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PASPA – Five years on – did any initial predictions come true or not?

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With the fifth anniversary of the PASPA repeal on May 14th, we caught up with Compliable’s Chief Regulatory Officer, Justin Stempeck, who examines what was predicted in May 2018 and how accurate those initial guesses have proved to be.

“National regulation on sports betting”

When PASPA was overturned, the Supreme Court explicitly placed the power to regulate gaming in the hands of the states. It would be extraordinarily unlikely for our highest court to conclude that betting is not a federal issue, then have legislators introduce another national law, yet there were calls for this strategy from numerous stakeholders in 2018.

While the different approaches of each state were less than ideal, the industry was able to adapt and continue to advance in each new jurisdiction that has legalized.

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Despite the ‘patchwork quilt’ aspect of regulation there are far more commonalities than differences. Regulators have made some efforts to avoid reinventing the wheel, but it would be great to see wider momentum. As a former regulator, I understand that each state has its own unique pressures and competing interests to juggle, but ultimately, a push towards uniformity will be a success for everyone in the absence of national regulation of the sector.

“National Collegiate Athletic Association’s sports integrity concerns”

Betting on collegiate sports has always occurred but it took place offshore and in illegal markets before the repeal of PASPA. The expansion of sports betting includes official regulation, taxation and supervision of the activity, which can only be a good thing. A number of regulated entities are now actively ensuring there are no discrepancies in game performance and there is a vested interest in guaranteeing that everything is above board. With some states today allowing betting on collegiate sports, people have become more comfortable with the idea.

The NCAA continues to officially oppose sports betting, yet appointed former Massachusetts governor, Charlie Baker as its president this past March. Notably, Governor Baker was a proponent of legalized sports betting in Massachusetts and ultimately signed it into law.  The combination of a sports betting friendly president and a lack of major integrity scandals since legalization may shift their official stance in the future.

“Increased risk of match-fixing”

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As of yet, there have been no high-profile match-fixing scandals despite the existential threat and this is in large a testament to the leagues’ enforcement of its own integrity as well as the plethora of third-party monitoring services now available.

A match-fixing scandal would have a significant impact on the industry as a lot of bettors would likely be lost due to a lack of trust. With sports, the thrill and excitement lie in the possibility that anything can happen and underdogs can become winners, if that narrative is shown to be fiction, the reputational damage would be sizeable. The ripple effect of such an event would carry on for years as critics of sports betting could use a match-fixing scandal to argue against legalization.

“Responsible Gambling – a negative impact”

The expansion of betting and gaming is naturally going to lead to an increase in problem gaming. There is still a lot of data to collect and synthesize, particularly given that many regulated jurisdictions have only been up and running between one and three years.

Operators have started to take a focused view of responsible gaming and have dedicated internal teams, as well as funding research. Failure here is another existential threat to the industry and a big scandal could do a huge amount of damage to a nascent industry.

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I see responsible gambling being a cutting-edge issue as it is so critically important so it will only become more and more relevant moving forward.

“32 states to enact sports-gambling legislation by the end of 2023”

This was a very accurate prediction as gambling is now legal in 35 states. Expansion has slowed down a bit compared with the great momentum we saw between 2018-2020, but we will see additional states roll out legislation in the short term. Some states will never legalize of course, but eventually, we will have 80-90% of the US allowing sports betting.

California, Texas and Florida are the three remaining big states that everyone is now eagerly waiting for, offering huge potential due to their respective market size.

“International betting operators prohibited free access to the US”

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No rules or regulations have been implemented to specifically keep out remote operators or benefit local ones except those operating in black or grey markets. The US has been an open market for operators from Europe, but I have spoken to many companies who are finding the different rules across the regulated states extremely confusing and resource draining. The US is the equivalent of 50 countries and there is very little federal law that applies to gambling, making it difficult to operate if you are not a company with a dedicated compliance team or efficient tools to fill that need.

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AGCO Removes Cap on Seller Commission for Charitable Lottery Products

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The Alcohol and Gaming Commission of Ontario (AGCO) has updated several lottery policies to remove the cap on seller commission for Paper Raffles and Media Bingo, along with removing the prohibition on Catch the Ace paper lotteries, to align with other charitable lottery products.

Licensed charities may now negotiate commissions directly with sellers and determine commissions, provided they are reasonable and tied to the cost of service provided by the seller.

These updates further the AGCO’s commitment to adopt an outcomes-based regulatory approach and reduce burden for the charitable gaming sector. Local charitable organizations will have greater flexibility to make decisions that best serve their fundraising objectives.

Important Reminders

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• Charities must still receive approval for other expenses incurred under their licence and retain receipts for seller commission paid.

• Licensing authorities will not require documentation to be submitted as part of the application process, however, charities are still subject to audit to determine compliance.

