fact that China’s Macau region is the world’s largest casino market by revenue. This stereotype was explored in-depth by the New York Council on Problem Gambling in 2022.

Many speakers, including Community Board 8 member Simon Pelman, who runs an assisted living facility with a majority Asian population, said the casino complex would be a welcome amenity and “if [Asian residents] want to gamble, they certainly have the right to do that”. But others were less supportive.

“No community benefits agreement could offset the harm of this luxury complex, which will compound the rampant speculation that is already displacing communities of colour in Queens,” said Annie Lowe, an attorney for the Asian American Legal Defense and Education Fund.

No surprise to see residents opposed

It has come to be expected by this point in the licensing process that local residents would be the ones most opposed to Metropolitan Park. This has been the case for nearly every bid, with the exception of Resorts World, although there was a notable lack of unaffiliated residents at its first hearing.

The level of pushback seemed to rise as Tuesday’s meeting went on, with opponents frequently jeering or erupting in applause based on speakers’ sentiments.

Those detractors who did make it to the microphone blasted the process, blasted Cohen’s billionaire influence, and even blasted the committee, which wasn’t received well. By the late stages, the online streaming window for the hearing was nearly completely covered with anti-casino signs.

“This whole community input process has asked us as a community the question, ‘What should we beg the rich guys for?’ That’s what this process has been,” said resident Zeke Dunn. “We don’t need to beg rich guys for parks, this is backwards.”

Stakeholders are proposing a 25-acre public park as a major selling point, but that does not seem to be landing well locally. Instead of endorsing the project because of the park, residents largely turned the question around and asked why a casino was necessary for such development. This has been a common question for detractors of all bids.

“Don’t let this obvious money grab, by those who don’t care about anything except for their own profits, destroy Queens families,” pleaded resident Victoria Hoyle.

Approximately 200 speakers went before the project’s community advisory committee (CAC) throughout the nearly five-hour hearing, held at the Javits Center. The six-member CAC has now fulfilled its obligation to host two hearings, but it may choose to host more if deemed necessary before 30 September.

That is the deadline for the CAC to hold a binding vote, with four of the six members required to support it in order for Avenir to receive consideration from state officials for one of three licences to be awarded. No other hearings have yet been scheduled, meaning the fate of the project is technically now in the local committee’s hands.

Monday’s hearing largely mirrored the first which was held on 27 August, but with about double the number of speakers. The committee asked attendees who came to the first meeting to refrain from speaking again, although dozens reiterated their previous testimonies.

Avenir, French for “future”, is one of three Manhattan bids, with the site located at 41st Street and 11th Avenue. Silverstein is well known as a residential landlord in the area and as the chief redeveloper of the World Trade Center site. The company has owned the Avenir site for years and says a casino would be necessary to anchor an ambitious $7 billion mixed-use venture there.

If no other hearings are held, the committee could face a tough decision. Its vote, per state guidelines, is supposed to reflect the project’s level of public support. Through the more than 10 hours of hearings and 300-plus speakers, the level of support from unions, business groups and community organisations has been high. But the local residents closest to the site have largely spoken in opposition.

A potential answer to a Javits conundrum

Since the New York casino race first began, Silverstein has been arguably the most aggressive bidder.

The company has changed and added to its proposal several times, from altering the building design to acquiring new partners and increasing housing commitments. It is also engaging with a litany of community groups as it hopes to differentiate itself in the city’s most competitive borough. With Manhattan already a centre of tourism and entertainment, stakeholders argue a luxury casino complex would be additive.

“The economic case for the Avenir rests on the proven value of mixed-use development in strengthening urban districts,” testified Dr Sam Chandan, director of New York University’s Chen Institute for Global Real Estate. “One of the clear lessons of the post-pandemic recovery is that single-use neighbourhoods are more vulnerable to shocks. By contrast, districts that combine residential, hospitality, cultural and commercial activity are more vibrant, recover more quickly and generate more stable employment and tax revenue generation over time.”

Both of Avenir’s hearings were held at the Javits Center, which is pitched as a lynchpin for the project. There are currently no major hotels or accommodations in the immediate vicinity, limiting the number of events and conferences that can be held there.

Silverstein has enlisted Hyatt to manage a 1,000-room hotel at Avenir and is pledging a total of 2,000 housing units. Of those, approximately 500 are designated as affordable. Both of these developments could bring more traffic to Javits and the immediate area, something that numerous speakers mentioned across both hearings.

“For 20 years we’ve known about this Achilles heel and for 20 years we have failed to fix it, until now,” said Community Board 4 member Bryan Sloane, in reference to Javits. “This project is the solution we’ve been waiting for.”

Community partnerships key for Avenir casino

Two of Avenir’s biggest community partners are Covenant House, an organisation assisting homeless youths, and Rethink Food, a nonprofit that redistributes commercial food waste. Employees, beneficiaries and affiliates for both groups have been prominent throughout proceedings.

“The Avenir will not only create affordable housing for New York City youth, but the Avenir will also create jobs so that the youth who we help overcome homelessness and exit our shelter system and sustain their housing,” pledged Renata Alexis, senior vice president for Covenant.

Unions and trade groups of all types have also shown support for the bid, but that is true for the entire field of casino bidders, as all applicants have pledged to use union labour for both construction and permanent jobs. The Avenir is proposing about 8,000 jobs total, right around the middle of the pack of bidders.

“Mr Silverstein’s Avenir project is one example of casino developments in New York City that will ensure New Yorkers have access to permanent, professionally trained, good-paying jobs and strengthen the city’s and state’s economics,” said Santos Rodriguez, chief of staff for the Building & Construction Trades Council of Greater New York.

The war for Manhattan

When it came to local, unaffiliated residents, they boiled down to two general groups: those who lived in Silverstein buildings and were supportive, and those who lived in other housing nearby and were opposed.

An outpouring of residents from Manhattan Plaza, a subsidised housing complex in the area, were especially vocal in their disdain. The majority of these speakers were of retirement age. Many lamented that the work they’d put into improving the neighbourhood over the years has attracted what they view as predatory development. They argue the level of security they’ve built would be eroded again by a casino.

“Anyone that’s coming up to speak to you directly should be from this neigbhourhood. If you’re not from this neighourhood, you do not understand and you are really doing a disservice to Hell’s Kitchen, to you and actually to themselves,” Manhattan Plaza resident Steven Fenning told the commmittee.

As is the case with the Freedom Plaza bid near the United Nations headquarters, residents have questioned why a casino is necessary for development. Silverstein has largely made its money as a landlord, meaning it has the ability to develop successful non-gaming properties. But the plot has sat vacant for years and will continue to sit if not awarded a casino licence.

“This site has been a pit for so long because Silverstein has waited for the political wind to be in his favour, not for any other reason,” said resident Sally Taylor. “You might consider this to be an emotional argument, but when people actually live in a place, it is emotional.”

One resident joked that he asked ChatGPT whether casinos benefitted nearby communities. He said its response was that this was only true for community-owned casinos, which would not be the case here.

Onward and upward for the next generation?

Countering the Manhattan Plaza residents were those from Silverstein’s Silver Towers complex and others in support. Many of these residents were of younger age, advocating the need for advancement rather than prevention. After all, it is midtown Manhattan, perhaps the busiest area in the entire US.

“I just want so say that this is not Oklahoma, this is New York City,” resident Ebony Mackay said directly after a disgruntled speaker. “It’s going to be highly trafficked at all times.”

The desire for economic opportunities for the younger generation has been a theme of nearly all of the New York bids. According to United Way of New York City, 50% of working-age households in the city “do not have incomes that cover basic needs, such as housing, food, health care and transportation”. Multibillion-dollar casino developments, despite their drawbacks, are proving to be attractive among younger residents in search of work.

“I did not move here for peace and quiet, or the nature,” said a resident named Ben. “I moved to the city and continue to love the city for what it represents – fast-paced energy, the economic capital of the world, a place of possibilities for anyone coming from any economic background.”

The project is located within walking distance from the United Nations headquarters in Midtown. Freedom Plaza is one of eight downstate New York casino proposals jostling for three available casino licences to be awarded this year. It is perhaps the most ambitious project of the field, and sports the highest price tag. Its pledged total of 17,000 combined construction and permanent jobs is also the largest of any proposal.

If selected, Freedom Plaza would transform a 6.7-acre plot along 1st Avenue into a small community. Plans include a casino, two hotel towers, two residential towers, a so-called Museum of Democracy, and nearly five acres of public park. Soloviev CEO Michael Hershman said in a presentation on Thursday that the parcel is “probably the largest piece of undeveloped property in Manhattan”.

Hershman’s comments came before the first public hearing for the project at Scandinavia House. The five-hour hearing was organised by the bid’s community advisory committee, tasked with gauging the public support for the proposal. Four of six committee members must vote to approve the project for it to advance. The next hearing is scheduled for 15 September, and the vote deadline is 30 September.

Approximately 140 speakers were heard by the CAC, encompassing trade groups, potential vendors and local residents. Supporters touted Freedom Plaza’s litany of benefits and amenities; many residents did too, questioning why a casino was then necessary.

Pivotal project for Soloviev, Mohegan

Prior to public comment, Hershman was joined in his presentation by Mohegan CEO Ray Pineault and other stakeholders. Stefan Soloviev, the eccentric heir to the company founded by his father, Sheldon Solow, was not present. Hershman pledged Soloviev would try to attend the second hearing.

“We’re not Las Vegas and as I said, we’re not Hollywood,” Hershman told the crowd. “Because we have children and grandchildren that live in the neighbourhood, we want what’s best for the neighbourhood as well.”

The site was purchased by Soloviev in 2007. For a century prior, it had been an industrial plant for Con Edison. Soloviev demolished the plant and spent millions cleaning the contaminated site. Solow proposed a development plan for the area in 2008, which never materialised. Freedom Plaza is the reincarnation and adaptation of those plans.

Among the proposed benefits is a public equity offering, also being proposed by Bally’s Bronx. Bally’s just closed on a similar public investment programme for its Chicago casino, which could chart a roadmap for such efforts in New York.

“We also, as you may have heard, are setting aside, in a preferred fashion, equity for community members, community members being residents of New York City as well as New York City pension funds,” Hershman said.

For Mohegan, Freedom Plaza represents a crucial expansion opportunity. The company’s Mohegan Sun casino is incredibly successful, but its Korean resort was seized by creditors in February and its operating contract for Virgin Las Vegas was not renewed last May. New York could be a reset opportunity for the tribal-owned outfit.

“We’re not a corporate board that’s worried about our next earnings call,” Pineault said. “We’re worried about what’s best for the organisation for 13 generations to come.”

Substantial parkland, on-site housing among key benefits

Two of the most-hyped aspects of the project are its housing commitment and its park space. There are just more than 1,000 residential units planned across two towers. Of those, 513 are deemed affordable based on different incomes. This 50% affordability rate was lauded by stakeholders, as the original 2008 site proposal was 100% market rate. It is the only New York casino bid to include housing within the project itself.

“I think I heard of another [bid] that was promising to do housing off-site, maybe another one that was promising to do housing over the next 20 years. We do not need more housing over the next 20 years, we need housing right now,” said Jamie Smarr, CEO of the NYC Housing Partnership and a member of the project team.

Smarr was referring to the Avenir and Resorts World NYC bids. Avenir is proposing housing units at buildings spread throughout Manhattan. Resorts World is pitching tens of thousands of workforce housing units to be built in the coming years.

With regard to parks, it was noted several times that Community District 6, which encompasses the site, is near the bottom for parkland and tree coverage in the borough. At just under five acres, Freedom Plaza’s parks would be a massive addition to the community.

“Just to put that in perspective, that’s very similar in size to Bryant Park,” said Nelson Parker, Mohegan’s chief strategy officer. “It would be very well maintained, landscaped, secure, lit, private funded, we’ll do all of that.”

Unions, community groups in support of Freedom Plaza

As the most ambitious project economically, it was not surprising to see a large contingent of trade and community leaders show their support for it on Thursday.

“When I walk past it every day, all I see is a hole in the ground,” said Local 3-affiliated electrician Steven Fraser. “I can’t imagine a better project for that space.”

Three of the eight bids are Manhattan-based (Freedom Plaza, Avenir and Caesars Times Square). In Freedom Plaza’s case, a commitment of 17,000 total jobs would offer new opportunities for workers across the city, not just the immediate area.

“I urge you to weigh not only the economic development and environmental impacts, but also the profound human impact this project delivers,” said Nelson Gonzalez, on behalf of the HOPE employment program.

The project’s connection to the UN and its high-value international tourism is a selling point. Las Vegas is currently grappling with a visitation decline and US President Donald Trump’s trade policies have bristled some would-be international travellers. But world leaders could be amenable to a luxury stay during the UN General Assembly, held every September. This year’s session starts on 9 September.

“Everybody in this room will agree with me that the worst week to be in Manhattan is UN General Assembly week, with the congestion and everything,” argued attorney Alex Estes. “Would it not make sense to have a hotel for the world leaders to stay at directly next to the UN and then take away the congestion from the rest of Manhattan?”

Buttressing this point was Mike Balboni, a homeland security advisor to the state. His view was that the “great confluence” of security forces would provide “deterrence and detection and protection”.

Casinos and national security concerns

Others were unconvinced of the security pledges, both in regard to general casino crime as well as potential international incidents.

“We don’t want it, it is next to a terrorism target,” said local resident Stacey Roush. “The UN, putting a casino with open space is like, ‘Come, send me a drone with a bomb!'”

While perhaps hyperbolic, Roush does highlight a concern related to casinos and national security. For multiple years there have been efforts to bring a casino to Tysons, Virginia. Tysons is a suburb of Washington, DC that is densely populated with federal employees and contractors.

In January, 109 security officials sent a letter to Virginia lawmakers calling a Tysons casino “an unacceptable health and national security hazard“. This group of signatories included former Congress members, CIA officials and Defense Department leaders. Compulsive gamblers can be extorted or blackmailed by bad actors, which is especially worrisome for government employees, they wrote.

Ain’t no love in the heart of the city

Residents in the immediate vicinity of the project were largely opposed. With some exception, this has been the general theme for nearly all New York casino hearings held thus far. Accusations of paying for endorsements and denying hearing entry to opponents were cited on Thursday and have been common throughout proceedings.

Prior to the start of the state process in late June, each project was considered by local community boards. These boards gave non-binding votes that were expected to play a role in future considerations. Manhattan’s Community Board 6 rejected land-use provisions for Freedom Plaza in early 2024.

“We passed resolutions in opposition to this casino, because behind their fancy spin is a truth that we all know: this project is wrong for our neighbourhood, wrong for our families and wrong for the future of east Midtown,” testified Kyle Athayde, former chair of CB6.

The range of proposed amenities was lauded by many detractors. Community members stressed they were supportive of housing, parkland and museums. Why, then, must a casino be included? The phrase “just not a casino” or similar variations were common throughout.

“I also find it very interesting that they’re proposing a Museum of Democracy, but when I walked in here today I was not allowed to use my sign and I was told to put it away,” said resident Dawn Heimer.

Her sign, unfurled for the committee, was bright red with the words: “Say NO to the casino!”

The Javits Center, thus, was the forum of choice for Avenir’s first public hearing Wednesday, hosted by the project’s community advisory committee. With a deadline of 30 September, the six-member committee must host at least one more hearing before casting a binding vote. The vote is to reflect the amount of public support and Silverstein needs at least four members’ backing in order to advance.

Out of eight bidders for a casino licence, Avenir is one of three located in Manhattan, the most of any New York City borough. As the region with the highest population density in the city and in the country, many communities and interests stand to be affected by a multibillion-dollar casino development. Unsurprisingly, the two Manhattan-based hearings (Avenir and Caesars Times Square) have been the longest of any held thus far.

Over the course of the five-hour hearing on Wednesday, more than 100 speakers touched on every facet of the proposal, both positive and negative.

Silverstein has engendered goodwill with Manhattanites as a landlord in the community and because of its role in redeveloping the World Trade Center site after 9/11, as mentioned by many speakers. But that goodwill was far from unanimous.

Addressing New York casino concerns head-on

The Avenir partners gave a thorough presentation prior to public comment, geared toward specific points the CAC raised from a previous presentation on 16 July.

First to present was Silverstein CEO Lisa Silverstein, whose father Larry founded the company in 1957. Silverstein owns the now-vacant land parcel on the corner of 41st Street and 11th Avenue. The developer has built multiple residential buildings nearby, but says a casino is the only way to develop that land because of higher costs and infrastructure needs.

Avenir is arguably the New York casino bid that has evolved the most since its introduction:

• The design changed from two conjoined structures to a single one.
• Partners Destinations by Hyatt and Rush Street Gaming have been added.
• Affordable housing commitments have been raised to 500 units.
• A free community art gallery is also planned for the ground floor, encompassing a whole city block along 11th Avenue.

The project now sports a $7 billion price tag.

“Our site is fully zoned and shovel-ready,” Silverstein said. “There is no converting, tearing down, rezoning or moving tenants around that is required. It is an empty lot in a low-density area. This area of the West Side needs the economic driver to further transform this neighbourhood, activating it with more vibrant life and commerce, all of which brings more safety.”

To emphasise community engagement, Silverstein COO Dino Fusco said a separate conference room had been reserved for any follow-up questions after the hearing. The company’s “very long history building residential properties” should assuage concerns about housing commitments, Fusco said, which is a hot-button issue for the borough.

Traffic and safety plans for an urban NYC hub

The other biggest issues related to Avenir are traffic congestion and potential crime. These concerns were addressed in the presentation, but were still among the most-cited points from detractors, namely local residents unconvinced of the promises.

Connor Lacefield, an environmental consultant, said the ideal transportation breakdown to access the property would be:

• 40% by subway
• 25% on foot
• 20% by car
• 15% by bus

This is in stark contrast to bids outside Manhattan and Coney Island, which are promoting thousands of parking spots. Silverstein is proposing a free shuttle service to prevent bottlenecks and offering other incentives to decrease car travel. But there would still be impact from added car arrivals, especially at intersections surrounding the site.

“The intersections in this area would be the most affected by the Avenir, but even here, the Avenir’s vehicle trips would be a very minimal addition to the neighbourhood traffic, only about 2% of the total trips,” Lacefield said.

Silverstein security chief Bill Dacunto laid out some added security benefits, including an NYPD substation, on-site EMTs and medical facilities and partnerships with local community safety groups.

Rush Street CEO Tim Drekhoff spoke for his company’s role in managing the Avenir casino. Original partner Greenwood Gaming is still with the project, but has not been as prominent in proceedings. Rush Street operates regional casinos, mostly in or near big cities like Chicago and Philadelphia. The company has also operated Rivers Schenectady in upstate New York since it opened in 2017.

“We’ve never acquired a casino, we develop them from scratch,” Drekhoff said. “We’ve been the first casino in each one of our host cities. We’ll bring that specialised experience to the far West Side.”

What groups are most supportive of New York casinos?

The New York casino bids have unearthed a somewhat common theme: unions, business groups and vendors are supportive; residents of the actual site communities largely are not. Having developed several high-rises nearby, Silverstein is well-established with unions, which have been a prominent force throughout the process.

“Silverstein Properties has been a steadfast ally of the building trades for decades,” said Mike Vastarelli, business representative for the NYC District Council of Carpenters. “Their commitment to union labour isn’t just talk, it’s action. Year after year, project after project.”

One of the project’s biggest outreach efforts relates to food insecurity. If selected, Avenir would partner with Rethink Food, a nonprofit that redistributes commercial food waste to underserved communities. Rethink, in turn, is partnered with numerous similar organisations throughout the city. A fair number of Avenir supporters were from the food industry.

“When we heard there was going to be a casino project, we reached out to all of the providers, everybody who had a proposal, and not a single one responded to our email,” Rethink CEO Matt Jozwiak said. “[Avenir] came to us and said, ‘We’re concerned about excess food, we’re concerned about sustainability, we’re concerned about affordability and we want to partner with Rethink Food to make as many meals for low-income New Yorkers as possible.'”

Rivers Schenectady also sent a contingent of staff roughly three hours south to Manhattan. Among them were HR workers, casino employees and security guards who raved about Rush Street’s career-building culture.

Local residents make their opposition heard

While there were some residents of Silverstein buildings who heaped praise, many others were critical. Speakers were asked to give their ZIP code, and it seemed as though the majority from nearby 10036 and 10018 were opposed.

“I’m going to ask our elected representatives that we vote for, not for people who live in other places, to please defend us against this predatory business,” said local resident Jacqueline Lowry.

Many argued that Silverstein’s existing residential buildings offer proof that it can develop properties without casinos. Although the project’s housing commitment was raised to 2,000 units with 500 considered affordable, that did not seem to land with locals.

“The clear and pressing need for real estate development in New York City is housing, not a casino,” said resident Webb Seager.

Ex-Tropicana employee broaches NY iGaming expansion

One of the most interesting testimonies Wednesday came from a man named James Jorasch.

Jorasch, who was an accountant at the Tropicana Las Vegas in the 1980s, stated that casino revenue inevitably plateaus and then dips. Once the dip starts, states look for ways to fill that gap. The answer in recent years, he said, has been to legalise online sports betting or iGaming, both of which are prevalent on the East Coast.

There has been little traction in legalising iGaming in New York thus far despite multiple legislative efforts in recent years. However, the state’s top-performing online sports betting market speaks well for future iGaming potential. This presumption is enough of a threat that Las Vegas Sands and Wynn Resorts both referenced fears related to online-retail cannibalisation when pulling out of the New York casino race altogether earlier this year.

The topic of online expansion likely will only begin once the casino process is settled. But might it have been better to start those conversations now? To this point, Jorasch is unique among speakers to broach the topic of gaming expansion after licences are awarded.

“Whether the casinos get part of that revenue or not is a decision that needs to be made, I think today, before we approve the casinos,” Jorasch said.

It took approximately four hours to get through nearly 100 speakers, with frequent interruptions to quiet the crowd. Microphones used by overzealous speakers had to be cut off and security brought in for some disputes. All told, it was among the rowdiest community hearings held since June in the process to determine which of eight applicants should receive three downstate New York casino licences.

The hearing was hosted by The Coney’s community advisory committee, which is tasked with evaluating the level of public support for the Coney Island casino project. In order to advance further, the bid needs four of six CAC members to vote in favour. At least one more hearing must be held before the CAC’s 30 September voting deadline.

A consortium of partners that includes Thor Equities, the Chickasaw Nation and Saratoga Casino Holdings pitched The Coney as a transformative project that would turn Coney Island into a year-round destination rather than just a summer staple. The $3.4 billion project would include a casino, hotel, convention space, and an entertainment venue.

Of the eight downstate bids, The Coney is the only project representing Brooklyn. Proponents point to the borough’s history of economic underperformance and the project’s revitalising potential. Opponents counter with concerns about negative casino impact and the desire to keep the neighbourhood’s historical charm intact. Both sides were loud in their arguments Tuesday.

Casino stakeholders pledge community benefits, investments

Representatives from the project attempted to give a truncated presentation prior to the comment period. This was made difficult by the noise and reactions of the crowd, and appeared to be cut short.

“Seventeen percent unemployment is what we’re facing today,” Thor COO Melissa Gliatta said. “What we heard in the over 500 meetings that we did throughout the community was, ‘We don’t want just jobs, we want careers’ … and we’re here to provide that.”

Gliatta’s Thor colleague, executive vice president Peter McEneaney, commented that “traffic has been probably the number one concern” from locals. The project would involve several municipal changes, including de-mapping some streets that residents say are already overcrowded. McEneaney pledged a “multi-modal” transportation strategy that emphasises public transit rather than cars.

In response to concerns about public safety, the partners are pledging $75 million toward emergency services. This is in addition to a community-managed $200 million trust fund from the Coney Island casino.

Also speaking on Tuesday was Robert Cornegy Jr, the project’s community leader and former city council member for the 36th District in Brooklyn. He appeared to address accusations about his motivations without directly referring to them.

“That’s what my life’s work was built on: ensuring that communities like this are included in large-scale projects like this, so I don’t want anybody confused about why I’m here and what my mission is,” Cornegy said.

Opposition from Coney locals fierce and longstanding

The first few hours of comments were balanced evenly in support and in opposition, but gradually, this balance began to shift more towards opposition. Local meetings were held on each New York casino project before the state process began and many people attended both to reiterate their stances. Several speakers in opposition to the Coney project noted this and vowed to keep up the fight.

“A casino doesn’t come and go, it takes roots, it reshapes the landscape, it changes the character of this neighbourhood forever,” said a local resident who identified himself as Roman. “And once that happens, the Coney Island that we love, the Coney Island built on family, leisure and joy, becomes something else entirely and something that we will never get back.”

As part of this local-to-state evolution, each project faced votes from various city community boards. These votes were non-binding but were expected to play a role in later considerations. Brooklyn’s Community Board 13 voted against The Coney in January. Several CB13 reps spoke against the project again and urged the CAC to heed their decision.

“Please respect the vote of the CB13,” board chair Jeffrey Sanoff said. “We worked very hard and we had public hearings too.”

“Ours went similar to yours,” he said, referencing the commotion.

The issue of traffic, as stakeholders expected, was also prevalent. Numerous attendees lamented strained emergency services. Testimonies were given about sick loved ones and elderly relatives who would be affected.

Supporters point to economic impact of a Coney Island casino

Many of those in support of The Coney stressed the need for local economic investment. Coney Island was a top tourism draw in decades past, but it is now largely a relic. A casino, while imperfect, represents a rare development opportunity.

“The people in Coney Island, especially the youth, they need an opportunity to let somebody give them a chance so that they can build something for themselves,” said Martin Allen, on behalf of the group People for Political and Economic Empowerment.

Local business groups also came in support, as has been the case for most bids.

“The Coney project represents one of the most significant private investments in Brooklyn in decades, bringing thousands of good-paying, permanent year-round jobs to a community that has long faced seasonal employment challenges,” said Dina Rabiner, senior vice president of the Brooklyn Chamber of Commerce, joined by others from the group.

Those who were in favour were outnumbered, especially near the end of the hearing. Still, they commented that opponents were citing problems that already exist rather than ills a casino would create.

“The gentleman that just left said crime, traffic and addiction. We have that right now and there is no casino!” said resident Ed Watson. “So if we have that right now and there’s no casino and there’s no jobs, what are we doing?”

In a statement sent to iGB on Friday, Esportes Gaming Brasil said its new LOTTU brand incorporated a number of new features, including interactive tools, real-time promotions and dynamic layouts tailored to different bettor profiles.

The brand is powered by a new in-house platform, built to deliver a smoother user experience and greater adaptability.

LOTTU has in-built responsible gambling functions, including tools to identify risky betting behaviours and direct users to specialised support channels.

With its LOTTU launch, Esportes Gaming Brasil has now reached the maximum of three brands permitted under its licence by the Secretariat of Prizes and Bets (SPA).

The operator is already active with its Esportes da Sorte and Onabet brands, both authorised earlier this year.

Darwin Henrique da Silva Filho, Esportes Gaming Brasil Group CEO, said he expects LOTTU to resonate with more experienced bettors in Brazil, thanks to its enhanced personalisation capabilities.

“LOTTU reflects everything we’ve learned in recent years, but with a real leap in performance and usability,” Darwin explains.

“It is a platform built from the ground up, with a focus on speed, real-time promotions and navigation tailored to different bettor profiles.”

Esportes Gaming Brasil also bolstering its personnel

Alongside its new brand, Esportes Gaming Brasil has also taken steps to strengthen its executive team.

Ana Carolina Luna Maçães was brought in as the company’s new head of compliance, while Rita Cunha was hired as chief growth officer.

Additionally, Hugo Baungartner was appointed as Esportes Gaming Brasil’s new chief business officer and executive director of institutional relations and strategic partnerships in May.

In an interview with iGB at the time, Baungartner said his new role will involve him representing the company before key industry stakeholders in Brazil, such as the SPA and Central Bank.

“Brazil’s current market environment demands prepared and responsible players and Esportes Gaming Brasil is one of the leading names shaping this new landscape,” Baungartner said. “The group is clearly in a phase of consolidation and expansion.”

