THE AGENDA
BY ROGER GROS , PUBLISHER
Integrity Matters
I n this issue , Buck Wargo does a great job of covering the integrity issue in gaming . This is such an important story because if we don ’ t have integrity , we have nothing .
When gambling in the U . S . first ventured out from Nevada , it was proposed for Atlantic City , New Jersey . And to say integrity didn ’ t play an important role in its legalization in the Garden State is to undervalue its importance .
During the legalization campaign , gambling boosters had to fight the impression that organized crime was involved somehow . And to make sure it didn ’ t get involved , they wrote myriad rules and regulations that everyone involved in gaming had to adhere to . Applications to work in the casinos were at least an inch thick for lowly line employees and reams of paper for a “ key ” license , which was required for management positions .
Vendors to the industry had to submit proof of ownership without a hint of impropriety . That scrutiny essentially ensured that people working in the New Jersey casino business at that time had the utmost integrity . When then-Governor Brendan Byrne cut the ribbon in 1978 to open Atlantic City ’ s first casino , Resorts International , he told organized crime , “ Keep your filthy hands off Atlantic City .”
But there were some glitches . I recently had the opportunity to finally see the movie Owning Mahowny , which characterized the scam that Brian Malony , a bank clerk in Toronto — played admirably by the legendary actor Philip Seymour Hoffman — pulled on Caesars Atlantic City while I was employed there .
Malony ( Mahowny ) was able to wire money to the cage at Caesars Palace in Las Vegas , which was then transferred to the Atlantic City property , because New Jersey integrity laws didn ’ t allow a direct transfer . Malony was a compulsive gambler , and gambled away millions of dollars at Caesars and elsewhere .
As a baccarat dealer , I had never encountered a player who dealt the cards so fast with tens of thousands of dollars riding on each hand — risking racks of purple $ 500 chips . As soon as one hand was over , the cards were out for the next hand . ( In those days , baccarat was played at a big 14-seat table , and the players dealt the cards , not the dealers .) So there were definitely holes in the integrity laws . Caesars AC was closed for two days as punishment for violating those laws , but that was really a slap on the wrist .
Lots of other jurisdictions copied the integrity of the New Jersey regulatory system , so that today ’ s land-based gaming properties are fairly trusted and respected operations with a high level of integrity .
Today , with the expansion of online sports betting and iGaming , the integrity of the industry has again come into question . There have been some horror stories about how online sportsbooks ( OSBs ) lure players in and the lengths they go to keep them . All the major OSBs have appointed responsible gaming execs , but how much power do they have over how the OSBs conduct their marketing or how they address compulsive players ?
As you can see from the land-based experience , sometimes integrity can be hard to pin down . For OSBs , the hurdle has become advertising . Despite “ best practices ” guidelines set by the American Gaming Association , lots of OSBs have doubled down on ads that are often annoying , sometimes unethical and always expensive .
And not just expensive in terms of dollars but expensive in terms of what it might cost the sports betting community . Many European countries have outright banned sports betting and iGaming ads . In North America , Ontario has already moved to limit advertising and many U . S . states are examining how to do the same .
Integrity is not something you can apply to offshore , illegal OSBs and iGaming websites . Those sites are usually predatory , unregulated and devious , putting customers at risk financially and physiologically . The solution is obviously a safe and viable legal market , but when you have OSBs that limit the participation of skilled players , you are encouraging the illegal market not only to survive but expand and thrive . Not every player understands the nuances of a legal versus illegal market .
So you see , integrity is the key to a successful and respected gaming market . OSBs and iGaming operators still have a long way to go , but if they pay attention to their land-based cousins , that road will be shorter .
Vol . 23 • No . 8 • AUGUST 2024
Roger Gros , Publisher | rgros @ ggbmagazine . com X : @ GlobalGamingBiz
Frank Legato , Editor | flegato @ ggbmagazine . com X : @ FranklySpeakn
Jess Marquez , Managing Editor jmarquez @ ggbmagazine . com
Monica Cooley , Art Director mcooley @ ggbmagazine . com
Terri Brady , Sales & Marketing Director tbrady @ ggbmagazine . com
Beck Kingman-Gros , Associate Publisher & COO bkingros @ ggbmagazine . com
Lisa Johnson , Communications Advisor lisa @ lisajohnsoncommunications . com X : @ LisaJohnsonPR
Columnists Frank Fantini | Tres York
Contributing Editors Rae Berkley | Jill R . Dorson | Kyle Goldsmith Jack Goodin | Andrew Klebanow Bill Sokolic twitter : @ downbeachfilm | Buck Wargo ______________
EDITORIAL ADVISORY BOARD Rino Armeni , President , Armeni Enterprises
• Dike Bacon , Principal / Partner , HBG Design
• Lauren Bates , President , Global Gaming Women
• Mark A . Birtha , Senior Vice President & General Manager , Hard Rock International
• Brendan Bussmann , Principal , BGlobal Advisors
• Alex Dixon , CEO , DRA / Q Casino
• Daron Dorsey , Executive Director , Association of Gaming Equipment Manufacturers
• Sally Gainsbury , Director at Gambling Treatment & Research Clinic & Professor of Psychology , University of Sydney
• Stephen Martino , Vice President & Chief Compliance Officer , MGM Resorts International
• Bill Miller , President and CEO , American Gaming Association
• Walt Power , CEO , Grand Ho Tram
• Rob Russell , Senior Gaming Analyst , Regulatory Management Counselors PC
• James Siva , Chairman , California Nations Indian Gaming Association / Vice Chairman , Morongo Band of Mission Indians
• Michael Soll , President , The Innovation Group
• Kresimir Spajic , Chief Executive Officer , Betfred Sportsbook
• Katherine Spilde , Executive Director , Sycuan Gaming Institute , San Diego State University —————— GGB Magazine 1000 Nevada Way • Suite 204 • Boulder City , NV 89005 702-248-1565 • 702-248-1567 ( fax ) www . ggbmagazine . com
The views and opinions expressed by the writers and columnists of GLOBAL GAMING BUSINESS are not necessarily the views of the publisher or editor .
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GLOBAL GAMING BUSINESS is published monthly by Clarion Gaming International , LLC . Printed in Nevada , USA . Postmaster : Send Change of Address forms to : 1000 Nevada Way , Suite 204 , Boulder City , NV 89005 Email : subscriptions @ ggbmagazine . com
Official Publication
4 Global Gaming Business AUGUST 2024