Lincoln, Rhode Island’s Twin River Casino is only one whose revenues could be affected by the opening that is upcoming of properties across the border in Massachusetts (Image: WPRO File Photo)
Gamblers and state officials in Massachusetts are starting to getting excited; after all, next few months, licenses will be awarded to as much as three casino operators in numerous regions of the state to join the slots parlor in Plainville, and that’s going to suggest plenty of brand new revenue for their state. It does mean that Massachusetts gamblers will be able to stay lot closer to home when they want to search for a casino great for them, but not so good for the state’s next-door neighbors who rely on gambling revenues as an ingredient of the state budgets.
The most effect that is dramatic be felt in the tiny state of Rhode Island, which directly borders Massachusetts towards the southeast. Gambling is the third-largest revenue supply for the Ocean State, with most from the Twin River in Lincoln and the Newport Grand in Newport.
At this time, those gambling enterprises are likely to bring in $394 million for hawaii in the present year that is fiscal and another $400 million in 2014-15. But in the four years following the Massachusetts casinos start opening which many believe could happen as early as next year the Rhode Island Office of Management and Budget estimates that the state could lose $422 million over a period that is four-year. That will begin with a $48 million dip in 2015-16, which will increase to $144 million by the end of the projection that is four-year.
That’s a problem for hawaii, since these are typically already budget that is predicting for those years. The loss of gambling revenue would only exacerbate that problem, causing a projected shortfall of $419 million for the 2018-19 year that is fiscal.
The problem only expanded more apparent when the Penn nationwide Gaming proposal in Plainville was chosen while the site of Massachusetts’ lone slots parlor. That facility that could be up and running prior to the end of this is right on the border with Rhode Island, and perfectly located to attract what University of Massachusetts Dartmouth professor Clyde Barrow calls ‘convenience gamblers,’ who normally traveled to the Rhode Island casinos year.
‘ The first objective was to fully capture convenience gamblers that were leaving Massachusetts and going to Twin River and Newport Grand,’ Barrow who’s an expert in the gaming industry said.
While casino operators in Rhode Island understand this problem is coming and will work to combat it, there is only a great deal they together with state can do to protect their profits.
‘We’ve said all along that we can focus on the things we can get a handle on,’ said Twin River Chairman John Taylor. ‘we can not obviously have much effect on what are the results. although we want to be familiar with what’s happening over the border,’
One avenue that is potential increased gambling revenues is on the web gambling. Nevertheless, Rhode Island has yet to even test Internet gaming sites, and the state has yet to move beyond the exploratory stage in thinking about the idea.
The state lottery believes since it already offers such games offline that it could add online versions of games like keno and bingo. However, adding casino games or poker would require approval from Rhode Island’s residents, since it could be a totally brand new form of gambling.
‘ We wouldn’t pursue it without statewide approval,’ stated Rhode Island Lottery Director Gerald S. Aubin. ‘To venture into internet poker and online gaming would take constitutional approval.’
Aubin also questioned whether offering lottery products online would simply cannibalize revenues from convenience stores and other vendors who presently sell their games, potentially causing more harm compared to the added revenue will be worth.
The European Parliament wants new directives aimed at making EU nation online gambling operators’ money laundering nigh unto impossible to expedite (Image: circuit3.blogspot.com)
The European Parliament has approved a proposition that will tie all gambling operators to stringent anti-money laundering measures and require all beneficial owners of online gambling companies in EU countries to be listed in public registers. Beneficial owners are people who ultimately own an investment, rather than simply hold it on behalf of the real owner, and so the new legislation seeks to prevent criminals from having anonymous stakes in online gambling operations.
It will also ensure that banks, solicitors, auditors, etc., have a responsibility to question any dubious transactions made by their clients. As well as listing information on company owners, the brand new registers will carry information on legal plans pertaining to all individuals’ companies, holdings, foundations and trusts.
That online gambling can facilitate money laundering is a frequent battle cry of the anti-gambling brigade, although the veracity of that claim has been up for debate. The online gambling industry already has strict measures that are anti-money-laundering place. The EU legislation should, then, be welcomed by both sides the gambling industry, irked by the claims that are money-laundering has for ages been available to greater transparency, and this will truly lay all the cards on the dining table, rendering it much more burdensome for any operator inside the European Union to make illegal transactions or evade taxes.
Secretary General of the European Gaming and Betting Association Maarten Haijer welcomed the directive, saying that, within an era when ‘dot.countries’ within the EU are increasingly segregating online gambling within their edges, it reinforces the idea that the industry is essentially a service that is cross-border and is better governed by a pan-European code, as opposed to many different national regulators.
