Borgata’s Recurring Issues with Promo Credit Reporting
The New Jersey Division of Gaming Enforcement (DGE) has imposed a $75,000 fine on Borgata Casino following an audit that uncovered significant discrepancies in the reporting of iGaming promotional gaming credits (PGCs) on the BetMGM platform. The audit, covering the period from October 2023 to May 2024, revealed that Borgata had overstated its PGCs by over $4.5 million, leading to an underpayment of $365,161 in gross revenue taxes.
This fine marks the second time in less than 18 months that Borgata has faced penalties for similar violations, raising concerns over the casino’s compliance with state regulations.
Second Violation in 18 Months
Borgata’s latest infraction echoes a previous issue in March 2023, when the DGE discovered that the casino had overstated its iGaming promo credits by nearly $10 million, resulting in an underpayment of over $787,000 in taxes. The recurrence of such a significant error within a short timeframe has led the DGE to take more stringent action.
In a letter addressed to Borgata’s Senior Vice President and Legal Counsel, Patrick Madamba, DGE Interim Director Mary Jo Flaherty expressed serious concerns over the repeated nature of these violations. “The Division views this matter as serious,” Flaherty wrote, emphasizing the gravity of the situation. The DGE’s July 10, 2024, audit report pointed out that the overstatement was due to a software upgrade on the BetMGM platform, which inadvertently allowed for the deduction of promo credits in amounts exceeding the bonuses awarded to players. The DGE stressed that such discrepancies are a clear violation of New Jersey’s gaming laws.
Despite Borgata’s swift correction of the underpayments, the repeated violations have prompted the DGE to consider additional regulatory actions. Flaherty noted that the original violation resulted in the assessment of additional taxes, penalties, and interest totaling over $1.3 million. The DGE’s audit findings make it clear that further violations could lead to more severe penalties.
Wider Enforcement by the DGE
Borgata and its iGaming partner, BetMGM, are not the only operators to have faced penalties from the DGE in recent months. In July 2024, DraftKings was fined $100,000 for significant reporting errors that led to incorrect sports betting tax returns over a three-month period. Additionally, earlier in August 2024, the DGE ordered bet365 to pay over half a million dollars to New Jersey bettors following an investigation that found the sportsbook had been altering odds on events without notifying the DGE.
The DGE’s actions reflect a broader effort to enforce strict compliance with gaming regulations, particularly in the rapidly growing online gambling sector. As the industry continues to expand, operators are under increasing scrutiny to ensure accurate reporting and adherence to state laws.
The recurring issues with Borgata and other operators highlight the challenges the industry faces in maintaining compliance and the significant financial consequences of failing to do so.
The Australian Communications and Media Authority (ACMA) is boosting its efforts to protect Australian consumers by directing internet service providers (ISPs) to block additional illegal gambling and affiliate marketing websites. These actions stem from investigations revealing that several platforms were operating in violation of the Interactive Gambling Act 2001, offering unlicensed and prohibited gambling services to Australian users.
Expanding the List of Blocked Sites
In its latest enforcement wave, the ACMA has targeted multiple online platforms that were found to be offering illegal gambling services. These platforms were involved in providing services such as online casinos, slot machines, and in-play sports betting—all of which are illegal under Australian law when offered without a proper license.
The ACMA’s action aligns with its overarching mission to safeguard Australians from the dangers posed by unregulated online gambling. According to the authority, website blocking is a crucial enforcement tool used to prevent access to illegal gambling services. This measure is implemented when a service is found to be offering prohibited interactive gambling services, operating without a valid Australian license, or promoting such illegal activities through advertisements.
Since the ACMA began issuing blocking requests in November 2019, it has successfully blocked 1,026 illegal gambling and affiliate websites. Furthermore, the ACMA’s strict enforcement of offshore gambling regulations has led to over 220 illegal services voluntarily withdrawing from the Australian market. These efforts underscore the ACMA’s commitment to maintaining a safe and regulated online gambling environment in Australia.
Enhancing Consumer Protection
The ACMA has repeatedly stressed the importance of consumer awareness when engaging with online gambling services. Even if a site appears legitimate, it may still be operating illegally and lack the consumer protections that licensed services must provide. Without these safeguards, Australians are at risk of losing their winnings or being subjected to other unfair practices by unregulated operators. To assist consumers, the ACMA offers a register where Australians can verify the licensing status of wagering services operating within the country.
