Being a multi-billion-dollar industry, gambling is now seen by many as a stable revenue stream that could help jurisdictions boost local economy, fill budget gaps, help various causes, and many more. This is why officials for more and more states and countries where gambling is limited or prohibited have been discussing the positive sides of betting and gaming options and their potential legalization and/or expansion.
And even though the industry is praised by many as a source of much-needed tax revenue, jobs, and other benefits for communities, it has always had staunch opponents. Both land-based and online gambling options are being considered dangerous to society, especially to its most vulnerable members, and not without a reason. Lawmakers, experts, and residents of jurisdictions around the world have expressed fears that a potential legalization of sports betting and casino gambling and their poor regulation could result in increased crime rates, more people showing symptoms of problem behavior, and other social ills.
The introduction of both online and brick-and-mortar gaming options (and the expansion of those operations where they have already been legalized) has been a hot topic in a number of US states and countries around the world over the past few years. A number of bills on the matter have been proposed and those are expected to be further considered and voted on in 2016.
Here are the places where changes in existing gambling regulations and new gambling-related laws are likely to be introduced in the next 12 months and a little more information on what could be expected once those are implemented.
The United States
Georgia
Currently, Georgia is among the least gambling-friendly states across the nation. Casino gaming is banned within the state’s borders and it does not have even tribal facilities. A budget deficit in the lottery-funded HOPE scholarship program and other financial matters brought about discussions about potential gambling legalization as a means to boost local economy.
As a result, House Bill 677, sponsored by State Rep. Ron Stephens (R-Savannah), was introduced to state legislators. The proposed legislation called for the establishment of up to six casinos across Georgia, two in the Atlanta metropolitan area and four more near the state’s borders. Under the bill, the gambling venues would be required to pay a 12% tax on gaming revenue and 90% of the money generated would go to educational programs, with the HOPE scholarship one being the top priority.
According to estimates provided by proponents of HB 677, the amount of $280 million could annually be contributed in tax revenue, if the state decides to legalize its casino industry. If everything had gone as planned, Georgia legislators would have been able to vote on the proposed legislation by the end of 2015 and the effort would have been presented for a statewide vote in 2016.
However, Gov. Nathan Deal said that the legalization of the state casino industry was not likely to improve the Georgians’ quality of life and due to this he would not support HB 677. Later on, the state’s top official noted that he might eventually change his mind, if lawmakers and casino companies agreed that the latter would a higher tax on revenue than the initially proposed 12% rate. Gov. Deal said that a 24-35% rate was a much more reasonable one.
Although the casino effort failed to gain the necessary support in 2015, Georgia legislators will continue discussing it in 2016. In fact, the proposed bill is expected to be a hot topic from the very beginning of this year’s legislative session, which is slated to start on January 11.
New Jersey
New Jersey is another state likely to see significant changes introduced in its gambling industry. At present, casino gaming in the state is only allowed in Atlantic City. A former major gambling destination, the resort and its casinos have been facing some serious financial problems over the past several years.
In 2014, four of Atlantic City’s twelve gambling venues closed doors and another one barely escaped the same fate. With that said, the city has apparently lost its luster and is now looking for ways to regain its former glory. People with knowledge of the matter have explained that one of the main reasons behind the casino resort’s current situation is the competition coming from surrounding states. New York, Delaware, Pennsylvania, and other nearby jurisdictions have taken measures towards expanding their gambling industries and New Jersey has clearly been losing gambling customers to those.
In 2015, state legislators started discussing changes in the existing gambling regulations and the potential expansion of gaming outside Atlantic City. Two separate but quite similar bills were introduced – one backed by the New Jersey Senate and the other by the General Assembly. Generally speaking, they both called for the construction of two casino resorts in North Jersey. Once operational, those would contribute a portion of their gambling revenue to the state.
What is more, part of the money they generate would go to Atlantic City as a means to help it recover and as a compensation for the in-state competition that would arise from the opening of the two new venues.
A major difference between the two proposed bills is the amount of money that the two new casinos would contribute to Atlantic City. In addition to this, the Senate-backed bill called for the gambling venues to be owned by existing state operators. As for the Assembly-sponsored proposal, if approved, it would require one of the two new facilities to be managed by an operator of existing casinos in Atlantic City.
A public hearing on this second bill is to be held on January 7. What is more, both proposals are expected to be widely discussed during the 2016 legislative session in a bid for one of them to be part of the November ballot.
Illinois
Illinois is another state that may see certain changes implemented in its existing gambling regulations. Last year, legislators proposed the expansion of the state’s gambling industry in a bid to fill a huge budget gap and other financial issues related to public pensions.
Senate Bill 1382 called for the construction of a larger full-scale casino in Chicago and the establishment of smaller, “satellite” ones across the state. What is more, under the proposed legislation, the Chicago-based fully-fledged casino would contribute all of the revenue it generates during the first seven years of operation to the city. As for the smaller gambling venues, they would feature between 400 and 600 slot machines, if the bill is eventually passed into law.
