Select Page

Betfair<span id="more-7636"></span> Profits Tall Despite Brand New UK Tax Hit

Betfair CEO Breon Corcoran claims the market remains competitive despite the new UK point of consumption tax.

International betting exchange Betfair has reported that its robust upsurge in revenue over the last fiscal 12 months has been driven largely by accelerated investments in marketing and mobile activities betting, which now accounts for around 70 percent of all recreations betting turnover.

Revenue was up 21 % to £476.5 million ($757 million) for the London-listed company, which said that an boost in advertising invest had resulted in an encouraging 52 percent rise in active clients up to a record 1.7 million.

The planet Cup early in the period that is financial the company to engage with new customers and renew relationships with existing ones, according to Betfair CEO Breon Corcoran. This created a trading momentum which resulted in record customer numbers and betting volumes at British horseracing meetings, the Cheltenham Festival, and Grand National. The number of active customers in these markets increased by 70 percent to 1,456,000, the business reported.

Heavy Investment

‘Product is a reason that is key customers join and remain with Betfair,’ Corcoran noted. ‘Important item improvements, such as the extension of Price Rush every single way wagers and Cash Out to in-running horseracing, helped to drive a strong performance of these key racing festivals.

‘ We carry on to spend greatly into the company,’ said Corcoran. ‘ This year we invested [around] £28m more on advertising and customer bonuses and added more than 60 people to our product development groups.’

Income growth helped Betfair record an operating profit of £94.3 million, up 53 percent year-on-year, with profit for the climbing 69 % to £86.4 year million. This, inspite of the introduction of a point that is uk of tax which threatened to swallow up profit margins for online gambling companies. Betfair said it expects a tax that is similar become created in Ireland by August, and certainly will look for to have a license.

Mulls B2B Solution

‘The market remains highly competitive and, despite the introduction associated with the UK point of usage taxation, operators are still spending heavily on advertising and promotions,’ stated Corcoran.

‘We continue steadily to believe that scale is critical so we have possibilities to invest for profitable growth. We now have momentum, current trading is good and now we are confident we can deliver our expectations for the coming financial year.’

Corcoran additionally said that the business was mulling the notion of franchising away its betting exchange as a B2B providing. Betfair’s relationship with Crown Resorts in Australia would provide as the prototype for such a venture, he said.

A year ago, the company offered its 50 percent stake in Betfair Australia to Crown, but will continue to provide its product in substitution for income share. This would be the model for its solution that is b2B stated.

Treasury Report Highlights Casino Money Laundering Risk

One of the most typical practices of money laundering in casinos is ‘minimal gaming’ when customers deposit funds with a casino and then cash down after little or no play. (Image:

The US Department of Treasury has published its annual National Money Laundering Risk Assessment report, a 100-page document targeting the threat that money laundering may pose to the US economic climate.

This season, casinos get a whole chapter to themselves, which can be maybe unsurprising when you consider that, in 2013, some 27,000 Suspicious task Reports (SARS) filed with all the Financial Crimes Enforcement Network (FinCEN) related to casino transactions. Forty percent among these were in casinos in Nevada or Atlantic City.

But it’s exactly what doesn’t get stated that most issues FinCEN.

‘Casinos are primarily destinations for recreation and activity, not services that are financial’ warns the report, ‘which may lead some casinos to unintentionally or inadvertently put customer service against Banks Secrecy Act compliance.’

This might be why casinos sometimes fail to file Currency Transaction Reports on deals over $10,000, as required for legal reasons, the report suggests, it comes to high-rollers, their best customers because they are unwilling to ask for intrusive personal details, especially when.

Since the passage for the Money Laundering Control Act 1986 this has been a requirement of all US monetary institutions to file a CTR to FinCEN for just about any money transaction over $10,000.

Dirty Money

The far most common form of ‘money laundering,’ based on the report occurs within Nevada sportsbooks, which are often used by illegal out-of-state bookies and illegal gambling that is online to make wagers to assist them balance their odds.

Also common is ‘minimal gaming,’ in which customers buy chips or deposit funds with a casino and then cash out after little or no play; an indication that is strong of.

The report cites many instances of financial foul play; there’s the North Carolina tobacco farmer who sold contraband cigarettes to criminals for resale in Canada, and plowed his ill-gotten gains in to the slot machines at a casino that is indian getting a casino look for the credit balance.