Protecting Australian Consumers
The ACMA continues to encourage Australian consumers to take proactive measures in protecting themselves from illegal gambling operators. The authority’s website provides valuable resources and guidance on identifying and avoiding unregulated gambling services. Additionally, the ACMA offers clear instructions on how consumers can file complaints against illegal gambling sites, ensuring that these sites are promptly addressed.
The ACMA’s ongoing actions to block illegal gambling websites are part of a broader strategy to enforce compliance with Australian gambling laws. The authority is dedicated to ensuring that all gambling services operating within Australia are properly licensed and adhere to the legal framework designed to protect consumers. By continuing to block illegal sites and removing unlicensed operators from the market, the ACMA aims to create a safer online environment for all Australians.
Flutter Entertainment, a global leader in online sports betting and iGaming, has unveiled a new technology center in Hyderabad, India, marking a significant $3.5 million investment in the region. This strategic expansion highlights Flutter’s commitment to harnessing top-tier talent and fostering innovation in one of the world’s most dynamic tech markets.
The Hyderabad Global Capability Centre: A Hub of Excellence
Situated in the prestigious RMZ Spire within Knowledge City, Hyderabad, the new Global Capability Centre spans over 80,000 square feet. This state-of-the-art facility employs over 700 professionals across various critical departments, including Data Engineering, Game Integrity Services, Human Resources, Procurement, Safety and Security, and Customer Operations.
Flutter Entertainment plans to scale its workforce to 900 by the end of the year, with a strong focus on recruiting specialists in data analytics and engineering. Furthermore, the company aims to achieve a 40% female leadership team at the center by 2026, underscoring its commitment to diversity and inclusion.
Commitment to Innovation and Sustainability
The Hyderabad center is designed to be a beacon of innovation, leveraging the Flutter Edge. This unique competitive advantage supports the company’s global brands such as Paddy Power, Sisal, Sky Betting & Gaming, PokerStars, Sportsbet, and Betfair. This new hub is not just about business growth; it’s also about sustainability. The US Green Building Council awarded the facility Gold certification for its Leadership in Energy and Environmental Design, demonstrating Flutter’s dedication to reducing environmental impact.
As part of its Positive Impact Plan, Flutter is also investing £30,000 in local initiatives around Hyderabad for the year 2024, reinforcing its commitment to making a meaningful difference in the communities it serves.
Leadership Insights: Driving Global Growth
Phil Bishop, Chief Operating Officer of Flutter Entertainment, emphasized the significance of this expansion: “Our growth in India represents a major milestone for Flutter. This new centre of excellence in Hyderabad is designed to foster creativity and growth, solidifying our presence in the Indian job market.”
Ashish Sinha, Managing Director of Flutter Entertainment India, echoed these sentiments: “Expanding our facility in Hyderabad aligns perfectly with our global vision of continuously improving our products and technology. India presents a substantial opportunity for our business, and we are eager to lead the sector globally while maintaining a challenger mindset.”
Impact on Online Gambling: A Broader Perspective
This strategic expansion into India bolsters Flutter Entertainment’s operational capabilities and positions the company to enhance its offerings in the global online gambling market. By tapping into the rich talent pool in India, Flutter can accelerate the development of cutting-edge technologies and data-driven insights that are crucial in staying ahead in the competitive iGaming and sports betting industry. This move is expected to lead to more innovative and secure gaming experiences for users worldwide, potentially reshaping the future of online gambling.
Introduction of Non-Cash Prizes Set to Boost Player Engagement
SOFTSWISS, a leading iGaming software solutions provider, has significantly enhanced its Game Aggregator by expanding the rewards available through its Tournament Tool. This upgrade allows operators to offer a wider variety of prizes, going beyond traditional cash rewards to include luxury cars, trips to Las Vegas, mobile devices, branded merchandise, and more.
Expanding Opportunities for Operators and Players
With this new feature, operators who use the SOFTSWISS Game Aggregator can now design tournaments that cater to specific player demographics, including VIPs and high rollers. For instance, a summer tournament might offer a luxury cabriolet as the top prize for VIP players, while those with smaller stakes could compete for free spins or branded merchandise.
