Gaming Report: AIGF Seeks Inclusion of Online Gaming Regulation in BJP & Congress Manifestos, Former Cricket Coach Tushar Arothe Arrested For Sports Betting & More

Gaming Report: AIGF Seeks Inclusion of Online Gaming Regulation In BJP & Congress Manifestos, Former Cricket Coach Tushar Arothe Arrested for Betting & More
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  • Namita Ghosh April 4, 2019
  • 4 Minutes Read

The past few days have brought on significant developments & controversies from the gaming world. The All India Gaming Federation (AIGF) recently wrote to the country’s two national political parties, the Bharatiya Janta Party (BJP) and the Congress requesting that they include in their party manifestos, a clause assuring legalization and regulation of online gaming and sports betting.

Unfortunately, the AIGF’s demand seems to have fallen on deaf ears at least as far as Congress is concerned. In their manifesto that was released on April 2, the chief opposition party has given sports betting and online gaming a skip. Clearly, in a country where populist issues take center stage, the question of legalization of online gaming ranks low on the political priority list. Looking at how manifestos have often been used as political weapons to entice the vote bank, it seems unlikely that the issue will be given much priority by the ruling BJP as well.

Sending shockwaves was news of Tushar Arothe’s arrest. Arothe who is former India women’s cricket team coach was among a group of 19 people who were apprehended in Vadodara earlier this week for allegedly aiding and abetting in illegal betting on an Indian Premier League (IPL) cricket match. Arothe has denied the charges, even while police investigations are currently underway.

Myanmar meanwhile is finally on the verge of legalizing casinos under its new gambling law. At the same time, the Governor of Buenos Aires, María Eugenia Vidal signed Decree 181 on April 1 legalizing online gambling in the Argentinian province.

The government of Singapore has granted permission to two integrated resorts (IR), namely the Marina Bay Sands and the Resorts World Sentosa, to expand their premises in a big way. At the same time, it has hiked the casino entry fee by 50% for both establishments.

Back in the U.S., Senator from Louisiana, Republican Danny Martiny has pre-filed the sports betting bill SB 153 ahead of the start of the legislative session.

AIGF Seeks Inclusion of Legal & Regulated Gaming in BJP & Congress Manifestos

Making a fresh bid to canvass for legal and regulated online gaming and sports betting, the All India Gaming Federation (AIGF) recently wrote to the manifesto committees of two big political parties of the country, the Bhartiya Janata Party (BJP) and the Congress. The leading gaming lobby group sought that the BJP and Congress should include the issues in their manifesto for the upcoming Lok Sabha elections.

AIGF

According to a Glaws report, in the written communication, CEO of AIFG, Ronald Landers said, “It is commendable that the two main political parties have looked at inclusiveness and suggestions from people across the country in their manifestos. We wanted to highlight this critical issue of regulation in the online gaming industry, that has long been ignored but is the need of the hour and hence have sent our suggestions to the respective committees highlighting the benefits that will accrue to all stakeholders.”

Landers highlighted the vast potential that the online gaming industry holds in generating revenue, creating jobs and ensuring responsible gaming. He added that the AIGF had come forth with the suggestion since both the parties had invited suggestions from the public on issues that can be included in their manifestos for the upcoming Lok Sabha elections.

The AIGF also pointed out that legalizing online gaming would drastically reduce illegal activities like money laundering and match-fixing. Even the 276th report of the Law Commission of India recommends and underlines the fact that regulation of betting and gambling is the only viable option before the government, in case a complete ban on the activities cannot be achieved, the AIGF added.

The issue of legalization of online gaming and sports betting was last raised in the country’s political circle when Lok Sabha MP and Congress leader Shashi Tharoor had introduced a private member’s bill – the Online Gaming and Prevention of Fraud Bill in the Parliament to regulate sports betting.

Given Tharoor’s initiative, Congress seemed the gaming industry’s best political bet in terms of giving the online gaming industry its much-needed legal backbone to operate from. But it appears that the Landers-led AIGF `s endeavor has failed to catch the attention of the party. The Congress released its manifesto titled ‘Hum Nibhayenge’ on April 2, and there’s no mention of online gaming, online gambling or sports betting in the assurances listed.

The BJP is also expected to come out with its manifesto over the next few days, but looking at the tepid response from Congress, chances for the ruling party to acknowledge the demands have dimmed.

 

Former Cricket Coach Tushar Arothe Arrested For Illegal Betting

Cricket, the biggest and the most popular sport in the Indian subcontinent has often been marred by the controversies over alleged match-fixing and illegal betting. In the wake of the ongoing Indian Premier League (IPL) comes fresh news of arrests over alleged and illegal betting. This time it is former coach of Indian Women’s Cricket team and former RanjiTrophy player Tushar Arothe in the spotlight.

