Betfair<span id="more-3275"></span> Profits Tall Despite New UK Tax Hit

Betfair CEO Breon Corcoran says the market remains competitive inspite of the new UK point of consumption tax.

Worldwide wagering exchange Betfair has reported that its robust increase in income on the final financial 12 months has been driven largely by accelerated investments in marketing and mobile sports betting, which now is the reason around 70 per cent of all recreations betting turnover.

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

The World 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 figures and betting volumes at British horseracing meetings, the Cheltenham Festival, and Grand National. How many active customers in these markets increased by 70 % to 1,456,000, the ongoing business reported.

Heavy Investment

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

‘ We continue to invest heavily into the company,’ said Corcoran. ‘ This year we invested [around] £28m more on marketing 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 year climbing 69 percent to £86.4 million. This, despite the introduction of A uk point of consumption tax which threatened to swallow up profit margins for online gambling companies. Betfair stated it expects a tax that is similar become created in Ireland by August, and will seek to obtain a license.

Mulls B2B Solution

‘The market continues to be extremely competitive and, despite the introduction associated with British point of consumption income tax, operators are still spending heavily on advertising and promotions,’ stated Corcoran.

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

Corcoran also said that the organization ended up being mulling the notion of franchising out its betting exchange as a B2B providing. Betfair’s relationship with Crown Resorts in Australia would serve as the prototype for such an endeavor, he said.

Last year, 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 end up being the model for its B2B solution, Corcoran said.

Treasury Report Highlights Casino Money Laundering Risk

One of the most common methods of cash laundering in casinos is ‘minimal gaming’ when customers deposit funds with a casino and then cash away after little or no play. (Image: financialdirector.co.uk)

The US Department of Treasury has published its annual National Money Laundering Risk Assessment report, a 100-page document concentrating on the threat that money laundering may pose to your US system that is financial.

This year, gambling enterprises get a chapter that is whole themselves, that will be maybe unsurprising whenever you consider that, in 2013, some 27,000 dubious task Reports (SARS) filed because of the Financial Crimes Enforcement Network (FinCEN) related to casino transactions. Forty percent of these were in casinos in Nevada or Atlantic City.

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

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

That is why casinos sometimes fail to file Currency Transaction Reports on deals over $10,000, as required by law, the report suggests, because they truly are reluctant to ask for intrusive personal details, particularly when it comes down to high-rollers, their finest clients.

Since the passage associated with the Money Laundering Control Act 1986 it offers been a requirement of all US institutions that are financial file a CTR to FinCEN for almost any money transaction over $10,000.

Dirty Money

The far most common form of ‘money laundering,’ according to the report occurs within Nevada sportsbooks, which are often used by unlawful out-of-state bookies and illegal online gambling sites 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 minimum play; a strong indicator of money-laundering.

The report cites numerous instances of financial foul play; there’s the new york tobacco farmer who sold contraband cigarettes to crooks for resale in Canada, and plowed his ill-gotten gains into the slot machines at a casino that is indian receiving a casino search for the credit stability.

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

LVS’ $47.4 million Wrist Slap

You can find high-profile cases too, such as compared to the Las Vegas Sands Corp and the Chinese-Mexican drug 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 was arrested in 2007 and stands accused of international drug trafficking.

LVS admitted it didn’t correctly scrutinize the source of Ye Gon’s funds.

There is also the situation of the Tinian Hotel & Casino and Casino in Northern Mariana Islands, A united states dependency which last month was fined a record $75 million for violation of anti-money-laundering regulations. The casino was indicted indian dreaming slot machine for neglecting to register thousands of CTRs.

Of specific concern to Treasury was the expansion of US casinos abroad, which makes it possible for someone to establish a casino account in one country and then access it in another.

‘The most significant money laundering vulnerability at US casinos could be the potential for individuals to access foreign funds of debateable origin through US casinos,’ it concludes, ‘and to utilize the money for gambling and other personal or entertainment expenses, and then withdraw or transfer the rest of the funds either into the United States or elsewhere.

AGA Denounces ‘Damaging’ IRS Proposals On Capitol Hill

Geoff Freeman, AGA president: ‘This would have implications that are enormous only for loyalty cards in the casino industry but into the broader hospitality industry.’ (Image: casino release.com)

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

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

The consensus within the casino industry is the fact that proposals would be detrimental to customer experience, while increasing paper work for casinos and disrupting the casino floor.

Casinos would also need upgrades that are expensive their backend systems.

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

‘ The video gaming industry is aware of no other industry into the country which is why the IRS has issued regulations requiring the industry to deploy its customer loyalty program for federal income tax 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 tax reporting, we believe a more targeted approach is feasible for achieving the IRS’ objective.’

‘The client would walk away,’ Freeman said in a post-hearing interview with the Las Vegas Review Journal. ‘ This would have enormous implications not just for loyalty cards in the casino industry however in the wider hospitality industry: hotels, airlines and others.’

‘The reduction in 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 a petition that is online the proposals, already signed by 10,000 people. These signatures had been from casino workers and customers alike, from across all 50 states, said Freeman.

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

Illegal Gambling Advisory Board Established

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

It is not, as the true title may recommend, a hotline offering suggestions about how to locate the best odds from illicit bookmakers, it is, in fact, the opposite.

The board has been set up included in the AGA’s ‘Stop Illegal Gambling: Play it Safe’ effort, and seeks to differentiate the regulated gaming market from the ‘criminal networks that depend on unlawful gambling to finance violent crimes and drug and human trafficking.’

‘The Illegal Gambling Advisory Board, along with forthcoming partnerships, will ensure that illegal gambling is brought to your forefront of public discussion so that we can obviously distinguish our highly regulated industry through the enterprises that are illegal fund negative activities and tarnish our reputation,’ explained Brian Cohen, director of Ally Development for the AGA.