Tag: LEGAL NEWS

Last week, a class-action lawsuit was filed in Missouri alleging corruption and racketeering on the part of an operator of “gray market” lottery machines, a gas station chain owner, and several other individuals. Local media points out the suit could have political implications for the ongoing push to legalize sports betting in the Show Me State legislature, as this issue has become increasingly linked to the regulation of these controversial machines.

The lawsuit was filed on March 3 in Missouri’s Western District federal court on behalf of seven Missourians who allege they have played Torch Electronics‘ machines on several occasions and lost money from them. The suit outlines an alleged corruption scheme between the company, which owns and operates slot machines across the state, and its owner Steven Miltenberger.

The suit also names Warrenton Oil Company, which owns gas and convenience stores across the state which often house the machines; and Mohammed Almuttan, a St. Louis-area convenience store owner-turned-informant who has previously been sentenced for his role in a contraband conspiracy scheme, and his brother Rami Almuttan, who was also involved in the scheme.

The suit alleges that “an enterprise promoting and engaging in illegal gambling exists among Torch and Miltenberger and the owners of the convenience stores, gas stations, bars, restaurants, and other places of public accommodation where Torch’s slot machines are installed and operated in the State of Missouri,” as reported by the Springfield News-Leader.

The machines, which Torch refers to as “No Chance Games” in that players can view the result of the game before playing, have proliferated throughout Missouri and other states in recent years. There are currently no state regulations surrounding them.

Although it could initially seem unlikely, the issue might have implications for the legalization of sports betting. Legislators in Jefferson City have long been attempting to legalize sports betting in Missouri, but often have done so by linking their proposals with the regulation of video lottery terminals (VLTs).

Senator Hoskins

That is the case with Senator Denny Hoskins, a Republican from Warrensburg, who has proposed that legislation to legalize sports betting should be linked to the legalization of VLTs run by Torch and other companies in the state. Hoskins maintains that the legalization of VLTs could generate even more revenue.

Lawmakers have been divided on the prospect of legalizing gaming machines like VLTs. Earlier this year, the Senate voted to advance one bill to legalize sports betting without the inclusion of VLTs, while the other bill, proposed by Hoskins, was voted down. However, Hoskins has made it clear that he will not support the legalization of sports betting without the addition of VLTs.

Casino operators may be closely watching the recently filed lawsuit, as it could have a major impact on the ongoing discussions about sports betting and VLT legalization in the state. Leaders from both chambers and major political parties have expressed a desire to pass sports betting legislation this year, but it remains uncertain if a compromise can be reached.

The legislature returns from spring break on Monday, March 20; the annual legislative session ends in early May.

The Third Chamber of the Supreme Court of Chile issued a ruling in which it declared illegal any type of sports betting sites operating in the country and, in line with this, ordered to block access to more than 20 iGaming platforms through the telecommunications company Mundo Pacifico.

The ruling, published on Tuesday night, corresponds to an appeal for protection filed in 2022 by state-owned lottery company Polla Chilena de Beneficencia against Mundo Pacífico, which was requested not to promote the betting sites and their access for Chilean users.

This appeal, which was rejected in the first instance by the Court of Appeals of Concepción, was accepted by the highest court of the country, which has ordered the blocking of the online betting sites in Mundo Pacífico’s services. 

“The plaintiff [Mundo Pacífico] cannot transmit or promote games of chance, unless it accredits legal authorization and from the administrative authority, and therefore it must immediately block all the websites requested by the plaintiff in these proceedings”, reads the court decision.

The ruling states that the activities of the betting sites are developed “illegally and without control”, the reason for which “the action [of protection filed by the Polla de Beneficencia] must be accepted in the terms that will be indicated.”

“As can be inferred from the aforementioned rules, online sports betting, such as the activity denounced by the appellant, is prohibited in our legal system, and debts incurred in such games of chance have an unlawful purpose, and those who enable such activity, as well as those who participate in it, are criminally punished”, the ruling adds.

The online bookmakers affected by the Supreme Court’s decision are Betsson, Betwarrior, Betano, Coolbet, Juegaenlinea.com, Latamwin, Estelarbet, KTO, Bet365, Micasino.com, Rojabet, Betway, Betcris, Betfair, Rivalo, Sportingbet, Bwin, Marathonbet, 1XBET, BetPlay, BetSala, Bodog and Rushbet.

The ruling is welcomed

The president of the board of directors of Polla Chilena, Macarena Carvallo, valued the ruling of the Supreme Court and reiterated that only this state-owned company is legally authorized to operate sports betting.

“As we have always sustained, gambling is forbidden in our country, except for those legal entities that the law allows and gives a license to develop it. And regarding sports betting, this is given only and exclusively to Polla Chilena de Beneficencia and this ruling reaffirms that”, Carvallo added.

Mexican online casino and sports betting business Caliplay, known in the market as Caliente Interactive, has initiated legal proceedings against gambling technology provider Playtech in a bid to terminate their existing partnership.

Caliplay said, in a statement, that it has filed legal proceedings before the 46^th Civil Court of Mexico City against Playtech plc and its subsidiaries Playtech Malta and Playtech Software Limited.

Caliplay seeks termination of its legal relationship with Playtech due to concerns about the partnership’s adverse impact on its regulated business operations in Mexico. This move follows the Mexican Court’s acceptance of jurisdiction over the claim on August 28th. The Court has also issued several interim orders pending the final resolution of the claim, including the suspension of certain rights held by Playtech under their agreements.

As a result of these interim orders, Playtech has been directed to continue providing software and services to Caliplay during the ongoing legal process. Notably, this requirement remains in place despite the suspension of other rights, including Playtech’s entitlement to receive payments from Caliplay for the aforementioned services.

“The claim seeks the annulment of the legal relationship between Caliplay, Playtech, and related parties contained in various contractual agreements. As such, it is directly relevant to the running of Caliplay’s regulated business in Mexico. This announcement has therefore been issued by Caliplay to ensure that its customers and business partners are made aware of the position and as an update to the market announcements previously issued by Playtech plc and Caliplay earlier this year (on February 6 and 10, respectively),” the statement said.

Caliplay said it is committed to maintaining a channel of communication with Playtech to resolve the dispute quickly. Caliplay is a joint venture between Playtech and Mexican operator Caliente.

Responding to the legal action, Playtech has stated that this announcement marks the first time it has been made aware of proceedings in Mexico, while also referring to Caliplay as a “highly valued customer.”

The matter traces its origins to February when Playtech turned to the English courts to seek clarification on a point of contention with Caliplay. The dispute centers around whether Caliplay retains the option to exercise the additional services fee component of their strategic agreement.

The companies had agreed that the amount payable by Caliplay to Playtech upon exercise would be determined either by mutual agreement between the two parties or, if not possible, by an independent investment bank valuing Playtech’s current entitlement to receive the additional services fee until December 31, 2034.

Playtech stated that the option to purchase Caliplay was exercisable for 45 days following the approval of Caliplay’s audited accounts for the year ending December 31, 2021. This option has since expired, as stated in Playtech’s interim report for the six months ending June 30, 2022.

Caliplay argues Playtech failed to include a reference to board approval in its announcement or its interim report for the six-month period ended 30 June 2022, published on 22 September 2022.