Tushar Arothe
Tushar Arothe

Arothe was among a group of 19 people who were arrested by a Crime Branch police team from a local café located in Alkapuri area of Vadodara on Monday night. According to the police, the IPL match was being televised and bets being placed on an IPL match between Delhi Capitals and Kings XI Punjab.

News of Arothe’s arrest flashed across major news and media channels across TV, print and social media.

Deputy Commissioner of Police (DCP) Crime Branch Jaydeepsinh Jadeja is quoted to have said, “We had received a tip-off about the betting activities at the Cafe Stock Exchange in Alkapuri where a big screen was placed to relay IPL matches. We kept a watch there and conducted a raid on Monday night. Some persons sitting in a shed next to the cafe were involved in online betting on the IPL match.”

Tushar Arothe is one of the accused as he is one of the owners of the cafe and has been accused of providing space. Whether he was actively involved or not in the betting is still under investigation. But he was present on the premises when the raids were conducted.

52-year old Arothe has coached the Baroda state team in the Ranji Trophy. He coached the Indian women’s cricket team from April 2017 to June 2018. During this short stint, he guided the team to the World Cup finals in 2017, and to the finals of the Asia Cup in 2018. Jadeja’s statement leaves no doubt that Arothe is not only part-owner of the café, but he was also present on the crime scene when the raid was conducted. Arothe’s two partners Hemang Patel and Nishchal Mitha were also apprehended. Arothe’s son Rishi is also a partner at the café, but he wasn’t present in the premises at the time of the arrests.

Arothe has in his statement to the Times of India, denied the betting allegations. “I had reached at the cafe just 20 minutes before the cops came in. I am not at all involved in any kind of betting. The police checked my mobile phone and didn’t find any betting app in it.”

He added, “I don’t know why I was arrested. If some customers come in my cafe and bet on mobile apps, how would I know that? As far as Hemang is concerned, he is a partner in the cafe but he always sat with his friends. I have no idea that he was placing bets.”

Police seized 21 mobile phones, cash worth ₹45,910, eight vehicles, a set-top box, a projector screen, and a projector. All those arrested have been granted bail, and police are investigating further into Arothe’s and the other accused’ role in the alleged illegal betting scandal.

 

Myanmar Ready to Legalise Casinos Under New Gambling Law

Breaking free of its self-imposed isolation, the southeast Asian country of Myanmar has decided to legalize the casino industry under the ambit of its new gambling bill. The 2018 Gambling Law that is yet to be approved by the Parliament has already received the recommendation of President U Win Myint and is expected to be enacted in May.

President U Win Myint
Myanmar President U Win Myint

Before the 2018 Gambling Law came about, the existing gambling legislation in the country dated back to 1986. The latest bill was drafted in 2017 after a petition was filed by the Ministry of Hotels and Tourism to the Ministry of Home Affairs. The former wanted casinos to be legalized to boost the service industry and cater to the foreigners staying at hotels. The new gambling law aims to promote tourism in the country and also increase tax revenues.

While there are no casinos in Myanmar, there are illegal gambling operators who have set up operations near the border such as Tha Htay Kyun (Boss Island) in Taninthayi, Myawaddy, the Wa self-administered zone, and the Kokant self-administered zone. The government has struggled to abolish these illegal gambling operations and does not benefit in any way as no gaming taxes are paid.

With the enforcement of the new law not only will illegal gambling be eradicated, but even local businesses will benefit from the economic boost that it will provide.

However, the new gambling law does not permit locals to enter these casinos since only foreigners will be allowed to gamble. They will have to show their passports for identification and also remit taxes on any winnings.

Casino operators who let locals gamble will be fined or have their license revoked and even face potential closure. Local businesses who wish to establish a casino will have to apply for a gaming license and pay taxes based on the Union Tax Law.

Myanmar and Thailand are the only two Southeast Asian countries that do not have a legalized casino industry, but once the new gambling bill is passed by the Parliament of Myanmar, only Thailand will be left to revamp their laws regarding gambling.

 

Online Gambling Legalised by Buenos Aires Governor María Eugenia Vidal

Buenos Aires in Argentina opened its doors for online gambling after the current Governor María Eugenia Vidal signed Decree 181 on April 1 which legalized online gambling in the Argentinian province.

Maria Eugenia Vidal
Maria Eugenia Vidal

The decree established a framework of regulation for online casino games, sports betting, poker and betting on horse racing.

