The study’s broader scope is an attempt to better understand the money laundering and terrorist financing failings in the casino sector, and specifically the junket sector. The majority of those originate in casino junket operators, the AMLC argues, with the study flagging multiple transactions that should have been reported but hadn’t.

Junket Operators Feed Operators Wrong Data

Essentially, the AMLC contends that junket operators have not been flagging and reporting all issues with relevant parties, in this case, their casino partners, allowing suspicious transactions to clear, and potentially breaking AML and CFT controls in the industry as they failed to disclose the transactions. The AMLC has stopped short of publicly naming the offenders but argued that junket operators linked to prominent resorts had been found to underperform insofar as this was concerned.

Junkets have been a particularly hot topic in Asia. After the near-blanket ban on junket operators in Macau, other jurisdictions have started taking the matter more seriously. Some junket operators tried to blindside their partner casinos by issuing blank reports and claiming that they had not detected any suspicious transactions whatsoever.

However, casinos which did the snooping on their own discovered discrepancies in the report. One particular property used CCTV to establish that there seemed to be large volumes of cash being exchanged which the junket had failed to flag as suspicious. The junket of that particular casino argued that it was a genuine mistake rather than a premeditated act.

Regardless, the suspicion remains. In the particular case cited above, the AMLC claims that the casino was able to nevertheless submit 507 Suspicious Transaction Reports, indicative that the operator was determined to ensure that it complies with AML and CFT rules.

AMLC Says Operators Need to Hold Junkets Accountable

There are ways to counter such bad practices, however. The AMLC insists that should casino operators want to, they can monitor their relationship with junkets and ensure that they impress upon the junkets that reporting of suspicious transactions must happen accurately and transparently.

One of the most serious issues discovered by the AMLC remains the exchange of physical cash on casino floors, which casinos would have to work to tackle actively by raising the stakes for junket operators who may be turning a blind eye to paying customers who could be breaking AML and CFT rules.

Haig Asenbauer, who is a lawyer by profession and works as a partner at Asenbauer Rechtsanwaelte GmbH in Vienna, Austria, is also present with Novomatic AG, where he serves as deputy chair.

Asenbauer Brings Value and Expertise to Ainsworth at Time of Growth

Novomatic currently owns 52% of Ainsworth’s stock, which it acquired back in June 2021. In appointing Asenbauer, Ainsworth did file a notice with the Australian Stock Exchange, notifying that while the potential for conflicts of interest was there, the company would ensure that it observes strict governance protocols so that his involvement is limited to areas outside of those “conflict areas.”

Danny Gladstone, chairman at Ainsworth, welcomed Asenbauer and said that the man’s extensive knowledge would prove invaluable to the company. He referred to his successful track record with Novomatic and argued that having Asenbauer would add more skills and expertise.

Ainsworth, or Ainsworth Game Technology as the company is known by its full name, has been reporting good results of late. The company hit $84 million in revenue in the six months to December 31, 2022, which marked a 23.4% year-over-year increase.

The company reported strong performance across all of its geographies, reflective of the fact that Ainsworth has been doing well in its overall business relationships overseas. Latin American has yielded serious gains for the company, with Ainsworth gaining from the reopening of properties in Mexico and Peru.

Even back home, Ainsworth has been doing very well with New South Wales driving a good $22 million for the company during the reported period. Asenbauer steps in at a time when the company is experiencing a significant economic uptake which is likely to continue in the first half-year of 2023 as well.

Judge Justice Fleming has ruled that loot boxes could not be categorized as a form of gambling, but he allowed another part of the lawsuit to continue. This part singles out EA for its use of what the plaintiffs describe as “deceptive and unconscionable acts or practices,” and cites Canadian consumer protection law to drive the point home.

Loot Boxes Not Gambling, But EA Still in Trouble

EA has been repeatedly targeted by lawsuit and has had inroads with regulators in the Netherlands and Belgium lately, over the use of “loot box” mechanics in some of its games, but notably FIFA.  However, EA was happy with the ruling by Fleming, saying that the company welcomed the court’s decision to reject the claim that the company had been offering illegal gambling.

“The court’s decision reaffirms our position that nothing in our games constitutes gambling,” a spokesperson for the company said. The judge has mostly sided with EA’s argument, which states that any loot boxes in games like FIFA do not allow you in fact cash out real money, although there have been some ways to do that through third-party black markets.

However, any third-party black markets do not mean that the game itself facilitates or encourages this practice. In fact, EA explicitly forbids the practice. The judge simply stated:

Unlike a casino chip, virtual currency and virtual items in loot boxes can never be ‘cashed out’ to gain money.

Fleming similarly explained that the only way for a game like that and its loot box mechanic to be seen as gambling is to offer the chance to win or lose real money. However, he acknowledged that third-party markets do in fact support the claim to an extent. This is why a part of the lawsuit may continue.