As one of two existing facilities among the eight total bids jockeying for three available licences, RWNYC has a substantial head start in terms of community relations, along with MGM Empire City. Having operated as a video lottery terminal (VLT) facility since 2011, the casino has established strong local ties, as potentially evidenced by a lack of union representatives or non-affiliated local residents appearing.

Dozens of civic leaders, community organisers and various nonprofit groups endorsed the casino’s proposed $5.5 billion expansion. If approved, RWNYC would swap its VLTs for Class III slots and table games, and fill out currently unused space to begin operating by July 2026. That speed to market is the fastest of the field, a year ahead of MGM’s proposed launch in July 2027.

As one of the highest-grossing facilities in the US, hovering around $1 billion in annual revenue, RWNYC is the state’s largest taxpayer. The casino has paid nearly $5 billion in taxes since 2011, with promises of larger contributions if approved. These factors contribute to the strength of the bid.

“For many hopefully obvious reasons, Resorts World is a clear choice for a downstate commercial licence,” said Kevin Jones, chief legal and strategy officer for parent company Genting Americas. “We have the fastest speed to market of anyone and we have the ability to open in six months from licensure, by next summer. We’re talking about a head start of up to five or more years on the ground-up sites.”

New announcements since last NY casino presentation

RWNYC opted to give a truncated presentation before the comment period. Jones and fellow Genting executives Robert DeSalvio and Michelle Stoddard ran through key details and announced new steps the company has taken since the last CAC meeting on 22 July.

One announcement was the establishment of a Resorts World Career Center at Jamaica Station in Queens. The job centre will launch on 16 September “in anticipation of adding thousands of new team members”, per a release. Another new initiative was an expanded “Intro to Gaming Operations” community programme, offered for free through CUNY/York College.

“The synergies you get when you combine casino hotels with the luxury and vast entertainment and leisure opportunities is that special sauce embedded in our DNA,” said DeSalvio, who heads Genting’s New York operations.

Strong community endorsement for Resorts World NYC

A litany of organisations were represented on Wednesday, all of whom have partnered with the Resorts World facility over the years. The groups were diverse in scope and constituency and none questioned the company’s sincerity.

“If you attend a meeting with Queens Economic Development Corp, Queens Rising, Queens Chamber, at the library or any of our cultural gems, they are not only in the room, they are advocating for all of us,” said Katha Cato, executive director of the Queens World Film Festival.

While RWNYC would come online quickly, it would continuously build out subsequent phases over the next five years. Fully built, the new integrated resort would span 5.6 million square feet with 2,000 hotel rooms. Its casino would feature 6,000 slots and 800 tables, making it the largest in the US by machine count. These grand plans were applauded by local partners.

“New York City’s next frontier of work is here and it’s gaming,” said Tom Grech, CEO of the Queens Chamber of Commerce. “With the state considering up to three new downstate casino licences, we have a once in a lifetime opportunity to grow our economy and create thousands of middle class jobs in the communities that need them most.”

Big moves in upstate New York

It has been a busy stretch for Genting’s New York operations. In addition to the RWNYC process, its Resorts World Catskills property upstate is also undergoing big changes.

Genting’s Empire Resorts subsidiary, which operates RWC, agreed on 15 August to sell two hotels, an 18-hole golf course, the 2,500-seat RWC Epicenter, a spa and multiple restaurants. The proposed buyer is Sullivan County Resort Facilities Local Development Corp, which will pay $525 million for the assets.

The proceeds will be used to purchase some 1,500 acres from EPR Properties and pay down unsecured notes. In a release, Genting said the deal will “allow Empire to own approximately 1,554.6 acres of land which will be unencumbered by debt”. The land includes the 420 acres that RWC’s gaming and non-gaming assets sit on and “1,134.6 acres of vacant land which have development potential” nearby.

“The proposal will reinforce GENM’s long-term commitment to improve its competitive position
within the New York State gaming market and the broader northeastern US region,” the company said.

Bally’s was the third New York proposal to field a hearing, which was held at the conference centre at 1200 Waters Place. Eight bids are vying for three available downstate licences to be awarded this year, with the one from Bally’s as the lone Bronx representative.

The gaming company has cited the borough’s economic difficulties as a reason to invest there. It is proposing a $4 billion integrated resort in Ferry Point, on a golf course purchased from the Trump Organization in 2023. In a presentation earlier this month, Bally’s Chairman Soo Kim asserted his company’s bid was the “most responsive” to the state’s goal of maximising economic impact.

Approximately three-quarters of the residents who spoke on Tuesday were in support of the project. That was in stark contrast to the MGM Empire City and Caesars Times Square proposals, which drew significantly more criticism at recent public hearings.

New York City Mayor Eric Adams helped keep the Bally’s bid alive twice in recent weeks, and his rationale has been to give the Bronx an equal chance at economic opportunity. Such sentiments seemed to be appreciated by many locals.

“I’m kind of shocked that Bally’s wants to come in and invest and I welcome that 100%,” said Edward Romeo, a former member of Bronx Community Board 10. Romeo joked that the Bronx has always been the city’s “designated kick in the ass”.

Connecting with the Bronx community

Notably, many of those in favour acknowledged that casinos are not perfect. But they figured that if Bally’s is willing to throw down what would be the largest private investment in the borough’s history, then so be it.

“Let’s hold them accountable for everything they promise, but at the same time, bring the opportunity. You can’t be against people doing better,” said local resident Lauren Patterson, to the delight of the crowd.

In April, Bally’s appealed to the Bronx community by saving Preston High School, a local all-girls school, from closure. Its Bally’s Foundation philanthropic arm purchased the school for $8.5 million and leased it back for $1, while also funding repairs. Several young students who are poised to go to Preston next year testified in support.

As with all of the New York bids, union representatives also made appearances to advocate for their members. Bally’s is pledging 15,000 construction jobs, among the highest number in the casino submissions. At Tuesday’s meeting, there were several representatives from IBEW Local 3 in particular.

“As someone who cares about jobs and people working, I’m very excited about the project and I truly appreciate Bally’s commitment to the neighbourhood and that gives me faith that moving forward they’ll continue that,” said Ray West, a business representative for Local 3.

Opposition over parkland use, congestion

There was pushback from some residents, mostly in relation to parkland development. In order to qualify for a licence, Bally’s needed rezoning approvals on the site and some felt that the parkland should be used differently.

“I’m against the casino at Ferry Point because it’s a betrayal to our community,” said local resident Al Quattlebaum. “Our parkland was meant to serve families, children and seniors, not a casino. Bally’s casino represents a sellout of our community’s needs in exchange for corporate profits.”

One woman brought a pledge card that Bally’s had canvassed to local voters. She alleged that it was dishonest and did not mention a casino. This had been mentioned previously by Danielle Volpe, a member of the project’s local community advisory committee (CAC) that will be voting by 30 September on whether the proposal bid should move forward for state consideration.

One man, an employee of the city’s Department of Housing Preservation and Development whose name was not distinguishable, noted the potential ill effects a casino could have.

“In 20 years many of you will look back on this decision with regret,” he asserted. “You’re talking about promoting gambling in a borough that is already struggling, and bringing millions more cars into a community with the highest asthma rate in the entire country. That is not progress.”

The next hearing is set for 9 September. After that, the project’s CAC may choose to host additional hearings, but only two are required. Bally’s needs four out of six CAC members to vote in favour of its bid in order for it to remain in consideration.

Steady second quarter for the growing company

As the New York casino race continues, Bally’s appears to be holding somewhat steady elsewhere. On 11 August, the company announced group revenue of $657.5 million in Q2, a year-on-year gain of nearly 6%. Notably, its casino and resorts segment saw a 15% YoY gain to $393 million. This increase was attributable to the addition of four properties in February, resulting from the merger with Queen Casino & Entertainment.

It should be noted that the results don’t include net income, only revenue.

The company’s North American interactive revenue of $56.5 million was up 21% from last year. Bally’s has a monopoly on iGaming in its home state of Rhode Island and is continuing to expand its Bally Bet digital platform in more jurisdictions. Currently, the platform is live in 11 US states and in Ontario, Canada.

International digital revenue was down 10% to $206 million, and Q2 was effectively the last quarter of business for that segment. Bally’s divested its Asian interactive business last November and then sold the remaining international assets to Intralot in a €2.7 billion (US$3.1 billion) deal in July. The €1.53 billion in cash will help pay down senior debt, which is a huge relief for the company.

Speaking of debt, Bally’s ended the quarter with $174.5 million in cash versus net debt of $3.5 billion. That was less cash and more debt than Q1, adding more uncertainty to its long-term viability. Fitch Ratings has gradually downgraded Bally’s issuer default rating from a B+ in July 2021 to a B- with negative outlook now. Still, this has not stopped the company from progressing with an array of deals during that span.

Chicago IPO now closed, could offer road map for NY bids

In other company news, Bally’s announced on 14 August that it had closed the first round of share purchases for the initial public offering tied to its permanent Chicago casino, which is under a tight construction deadline to open by September 2026.

According to the release, “nearly 1,800 unique shareholders including 1,007 Chicagoans and 1,573 Illinois-based shareholders” bought shares. This was the first of “a few rounds of placements” that the company is planning. Shares ranged in price from $250 to $25,000, and the programme is aimed at satisfying minority ownership commitments to the city.

Bally’s was sued for discrimination on its first attempt at offering the IPO, which was never approved by the Securities and Exchange Commission. The risky and somewhat vague nature of the investment has drawn criticism in some quarters.

A similar IPO programme is being pitched for Bally’s Bronx, totalling 9% of the project’s equity.

“We envision these shares of the [investment programme] being available for as little as $250 or $500, providing opportunity for equity ownership across all social classes,” Bally’s SVP of Corporate Development Christopher Jewett said in an earlier presentation.

Two other New York bidders – Soloviev Group’s Freedom Plaza and Caesars Times Square – are also pledging local IPOs. Now that Bally’s has successfully closed its first Chicago round, that could serve as a blueprint for other offerings in the Empire State.

During this week’s Racing and Gaming Conference at Saratoga, O’Dwyer, chairman of the New York State Gaming Commission, reiterated the importance of conducting a thorough review of the character, fitness and operational capacity of candidates to ensure casinos will operate in strict compliance with New York law.

In Tuesday’s remarks, O’Dwyer alluded to how several casino operators have fallen short of their legal obligations regarding policies to prevent money laundering.

“In dealing with this, we’ll consider those allegations, as well as other allegations for all other pertinent information regarding licensees,” O’Dwyer said in the wake of Nevada cases in which operators were investigated and fined. “Only those candidates who have met the highest standards of integrity and operational efficiencies will be awarded the licence.”

Last September O’Dwyer told the New York Post that accusations against multiple Las Vegas casinos were “particularly disturbing” due to a “culture of non-compliance”, by disregarding suspicious activity inside the properties.

Over the last 12 months, three Las Vegas casino properties – MGM Resorts, Wynn Las Vegas and Resorts World Las Vegas – have agreed to pay fines to the Nevada Gaming Commission to settle anti-money laundering violations. MGM and Resorts World are involved in two of the eight bids in New York.

Neither a ‘rubber stamp nor a potted plant’

O’Dwyer spent a considerable amount of time during his address on Tuesday outlining the state’s process for awarding up to three downstate New York casino licences. Local Community Advisory Committees (CAC) are reviewing proposals from eight bidders interested in opening a casino in the lower portion of the state. This week, committees in Yonkers and Manhattan held public hearings on the bids from MGM Empire City and Caesars Palace Times Square.

Next month, the committees face a 30 September deadline to vote on the projects within their respective jurisdictions. The eight applications can advance to the next stage of state consideration only if they receive clearance from their local committee. The New York Gaming Facility Location Board is supposed to determine by 1 December who should receive the licences.

The state gaming commission is expected to issue up to three licences by 31 December. The chairman took particular exception with the notion that certain bidders might be considered a ‘”lock” by the public to receive the coveted licences.

“I take this responsibility very seriously, in that whomever we determine will be granted a licence for a long time to operate in the state of New York,” O’Dwyer said, while pounding his fist to illustrate his point. “The commission is neither a rubber stamp nor a potted plant.”  

Standards for licence disqualification

O’Dwyer told a packed audience at the Saratoga Hilton that the New York commission is basically required to accept the findings of the Gaming Facility Location Board, adding that the determination is largely viewed as “non appealable”.

Under the process, the commission will have about 30 days to review the board’s findings. At that point, he noted, it is the responsibility of the commission under law to determine if the candidates meet the strict licensing requirements.

In his previous comments to the Post, O’Dwyer appeared troubled by allegations that casinos in Nevada had “negligently” ignored suspicious activity to promote financial gain. He emphasised at that time, however, that while he found the AML allegations against the companies to be concerning, the allegations were not necessarily disqualifying of a licence.

A Resorts World spokesperson told the Post last fall that allegations against executives at one property do not have “any overlap” with operations at other company entities.

Sentencing for illegal bookmaker nears

In March, the Nevada Gaming Commission approved a $10.5 million fine against Resorts World Las Vegas, the second-largest in state history against a casino property. It found Resorts World allowed several illegal bookmakers to gamble at the casino, including Matt Bowyer, a bookie who handled $325 million in sports wagers from Ippei Mizuhara, Shohei Ohtani’s ex-interpreter.

According to a regulatory complaint, Bowyer lost at least $7.9 million at the casino over 80 separate visits. Bowyer is awaiting sentencing on 29 August on transactional money laundering charges.

According to New York Racing, Pari-Mutuel Wagering and Breeding Law, the state will use the same criteria for disqualifying applicants in the upcoming rounds as it did during the upstate casino licensing process more than a decade ago.

There are roughly a dozen standards that could lead to disqualification, including “flagrant defiance” of any investigation of crimes relating to gaming, official corruption or organised crime activity.

The casino bidding process is widely viewed as a lucrative one for the state of New York. Each winning bidder will be required to pay the state an upfront licensing fee of $500 million.

This was the first of a minimum of two mandated hearings before the project’s community advisory committee (CAC) can hold a binding vote on whether the bid can advance for further consideration. The next hearing is set for 16 September at Yonkers Montessori Academy. Four of the five committee members must vote in favour of Empire City for it to advance.

MGM was the first of the eight total New York bidders to field a CAC public hearing. The next applicant scheduled is Caesars Times Square, which will host its first hearing on Wednesday.

The company is proposing a sweeping $2.3 billion renovation and expansion of its existing facility, the former Yonkers Raceway. The property is known as a “racino”, meaning it features both a racetrack and gambling offerings, in this case video lottery terminals (VLT). If approved for a licence, Empire City would eschew its VLTs and become a full Las Vegas-style Class III casino.

Several dozen speakers gave opinions about the project on Monday and the dominant theme is one that has been applied to many major casino expansions across the US in recent years: labour and business leaders want the project while local residents largely do not.

Lone public official cautious on MGM Empire City

As is typical for such meetings, legislators and elected officials were given first priority to speak. The only one to do so was David Tubiolo, Westchester County legislator for District 14, which includes Yonkers.

Tubiolo voiced caution for the project and did not endorse it.

“This project will no doubt bring with it an increase in traffic, an increase in noise and an increased need for emergency and first responder services,” Tubiolo said.

Tubiolo pointed to concerns about the area’s “flood-prone streets”, which were mentioned by others as well. He asserted that his community needs commitments from the company that “the strains on our emergency services and infrastructure” will not become too burdensome.

“We are good neighbours – treat us as such,” Tubiolo said. “Help us get to yes.”

About halfway through the meeting, CAC chair James Cavanaugh noted that several high-ranking local and state officials were present. However, none other than Tubiolo opted to speak.

Union, business leaders bullish on NY casino project

A good chunk of the public support for all of the eight bids has come from union and labour officials. All bidders have pledged thousands of union construction jobs, meaning workers will benefit irrespective of which projects are chosen.

“Let’s not get stuck debating hypothetical problems,” said Armando Moreno, a rep for the United Brotherhood of Carpenters and Joiners of America. “Let’s focus on real tangible benefits this project brings.”

Local and small business leaders have also been staunch supporters of most bids, with MGM Empire City being no exception. Lenny Caro, president of the Yonkers Chamber of Commerce, spoke briefly, but with a clear message: “We support this 100%.”

Opponents: ‘We all know this is gonna happen’

With few exceptions, the speakers who identified as local residents were staunchly opposed. One woman in particular, a retired city employee named Margaret, was not shy in addressing what she saw as an elephant in the room.

“Some people may not like what I’m going to say: We all know this is gonna happen,” she said. “The fact that we are here begging MGM, a multimillion-dollar international corporation, for a few lousy concessions is a disgrace. They should have been begging us with concessions to come here.”

Her comments touch on a common theme among speakers: MGM Empire City and Resorts World NYC seem likely to be licensed because of their speed-to-market advantage and existing relationship with the state.

MGM has, in its own economic projections, said that Empire City will be forced into closure if it is not chosen for a licence. It cannot survive, MGM said, if there are three additional commercial licensees nearby. Residents were not pleased with framing that implies a threat seeking approval.

Kisha Skipper, president of the Yonkers NAACP branch, said that Assemblyman Gary Pretlow told her directly years ago that he was opposed to a full-scale Yonkers casino. That sentiment apparently changed somewhere along the line, she said.

Another local woman was especially descriptive in her assessment of the situation:

“This is either the renaissance of Yonkers or the rape of Yonkers. I want to see the renaissance and we need the leadership of everybody in Yonkers to bring everybody up so we can be an example for the nation of what could be done.”

It was a packed house inside a Residence Inn meeting room to see the presentation, and for good reason. Bally’s proposal is perhaps the most controversial of any thus far, having been boosted twice by New York City Mayor Eric Adams.

In June, Adams helped the project pass a city council vote on its parkland rezoning bill by lowering the threshold for passage from two-thirds to a simple majority. Then when the council rejected a separate vote for the project in July, Adams stepped in again and vetoed that decision, at which point the council stood down.

The mayor, who had federal corruption charges against him dismissed earlier this year by the Department of Justice, has maintained that his actions are not an endorsement. Rather, Adams says, they are an effort to ensure that the field of bids is as wide as possible for up to three available downstate licences.

Bally’s is proposing a large-scale integrated resort complex on a golf course it owns at Ferry Point. The course was purchased from the Trump Organization, and the deal includes an additional $115 million kicker to the seller if the site is awarded a licence. This connection has not been popular, but the project has survived several obstacles just to get to this point.

Billion-dollar goals for Bally’s

Bally’s Chairman Soo Kim was front and centre to discuss his company’s New York ambitions, which, if selected, would be in addition to multiple ongoing projects elsewhere. The company is building a $1.8 billion casino in Chicago, recently took control of Australian operator Star Entertainment, is mulling options for its empty Las Vegas Strip plot and just reverse-merged with Intralot, among other things.

Kim, a “proud product of New York City”, said Bally’s is “quite intentional” in its strategy. While none of the company’s 19 active US casinos is comparable to the scale of the Bronx proposal, Kim is confident Bally’s can deliver its biggest commitment yet.

“We believe we’re the most relevant operator and we bring our fantastic track record of being able to manage a project exactly that this market represents and we’re here to answer the call for the state,” Kim told the committee.

Every New York applicant is bullish on the market being perhaps the highest-grossing in the US once active. Kim was no different, projecting that Bally’s Bronx would generate gross gaming revenue “well north” of $1 billion per year.

That would put it with the very top performers in the country, alongside MGM National Harbor in Maryland and fellow New York applicant Resorts World NYC. Kim actually used National Harbor as a comparable example when asked by the committee, with no Bally’s property being applicable.

The project’s $4 billion price tag would make it the borough’s biggest-ever private investment. Yet there are concerns about Bally’s ability to pay such a bill, as it is highly leveraged and leases most of its real estate. That said, Kim is confident the mega-resort could become a staple of the area, on par with Yankee Stadium, the Bronx Zoo and similar landmarks.

Plans to help those in need

Generally speaking, the New York casino pitches mostly fall into two categories: those that back their home borough and those that highlight its shortcomings. In other words, all three Manhattan bids have touted their community’s wealth and tourism supremacy. Others, like The Coney in Brooklyn and Bally’s Bronx, argue that their lesser-privileged communities are where development is most needed.

Local economic impact, workforce development and diversity initiatives are among the key factors being considered by state officials. The Bronx, by most socioeconomic metrics, is the worst-performing of the five boroughs. Does a thriving hub like Manhattan need such a development? The Bronx is perhaps more limited in its growth possibilities, or at least that’s the argument Bally’s is hoping to lean on.

“We think that by placing it in the county, the borough that has objectively the most economic need … we believe that placing it where it matters the most is most responsive to the [request for applications],” Kim said Friday.

Christopher Jewett, Bally’s senior vice president of corporate development, said the project would provide about 15,000 construction jobs and 4,000 permanent positions. The average compensation per full time employee is projected at $96,000, below most of the other bids.

“Where else is economic impact more meaningful than the borough with the least economic investment, the highest unemployment rate and the lowest median income?” Jewett said.

Right down the fairway for Bally’s?

Architecturally, Bally’s proposal is somewhat futuristic, with several stepped and tiered structures connected via skybridge. Jewett said the design was formed with the course in mind.

“We took inspiration from the surrounding form of the golf course and utilised our stepped hotel design to mimic the undulating fairways of the surrounding links golf course while also keeping the structure fairly low in terms of height,” he said.

Its finished height would be about 100 feet below the top of the nearby Bronx-Whitestone Bridge, minimising disruption to the skyline. The site was a landfill for decades, Jewett said, before it was developed as a golf course and opened to the public in 2015. With the exception of the clubhouse, which would be relocated, most of the existing course grounds would be unchanged.

Bally’s announced its loyalty programme would be extended to partnering business throughout the community, which has become popular among applicants. Notably, Jewett mentioned the company is planning to offer public equity shares in the project totalling 9% of ownership for local residents. Bally’s is attempting to roll out a similar programme in Chicago in the coming weeks, but only after it was sued for discrimination on its first try.

“We envision these shares of the [investment programme] being available for as little as $250 or $500, providing opportunity for equity ownership across all social classes,” Jewett said.

Preston pride in New York race

With regard to local support, Bally’s Chief Legal Officer Kim Barker said stakeholders canvassed more than 11,000 registered voters, 9,700 of whom signed petition cards. Support for the project in various communities ranged from 55% to 85%, she said.

“Across every single ZIP code in the Bronx, there was overwhelming support for this project,” Barker asserted.

Key to the company’s outreach efforts is its Bally’s Foundation philanthropic arm. In April, the foundation attempted to endear itself in the community by saving Preston High School, an all-girls Catholic school, from closure. Bally’s purchased the school building for $8.5 million and leased it back to the school for $1, while donating an additional $1.6 million for repairs.

“We were proud to do that because we recognised the importance that institution played here in the Bronx,” Barker said.

Eyes and ears on the inside

The question-and-answer period was highlighted by numerous questions from CAC member Danielle Volpe, vice president of business development at Nu World Title. This should not have been a surprise based on how the committees were appointed.

Essentially, each CAC comprised five or six applicable state and local officials. Those officials were allowed to appoint someone to the committee on their behalf, or join the committees themselves, which was far less common. Some of these officials were outwardly opposed to their assigned project. Thus, their committee appointees have been the most aggressive in terms of questioning, serving as de facto proxies for the appointers.

In Bally’s case, Volpe was appointed by Councilmember Kristy Marmorato, who was among the most vocal opponents of the Bronx project. Before Adams vetoed the second council vote, Marmorato penned an op-ed in the New York Daily News imploring him not to do so.

Volpe grilled Bally’s on several points regarding its public support and requested copies of its petition materials. She also alleged that the company falsely attributed statements of support to several local groups, listing them individually. A local resident, Volpe questioned the proposed traffic changes, with real-life examples of taking her child to school near the project site.

Other CAC examples played out similarly. The Coney’s biggest opponent, Assemblymember Alec Brook-Krasny, appointed Marissa Solomon to its CAC, where she unleashed wrath. Metropolitan Park’s biggest detractor, Senator Jessica Ramos, appointed George Dixon in her place, who also did not shy away from confrontation.

MGM is one of eight applicants vying for up to three available downstate New York casino licences, which will be awarded by year’s end. Currently, the process is in the CAC phase, in which each applicant is judged for its level of community support.

Each project needs four positive votes from its committee to advance for further consideration; as the only bid outside of New York City (Yonkers), MGM could have the smallest margin for error because its CAC features five members, compared to six for those in NYC. Seven of the eight CACs have hosted at least one meeting, with Bally’s Bronx to come. That said, MGM was the only applicant not to present at its first meeting, for reasons unknown.

The general theme of the presentation centred around the property’s longstanding relationship with Yonkers and the state. As such, the presenters mostly were representing the property itself, rather than corporate officials.

MGM is proposing a $2.3 billion expansion and renovation of the facility, similar in nature to fellow racino Resorts World NYC. If selected for a licence, MGM would overhaul the casino with a new entrance and porte cochere, a revamped casino floor and a 5,000-seat entertainment venue. Its first-phase launch target of July 2027 would be the second-fastest speed to market of the field behind Resorts World.

‘The best possible corporate citizen’

Leading the presentation on Thursday was Louie Theros, president and COO of Empire City, who gave a history of the site that has been in operation for more than 100 years. The 95-acre property has undergone several transformations, most recently from a pure racetrack to a video lottery terminal (VLT) facility about 20 years ago, when it was owned by the Rooney family.

MGM purchased the facility in 2019 and committed $1 billion toward the purchase and associated upgrades. The company has doubled the property’s payroll and upgraded several of its amenities in the past six years. It has also contributed more than $5 billion in taxes since securing its VLT licence, including $1.5 billion under MGM ownership. This is among the top arguments for its licensure.

“Let me assure you, Empire has been, is, and will continue to be the best possible corporate citizen it can be to Yonkers, its residents and the community,” Theros said.

As an existing racetrack, Empire City has contributed hundreds of millions to racing purses and would keep doing so if selected by the state. Theros was adamant that the racing support “will continue”, pounding the table as he said so.

“Simply put, Yonkers and our employees have waited years for this project,” Theros said. “They have earned it and they deserve it. “

Convergence of upstate and downstate

Representatives from JCJ Architecture walked through renderings and animations of the expansion and compared the new amenities to the property’s current views. The interiors of the NY casino, theatre and meeting spaces were dominated by gold and black colours, coupled with white marble finishes.

On the exterior, the current property’s history and various stages are apparent, in the sense that it is an amalgam of several previous expansions. Most of this has come in the form of added parking lots and other facilities. But if expansion is approved, designers would overhaul the grounds with more greenery.

JCJ Principal Mike Larson explained that the racino’s location represents a nice in-between point for downstate and upstate New York. Thus, designers sought to create a modern, urban-appealing design in the backdrop of the green wilderness. In total, the renovations would remove some five acres of asphalt.

“Our project site sits at a very unique point of convergence,” Larson said. “It borders both the urban metropolis that is New York City to the south and is a gateway to the natural beauty of the surrounding New York countryside to the north. We drew upon this convergence as our inspiration for what the reinvented MGM Empire City should look like.”

Moving forward, the CAC must hold at least two public hearings for the project. The first is scheduled for 11 August at 6pm local time. A binding vote on this NY casino project must then be held by 30 September.

Rank is hoping to launch retail sports betting across its casino portfolio in the UK from September, after new regulations were passed into law on 22 July. 

Mark Harper, MD of Rank Group’s Grosvenor Casinos, tells iGB the opportunity to offer betting to casino customers will drive customer acquisition efforts and enable its venues to compete against the growing threat of Adult Gaming Centres (AGCs). 

The government passed into law a number of land-based casino reforms, including increasing the number of gaming machines within a venue and enabling casinos to offer betting via SSBTs.  

Harper says applications are currently under review and the Gambling Commission is likely to start approving those by September.  

Betting now allowed in UK casinos

Previously, bettors could place a bet on their mobile phone while in a casino, but not via an SSBT within the actual venue itself. 

While the number of terminals will be limited according to the size of the gambling area, Minister for Culture, Media and Sport (DCMS) Baroness Fiona Twycross told the House of Lords in June that new regulations would broaden the scope for investment by casinos. 

