Gamlinked June 2024
By Thadeus Goedfrey
Welcome back to Gamlinked, your go-to source for global gambling news. We cover everything from new online casinos and games to legislative updates and industry developments across the Atlantic, the Pacific, and beyond.
This June, the gambling world has been buzzing with major developments. We’re tracking Canada’s Senate regulatory battles, the recent illegal gambling bust in New York, and controversies over US military gambling regulations. We’re also following developments in Indonesia, South Africa’s bookie-turned-ISP, and charity funding probes in the UK. Stay tuned as we bring you the latest headlines reshaping the gambling landscape.
NZ influencer bets 10 cents per follower and wins $ 1 million
A former farrier from Taranaki, Tim Myers, known as Tim Naki on social media, turned $1,500 into $1 million through a bold online blackjack challenge.
Myers neither played at an NZ online casino nor a land based casino. Interesting, uh? So, before you ask how he did it, you must have heard you can monetise your social media following. Yes, we know you can generate income from your audience on your social channels. But we didn’t imagine it meant literally turning your followers into money.
He began by betting 10 cents for each of his Instagram followers daily. As his followers increased, so did his bet sizes, leading to a streak of seven wins out of his first ten hands. By day 50, with 320,000 followers, he was betting over $32,000 per hand. His aggressive strategy and some good luck allowed him to reach his $1 million goal on May 4 with a $115,000 gamble. That’s incredible, an unimaginable feat, not even at the best online casino.
His victory was short-lived, though. Myers experienced a series of significant losses, including consecutive $100,000+ bets, culminating in a final $195,000 loss that left him with $500,000.
In online blackjack, the house edge of each bet the house expects to win from players ranges from 0.5% to 1% even against skilled players using basic strategy. The card game is among the most popular games at top online casinos. It pits players against the dealer, and the main objective is to have a hand value closer to 21 than the dealer’s hand without exceeding it.
So, in essence, Myers was playing each of his followers, but each follower was just playing him, putting him at a considerable disadvantage. But his first winning streak helped him cushion against the later losses.
He didn’t lose, though. For starters, he had grown his account following past the one million mark. By day 91, the time he announced he was quitting, he had 1.3 million followers. He had paid off his upcoming wedding and part of the mortgage of his New Zealand farm property. On top of that, he intends to reinvest part of the profit on his content. Also, he is now a social media sensation, with people who adore and loathe him. But fame is fame, isn’t it?
Did we leave out that his $500,000 net profit run has earned him a brand partnership, merchandising, and career opportunity? He featured as an international form analyst on social media feeds for Racing South Australia.
Of course, his success wasn’t a walk in the park. He had to deal with trolls from his negative followers. Some focused more on the negative aspects of his run, while others supported him. He also had to put everything aside and the playing had also mental strain on him.
Myers emphasised the inherent risks of gambling and warned his followers not to replicate his actions. He noted the “gut-wrenching” nature of his losses, which is why it is important to promote responsible gambling.
Myers plans a new blackjack series featuring lower stakes and audience engagement. He will be sharing with his followers the proceeds, but if he loses, he will take a punishment from his audience.
“ I’ll bet Monday to Friday, and if I finish net positive, I’ll share some of the profits with the followers. And if I finish negative, they all come up with a punishment,” he told news.com.au.
Could you turn your audience into a $1 million fortune? Try your luck!
Brazil to host 2027 Fifa Women’s World Cup
Brazil will be the first-ever South American nation to host the FIFA Women’s World Cup™. The nation was selected to host the 2027 edition, the tenth in the history of the tournament, at a FIFA congress in Bangkok.
The FIFA Women’s World Cup, like the men’s edition, is held every four years. Its first edition, won by the USA against Norway in the final, was held in China in 1991. Since then, the USA has gone on to add three more titles, with Germany winning two, while Norway, Japan, and Spain winning one each.