EA Has Been Offering Loot Boxes All Over the World

Mark Sutherland, who is suing the company, wants compensation from EA for money he spent on loot boxes. He argues that the company has been operating loot boxes since 2008 and across dozens of games, which has more or less introduced gambling to underage audiences. While regulators in Belgium and the Netherlands have mostly agreed with this and banned the mechanic outright, the debate about the nature of loot boxes’ nature rages on.

Hacksaw Gaming, a leading developer of iGaming content, has agreed to provide the Italian operator Sisal with a selection of games. As agreed, the provider will integrate some of its best titles into Sisal’s platform, including all-time favorite hits such as Cubes.

Cubes, one of Hacksaw Gaming’s signature titles, will be the first game to become available to Sisal customers. It is famous for being Hacksaw’s first 3D-styled release. Its popularity earned it a sequel called Cubes 2, which was released in 2021.

Under the agreement between the two companies, more Hacksaw games will go live on Sisal’s platform over the next few weeks. This includes fan-favorite slots such as Hand of Anubis, Hop’n’Pop and Aztec Twist. In addition, players will also be able to enjoy some of Hacksaw’s instant win games, such as Mines and Coins.

Sisal is a company owned by Flutter Entertainment that has cemented its position as one of the leading operators in Italy. What differentiates the gambling firm from its competitors is its rich portfolio of slots, poker, lotteries and sports betting.

Sisal is perhaps best known for its wide range of lotteries as it offers some of the best lottery titles in Italy. These include games such as SiVinceTutto, Vinci per la vita – Win for Life, Eurojackpot, VinciCasa and the exclusive SuperEnalotto.

Hacksaw Is Happy to Partner with a “Household Name”

Gabrielle Star, Hacksaw Gaming’s chief commercial officer, commented on the agreement. She noted that her company has been steadily expanding its presence in Italy since its foray into the market earlier this year.

According to Star, the deal represents a “signal of Hacksaw’s intentions” as it furthers its presence in regulated jurisdictions. She believes that the current deal will benefit Hacksaw a Lot, considering Sisal’s local popularity.

Sisal is a household name in Italy, and we’re delighted its players can finally get a taste of our award-winning games.

Gabrielle Star, CCO, Hacksaw Gaming

Hacksaw Gaming is a Malta-based company that was founded in 2018. It has quickly grown into a leading supplier of top iGaming titles and now serves over 20 regulated markets. The company seeks to disrupt online gaming in jurisdictions such as the United Kingdom, Malta, Italy, Germany, Ontario, Spain, Sweden, Greece, Romania and West Virginia via its innovative and user-driven tech.

Earlier this month, Hacksaw Gaming signed a deal with William Hill, one of its newest partners, agreeing to launch a branded version of its Mines games. Prior to that, the supplier agreed to power Glitnor Group with gaming content.

Bloomberry Resorts Corp., the operator of Solaire Resort & Casino in Manila, announced in a filing to the Securities and Exchange Commission (SEC) of the Philippines that its investment pre-agreement with PH Travel and Leisure Corp was terminated.

Term Sheet Termination

The filing with the SEC confirmed the news that the board of billionaire Enrique Razon Jr.- owned Bloomberry Resorts had approved a resolution to terminate the term sheet it had signed with a subsidiary of PH Resorts Group Holdings, a group of companies owned by Davao-based tycoon Dennis Uy.

According to the information provided by Bloomberry Resorts and cited by The Inquirer, its board decided to terminate the term sheet “after considering the results of due diligence on the target companies and the projects.”

In May, Bloomberry Resorts signed a term sheet to invest in two PH Travel and Leisure subsidiaries: Lapulapu Leisure Inc., which is currently developing the Emerald Bay Resort Hotel and Casino in Punta Engano in Lapu-Lapu City in Cebu, and Clark Grand Leisure Corp., which is developing The Base Resort Hotel and Casino in Clark in Pampanga, subject to a number of closing conditions.

By that time, both Bloomberry Resorts and PH Resorts Group immediately attracted investor interest and their shares grew as markets welcomed the addition of Razon’s deep pockets and experience in gaming to Uy’s casino projects and the casino industry was starting to recover from the pandemic.

The news that Razon withdrew from the projects resulted in investors dumping shares of PH Resorts, part of Udenna Group, forcing its share price to drop by more than 9%, though later partly recovering to close down 5.9%. At the same time, Bloomberry Resorts’ share price rose by 2%.

Pursuing Other Investors

PH Resorts issued a confirmation that the deal with Bloomberry Resorts was off after trading hours, stating that it would allow the group to pursue other investors that were previously put on the back burner.