“The current regulatory framework prohibits these casinos from offering betting products, whereas venues licensed under the 2005 Act can do so. The prohibition makes little sense, as a casino customer can place a bet on their mobile phone while in the venue but not with the casino itself,” Twycross said during a debate on the amendment. 

“This change will allow converted casinos not only to offer a new gambling product but to invest in other parts of their venues, such as sports bars.” 

Additionally, under land-based reforms, licensed converted casino premises can install up to 80 gaming machines, provided the gambling area is no smaller than 280sqm and the number of machines doesn’t exceed five times the number of gaming tables used in the casino. 

Land-based reforms ‘transformational’ for Grosvenor 

Harper believes the land-based reforms will prove “transformational” for the UK casino sector and Grosvenor is well positioned to capitalise. 

“I think we are particularly well placed because of our scale, because of our locations, because of our square footage within our venues,” Harper tells iGB.  

“We will be able to maximise the opportunity of increased slots to satisfy customer demand at the same time as we will introduce sports betting, which will widen the appeal of casinos. That has triggered investment within our business during the last 12 months.” 

The timeline of land-based casino reform in the UK 

The DCMS set out to modernise UK gambling regulation in its 2023 white paper, with a number of proposals specifically centred on the land-based sector. 

Changes to increase the number of gaming machines and allow betting in casinos were published in May, with the regulations passed by both parliamentary houses in June, before their 22 July implementation.  

Harper believes licences will be granted towards the end of August, with Rank then hoping to roll out additional slots and SSBTS from September onwards. 

“We would anticipate an immediate uplift in revenue as a result of those extra slots, because for the first time, customers will actually be able to get onto a slot machine on a Saturday night, as well as broadening the appeal through sports betting,” Harper says of the benefit of land-based reforms.  

Land-based reforms spark heavy Rank investment 

Rank made seven significant upgrades to its casinos in 2024, with a further six venues to receive similar investment this year. 

“We are investing a lot of money and that is on the basis that land-based reform provides the catalyst to satisfy customer demand and broaden the appeal of casinos,” says Harper.  

“We’re using that at the same time as a way of modernising and creating warm, welcoming, compelling, exciting environments.” 

In 2021, Cohen shelled out $341 million for star infielder Francisco Lindor. In 2022, he laid down $102 million for star closer Edwin Diaz. And before this season, he made an even bigger splash, wrestling superstar slugger Juan Soto away from the crosstown rival Yankees in a $765 million deal, the biggest in MLB history.

And now, Cohen and his partner Hard Rock International are on the precipice of an even bigger New York bet, in the form of an $8.1 billion mixed-use casino complex known as Metropolitan Park. The proposal is one of eight vying for three available downstate New York licences to be issued this year.

If approved, Metropolitan Park would transform 50 acres of asphalt parking lots next to the Mets’ Citi Field stadium into a sprawling development with every sort of amenity. In addition to a resort and casino, the project would include a Hard Rock entertainment venue, a 25-acre public park and more.

Its backers presented the project Monday to a local community advisory committee, which will hold a binding vote by 30 September on whether the project can proceed. State Assembly member Larinda Hooks was elected chair of the CAC at the meeting, while city council member Francisco Moya was not present. The committee must now host at least two public hearings before casting a vote.

‘A swamp, a dump and a parking lot’

Leading the Met Park proposal was Michael “Sully” Sullivan, Cohen’s chief of staff. Sullivan explained how the long-term vision of Met Park “goes back to the very first days of my boss Steve buying the New York Mets”. After Cohen bought the team, he wanted to engage with fans and get a sense of what they expected from him. So he went right to the source.

“Against my better wishes, he got on Twitter,” Sullivan joked.

From there, most non-baseball feedback centred around Citi Field and how it lacked other offerings and walkable “village” areas now commonly seen at ballparks across the country. Sullivan said his team “consistently heard from our neighbours and Mets fans that the areas around Citi Field left a lot to be desired”.

Since 1964, the Mets have played in the Flushing Meadows–Corona Park area of Queens. From that year through 2008, the team played at Shea Stadium. Shea was then demolished to make way for Citi Field, which debuted nearby in 2009. However, none of the surrounding areas were redeveloped or redone as part of the transition. Sullivan thus noted that for the last 100-plus years, the land “has been a swamp, a dump and parking lot – never a public park”.

Since the proliferation of sports betting post-2018, there have been multiple sportsbooks to open inside pro sports stadiums across the US. But no US stadium has ever seen such a direct and expansive gambling integration like Cohen is proposing, not even in Las Vegas.

40,000 doors, 20,000 signatures

The Met Park team, as the second-to-last to present to a local CAC so far, seemed to have taken some notes from the other bidders. CAC members, as stakeholders noted directly, are charged with gauging the public support of a project instead of reflecting their personal opinions. As such, a considerable amount of time was spent discussing the project’s outreach efforts and its high approval rate.

Former city council member Julissa Ferreras-Copeland leads the project’s community programmes and detailed those findings to the committee. In the last four years, she said, stakeholders have held more than 1,000 meetings with local leaders, held 16 workshops, knocked on 40,000 doors and garnered more than 20,000 local signatures.

“We heard something that was very important to us – that people love Queens and they want to stay here,” she said. “They want to have opportunities here, they want expanded open space.”

When there are no baseball games, she said, the area can feel “dark, desolate and dank”. A very similar argument is being pitched by The Coney, which seeks to enliven Coney Island’s off months.

Ferreras-Copeland also gave some data that showed how much support the project has garnered. Unlike most other bids, Met Park was approved by all of its applicable community boards, six in this case. It was then approved by the borough president, the city council and both chambers of the state legislature.

In all, Met Park made it through all hurdles with an 88% approval rate in terms of votes for and against.

Hard Rock Met?

Hard Rock President of Casino Development Sean Caffery discussed his company’s involvement in the project. The Seminole-owned operator is one of three tribal casino partners still active in the New York race, alongside the Chickasaw Nation (The Coney) and Mohegan Gaming (Freedom Plaza). The company operates gaming and non-gaming properties, entertainment venues and more in addition to its Hard Rock Bet sports betting and iGaming platform.

Caffery estimated that the project would generate 23,000 jobs between construction and permanent positions. In an attempt to assist the local economy, Hard Rock will also extend its Unity loyalty programme to allow members to earn and redeem points at partnering businesses around the community, just as Caesars has pitched for its Times Square casino.

Additionally, the company is proposing a “Queens Music Museum” to honor artists from the area, featuring memorabilia from Hard Rock’s collection, among the most extensive in the world. That said, no musicians are endorsing the project, while former rival rappers Jay-Z and Nas are connected to the Caesars and Resorts World pitches, respectively.

“We took the feedback from the community to heart in all elements of our resort’s design and business practices and we look forward to the opportunity to both build and operate a world-class Hard Rock integrated resort that will make Queens and New York state proud,” Caffery said.

Friends in high places

Met Park has has been viewed as a possible frontrunner in the race. This is due primarily to its high approval rate through the various stages as well as Cohen’s propensity to spend whatever it takes to get what he wants. Some have noted that he could be the most politically connected of the bidders, having been a big donor to both Governor Kathy Hochul and the state’s Democratic Party.

According to state records, Cohen and his wife donated more than $135,000 to Hochul’s 2021 campaign. Gothamist also reported that Cohen’s Point72 asset management firm donated some $235,000 to the New York State Democratic Committee from 2023-24.

But if anything has become clear, it’s that the downstate New York process is anything but predictable.

One potential hurdle is that the project is in Queens. The state’s two racinos – MGM Empire City and Resorts World NYC – have long been deemed as favourites, due to their tax contributions and significant speed-to-market advantages. Resorts World is also in Queens. It remains to be seen whether state officials would award two of three licences to Queens and exclude Manhattan, Brooklyn and the Bronx altogether.

Skeletons in the closet

Another question pertains to local pushback, namely from state Senator Jessica Ramos, whose district includes much of the project site. Ramos refused to endorse the proposal from the beginning and stalled its progress for months.

Cohen and company circumvented this by enlisting Senator John Liu, whose district includes a much smaller portion of the project. Liu championed necessary legislation, which passed despite Ramos’ opposition. The process violated an unwritten rule known as “member deference” and became among the most publicised examples of political maneuvering tied to the casino licensing issue.

Hard Rock also faces scrutiny, as one of its top executives, Alex Pariente, was suspended in mid-July as part of a regulatory investigation. Pariente is accused of allowing known illegal bookmakers to frequent the Hard Rock Punta Cana resort in the Dominican Republic and of violating AML protocols by dividing a larger transaction into several smaller ones to avoid detection.

“Hard Rock International is aware of the allegations involving one of our executives and is treating the matter with the utmost seriousness,” the company wrote in a statement. “Honesty and integrity are core values of our organisation, and we hold all team members – regardless of their role – to the highest ethical standards.”

On Tuesday, Hard Rock confirmed to the New York Post that Pariente has been fired as a result of the investigation.

Resorts World and MGM Resorts face similar problems for AML scandals, with theirs coming from casino operations in Las Vegas. It’s unclear how much impact such out-of-state problems will have on New York officials, although the state’s top regulator, Brian O’Dwyer, has noted his concern about these allegations.

More than 50 bodies, including those representing rugby, football and cricket, have called for a rethink over the recently announced Online Casino Gambling Bill.

The legislation, introduced by Internal Affairs Minister Brooke van Velden, would establish a licensing system for up to 15 online casino operators. However, sports leaders are concerned that these new online licensed operators will not be obliged to contribute back to the community. This is in contrast to the existing arrangement, with around NZ$170 million of gaming trust revenue from pokies machines diverted to amateur sport each year.

In July, MPs voted 83-39 in favour of the iGaming bill during its first reading in parliament.

Cycling chief calls for consultation

Cycling New Zealand Chair Martin Snedden told the New Zealand Herald there should have been greater consultation before the legislation was introduced.

He added: “This is a crazy move by the government. Sport has thrived for decades off the back of community gambling grants. It all goes to clubs, not professional sport.

“The government should be saying to the international operators, you are going to be contributing if you want to operate in New Zealand. Part of the reason you’re allowed to do so is that part of your money is going to be going into community and that’s a good thing.”

He further added: “The prime minister, the minister of sport, Mark Mitchell, the associate minister of sport, Chris Bishop, they all love sport dearly. I’m sure they’re not going to allow something to go through that is ultimately going to have a dramatic negative impact on the future of community sport.”

However, Minister Van Velden confirmed that while online casino operators will be taxed and required to fund problem gambling services, there are currently no plans for them to contribute towards grassroots sport.

How the bill is progressing

The bill sets out plans for operators to pay a goods and services tax and an offshore gambling duty of 12%, as well as a mandatory levy of 1.24% of profits to fund services for gambling harm.

Licensed operators are expected to go live by July 2026. Licensees would be allowed to advertise gambling activities with limitations, such as avoiding marketing to children. A suitable age verification tool will be required.

The 15 available licences would be awarded by auction. A number of operators have previously expressed an interest in being awarded a licence, including SkyCity, 888, Bet365, Super Group (owner of Betway) and TAB NZ, the monopoly operator of sports betting in New Zealand.

The bill will now advance to the Governance and Administration Committee. The following stage would be a second reading in parliament, before being sent to the Committee of the Whole House.

Van Velden has motioned for this to happen by 17 November. This would then lead to a third reading before the bill could be signed into law. This could mean the bill is voted into law before the end of the year.

Raketech appoints new chair

Raketech has appointed Kathryn Moore Baker (main image) as chair of the board of directors following an extraordinary general meeting.

Shareholders formally approved all proposals from the board of directors and the nomination committee.

Moore Baker replaces Ulrik Bengtsson as chair, while Magnus Alebo becomes a new member of the board. Moore Baker is formerly the chair of Catena Media and was a board member at GiG between 2021 and 2023.

Shareholders also approved the proposal to introduce provisions for squeeze-out rights. The board has also been authorised to repurchase up to 25% of the group’s own shares before the 2026 annual general meeting.

Georgia hits gambling exclusion milestone

Georgia’s national database of those excluded from gambling has surpassed 30,000 individuals for the first time.

Figures released by the nation’s Revenue Service show that 30,451 people are listed in the registry, up nearly 4,000 since early May. Of these, 59 were added by court order while the vast majority (30,392) voluntarily restricted themselves from gambling.

According to Georgia Today, people listed in the database are banned from participating in all forms of gambling, including online platforms and physical establishments. Under Georgian law, registration is valid for five years.

New commissioner in Alderney

Alderney’s Gambling Control Commission (AGCC) has selected Guernsey’s financial crime lead, Richard Walker, to replace departing stalwart Jeremy Thompson among its four strong lineup of superintendents.

Walker led the Guernsey government’s interagency response to last year’s Moneyval mutual evaluation of the Bailiwick where the AGCC was one of the two AML/CFT supervisors assessed. He is the first new commissioner to be appointed in 15 years.

The chairman of the commissioners, Lord Faulkner of Worcester, said: “This is a landmark appointment for the AGCC.

“We looked across a broad field of possible candidates from many sectors. But it was clear after our conversations with Richard Walker that he has unmatched knowledge in areas that are vital to the continuing success of the AGCC.”

Annexio surrenders IOM B2C licence

Annexio Limited is to cease taking bets under its Isle of Man gaming licence as part of a strategic realignment of its regulatory structure.

The Isle of Man-headquartered group cited the cumulative cost and complexity of maintaining multiple licences globally as the main reason for its decision.

Annexio continues to hold active B2C licences under the UK Gambling Commission, the Jersey Gambling Commission and in Australia’s Northern Territory. It said these jurisdictions will remain its primary regulatory bases going forward.

Annexio’s brands include LottoGo and the Affiliate Empire lottery affiliate programme.

According to Dutch publication Financieele Dagblad, figures from the Licensed Dutch Online Gambling Providers (VNLOK) trade body have suggested gross gaming revenue in the first half of 2025 will be down 25% compared to last year.

As a result, KSA tax revenue will be at just 83% of the revenue collected from the same period in 2024, despite a 4% tax increase to 34.2% of GGR from 1 January. The rate for operators will increase further to 37.8% of GGR tax from 1 January 2026.

The Ministry of Finance had expected to collect an additional €200 million annually between 2025 and 2028, it said in September when the tax hike was approved.

But figures to be released this week in the KSA’s impact assessment of the tax increase are expected to confirm fears that the government will miss its target by some way. This was confirmed to the newspaper by a KSA spokesperson.

Why is Dutch GGR declining?

VNLOK has expressed concerns that the Dutch legal market is declining due to restrictive measures enacted over the last year.

Bans on untargeted advertising and sponsorships, as well as the introduction of deposit limits and an increased tax burden are causing licensed operators to lose market share to unlicensed rivals, according to VNLOK.

The KSA’s spring report in April revealed that H2 2024 gross gaming revenue was 10% lower than in the first half of the year, with October’s implementation of new protection measures playing a key role in the drop.

Since 1 October, players have been prohibited from depositing more than €700 (£601.28/$796.24) in a single calendar month. The limit dropped to €300 for those aged between 18 and 25.

The combination of the new measures and a different methodology led the KSA to estimate the channelisation rate for legal operators, based on GGR, was 58% in H1 of 2024. This then dropped to just 50% in the second half of the year.

But the average number of player accounts remained relatively stable, edging up to 1.19 million from 1.1 million six months prior. This, the KSA said, is due to higher-value players having switched their focus to illegal offerings. This is in order to bypass the deposit limits.

Taking to LinkedIn on Monday, trade body Brancheorganisatie VAN Kansspelen said the data showed the tax increase was “doubly unwise”.

The body added: “[The] increase is ineffective, inefficient and even completely counterproductive, both in terms of the budget and with regard to gambling policy objectives.”

Why is the government increasing the Dutch gambling tax?

The Netherlands’ gambling tax hike is to be implemented in two phases, with licensees facing another increase to 37.8% of GGR from 1 January 2026. The increase was imposed despite government-commissioned research warning it will push licensees out the market.

The tax will hit all verticals and channels, from casinos and gambling halls to lottery and online. In introducing the change last year, the government said it expects to generate additional tax revenue of €202 million per year between 2025 and 2028.

However, a report published last year by research agency Atlas Research warned the tax increase could push online operators to exit the market.

Presented during the budget, the report said operators “will have to take measures to stay out of the red”.

Players could be pushed into betting via the black market, it said, as operators attempt to pass on the increased costs to players.

Kenya’s Gambling Control Bill (National Assembly Bill No 70 of 2023) set the market’s minimum gambling age at 18, but under new proposed rules individuals under the age of 21 would no longer be legally permitted to make a parimutuel wager.

Also discussed in parliament was a minimum betting amount of Ksh50 ($0.39) to dissuade youths from excessive gambling activities.

“We discourage young people from engaging in [betting], because getting Ksh50 is a bit [difficult],” member for Dagoretti North constituency Beatrice Elachi said during the parliamentary proceedings.

“It is like these people are so powerful that they can convince the government to pass a bill that can be shaped into what they want. What we are doing to our young people is wrong,” Elachi noted.

This latest move comes following the ongoing proposal from the National Assembly to deliberate on provisions of the Gambling Control Bill.

Should the latest bill sail through and get the assent of the president, operators that fail to adhere to the new gambling age restriction will face severe sanctions.

Locals react to Kenya gambling age limit change

Some Kenyans are unhappy about the incoming restrictions, believing 18-year-olds should be allowed to gamble as they are adults.

“Adults should be able to have free will when it comes to gambling. If the government believes 18-year-olds are mature enough to go to war, then they are surely mature enough to spend their money on sports if they so wish,” a trader at Gikomba market Machakos Nairobi told iGB.

Another bettor said: “If 18-year-olds can vote and serve in the military, they should also be allowed to wager, as it’s a matter of personal freedom and consistency with other adult responsibilities. Why can’t they focus on fixing the nation first?”

These are just a few of the reactions that have raised questions about the move’s feasibility.

Although the timeline for the bill’s progression is uncertain, the House of Assembly remains committed to its proposal.

Latest list of operators released by BCLB

Elsewhere, Kenya’s Betting Control and Licensing Board (BCLB) on 29 July released an official list of all iGaming operators that have been approved for licensing in the market for the 2025-26 financial year.

Several prominent brands, including Betika, Odibets, Betpawa, Flamingobets, Kwikbet, My Lotto/Tatuatatu, made the cut. A total of 99 firms were listed.

Part of the regulator’s campaign is ensuring the country’s gaming landscape continues to conform to the responsible gambling regulations being put in place.

“Further to our letter REF: BCLB 15/1/VOL.1 (65) dated 30 June 2025, this is to confirm that the attached list of Gaming Companies have been approved for licensing and therefore have been approved to continue with their operations after the expiry of the 30 days extension,” said the report signed by the board’s chairperson, Dr Jane Makau.

The full list can be found here.

Kenya’s BCLB is preparing a major shakeup of current regulations, including increasing licensing fees for operators. This follows a recent gambling ad ban in the country.

Representatives from Thor Equities, Saratoga Casino Holdings, the Chickasaw Nation and other partners gave a detailed presentation of the proposal Wednesday. The project has begun the community advisory committee phase, which runs through 30 September at the latest.

The Coney is one of eight total bids in the running for three available downstate New York casino licences. It was believed that the Bronx proposal from Bally’s Corp was out of the running after losing a rezoning vote earlier this month, but New York City Mayor Eric Adams resurrected the project by vetoing that vote Wednesday. It will now return to the city council for another chance.

In order to advance, each project must receive a two-thirds majority approval from its local committee by 30 September. In The Coney’s case, that means four out of six CAC members. Votes are supposed to reflect the level of local support for the project, not members’ own beliefs.

At the meeting, NYC council member Justin Brannan was elected chairman. However, he wasn’t the one that project representatives ultimately had to reckon with.

Addressing Coney Island’s needs

In terms of aesthetic, the project is easily the most visually diverse of the field. Its bright neon colours and sweeping design curvatures mimic a theme park, as opposed to a glitzy skyscraper or posh resort. The renderings, although modern, look as if old-timey carnival organ tunes could be playing in the background, which is part of the allure of Coney Island.

If the bid is successful, construction of the project is proposed to start in June 2026 and finish by June 2029 for a single-phase opening.

In their presentation, stakeholders highlighted three key issues that the project will look to solve: making Coney Island a year-round destination rather than just a summer spot, ensuring public safety, and generating local jobs.

Peter McEneaney, executive vice president for Thor, leaned heavily on job creation. If approved, the project would generate 4,000 construction jobs and 4,500 permanent jobs, per the application materials.

“Coney Island today has a 17% unemployment rate,” McEneaney said. “Seventeen percent. That’s four times the national average. And how do you solve that? The way to solve that is to create a mixed-use project. This is not just a casino in a box. It’s a mixed-use entertainment project that fits in the framework of Coney Island.”

With regard to security, McEneaney announced that $75 million has been pledged toward first responders and emergency services in the casino’s first five years. This is in addition to a proposed $200 million community trust for local investments.

Casino manpower

Thor’s casino partners are Saratoga and the Chickasaws, through the tribe’s Global Gaming Solutions arm. The Chickasaws are one of three tribal partners in the New York race — Mohegan Gaming is Soloviev Group’s partner for Freedom Plaza in Manhattan, and the Seminole-owned Hard Rock is partnered with Steve Cohen for Metropolitan Park in Queens.

Paul Pippin, chief operating officer of Global Gaming Solutions, gave some background on the tribe, which operates WinStar World Casino in Oklahoma. WinStar is currently the largest casino by floor size in the world, with estimates ranging from 400,000-600,000 square feet.

“At GGS we don’t just build casinos,” Pippin said. “We build economies, and we build them for and with the people in those communities.”

Also included in the bid is Legends Hospitality, the prominent entertainment and stadium ops firm co-founded by the New York Yankees and Dallas Cowboys. It would manage a year-round event schedule for a 2,400-seat venue at the site.

“The Coney is the largest private investment in south Brooklyn’s history,” Pippin said. “It’s 100% financed and it’s shovel ready. But it’s so much more than just a casino. That’s only a portion of what this entertainment project is going to bring.”

Community support

To help spearhead the project’s community outreach, the partners enlisted Robert Cornegy Jr, a former city council member. He previously represented the city’s 36th District in Brooklyn.

Cornegy said Wednesday that in the last three years, The Coney has held over 500 local meetings and garnered more than 600 letters of support. It has also received more than 10,000 local signatures, which he stressed were truly local and not from other areas of Brooklyn.

“For all intents and purposes, this is a community-backed proposal,” Cornegy told the committee. “I believe it’s a community-backed proposal.”

A history of Coney Island was given, from its earliest beginnings in the late 1800s to the present. Its peak popularity, according to the presentation, came in the 1930s. Then from the 1940s-1960s, it was a period of “peak Americana”. The 1970s began a period of “decline and disinventment”, which lasted well into the 21st century. Its current claim to fame is the nationally televised Nathan’s Hot Dog Eating Contest, held every 4 July.

The wrath of Solomon

One unique aspect of The Coney’s hearing was how lively the question-and-answer period was. There have been five presentations made to CACs so far, and for the others, there was very little committee feedback. But Wednesday, CAC member Marissa Solomon made her presence felt.

Solomon, who iGB incorrectly reported previously as being director of Pythia Public, is actually a local resident who does work for the Coney Island Museum. She has been a prominent voice in community hearings that were held previously, and she grilled officials again as part of the CAC.

Her biggest gripe was in relation to the workforce commitment. While The Coney is advertising thousands of local jobs, it has said that only 9% would come directly from Coney Island. Solomon’s estimation was less than 200 jobs under that figure. She was also extremely wary of the partners’ diversity commitments and confronted the companies about their less-than-diverse executive staffs.

Representatives appeared to be caught by surprise by Solomon’s tenacity. They did not have prepared answers for her points, other than to say that the process is collaborative and could result in changes. The issues will almost surely be brought up again in the coming weeks, as each CAC must hold at least two public hearings before issuing a vote.

Earlier this month, it was announced Hanzbet would halt its activities in the licensed Brazil betting market after a clash with its licence holder in Brazil, EA Entretenimento e Esportes Ltda (EA).

But on Monday, Hanzbet announced the company had formalised an agreement to operate alongside BigBet, one of the three brands working under Big Brazil’s licence.

Big Brazil is also the licence holder of the Apostar brand, as well as Caesars Sportsbook.

The companies assert the move will strengthen the brands’ presence in the regulated market and boost the options available to bettors in Brazil.

“This merger represents more than a collaboration between the two companies – it’s a firm step toward strengthening the Brazilian regulated betting market,” Big Brazil/BigBet CEO Rodrigo Cariola said. “We remain committed to compliance, responsible gaming and delivering a high-quality experience for everyone.”

Hanzbet CEO Gabriel Martins added: “We know the credibility HanzBet has earned within the iGaming industry, partners, affiliates and service providers.

“We have always conducted our actions with clarity, seriousness and loyalty. We will continue, now stronger than ever, alongside a great brand like BigBet.”

It’s currently unclear what the merger will entail, although it could potentially mean Hanzbet’s customer base and operations are simply absorbed into BigBet.

The companies say they plan to announce further operational details soon.

What happened to Hanzbet?

Hanzbet claims the EA statement announcing the closure of the brand was published without its consent, with founder and CMO Eduardo Peres stating he and his team had been suddenly excluded from all internal communication channels and decision-making.

Peres published a statement on his LinkedIn, labelling the relationship with EA as a “true operational dictatorship” and alleging the licence holder was intentionally diverting Hanzbet users to another of EA’s brands, BateuBet.

Even more seriously, Peres accused EA of withdrawing liquidity from the company while simultaneously telling customers they had to extract funds from Hanzbet ahead of its closure on 31 July, making withdrawals impossible.

iGB reached out to both Hanzbet and EA regarding Peres’ accusations, but is yet to receive a response from either.

Despite the recent challenges, Peres welcomes the new chapter with BigBet, thanking Big Brazil for its belief in Hanzbet.

“After everything we have been through with the HanzBet case, today we turn around, with our heads held high and strengthened,” Peres said on LinkedIn. “They did everything to bury HanzBet. They forgot that the end only comes to those who give up and that was never our case.”

Representatives from MGM were not in the room to give a detailed presentation of the bid, as it was not required. However, all four of the other CAC meetings held thus far have included bidder presentations, including from fellow racino Resorts World NYC. Overall, there have been eight bids submitted for three available downstate New York casino licences to be awarded this year.

Senior-level officials representing several proposals have made in-person appearances thus far, including Mohegan CEO Ray Pineault, Rush Street CEO Tim Drekhoff and even rapper Jay-Z.

MGM did not respond to a request from iGB for clarification as to why a presentation was not given.

Thinnest of margins

An increasingly tight timeline is part of the reason why bidders have opted to give presentations as early as possible. Each CAC is required to host three types of meetings: an initial organisational meeting, at least two public hearings and a final meeting to hold a vote and submit it to the state. All of this must be done by 30 September, the deadline for voting.

In order for a proposal to move on to the next stage of consideration by the state, it must receive a two-thirds majority approval from its respective local CAC. The committees are not supposed to vote based on their personal opinions, but rather on the amount of public support shown for a given project. That’s what the public hearings are for, to solicit local feedback.

There are few rules governing how the process must be scheduled, as much depends on committee members’ availability. Theoretically, MGM could give its presentation on the same day that a hearing is held. But that presentation, coupled with questions from committee members and comments from the public, would likely drag on for several hours.

The MGM Empire City CAC expressed some concern with issues of timeliness on Thursday and it will seek to hear the presentation on its own at a later date, members said.

Another difficulty for MGM is that it has the smallest margin for approval. All the other remaining bids are located within New York City, meaning their CACs feature six members. MGM Empire City is in Yonkers, and therefore has a five-member committee. The two-thirds threshold still applies, though, meaning the bid needs four out of five votes instead of four out of six.

Racinos considered frontrunners

Now that the CAC phase is firmly under way, the range of bids are taking shape. Every type of development is featured in the field, including: renovations of existing facilities, ground-up construction projects, retrofits of other use buildings and sprawling mixed-use complexes.

