ReportWire

Tag: Gambling industry

  • US stocks rise, remain unsteady ahead of Thanksgiving

    US stocks rise, remain unsteady ahead of Thanksgiving

    NEW YORK — Stocks rose on Wall Street Tuesday morning but trading remained unsteady ahead of the Thanksgiving holiday in the U.S.

    The S&P 500 rose 0.6% as of 10:20 a.m. Eastern. The Dow Jones Industrial Average rose 276 points, or 0.8%, to 33.880 and the tech-heavy Nasdaq rose 0.3%.

    Financial and technology companies gained ground. ground. Charles Schwab rose 2.6% and chipmaker Nvidia rose 1.3%.

    Energy stocks moved higher along with a 2% rise in U.S. crude oil prices. Chevron rose 2.1%.

    Bond yields fell. The yield on the 10-year Treasury, which influences mortgage rates, slipped to 3.78% from 3.84% late Monday.

    Investors have very little news to review this week, but several retailers and technology companies are closing out the latest round of corporate earnings with their financial results. Best Buy surged 9.8% after the electronics retailer did better than analysts expected and said a decline in sales for the year will not be as bad as it had projected earlier.

    Dell Technologies rose 4.2% after the computer maker reported strong third-quarter profit and revenue. Zoom Video slumped 7.5% after giving investors a weak profit and revenue forecast.

    Nearly every company in the S&P 500 has reported their latest financial results, according to FactSet, and the results have been mixed. Companies in the index have reported overall earnings growth of about 2%, but have also issued various warnings about weaker consumer demand and crimped sales as inflation continues squeezing consumers.

    Inflation and the Federal Reserve’s fight to tame it remains the main concern for Wall Street. The central bank on Wednesday will release minutes from its latest policy meeting, potentially giving investors more insight into its decision-making process.

    Wall Street has been hoping that the central bank might ease up on its aggressive rate increases. Its benchmark rate currently stands at 3.75% to 4%, up from close to zero in March.

    The Fed has warned that it may have to ultimately raise rates to previously unanticipated level to cool the hottest inflation in decades. That strategy raises the risk that it could go too far in slowing economic growth and bring on a recession.

    Markets in Europe and Asia were mostly higher.

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  • Game time: California to decide dual sports betting measures

    Game time: California to decide dual sports betting measures

    LOS ANGELES — The gaming industry and Native American tribes bet big on dueling propositions to legalize sports gambling in California, pumping hundreds of millions of dollars into the most expensive ballot question campaigns in U.S. history.

    But voters casting ballots in the midterm elections that conclude Tuesday may not want a piece of that action.

    Californians have been inundated with a blast of advertisements as backers seek to legalize sports gambling by allowing it at tribal casinos and racetracks or through mobile and online wagering.

    With a multibillion-dollar market at stake, proponents raised nearly $600 million — more than 250% higher than the record amount spent in 2020 by Uber, Lyft and other app-based ride-hailing and delivery services to prevent drivers from becoming employees eligible for benefits and job protection.

    Still, preelection polls showed both ballot measures faced an uphill fight to win a majority. Should both be approved, a provision in the California Constitution calls for the one with the most votes to prevail.

    More than 30 other states allow sports betting, but gambling in California is currently limited to Native American casinos, horse tracks, card rooms and the state lottery.

    Proponents of the two initiatives propose different ways to offer sports gambling and each touts other benefits they say that will come to the state if their measure is approved.

    Proposition 26 would allow casinos and the state’s four horse tracks to offer sports betting in person. The initiative bankrolled by a coalition of tribes would also allow roulette and dice games at casinos.

    A 10% tax would help pay for enforcement of gambling laws and programs to help gambling addicts.

    Proposition 27 would would allow online and mobile sports betting for adults. Large gaming companies would have to partner with a tribe involved in gambling or tribes could enter the market on their own.

    That measure is backed by DraftKings, BetMGM, FanDuel — the latter is the official odds provider for The Associated Press — as well as other national sports betting operators and a few tribes.

    The initiative is being promoted for the funding it promises to funnel through tax revenues to help the homeless, the mentally ill and and poorer tribes that haven’t been enriched by casinos.

