Strong regulation needed for proxy betting
Phone betting business accounted for approximately €2.3 billion of casino gross gaming revenue in the Macau market in 2015.
Macau.- A new research paper from consultancy Global Market Advisors (GMA) says that proxy betting has a legitimate place on casino floors as a relatively cheap-to-establish product that can bring incremental gains to venues’ gaming revenues, but it needs “robust regulation” in order to be accepted.
Shaun McCamley, GMA partner, said that international gaming operators do not want to put their licences in Nevada, Atlantic City or any other jurisdiction in jeopardy.
The local regulator in Macau, the Gaming Inspection and Coordination Bureau, issued in May specific instructions banning the use of mobile telephones at table side, meaning proxy betting now widely regarded as off limits to Macau casinos.
The GMA paper defines it as where a gambler not physically present in a casino designates a trusted individual as his or her proxy. The proxy communicates via a mobile phone with a colleague physically present at a casino table, with the latter person making the actual bets on behalf of the customer.
Several gaming lawyers say that one problem with telephone betting is that whilst potentially beneficial to a casino’s top and bottom line, the practice is risky because it creates a loophole regarding the “know your customer” protocol, which is encouraged under best international practice on tackling the three of money laundering via casinos.
Mr McCamley stated: “To obtain appropriate regulation, it requires a proactive approach from casino operators. Astute casino operators will be the ones that plan ahead for when regulations covering proxy betting will be created and enforced. By being proactive, and through active lobbying and using consulting firms who specialise in working with government, casino operators can ensure that proxy betting will be understood, accepted and regulated by governing authorities,” added McCamley.
As a result of the Gaming Inspection and Coordination Bureau’s decision, opportunities to offer proxy betting have now opened up for gaming operators in other jurisdictions where regulations regarding proxy betting are less rigorous and more open to operators’ interpretation.