• Charities are reminded of their legal requirement to meet their obligations under the Criminal Code and with respect to conducting and managing a charitable gaming scheme.

• As with all licensed charitable lottery events, charities must take the necessary steps to ensure that they are conducting and managing the lottery event within Ontario.

For charitable gaming-related inquiries, email an AGCO Eligibility Officer at [email protected] or call AGCO Customer Service at 1-800-522-2876, Monday to Friday from 8:30 a.m. to 5 p.m.

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Alon Segev

Segev LLP Celebrates 10 Years of Business-Focused Legal Innovation

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Leading business, technology, finance, and gaming law firm, Segev LLP, is proud to announce its 10th anniversary. Over the past decade, Segev has evolved from a bold idea into a multi-jurisdictional firm serving clients across Canada, the U.S., and beyond.

Built for innovation-driven industries, the firm is widely recognized for its work with companies at the forefront of gaming, crypto, technology, and emerging sectors. “Our 10-year anniversary is a defining moment,” said Founding Partner, Ron Segev. “It’s a testament to the strength of our team and our culture of teamwork, self-improvement, and growthall of which is directed at scoring wins for our great clients.”

As industries like fintech, crypto, iGaming, and AI have matured, so has the firm, often in parallel with its clients. “We’ve all grown together with our clients from one success to the next, whether it be helping clients complete financings or helping them close business,” said Managing Partner Alon Segev. “I look forward to continued growth for us and our clients in the next 10 years!”

The firm’s client-first approach has consistently earned recognition from top legal ranking guides. Segev LLP is ranked by Chambers and Partners as a “Leading Firm” and “Band-1” in Canada for Gaming Law and are also recommended by The Legal 500 and Lexology. These rankings reflect the team’s ability to deliver strategic, high-quality legal solutions that align with their clients’ business goals.

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Recognized for their unique ability to exceed expectations and deliver out-of-the-box solutions, Segev LLP’s clients have affirmed: “The firm demonstrates its capability not only to understand complex matters, but also to offer solutions that are practical, pragmatic, and value-adding.”

“Segev possesses outstanding resources and maintains global partnerships, enabling it to deliver precise and informed responses to any queries related to the iGaming industry.”

“Epic service, very good, I won the case!”

“Great service, friendly atmosphere, and support.”

Several Segev team members also reflected on the milestone: “There was a moment early in my time here when I realized I wasn’t just being brought in to help; I was expected to contribute, take initiative, and run with big ideas. That stuck with me,” said Negin Alavi.

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“Together with our clients, [Segev] has experienced remarkable growth over the past decade. I’m honored to have contributed to this journey and to celebrate these shared successes,” said David McHugh.

Segev has cultivated a thriving law practice on the principle that challenges are to be embraced as opportunities. The approach has enabled us to grow as lawyers, but more importantly, it has enabled us to ensure the success of our clients,” said Mark Balestra.

“Since joining through Segev’s Ontario expansion, I’ve had the chance to work alongside some of the sharpest and most collaborative lawyers in the gaming space,” added Manav Bhargava. “As a full-service firm and industry leader, Segev stands out for its ability to support innovative businesses with practical, forward-thinking legal advice.”

Segev LLP will commemorate the anniversary with a series of internal and external initiatives throughout the remainder of the year.

The post Segev LLP Celebrates 10 Years of Business-Focused Legal Innovation appeared first on Gaming and Gambling Industry in the Americas.

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INCENTIVE GAMES SECURES ONTARIO GAMING LICENSE

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Incentive Games, a leading B2B games provider, is proud to announce that it has been awarded an Ontario Gaming License by the Alcohol and Gaming Commission of Ontario (AGCO), effective today. This achievement enables the company to offer its portfolio of real-money games to licensed operators and players across the province.

The license underscores the Incentive Games’ commitment to meeting the highest standards of compliance, security, and operational excellence. The rigorous application process demands robust security protocols and comprehensive responsible gaming measures and affirms the company’s readiness to enter one of Canada’s most dynamic iGaming markets.

The North American market is a strategic focus for Incentive Games, and this milestone follows closely on the heels of the company receiving its Provisional Michigan gaming licence from the Michigan Gaming Control Board earlier this month.

Incentive Games will distribute its real-money gaming content in Ontario through Incentive Studios, the company’s dedicated Real-Money Gaming division, ensuring a focused and tailored approach to the market.

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“Ontario represents a huge opportunity for us, and securing this license is a proud moment for the whole team,” said John Gordon, Chief Executive Officer at Incentive Games. “It reinforces our dedication to meeting the highest standards while delivering compelling real-money content. We’re looking forward to building strong relationships in the region and continuing our momentum across regulated markets worldwide.”

The post INCENTIVE GAMES SECURES ONTARIO GAMING LICENSE appeared first on Gaming and Gambling Industry in the Americas.

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