The casino expansion effort met both strong support and vocal opposition. Proponents of SB 1382 saw in it an excellent opportunity for Chicago and the state as a whole to cope with the serious budget deficit and other financial matters and to provide a much-needed economic boost. Opponents of the proposal, however, stated that the Illinois gambling market is already saturated and more facilities would result in a slowdown rather than having positive effect on the industry and the economy as a whole.
SB 1382 was not signed into law during the 2015 summer legislative session and many believe that the effort would be further considered in 2016. Over the past several years, Illinois lawmakers have repeatedly lobbied for gambling expansion. Two similar casino bills were rejected by former state Gov. Pat Quinn. However, Bruce Rauner, the current Illinois Governor, seems to be more open towards a potential establishment of more venues across the state.
Maine
With two state-run casinos – Hollywood Casino Hotel and Raceway in Bangor and Oxford Casino in Oxford, Maine took steps towards expanding its gambling industry in 2015. Two bills – LD 1280 and LD 1446, were presented to the state Legislature and were considered by lawmakers during last year’s legislative session. However, both efforts were not signed into laws and state legislators said that they would further consider them in 2016.
LD 1280 called for the construction of a new casino in York County or Cumberland County. Under the proposed legislation, the operator of the gambling venue would have to pay a license fee of $5 million and would have to contribute 3% of its net slots income to the host community. What is more, 46% of its net slot machine revenue and 16% of its net table game revenue would go to the state Gambling Control Board, which would distribute the money to various causes.
LD 1446 proposed a new tribal casino either in Washington County or in Aroostook County. Under the bill, the venue would have to benefit the state’s four federally recognized tribes. The winning bidder for the operation of the casino would have to pay a licensing fee of $1 million and to contribute 46% of its net slots revenue and 16% of its net table game revenue to Maine.
As mentioned above, action on both bills was postponed to January 2016. Any of the two proposed legislations will have to be approved by both the Maine Legislature and residents of the state.
Brazil
Outside the United States, Brazil is a place where the legalization of casino gambling is very likely to be a broadly discussed topic in 2016. In December, Bill 186, sponsored by Sen. Ciro Nogueira and introduced earlier in 2015, was overwhelmingly approved by the country’s Special Commission on National Development.
If signed into law, Brazil will have its first casinos in 70 years. Lawmakers have previously tried to legalize gambling in the country but their efforts were unsuccessful. However, many believe that Brazil is closer to opening casinos than it has ever been before. The country is currently facing serious financial problems and officials are looking for a stable revenue stream and economic boost. And proponents of casino gambling took advantage of the situation to introduce related legislations in 2015.
Here it is important to note that President Dilma Rousseff rejected in the summer of 2015 a bill similar to the one authored by Sen. Nogueira. The legislation called for legalization of fixed-odds sports betting options in the country.
Generally speaking, Bill 186 is focused on the establishment of land-based casinos around the country as well as on the legalization and regulation of Internet gambling, with both brick-and-mortar and online gaming options seen as sources for stable revenue at a time when the country really needs additional funds. And given the fact that casinos may indeed bring millions to Brazil’s coffers, the proposed legislation would most likely be widely discussed in the months to come and may even be signed into law, if given the necessary approvals.
Japan
Being the only developed country without a legalized casino industry, Japan has been on a long voyage towards establishing full-scale integrated gambling venues within its borders. First discussions about the potential legalization of casino gambling in the country started in 2002. And it could be said that more than a decade later, legislators have not made any significant progress and furthermore, casinos are not likely to open doors in Japan before 2022.
However, it would be an understatement to say that the matter has not been considered over the years. The Promotional Integrated Resorts Bill has been submitted for consideration to the Japanese Diet several times but has not been signed into law yet. The last time the bill was presented to legislators was in the summer of 2015.
Generally speaking, if passed, the above-mentioned legislation would put the beginning of a multi-year and multi-step process for the establishment of two integrated resorts in Japan, with Tokyo and Osaka being the likely host cities. What is more, once the proposed legislation is approved, lawmakers will then have to consider another bill that would authorize the actual construction of the gambling complexes.
At first, involved parties strove to have the two bills signed into laws and the casinos built before the 2020 Tokyo Summer Olympics. With the current state of affairs, however, the country is not likely to have gambling venues before 2022, according to people with knowledge of the matter.
It could be said with a degree of certainty that the Promotional Integrated Resorts Bill will return to the Diet in 2016 and would hopefully be signed into law.
Conclusion
These are several of the jurisdictions where major changes in their gambling regulations may occur in the next 12 months or at least, such changes are expected to be widely discussed by lawmakers and other interested parties. It could not be said how many of all proposed bills would be signed into laws and how many more are to be introduced but one thing is for sure – 2016 promises to be quite eventful for the global gambling industry in legislative terms.