The expanded prize pool isn’t just about variety; it’s also a strategic move to boost player engagement. The Tournament Tool has already proven effective, with SOFTSWISS reporting a 22% increase in average daily bets per user and a boost in gross gaming revenue and bet count. With the addition of non-cash prizes, operators can expect even greater participation and retention rates.
A Data-Driven Approach to Customization
Tatyana Kaminskaya, Head of SOFTSWISS Game Aggregator, highlighted the importance of a tailored approach, saying, “Our approach is always research and data-driven. We recognize that different player groups require distinct mechanics, rewards, and strategies. That’s why we encourage our clients to adopt a data-driven approach and provide them with all the necessary tools to implement customized engagement campaigns. Adding non-monetary prizes to the tournaments is one of these steps.”
The new Tournament Tool enhancements also enable operators to manage these tournaments with ease. All settings can be configured through the Tool’s back office, and players can view prize details and leaderboards directly within the casino interface, making the experience seamless and engaging.
A Growing Content Hub
The expansion of the Tournament Tool follows SOFTSWISS’s reaching a significant milestone. The Game Aggregator now boasts a portfolio of over 23,500 games, making it the largest content hub on the market. This vast selection of games, combined with the new tournament features, positions SOFTSWISS as a leader in providing comprehensive solutions for the iGaming industry.
As SOFTSWISS continues to innovate, operators can expect more tools and features designed to maximize player engagement and satisfaction. This will ultimately drive revenue growth and cement operators’ competitive edge in the market.
The U.S. commercial gaming industry has achieved an unprecedented milestone, with revenues soaring to $17.63 billion in the second quarter of 2024. This record-setting performance, reported by the American Gaming Association (AGA) through its Commercial Gaming Revenue Tracker, marks the 14th consecutive quarter of year-over-year growth and the highest Q2 earnings on record.
Broad-Based Growth Across Gaming Sectors
Gaming revenue witnessed growth across multiple sectors and regions, with 24 jurisdictions reporting increases compared to the previous year. This remarkable performance generated $3.73 billion in state taxes, underscoring the sector’s significant contribution to local economies.
Breaking down the revenue sources, land-based gaming remained the dominant force, accounting for 71.4% of total revenue, while online gaming captured 28.6%. Although online gaming’s growth rate slowed from 44% in Q2 2023 to 32.5% in Q2 2024, it remains a substantial contributor to the industry’s overall expansion.
The brick-and-mortar casino sector saw a modest 1.8% increase year-over-year, bringing in $12.49 billion. This growth was particularly strong in the latter part of the quarter, buoyed by new property openings in states like Illinois, Nebraska, and Virginia.
Meanwhile, the sports betting sector experienced an impressive surge, with a total of $31.75 billion wagered by Americans. This activity generated $3.16 billion in revenue, marking a 35.3% increase from the previous year. New market entries in states such as Kentucky and Maine played a key role in this growth.
iGaming also saw significant gains, with revenue reaching $1.98 billion—a 26.1% year-over-year increase. Rhode Island’s market debut in March notably contributed to this upward trend.
Industry Impact and Economic Contributions
The AGA’s Commercial Gaming Revenue Tracker provides valuable insights into the financial health of the U.S. gaming industry, offering state-by-state and cumulative data based on state revenue reports. The analysis spans 37 states and the District of Columbia, all of which had operational commercial gaming markets as of Q1 2024.
As the national representative body for the U.S. casino industry, the AGA plays a vital role in shaping a favorable regulatory environment for legal, regulated gaming. With a diverse membership that includes commercial and tribal casino operators, sports betting and iGaming companies, and gaming suppliers, the AGA supports an industry that contributes $329 billion to the U.S. economy and provides 1.8 million jobs nationwide.
Conclusion: The Link Between Revenue Growth and Online Gambling
The record-breaking revenue figures in Q2 2024 highlight the critical role online gambling continues to play in the gaming industry’s overall success. As more states embrace the digital gaming space, the sector’s growth trajectory shows no signs of slowing down. Whether you’re a seasoned player or new to the scene, the ongoing expansion of legal online gambling platforms offers numerous opportunities for entertainment and potential winnings.