State officials will be considering how to best allot the three available licences to maximise economic impact and minimise local displeasure. The racinos are located a considerable distance from Manhattan, a consideration that will assuage congestion concerns. The existing facilities also require less construction than the other proposed facilities. Both factors largely explain why the two racinos have been the heaviest favourites in the race.

MGM, which acquired the site in 2019, has proposed a $2.3 billion transformation of the former Yonkers Raceway. This includes a new entrance and a porte cochere, a “fully revamped” casino floor, five new dining options, a new entertainment venue and more. The company proposes a limited launch in June 2027 if selected. That represents the second-fastest time to market among the timelines proposed by the bidders, behind only Resorts World (July 2026).

The bill, which has sought to establish a national regulatory framework for all online and remote gaming in the country, has already cleared its third reading.

This is not the first time the body has had a bill like this invalidated by the court. Thus, it has been deemed “ultra vires”, meaning beyond one’s legal power or authority. The move aimed to repeal a law that has already been nullified.

“The proposed Central Gaming Bill 2025 is nothing more than a repackaged version of the now- nullified National Lottery Act 2005. Both acts seek to establish federal control over the same subject matter, games of chance through licensing, regulation and enforcement by a federal commission,” a statement from the FSGRN read.

The FSGRN is a constitutional authority made up of 24 state governments in Nigeria to regulate gaming.

The Supreme Court ruled against the country’s previous national gambling legislation, the National Lottery Act. It invalidated the act’s claim to regulate gaming and lotteries across Nigeria.

It instead determined that state legislative assemblies should regulate lottery and games of chance instead of the federal government of Nigeria.

In December, the FSGRN welcomed the Supreme Court’s decision.

What is covered in the Central Gaming Bill?

The Central Gaming Bill seeks to establish a national regulatory framework for all online and remote gaming activities, including provisions for conducting gambling in the Federal Capital Territory (FCT), and generating iGaming revenue both nationwide and across state borders.

Key components of the bill include a regulatory framework for controlling all iGaming activities, including retail, lotteries and online. It also calls for a National Gaming Commission which would retain licensing powers.

A key argument advanced by proponents of the Central Gaming Bill is that the gaming industry has moved online and therefore requires a centralised regulatory framework.

Bill already faced major backlash

In a country with a written constitution where the rule of law prevails, legislative actions that ignore explicit rulings of the Supreme Court are unlawful and risk undermining constitutional principles.

With that, a number of notable agencies clearly opposed to it have argued that this should have been taken into consideration before the bill’s reintroduction.

“We are confident that the leadership of the current National Assembly is very much aware of their statutory obligation to uphold the provisions of the Constitution of the Federal Republic of Nigeria, 1999,” chartered tax professional, Chief Dr Francis Ubani told The Nigerian Post.

“We therefore, urge and implore the National Assembly, through the House of Representatives, not to go ahead with passing into law the Central Gaming Bill 2025, as doing so would be in total contravention of the 1999 constitution, and would be void and of no effect whatsoever. Finally, do not reintroduce the nullified National Lottery Act, through the back door, by change of nomenclature.”

Despite these setbacks and delays to formal regulation, key operators in the country such as Bet9ja, 1xbet, BetKing, NairaBet and Betway have experienced significant growth in Nigeria.

This is thanks to increased mobile accessibility and fintech advancements. Nigeria’s iGaming sector is predicted to grow by at least 16% and reach approximately $500 million in revenue by the end of 2025.

On Wednesday, though, the billionaire mogul hosted another milestone performance, looking far from flashy dressed in a suit and stuffed into a nondescript meeting room.

Jay-Z’s Roc Nation company is partnering with SL Green and Caesars Entertainment for the Caesars Palace Times Square (CPTS) bid to obtain one of three downstate New York casino licences. Representatives were on hand for the project’s first community advisory committee meeting.

Jay-Z appeared reserved and almost anxious as he spoke, a far cry from his famous Brooklyn braggadocio.

“I’m trying to reserve myself – it’s a very good idea,” Jay-Z said quietly, searching for the right words. “Very good alignment for us to fulfil the promise of Times Square.”

He added that his proposal “is not coming to compete with Broadway”, as local actors’ unions and theatres have contended. Rather, CPTS would be “additive” to the industry, he said. One of his first calls, he noted, was to Disney CEO Bob Iger to work out a solution to keep “The Lion King” musical at the site.

“Anything that we’ve done in the past [at Roc Nation], we always included the community,” Jay-Z said.

All hail Caesars?

Caesars is the biggest-name casino operator among the eight bidders, which really might be seven with the Bally’s proposal all but dead due to zoning issues. Caesars, in its presentation, boasted of 53 properties across North America with more than 50,000 employees. This breadth of destination and regional casinos is noteworthy, as Caesars is pitching CPTS as a mix between the two.

It would be a destination luxury resort, but with bare-bones amenities, meant to drive traffic to local businesses. Instead of a new development, CPTS is a retrofit of an existing office building at 1515 Broadway. With fewer than 1,000 hotel rooms, just four restaurants and no retail space, it is among the smallest-scale projects left in the field. Its central Times Square location, though, is the most recognisable.

“The Caesars brand is reserved only for our flagship luxury properties, which is exactly how we are positioning CPTS,” said Brian Agnew, Caesars senior vice president of corporate finance. He later added that CPTS “will be on par with the quality of a destination like Caesars Palace Las Vegas,” but “in a New York way”.

To help sell the community involvement aspect, Agnew revealed Wednesday that Caesars will expand its rewards programme so that members can redeem points at local businesses, an industry first.

“We are creating an ecosystem where all businesses in Times Square become part of this project,” Agnew said. “We just provide the gaming in a converted office building and all of our neighbouring businesses become our partners.”

‘All-in on this city like no one else’

In contrast with Caesars’ vast empire, SL Green is a New York specialist. CEO Marc Holliday explained how his company “is all-in on this city like no one else”, as the city’s largest commercial landlord. A holographic map showed all of the company’s Manhattan holdings, like a scene out of a Marvel movie.

“What you don’t see here are any properties in Florida,” Holliday said. “Nothing on the West Coast or in Texas. Nothing in the Southwest. To use some gaming lingo, we do not hedge our bets when it comes to doing business in what I believe to be, in my heart of hearts, the best city in America.”

SL Green is among several prominent non-gaming entities still vying for a New York licence. Others include Silverstein Properties, Soloviev Group and Thor Equities. Another bid spearheaded by Related Companies was withdrawn earlier this year.

For nearly all of them, the casino licensing process represents a unique development opportunity. Casino gaming is an economic driver that can supercharge a project, but it also makes the proposals contingent on that element. Most of the sites chosen for these bids could not be developed to the same scale without gaming included.

Holliday asserted CPTS would “fit like a glove” and become a “contextual” part of Times Square. He also touched on community involvement, saying the property is “specifically designed to share the time of the gaming patron and hotel guest with all the Times Square and New York City has to offer”.

Will Manhattan be excluded?

Caesars’ bid represents an interesting conundrum for state officials in deciding exactly what they want from this process. Ostensibly, the three available licences are to be issued in a way that maximises economic impact and tax generation while minimising negative effects.

Under that logic, the speed to market and substantial tax revenue from existing racinos MGM Empire City and Resorts World NYC make them likely frontrunners. That would leave just one licence remaining, and there are three bids from Manhattan alone, including CPTS. As the dominant borough from a wealth and tourism perspective, the idea of excluding Manhattan seems suboptimal.

Yet even the range of Manhattan bids raises questions as to preferred criteria. CPTS would be relatively quick to market, but is the smallest scale in terms of amenities and non-gaming offerings. Freedom Plaza and Avenir would be bigger and more inclusive, but would take longer to produce. Non-Manhattan bids such as Steve Cohen’s Metropolitan Plaza in Queens would be more of a traditional, standalone destination resort rather than another feature of the cityscape.

CACs have until 30 September to issue votes based on public support of each project. Each bid must receive a two-thirds majority approval to move on to the next phase. The New York State Gaming Commission will issue up to three licences by year’s end.

Earlier this month, EA announced Hanzbet would close its operations by 31 July, with the site only remaining active for players to withdraw their balances.

Hanzbet founder and CMO Eduardo Peres published a statement on his LinkedIn page on Monday, describing the situation as a “true operational dictatorship” and explaining he and his team had been removed from all internal communication channels and decision-making.

According to Peres, the statement announcing the closure of the Hanzbet brand was issued without their consent, causing payments to affiliates, suppliers and service providers to be suspended.

Peres also claimed EA is intentionally diverting Hanzbet users to BateuBet, another of EA’s brands, via its support channel.

“This is revolting,” Peres said. “It is a lack of respect for our history, for the partners and for all the professionals who helped build HanzBet with so much effort.”

Peres believes this should serve as a warning to other operators working under a similar structure, saying he and his colleagues will continue to battle against EA’s actions.

“If you have an operation allocated under another [company’s] structure, be aware,” Peres continued. “Analyse who you are hanging out with. Not everything that looks like a partnership is, in fact, a partnership.

“We are taking all legal and appropriate measures. And above all: we will fight to the end for what is ours.”

iGB has reached out to EA Entretenimento e Esportes Ltda for comment but had not received a response at the time of publishing.

Hanzbet users unable to withdraw

Peres said he hadn’t experienced or witnessed anything like this in the three years working in the betting sector with Hanzbet.

Even with contracts signed between Hanzbet and EA, Peres explained the reliance on a judicial process will be extremely drawn out, with serious reputational damage happening in the meantime.

Even more seriously, Peres has accused EA of making withdrawals impossible by withdrawing company liquidity while also informing customers they must withdraw from their accounts prior to Hanzbet closing down.

“In other words, they induced customers to withdraw, but those responsible themselves prevented this from being done by emptying the funds,” Peres said.

Licensing structures in Brazil

This situation could prove concerning to operators in a similar position to Hanzbet, with parent company licence holders maintaining financial control.

Many legal operators in Brazil are licensed under parent companies, as licensing requirements dictate that operators must be at least 20% owned by a locally operating business and have local headquarters

Notably, in a separate Instagram post, Hanzbet hinted at a possible return for the business in the future, though it’s currently unclear how the company will achieve this with links with its previous licence holder now severed.

The post stated: “Hanzbet is about to return with a new phase. More modern, more complete and better than before.”

In contrast with last week’s meetings, Resorts World’s CAC met in what looked to be an actual meeting room, with several attendees. The committee itself is among the most star-studded of the field.

Instead of assistants and lower-level officials, it features state Senator James Sanders, Assembly member Stacey Pheffer-Amato and Queens borough President Donovan Richards, all of whom used their right to appoint themselves. Pheffer-Amato was elected chair Monday.

Representatives from Resorts World and parent company Genting were on hand to explain the details related to the property’s sprawling $5.5 billion expansion plan, if it is awarded one of the state’s three new casino licences. Eight bids were submitted last month for the licences, although the one from Bally’s Corp appears unlikely to proceed due to losing a rezoning effort.

Leading the Resorts World presentation was Kevin Jones, chief strategy and legal officer for Genting Americas. Jones explained how, at 73 acres, the former Aqueduct Racetrack is by far the largest parcel of all potential bids. Its location minutes away from John F. Kennedy International Airport was also a focal point.

“Aqueduct offers a scale and connectivity that no other site in New York can match, period,” Jones asserted.

A premade sponsor video from native Queens rapper Nas was also played. Notably, Nas and fellow rapper Jay-Z, who is the premier sponsor of the Caesars Times Square proposal, had a volatile and highly publicised feud in the late 1990s. While the two were said to have reconciled, they again find themselves on opposite sides of a New York battle.

Read my lips: all the taxes

If Resorts World’s bid was to be distilled to just one sentence, it would likely read something like this: “Our existing infrastructure allows us to start paying even more taxes than we already do, quicker than anyone else!”

By far the biggest selling point of the project is the fact that Resorts World is already the biggest direct and indirect taxpayer in New York state. The video lottery terminal facility brings in annual gross gaming revenue of nearly $1 billion annually, and thus has contributed over $4.5 billion to the state in taxes since 2011.

If awarded a full casino licence, Resorts World is projecting annual revenue of $2.2 billion by 2027. For almost a year now, the casino has been touting potential tax benefits approaching $1 billion per year. Company officials declined to confirm those numbers Monday and will give more up-to-date estimates in the coming weeks.

Tax revenue is a central point of consideration for the state, and the bids that advance past the CAC phase will be asked to pitch their own proposed tax rate. Currently, New York racino machines are taxed at an effective rate of about 55%, per the American Gaming Association. That’s compared to 9.25% for New Jersey casinos and 6.75% in Nevada. The Empire State’s online sports betting market is also tied for the highest tax rate in the US (51%).

Need for speed

Speed to market is also among Resorts World’s touted advantages. When the property was awarded a VLT licence in 2010, Genting expanded it more than necessary in hopes of future growth. It then opened a 400-room Hyatt in 2021.

If awarded a licence, executives say the property would simply fill out all of its available space with 4,000 slots and 250 tables, allowing it to begin operations by July 2026. That’s a full year before the next-fastest speed to market, fellow racino MGM Empire City, which is pitching mid-2027.

After that first phase, the rest of the expansion facilities would be built gradually over the next five years. By 2030, the finished facility would feature 6,000 slots and 800 tables, which would make it the biggest casino in the US if it comes to fruition.

“No other proposal can come close to our speed to market,” Jones enthusiastically told the committee.

Global perspective

Of the gaming companies vying for the licences, Genting is among the most global in scope. It operates resorts in Asia, Europe, the Caribbean and the US.

Robert DeSalvio, head of Genting’s New York operations, called the NYC region the “epicenter of finance, tourism and culture”. It is the largest untapped metro area for gaming, he said, and is highly saturated with wealthy households.

While the New York process is competitive, DeSalvio noted how Genting has previously won several highly sought bids, including one of just two Singapore licences.

“During my career, I’ve seen world-class gaming markets in places like Las Vegas, Macau, Singapore and Malaysia,” he said. “But I have never seen an opportunity comparable to what lies before us right here at Resorts World.”

What happens in Vegas…

Monday’s presentation was flashy, extensive and well-prepared. The combination of the high tax revenue, existing relationship with the state, and speed to market makes Resorts World an apparent frontrunner in the race among bidders. Yet an ugly facet of its business has made news some 2,500 miles to the west.

For multiple years, Resorts World Las Vegas has been embroiled in an anti-money laundering controversy related to multiple illegal bookmakers who were allowed to frequent the resort despite the casino’s knowledge of their background and source of funds. This includes Matt Bowyer, the bookie who accepted action from baseball star Shohei Ohtani’s former interpreter Ippei Mizuhara. RWLV even hired Bowyer’s wife, Nicole, to be her husband’s personal host.

The casino in late March was fined $10.5 million for historic AML failures, which represented the second-largest fine ever levied by Nevada regulators. Former RWLV president Scott Sibella, who was at the center of the scandal, also had his gaming licence revoked. Alex Dixon was brought in as president in January, only to be quietly fired and demoted by May.

Brian O’Dwyer, chair of the New York State Gaming Commission, said last month that the current phase of the licensing process started with an open slate. O’Dwyer told the New York Post last September, however, that it was “of particular concern” to see the allegations against Resorts World.

“These allegations in the complaint are particularly disturbing in that it alleges a culture of non-compliance in that information on illicit or suspicious activity was either negligently or worse fully disregarded to promote financial gain,” O’Dwyer said at the time.

First up were two Manhattan bids, the Avenir and Freedom Plaza from Silverstein Properties and Soloviev Group, respectively. The Avenir CAC convened on Wednesday, followed by Freedom Plaza on Thursday.

In some ways, the meetings were a curious sight. It’s not often that CEOs and high-ranking officials from some of the world’s preeminent developers and hospitality companies are hunched shoulder to shoulder in obscure meeting rooms in the annals of New York City, giving pitches on multibillion-dollar projects to committees comprised mostly of middle-ranking government employees and legislative assistants.

And these ad-hoc committees now hold the fate of this high-stakes process in their hands. In order to advance for further consideration, a prospective bid must secure a two-thirds majority approval from its respective CAC. Notably, this vote is not supposed to reflect the members’ personal opinions; it is supposed to reflect “whether there is adequate support for the proposed project” in its immediate area, per the state gaming commission.

There are three types of meetings that CACs may hold: an initial organisational meeting, subsequent public hearings, and ultimately a final hearing to hold a vote and submit it to the state. This week’s meetings were organisational, in which each committee elected a chair and heard presentations from stakeholders.

Ins and outs

To kick off each meeting, committee members were briefed on the parameters of the process and their expectations. Their tenure on the CACs runs from now through 30 September at the latest, which is the deadline to hold binding votes.

Following the organisational meetings, each CAC must host at least two public hearings to solicit local feedback. A proposed schedule from the state suggested to host the first hearing between 21 July- 1 August and the second from 11-22 August. This would allow for a few weeks’ space to host any other hearings if necessary before the final vote is held. However, this was simply a suggestion, and committees are free to set their own schedules as availability permits.

During the CAC process, bidders may make changes to their applications based on committee feedback. This includes future promises or commitments, so long as they are submitted in writing. CACs may also request a modification to a bid, but any changes that would impact the environmental review process may not be considered.

Committees were also briefed on ethics, and reminded that they may not have contact with any bidders outside of their official capacities.

Avenir first up

At the Avenir hearing Wednesday, Matthew Tighe, chief of staff for Assembly member Tony Simone, was elected chair. Tighe was not present for the meeting but participated virtually.

Silverstein COO Dino Fusco and CMO Dara McQuillan each gave presentations on their company’s background and prowess for developing large-scale projects in the city. Silverstein is best known for redeveloping the World Trade Center site after the 9/11 terrorist attacks, which has been a focal point of its materials.

McQuillan said that Silverstein is “an expert at complicated, neighbourhood-changing, public-private partnerships,” with the chief example being the WTC. “We have a lot of experience working with elected officials, community board members and neighbourhood groups,” he added.

During Fusco’s time, he highlighted a topic that has risen to the top of discussion: the importance of allotting a licence to a Manhattan bid. As the dominant borough in the city from an economic and tourism perspective, stakeholders from all three Manahattan bids are adamant that any projects in the other areas, namely Queens and Brooklyn, will underperform comparatively.

Fusco said that in Silverstein’s view, “there’s no doubt” that one of the licence winners “should absolutely be in Manhattan”.

Rush Street Gaming CEO Tim Drekhoff was also on hand, as his company was added to the bid in mid-May. Original partner Greenwood Gaming is still involved, but it did not make a presentation. Drekhoff boasted of his company’s ability to bring casinos to new communities, such as it has done with its Rivers casinos in Chicagoland and upstate New York. The Avenir, however, would be a much bigger undertaking than any of its regional properties.

“We’ve never acquired a casino,” he explained. “We developed each one of these properties from scratch, and each one of these properties was the first casino to ever exist in that city or county.”

Freedom Plaza gets philosophical

On Thursday, the Freedom Plaza CAC elected Sandra McKee as chair. McKee is an architect at the firm Yoshihara McKee and serves as chair of Manhattan Community Board 6.

The presentation for Freedom Plaza was noteworthy, in that it has been among the quieter projects thus far. It has largely avoided public consternation and political maneuvering, both of which have plagued most of the other bids.

Soloviev CEO Michael Hershman gave a passionate presentation, covering everything from commercial development to the core tenants of American democracy. The project draws its name from the connection to the United Nations headquarters nearby. A dedicated Museum of Freedom and Democracy will be included if the bid is successful.

“We have to come together as a society to make sure we understand that we have to work hard to secure the underlying principles — life, liberty, pursuit of happiness. Where better to do that than here in New York City, where the first capital of this country was located?” Hershman said.

Mohegan Gaming is the casino partner with Soloviev, and CEO Ray Pineault was also present. Pineault spoke about the tribal-owned company and its multi-generational mode of future planning. While Mohegan’s flagship Mohegan Sun property in Uncasville, Connecticut has been very successful, its expansion efforts have been mixed. Earlier this year, its Inspire resort in South Korea was seized by lender Bain Capital, and the company no longer operates the casino inside of Virgin Hotels Las Vegas.

Mohegan’s Chief Strategy Officer Nelson Parker told the committee Thursday that Freedom Plaza “would compete at the very highest levels around the world”.

The bill, introduced by Minister of Internal Affairs Brooke van Velden in April, would allow up to 15 operators to be licensed in the regulated iGaming market, with licences running for three years. Licensed operators are expected to go live by July 2026.

Opposing voice

During Tuesday’s session, Labour Party politician Lemauga Lydia Sosene spoke against the bill, arguing it opened New Zealand up to international operators without providing a strong enough plan for gambling harm reduction.

Sosene said: “It is important that the government is serious about supporting the reduction of online harm and, specifically, consumer protection, because the bill in its current form does not address those particular actions wholeheartedly. They are listed vaguely.”

Jamie Arbuckle, MP for the New Zealand First Party, which is part of the ruling coalition, supported the bill, noting it would curb the currently thriving unregulated market the country currently faces.

“This bill is to stop the unregulated situation that we find ourselves in at the moment. [It] will create a robust framework to regulate online casino gambling and protect consumers and minimise harm,” Arbuckle said.

“We want to make sure that only trustworthy operators are allowed to operate in the online gambling market.” 

Rules and regulations

The bill sets out plans for operators to pay a goods and services tax and an offshore gambling duty of 12%, as well as a mandatory levy of 1.24% of profits to fund services for gambling harm.

Licensees would be allowed to advertise gambling activities with limitations, such as no advertising to children. A suitable age verification tool will be required.

The 15 available licences would be awarded by auction. A number of operators have previously expressed an interest in being awarded a licence, including SkyCity, 888, Bet365, Super Group (owner of Betway) and TAB NZ, the monopoly operator of sports betting in New Zealand.

However, van Velden has previously stated TAB NZ will not be able to apply for an online casino licence, according to RNZ. TAB was recently granted the online monopoly for sports betting, meaning no other operators can legally offer betting in the online market.

The bill calls for the vetting and auction process to start in February 2026 before licensed operators can commence trading.

What’s next for New Zealand iGaming bill?

The bill will now advance to the Governance and Administration Committee. The following stage would be a second reading in Parliament, before being sent to the Committee of the Whole House.

Van Velden has motioned for this to happen by 17 November. This would then lead to a third reading before the bill could be signed into law. This could mean the bill is voted into law before the end of the year.

The ADM officially ended its tender process to award remote gambling concessions in Italy on 30 May. After reviewing submissions, an initial list of licensees has now been formed.

Among the operators featured on the approved list are Betfair, Snaitech and Sisal, all owned by Flutter Entertainment. Also securing approval were 888 Italia (Evoke), Hillside (Bet365), LeoVegas and William Hill.

Other successful applicants included Admiral Sport, Betsson, BetPoint, BetPremium Eurobet Italia, Greentube, Marathonbet, Win Bet and Winamax.

Operators will now proceed to the next phase of licensing, which will involve paying the required fee. In total, a licence in the new-look market will cost €7 million ($8.2 million) per vertical per brand.

The ADM will carry out further checks over the coming weeks before formally awarding the licences. This is expected to take place in September, with operators then having six months to launch in Italy.

However, to allow for transition, the ADM will permit existing licence-holders to continue to offer gambling until March 2026. After this date, only those with new licences will be able to operate in the country.

Increased fees a deterrent in Italy

The successful list of 46 submissions fell some way short of the previous round of licence applications. In 2018, some 93 operators applied for a licence, with 81 of those gaining approval.

Much of this can be put down to the higher fees associated with the licences. The new €7 million figure eclipses the existing fee of €200,000 under the previous licensing model.

Then there is the tax rate. Online sports betting and online casino operators will pay 24.5% and 25.5% tax on gross gaming revenue (GGR), respectively. Operators will also be subject to an annual fee set at 3% of GGR.

In addition, they will be required to spend at least 0.2% of their GGR on responsible gambling campaigns. This, however, will be capped at €1 million.

Italy has been running its regulated online gambling market since 2006, although the latest round of reforms will bring sweeping changes, not only to the licensing process but also the wider market.

Other changes include new player protection tools. These will allow customers to set limits on deposits, spend and playing time, as well as to self-exclude from online platforms.

Automated warning alerts will also aim to tackle compulsive behaviour, In addition, in what will be a first in European regulation, Italy will introduce stricter controls targeted at the younger 18-24 age bracket.

All eight final bids have been assigned community advisory committees (CACs), per the New York State Gaming Commission. These committees, which were appointed by the governor and applicable local lawmakers, will host public meetings in the coming months. A small portion of those making appointments simply selected themselves for the role, whereas most picked outside representatives.

Per the commission, their job is to “review the application, gauge local support, and ultimately issue a finding determining whether there is adequate support”.

This binding vote of public support for each bid must be held by 30 September, which is also when all entitlement processes (zoning, environmental reviews) must be completed. Only the bids that receive a two-thirds majority approval from their respective CAC will advance for further consideration. Seven of the CACs feature six members – MGM Empire City in Yonkers is the only bid with a five-member CAC.

The state gaming commission informed iGB Tuesday that the committees are currently canvassing schedules to determine meeting availability. There are no guidelines as to how many meetings each CAC must hold before voting, although a chair must be elected at the first.

Racinos in pole position

Due to their existing facilities and fastest speed to market, the MGM Empire City and Resorts World NYC racinos have long been assumed to be frontrunners for two of the three licences. Their CACs are as follows:

MGM Empire City

Maria Fernandez – deputy secretary of education, Governor’s Office
Larry Wilson – general manager, Port Authority of New York and New Jersey
Frank Jereis – executive director, Yonkers Democratic Party
Joe Apicella – executive vice president, MacQuesten Development
James Cavanaugh – executive member, Empire Strategic Planning

Resorts World NYC

Stevens Martinez – deputy director of intergovernmental affairs, Long Island, Governor’s Office
James Sanders Jr – state senator, Queens
Stacey Pheffer-Amato – assembly member, Queens
Donovan Richards Jr – borough president, Queens
Nicole Garcia – borough commissioner, Queens, NYC Department of Transportation
Betty Braton – chair, Queens Community Board 10

Manhattan madness

Of the eight bids, three are in Manhattan, the most among NYC’s five boroughs. Another significant proposal that had been considered in the area, Wynn Resorts’ $12 billion Hudson Yards project, was pulled in mid-May. Thus, the remaining Manhattan CACs include:

Caesars Times Square

Peter Hatch – deputy secretary, human services and mental hygiene, Governor’s Office
Richard Gottfried – retired former assembly member
Matthew Tighe – chief of staff for Assembly member Tony Simone, Manhattan
Chris Carroll – chief of staff for Manhattan Borough President Mark Levine
Laura Smith – chief counsel, advisory committee on judicial ethics, New York Court System
Carl Wilson – chief of staff for NYC Council member Erik Bottcher

The Avenir by Silverstein Properties and other partners

Angel Vasquez – deputy secretary for union relations, Governor’s Office
Richard Gottfried – retired former Assembly member
Matthew Tighe – chief of staff for Assembly member Tony Simone, Manhattan
Madeleine McGrory – director of land use and planning for Manhattan Borough President Mark Levine
Nabeela Malik – deputy director, Manhattan, NYC Department of City Planning
Quentin Heilbroner – Manhattan Community Board 4 liaison for NYC Council member Erik Bottcher

Freedom Plaza by Soloviev Group and other partners

Nichols Silbersack – deputy policy director, Governor’s Office
Sandra McKee – chair, Manhattan Community Board 6
Reshma Patel – board member, Manhattan Community Board 6
Celeste Royo – senior urban planner for Manhattan Borough President Mark Levine
Jennifer Sta. Ines – Manhattan deputy borough commissioner
Molly Holister – former chair, Manhattan Community Board 6

Intrigue in other boroughs

The other bids are in three different boroughs: Bally’s New York is in the Bronx, Metropolitan Park is in Queens and The Coney is in Brooklyn. Previously, Las Vegas Sands had proposed a casino in Long Island at the site of the Nassau Coliseum before pulling out in late April. As such, the non-Manhattan CACs include:

Metropolitan Park by Steve Cohen and Hard Rock

Gregory Anderson – deputy director of state operations, Governor’s Office
Larinda Hooks – assembly member, Queens
Donovan Richards Jr – borough president, Queens
Lin Zeng – director, Queens, NYC Department of City Planning
Francisco Moya – NYC Council member

Notably, one seat on the Metropolitan Park CAC was still unfilled as of writing. This spot was to be appointed by Senator Jessica Ramos, who publicly opposed the project and refused to endorse it. The state gaming commission did not immediately respond to a request for comment on this unfilled spot.