PH Resorts president, Martin Escalona, outlined that, while unfortunate that a deal was not closed, it would allow both parties to pursue their own plans, and PH Resorts would most likely reenter into discussions with other parties that have been considered secondary to Bloomberry Resorts’ investment proposal.

Located on 12.4 hectares of land on the beachfront in Cebu, Emerald Bay will feature a casino with 146 gaming tables and 729 gaming machines, and offer luxury accommodation in hotel rooms and villas. The other casino project, The Base in Clark Global City, will be on a 4.4-hectare lot and feature an adventure-themed integrated casino resort.

In February, Representative Ken Luttrell filed House Bill 1027, which would legalize tribal sports betting in the state of Oklahoma. The measure continues to gain traction and has now been approved by the House.

Earlier this month the sports betting bill passed the Appropriations and Budget Committee vote by a landslide, receiving 27 “yes” votes and 4 “no” votes.

House Bill 1027 would enable Native American tribes to offer sports betting and mobile sports betting. Tribes will be allowed to run their own gambling sites and sportsbooks or sign agreements with bigger betting companies.

The bill seeks to capitalize on the opportunities that a regulated sports betting framework would offer. Currently, the state is losing millions of dollars to the black market. To make up for that, House Bill 1027 will tax sportsbooks and give a large part of the proceeds to the Education Reform Revolving Fund. A portion of the money would be used to finance problem gambling treatment.

The House of Representatives Approved the Bill

Several weeks later, the bill received a favorable vote from the Oklahoma House of Representatives. Yesterday, state representatives passed the measure with 66 votes in support of the legislation against 26 votes against it.

This is another major step for House Bill 1027, which may have a chance of bringing sports betting to the Sooner State. The next threshold the measure will have to pass is the Senate. If the Senate approves the bill, it would be sent to Gov. John Kevin Stitt for a final signing.

Luckily, the measure has the Governor’s support and will likely be signed into law if it manages to pass the Senate vote.

The bill is also supported by many tribes in Oklahoma. There are currently a total of 35 tribes that offer some form of gambling in the state. Tapping into sports betting is likely to benefit not only the tribes but the state as a whole.

Oklahoma Continues the Push

The Sooner State has been discussing the potential of a new sports betting bill since 2022. The discussions followed a misfired attempt to bring retail sports wagering to the state. The failed legislation was called House Bill 3008 which, just like House Bill 1027, envisioned the legalization of sports punts at tribal casinos. However, House Bill 3008 would not have seen mobile sports betting legalized.

Proponents of House Bill 3008 argued that it would bring more money to state coffers. Unfortunately, the measure failed to pass all the necessary votes.

The company is experiencing significant hardships after losing its New South Wales and Queensland licenses, owing hundreds of millions in fines and facing several class action lawsuits. Foster’s appointment is part of an ongoing process to remedy the company’s shortcomings, ensure compliance and contest unjust allegations. The new chairman remains optimistic regarding the company’s future as he helps foster a new chapter for the group.

The Operator Is Scrambling to Reform

The past year has not been kind to the once-leading Australian casino operator. A 2021 investigation by The Sydney Morning Herald, The Age, and 60 Minutes revealed severe AML failings and possible ties to terrorist organizations. An official probe soon followed, confirming that The Star had severely and systematically violated numerous regulations. An apathetic response only worsened the situation, drawing the ire of authorities across Australia.

The Star faces up to $1 billion in fines and is engaged in several class action lawsuits. The Australian Securities and Investments Commission (ASIC) relentlessly pursues the operator’s former and current directors and executives. Furthermore, losing the NSW and Queensland licenses has severely impacted the operator’s bottom line. The ongoing turmoil has prompted The Star to elevate new, controversy-free talent to its management team.

Foster Has Experience Salvaging Struggling Enterprises

David Foster’s appointment as chairman has him replace Benjamin Heap, who is facing legal action. Heap is the last active director or executive involved in the proceedings, so his departure will hopefully signal a fresh start for the embattled operator. The former chairman was confident that his successor would help restore The Star’s damaged reputation.

I have every confidence The Star will be a powerhouse of the Australian tourism and entertainment sectors for decades to come.

Benjamin Heap, former chairman of Star Entertainment 

As chairman, Foster will be directly involved in remedying the operator’s shortcomings, hopefully restoring at least a part of its previous market position. He thanked Heap for spearheading the arduous rejuvenation process and promised to aid the renewed board of directors in the company’s journey back toward compliance.

I’m delighted to assume the role of chairman as we continue with an unwavering focus on earning back the trust of the community.

 David Foster, chairman of Star Entertainment 

Foster’s wealth of experience will be invaluable for the company’s remedial efforts. His career of over 25 years in the financial services sector saw him take the reins of Suncorp Bank, salvaging it from the consequences of the global financial crisis and steering it back into stability. Such experience is just what The Star needs to turn things around and recapture its former glory.