Brazil beat the joint bid from Belgium, the Netherlands, and Germany, after garnering 119 votes against 78. Some of its strengths came from its ten stadiums that hosted the 2014 men’s World Cup. The collection includes its iconic Maracana in Rio de Janeiro. However, the Amazonia stadium in Manaus requires renovation as it is rarely used.
In Brazil women’s football is well-developed with currently, 14 of the 16 championship sides under the sponsorship of sports betting platforms. Grêmio and Real Brasília, are the only exceptions. But that shows how much sports betting could also benefit from the country hosting the World Cup.
South American women’s football will significantly benefit from this win. It could be the first time Brazil’s women’s team wins this title, something their men’s team has done five times. The women’s team has struggled, even the 2023 expansion from 24 to 32 teams in Australia and New Zealand didn’t help. They were eliminated in the group stage.
The FIFA Congress, held for the first time in Thailand, discussed other matters beyond the tournament. Palestinian FA head Jibril Rajoub called for the suspension of Israel citing violations and ongoing conflict in Gaza. The Israeli FA head Shino Moshe Zuares contested this move. On the matter, FIFA President Gianni Infantino ruled that independent legal advice would be sought before a decision is made by July 20.
Additionally, the congress approved changes to FIFA statutes, allowing for a potential relocation of its headquarters from Zurich. It also allowed expanding the number of committees from seven to 35, which critics argue could undermine previous anti-corruption reforms.
According to Front Office Sports, FIFA seeks to build on the 2023 success of the tournament, generating $570 million in revenue, to further push women’s football.
If you had to place a bet using an online sportsbook, which team would you bet on to win the 2027 FIFA Women’s World Cup?
Centralised data registry of betting games on the cards for Spain
The Dirección General de Ordenación del Juego (DGOJ) is developing a centralised data registry for betting games. GamblingNews.com reports.
This central data registry, according to Spain’s gambling regulatory body, will improve data management policies and practices. It will compile customer data from all licensed online gambling operators in Spain. It will sum up gambling activity and enhance transparency and accountability among all online casinos, including low-deposit casinos and casinos with a minimum deposit.
The initiative is part of a raft of changes mandated by the General Assembly over a year ago. The changes are meant to encourage a Responsible Gaming Environment.
DGOJ’s General Director, Mikel Arana, emphasised the benefits of the registry.
“The data registry will increase transparency and accountability of gambling activities,” he said. “It will provide a framework to monitor and ensure compliance with the highest standards of responsible gambling.”
The registry will help DGOJ monitor gambling activities and customer engagement more effectively.
Because it’s no longer a secret, online gambling is here with us to stay. But if left unchecked, online casinos can be addictive, often harming users’ mental health. Monitoring these activities will help mitigate these negative effects and protect vulnerable individuals. As always, there must be a balance between the thrill of online casinos and the well-being of their users.
Consultations with stakeholders, including operators, are the next step in the process. DGOJ aims to finalise the implementation plan by the end of the year. The registry is expected to be operational at the beginning of 2025.
There’s a discussion on data integration between public administrations and reporting on gaming activity. Operators will have to establish risk profiles for customers under 25 years old.
What do you think about the DGOJ’s new registry initiative? Will it effectively promote responsible gambling and enhance transparency?
Hollywood Bets makes headlines in South Africa after announcing new internet service
Hollywoodbets South Africa, has ventured into South Africa’s telecommunications sector. It has launched an Internet service provider (ISP) named Hollywood Connect. It is asking the country’s telecom regulator, the Independent Communications Authority of South Africa (ICASA), for two network licences.
The ICASA says the firm has asked for two highly sought-after and notoriously difficult to secure service licences. The first one is the Individual Electronic Communications Service (I-ECS). The second one is Individual Electronic Communications Network Service (I-ECNS) licences.
Currently, Hollywood Connect’s services are available only in Durban. But the acquisition of these licences indicates plans for nationwide expansion.