    The nonpartisan Legislative Analyst’s Office found that both initiatives would increase state revenues but it’s unclear by how much. Proposition 26 could bring in tens of millions of dollars while Proposition 27 could bring in hundreds of millions, the office said.

    However, that revenue could be offset if people spend their money on sports gambling instead of shopping or buying lottery tickets.

    Democratic Gov. Gavin Newsom hasn’t taken a position on either proposal but has said Proposition 27 “is not a homeless initiative.”

    The California Republican Party opposes both proposals. State Democrats oppose Proposition 27, but are neutral on Proposition 26. Major League Baseball is backing Proposition 27.

    The No on Prop 26 campaign, funded largely by card rooms that stand to lose out, says the measure would give a handful of wealthy and powerful tribes “a virtual monopoly on all gaming in California.”

    The No on 27 committee says the proposal is based on deceptive promises and says the gaming companies behind it “didn’t write it for the homeless, they wrote it for themselves.”

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    Follow AP’s coverage of the elections at: https://apnews.com/hub/2022-midterm-elections

    Check out https://apnews.com/hub/explaining-the-elections to learn more about the issues and factors at play in the 2022 midterm elections.

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  • Q&A: A look at $1.9B Powerball jackpot, how it grew so large

    Q&A: A look at $1.9B Powerball jackpot, how it grew so large

    DES MOINES, Iowa — Monday night’s estimated $1.9 billion Powerball jackpot is nearly $400 million larger than the previous record jackpot and will keep growing until someone finally wins the prize.

    The jackpot started at $20 million back on Aug. 6 and over three winless months has grown to be 95 times as large. Put another way, it’s a crazy amount of money.

    WHY SO LONG WITHOUT A WINNER?

    Those who spend $2 on a Powerball ticket might wonder if something is wrong when 40 drawings pass without a jackpot winner, but this is how the game is designed. With odds of 1 in 292 million, that means it’s unlikely anyone will win the prize until a growing jackpot attracts more players. And more ticket sales mean the lottery can raise more money for public programs, which is the point of the state lotteries. Still, it has been an awful long time without a jackpot, and if there isn’t a winner Monday night, a new record will have been reached: 41 draws without anyone matching all six numbers.

    PLENTY OF PEOPLE MUST BE PLAYING NOW, RIGHT?

    Yes and no. Many, many more people are buying tickets now that the jackpot has reached nearly $2 billion. That’s clear from the fact that when the jackpot started at $20 million in the summer, players bought only enough tickets to cover less than 10% of the 292.2 million possible number combinations. For Saturday night’s drawing, that had climbed to 62%, so millions and millions of people are playing. But that percentage is still less than the 88.6% coverage reached for the previous record jackpot in 2016. And if 38% of the possible number combinations aren’t covered, there is a good chance there won’t be a winner.

    WILL THE EVENTUAL WINNER REALLY GET $1.9 BILLION?

    Pity the poor Powerball winner, as the lucky ticketholder will see nothing close to $1.9 billion. It’s only a question of how much less.

    First, that $1.9 billion prize is for winners who choose payment through an annuity, which sends out a check annually for 29 years, with a 5% increase each year. But almost no winners take the annuity, instead opting for cash. For Monday night’s drawing, the cash prize would be $929.1 million, or less than half the annuity prize.

    Federal taxes would take an additional bite, lessening the payout by more than one-third, and many states tax lottery winnings would as well.

    The difference between the annuity and cash prizes has grown larger recently because inflation has resulted in higher interest rates, which means money invested in the annuity can grow.

    DO I HAVE A BETTER CHANCE OF WINNING IF I BUY MORE TICKETS?

    Yes, but your odds of winning aren’t significantly improved. Think of it this way: If you buy one ticket, you have a 1 in 292.2 million chance of winning the jackpot. If you spend $10 for five number combinations, your chances are better, but at 5 in 292.2 million you still almost undoubtedly are not going to hit the jackpot. The same is true if you spend $100. Lottery officials say the average player buys two or three tickets, meaning they’re putting money down on a dream with very little chance it will pay off in a rich reality.