Then there’s the Arizona man whom solicited $4 million in funds claiming a gambler’s insider advantage, which he then used for gambling in Vegas while converting it into cash for his or her own use.

LVS’ $47.4 million Wrist Slap

There are high-profile cases too, such as that of the Las Vegas Sands Corp and the Chinese-Mexican medication dealer, Zhenli Ye Gon.

In 2014 LVS had been forced to settle for $47.4 million with federal authorities to avoid prosecution after it allowed Ye Gon to wager $84 million at the Venetian. He ended up being arrested in 2007 and stands accused of international drug trafficking.

LVS admitted it failed to precisely scrutinize the source of Ye Gon’s funds.

Additionally the case of the Tinian Hotel & Casino and Casino in Northern Mariana Islands, A united states dependency which month that is last fined a record $75 million for violation of anti-money-laundering regulations. The casino was indicted for failing woefully to register thousands of CTRs.

Of specific concern to Treasury was the expansion of US casinos abroad, which can allow an individual to establish a casino account in one single country and then access it in another.

‘The most significant money laundering vulnerability it concludes, ‘and to use the money for gambling and other personal or entertainment expenses, and then withdraw or transfer the remaining funds either in the United States or elsewhere at US casinos is the potential for individuals to access foreign funds of questionable origin through US casinos.

AGA Denounces ‘Damaging’ IRS Proposals On Capitol Hill

Geoff Freeman, AGA president: ‘This could have enormous implications not simply for commitment cards in the casino industry but in the broader hospitality industry.’ (Image: casino

American Gaming Association (AGA) President and Chief Executive Geoff Freeman testified at an IRS hearing on Capitol Hill this week, voicing industry issues over plans to lower the tax reporting threshold for slot winnings from $1,200 to $600.

Also present during the hearing were casino executives and representatives that are tribal.

The opinion within the casino industry is the fact that proposals would be detrimental to client experience, while increasing paper benefit casinos and disrupting the casino floor.

Casinos would also require expensive upgrades to their backend systems.

There are concerns, in particular, about IRS recommendations that the proposed rule could be enforced through the tracking that is electronic of’ gambling practices through their customer loyalty cards.

‘ The gaming industry is aware of no other industry in the national country which is why the IRS has issued regulations requiring the industry to deploy its client loyalty system for federal taxation collection purposes,’ the AGA said recently.

‘Customer Would Walk’

‘we question the need to impose mandatory, across-the-board use of the player-tracking tool for tax reporting purposes,’ said Freeman while we recognize the IRS’ concerns and objectives. ‘Rather than mandating across-the-board use for taxation reporting, we think a more targeted approach is possible for attaining the IRS’ objective.’

‘The customer would walk away,’ Freeman said in an interview that is post-hearing the Las Vegas Review Journal. ‘ This would have enormous implications not simply for commitment cards within the casino industry however in the broader hospitality industry: hotels, airlines and others.’

‘The lowering of the threshold that is reportable have a devastating effect on our business, and we strongly oppose the decrease,’ added John Canham, VP of casino operations at Hollywood Casino at Kansas Speedway.

The AGA has launched an online petition opposing the proposals, already signed by 10,000 people. These signatures were from casino employees and customers alike, from across all 50 states, said Freeman.

The AGA represents operators and gaming manufacturers that collectively support 1.7 million US jobs.

Illegal Gambling Advisory Board Established

Elsewhere, the AGA’s new Illegal Gambling Advisory Board held its meeting that is inaugural this.

This isn’t, as the name may recommend, a hotline offering suggestions about where to find the best odds from illicit bookmakers, its, in fact, the contrary.

The board has been set up within the AGA’s ‘Stop Illegal Gambling: Play it Safe’ effort, and seeks to distinguish the regulated gaming market from the ‘criminal networks that depend on illegal gambling to invest in violent crimes and medication and human trafficking.’

‘The Illegal Gambling Advisory Board, along side forthcoming partnerships, will ensure that illegal gambling is brought towards the forefront of general public discussion so that we can plainly distinguish our highly controlled industry from the illegal enterprises that fund negative activities and tarnish our reputation,’ explained Brian Cohen, director of Ally Development for the AGA.