An I-ECS licence permits Hollywoodbets to provide Internet services. But the other one, the I-ECNS licence, allows it to build and run its own physical network. The bookie will build networks and offer Internet services across the entire country. Otherwise, it would have gone for a class licence, which only allows services within a local area or district. So, this is a significant strategic move to diversify its investment.
As the law dictates, ICASA has published this application notice in the Government Gazette. The Border Gateway Protocol query reveals the advertisement of 2,042 IP addresses assigned to Hollywoodbets. So, Hollywoodbets has already started to build its network.
What do you think about betting companies like Hollywoodbets going into the internet service provider market – hit or miss?
Senators in Canada consider new Bill for sports betting advertising
The Canadian Senate is living up to the house’s name, a beacon of wisdom and oversight. It’s emerging that the house is rethinking the sports betting advertising law, thanks to Bill S-269, by Senator Marty Deacon.
A ban on athletes and celebrities in online gambling ads in Ontario is now in effect as announced by the Alcohol and Gaming Commission of Ontario (AGCO) last summer. The ban aims to protect children and youth from such advertising. As of February 28, no active or retired athletes, celebrities, role models, social media influencers, or entertainers were allowed to feature in such commercials. Ontario argued that these figures appealed to minors. However, these figures could still appear on responsible gambling ads.
On June 3rd, the Standing Senate Committee on Transport and Communications held the first of its two scheduled hearings of the bill. The bill discusses the National Framework on Advertising for Sports Betting Act.
Senator Deacon highlighted the need for this framework to regulate sports betting advertising. This framework would limit the number and timing of ads. It would also restrict the use of athletes and celebrities to promote betting. That would address concerns about exposing minors and individuals prone to addiction.
Deacon argued against Ontario’s online casino regulations that still allow athletes to promote responsible gambling. She says by associating these figures with betting brands, the law encourages gambling. That reminds us about the involvement of Hockey star Connor McDavid in promoting responsible gaming for BetMGM.
On his part, Quebec Senator Leo Housakos, says he had mixed feelings about supporting the sports betting bill. He noted concerns among lawmakers on the social implications of widespread gambling advertising. He currently chairs the committee.
Saskatchewan Senator Brent Cotter added to his sentiments. He says he’s worried betting could sweep away the intrinsic value of sports. According to him, many now view sports as only an avenue for betting. He is the chair of the Standing Senate Committee on Legal and Constitutional Affairs and his inputs are equally helpful.
In Canada, regulating commercial gambling typically falls under provincial jurisdiction. But Deacon’s bill seeks to create a unified standard among provincial governments. His guiding principles for advertising and addiction prevention could be helpful. But his bill is far away from becoming law. It has to go through various legislative stages and gain broader political support if it’s to become law.
The debate continues as the Senate’s transport and communications committee plans further discussions. It expects input from Canadian lottery corporations and mental health organisations. Members will also reflect on the complex nature of regulating sports betting advertisements.
Isn’t that what the upper house is supposed to do? Be the sieve to review laws passed by the lower house for a balanced and thorough approach to lawmaking.
Illicit gambling bust: Mob family linked to illegal operation
New York authorities have indicted 17 people allegedly linked to the infamous Gambino crime family. Thao Nguyen of USA TODAY reports the state accused them of running illegal gambling and loan sharking rings on Staten Island. The swoop recovered over $22.7 million in illicit bets and approximately $500,000 in high-interest loans.
The indictment includes many charges such as enterprise corruption, first and second-degree criminal usury, and first-degree promoting illegal gambling.
“Illegal gambling and loansharking schemes are some of the oldest rackets in the mob’s playbook,” said Attorney General Letitia James. “While organised crime may still be active in New York, today we are putting several Gambino family members out of business.”
She emphasised the significant financial impact these operations had on New Yorkers. Many of whom she says were trapped in dangerous amounts of debt due to these activities.