    WHERE IS POWERBALL PLAYED?

    Powerball is played in 45 states, as well as Washington, D.C., Puerto Rico and the U.S. Virgin Islands.

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  • In the 5 states without lotteries, a case of Powerball envy

    In the 5 states without lotteries, a case of Powerball envy

    WEST POINT, Ga. — Loretta Williams lives in Alabama but drove to Georgia to buy a lottery ticket for a chance at winning the $1.5 billion Powerball jackpot.

    She was one of many Alabama ticket-buyers flooding across state lines Thursday. The third-largest lottery prize in U.S. history has people around the country clamoring for a chance to win. But in some of the five states without a lottery, envious bystanders are crossing state lines or sending ticket money across them to friends and family, hoping to get in on the action.

    “I think it’s ridiculous that we have to drive to get a lottery ticket,” Williams, 67, said.

    Five states — Utah, Nevada, Hawaii, Alaska and Alabama — do not have a lottery. A mix of reasons have kept them away, including objections from conservatives, concerns about the impact on low-income families or a desire not to compete with existing gaming operations.

    “I’m pretty sure the people of Florida, Tennessee, Mississippi and Georgia appreciate all of our contributions to their roads, bridges, education system and many other things they spend that money on,” said Democratic legislator Chris England, from Tuscaloosa, Alabama.

    Several times weekly, England hears from constituents asking when Alabama will approve a lottery: “Especially when people look on TV and see it’s $1.5 billion dollars.”

    In 1999, Alabama voted down a lottery referendum under a mix of opposition from churches and out-of-state gambling interests. Lottery proposals have since stagnated in its legislature, the issue now intertwined with debate over electronic gambling.

    In Georgia, a billboard along Interstate 85 beckons motorists to stop at a gas station billing itself as the ”#1 LOTTERY STORE” — 2 miles (3 kilometers) from the Alabama-Georgia line. Alabama car tags outnumbered Georgia ones in the parking lot at times and a line for ticket purchases stretched across the store.

    Similarly, anybody in Utah wanting a lottery ticket must drive to Idaho or Wyoming, the two nearest states to the Salt Lake City metro area, where most of the population resides. Lotteries have long been banned in Utah amid stiff opposition to gambling by leaders of The Church of Jesus Christ of Latter-day Saints, known widely as the Mormon church. The faith has its headquarters in Salt Lake City and the majority of lawmakers and more than half of the state’s residents belong to the religion.

    In Malad, Idaho, 13 miles (21 kilometers) from the Utah line, KJ’s Kwik Stop is taking advantage of Powerball’s absence in Utah, advertising directly to Utah residents to cross over for tickets. “Just because Utah doesn’t participate in the lottery doesn’t mean you can’t!” their website read recently.

    KJ’s sold hundreds of Powerball tickets to Utah residents on Thursday alone, said Cassie Rupp, a Kwik Stop cashier.

    In Alaska, when oil prices slumped in recent years, legislative proposals to generate revenue through lottery games, including possibly Powerball, faltered. A 2015 report suggested annual proceeds from a statewide lottery could be around $8 million but cautioned such a lottery could negatively affect charitable gaming activities such as raffles.

    Anchorage podcast host Keith Gibbons was in New York earlier this week but forgot to buy a Powerball ticket, even though he didn’t know the size of the jackpot. His response when told it could be $1.5 billion: “I need a ticket.”

    He believes even though Alaska is extremely diverse — Anchorage School District students speak more than 100 languages besides English in their homes — offering Powerball would appeal to everyone.

    “There’s a little bit of everybody here, and so when you bring things like that, it doesn’t just speak to our culture, it speaks to all cultures because everybody wants money, everybody wants to win, everybody wants to be part of the scene,” Gibbons said.

    Not everyone agrees.

    Bob Endsley is no fan of Powerball. He says Alaskans shouldn’t have the opportunity to buy tickets. “It’s a waste of money,” said Endsley, also finding fault with the taxes that have to be paid on winnings and the increasing jackpots.

