Betfair Profits High Despite New UK Tax Hit

Betfair<span id="more-20161"></span> Profits High Despite New UK Tax Hit

Betfair CEO Breon Corcoran says the market stays competitive regardless of the UK point that is new of tax.

International betting exchange Betfair has reported that its robust increase in income throughout the last financial year has been driven largely by accelerated assets in marketing and mobile activities betting, which now is the reason around 70 percent of all sports turnover that is betting.

Income was up 21 % to £476.5 million ($757 million) for the London-listed company, which stated that the boost in advertising invest had resulted in an encouraging 52 percent rise in active customers up to a record 1.7 million.

The World Cup early in the period that is financial the company to engage with new clients and renew relationships with existing ones, according to Betfair CEO Breon Corcoran. This created a trading momentum which resulted in record customer figures and volumes that are betting British horseracing meetings, the Cheltenham Festival, and Grand National. The amount of active customers in these areas increased by 70 per cent to 1,456,000, the ongoing business reported.

Heavy Investment

‘Product is a reason that is key customers join and stay with Betfair,’ Corcoran noted. ‘Important product improvements, like the extension of Price Rush every single way bets and Cash Out to in-running horseracing, helped to drive a strong performance of these key race festivals.

‘ We continue to spend greatly within the company,’ said Corcoran. ‘ This year we invested [around] £28m more on advertising and customer bonuses and added more than 60 people to our product development groups.’

Income growth helped Betfair record an operating profit of £94.3 million, up 53 percent year-on-year, with profit for the year climbing 69 percent to £86.4 million. This, regardless of the introduction of a point that is uk of tax which threatened to swallow up profit margins for online gambling companies. Betfair said it expects a similar tax regime to be created in Ireland by August, and certainly will seek to obtain a license.

Mulls B2B Solution

‘The market remains very competitive and, despite the introduction regarding the UK point of consumption income tax, operators are still spending heavily on marketing and promotions,’ said Corcoran.

‘We continue steadily to believe that scale is critical and now we have opportunities to spend for profitable growth. We’ve energy, current trading is good so we are confident we can deliver our expectations for the coming economic year.’

Corcoran additionally said that the business was mulling the thought of franchising out its betting exchange as a B2B offering. Betfair’s relationship with Crown Resorts in Australia would provide as the prototype for such a venture, he said.

A year ago, the company sold its 50 percent stake in Betfair Australia to Crown, but will continue to supply its product in return for revenue share. This would be the model for its B2B solution, Corcoran stated.

Treasury Report Highlights Casino Money Laundering Risk

One of the most common techniques of money laundering in casinos is ‘minimal gaming’ when customers deposit funds with a casino and cash out after then little or no play. (Image:

The US Department of Treasury has published its annual National Money Laundering Risk Assessment report, a 100-page document centering on the threat that money laundering may pose to your US financial system.

In 2010, casinos get a chapter that is whole themselves, which can be possibly unsurprising whenever you think about that, in 2013, some 27,000 Suspicious task Reports (SARS) filed using the Financial Crimes Enforcement Network (FinCEN) related to casino transactions. Forty % of those were in casinos in Nevada or Atlantic City.

But it is what doesn’t get stated that most concerns FinCEN.

‘Casinos are primarily destinations for recreation and entertainment, not services that are financial’ warns the report, ‘which may lead some casinos to unintentionally or inadvertently put customer service against Banks Secrecy Act compliance.’

This might be why casinos sometimes fail to file Currency Transaction Reports on deals over $10,000, as required by law, the report suggests, it comes to high-rollers, their best customers because they are unwilling to ask for intrusive personal details, especially when.

Since the passage of the Money Laundering Control Act 1986 it’s been a requirement of all US financial institutions to register a CTR to FinCEN for just about any currency transaction over $10,000.

Dirty Money

The far most common form of ‘money laundering,’ in line with the report occurs within Nevada sportsbooks, which are often used by illegal out-of-state bookies and illegal gambling that is online to help make wagers to help them balance their odds.

Also common is ‘minimal gaming,’ in which clients buy chips or deposit funds having a casino and then cash out after minimal play; an indication that is strong of.

The report cites numerous circumstances of financial foul play; there’s the North Carolina tobacco farmer who sold contraband cigarettes to crooks for resale in Canada, and plowed his ill-gotten gains to the slot machines at A indian casino before finding a casino check for the credit balance.