Bally’s New York

Rafael Salaberrios – senior vice president of small business capital access, Empire State Development
Alex Porco – chief of staff for Senator Nathalia Fernandez
Matthew McKay – deputy chief of staff for Assembly member Michael Benedetto
Lisa Sorin – president, Bronx Chamber of Commerce
Paul Philips – director of student communication, Hunter College
Danielle Volpe – vice president and general counsel, Posilico Civil

The Coney by Thor Equities and other partners

Portia Henry – assistant secretary for transportation, Governor’s Office
Jessica Scarcella-Spanton – senator, Brooklyn-Staten Island
Marissa Solomon – director, Pythia Public
Antonio Reynoso – borough president, Brooklyn
Alex Sommer – director, Brooklyn, NYC Department of City Planning
Justin Brannan – NYC Council member

Let the CAC politics begin

Now that the process has shifted into its next phase, the CAC appointees are likely to start feeling the lobbying pressure from both sides of the various bids.

To get to this point, each proposal has undergone some form of review, and each has garnered both support and opposition from various groups. The two-thirds majority approval is a high bar to clear, as stakeholders need support from all but one or two members.

Prior to the application deadline, these politics were laid bare during time crunches related to land-use processes. Some of the projects required rezoning approval from the state legislature, which adjourned on 12 June. Perhaps the most public example was Ramos’ opposition to Metropolitan Park, although Cohen and company got around this by enlisting Senator John Liu. Although most of the project is in Ramos’ district, a smaller portion is in Liu’s, which allowed him to sponsor rezoning legislation instead.

Bally’s Corp faced similar changes, as a key City Council vote was tabled before the deadline, creating a down-to-the-wire finish. In the end, the project got a major boost from Mayor Eric Adams, whose support lowered the council vote threshold to a simple majority instead of two-thirds. Without Adams’ support, the rezoning would not have passed.

Minister of Internal Affairs Brooke van Velden introduced the Online Casino Gambling Bill to the House of Representatives on Monday. The move follows the Cabinet’s earlier decision to regulate the currently unregulated online casino sector.

According to the bill, licensed operators will be allowed to advertise, although restrictions will apply. Unlicensed operators could face fines of up to NZ$5 million ($3 million) for breaking the law.

Applicants for one of the 15 three-year licences must submit detailed business plans to the regulator. These include operational strategies for New Zealand. So far, the likes of SkyCity, TAB NZ, 888 and Bet365 have shown an interest in entering the New Zealand iGaming market once it opens for business.

Van Velden confirmed that detailed regulations on advertising and harm prevention are in development. The government will specify the requirements that operators must meet.

“The Online Casino Gambling Bill will introduce a regulatory system for online gambling in New Zealand, which will prioritise harm minimisation, consumer protection and tax collection,” said Van Velden.

“The bill will proceed to select committee later this year and New Zealanders will have the ability to have their say through the select committee process.”

Three-step New Zealand gambling licensing procedure

While the finer details of the regulatory system are being developed, the bill sets out key licence conditions.

The bill establishes a structured three-step licensing procedure, starting with an invitation for expressions of interest. This is followed by a competitive process, and finally, formal applications.

The Department of Internal Affairs will maintain full regulatory authority, including licensing, oversight, enforcement and the publication of a public operator registry. It will also hold powers to issue take-down notices, formal warnings and binding undertakings.

Operators must take all reasonable steps to minimise the risk of harm caused by online casino gambling. They must also exclude anyone who identifies as a problem gambler or requests to be banned from the platform.

The bill bans offering credit to gamblers when the operator knows – or should know – it is intended for gambling. It also prevents licensees from offering products that closely resemble existing National Lottery games.

The Online Casino Gambling Bill’s introduction comes just days after a law was passed that confirms TAB NZ as the sole legal provider of online sports and racing betting in the country. It is thought that the new regulations could provide a major boost to the nation’s betting industry.

TAB partner Entain this week committed to injecting NZ$100 million into the racing sector after the amendments came into effect. 

The ruling National Party backed gambling reform ahead of its election victory in 2023. During the campaign, New Zealand’s two main parties clashed over the subject of offshore gambling revenue. National said it could raise NZ$179 million per year from offshore operators.

Earlier this year, H2 Gambling Capital estimated just 10% of New Zealand’s online gaming revenue was generated onshore.

The German Sports Betting Association (DSWV) renewed its call for urgent reforms to the country’s gambling laws after the Joint Gambling Authority of the Federal States (GGL) published comprehensive industry figures for 2024. The data revealed that around 25% of all gambling in Germany still takes place via unlicensed operators – a figure DSWV claims could significantly underestimate the real scale of the black market.

DSWV expressed particular concern over the revelation there are currently 11 unlicensed gambling operators for every licensed betting platform in the country.

“This development is a warning signal,” said DSWV President Mathias Dahms. “Illegal providers benefit from the fact that they can offer a much wider range of bets – especially in the area of particularly popular live betting and the number of sports and competitions that can be bet on.

“This is precisely why many users switch to these illegal sites.”

DSWV questions black market figures

According to GGL’s 2024 statistics, the number of illegal German-language sports betting websites monitored by the regulator increased from 281 in 2023 to 382 – a 36% rise. In comparison, only 34 websites from 30 operators held licences and appeared on the official white list published by the GGL.

While the regulator has, for the first time, offered a concrete estimate of the unauthorised gambling market share, DSWV remains sceptical. The group pointed to several independent studies – including the Schnabl report, commissioned by DSWV and DOCV – which suggest the black market may exceed 50% of all gambling activity in Germany.

DSWV argued that these figures highlight fundamental flaws in the current regulatory framework, which was introduced via the 2021 Interstate Treaty on Gambling.

“At least a quarter of the market is illegal – this is clear, official confirmation that the black market has long been a serious structural problem and not a marginal phenomenon,” said Dahms.

“Anyone who wants to strengthen player protection must ensure that legal providers become competitive. Otherwise, it is precisely this protection that will be undermined by illegal offers.”

DSWV calls for gambling regulation reform in Germany

DSWV claims the GGL’s new figures underscore the need for a regulatory overhaul to make the licensed gambling market in Germany more attractive to consumers. The association said licensed betting operators face excessive restrictions and should be allowed to offer a broader range of products.

In contrast to the black market, licensed operators in Germany are subject to strict compliance requirements, including mandatory identity verification, bet limits and access to the national cross-operator player blocking system.

In Germany there is a €1 maximum stake limit on online slots in place, as well as industry-wide deposit limits, as enforced by the Interstate Treaty. Players are also capped at a €1,000 monthly deposit across all regulated platforms.

Back in December 2023, an interim evaluation of the Interstate Treaty was launched to assess the effectiveness of current gambling regulations in Germany and make recommendations for improvements. Some of these suggestions are likely to be adopted by the federal states when they amend the law this year.

“The legal market is safer today than ever before, with extensive measures to protect players,” said Dahms.

“But if this market becomes less attractive due to overregulation, users will switch to illegal offers. Only those who create a reputable but also attractive offering can keep players in the legal market and effectively curb the black market.

“The best protection against the black market is an attractive, legal offering. This includes more permitted types of betting, more live betting and realistic regulation.”

In a statement issued Sunday, the agency called out 11 fraudulent sites that claim to be licenced. They are: efesbetcasino514.com; OG7777.com; Mpo500.com; QQ88.com; mpo2121.com; Lgolive.com; napolibet.com; Kratosbet.com; mpossport.com; efsanebahis434.com and cazeus2.com.

The illegal sites are out to deceive the public, to the point of displaying the PAGCOR logo and fabricated licence certificates.

“These platforms are not authorised to operate under any PAGCOR-issued licence,” said Alejandro Tengco, PAGCOR chairman and CEO. “The use of PAGCOR’s name and logo is a blatant disrespect to the agency and poses a threat to the public.”

Philippines banned offshore gaming in 2024

Last summer, President Ferdinand Marcos Jr banned Philippines Offshore Gaming Operations (POGOs) due to allegations of organised crime.

In his 22 July State of the Nation address, Marcos said POGOs, disguised as legitimate gaming operations, served as fronts for online scams. Moreover, they “ventured into illicit areas furthest from gaming” including “money laundering, prostitution, human trafficking, kidnapping, brutal torture, even murder”.

While the POGO ban was effective immediately, Executive Order 74 gave operators until 31 December to wind down. Six months later, however, former licensees and service providers continue to operate.

“Any entity claiming to operate under a PAGCOR licence for offshore gaming is clearly violating the law,” Tengco said.

Lucky 7 pay-to-play scam

In May, PAGCOR warned about fraudulent gaming certifications linked to Lucky 7 Bingo Corp, a licenced operator of egames venues.

According to PAGCOR, bogus partners of the company ran a pay-to-play scam in which bettors had to deposit PHP3,000 ($53) for a chance to win PHP50,000.

“While Lucky 7 Bingo Corp is a legitimate licensee, it does not hold any valid offshore gaming license,” emphasised Jessa Fernandez, head of PAGCOR’s Offshore Gaming and Licensing Department. “The license presented in said agreements is fake, and any engagement based on it is fraudulent.”

Fernandez urged citizens to “exercise due diligence when engaging with entities that claim to be PAGCOR-related”.

Tengo asked for the public’s cooperation in reporting bogus sites.

In its annual report, the Gemeinsame Glücksspielbehörde der Länder (GGL) gambling regulator said GGR grew by 5% year-over-year to €14.4 billion. That figure is up 5% on 2023, outpacing the 2% year-over-year growth in the prior period.

Tax and levy revenues from gambling amounted to approximately €7 billion. In 2023, tax revenue from gambling was approximately €6.6 billion.

GGL targets illegal gambling market – but figures still don’t add up

In the illegal market during 2024, the GGL said it registered 858 German-language gambling websites operated illegally by 212 operators. This was slightly up on the 205 identified in 2023.

The GGL estimates that the illegal German language websites it recorded represent a market volume of between €500 million and €600 million. In 2023, the figure was estimated to be between €400 million and €600 million.

Illegal market volume is estimated to be approximately 3% to 4% of the entire legal market (terrestrial and online) and approximately 25% of the legal market for dangerous online gambling, such as virtual slot machines or sports betting.

Just how big is the illegal German gambling market?

That figure prompted major pushback from the industry, which argued it massively underestimated the scale of Germany’s offshore market. The latest figures have prompted even more debate on the matter.

At best, less than half of all gambling activity is channelled into the legal market, according to a University of Leipzig study.

But according to H2 Gambling Capital figures, the GGL still doesn’t capture the full scale of Germany’s illegal market and the Leipzig study may also be underestimating its size.

In 2024, H2 estimated just 40% of revenue was generated onshore. For 2025, it expects 36% of online gambling in Germany to be generated via legal sites.

Enforcement action ramps up in the German gambling market

In 2024, the GGL initiated 231 prohibition proceedings and over 1,700 websites were reviewed. In 2023, more than 1,800 websites were reviewed and prohibition proceedings were initiated in 133 cases.

Approximately 450 illegal gambling sites were no longer accessible from Germany in 2024 due to prohibition orders. Another 657 were no longer accessible due to geo-blocking based on the Digital Services Act (DSA).

The GGL also highlighted the positive impact of adjustments to Google’s advertising guidelines, which the regulator helped to shape. Since September 2024, only authorised providers in Germany have been allowed to advertise via Google Ads. This “significantly reduced the visibility of illegal offers”, the GGL said.

“Our measures are having an impact,” said Ronald Benter, chief executive of GGL. “Nevertheless, combating illegal offerings remains challenging and requires perseverance and close cooperation with national and international partners.”

Tipico executive queries GGL figures

At the time these new Google changes were introduced, industry figures wondered whether they would have a major impact.

And while the GGL hailed the impact of the Google changes on the illegal market, the industry remains unconvinced. In a LinkedIn post, Christian Heins, director of iGaming at Tipico, outlined his concerns about the accuracy of the GGL figures and its claims.

Heins believes that the online casino black market alone could easily be worth up to €2 billion. That figure is three times the total illegal market estimated by the GGL.

Heins based his figure on what he identifies as disparities between tax revenue and revenue. His estimate was also influenced by online traffic data, which suggests 50% more traffic for the black market than the legal market on average.

Heins also pointed to the impact of the Google changes, noting that December’s figures merely returned to July levels and remained stable through January. The Tipico executive said the figures only started dropping after this due to systematic reporting of black market operators and increased pressure on Google.

GGL to expand advertising monitoring

Last year, the GGL processed 230 permit and amendment applications and supervised 141 providers. In comparison, the GGL approved 39 applications for basic licenses to organise and broker cross-border gambling in 2023.

Looking ahead, the GGL said it expects further court rulings on its measures, thus providing even greater legal certainty in its approach. It plans to expand advertising monitoring, while the development of the use of safe servers is intended to improve oversight of the legal gambling market and enable more precise monitoring.

The GGL said a particular focus is on cooperation with national and international authorities to effectively curb the illegal gambling market. This will, it said, target not only the providers themselves, but also technical service providers, advertising partners and other supporting actors.

Benter added: “Our stated goal is to make the business model of illegal providers unattractive through a comprehensive package of measures. Combating illegal offerings remains a long-term process that requires strategic action, decisive action, and close interagency cooperation.”

The board voted unanimously to approve a $500 million licence fee as well as a $500 million minimum capital investment. Bids will be due by 27 June and the commission will award licences by the end of the year.

There are several other steps applicants will have to navigate. For example, all entitlement processes such as zoning and environmental reviews must be completed by 30 September. Zoning issues in particular have created a time crunch this month, as most of those cases have tight windows.

Bally’s Corp secured rezoning approval for its Bronx bid from both the New York City Council and the state legislature last week. The Coney proposal from Thor Equities and other partners on Coney Island still needs de-mapping approval and a vote on that that won’t come until 19 June at the earliest. All three Manhattan bids are undergoing environmental reviews.

Community response will prove vital

So far, the various New York bidders have spent considerable time fulfilling the necessary obligations related to the process. This includes garnering community support and endorsements in addition to all requisite approvals. Once the official bids are finalised, the process will in essence begin again.

Every bid that is submitted will have a community advisory committee assigned to it. Per the NYSGC, these CACs “will be created to review the application, gauge local support and ultimately issue a finding determining whether there is adequate support for the proposed project.” Each CAC will host multiple meetings garnering feedback and each will hold a binding vote on whether a bid can continue, with the threshold for approval a two-thirds majority.

The makeup of each CAC will depend on whether a bid is located inside of New York City or out of it. For those inside the city, each CAC will consist of Governor Kathy Hochul, NYC Mayor Eric Adams and the applicable state senator, assembly member, borough president and city council member.

As of now, only the proposal by MGM Empire City in Yonkers is outside of the city. MGM and any other such bidders will have a CAC consisting of Hochul and the applicable county executive, state senator, assembly member and the locality’s senior elected official. For cities, that is the mayor; towns would be the town supervisor; and villages would be fulfilled jointly by the village mayor and town supervisor.

Competitive tax bidding?

CACs must hold their respective binding votes by 30 September. Bidders receiving their approval will then pay a $1 million application fee and submit all previous materials to the facility location board, which will embark on its own review process. Notably, the tax rate will be negotiated as part of the bidding process.

The commission states that an applicant “may propose a tax rate on gross gaming revenue as part of its application, so long as the tax rate is at least 25% for slot gross gaming revenue and 10% for gross gaming revenue from all other sources”.

There are four primary categories the board will review: economic development, local impact siting, workforce enhancement and diversity frameworks. Economic development will constitute 70% of the consideration, with the other three categories representing 10% each. Selections must be made by 1 December.

Selections made by the board will then be considered once more for a final ruling by the commission. Three licences are available, but the commission has discretion to issue fewer, or none.

Push and pull

With the financial requirements now set, New York will look to toe a fine line of capitalising on casinos’ economic value while maintaining an attractive business environment. The minimum investment is somewhat low, in that all proposals easily clear the bar. But the $500 million licence fee is steep, especially as any development except for the existing racinos would require time before they could begin operating.

That is perhaps the chief reason why the racinos have been presumed from the start to be frontrunners for two of the licences. The state could theoretically bring in $1 billion right now by approving those bids, something that Yonkers Mayor Mike Spano has urged.

The open-ended tax rate is indicative of a desire for a rate well above the 25% slot and 10% table minimums. New York hosts the largest online sports betting market by handle, but its 51% tax rate is tied for tops in the country. The future downstate casinos, meanwhile, will have ample competition, most notably from nearby Atlantic City as well as New York’s upstate commercial and tribal casinos.

The possibility of future online casino legalisation is also a major factor. Despite the fact that it is not currently legal in New York, there is a good chance it will be eventually. In New Jersey, iGaming revenue has skyrocketed while casino revenue has stagnated or declined in some cases. This fear of land-based revenue cannibalisation was cited by both Las Vegas Sands and Wynn Resorts in dropping plans to bid for a casino licence.

The Progress Party has been calling for an end to the gambling monopoly in Norway since its 2021 election manifesto. With the next general election scheduled for 8 September, Hjemdal has reaffirmed her party’s plans to make significant changes to the current framework.

Speaking at a May conference held by Norway trade body Norsk Bransjeforening for Onlinespill, family and culture committee member Hjemdal pointed to fellow Nordic nations Finland, Sweden and Denmark as remote gambling frameworks to learn from.

However, she told the audience the party is not yet sure which model Norway would follow.

“I haven’t landed on a concrete model, but I think what’s happening in Denmark is very exciting.
And I’d gladly take a study trip there to learn more,” she said during the conference.

“We are one of very, very few countries left that have this [remote gambling] model,” Hjemdal said.

“We must regulate better, and the way the model is today, there are actually very large sums of money that are sent out of the country every year, without going back to Norwegian sports or culture.”

Norsk Tipping under pressure

Under current regulations in Norway, gambling is only legally provided by state monopolies Norsk Tipping and Norsk Ristroto, which offer online gambling, sports betting, horse racing, lottery and physical slots.

Norsk Tipping has faced a number of regulatory setbacks of late, including an investigation by the Norwegian Gambling Authority (Lotteritilsynet) after it received a tip-off that a minor had transferred funds to the operator.

Meanwhile in February, Lotteritilsynet announced Norsk Tipping was facing a fine of up to NOK36 million ($3.2 million) for preventing players from self-excluding.

In Hjemdal’s view, Norsk Tipping is failing to live up to its role as a monopoly organisation, again reaffirming the need for an open market.

“There’s a narrative that Norsk Tipping is the safest, the best, the most thoughtful and that it doesn’t make mistakes,” Hjemdal continued. “But they’ve been caught time and time and time again.

“Now, admittedly, they have to pay a lot for it. But fortunately, we also have journalists in the country’s major newspapers who really dare to address this. And I think that’s good, because we also need the media to seize these issues.”

Conservative Party support for an open market in Norway

As well as Hjemdal’s Progress Party, the Conservative Party is also in favour of ending Norway’s gambling monopoly.

It too called for the monopoly to be eliminated in its latest manifesto, launched in September last year.

This is the closest Norway has been to liberalising its remote gambling sector, NBO chief Carl Stenstrøm told iGB in September.

Based on the increased political support from both parties and the influence they could have following September’s general election, he believes the market could be opened by 2028.

Norway is the final country in Scandinavia to maintain a gambling monopoly and nearby Finland is currently in the process of liberalising its market, which also helped spark political interest in Norway for new regulation.

Speaking to Sigma magazine ahead of the changes, Moreno Marasco, the president of Italy’s LOGiCO online gambling association, predicted a steep decline in the number of operators active in the jurisdiction.

Compared with the previous tender that attracted 93 applications, only around 50 are believed to have thrown their hat in the ring this time around. At current predictions, the Italian market is expected to shrink from the current 81 to around 33 concessionaires, cutting the number of remote operators by around 60%.

“This is a significant drop, despite the Italian market’s exponential growth in both revenues and legal operators,” Marasco said.

When the new system comes into force, he added, “the competitive landscape will be thoroughly redrawn”.

The main reason behind this tectonic shift is that ADM has set much higher hurdles for would-be concession-holders this time around. One in particular – an initial licensing fee of €7 million – has inevitably priced smaller players out of the market.

Rapid consolidation

According to Christian Tirabassi, founder and senior partner at M&A advisory firm Ficom Leisure, this consolidation is exactly what the government had hoped to achieve.

For years, there were surprisingly few barriers to entry into one of Europe’s most affluent and prominent gambling markets. Now, in a move to modernise its legislation and bring regulations up to speed with the scale of the market, regulators are weeding the smaller fish out of an increasingly sizeable pond.

“There are very small companies that were able to operate in a market that was [worth] €4 billion at the time, now €5 billion, with an investment of €250,000,” said Tirabassi, referring to the previous cost of an Italian remote gaming concession.

“The regulator decided that this is not acceptable. You don’t want to put a delicate operation like this in the hands of a company without financial strength.”

This time around, the focus has been on companies that can meet the highest financial, technical and compliance standards – those who, in the words of Tirabassi, won’t skip AML requirements to save €5,000.

‘Natural selection’

As well as shelling out €7 million per vertical and per brand, online sports betting and online casino operators will pay 24.5% and 25.5% tax on GGR respectively. Operators are also subject to an annual fee set at 3% of GGR and must spend at least 0.2% of their GGR on responsible gambling campaigns – capped at €1 million.

In preparation for the new concessions scheme, Ficom has been involved in several M&A deals in which small- and medium-sized operators were absorbed by larger ones. While consolidation is nothing new, Italy’s gambling reform seems to have dramatically accelerated the trend.

“Post-tender, we expect large, integrated, multi-product, multi-channel companies to dominate the market,” Tirabassi explained.

In future, the M&A specialist expects just a handful of operators to generate around 80% of Italy’s €5.2 billion in remote GGR, with no more than 30 or 35 operators active in the legal market as a whole.

“The reform has brought the price of the licence to a normal level,” he added. “The previous price – how cheap it was – that was the abnormal part. Add to that the stricter requirements and the fact that, to be successful in Italy, you need to be omnichannel. All of that has created natural selection in favour of larger corporations.”

Sweeping gambling reform in Italy

The rapid concentration of revenues in the hands of a small number of operators is far from the only change afoot in Italy. With its overhaul of the system, the government wants to ramp up standards in everything from cybersecurity to AML and player protection.

An outlier within Europe, Italy has regulated online gambling since 2006. When the new technical reforms come into force – some months after the concessions are awarded – it will put an end to a scheme that has been in place for almost 20 years.

Some new regulations are designed to adapt to – and make better use of – the trend towards digitalisation. For example, a number of new player protection tools will be put in place, allowing customers to set limits on their deposits, spend and playing time, as well as self-excluding from online platforms.

Automated warning alerts will also aim to dampen compulsive behaviour, with stricter controls targeted at the younger 18-24 age bracket – a first in European regulation.

The relative stability in Italy’s gambling market over the last decade has paid dividends for the industry, with total GGR hitting €21.6 billion in 2024 – up 4.4% from the year before. Around a quarter of this – €5 billion – was accrued online and operators are seeing dizzying growth in this sector.

Flutter primed to lead with Snai in its Italy inventory

This consolidation has already been seen in deals like Flutter’s €2.3 billion acquisition of Playtech’s Snaitech last year.

In September, analysts at Jefferies estimated Flutter could end up with a 30% share of the Italian gaming market with Snaitech in its portfolio, thanks to its multi-brand positioning. It expects the group to maintain a top spot for online share.

Flutter had a 15% GGR share of the Italian online betting and iGaming market in 2023 through its Sisal and PokerStars brands. Snaitech came in just behind on 10%.

Delays to land-based Italy gambling reform

Along with the new remote concessions, Italy is also set to overhaul its land-based market, unifying its licensing scheme, introducing strict location rules, limiting cash deposits to €100 per week and introducing mandatory ID and self-exclusion systems.

However, pressure from regional authorities has forced the government to push back these reforms to mid-2026, rather than the end of 2025 as previously planned. By then, the federal and local governments will aim to clarify some crucial questions over funding.

According to Tirabassi, success in the Italian market depends on having a scalable omnichannel business, operating both online and land-based gambling under the same brand.

Since skins are forbidden under the new concessions scheme, operators will have to secure concessions not just for every vertical and channel they want to operate in, but also for any separate brands. This could make the consolidation of the market all the more visible in future.

With the higher barriers to entry, the Ficom founder predicts those who win out in the market could ultimately reap much greater rewards, sharing larger proportions of an even larger pie.

Amid these rapid changes, however, one thing is set to remain the same: incumbent IGT will continue to exclusively operate the Italian lottery until 2034.

After a nail-biting clash of the titans, the IGT-led consortium LottoItalia announced it had beaten contender Flutter to win a nine-year renewal of its exclusive lottery concession. It did so by putting together a bid of €2.23 billion for tender – more than double the €1 billion base price – proving once again that in the modern Italian market, it’s all about financial clout.

Monday, the Secretariat of Prizes and Bets (SPA) reinstated Logame do Brasil Ltda and Sortenabet Gaming Brasil SA’s licences after they filed the necessary technical documents with the regulator.

Normative Ordinance No 722, published last year, requires operators to submit an evaluation report of their betting systems to the SPA. Recognised certifying entities must issue the report, which operators must then submit to the regulator within 90 days of receiving licensing approval.

EA Entretenimento e Esportes and Bet.Bet Soluções Tecnológicas SA quickly filed their reports last week, upon the list’s release. Then a federal court granted a preliminary injunction to Pixbet to reinstate its licence, as is it the primary sponsor for Flamengo football club. It is illegal for unlicensed brands to sponsor and feature in any sporting games, so a judge quickly reinstated Pixbet’s licence ahead of Flamengo’s match on the weekend.

Now, just Bell Ventures Digital Ltda and Betesporte Online Betting Ltda remain on the list. It means the SPA will allow Logame do Brasil’s LiderBet, GeralBet and B2xBet brands, and Sortenabet’s SorteNaBet, Betou and BetFusion to continue operating.

Are the SPA licence suspensions fair?

Back in April, the SPA similarly suspended the licences of four operators that had failed to present technical certificates.

These suspensions included Pixbet, which also had its licence reinstated by a federal court decision at the time.

Brazilian lawyer Fabio Ferreira Kujawski told iGB the licence suspensions were unfair.

In his view, the actions could demonstrate a “certain lack of dialogue and understanding” from the regulator.

“In our view, the suspension of the authorisation was a disproportionate response to the infraction committed,” Kujawski said.

“The SPA needs to understand that there are several companies already established in the market, with million-dollar sponsorship contracts, and that a suspension of authorisation should only occur in extremely serious cases of repeated violations of Brazilian law.”

Kujawski feels the SPA should assert authority over Brazil’s market, but must also find a balance.

“This cannot translate into an agency that applies sanctions in a disproportionate manner or adopts an inquisitorial stance against the sector it regulates,” Kujawski added.

“A balance must be struck between an active agency and a belligerent one. I am convinced that the SPA will find this right path.”

Geoff Ballotti, president and CEO of hospitality giant Wyndham Hotels & Resorts, called in to the hearing to offer praise for the casino proposed at 1515 Broadway. Caesars Entertainment is partnering with SL Green and Roc Nation for the bid, not Wyndham.

However, Caesars and Wyndham allow for rewards points cross-matching, a popular arrangement among gaming and non-gaming hotel operators. As of last year, Wyndham was listed as the largest hotel operator in the US by property count, per CEOWorld magazine.

“We believe that this is the only location, having looked at them all, been approached by other partners, where a casino will blend seamlessly into the identity and character of a neighbourhood that really needs an upgrade,” Ballotti said.

He later called the project “the most comprehensive private safety and security investment in the history of Times Square” and said it has Wyndham’s full support.

