Inside Asian Gaming

INTERNATIONAL BRIEFS US Banks Bucking the Online Wave New Jersey last month became the third US state, and the most populous so far, to offer regulated real- money gambling on the Internet, but banks and other credit card issuers have yet to get on board with the industry’s expansion and in many cases are refusing to accept gaming transactions. Players in New Jersey, Nevada and Delaware are finding leading financial services providers—Bank of America, Wells Fargo, American Express and EBay’s PayPal—are rejecting deposits, citing concerns over the potential for liability if violations occur, one of the biggest concerns being the possibility that underage wagers could sneak through, according to the American Bankers Association. “There are still things that can go wrong even with controls in place,” Steve Kenneally, vice president for regulatory compliance at the Washington-based association, told Bloomberg News . “Does the revenue I get offset the potential downside?” Visa and MasterCard say they allow gambling-related credit- card transactions on their networks in states where it’s legal, but the final decision rests with card issuers. “This is all bank-dependent,” Seth Palansky, a spokesman for Caesars Entertainment, told Bloomberg . “There is an education process that is ongoing regarding gaming transactions due to the new laws.” In Delaware, which has seen a high instance of credit-card rejections, according to Bloomberg , debit-card transactions do not appear to be a problem. Ultimate Gaming, which operates online poker in Nevada and casino-style gambling in partnership with Taj Mahal Casino Resorts in Atlantic City, is providing alternatives in the form of wire transfers, checks by mail and cash deposits, according to Taj officials. Third Casino Possible in Bahamas A Canadian pension fund is selling 385 acres in the Bahamas that could become the site of the Caribbean nation’s third casino resort. The mostly undeveloped parcel, known as South Ocean Resort, was taken over last year by the Canadian Commercial Workers Industry Pension Plan after a developer defaulted. The fund has hired broker CBRE Hotels to market the property, which could fetch as much as US$100 million. The Bahamas is home to Kerzner International’s massive Atlantis resort complex and a new megaresort backed by Chinese money called Baha Mar, but CBRE broker Paul Weimer says there is room for a third, and he said the buyer of the South Ocean parcel would be eligible to apply for a final casino license which the government has provided for the island of New Providence. He added that South Ocean is “directly in front of the tongue of the ocean”and can offer better recreational activies for tourists than other parts of the island. Gibraltar: UK Tax Fallout Will Be ‘Huge’ The point-of-consumption tax proposed by the British government on online gambling “would hit Gibraltar hard,” said the UK territory’s former Chief Minister Sir Peter Caruana. Mr Caruana said that with about 60% of online bets in the UK being placed via Gibraltar-based websites, the 15% levy will have a “huge impact”. The tax was announced by Chancellor of the Exchequer George Osborne earlier this year in what the government says is a move to “level the playing field” between offshore operators and the land- based operators that have not relocated to tax havens such as Gibraltar. Many that have, like William Hill, also maintain a land-based presence in Britain and are reported to be preparing to fight the tax in the courts. Jamaica Still Awaiting Casino Bids Jamaica has extended the deadline for developers interested in submitting proposals for integrated resorts on the Caribbean island nation. The previous deadline was 30th September. Three licenses are open for bid for casinos with hotels of at least 2,000 rooms. They will be able to offer both slot machines and table games with revenue taxed at 10%. The review process is expected to take about four months with winning bidders announced in early to mid-2014. The island is a popular tourist destination, but it’s not known if any major operators are involved since the government so far hasn’t publicized any bids or expressions of interest. A project known as Harmony Cove, a joint venture between the government and Tavistock Group priced at US$800 million, is reported to be progressing on the northern coast with plans calling for a luxury hotel, three golf courses, a water park and dining and retail attractions. Cyprus OKs One License, Three Casinos The government of Cyprus has cleared the way for the introduction of three casinos to the Mediteranean island nation that will operate under a single license. The decision resolves a dispute between a number of towns and the cabinet of President Nicos Anastasiades over whether to authorize a single integrated resort or permit several local licenses for smaller operations. The license will allow the developer to choose Baha Mar INSIDE ASIAN GAMING | December 2013 44