Then there is the Arizona man who solicited $4 million in funds claiming a gambler’s insider advantage, which he then used for gambling in Vegas while converting it into cash for their own use.

LVS’ $47.4 million Wrist Slap

You will find high-profile cases too, such as that of the Las Vegas Sands Corp and the drug that is chinese-Mexican, Zhenli Ye Gon.

In 2014 LVS ended up being forced to settle for $47.4 million with federal authorities to avoid prosecution after it allowed Ye Gon to wager $84 million at the Venetian. He was arrested in 2007 and appears accused of international drug trafficking.

LVS admitted it failed to properly scrutinize the source of Ye Gon’s funds.

There’s also the scenario of the Tinian Hotel & Casino and Casino in Northern Mariana Islands, A us dependency which last month was fined a record $75 million for violation of anti-money-laundering regulations. The casino was indicted for failing to register thousands of CTRs.

Of specific concern to Treasury was the expansion of US casinos abroad, which enables someone to establish a casino account in one country and access it in then another.

‘The most significant money laundering vulnerability at US casinos could be the potential for individuals to access foreign funds of debateable origin through United States casinos,’ it concludes, ‘and to use the funds for gambling and other individual or entertainment expenses, and then withdraw or move the remaining funds either in the United States or elsewhere.

AGA Denounces ‘Damaging’ IRS Proposals On Capitol Hill

Geoff Freeman, AGA president: ‘This could have implications that are enormous just for commitment cards in the casino industry but within the broader hospitality industry.’ (Image: casino

American Gaming Association (AGA) President and Chief Executive Geoff Freeman testified at an IRS hearing on Capitol Hill this week, voicing industry concerns over plans to reduce the tax reporting threshold for slot winnings from $1,200 to $600.

Also present during the hearing were casino executives and representatives that are tribal.

The opinion in the casino industry is the fact that proposals would be detrimental to customer experience, while increasing paper benefit gambling enterprises and disrupting the casino floor.

Casinos would also need expensive upgrades to their backend systems.

There are issues, in specific, about IRS recommendations that the proposed rule could be enforced through the tracking that is electronic of’ gambling habits through their customer loyalty cards.

‘ The video gaming industry knows no other industry in the country for which the IRS has issued regulations requiring the industry to deploy its client loyalty program for federal tax collection purposes,’ the AGA said recently.

‘Customer Would Walk’

‘we question the need to impose mandatory, across-the-board use of the player-tracking tool for tax reporting purposes,’ said Freeman while we recognize the IRS’ concerns and objectives. ‘Rather than mandating across-the-board use for tax reporting, we believe a more targeted approach is possible for reaching the IRS’ objective.’

‘The consumer would walk away,’ Freeman said in a post-hearing interview with the Las Vegas Review Journal. ‘ This would have enormous implications not simply for loyalty cards within the casino industry but in the broader hospitality industry: hotels, airlines and others.’

‘The decrease in the reportable limit could have a devastating effect on our business, and we strongly oppose the decrease,’ included John Canham, VP of casino operations at Hollywood Casino at Kansas Speedway.

The AGA has launched a petition that is online the proposals, already signed by 10,000 people. These signatures were from casino employees and customers alike, from across all 50 states, said Freeman.

The AGA represents operators and gaming suppliers that collectively support 1.7 million US jobs.

Illegal Gambling Advisory Board Established

Elsewhere, the AGA’s new Illegal Gambling Advisory Board held its meeting that is inaugural this.

This is not, as the title may suggest, a hotline offering advice on how to locate the best odds from illicit bookmakers, it’s, in reality, the opposite.

The board has been set up included in the AGA’s ‘Stop Illegal Gambling: Play it Safe’ effort, and seeks to differentiate the regulated gaming market from the ‘criminal networks that depend on unlawful gambling to fund violent crimes and drug and human trafficking.’

‘The Illegal Gambling Advisory Board, along side forthcoming partnerships, will ensure that unlawful gambling is brought to the forefront of public discussion so that we can clearly distinguish our highly regulated industry from the illegal enterprises that fund negative activities and tarnish our reputation,’ explained Brian Cohen, director of Ally Development for the AGA.

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