    Taking a break from shoveling snow off his sidewalk, the Anchorage man said he once won $10,000 in a Canadian lottery. But it was so long ago, he said, that he doesn’t remember what he did with the windfall other than “paid taxes.”

    Hawaii joins Utah as the two states prohibiting all forms of gambling. Measures to establish a Hawaii state lottery or allow casinos are periodically introduced in the Legislature but routinely fail in committee.

    Opponents say legalized gambling would disproportionately harm Hawaii’s low-income communities and encourage gambling addictions. Some argue the absence of casinos allows Hawaii to maintain its status as a family-friendly destination. Gambling is popular among Hawaii residents, however, with Las Vegas one of their top vacation destinations.

    Wearing a University of Alabama cap, John Jones of Montgomery, Alabama, bought a Powerball ticket on Thursday in Georgia. He voted for an Alabama lottery in 1999 and said he hopes lawmakers there try again. A retired painter, Jones said he usually doesn’t buy a lottery ticket, but decided to take a chance.

    He said many Alabamians seem to be doing the same at the Georgia store. “I even met some friends over here,” said Jones, 67.

    ———

    Thiessen reported from Anchorage, Alaska. Associated Press writers Audrey McAvoy in Honolulu, Becky Bohrer in Juneau, Alaska, and Brady McCombs and Sam Metz both in Salt Lake City, Utah, contributed to this report.

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  • Philippines shuts 214 illegal online gambling operations

    Philippines shuts 214 illegal online gambling operations

    MANILA, Philippines — Philippine officials say they have shut down at least 214 illegal Chinese offshore gambling operations and deported the first six of nearly 400 Chinese workers who have been detained under a renewed crackdown.

    A spate of crimes victimizing Chinese workers at illegal online gambling businesses, including kidnappings and sexual abuses, sparked the crackdown and calls for the banning of even legitimate operators in the lucrative industry.

    Called Philippine offshore gaming operators, or POGOs, the Chinese-run gambling firms are based in the Philippines, but their customers are overseas. They began growing rapidly in 2016, generating about 30 billion pesos ($508 million) in gambling revenues and fees from 2016 to this year, officials said.

    The current crackdown is directed against Chinese operators who have not paid taxes or revenue shares or have committed other violations of the law. The visas of their estimated 48,000 mostly Chinese workers will be canceled, and they can either leave on their own or face mass deportations, Justice Assistant Secretary Jose Dominic Clavano said by telephone.

    “All of these illegal POGOs cannot operate in the country and the people who work for them are violating our laws and we should make sure that they leave our country,” Justice Secretary Jesus Crispin Remulla told reporters at Manila’s international airport, where the six deported Chinese workers boarded a commercial flight on Wednesday back to China.

    Beijing has backed the crackdown on online gambling operations, which cater to clients in China despite Beijing’s ban on gambling.

    “Crimes induced by and associated with POGO not only harm China’s interests and China-Philippines relations, but also hurt the interests of the Philippines,” the Chinese Embassy said in a statement last week.

    “It is, therefore, widely believed that social costs of POGO far outweigh its economic benefits to the Philippines in the long run,” the embassy said.

    The six deported Chinese were among 372 mostly Chinese workers who have been detained by Philippine authorities starting in September from different offshore gambling sites, Clavano said.

    The identities of the other Chinese are still being verified with Chinese authorities in an often-tedious process prior to their deportation, Clavano said.

    Remulla said authorities are also checking how many of the more than 48,000 Chinese workers currently remain in the country because some may have left.

    More than 200,000 to 300,000 Chinese were believed to have worked in the online gambling operations when the business peaked starting in 2016, boosting real estate, transport and food businesses in cities where they were based. But a considerable number were forced to leave due to sporadic government crackdowns, a more stringent tax law and the coronavirus pandemic, officials said.

    Philippine legislators have debated whether to ban the online Chinese gambling industry altogether.

    “It is true that they contribute to the coffers, but it comes at significant social costs, which in turn pose a reputational risk that can affect our business and investment climate,” Sen. Grace Poe told a Senate hearing on the issue early this month.

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