Key figures in the indictment include John Laforte, 56, and Edward LaForte, 58, who allegedly oversaw the gambling website operations. He managed bets and collections through several “sheetholders.” Together with Frederick Falcone Sr., 66, LaForte also led the loan sharking operations. Interestingly, Falcone is a former member of NYPD. They maintained detailed ledgers of victims’ names and their respective usurious amounts.
There’s also Amy McLaughlin, who organised the gambling ring. keeping detailed records of figures and distributing proceeds. Others include Anthony Cinque Jr., 39, John Matera, 53, Giulio Pomponio, 61, and Daniel Bogan, 41.
The operation, headed by the NYPD, brought together the New York Waterfront Commission and the US Department of Labor Office of Inspector General. They used wiretaps, bugs, and covert video cameras. They also employed warrants to search an offshore illegal gambling website and defendants’ homes.
The traditional casinos let criminals convert physical “dirty” cash into chips and later into cash as legit wins. Today, they use online gambling. The new approach poses different money laundering risks due to increased anonymity. But the authorities had it all figured out.
New York Waterfront commissioner, Paul Weinstein, said the burst is a stark reminder that organised crime continues to thrive in the New York metropolitan area.
“Disruption of profits from illegal gambling and loansharking weakens that family’s grip,” he remarked.
Let’s face it, as long as New York clings to a hardline stance against US Real Money online casinos, illegal gambling will flourish. Online casinos, when regulated properly, can effectively combat criminal networks like the Gambino family. There are casinos with a minimum deposit that offer top-rated services and abide by responsible gambling principles. Unfortunately, currently, only online sports betting is legal in the state.
Indonesian govt meets with Google to find ways of removing internet gambling
Indonesia is determined to weed out internet gambling. In a new onslaught in its fight against the vice, Communication and Informatics Minister Budi Arie Setiadi met with Google representatives.
A news report by ANTARA indicates the meeting happened on June 4. The focus was on how AI can accelerate the identification and handling of online gambling content.
Indonesia has intensified its efforts against online gambling, with President Joko Widodo committing to eradicating the practice and forming a special task force.
The government is looking for ways to quickly and accurately identify online gambling activities. The human efforts alone, apparently, have not yielded much.
Minister Setiadi was quick to defend the decision to implement AI.
“Processing online gambling content reports can be faster with help from AI,” he said.
He emphasised the implementation is still in the testing phase. However, when it eventually rolls out, it will be within the good governance framework. Despite potential privacy concerns regarding Google’s involvement, he expressed confidence in its benefits.
The minister sees Google’s participation in this initiative as a huge step in supporting the government.
The whole script is in line with the broader government effort to curb gambling in the digital space. President Widodo recently reassigned a task force to dismantle the online gambling ecosystem. The team is led by the Coordinating Minister for Politics, Law, and Security Affairs Hadi Tjahjanto.
So far, the country has shut down over 2.1 million online casino sites. Still, online gambling persists, affecting over 3 million Indonesians. It’s causing significant social and economic harm. The president highlighted some of these problems. They included bankruptcy, divorce, and violence. He urged citizens to use their assets for legal purposes, emphasising that gambling risks the future of families.
Well, we never imagined how far Joko Widodo’s government was willing to go in its fight against online gambling. The collaboration with Google marks a proactive approach to the fight.
But maybe Indonesia should learn a thing or two from US states that have refused to legalise online gambling. This fight, while it aims to protect the public, might only result in a pyrrhic victory. You kill online gambling, you create another monster, illicit gambling dens. These are even more dangerous than online casinos. My thinking, though. What’s your take?
US lawmakers consider banning slot machines on military bases
Slot machines in bases could lead to gambling addiction. That’s the position taken by Rep. Paul Tonko, D-N.Y. He has, therefore, filed an amendment to the National Defense Authorization Act (NDAA). This proposal would prohibit the military from operating slot machines on bases. But before you take a position on this, what are slots doing in bases?