No housing, no displacement

As the race for three available downstate New York casino licences continues, bidders are starting to hone their arguments around what they feel are the strongest points of their proposals. In Caesars’ case, that has become housing. Nearly all other bids feature some type of housing commitment, but they are more disruptive in terms of construction.

Caesars is renovating an existing office building and therefore cannot offer housing. But the efficiency of using an existing building that didn’t have housing anyway is becoming a main selling point for the project.

For comparison, Wynn Resorts’ Hudson Yards bid was tanked in part by an underwhelming housing commitment and Silverstein Properties at the last minute has added 100 units to its proposal, which is also located in Manhattan.

“Instead of building big, we’re reusing an existing, outmoded office building, creating a hotel and gaming facility within a 1960s-era building’s existing footprint,” Garret Armwood, vice president of government affairs for SL Green, said during Wednesday’s meeting.

“This is adaptive reuse at its finest,” he continued. “A low carbon footprint with faster delivery and fewer disruptions during construction.”

Public sentiment turning?

The second public comment portion for the Caesars project was very different from the first. Last week’s call was dominated by union officials voicing support for the project. This time around, the mix of callers who were opposed versus supportive was about 50-50, perhaps even slightly more opposed.

A large number of local residents called in for the second portion and seemed to be frustrated with how the state’s process is playing out. Multiple callers were irritated that an environmental hearing was being dominated by unions talking about job benefits, instead of there being a focus on the impact to local communities.

Some opponents suggested that the developers could be paying for the support, both publicly and privately. One man alleged that the partners were engaging in schemes like offering free food for petition signatures and paying as much as $20,000 per month for some officials’ support. No such allegations have been verified.

The meetings, although public, haven’t been widely advertised, and some residents suggested this was intentional. Overall, Caesars does not appear to be as free from local opposition as previously thought, despite its location in one the least residential areas of the city.

The state commission has plans to award three casino licences by year’s end from among numerous bidders expected to submit their applications next month.

Trade and Industry Minister Parks Tau named Siyakhaya Holdings as the new operator on Wednesday 28 May. The licence covers the National Lottery and Sports Pools. The announcement arrived just days before the current licence, held by Ithuba Holdings, expires on 1 June.

Eight companies competed for the R180 billion ($10.0bn/€8.9bn/£7.5bn) contract.

Litigation has already commenced over this fourth National Lottery and Sports Pools licence award. Critics have also questioned Siyakhaya’s links to businessman Sandile Zungu, a prominent member of the governing African National Congress (ANC).

Gauteng-based Sizekhaya is led by a consortium that includes tycoon Moses Tembe and Zungu. Sizekhaya is part-owned by betting company, Goldrush Holdings. 

Court to decide on temporary South Africa National Lottery licence

The immediate concern is the state of lottery operations from 1 June, when Ithuba’s licence expires.

Minister Tau tried to issue a one-year temporary licence. However, Wina Njalo, one of the unsuccessful bidders, challenged this in court. The Gauteng High Court ruled the temporary licence period could not exceed five months.

Ithuba is considered the only business that can operate the South Africa National Lottery at such short notice. However, the group has already said that a licence period restricted to just five months would be financially unfeasible.

The DTIC and the National Lotteries Commission (NLC) plan to contest the ruling in court today, Thursday 29 May. They fear a gap in operations until Siyakhaya can begin.

NLC chairperson Barney Pityana warned of serious consequences in an affidavit. “If the court does not come to its assistance and extend the suspension period, there will be no lottery operations for at least nine months, from 1 June 2025,” he wrote.

He added that the suspension could cost R1.8 billion in good cause funding.

In the initial hearing, Judge Sulet Potterill ruled that the temporary licence favoured Ithuba and was therefore unconstitutional.

Wina Njalo’s complaint included the minister’s failure to explain delays. The judge agreed. She said the minister had not fulfilled his constitutional duty to provide reasons.

Tau responded that he intended to announce the new provider by 28 May.

Who are Sizekhaya Holdings?

Sizekhaya says it is setting up its structures and putting in place the necessary infrastructure after its confirmation.

It explained that a variety of shareholders and a management team with business, gaming, and operational experience form its consortium. JSE-listed Goldrush owns 50% of Sizekhaya, while Bellamont Gaming and Zungu hold additional shares.

Sizekhaya also confirmed that it will use Chinese supplier Genlot as its technology partner.

Tembe said: “South Africa has hit the jackpot with Sizekhaya. Our vast experience in gaming in the country along with the brains trust we have assembled driven by the collective vision of creating a more enhanced national lottery for good causes, will grow the lottery so more good causes benefit.

“Our choice of technical partner was deliberate as well as we were determined to minimise the amount of foreign exchange that leaves the country.”

Ithuba and political rivals oppose decision

Ithuba, which has run the National Lottery since 2015, may take legal action following the decision.

“We are expectably deeply disappointed by the recent decision made by the Minister of DTIC and the NLC. We believe that this decision undermines the principles of localisation and inclusive economic growth set out in the Request for Proposal,” Ithuba said in a statement.

“Our game portfolio is locally developed, our operational model prioritises economic inclusion, and our reach extends across urban and rural communities, ensuring accessibility for all South Africans from day one.”

The decision disregards the efforts to build a homegrown lottery ecosystem that supports small businesses and job creation and channels maximum revenue to good causes, Ithuba added.

The ANC’s political rivals have also slammed the decision, alleging cronyism.

The Economic Freedom Fighters (EFF) said in a statement: “Instead of ensuring fairness, transparency and compliance with the Lotteries Act, [Minister Tau] has compromised a public asset, by awarding a contract worth over R180 billion over the next eight years to benefit the ANC’s cronies in a clear case of state capture.”

Minister defends process

Trade and Industry Minister Tau responded to the widespread criticism in a statement that announced Siyakhaya as the successful bid.

“It is most unfortunate that this matter has already become the subject of litigation and a judgment of the High Court,” Tau said.

“I am seeking legal advice with a view to appealing against the judgment’s findings and orders, and I reserve all my rights concerning this judgment. With due respect to the Honourable High Court, my announcement is the result of my undertaking made to the bidders and the Court before the hearing of the application.

“I look forward to the growth of the lottery and the sports pools under the stewardship of Sizekhaya and to a mutually beneficial and healthy working relationship between the DTIC, the NLC and Sizekhaya. I also look forward to increased contributions to the many needy beneficiaries of the National Lottery Distribution Trust Fund.”

The General Commercial Gaming Regulatory Authority (GCGRA) approved the two international gaming technology groups to offer their services to the Middle East state’s nascent lottery market. This takes the total number of suppliers licensed by the authority to nine.

Previously approved vendors include slot machine manufacturers and payment providers, among them IGT Global Services, Novomatic and Aristocrat Technologies Europe.

The GCGRA was established by the UAE in 2023 to establish the market’s regulatory framework for gambling, national lottery and commercial gaming. In June last year it awarded the nation’s only lottery licence to The Game LLC. Later in 2024, the GCGRA awarded Wynn Resorts the UAE’s first commercial land-based casino gaming licence.

Scientific Games piqued by UAE opportunity

Already present in 50 nations, Scientific Games welcomed the opportunity to offer its lottery products and services in the UAE market.

“We are extremely pleased that Scientific Games has been authorised as a lottery supplier in the UAE with this licence,” said Michael Conforti, president of international business for Scientific Games.

“We look forward to putting our more than 50 years of expertise to work in the UAE to offer high-performing products that will responsibly help drive revenue for lottery programs supporting local communities and projects of national importance.”

Random State hails ‘major milestone’

Sweden-headquartered Random State, which offers real-money eInstant games and bespoke digital-lottery products, sees strong opportunities in the UAE.

“The UAE has the potential to become one of the world’s most dynamic digital-lottery markets,” said Adam Fonsica, co-founder and chief operating officer at Random State. “Earning the GCGRA’s trust is a major milestone for us. We’re eager to introduce our gamified eInstants and custom draw games to local players later this year.”

UAE Lottery launch unclear

Licensee The Game LLC operates as the UAE Lottery, offering a range of lottery games and other products. Tickets went on sale in November 2024, ahead of its inaugural draw on 14 December.

In the run-up to that milestone the GCGRA issued a warning clarifying that the UAE Lottery was the only legal lottery available across the country. Two duty-free lotteries – Big Ticket in Abu Dhabi International Airport and Dubai Duty Free – can run draws for travellers.

Last year, the GCGRA said the UAE Lottery “caters to players’ variety of interests and financial preferences”.

The GCGRA describes The Game as “a commercial gaming operator specialising in game development, lottery operations and gaming-related content”. It is a subsidiary of Momentum, an Abu Dhabi-based business that claims expertise in mobile games development and publishing, virtual reality, iGaming and esports management.

Land-based casino gaming licensee Wynn Resorts is already building its Wynn Al Marjan Island Resort. The Ras Al Khaimah (RAK) project is a joint venture between affiliates of Wynn Resorts, Marjan and RAK Hospitality Holding.

Wynn expects to open its multi-billion-dollar project in Q1 2027. Al Marjan Island is 15 minutes from Ras Al Khaimah International Airport and 45 minutes from Dubai International Airport. It is about 65 miles from Dubai, the UAE’s largest city.

It will have a gaming floor, 1,000+ hotel rooms, convention facilities, shopping and restaurants.

Silverstein is partnering with Greenwood Gaming and Rush Street Gaming for the project. Greenwood was the original partner and Rush Street just joined the project on 15 May.

Greenwood operates the Parx casino brand while Rush Street operates the Rivers brand. The three partners are proposing a sprawling casino-resort on a vacant 93,000-square-foot lot Silverstein owns on the corner of 41st Street and 11th Avenue (pictured below). “Avenir” is French for “future”.

The scope and purpose of the meeting was identical to that of the previous day for the Caesars Palace Times Square proposal: to garner feedback early on in the environmental review process. As with Caesars, the NYSGC has deemed Avenir to be a “Type I action”, which means it’s a significant development that requires various environmental approvals.

A second virtual community input meeting is scheduled for 29 May at 5pm local time. Official bids for three available downstate casino licences are due by 27 June. The licences will then be awarded by the end of this year.

A longstanding relationship

Compared to Caesars, the Avenir presentation was much longer. Speakers included Silverstein Chief Marketing Officer Dara McQuillan and Nancy Ruddy, founding principal of CetraRuddy Architecture. McQuillan emphasised Silverstein’s meaningful relationship with the city, which stems from the rebuilding of the WTC site post-9/11.

“It’s that experience and that willingness to cooperate and work with our neighbours in our community that I think really sets us apart as a real estate development firm,” he said.

All three partners are privately owned companies, McQuillan said, meaning they aren’t “driven by quarterly earnings or shareholder requirements”. Accordingly, they have “the time, patience and commitment” to dedicate themselves to the project’s success.

He also explained that the site is tricky for Silverstein in that it isn’t ideal for residential development, which is its niche. A casino licence, however, makes the site a great commercial development opportunity, he said.

The arts and local artists were featured prominently in the presentation. Silverstein offers free studio space in some of the extra space in its buildings, McQuillan said. A fence surrounding the lot has also been painted by local artists. One of the Avenir’s amenities would be a block-long public community gallery along 11th Avenue.

‘Quintessentially New York’

Ruddy ran through the architectural details for the project, which would be over 1.6 million square feet of multi-use building, she said. Of that total, the casino would be 200,000 square feet. The hotel would feature a total of 1,000 rooms. A diagram illustrated the interior breakdown of the building fully built out.

“We hope that you see that we’re proposing a quintessentially New York building that is compatible with the local West Side context,” Ruddy said.

Similar to Caesars in Times Square, Ruddy stressed the walkability of the site to many other nearby neighbourhoods and attractions, including the theatre district, the garment district, Hell’s Kitchen and the Javits Center.

Artists’ endorsement, locals’ derision

The Avenir hearing did not garner as many speakers as Caesars, but the majority were in favour. Most were creatives of some sort, citing their appreciation for Silverstein’s artist programmes. Some were currently utilising studio space provided by the company.

Multiple filmmakers, in particular, said they gained respect for the developer over the course of filming projects at the WTC. No elected officials or government representatives commented.

Those who opposed the project were local residents who objected to having the casino nearby. A disgruntled tenant from a Silverstein building said the developer was not the rosy public partner others had proclaimed.

“We have had issues with Silverstein as a landlord in the past so I don’t know how putting a casino there will be any different,” she said. If Silverstein was really concerned with the arts, she said, it would build a gallery on its own, not as a means to secure a casino licence.

Wednesday’s two-hour hearing was an early step in the environmental review process. According to Robert Williams, executive director of the NYSGC, the commission has deemed the project to be a “Type 1 action”, meaning it could pose environmental risks and therefore requires certain review processes.

The purpose of the hearing was to garner public feedback from elected officials, local leaders and residents as stakeholders begin to craft their draft environmental impact statement. There will be additional input periods along the way before the official environmental statement is lodged.

Caesars and its partners are proposing a casino, hotel and other amenities at 1515 Broadway. It is currently an office tower, but it would be completely gutted and retrofitted if approved for a casino licence.

The deadline for casino bidders to submit official applications to the state is 27 June. Neither the commission nor project representatives gave a timeline for the environmental statement process. Once bids are collected, the commission will award up to three licences by year’s end.

Schiffer: Times Square is ‘logical’ choice

Robert Schiffer, executive vice president of development for SL Green, gave a brief presentation on the project to start the hearing. He called Times Square “the logical choice” for a New York City casino, being the heart of the city’s entertainment district.

While most casinos are built to keep patrons inside, he said, this project is pitched as a community lynchpin. He shared a mockup of the city grid with its litany of nearby dining, lodging and transportation options.

Two points made by Schiffer were referenced by speakers throughout the hearing offering their own support: There would be no housing displacement and limited construction disruption. The project does not offer housing as many others do, but in Times Square, the project wouldn’t displace any existing housing either. Having the existing building in place also significantly cuts down on construction timelines and noise pollution.

“This team is committed to a New York-first, neighbourhood-forward, sustainable approach,” Schiffer said.

Trade reps out in full force

Once the meeting was opened for public comment, the vast majority – perhaps 75% – of speakers were union and labour officials. All offered support of the project due to the number of construction and permanent jobs it would provide.

“This is the only project where we’re guaranteed to see a significant number of new, good-paying union jobs be created,” one man said. “Jobs that won’t happen without this licence.”

Multiple speakers suggested it is likely Manhattan will get one of the licences, as three of eight bids are located there. In addition to Caesars Times Square, Silverstein Properties’ Avenir project and Soloviev Group’s Freedom Plaza proposal are also in the borough.

The areas featured in other bids could just as likely be developed for other, non-gaming reasons down the road, speakers said. But the Caesars Times Square project hinges greatly on the casino licence and will not be nearly as attractive for future development without it, they asserted. Nearly all labour officials noted that Caesars and partners have been collaborating with them for multiple years.

Opposition comes from theatre industry

Two speakers opposed to the project were from the theatre industry, which has opposed the project from the start. Whereas proponents say a casino is the perfect fit for an entertainment hub like Times Square, opponents say the opposite, arguing that gambling doesn’t fit into the arts.

One speaker argued that noise pollution from the construction would affect rehearsals and matinees. Traffic congestion and the inability for showgoers to navigate the area and get to performances on time was also mentioned.

Only one participant touched on responsible gambling and the idea that the casino’s success would bring financial hardship on local residents and vulnerable populations.

“Once people start losing their money, then we have to bring in groups to save their lives,” he argued. “Nobody talks about these benefits that aren’t benefits. Sucking the money out, that’s the only way for the casino to make its money. The casino never talks about that and I’d like them to.”

The interlocutory decision comes after a lawsuit was filed against Betnacional and its owner by the Education and Citizenship of Afrodescendants and the Needy (Educafro) and the Father Ezequiel Ramin Centre for the Defence of Human Rights.

The lawsuit called for the suspension of activities from NSX Group and its Betnacional, Mr Jack Bet and Pagbet brands, as well as collective moral damages of BRL500 million ($88.3 million).

The action alleged the group, which was acquired by Flutter last week, had failed to sufficiently protect children and adolescents from betting.

The Public Prosecutor’s Office initially granted the injunction to suspend the sites’ operations, until proof was given of the effective adoption of technological mechanisms to ensure children can’t access the platforms.

However, the Court of Justice of the Federal District and Territories has decided not to grant the preliminary injunction to suspend NSX Group’s activities, ruling the company had only received authorisation to operate in the newly regulated online Brazil market after satisfying the licence requirements, such as the utilisation of facial recognition technology.

“Considering that it was proven in the records that the defendant obtained the authorisation to operate for a period of five years, it is concluded that the security mechanism indicated by the plaintiffs themselves and required by the Ministry of Finance was duly implemented,” the decision read.

“Therefore, I understand that there is no just cause for granting the preliminary injunction filed.”

Lack of concrete evidence against Betnacional

Udo Seckelmann, Head of Gambling & Crypto at Brazilian law firm Bichara e Motta Advogados, explains the judge decided not to suspend NSX Group’s operations after the case failed to meet the required level of proof, especially with Betnacional licensed and regulated by the Secretariat of Prizes and Bets (SPA).

“The judge ruled that there was no concrete evidence that Betnacional had actively targeted minors or breached current regulations regarding child and adolescent protection,” Seckelmann tells iGB.

“The decision emphasised that punitive measures such as suspending operations require clear and demonstrable violations, which were not substantiated in this case.”

Seckelmann believes the ruling against suspension of Betnacional will prove “highly significant” for the Brazilian gambling industry, highlighting the importance of licensing for operators, as well as maintaining compliance.

“It suggests that courts are likely to uphold the legality of operations for companies that are properly licensed and adhere to the current rules, particularly those concerning the protection of minors,” Seckelmann continues.

“At the same time, it sends a strong message that the judiciary is attentive to the need for evidence-based claims when it comes to allegations of non-compliance, reinforcing a balanced approach between regulation and market stability.”

NSX Group not entirely out of the woods

As this is just an interlocutory decision, the case will remain ongoing, with the ruling calling for the plaintiffs to provide further information, including factual evidence of the ineffectiveness of NSX Group’s biometric technology.

If additional information is provided, the record will once again be forwarded to the Public Prosecutor’s Office.

Seckelmann says new, stronger evidence could yet turn the tide in the plaintiffs’ favour.

“Additionally, changes in the regulatory environment – such as stricter enforcement guidelines or legislative updates – could influence future judicial interpretations.”  

“For now, however, the company remains authorised to operate, pending further developments in the judicial process.”

NSX Group acquired by Flutter

Last week, it was announced NSX Group CEO João Studart would lead Flutter Brazil after the international giant closed its acquisition of the Betnacional parent company.

The deal, valued at $356 million, will comprise NSX’s brands, as well as Flutter’s existing Betfair Brazil business.

On LinkedIn, Studart shared his excitement over the future of the new Flutter Brazil business, saying: “Today, we begin a new stage in our journey.

“It is the recognition of a work that began as a Brazilian startup and that, with strategic vision, talent and consistency, has consolidated itself as a reference in the betting and digital entertainment sector, with leading brands such as Betnacional.”

Wynn is now the third potential applicant to withdraw its bid before the 27 June application deadline, joining Las Vegas Sands and Hudson’s Bay Co. Hudson’s Bay withdrew on 10 April and LVS followed two weeks after that.

“After careful consideration, we have decided not to lodge an application for a gaming licence in New York City,” Wynn said in a statement. “The recent rezoning process has made it clear to us that there are uses for our capital more accretive to our shareholders, such as investment in our existing and upcoming developments and stock buy backs, than investing in an area in which we, or any casino operator, will face years of persistent opposition despite our willingness to employ 5,000 New Yorkers.” 

Wynn and partners Related Companies and Oxford Properties had proposed a $12 billion mixed-use development in Manhattan’s Hudson Yards neighbourhood. The proposal, which is an adaptation of a previous Related development agreement in Hudson Yards, featured a range of amenities, including a casino, hotel, school and housing units. That latter item was a key focal point for the project’s opponents, as Related had previously pledged a higher number of units.

This pushback led to a doubling of the housing commitment in April, although that last-minute change now seems moot. It is unclear whether Related will still pursue the project without Wynn and the casino component.

“We sincerely thank those who have supported our efforts, including our partners at Related Companies and continue to believe that their proposed Hudson Yards West development is an outstanding opportunity for New York City,” Wynn concluded.

Writing was on the wall

The announcement, although significant, is not entirely unexpected. Wynn posted a 9% YoY revenue decline in the first quarter, including adjusted EBITDAR declines for all six of its properties worldwide. The company for years has been all-in on its resort project in the United Arab Emirates, slated to open in 2027.

These financial factors were also mingled with a fear of digital expansion, which was the chief reason why LVS, one of Wynn’s biggest competitors, dropped out of the running. New York did not come close to legalising iGaming this year, but its online sports betting market is the biggest in the US. Several adjacent states with legal iGaming, including Pennsylvania, Connecticut and New Jersey, have seen record revenue from it so far in 2025.

The general sentiment, as LVS expressed, is that expansion allowing online casinos is inevitable, which could cannibalise land-based revenue. LVS’ exit in some ways set the stage for Wynn, as both companies strictly operate luxury, capital-intensive resorts and therefore deploy similar strategems. Both are among the highest spenders in the industry and their exits could be an ominous sign to the remaining bidders, most of whom don’t have the same spending power.

“We continue to be in the running in New York, but we absolutely will not get over our skis to win a licence there,” Wynn CEO Craig Billings had told analysts earlier this month.

Failure to launch

More than a month remains before New York’s application deadline, but the process has been somewhat lacklustre from the start. Aside from the recent withdrawals, most of the remaining bids face numerous logistical hurdles and local opposition has long plagued most of the proposals.

With Hudson Yards gone, two other Manhattan bids – Caesars’ Times Square proposal and Silverstein Properties’ Avenir project – have environmental review hearings scheduled for this week. But as W42ST reported, “neither meeting has been broadly advertised to the general public. Instead, announcements were buried in state documents hosted on the New York State Gaming Commission’s website – and primarily sent to other government agencies only.”

This example points to an overall level of disorganisation and unpreparedness on the state’s part that bidders have complained about for months. The process has dragged on so long that state lawmakers last June passed a bill requiring proposals to be submitted that August, only for it to be vetoed by Governor Kathy Hochul.

A number of projects require environmental processes, which are now coming close to next month’s deadline at no fault of the bidders. All of the bids were announced back in 2023 and the significant delays are a big factor for those withdrawing. Currently, licences are expected to be handed down by the end of the year.

Remaining bids imperfect

Looking elsewhere, Bally’s is still alive with its Ferry Point bid in the Bronx, although there are serious doubts whether the extremely leveraged company has the funds needed for such a project. At a recent debate involving Bronx political candidates, the project was not outwardly endorsed by any candidate, per Bronx Times.

There are other projects on the fringes that have gone somewhat under the radar. This includes The Coney, the Coney Island bid from Thor Equities and the Chickasaw Nation, which received initial planning approval this month. Freedom Plaza from Soloviev Group and Mohegan is another, although Mohegan is clawing itself out of a massive debt hole that resulted in the loss of its Korean casino.

Steve Cohen’s $8 billion Metropolitan Park now may be the frontrunner, as it continues to secure requisite rezoning approvals. Cohen and partner Hard Rock have overcome opposition from local state Senator Jessica Ramos by winning support from other nearby officials, who have championed the necessary rezoning legislation.

RW and MGM in hot water

One of the most ironic parts of the drawn-out selection process has been the underlying belief that two of the licences are already earmarked. MGM Resorts and Genting Berhad have been expected from the start to secure licences to expand their existing racinos in Yonkers and Queens, respectively.

But both Genting and MGM (in addition to Wynn) have since been subject to multimillion-dollar anti-money laundering fines in Nevada. Illegal bookmakers were allowed to frequent casinos operated by both and the investigations featured many of the same offenders. Those fines do not have a direct impact on their New York bids but will surely come up in the course of review.

At a hearing last September, New York State Gaming Commission chair Brian O’Dwyer said his agency “will review all relevant data as to whether a potential licensee possesses the qualifications to hold a casino licence”, which includes “the allegations lodged against Wynn and Resorts World”, per Casino.org. The MGM fine had not yet been announced.

Resorts World also made big headlines last April by pledging over $1 billion in yearly tax payments. Other bidders have ruffled at this behind the scenes, saying it paints an unrealistic picture and makes lawmakers tax-hungry.

The state already boasts the highest online sports betting tax rate at 51%. Its tax rate for existing casinos varies by region, but it is at least 30% of slot GGR. Nevada and New Jersey, by comparison, are both under 10%.

New York just another Japan?

In some ways, the New York casino bidding process has mirrored that of Japan. There was much excitement when that country first starting fielding bids in 2018, as many thought a competitive Japanese market could rival Macau or Singapore. But a similarly drawn-out process mixed with Covid shutdowns ultimately whittled the field to just one project, MGM Osaka. That project broke ground in April and won’t open until 2030, by which time Thailand could also be up and running if it approves casino developments.

Japan is now expected to reopen a second bidding window for up to two additional licences. There is much doubt, however, as to who would be willing to reengage after walking away. Wynn, for its part, gave up on the market in 2020 and would only consider coming back “if the setup was right”, CEO Billings told analysts this month. New York could face a similar missed opportunity.

“This is Japan 2.0,” Las Vegas-based consultant Brendan Bussmann commented after Wynn’s announcement on Monday. “It’s been that way since RWNY promised a billion annually in taxes in April 2024, but it will continue to get worse.”

With about a month to go before the deadline, Bussmann said it’s possible there will be further erosion.

“I’m going to set the line at 8 and take the under for proposals that get submitted,” he said.

IGT today announced it will lead the successful LottoItalia consortium, which will also include Allwyn, Arianna 2001 and Novomatic Italia. The tender will run until November 2034.

The consortium’s bid is made up of €2.23 billion up front and it is expected that will be paid in three instalments between the date of the award and April 2026. It expects the first two instalments of €500 million and €300 million to be made in 2025.

Barry Jonas of Truist Securities said in a note this morning that the new upfront fee is substantially larger than the 2016 process (€770m at the time) and estimates from Truist, which has been between €1.3 billion and €1.5 billion.

IGT CEO Vince Sadusky said in its earnings call last week the company had set aside a $500 million investment in the Italian lottery if it were awarded the licence. This is part of a larger €1 billion term loan.

Sadusky believes the hefty operational fee reflects the “significant value” of the new licence. The company is confident the investment will benefit its revenues, and longer-term profitability, despite it posting a 10% drop in group revenue in Q1.

“In addition, we plan to significantly grow our iLottery sales and leverage that momentum to expand into the Italian B2C iCasino, sports betting and other digital gaming business,” Sadusky said.

Allwyn will contribute a pro rata 32.5% share of the licence fee and capital expenditure and its CEO Robert Chvatal is “thrilled” to continue the partnership with IGT in Italy for another nine years.

“We’re pleased that Allwyn’s positive contribution to the consortium, including our proven track record of modernising and growing lotteries across Europe, will continue to support IGT’s exemplary stewardship of an important Italian national asset,” Chvatal declared. “We look forward to working together to grow the Italian Lotto, while developing innovative solutions to support responsible play.”

IGT secures ‘one of the most important lottery contracts‘

According to the Financial Times, the concession rate from total wagers will amount to 6%, with a further 8% gross fee to be collected through digital channels for distribution.

In a statement released today, IGT’s executive chair of the board Marco Sala said the Italian lottery concession was one of the world’s most important lottery contracts.

“IGT and its predecessor companies have successfully managed the licence for 30-plus years through constant innovation and the introduction of cutting-edge technology.

“The award is very gratifying and we are honoured and excited to continue working with the ADM [Customs and Monopolies Agency] for nine more years,” he said.

In the Truist note Jonas said IGT had expected to win the rebid based on the regulator’s scoring system. “Recall the award is based on a scoring system weighting 60% financial, 40% technical. Based on the scoring system, IGT has emerged successful, although an official  announcement is forthcoming.”