With 16.66 million people, the province has the population of a medium-sized Latin American country on its own and represents an opportunity for international operators to gain a foothold in an emerging market with tremendous growth potential.

The government has decided to give out seven online gambling licenses, but only one permit will be given out per operator. These operators will need to meet 20 requirements before they are allowed to open up online gambling services.

Moreover, a quarter of the companies’ revenue will be taxed at a rate that is higher than the original proposal of 15%. Gambling will only be allowed for citizens above 18, and the companies have to follow advertising regulations.

Nonetheless, the Argentine Superliga and Argentine Football Association were not pleased with the legislation and have asked for the decree to be suspended since they were not consulted during the framing of the law. They are demanding a cut of the revenue from online gambling on sports.

“We do not rule out taking some measures of force,” said Nicolás Russo, President of Lanús FC, “it is not serious or fair to use football matches to bet and that clubs do not charge a peso.”

 

Singapore Increases Casino Entry Fees by 50%; 2 Casinos Allowed to Make Major Expansions

The Singaporean casino industry is currently undergoing an upheaval. While on the one hand, the government has allowed Las Vegas Sands’ Marina Bay Sands (MBS) and Genting Singapore’s Resorts World Sentosa (RWS) to expand, on the other hand, the government has also imposed higher taxes on gambling revenue and boosted casino entry levies by 50%.

Marina Bay Sands & Resorts World Sentosa

On April 3, plans to extend the exclusivity period granted to the city-state’s two integrated resorts (IR) – the MBS and RWS – were announced by the government. The two IRs will now have the market all to themselves until at least 2030.

Additionally, these two IRs have also been given permission to expand their gaming floors beyond their current 15k-square-meters apiece massively. MBS has been allowed to expand its Approved Gaming Area (AGA) by an additional 2k-square-meters, on which it can place an additional 1k gaming machines. Notably, RWS was given approval for a smaller expansion which included an additional 500-square-meters to accommodate another 800 machines.

The Singaporean government justified its granting of such permissions to the IR operators stating that besides investing a total of S$15 Billion (US$11.1 Billion) on their properties, both the IR operators have also committed an additional S$9 Billion (US$6.65 Billion) toward non-gaming amenities to boost tourism.

However, though the government has allowed the IRs to enjoy several perks, it simultaneously dealt a blow by announcing plans to hike their gambling taxes from March 2022. The current 5% tax on ‘premium’ (VIP) gambling revenue will rise to 8% on the first S$2.4 Billion of gross gaming revenue, while anything over that sum will be taxed at 12%. Mass gaming revenue wasn’t spared, as the current 15% rate will rise to 18% on the first S$3.1 Billion and 22% on mass revenue above that sum.

Nevertheless, the government has assured that it will not impose any further gaming revenue tax hikes for a 10-year period ending in 2032. However, should the IR operators fail to honor their non-gaming investment pledges, the government will impose flat taxes of 12% and 22%, respectively, on all premium and mass gaming revenue.

Moreover, a hike in the casino entry levy paid by local citizens and permanent residents from its current S$100 per day to S$150 was also declared by the government. These hikes are slated to come into effect from midnight of April 4.

 

Lousiana Pre-Files Sports Betting Bill

Ever since the Supreme Court of the U.S. opened the gates for states to offer legalized sports betting, many U.S. states have facilitated the constitutional and legal framework for the same. Louisiana seems to be in a bit of a hurry and from what can be gathered from the latest reports, a Senator from Louisiana has pre-filed the SB 153, i.e., the 2019 Louisiana Sports Wagering Control Act.

Louisiana

Last week, Republican Danny Martiny pre-filed SB 153 that proposes legalized sports betting on professional as well as college sporting events in the state, ahead of the legislative session that started on April 1. SB 153 also does not provide for legalization of mobile sports betting apps and has not comprehensively charted out the tax rates and the licensing fee structure.

If approved, the Bill will also allow the state’s riverboat and land-based casinos and tracks to operate a licensed slot machine gaming area, and conduct sports wagering under a certificate from the state’s gaming regulators.

By pre-filing, Martiny has endeavored to give the Bill as much as time possible for crossing past the legislative roadblocks.

Interestingly, if the Bill is cleared and becomes Law, it will not legalize sports betting state-wide. Each local municipality of Louisiana must vote its approval to have the prospective Law implemented in its area. Once the legislation is approved, local communities can pass a referendum, following which local gambling facilities can apply for a license through the state from January 2020 onwards.

In this context, it becomes important to note that only 48 out of the 64 communities of Louisiana had voted to approve the bill concerning legalization of daily fantasy sports.

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