55 PUBLIC GAMING INTERNATIONAL • JULY/AUGUST 2024 Online-gambling firms FanDuel and BetMGM are not offering in the United States some of the safeguards they have implemented in the United Kingdom according to Reuters report. The two companies — FanDuel is owned by Irish company Flutter and BetMGM is jointly owned by British company Entain and MGM Resorts International — are leading competitors in the U.S. online gambling market. In the U.K., both companies have placed limits on VIP programs that cater to their most active customers. However, in the U.S., both companies placed job ads in recent months that said that VIP account managers would be expected to increase player activity and drive revenue, according to the report. Another difference has to do with protections for customers who are under the age of 25. Flutter places net deposit limits on these customers in the U.K. and Ireland, but has no such limits for those under 25 in the U.S., the report said. In addition, in the U.K., both companies monitor customers’ affordability of bets and intervene when they spot signs of a gambling problem. In the U.S., in contrast, the companies use voluntary measures that require the customer to take action, per the report. In 2018, British regulators sanctioned the UK arm of online gambling, requiring Flutter to pay about $2.8 million for not protecting customers from obviously uncontrolled gambling and not stopping the use of stolen money. Flutter’s Chief Executive Peter Jackson publicly apologized for failing to intervene, saying the company had a responsibility to do so “when our customers show signs of problem gambling.” “There’s a very fine line between VIPs and someone with a gambling problem.” Josh Giaramita Former BETMGM VIP Manager As in the UK, American VIP clients typically aren’t the limousine-driven high roller depicted in Hollywood movies, according to industry insiders, who say such individuals are usually much more modest earners. For sports betting, they were people who, on average, made wagers worth $5,000 to $10,000 per month and lost a minimum of $1,000 per month, according to an ex-BetMGM VIP manager, who asked not to be identified because he still works in the industry. He said his aim wasn’t to encourage VIP clients to bet more than they could afford to lose, but he acknowledged his team had revenue targets. European companies behind FanDuel and BetMGM are using features in America that they dropped in Britain after acknowledging them as risks to gamblers Maximizing loyalty with CRM: Leveraging gamification and AI strategies Google To Allow Lottery Courier And Fantasy Sports Ads In Many States Google has announced a new update to its advertising policies, allowing ads for lottery couriers and daily fantasy sports (DFS) in numerous states across the U.S. starting July 15. This policy shift reflects the growing acceptance and regulation of online gaming and lottery services within the country. However, the change comes with strict guidelines and requirements for advertisers to ensure compliance with state laws and Google’s own certification standards. Advertisers looking to promote lottery courier and DFS services on Google Ads will need to undergo a certification process. This is mandatory, regardless of the state in which the ads will be targeted. Google’s new lottery courier policy will apply to Alaska, Arkansas, Colorado, District of Columbia, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Vermont, West Virginia, and Wyoming. These advertisers must demonstrate that they are fully licensed to operate in at least one U.S. state that requires a license for such services, even if they intend to target ads in states that do not have such licensing requirements. This measure is designed to uphold a standard of legitimacy and ensure that only reputable services can advertise through Google’s platform. Despite the convenience and growing popularity of lottery courier services, they are not universally accepted across the U.S. Some states, like California, have expressly prohibited the operation of lottery courier services within their jurisdiction. The West Virginia Lottery sent a cease-and-desist letter to Bovada, an unregulated online casino and sportsbook based outside the US The West Virginia Lottery, which oversees West Virginia online casinos and sports betting, has made it clear that Bovada, an unregulated online casino and sportsbook based outside of the United States, is not welcome in the Mountaineer State. The lottery sent a cease-and-desist letter to the operator late last month, according to Legal Sports Report, telling Bovada to either stop allowing those located in West Virginia to gamble or face legal action. West Virginia is one of several states that have taken an active approach to shutting down unregulated online gaming within its borders. Bovada faced a similar situation in Michigan and chose to stop its operations there. Offshore online casinos and sportsbooks generate an estimated $500 billion a year in bets. Bovada will likely agree to stop setting up new accounts and accepting bets from customers within West Virginia’s borders. The offshore online casino and sportsbook faced a similar situation in Michigan and agreed to leave the Wolverine State. Connecticut and Colorado have also sent cease-and-desist letters to Bovada. The offshore site agreed to stop doing business in Colorado. We should see the same thing happen in Connecticut, too. In addition to Colorado and Michigan, Bovada is no longer available in Delaware, Maryland, Nevada, New Jersey and New York. The issue of offshore operators affects states, their residents, and visitors. Their impact comes down to two main areas: tax revenue and consumer safety. Because offshore sites are unregulated, they don’t pay taxes on the revenue they generate in West Virginia. All regulated casinos operating in the state must pay a 15% tax on their revenue. The state sends that tax revenue to key state programs for schools and education, senior citizens, tourism, and state parks. When illegal online casinos take deposits and bets fromWest Virginians, state programs miss out on valuable revenue. But it’s not just state programs that lose out. Because Bovada’s online casino is unregulated, it can refuse to pay out online casino winnings without any consequences. Whereas regulated US online casinos would face penalties for such a move, Bovada wouldn’t. Michigan Gaming Control Board attempting to parse legal and illegal igaming market activity A new six-page, six-question attestation form issued by the Michigan Gaming Control Board in late April has left some licensed iGaming and sports betting suppliers in a lurch, unsure how to respond to the open-ended inquiry that the board itself has revealed is more about “information gathering” at this point. The “Illegal Gaming Attestation Internet Game Content Providers” form may be well-intentioned to stamp out support for illegal actors siphoning business and taxable revenue fromMichigan’s legal market, but it has numerous stakeholders concerned, owing to their relationships and involvement in areas where the legality or illegality of iGaming is not cut-and-dried. Those operating globally are especially alarmed by some unclear questions and undefined terms and believe unintended consequences may follow from the Michigan regulators’ methods. “The form does not define every single relevant term, such as what constitutes ‘illegal gambling,’” said gaming lawyer Susan Hensel of Hensel Grad P.C., who has served on both the Pennsylvania Gaming Control Board as the director of licensing and on the International Association of Gaming Regulators. “The language requires some interpretation, and it may make sense for companies with questions to go to the regulator and seek clarification. Normally this type of inquiry is done through the interviews of key executives as part of the overall background investigation. This
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