‘We are confident that the European Parliament now has a good basis to come to an agreement using the Council,’ he said. ‘We hope that the text that is final be approved by all organizations by the finish of this year since it is vital that the directive is transposed at national level since quickly as possible.’
However, the Remote Gambling Association (RGA) was less enthused, questioning why the online gambling industry had been singled out, particularly whenever it already has rigorous anti-money-laundering and due diligence measures in place. It also proposed that the 3rd AML Directive law passed by the EU in 2005 was adhered to by all Nation States and had been effective in combating money laundering.
Chief executive of the RGA Clive Hawkswood said: ‘The licensed gambling that is online has highly developed tools for identifying feasible threats and contains an excellent record in preventing cash laundering. As an industry we are never complacent, but simply there isn’t any reason for singling out our sector with this kind of treatment.’
The directive, which was passed by 643 votes to 30 with 12 abstentions, still has some method to go before it becomes law, however. Brussels is notorious for its tortuous bureaucratic tape that is red it’s possible that the EU Council may reject the recommendations of the European Parliament. More negotiations are set to occur after the elections that are parliamentary a couple of months’ time.
‘We have consistently supported a risk-based approach,’ said Hawkswood, ‘which we consider to function as the most suitable way to tackle any issues and, of course, individual Member States can introduce additional measures if a number of problems inside their jurisdictions. We wish now that the EU Council will reject the Parliament’s position on this dilemma and that the European Commission will defend its original stance.’
Koen Roovers, EU consultant for the Financial Transparency Coalition, was adament, but, that ‘the current system has bred a vast system of anonymous shell companies, which are utilized to funnel cash that has been gained through illegal practices, or embezzled from a federal government’s coffers.’
The debate goes on…
February’s online video gaming revenues in New Jersey were better compared to before, but analysts view a slowdown (Image: pokernews.com month)
What goes up, must fall. Or, in this case, it must at least start increasing more slowly. This is the story out of the latest Jersey, where online gambling revenues continue to develop for hawaii though not since quickly because they did within the last few two months.
The raw figures for New Jersey’s Internet casinos and poker sites were definitely improved in February. All told, web sites brought in a combined $10.3 million, up 8.9 percent from January. That helped offset a 6.2 percent decline in land-based casinos in Atlantic City, which brought in just $199.1 million during the thirty days. Overall, that meant that total revenues were down simply 1.5 per cent from last year, when online gambling did not exist to buoy the numbers somewhat.
Growth of close to 9 percent is not a problem for New Jersey’s fledgling online gambling industry, but it might not be the kind of growth state and casino officials were hoping for after what they saw in January. The month that is first of year the 2nd full month of casinopokies777.com play in the sites saw growth of 28 percent in month-over-month revenues compared to last December.
Which has led some to wonder if the newest Jersey market is starting to plateau, reaching a true point where further growth will be slow (if hopefully steady). But for many within the industry who were not sure just what you may anticipate, the true numbers thus far happen more than adequate.
‘We are delighted aided by the means it’s started,’ stated Brian Mattingly, CEO of 888 Holdings. ‘All of us got into an excellent rhythm and started some good advertising. Overall, I’m happy with where we are at.’
The Borgata Casino once again led the way in the on line gambling sector, as their partnership with Boyd Gaming (which owns about 50 % of the Borgata) and MGM Resorts introduced $4.09 million just under 40 percent associated with whole market. Caesars Entertainment which partners with 888 Holdings to deliver their online gambling services and products came in a strong second, bringing in $3.34 million (about 32 percent associated with the market). Borgata and Caesars have quickly founded themselves since the leaders within the New Jersey market, with all other sites that are online attracting less revenue than either of their offerings.
‘ We were particularly encouraged by the performance of Borgata’s online casino site, which achieved month-over-month revenue growth of 36 percent,’ stated Boyd Gaming CEO Keith Smith. ‘Looking ahead, we continue to see opportunities that are significant future growth in nj.’
The final number of accounts at brand New Jersey sites was up considerably as well. At the time of February 28, there were 248,241 Internet that is active gambling in their state, though it is not clear just how many of those belonged to unique people.
While the numbers coming in-may be near to exactly what industry analysts expected, they’re far short of just what will be required to meet Governor Chris Christie’s hopes of creating $180 million in taxation profits for the state. The Christie management has since admitted those true figures were unrealistic, and revised them downward. Recently, the state said they will not make such estimates for online and brick-and-mortar revenues, and instead attempt to estimate the overall gambling industry alternatively.
‘Given the complex connections between Internet and gaming that is on-site we usually do not bear down the anticipated total collections between the two sources,’ said New Jersey Treasurer Andrew Sidamon-Eristoff in a letter to mention Senator Paul Sarlo.