BetMGM fined, North Carolina eyes new tax

Welcome to the Weekend Report, where iGB delves into the key developments in the gambling industry from the past week. This edition covers significant penalties imposed on BetMGM in Pennsylvania for self-exclusion violations, proposed changes to North Carolina’s sports betting tax policy, and a historic partnership formed between EveryMatrix and Norsk Tipping.

This week, BetMGM has incurred a fine of $260,905 (£212,364/€254,701) from the Pennsylvania Gaming Control Board (PGCB) due to violations of self-exclusion protocols. The investigation revealed that BetMGM permitted 148 self-excluded individuals to engage in online betting activities, as reported by PlayPennsylvania.com.

These self-excluded accounts resulted in $252,035 being deposited and $82,460 withdrawn.
Moreover, an analysis identified four further incidents involving self-excluded individuals from 2021 to 2022, where the aggregated deposits reached $436,381 and withdrawals totaled $175,477.

Consequently, the total liability resulting from these breaches is calculated at $260,904, leading to this significant regulatory fine, which ranks as the fourth highest in Pennsylvania’s history. In addition to the fine, BetMGM has committed to a $20,000 donation to the Pennsylvania Council on Problem Gambling, further highlighting the industry’s responsibility towards responsible gaming.

In legislative movements, North Carolina has introduced a new bill that could reshape its approach to sports betting taxation. This proposed legislation allows players to deduct gambling losses from their winnings for state income tax purposes. WRAL News highlights that if approved, players must still report winnings as taxable income, even when losses exceed those winnings.

Example: A player winning $10,000 but losing $11,000 would still owe taxes on the $10,000.
The bill is intended to apply solely to those taxpayers who itemize their deductions, while allowing no more write-offs than the amount won.

Since the legalization of sports betting in March last year, this reform marks the first tax season impacting bettors. If the bill passes, the new regulations would take effect in the 2024 tax year, signaling a pivotal shift in the state’s gambling legislative landscape.

In a noteworthy achievement, Kambi has received approval for its gaming license application from the Nevada Gaming Commission. This endorsement comes following a unanimous recommendation from the Nevada Gaming Control Board last month, solidifying Kambi’s position as a key player in the sportsbook technology sector.

This license allows Kambi to offer its industry-leading sportsbook technology and services across non-restricted gaming establishments in Nevada for the first time.

Werner Becher, CEO of Kambi, remarked, “Securing approval for our licenses in Nevada is an important milestone for Kambi and a testament to our market-leading technology, regulatory expertise, and corporate integrity.” This advancement reflects Kambi’s robust growth strategy and industry reputation.

In Canada, the Alberta government has made the controversial decision to withdraw funding from the Problem Gambling Resources Network, an organization dedicated to educating the public and providing resources for gambling addiction. This funding has been critical since its inception in 1993, as emphasized by executive director Ray Reshke, who stated, “We’re not counsellors, but we do direct people to resources for help like Gamblers Anonymous or Alberta Health Services.”

This decision coincides with ongoing discussions in Alberta regarding the potential legalization of private online gambling operators, similar to frameworks established in Ontario. Currently, Play Alberta remains the only licensed online gambling platform in the province.

Finally, EveryMatrix has successfully navigated a competitive public procurement process to secure a landmark partnership with Norsk Tipping, Norway’s state-owned lottery and gaming operator. Under the terms of this expansive agreement, EveryMatrix will provide an extensive array of both in-house and aggregated gaming content, along with tailored casual games development.

The deal, dubbed the largest SlotMatrix agreement to date, encompasses the provision of an array of third-party online casino content and in-house titles.
Additionally, EveryMatrix Games will contribute to Norsk Tipping’s Yezz range of casual games.

Ebbe Groes, CEO and co-founder of EveryMatrix, expressed his enthusiasm: “I’m delighted Norsk Tipping, one of our most valued partners, has chosen to continue to put their trust in us after almost 10 years of collaboration. We look forward to even more years of partnership.” This collaboration exemplifies the evolving dynamics between technology providers and state-operated gaming entities.

Stay tuned for more insights and analyses in next week’s Weekend Report, where we continue to bring you the latest and most impactful developments within the gambling industry.