Jonas said he doesn’t see any major negative impact for Flutter in the loss of Italian lotto to IGT. “Our view on Flutter owning Lotto at all costs was mixed. We have always seen traditional lotto as a lower multiple business (~5.5x historical multiple) somewhat straying from Flutter’s core digital focus.”

Paraguay took steps to eliminate the gambling monopoly towards the end of 2024, when its Chamber of Deputies approved changes to the previous laws, which stated the “exploitation of national games of chance will be carried out exclusively by public tender”.

The new laws focus on updating, modernising and strengthening regulation of the gambling sector in Paraguay, by creating a more transparent and efficient regulatory framework.

The changes have formally established the National Gaming Commission (Conajzar), a decentralised body under the National Directorate of Tax Revenue (DNIT). This unit will enhance the regulator’s powers, giving them jurisdiction over the competitive market.

The country hopes the move will increase state contributions from the sector.

Player protection a top priority says Paraguay regulator

The new regulations allow private operators to enter the country’s gambling market. Previously they could only gain access through a tender process.

When asked why Paraguay could be an attractive market for private companies, Conajzar President Carlos Liseras tells iGB: “In addition to the fact that Paraguay has a law on the demonopolisation of gambling, the tax burden is the lowest in the region and Paraguay has become an important country for visiting.”

Liseras says the protection of minors against the harmful effects from illegal gambling was the primary motivation for the law change.

“In terms of protecting national and foreign investment of those who are dedicated to the exploitation of games of chance authorised by the regulatory entity, this gives legal certainty to the aforementioned investors.”

Paraguay gambling regulator’s role clearly defined

The changes in law have clarified Conajzar’s responsibilities, which include authorising the operation of games of chance and issuing regulations at the national, departmental and municipal levels.

Conajzar will be tasked with approving new types of games of chance and sanctioning companies that operate outside the regulations.

Conajzar will also be able to request assistance from the DNIT to coordinate the process of approving, controlling and overseeing the licence bids and concessions received by the state.

A DNIT representative will sit within the new look regulator as chairperson, while representatives from the governorships, municipalities, the Ministry of the Interior and the Directorate of Charity and Social Assistance will also participate.

DNIT, meanwhile, will conduct comprehensive reviews of Conajzar’s gambling regulations, as well as the regulator’s prepared terms and conditions for bidding or concessions. Without DNIT approval, the processes conducted will be considered invalid and won’t produce legal outcomes.

Liseras reveals state contributions from gambling in Paraguay reached a record PYG175.8 billion ($21.9 million) in 2024, a figure he predicts will rocket now Conajzar is under DNIT.

“The estimate made is that this will double and could even far exceed these estimates, taking into account that as of the entry into force of the aforementioned law, the DNIT and Conajzar have the necessary logistics and infrastructure to fight head-on against the clandestine exploitation of games of chance and thus avoid the tax evasion that does so much damage to the nation,” Liseras explains.

Bidders must meet new T&Cs and have experience in gambling

According to Liseras, licences will be granted to the bids that meet the requirements established within the new bidding terms and conditions.

Personnel involved must also have sufficient experience in the field, the necessary financial backing and no outstanding debts with the justice system, both in Paraguay and internationally.

New regulations will require operator electronic gaming machines and computer systems to comply with Conajzar guidelines, certified by an inspection entity accredited by the National Accreditation Body.

Gambling establishments must also be situated at least 200 metres away from educational facilities such as schools, colleges and universities.

Promising times in Paraguay

Liseras believes the new regulations will ultimately provide a huge boost to both Paraguay’s gambling sector and its state, driving contributions and protecting bettors from illegal operators.

The regulator will maintain permanent contact with operators, both existing companies and new entrants.

“In addition, there are agreements signed with other state institutions to optimise the operation and improve the controls of gambling operators,” Liseras concludes.

“Agreements have been signed with institutions in other countries. They are in full force and it is intended to expand these agreements.”

In March, Brazil’s Solidarity party filed a Claim of Non-Compliance with a Fundamental Precept, calling for municipal lotteries to be suspended over claims they were disrupting the newly regulated federal online betting market.

However, the Supreme Federal Court (STF) Minister Nunes Marques denied that suspension, with municipal lotteries allowed to continue operations until the STF makes a final ruling.

In response, the Leme Consultores study has revealed municipal lotteries could contribute significantly to the Brazilian economy, to the tune of nearly BRL12 billion in federal revenue for the government.

Smaller operators unable to meet federal requirements in Brazil

The study, based on existing data for companies which have obtained licences in the municipality of Bodó in the state of Rio Grande do Norte, found around BRL8 billion could come from smaller companies that can’t meet the high barriers of entry for federal authorisation.

Companies seeking a federal licence must pay a hefty BRL30 million authorisation fee, while also meeting significant technical and certification requirements.

“These barriers to entry – especially for small and medium-sized agents – not only affect competition, but also directly reduce the potential for tax collection,” the study said.

“In particular, the high initial and maintenance costs required by federal legislation may significantly restrict the number of operators able to collect taxes, reducing the effectiveness of the tax system on the sector as a whole.”

Are municipal lotteries legitimate?

The Solidarity party claims municipal lotteries are creating a “truly chaotic scenario” in Brazil, with jurisdictions navigating around federal betting laws to allow companies without nationwide authorisation to operate.

The study disputes that, however, saying municipal lotteries “may represent a legitimate way” of decentralising lottery, encouraging competition.

“Decentralised lottery models, such as those in the United States, Canada and Australia, show that the coexistence of local and national lotteries can bring beneficial results in terms of the distribution of powers and tax collection,” the study explained.

“In Brazil, the excessive centralisation of lottery activity in the Union resulted in a limited supply of products and the concentration of revenues in a few hands, making it difficult for many regions to access the benefits generated by the activity.”

However, Daniel Romanowski, president of the state lottery in Paraná, believes municipal lotteries could pose a problem to smaller companies that can’t gain federal authorisation.

“We have 5,000 cities in Brazil for sure,” Romanowski told iGB. “There are some cities, like my city Curitiba, São Paulo, they have the big structure, but also in the same level we have cities with 3,000 people.

“Checking out the websites, the systems, the games, everything that goes on, to have good suppliers for 3,000 people, I don’t know if they will have the qualities that we want for the market.”

The LatAm region accounted for 25% of Betsson’s total Q1 revenue, boosted by higher casino activity and stronger sportsbook margins.

Betsson received a full licence for the newly regulated Brazilian market in February a month after the legal betting market launched.

However, it launched its betting offering in April and, on the Q1 post-results analyst call, Lindwall said the company had also conducted a technical launch in Paraguay in February, after obtaining a local online casino licence at the end of 2024.

Betsson now has operations with local gaming licences in 25 countries across the globe.

Launches such as Brazil, Lindwall believes, will aid Betsson in continuing its strong work in the LatAm region, where it has already achieved success in Argentina, Colombia and Peru.

However he reiterated previous comments on the operator taking it slow in Brazil, as it continues to focus on Spanish-speaking LatAm regions in the short-term.

“Brazil, it’s a huge market, and we want to start off in a soft way and make sure that the product is calibrated for that market,” Lindwall told analysts. “And then we’re going to start marketing and see what kind of traction we get.

“And given that we have really good traction in other markets in the region, we believe that we will be successful over time. Obviously, they give us a good possibility for the future to keep on growing in the LatAm region.”

Strong performance for Betsson in LatAm

Martin Öhman, Betsson CFO, said the launches in Brazil and Paraguay had come too late to have any real effect on the Q1 results.

However, Öhman went into further detail on how other LatAm markets are performing, with revenue in the region up by €31 million.

For instance, he said Argentina continued to show strong underlying activity in deposits, increased turnover and all-time high revenue in Q1.

Additionally, Betsson posted revenue growth in Peru compared to the same period last year, driven by sportsbook and casino growth.

Öhman also revealed the new 19% value-added tax on online gambling in Colombia, introduced in February, hadn’t yet had much of an impact on revenue in the market.

“Colombia is a fairly small market,” Öhman stated. “But yes, of course, all tax increases and everything, all regulatory changes impact business.

“However, it does not have a very significant impact on our total numbers.”

The companies were suspended after the SPA deemed they were in breach of Article 3 of Normative Ordinance No 2,104, which relates to the presentation of technical certifications.

The regulator had accused these operators of not filing the necessary certifications that enabled them to operate in the legal betting market.

At the time Pixbet said it was surprised by the decision, and very shortly after the licence was revoked, a subsequent federal court decision reinstated it.

Federal court judge Anderson Santos da Silva overturned the effects of the ordinance on the evening of 11 April, following a “writ of mandamus” filed by the company.

The company claimed to have submitted three of the four necessary certification documents in February, while the remaining document, the integration certificate, was submitted the day prior.

Kujawski, partner at Brazilian firm Mattos Filho, says he believes the SPA’s decision was too harsh. He fears it could show a “certain lack of dialogue and understanding” from the SPA, with overworked certification entities. Today there are only six recognised gambling certifiers in Brazil.

“In our view, the suspension of the authorisation was a disproportionate response to the infraction committed,” Kujawski tells iGB. “A suspension of authorisation should only occur in extremely serious cases of repeated violations of Brazilian law.

“Before suspension, other sanctions should be applied, such as warnings or even fines. Suspension of authorisation should only be a last resort.”

SPA flexes muscles for the first time

This suspension of four licences marked the first time the SPA has placed serious sanctions on operators, to the extent of the punitive measures available to the regulator laid out in Normative Ordinance No 1,233, published in July.

As per the ordinance on regulatory enforcement, the SPA has the power to terminate licences for the most serious cases of failing to adhere to the regulations.

The SPA can also issue fines of between 0.1% and 20% of proceeds over the year prior to the sanctioning proceedings beginning, although the penalty can never exceed BRL2 billion ($353,678).

Kujawski says the SPA needs to “assert its authority” on the market to avoid other consumer protection agencies feeling they need to fill a vacuum of power.

However, he also warns the regulator cannot go too far the other way, although he has faith the SPA will ultimately calibrate its sanctions to be more reasonable than the case of Pixbet.

“This cannot translate into an agency that applies sanctions in a disproportionate manner or adopts an inquisitorial stance against the sector it regulates,” Kujawski continues.

“A balance must be struck between an active agency and a belligerent one. I am convinced that the SPA will find this right path.”

Suspension causes reputational damage to Pixbet

Pixbet said its initial licence suspension was both “illegal and disproportionate”, claiming it caused the operator “reputational and economic damages”, in relation to its BRL470 million master-sponsorship of Brazilian top-flight football club Flamengo.

Kujawski agrees the incident caused damage to Pixbet’s reputation, both within the market and with its business partners.

“I understand that the damage here was controlled,” Kujawski adds. “But it could have been worse.

“That is why I reiterate my opinion that the lack of a mere technical certificate should not lead to the suspension of an operating licence.”

Notably, 7MBR Ltda also had its licence reinstated shortly after it was revoked, although Caixa Lotteries and Tqj-Par Participacoes Societarias remain suspended.

However, both of these operators have said they are planning to launch their licensed betting offerings later in 2025, and therefore had not yet secured all their documentation.

When asked why companies would go to the trouble of gaining authorisation when they aren’t yet planning to go live with their product, Kujawski says the reason is the slow authorisation process.

“One of the most complicated [phases of authorisation] has been the technical certificates for platforms and games, due to the workload of the certifying entities,” Kujawski says.

“There are several operators who have obtained the licence and are still organising their systems and games to begin operating.”

“Sands has decided not to bid for a casino licence in New York,” the company confirmed in a statement.

No follow-ups or additional comments were given during LVS’ first-quarter earnings call on Wednesday. The best use of its capital, the company said, is instead to repurchase LVS and Sands China shares. According to its first-quarter report, LVS repurchased $450 million (£339 million/€396.7 million) worth of shares during the quarter.

Its New York proposal had included a $4 billion integrated resort along with a range of amenities. LVS last July secured a 42-year lease for the site, after a previous 99-year lease had been challenged in court by Hofstra University. The school had been the biggest opponent of the development.

Next steps

The company said it is attempting to offload its bid to a third party that could “address both land-based and digital markets in New York”. This is noteworthy, given that most all of the leading US operators are already tied to their own bids or partnered with others.

If an agreement can’t be reached concerning the property’s future, LVS said, it “will work with Nassau County and other parties to attempt to ensure it is developed consistent with Nassau County’s long-term vision for the site”. The county subsequently said in a statement it would “crystallise within the next 30 days whether or not to entertain a casino component or develop the site without”.

LVS is now the second group to formally pull its New York casino bid. Hudson’s Bay Co, which had proposed a casino at the flagship Sak’s Fifth Avenue retail store in Manhattan, announced its intention to withdraw on 10 April.

Igaming concerns in New York, elsewhere

The concern about igaming in New York specifically is very speculative. There has been little to no progress in those efforts in the state, and the general consensus is that lawmakers prefer to wait until the downstate casino process is further along before tackling that issue. Bids seeking to develop the casinos are due by 27 June, with licences to be awarded by the end of the year.

In the US more broadly, igaming legalisation has ground to a halt, with no new markets coming online since Rhode Island passed legislation in 2023. However, existing nearby markets have exploded, with New Jersey, Pennsylvania and Michigan all posting all-time monthly igaming revenue records in March.

“The results coming out of neighbouring states of New Jersey or Pennsylvania or as far away as Michigan underscore that concern” about igaming’s impact, CEO Rob Goldstein said in January. “So you’ve asked and answered the question, great market, we like to be there. The caveat is how do you deal with the ongoing threat, which appears to me to be inevitable in a lot of states, especially as it has land-based properties coupled with sports betting. I don’t know why you wouldn’t have igaming at some time in the future. So that’s our concern as we look at that market.”

US future uncertain

Now that it has nixed New York, the long-term outlook for LVS in the US is murky at best. The company famously exited Las Vegas, its namesake, by selling off the Venetian-Palazzo for $6.25 billion after founder Sheldon Adelson’s death in 2021. Since then, it has operated strictly in Macau and Singapore.

That said, as recently as six months ago, LVS had been working hard on two significant US developments. In addition to its New York plan, it was heavily invested in efforts to legalise casinos in Texas. Led by Miriam Adelson, LVS’ controlling shareholder, it spent more than $13 million on lobbying in Texas in the lead-up to this legislative session. That was up substantially from the $3.3 million spent in the lead-up to the 2023 session.

Hopes for both casino and sports betting legalisation quickly faded this session, however, despite renewed optimism. In fact, Texas lawmakers are perhaps even more anti-gambling than before, given a recent lottery courier scandal that has caused some to call for its abolishment altogether.

LVS had proposed a sprawling mixed-use development centred around a casino in Irving, near Dallas. The Adelson family also controls the NBA’s Dallas Mavericks and there had been speculation that the team would have been relocated to an arena on that proposed site, which is where the Dallas Cowboys’ former Texas Stadium once stood.

However, public opposition turned ugly, causing the company to pull the casino element from the proposal last month.

Dumont: US-China tensions unsustainable

In addition to uncertainty in the US, LVS is also uniquely vulnerable in China. Despite its strong performance in the market, it is the only US-based operator to solely operate in Asia and is thus tied to both countries.

US president Donald Trump has caused a number of global economic swings in recent weeks related to tariffs. On 2 April Trump announced a litany of so-called reciprocal tariffs levied against dozens of trade partners. Markets tanked in response, but rebounded when a temporary pause was announced. China, however, was not spared and instead its rates were hiked to 145%. Beijing responded by implementing 125% duties on American goods.

LVS president and COO Patrick Dumont was asked about these tensions during Wednesday’s call. He asserted that his company has “an incredible relationship with Beijing” but is “very disheartened” with how things are playing out.

While he “isn’t losing sleep” over the tensions yet, he was clear in stating he doesn’t believe “this dislocation between the two countries is sustainable”.

Currently, the Trump administration’s position is that there will be “a de-escalation” of the trade war in the “very near future”, per CNBC. Major US indices were up between 1%-2.5% at close Wednesday, but they are still largely off from 52-week and all-time highs.

That consultation closed on 27 March with around 200 contributions received and the SPA has now published its updated regulatory agenda in the form of Normative Ordinance No 817.

Article 2 of the ordinance revealed the focal points of the new agenda, which include the promotion of responsible gambling and addiction prevention, as well as the fostering of a balanced, transparent regulatory environment.

At the end of each quarter, as of 30 June, the SPA will release drafts of new regulations and encourage cross-industry participation in the process.

What has the SPA included in its regulatory agenda?

Item one on the SPA’s 2025-26 regulatory agenda is the development and implementation of a national platform for players to self-exclude from gambling activities, to boost the sector’s promotion of responsible gambling and the prevention of addiction. The SPA described this as the “most important” item on the agenda.

The SPA said it expected to publish minutes relating to that initiative in Q2, as well as improvements to the rights model for allocating resources from betting companies to sporting entities, such as athletes and clubs, in relation to sponsorships and advertising deals.

Additionally, the SPA hopes to clarify the parameters for creating a distinctive seal for licensed betting operators to use, so bettors can identify licensed products from unlicensed.

In line with its plans to promote responsible gambling, the regulator will improve its guidelines for supporting vulnerable bettors and their families with the aim of mitigating the consequences of problem gambling.

The third quarter of 2025 will see the SPA modernise its advertising regulations, which have come under fire of late, with multiple bills to further restrict advertising currently going through assessment in the senate.

Within its agenda, the SPA also said it plans to review regulations on Exclusive Instant Lottery. It will additionally look at consolidating the betting ecosystem in Brazil by regulating the economic exchanges between operators and providers, which it believes could combat the pressing issue of the black market.

To round off the first year of the regulated market, in Q4 2025 the SPA will establish a national betting system to bring state laws more in line with federal regulations. To support this, the SPA last month invited state politicians to a meeting at the ministry of finance’s headquarters to discuss ways of better aligning state regulations.

Looking ahead to 2026

The SPA is looking to further enhance its regulatory framework once the first year anniversary of legal gambling in Brazil passes. It said it expects to consolidate and improve its inspection procedures in Q1 2026 to ensure operators are supervised sufficiently.

The licensing process has faced some issues so far in Brazil and the SPA is looking to resolve those problems by reviewing and improving the authorisation procedure, utilising the lessons learned from the first cycle of licence authorisations.

A partial reason for delays in the initial licensing process was delayed certifications, especially as only six technical certification entities are currently recognised by the SPA.

The SPA will review procedures for certifying operators and suppliers in Q2 2026 with the aim of rectifying its previous delays.

Finally, the SPA will review its regime for sanctioning fixed-odds betting operators that violate its regulations in Q4 next year.

Just last week, the regulator suspended the licences of four operators that failed to deliver the necessary documentation.

Pixbet has since been reinstated and received a full licence from the regulator, although the other three companies will remain suspended until the certifications are completed.

According to the ordinance, the four operators failed to comply with Article 3 of Normative Ordinance No 2,104, which relates to the presentation of technical certificates and betting systems to the regulator.

The suspension will last up to 90 days from the ordinance’s publication, with the operators in question banned from offering fixed-odds betting until the certifications are completed and their licences are reinstated.

Normative Ordinance No 787 suspended the companies and brands below:

PixBet licence reinstated by Brazil federal court

In a note shared with Poder360, Pixbet said it received the news of the licence suspension “with surprise”, believing it had presented the necessary certificates and pointing to a potential error in analysis or technical processing as the reason for the revocation.

The news also likely came as a shock to top-flight football club Flamengo, which last week debuted its shirt sponsor FlaBet, a new brand launched in conjunction with the team’s master sponsor PixBet. Only licensed betting companies are able to sponsor sports teams in Brazil.

However, Pixbet’s licence was reinstated later on Friday night after federal court judge Anderson Santos da Silva overturned the effects of the ordinance, following a “writ of mandamus” filed by the company.

The company claimed to have submitted three of the four necessary certification documents in February, with the remaining document, the integration certificate, sent on Thursday (10 April).

Pixbet claimed the ordinance the following day was “illegal and disproportionate” and caused “reputational and economic damages” relating to its BRL470 million master sponsorship of Flamengo.

Da Silva decided Pixbet could “resume their economic activity”, suspending the effects of Normative Ordinance No 787 “until a further court decision”.

The other three operators named in Normative Ordinance No 787 will remain suspended from the legal market until they deliver the remaining certification documents.

It first signed an online sportsbook partnership with Kambi in 2022 – a deal it extended last October as it prepared to transition from a DFS operator to a full-fledged sports betting site.

It is a strategy that has been hugely successful in the US for the two market leaders, FanDuel and DraftKings. Both evolved from DFS-focused operations to sports betting and igaming to the tune of a combined $10.6 billion (£8.2 billion/€9.6 billion) in FY2024 revenue.

The pair have impressively utilised the huge customer base they gained from their DFS days and  transitioned them into sports betting with the companies.

But Augusto says while Rei do Pitaco has followed much of the DraftKings and FanDuel playbook, it is not a case of simply “copy and pasting” the DFS-to-sports betting model in Brazil.

“We looked a lot at FanDuel and DraftKings,” Augusto tells iGB. “Other companies tried to build what FanDuel and DraftKings did in Brazil, but they failed.

“So we understood the behaviour of the fantasy fans and we decided to build a product from scratch and based on Brazilians.”

Augusto warns the advantage isn’t quite as large for Rei do Pitaco as it was FanDuel and DraftKings, with the two US companies having transitioned to a newly legal market after PASPA restrictions were struck down in 2018. Brazil had a grey market between 2018 and its 1 January launch.

“The advantage for DraftKings and FanDuel in the US was huge,” Augusto continues. “For us, not that much. But still, we acquired a lot of customers, a huge user base that gives us a really great advantage in the regulated market.”

Product and localisation the key

The differentiator of localisation is one that Rei do Pitaco  is leaning into, fitting into its data-driven approach led from the front by Augusto.

Augusto’s “product, product, product” strategy is one he hopes will end in Rei do Pitaco being seen as a second screen for bettors watching sports in Brazil, helping the company to achieve its targets.

“If we really are the best product in the market, I think market share is just a matter of time,” Augusto explains. “And that’s where we focus.”

Rei do Pitaco’s DFS origins means it already has a steer on Brazilian sports bettors’ preferences and, although igaming is still an option, it is sports that will ultimately drive its growth going forward.

“For us, the main thing is sports betting,” Augusto says. “It’s the product that we put the most effort into. It’s the product we allocate the most resources to.

“The sports betting side, it’s a product that’s a lot more complex to build. And that’s what we like, right? We like complex things to build.”

Outsmart, not outspend the mantra

Rei do Pitaco is entering the sports betting market as a local hero company alongside international giants, including the likes of Betsson and MGM.

Rei do Pitaco is a way away yet from competing financially with those whales, although its understanding of that fact is where one of the company’s mantras is derived.

“One thing we always say internally is we’re going to outsmart competitors, not outspend them,” Augusto says. “You have the likes of MGM joining Brazil and spending millions of dollars. We’re humble enough to say we’re never going to outspend those guys.”

Rei do Pitaco’s chief legal officer, Rafael Marchetti Marcondes, concurs with Augusto and believes that thanks to a data-focused approach to marketing, the company can still achieve impressive growth despite its current limitation on resources..

“This is quite a mantra for us,” Marchetti Marcondes adds. “Because we don’t have the same budget like big international companies, so we have to think outside the box to identify opportunities that nobody has identified.

“Every penny that we spend is monitored. We analyse the payback. Everything is on metrics, it’s on data and this is a way that we work and we do believe that maybe, even with less financial resources, we can expand our business.”

No fear over back taxes

The measured approach extends to Rei do Pitaco’s decision not to operate in the grey market prior to regulation.

That means it experienced a smooth licensing process, as well as avoided the concerns of other companies that could yet have to pay retrospective taxes for their activities during the grey market.

“We were the third company to apply, but I believe we were the first company to complete all the documents,” Augusto says. “So for us, we prepared ourselves for this moment.”

On avoiding back taxes, Augusto replies: “That’s something we are not worried about at all, because we’ve been paying taxes in Brazil since we founded the company in 2019.

“For other companies, yes, it’s a major thing. But for us, we’re fine.”

Building for the future

Marchetti Marcondes reveals the early signs for Rei do Pitaco are positive, with the initial figures matching the company’s expectations.

“The numbers are escalating quite well, especially when we compare with the fantasy market,” Marchetti Marcondes declares. “We are now serving in a much bigger market. So I think that for us, the expectations and the numbers are quite good.”

While Rei do Pitaco has taken inspiration from the success of FanDuel and DraftKings, the company believes its tailored approach to the Brazilian market will further enhance its capabilities, despite the strength of its competitors.

Its strong user base from its DFS days, Augusto’s commitment to product and the company’s mantra of outsmarting – not outspending – look set to position Rei do Pitaco as a formidable entrant to the Brazil betting market.

The Solidarity party alleged municipal lotteries were fostering a “truly chaotic scenario”, in which jurisdictions have circumvented federal Brazil betting regulations to allow companies not licensed by the federal government to operate within municipalities.

This, the Solidary party claims, is causing financial instability for the newly regulated federal betting market, while also risking the safety of players.

Marques has opted not to suspend municipal lottery operations, although he has called for the Solidarity party to provide further information backing up its claims within 10 days. He has also called for the attorney general’s office to weigh in on the matter, ahead of a final ruling.

“Given the relevance of the matter and its impact on the social order and legal certainty, it is necessary to provide the opinion of the authorities involved.”

He said this would influence his final judgment and ensure it is without prejudice.

STF to make final ruling on Brazil municipal lotteries

Municipal lottery operations will be allowed to continue until the STF makes a final ruling on their constitutionality.

Brazil has 26 states and over 5,500 municipalities, some of which are looking to implement their own laws to establish lotteries and generate regional revenue.

One particularly notable case is Bodó, a municipality which has a population of barely more than 2,000 and has issued numerous licences to operators.

Each municipal licence in Bodó costs just BRL5,000 (£670.29/€796.81/$867.70) to obtain, while a federal online betting licence fee is BRL30 million.

Bodó has consistently ignored threats from the federal government to halt licensing efforts and allow licensees to operate across Brazil.

A similar STF case relating to the Rio de Janeiro State Lottery (Loterj) has been ongoing for a few months. Various entities, including the federal government and attorney general, have insisted that Lotterj prohibits its licensees from operating outside of the state.

In its latest ruling on the case, in February, the STF voted to uphold a preliminary injunction, which banned Loterj from allowing its licensees to operate nationwide. It required Loterj operators to adopt geolocation blocking software to ensure players can’t access sites outside of the state.

On 22 March, ANALOME issued a note arguing that the requirements to use the bet.br domain has influenced public opinion. Companies operating with state or municipal licences often use alternative domains and this requirement was giving those operators a bad reputation among consumers.

As such, ANALOME claims the ordinance requiring operators to use the bet.br domain “imposes an erroneous limitation that violates the principles of legality, free initiative and autonomy of the federative entities”.

This regulation puts the financial contributions of state and municipal lotteries to sectors such as health and education at risk, it said.

The entity’s claims follow the release of the government’s latest ordinance, which established procedures for financial institutions reporting illegal gambling transactions.

On 21 March, the Secretariat of Prizes and Bets (SPA) published Normative Ordinance No 566, which clarified the conditions, deadlines and flows of information for financial institutions to report after accepting bets through illegal operators.

The association believes the ordinance is an attempt from the SPA to maintain a monopoly over lottery operations, contradicting state and municipal autonomy.

“In view of this scenario, ANALOME urges the Prizes and Betting Secretariat to revoke Ordinance SPA/MF No. 566/25, correcting this serious affront to the legal system and avoiding irreparable damage to the gaming and entertainment industry,” said the note, shared with BNL Data.

Ongoing dispute between government and state/municipal lotteries

Signed by ANALOME president Camilo Roma de Brito, the official note also calls for the creation of a working group between the association and SPA representatives.

The working group would analyse the impacts of Normative Ordinance No 566 and attempt to find a solution that would both guarantee legal security and protect the autonomy of state and municipal governments.

“We believe that technical dialogue is essential to develop a fair regulatory framework,” ANALOME added. “This proposal does not exclude guidance on appropriate legal measures, but demonstrates our commitment to consensual solutions.”