Let’s first understand the story. In 1952, the US banned slot machines on military bases. They removed them from the bases, including their overseas bases. But soldiers would go out of the camp and indulge, sometimes causing trouble. So, they brought them back after 1970. The intention was to keep service members away from trouble off base.
Statistics from the National Council on Problem Gambling show that more than 3,000 slot machines are in military bases overseas. Most of them are in more remote military installations where entertainment is otherwise to come by. So, servicemen can have a place to enjoy some downtime. They are actually operated by the U.S. DoD through specific military MWR (Morale, Welfare, and Recreation) groups.
But with easy access to gaming, gaming addiction is a serious problem in the American Armed Forces. So the prospect of such game rooms has raised serious questions on the morality of it all.
On this new law, the Pentagon has said while slots help fund other recreational activities, they contribute to gambling among service members.
Currently, slot machines are present on overseas military bases and bring in over $100 million annually. DoD channels this revenue to various recreational programs, like golf courses and youth centres.
A 2017 Government Accountability Office (GAO) report highlighted the widespread presence of these machines in 12 countries. They are predominantly common in Japan, South Korea, and German US bases.
Tonko’s amendment is among over 1,300 proposed for the NDAA, with only a few hundred typically making it to a vote.
“We must do all we can to support them by confronting the problem of gambling head-on, “said Tonko.
Active-duty service members and veterans are more than twice as likely to suffer problem gambling compared to civilians. That’s according to the 2021 study by Rutgers University. The National Council on Problem Gambling estimates that about 56,000 service members are affected.
The Pentagon has often asserted that slot machines do not significantly affect troops. It doesn’t affect their morale or finances, save for only a few isolated incidents. But Congress took no chances. It mandated the inclusion of gambling disorder questions in annual health screenings for service members since the 2018 NDAA.
Tonko has previously introduced legislation to ban online sports gambling advertisements. He argues that gambling disorder should be treated as seriously as other addictions like heroin, tobacco, and alcohol.
“Worryingly, studies show that military members are more likely to develop gambling disorder,” he argued.
But can removing slot machines from bases reduce gambling addiction among military personnel?
GambleAware in hot water after complaints relate to funding from the gambling industry
The Charity Commission has launched a regulatory compliance case into GambleAware. This follows the complaints about its funding practices.
Campaigners, led by the Good Law Project (GLP), have raised concerns that GambleAware receives donations from the gambling industry. They argued that this action compromised its impartiality in serving its purpose.
The Charity Commission says they are in discussions with GambleAware’s trustees. GLP had threatened legal action if the Commission did not investigate GambleAware’s violation of charity law.
GambleAware’s CEO, Zoë Osmond has vehemently denied the allegations. She described them as “baseless and highly damaging.”
Zoë Osmond maintained that GambleAware is independent from the gambling industry. She called for stricter gambling regulations and a statutory funding system for accountability.
GambleAware did not directly address the Charity Commission in this regulatory compliance case. However, earlier statements from the charity criticised GLP’s complaint, terming it as misleading and based on outdated information.
According to GambleAware’s website, the organisation requests that all players who profit from gambling, regardless of whether they hold a Gambling Commission licence, contribute at least 0.1% of their annual Gross Gambling Yield (GGY) directly to GambleAware. But this is in line with the law that requires licensees to provide an annual financial contribution to one or more organisations that research preventing and treating gambling-related harms as approved by the Gambling Commission.
This ongoing scrutiny and debate surrounding the funding of independence of organisations is an eye-opener. While the concern could be potentially damaging, the organisation must be clear on its funding sources. GambleAware plays a crucial role in addressing gambling-related harm within the UK. It would be disheartening if those activities are nothing but a charade.
As these developments continue to unfold, there’s no doubt that the gambling landscape, particularly regulation, remains fragile. We keep our heads abreast and stay tuned for further updates on how these stories evolve and their broader implications in the future. It’s a wrap-up for this edition. Until next time, may your bets be wise and your luck be favourable.
More Gamlinked articles
