Inside Asian Gaming

December 2015 inside asian gaming 45 One matter no longer in front of the courts is the continuing use of the Trump name after Donald Trump – who originally founded the company – agreed to drop a lawsuit seeking to have it removed as part of the Icahn deal. Trump retains a 10% stake in Trump Entertainment but has had no involvement in its operations for more than a decade. Brazil to legalize gaming While some of the smaller fantasy sports sites such as DailyMVP and DraftOps have shuttered their New York operations, FanDuel and DraftKings have countered that their contests are skill-based, have operated for a number of years and have attracted investments from media companies and major sporting leagues who have deemed them legal. A lawyer for FanDuel, John Kiernan, argued that daily fantasy sports are similar to a real life team manager successfully picking a roster of players to increase the side’s chances of winning and were therefore hugely skill-based. Assistant Attorney General Kathleen McGee presented the alternative argument that although compiling a strong roster required skill, the result of any DFS contest was nevertheless reliant on how the players performed in real life and was therefore subject to factors outside the control of the DFS user. DFS sites have enjoyed huge growth since the start of the current NFL season after embarking on massive marketing campaigns, however questions over their integrity emerged when a DraftKings employee beat more than 200,000 other players to win US$350,000 on rival FanDuel. A number of US states are now contemplating regulation of the DFS industry while a handful have banned them completely. FanDuel has temporarily suspended operations in New York while it argues its case. Justice Manuel Mendez, who is hearing the case, said he expected to arrive at a decision quickly. It is estimated that the number of people playing DFS in the USA and Canada has tripled in the past 10 years including a 25% increase over the past 12 months to around 57 million participants. Stay of execution for Atlantic City icon Uncertainty continues to surround the future of Atlantic City’s remaining casinos with Trump Entertainment Resorts – owner of the Taj Mahal – looking to billionaire Carl Icahn to save the company from bankruptcy. In November, Trump Entertainment named its three man executive team to lead the company ahead of Icahn’s takeover with Mike Mellon appointed the Taj Mahal’s new general manager and existing members of the board of directors David Licht and Michael Elkins co-Chairmen of the board. Mellon will also assume the company’s CEO role pending approval by state regulators. The Taj Mahal very nearly joined the growing list of Atlantic City casinos to close their doors earlier this year before Icahn agreed to throw it another lifeline. Sister property The Plaza wasn’t so lucky, shutting down just days after Trump Entertainment filed for bankruptcy in September 2014. It’s the fourth time Trump Entertainment has filed for bankruptcy over the years and leaves the Taj Mahal as the company’s sole remaining casino. However, the Taj Mahal isn’t secure just yet with an appeals court yet to rule on whether the casino must restore health insurance and pension benefits to workers that it previously cancelled in October 2014. Icahn has stated that such benefits are not feasible in Atlantic City’s current gaming climate, adding he will likely withdraw financial support – thus forcing the Taj Mahal to close – should the court insist benefits be restored. INTERNATIONAL BRIEFS Brazil could be the next country to legalize gaming with the first meeting of the Special Committee on National Development in the Brazilian Senate set to be the focus of its early discussions. Gambling has long been illegal in the South American powerhouse, but with the nation in the midst of an economic crisis politicians have been actively investigating new methods of stimulating the Brazilian economy. And unlike other countries said to be considering similar moves, such as Japan, it appears as if Brazil is ready to push forward with their plan. A revised version of the gaming bill first presented by Senator Ciro Nogueira in 2014 will be discussed by the Special Committee with casinos, slot parlors, bingo halls and local lottery game “Jogo do Bicho” among the main areas of interest. Their aim is to finalize legislation defining exactly what types of gaming would become legal in Brazil as well as setting out the licensing and taxation criteria. Senator Blairo Maggi, who revised Senator Nogueira’s bill earlier this year, has described the process as “appropriate in order to regulate gambling in the country.” He has previously pointed to the fact that illegal gambling in Brazil is rife as a compelling reason to legalize and regulate the industry. The new legislation divides responsibility for various types of gaming between state and federal governments with “Jogo do Bicho” and bingo to be run by each individual state. The Central Government would be responsible for regulating casinos including the granting of casino licenses which would be for a period of 20 years. The current proposal is to tax gross revenues from all gaming operations at 7% in the states where they are located which would generate billions of dollars of much needed revenue. Brazil’s tourist industry has also expressed support for the plan as a means of luring more visitors.