Israel shut down all 500 slot machines and 150 keno machines that were government operated across the country on New Year’s Eve, as a part of a crackdown on gambling.
Yesterday, Utah lawmakers took another move towards restricting the gambling activities in the state, an effort, which according to some of them described as a game of “whack-a-mole”. The state House unanimously decided to give the green light to a bill aimed at imposing a crack-down on so-called “fringe gambling” that has permitted devices that look very much alike regular slot.
The gaming machines were shut down after negotiations failed between the country’s treasury department and the operating body Mifal HaPayis over the renewal of the license that was expiring at the end of December.
Mifal HaPayis controls both the national lottery and sports betting operations of the country.
- 'The two months that we closed the casino were economically devastating to the community, our employees and vendors just as it was to so many Arizona businesses closed during that time,' she said.
- Casinos across the country have been shut down for weeks, but that hasn’t stopped Joshua O’Connell and others from experiencing the rush of a slot machine jackpot.
The move is not a surprise given that country’s Finance Minister Moshe Kahlon had vowed to shut down the state-owned industry. In a statement Kahlon said,
Eighteen months ago I said there would no longer be slot machines in Israel, and I am very happy that from today, there aren’t anymore. I am hurt by the thousands of families that have lost their property, their money.
Officials from Finance Ministry had extended the license for 48 hours in order to allow discussions to be concluded, on the condition that the machines be shuttered immediately after the discussion was over.
Mifal HaPayis has asked for compensation from the government to make up for the massive loss in revenue from closing down operations. The organization is demanding 800 million shekels ($208 million) by way of lost revenue. Revenue from lottery and slot machines is typically split between the local governments and treasury department.
While the Union of Local Authorities has supported Mifal HaPayis’ estimate of revenue loss, the Finance Ministry has disputed the amount, stating that the loss in revenue was less than 250 million shekels since the ministry is allowing the organization to conduct extra lotteries in exchange for shutting down the gambling machines. Mifal HaPayis is asking for permission to hold 14 more lotteries per year, over and above the two that are currently being operated.
Mifal HaPayis has agreed on a series of cost-cutting measures in order to improve its profitability. The entity will be reducing its share in profits from 7.5 percent to 7 percent. According to sources, whatever be the final agreed-upon loss amount it is likely to be shared between the treasury department and local governments in the ratio of 75 – 25 percent. As a part of his crackdown, Kahlon has also proposed increasing the applicable tax rate on lottery winnings. Currently lottery winnings below 50,000 shekels ($13,000) aren’t taxable but Kahlon wants the limit to be lowered to 5,000 shekels. He estimates that this would add up to 200 million shekels ($52 million) to the state coffers.
Hi, I am the Chief Editor of top10casinowebsites.net, this site is dedicated to all thing casino. I have been working around the casino industry for the last 12 years, with different brands. The main purpose of this site is to keep you informed with the latest news and offers around
‘Outsmarting the politicians:’ How an unregulated, illegal gambling industry is still thriving
CHARLOTTE, N.C. – An unreglulated, illegal gambling industry is still open for business and raking in money by exploiting a loophole in a decade-old state law.
“They want to call it a loophole,” said Terry Pennington, who used to own Winners World Adult Arcade in Stanley County. “I call it outsmarting the politicians.”
Pennington’s arcade, which had several video slot machines, was shut down over zoning. Officials told him he was too close to a church.
Using hidden cameras, FOX 46 went behind the tinted glass doors into the neon rooms of several Charlotte arcades where money is won and lost. They are referred to us “arcades” and “internet sweepstakes cafes” but they operate like speakeasy casinos.
Getting in requires ringing a doorbell and being wanded by security.
“It’s a ‘skills game,'” said an employee at one arcade, when asked how they are allowed to operate. “It’s not gambling.”
For the most part, with the exception of the state lottery and Harrah’s Cherokee Casino, gambling is illegal in North Carolina. Around a decade ago, state law makers made internet sweepstakes cafes illegal. The law banned the use of video slot machines, or, what the politicians call “games of chance.” But the law didn’t ban games of “skill.” And that’s where the game’s manufacturers found its loophole.
“You work for your money,” said Pennington, who believes all gambling should be made legal. “You should be able to spend it how you want to.”
Pennington showed FOX 46 how some of his slot machines got around the law. By pressing a button to “raise” or “lower” a symbol, after a spin, you technically alter the result – even though it is still a game of luck. The industry calls it a “nudge game” and claims it is now a “game of skill.”
Either way, it’s big business.
“If I was still open today, I’d at least be pulling in 10 to 20 grand a week,” said Pennington.
That number was backed up by another man who looked into opening a gaming parlor. That individual says he was told he would make upwards of $30,000 “a week” on “initial startup.”
Pennington questions why the state lottery can offer video games like Keno but he can’t.
“Paying cash for the chance to win cash is illegal,” said Republican State Sen. Andy Wells (R-Catawba). “They’re illegal. The legislature made it clear they’re illegal.”
Wells says the law “needs to be clarified.” He says the courts and lobbyists have allowed an illegal and unregulated industry to stay in business.
“These businesses are not taxed. There are no regulations,” said Wells. “You don’t know when you walk in to play a game if your odds are one in three or one in three million.”
Wells says the “game of skill” loophole is a case where “technology is outrunning government.” He plans to meet with stakeholders to find a solution that ultimately leads to the games being shut down.
“We’ve got a situation where the police are frustrated as can be,” he said. “And I am too.”
Slot Machines Shut Down Utah For Closed Loophole Due
In response to our investigation, former North Carolina Supreme Court Justice Barbara Jackson tweeted that the current situation is akin to “legal whack-a-mole.”
Back inside one Charlotte gaming parlor, one sign warns customers to “STOP BEGGING FOR MONEY.” It’s an indication that those who play these games are the ones who can least afford to.
The courts have sided with two of the biggest distributors and operators of these games, which operate much like any you would find in a casino. The governor and attorney general are appealing, arguing the games amount to nothing more than illegal gambling.
Slot Machines Shut Down Utah For Closed Loophole 2020
The confusion around the law has trickled down to law enforcement. FOX 46 found police agencies across the area aren’t quite sure what to do. While some cities go after gaming parlors, others leave them alone. One police chief told FOX 46 the current law is “clear as mud.”
Walter Bowers, a former CMPD officer who is now an attorney, says that uncertainty has allowed an industry to thrive even while operating in a “legal grey area.”
“There were times back when I was with CMPD,” said Bowers, “we were essentially told to ‘stand down’ until certain things were clear.”
Slot Machines Shut Down Utah For Closed Loophole Today
Things still are not clear. While the industry is currently winning, it will be up to the courts and our politicians to decide if the game should be over for good.