The note is the latest move in an ongoing battle between the federal government and state and municipal lotteries.

In February, the Rio de Janeiro State Lottery’s (Loterj) attempts to ensure state-licensed companies could operate nationally were hampered when the Supreme Federal Court (STF) voted to uphold a preliminary injunction.

This banned Loterj licensees from offering bets outside of Rio de Janeiro state borders and mandated geolocation tracking services to guarantee their compliance.

Earlier this month Brazil’s social democratic party, Solidariedade, filed a Claim of Non-Compliance with a Fundamental Precept (ADPF), calling for municipal lotteries to be banned until a final STF ruling was issued on whether they breach Brazil’s constitution.

The Solidarity party claims municipal lotteries are creating a “truly chaotic scenario”, with jurisdictions such as Bodó flouting federal laws by allowing companies that haven’t achieved federal authorisation to operate within municipalities, largely without the same level of player protection measures and tax contributions as the federal regulator.

Within the 26 states in Brazil, there are over 5,500 municipalities, with some of those seeking to create their own laws establishing lotteries and generating revenue.

For instance Bodó, a municipality with a population barely exceeding 2,000, has become a point of national interest after it issued a number of licences to operators, with each costing just BRL5,000 (£670.29/€796.81/$867.70), in stark comparison to the BRL30 million that is being charged by the state for a national licence.

The Solidarity party’s lawsuit warns municipal lotteries throw the financial stability of the newly regulated Brazil betting market into doubt, as well as risking the safety of players due to the differing levels of player protection measures from each municipality.

As a result, the case calls for the laws governing municipal lotteries to be suspended and the regulations enforced by these entities to be deemed unconstitutional. The regions named in the act have been asked to share information on their future strategies.

Municipal lotteries under the spotlight after Loterj decision

This is the latest strike against regional lotteries, as Rio de Janeiro’s Lotterj has been embroiled in a heated legal battle against the federal government for months.

Loterj has long protested its state licence should allow brands to operate beyond Rio de Janeiro state borders and throughout Brazil.

However, Loterj’s hopes were dealt a potentially fatal blow in February when the STF voted to uphold the preliminary injunction handed down by minister André Mendonça in early January, which prohibited Loterj’s nationwide activities and mandated geolocation tracking to ensure its licensees were only active within the state of Rio de Janeiro.

Daniel Romanowski, president of the state lottery in Paraná, previously warned the next step in the discussion would likely address the other municipal lotteries and their licensing capabilities in Brazil.

Romanowski predicted municipalities would suffer the same outcome as state lotteries, with their activities restricted to within their own borders.

Newly regulated Brazil federal market

The legal Brazil online betting market launched on 1 January and is expected to become one of the top three gambling markets in the world.

The sector faced a lot of opposition over the second half of 2024, though, including the Solidarity party filing a separate lawsuit with the STF calling for federal betting laws to be deemed unconstitutional.

Combined with another ADI (Ação Direta de Inconstitucionalidade) from the National Confederation of Trade in Goods, Services and Tourism (CNC), Brazil’s third biggest trade union, the STF held a two-day hearing to investigate the effects of betting in Brazil and whether the betting laws breach Brazil’s constitution.

The result of that hearing will be confirmed in H1 2025, although the industry consensus is that the horse has bolted and there is little chance of the betting laws being scrapped.

The discourse over non-federal licensing looks set to rumble on, however, with Bodó seemingly ignoring both the legal uncertainty caused by the Loterj ruling and threats from the federal government to ban the municipality’s activities.

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The report, covered by ARD’s Monitor programme, claimed the state of Hesse concluded a settlement with sports betting providers in 2022 before the Darmstadt Administrative Court.

As per that reported settlement, sports betting operators can use a credit bureau to check a player’s financial standing, if they seek to increase their monthly betting deposit limit past €1,000. German private credit bureau Shufa is the credit agency referenced in the Monitor report.

However, the issue raised by Tipico, among other German sector stakeholders, is Monitor’s claim that this clause was previously kept secret and Schuf has been used to increase player deposit limits without operators checking player documentation.

Tipico deposit raises questioned

Monitor’s report claimed a student that earned just €1,000 a month was able to request and obtain a €10,000 deposit limit increase within seconds from Tipico.

“The segment implies that this procedure violated regulatory requirements,” Tipico said in a public statement dated 10 March. The impression was further intensified by stating that Tipico “declined to comment” when asked why this limit increase was granted.

Tipico said in response to questions from Monitor that it would be happy to investigate the reported case. “If you provide us with the relevant details, we can comment on why this limit increase was approved,” it said. However, Tipico said it received no further response from Monitor.

“The agreement is a judicial settlement which was reached and recorded during a public hearing at the Darmstadt Administrative Court,” the operator said of the agreement.

“The federal states have publicly disclosed the contents of this settlement in their interim report evaluating the State Treaty on Gambling. This report has been publicly accessible since June 2024.”

What are the GGL requirements on increasing deposit limits?

As per the German 2021 State Treaty on Gambling (GlüStV 2021), players are limited to a €1,000 deposit per month across all providers. This can be increased, on an operator by operator basis, if a player shows no signs of gambling addiction and if they are able to present proof to an operator they have the economic capacity to make larger deposits without encountering financial difficulties.

In its website FAQs, the German gambling regulator, the GGL, said a player must provide the operator with appropriate and verifiable evidence of financial capacity, when seeking a deposit increase.

This includes income tax assessments or other proof of income and bank statements. It said self-disclosures by players are not sufficient.

But the regulator has said Shufa checks are one procedure permitted to assess whether a player should be granted a deposit limit increase, as a person’s payment history can influence the decision.

GGL’s FAQ notes: “The decision to allow Schufa-G as a possible method for assessing players’ economic capacity was made by the gambling supervisory authorities of the federal states during the transition phase from a fundamentally complete ban on online gambling to a ban subject to authorisation.

“It was assumed that the methods used, including the Schufa-G check, adequately reflect economic capacity. The GGL continuously reviews the methods used, including the Schufa-G check, also taking into account current court decisions.”

DSWV calls report “unfounded”

The German Sports Betting Association (DSWV) has also hit out at the claims that German federal states have “secret agreements” with the gambling industry.

The DSWV said on 7 March that the report is an attempt to “scandalise” an agreement made between the GGL and licensed operators providing sports betting.

“The accusation is unfounded,” DSWV said. “There is no secret agreement. The responsible gambling supervisory authority and the sports betting providers have reached and recorded a settlement in public proceedings before the Darmstadt Administrative Court in accordance with the rule of law.”

DSWV stated that the Schufa procedure is a “useful indicator” of players’ financial circumstances and prevents indebted people from gambling, thus strengthening player protection.

Malta court ruling

In another case study, Monitor interviewed a woman called Sabine who lost roughly €180,000 on a Betway site before the company had a licence to legally operate in the German market.

German courts gave Sabine written orders so that she may recover her losses from Betway, but the report said by being based in Malta, the operator may not need to comply with the rulings.

On 27 February, a Maltese Civil Court ruled it would not enforce Austrian court judgments that were in favour of players who had gambled on sites in the country run by Malta-licensed operators.

The landmark ruling argued Austria’s gambling monopoly contradicts EU Article 56 in the Treaty on the Functioning of the European Union (TFEU), which sets out how services (like online gambling) can be provided across EU states.

The court said TFEU acts as a “primary source of community law” which is a “fundamental rule of the legal order” for both the EU and Malta.

The Austrian market, alongside Germany, has seen a number of court cases siding with players who have lost money on illegal sites.

Back in February, the penultimate chapter of the saga saw talks between the ÖVP and the right-wing populist Freedom Party (FPÖ) collapse, forcing the conservatives back into the arms of the Social Democrats (SPÖ) and the Liberal Party (NEOS).  

After whirlwind negotiations, the three parties published their coalition agreement on 27 February and were sworn in as Austria’s next government on 2 March.  

Under the motto ‘Do the right thing for Austria’, the government hopes its new programme will bring about a period of stability and help plug the country’s dire financial deficits.  

But for the gambling industry, the new coalition pact raises as many questions as it answers – not least when it comes to the liberalisation of the current online gambling monopoly model.

Urgent questions for the gambling industry

On pages 28-30 of Austria’s coalition agreement, the three parties set out their vision for structural reforms of gambling in Austria, promising a “further development of the gambling monopoly” and a crackdown on illegal operators. 

Currently, the country has a highly fragmented industry, with both online and land-based casino products offered under a monopoly licence and sports betting regulated by each of the nine federal states.   

The key question for the industry has been whether a new government will be brave enough to open up the market to multiple licensees in the next tender process. With the current licence due to expire in 2027, it is desperately seeking answers on what’s coming next. 

At present, the market is restricted to just one “legal” operator: Austrian Casinos subsidiary Win2day, which holds a 15-year licence for lotteries and online casino products. Meanwhile, Malta licensees like Tipico, Interwetten and Bwin are also active in the region but without a local licence.

Will Austria keep its monopoly, or liberalise gambling?

Depending on who you ask, the phrase “further development of the gambling monopoly” – or Weiterentwicklung in German – can be interpreted as a continuation of the status quo or a means of leaving the question open. The Austrian Betting and Gaming Association (OVWG) believes the latter is true.  

Pointing to the vague wording of the pact, OVWG vice president Simon Priglinger-Simader said time pressures may have forced negotiators to put online gambling on the back burner.  

“From our discussions with policymakers, we know that the issue of online gambling licences had not yet been negotiated at the time the government was formed,” he said. “There are many key decision-makers in the new government who advocate for a modernisation of the online gambling market in line with European standards.” 

Out of three parties in the coalition, two – the centre-right ÖVP and liberal NEOS – are in favour of reform, while the centre-left SPÖ is believed to be opposed. At the end of five months of back-and-forth, it seems the issue of gambling reform may have been one of many that was pushed onto the “maybe” pile. 

Similarities with previous governments’ views

But not everyone is positive about breaking the deadlock under the current three-party coalition.  

Dr Arthur Stadler, founding partner at the Vienna-based law firm Stadler Völkel, sees many parallels between previous coalitions and the current government – and points out that these centre-right and centre-left groupings have always struggled to agree on gambling.  

“While the liberalisation of online gambling in Austria is long overdue, the coalition agreement reads in many parts very similar to the previous government’s coalition paper,” said Stadler. “Take, for example, the development of the monopoly framework, reinforced by IP blocking and payment blocking – this closely mirrors the approach taken over the past decade under the Grand Coalition of the ÖVP and SPÖ.  

“Even four years ago, during the coalition between the conservatives and the Greens, the positions set out in the coalition agreement remained largely unchanged.” 

All of this means that Austria’s gambling market is “in urgent need of an overhaul”, Stadler said.  

Glimpses of hope for gambling liberalisation

For those looking for light on the horizon, however, there are some signs that the door to liberalisation has been left open – at least by a crack.  

The first is the frequency of the word Weiterentwicklung (“further development”), which is used in the coalition pact around 130 times. According to OVWG, this wording seems to be a way of pushing back some of the tougher coalition talks to a later date.  

The second relates to some of the more concrete plans set out in the pact. These range from new player protection measures to the establishment of an independent gambling authority that would take over from the ministry of finance in issuing future licences. 

According to Priglinger-Simader, the new gambling authority and certain player protection regulations only make sense if you assume that Austria’s market will be liberalised in the coming years. For example, the parties say they will look at introducing “an operator-independent player ID card with various functionalities to ensure player protection”, including a self-exclusion register. 

As the OVWG vice president points out, this implies a market with multiple regulated operators that could participate in any player ID and self-exclusion scheme.  

Neutering the ministry of finance 

Another positive sign is the plan to “debundle” the various roles held by the finance ministry. As well as acting as the regulator and authority for the industry, the ministry is also responsible for collecting taxes from it; it even owns a 33.3% stake in monopoly operator Austrian Casinos and Austrian Lotteries.  

“Specifically, the areas of player protection, supervision, regulation, licensing and the fiscal and ownership interests of the federal ministry of finance will be unbundled,” the coalition pact states. Instead, the ministry’s licensing and oversight roles will be transferred to an “independent supervisory authority” that will adhere to “international standards”.  

Significantly, the more gambling-sceptic SPÖ is set to take control of the ministry of finance, so the move to set up an independent body could be seen as a ploy to put gambling in more neutral hands. It should also put to bed ongoing accusations of a conflict of interest, which were rife after the controversial tender process back in 2012.  

According to Stadler, the move towards an independent licensing body is “a positive sign” and one that will be hugely significant when the next tender proceedings begin.  

“There are signs that a significant market transformation is under way, closely intertwined with a regulatory shift from a monopolised online casino market to a multi-licensed framework,” he said. “However, the language used in the coalition agreement could have been more explicit. Now is the time to open the market and liberalise.”  

Betting levy in Austria to increase dramatically?  

While the future of online licensing remains unclear, there is some clarity on the financial burdens operators can expect.  

On Friday, the coalition voted to raise the 2% betting levy to 5% – a 150% hike on the current tax rate – on 1 April this year.  

“Austria’s betting market was, compared to Germany, a more attractive one, so it remains to be seen how operators will react and whether they pass this additional tax burden on to their customers,” said Stadler. 

Viewing the unpopular industry as a potential cash cow, the government believes it can raise €50 million from gambling in 2025 and as much as €220 million in 2030. The OVWG believes that this second figure would be unattainable relying on tax hikes alone, meaning lawmakers would have to liberalise the market to achieve their target sums.  

The clock is ticking on market liberalisation

With the current casino licences due to expire in September 2027, the government has just two and a half years to establish its new gambling authority, issue licences and fend off potential legal battles. 

Whether the market is opened or not – and particularly if it isn’t – the next tender process is expected to be more competitive and embattled than ever.  

Operators may form coalitions in order to be able to meet experience requirements set by the regulator and, if the process is deemed biased or unfair, challenges will undoubtedly be raised at administrative courts around the country, says Stadler.

Some of these could even reach the Constitutional Court and drag out the tender process by a year or more. 

All of this puts the government on a very tight deadline to try and establish its new authority. This would have to be done within the year, with details of the tender process – and a final decision on licensing – published shortly afterwards.  

In the meantime, lobbying work will be continuing at a ferocious pace behind the scenes, with those who support the current monopoly and those who oppose it battling hard for precedence.  

“Whatever comes out of this, we will probably see at the latest in September or October,” said Priglinger-Simader. “But it’s still an open race for us, I’d say.”  

However, last Wednesday (26 February) Betsson announced it had received its full licence to operate in Brazil, with the authorisation lasting five years from 25 February.

Betsson moved into Brazil in 2019 when it acquired a 75% stake in local sportsbook operator Suaposta. The company also maintains a presence in the neighbouring LatAm markets of Colombia and Peru.

In Betsson AB’s announcement, Lindwall said the authorisation aligned with the company’s plans to expand across the globe.

“We welcome the introduction of a local regulatory framework in Brazil and are pleased to have obtained a licence.

“This step aligns with our strategy to grow via geographical expansion and we look forward to offering Brazilian customers a secure and high-quality gaming experience.”

Five other operators also received full licences last Tuesday (25 February). These included Big Brazil and its Caesars brand, as well as Skill On Net and Reals Brasil.

When will Betsson go all-in on Brazil?

Betsson’s new full licence follows comments from group CEO Jesper Svensson, in which he revealed the company would park its investment in Brazil to focus on Spanish-speaking LatAm markets in the short-term.

At the time he told iGB: “Although we have been growing really well in Latin America, we have not yet started to invest in Brazil.

“We will try the market, but our focus has more been the Spanish-speaking countries. [However] our ambition is clearly to be part of the regulation and over time build a strong business in Brazil as well.”

In Betsson’s 2024 full-year earnings report, group revenue broke the €1 billion (£833.2 million/$1.04 billion) barrier for the 12-month period. This was an increase of 16.8% over 2023 and Lindwall pointed to LatAm as a “key driver” of Betsson’s growth in 2024.

VaideBet authorised by court order

Joining Betsson in the betting market, at least provisionally, will be VaideBet after its parent company BPX Bets Sports Group was authorised by a court order to operate in Brazil.

BPX Bets’ BetPix365 and ObaBet brands can also operate on a provisional basis after judge Pablo Zuniga Dourado granted the company an injunction to offer fixed-odds betting across Brazil on 26 February.

Zuniga also set a daily fine of BRL10,000 (£1,292/€1,555/$1,635) for the regulator, the Secretariat of Prizes and Bets (SPA), if it continued to omit BPX Bets’ brands from operating. Additionally, Zuniga warned he could work alongside the public prosecutor’s office to pursue an investigation into the crime of disobedience from the SPA if it failed to authorise BPX Bets.

The SPA did adhere to Zuniga’s request, authorising BPX Bets’ three brands to operate on a provisional basis.

Another operator (called Tropicalize) has been excluded from the market following a decision from judge Flavio Jaime de Moraes Jardim of the Federal Regional Court of the First Region. It had previously been on the list of companies authorised by the courts to provide gambling services in Brazil.

It has been reported that Tropicalize failed to pay the BRL30 million licence fee, which has led to its removal from the list of court-approved operators.

Requirements under the ADR policy have been laid out in a consultation document released on 24 February by the CGA (previously known as the GCB/Gaming Control Board).  

ADR providers will be separate entities from the B2C licensed operators and their role is to provide independent and impartial advice while handling player complaints that can’t be easily solved by customer services.  

ADR providers, approved by the CGA, will be required to determine whether a case filed by a player requires mediation or adjudication and will go between the relevant parties to access all relevant information relating to a case.  

However, ADR entities will not have powers to investigate a dispute beyond the evidence provided by those involved. When uncovering sensitive information, the CGA has said that ADR divisions are responsible for sharing relevant details with the regulator.  

This, it said, could indicate where industry-wide problems are occurring.  

ADR expertise requirements 

It will be a requirement for ADR divisions to operate standalone websites for players to access outside of the operator’s products. The entity must be based on Curaçao.  

In terms of staff requirements, each team will need a qualified lawyer and at least three members of staff, all with experience in the gambling industry.  

Applications for ADR approvals are being accepted by the CGA now and are expected to take six weeks.  

High-profile player cases prompt ADR policy formation

Forming an ADR policy was first hinted at in November when Curaçao-licensed operator BC Game was embroiled in a high-profile player dispute case that resulted in it being declared bankrupt by a local court.  

BC Game was licensed under the regulator’s previous master licence framework and was taken to court by a cohort of players that claimed to be owed large sums of winnings.  

Both BC Game’s founding company and the business it was subsequently sold to were declared bankrupt so players could claim compensation through the process. 

The case brought about allegations of corruption, fraud and money laundering within the CGA’s new licensing framework from opposition politician Luigi Faneyte.  

The CGA refuted the claims and said it would establish an independent ADR policy to resolve legal disputes outside of court within its LOK framework. This would include mediation, arbitration and negotiation measures.  

Parliament approved the LOK framework in December which will usher in a new era for gambling regulations on the island.

One of the objectives of the LOK is to improve Curaçao’s reputation as a haven for grey market operators. Minister of finance Javier Silvania previously described the reforms as a “safety net” against unlicensed gambling operators.

The new system provides multiple application types for B2B, B2C and B2B2C operators.

In a report published on 21 February the auditor said it is considering notifying Romania’s criminal prosecution bodies of these failings. This is primarily due to the ONJN not enforcing a legal requirement for it to have remote access to all licensed operators’ systems.

This, the report said, led to potential errors in the amount of money collected in authorisation fees, in particular because of a discrepancy in taxation compared to actual RTP (return to player) levels. The ONJN never investigated the implications of the lowering of RTP requirements in Malta, where most of Romania’s operators are registered, in 2021.

State budget revenues were seriously affected by this failing, with unpaid tax differences of over 78 million lei ($16.4 million/ £13 million) identified for 2022 and 2023 alone. However, the Court of Auditors report claims that there is a potential difference in undeclared authorisation fees of up to 4.8bn lei ($1 billion) between 2019 and 2023.

“Since its establishment until now, the National Office for Gambling (ONJN) has never monitored or controlled the activity of remote (online) gambling organisers and has not fulfilled its legal duties such as analysing the data stored by the game organisers or verifying the accuracy of their periodic reports,” the Court of Auditors said in the report.

“During the mission, external public auditors found numerous irregularities in the office’s activity. An important consequence of these irregularities is the failure to generate state budget revenues at a level corresponding to the collection potential from this area of ​​economic activity.”

ONJN’s further failures

The Court of Accounts has sent the ONJN a series of recommendations, with the aim of remedying the deviations found.

These included concrete measures to update operational procedures for licensed gambling operators. The ONJN must ensure it has the ability to remotely access online gambling servers located in Romania.

While a number of state lotteries have approved betting operators to do business within the state, Loterj was the only one to offer nationwide licences. It claimed Accreditation Notice 01/2023 allowed its licensees to operate public lottery services throughout Brazil.

However, its hopes of being able to do so took a dent when Mendonça passed a preliminary injunction on 2 January to ban Loterj’s nationwide activities. This injunction also mandated geolocation tracking to ensure licensees were only offering bets within Rio de Janeiro state borders.

Mendonça’s ruling was to be voted upon in a virtual session of the STF plenary. Though the session was briefly halted after minister Dias Toffoli requested a review, the STF has now achieved a majority of seven votes after ministers such as Flavio Dino, Gilmar Mendes and Toffoli himself sided with the federal government.

With Mendonça’s injunction maintained, Loterj licensees will only be authorised to offer bets within Rio de Janeiro, with geolocation tracking in place to ensure compliance with those restrictions.

Is the Loterj/federal government battle finally over?

The new vote from the STF looks to have finally put an end to Loterj’s claims that its Accreditation Notice 01/2023 allows it to authorise brands nationwide.

Loterj itself appeared to have conceded defeat last week, publishing an ordinance to order its licensed brands to adhere to the requirements of Mendonça’s ruling. It previously filed appeals against those restrictions, all of which were rejected.

Daniel Romanowski, president of the state lottery in Paraná, told iGB on Thursday prior to the STF’s majority vote that he believed such an outcome would mean Loterj’s legal rebuttals would be “done”.

An end to Loterj’s federal licensing hopes

It’s certainly a big blow for Loterj, which had claimed in the past to have the “best cost-benefit” ratio for online betting licences.

A federal betting licence costs BRL30 million (£3.9 million/€4.7 million/$4.8 million) for a five-year term. Loterj authorisation for the same period is significantly lower at just BRL5 million. Additionally, federal licence holders are subject to a 12% tax on gross gaming revenue (GGR), much higher than the 5% rate applied to Loterj licensees.

Despite Loterj licensees previously being permitted to operate nationwide, specialist betting lawyer Udo Seckelmann of Bichara e Motta Advogados predicted the federal authorities would put an end to its plans.

“Before people came to me to be their lawyer and said, ‘I want to get a licence in Brazil’ and I’d say, ‘Okay, there’s a federal licence in which you can offer to the whole country. That’s the good way to go,’” Seckelmann told iGB. “And they said, ‘No, but I heard something about a state licence which would give me the same rights, and at the same time would be cheaper.’

“And I said, ‘Look, you are correct, but at the same time, we don’t know what’s going to happen in a few months or in a few years about this.’ So it’s a legal uncertainty.”

After eight companies received definitive licences on Tuesday (18 February), 43 operators now have full authorisation to operate in Brazil, with a further seven given permission by the court system to legally offer bets.

Operators’ AML and CTF policies must go in-depth on their actions for different scenarios, following the regulations set out in the betting law (Law No 14,790/2023) and Normative Ordinance No 1,143.

The laws call for effective action to prevent financial crimes relating to betting, with failure to do so potentially resulting in sanctions.

What are the regulations in Brazil on AML?

Normative Ordinance No 1,143, published on 11 July 2024, provided for policies, procedures and internal controls to prevent money laundering, terrorist financing and the proliferation of weapons of mass destruction.

The ordinance requires betting agents to implement policies for identifying and assessing the risk levels of customers seeking to register.

These requirements extend to all entities involved in the operation of fixed-odds betting, including employees and suppliers. Additionally, the ordinance sets out criteria mandating that betting companies report any suspicious transactions to Brazil’s financial intelligence unit (COAF).

Operators must evaluate whether a bettor’s financial and economic capacity aligns with their betting activities. They are also required to check for any politically exposed persons (PEPs) and their close associates, following COAF guidelines.

On 12 February, the SPA hosted a webinar clarifying best practice for reporting suspicious activity to the COAF.

Such communications must include an indication of why the activity was analysed, as well as an explanation of the evidence that points to the presence of money laundering or terrorism financing.

In November 2024, the SPA joined the National Strategy to Combat Corruption and Money Laundering (ENNCLA) to boost anti-corruption efforts in Brazil.

The body has been involved in 90 public laws being established in the executive branch of Brazil’s federal government, as well as the judiciary and legislative levels and the public ministry.

Hearing on betting regulatory agenda gets under way

Today (21 February), the SPA’s public hearing to inform its 2025-2026 regulatory agenda gets under way.

Earlier this month, the SPA held a press conference establishing the timeline for its new agenda. They invited players, operators and suppliers to contribute to the public consultation.

The public hearing forms part of the SPA’s consultation process, which will close on 27 March. The SPA’s 2025-2026 regulatory agenda will then be published on 4 April.

After the Supreme Court rejected Loterj’s appeals, Mendonça’s preliminary injunction was set to go to a vote in a virtual session of the STF plenary. This was due to take place between 14 and 21 February.

But while the trial did get under way, with three votes in favour of upholding Mendonça’s ruling, minister Dias Toffoli requested a review on Tuesday (18 February). The trial has now been preliminarily suspended.

It means Mendonça’s injunction remains in place. Loterj licensees therefore remain banned from operating throughout Brazil, while geolocation tracking will be used to ensure they are only offering bets within Rio de Janeiro. Toffoli has 90 days from 18 February to return the case.

Loterj already on the ropes

A resolution to the conflict between Loterj and the federal government moved a step closer last Thursday (13 February), when Loterj published an ordinance suspending nationwide activities.

The ordinance, published in the Rio de Janeiro Official Gazette, also reestablished geolocation tracking for its licensees.

The ordinance, signed by Loterj president Hazenclever Lopes Cançado, will remain effective for the duration of Mendonça’s preliminary decision.

Loterj is encountering significant opposition, notably from the Brazilian Institute of Responsible Gaming (IBJR). The IBJR has requested to participate in the STF case against the state lottery as an “amicus curiae”, arguing it has valuable insights to contribute to the proceedings.

Among these insights is the IBJR’s belief that, contrary to Loterj’s claims, the technology required for geolocation tracking is readily available to meet the conditions set by Mendonça’s ruling.

At the time 14 operators were granted full authorisation to operate in the market, then a second round of 21 receiving full licences was awarded last Tuesday (11 February).

An ordinance published in the Official Gazette of the Union outlined the latest round which has authorised a further 18 brands, taking the tally to 191 fully-licensed brands.

EstrelaBet among the new full licensees

One of the more notable names to receive its full betting licence today is EstrelaBet, while F12, which was among the first 10 to apply for authorisation, also received a definitive licence.

Seven of the eight new full licensees were granted provisional licences ahead of the market’s launch in December. This enabled them to operate as normal while issues with their applications, such as certifications, were ironed out.

The exception is Hiper Bet, which did previously have a provisional licence. Its five-year full betting licence will end on 18 February 2030, whereas the other full licences awarded today will end on 31 December 2029.

The list of new licensees is as follows:

More provisional licences granted

Additionally, seven companies have been given permission to operate on a provisional basis thanks to court orders.

The most recent was Atlantis Comercio Eletrônico e Software House Ltda and its MetBet, EsportivaBet and MetGol 100% brands.

Companies that applied for a licence prior to the 20 August 2024 deadline were guaranteed to have their applications processed by the market launch.

However, Atlantis received no notification from the regulator other than a request for documents on 17 January. With its application not processed in time, the court has ordered the SPA to grant Atlantis’ brands permission to operate provisionally.

Notably Betsson remains off the list of authorised companies, with a spokesperson previously telling iGB it has until the end of February to submit the technical certifications necessary to upgrade its provisional licence to full authorisation.