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The Guardian
3 days ago
- Business
- The Guardian
BlueBet fined for allowing man to gamble $700k despite ‘clear red flag behaviours'
A man who 'binge gambled' $40,000 in an 11-hour session was awarded VIP status by the bookmaker BlueBet and assigned a dedicated personal manager who encouraged him to keep betting and took a cut of his losses. A regulator has found it wasn't until the man had gambled $700,000 four months later and displayed multiple 'clear red flag behaviours' that BlueBet checked whether he could afford to be betting so much. The Northern Territory Racing and Wagering Commission (NTRWC), which regulates most online gambling companies in Australia, described Bluebet's conduct as 'unacceptable' and 'extremely concerning'. The regulator found that when the man complained about having run out of money to gamble, his VIP manager supplied him with bonus bets, deposit matches and placed funds directly into his account. Sign up: AU Breaking News email On one occasion, when the man's request for an inducement was initially declined, he requested his account be closed. Within two minutes, the VIP manager had placed $500 of bonus bets into his account. The man had already lost $4,000 that day. A federal parliamentary inquiry, led by the late Labor MP Peta Murphy, called for inducements like bonus bets to be banned. It warned they encouraged riskier bets, higher losses, and undermined harm minimisation messages. BlueBet, according to the regulator, prioritised the retention of a profitable customer over its legislated 'responsible gambling responsibilities'. It found no evidence the VIP manager had been trained in harm minimisation. 'Instead of monitoring the situation and engaging in meaningful responsible gambling actions, BlueBet chose to award the complainant VIP status and assign a dedicated VIP account manager, whose commission was tied to the complainant's net gambling revenue,' the NTRWC decision said. Bluebet told the regulator that it called the man for a 'responsible gambling check-in' after he repeatedly failed to place bets on his credit card due to insufficient funds. But the regulator found this call, which went unanswered, was prompted, in part, by 'payment processing issues' and not concern for his wellbeing. On the day after the phone call, the man continued gambling and requested bonus bets from his VIP manager. 'At no stage did the account manager make mention that BlueBet was concerned about his wagering activities from a responsible gambling perspective,' the NTRWC decision said. 'Rather, the VIP manager continued to encourage the complainant to wager with BlueBet through the promise of the provision of upcoming bonuses.' In the two weeks after the unanswered phone call, the man gambled close to $400,000 with BlueBet. The man's gambling account was eventually closed when he texted his manager to say he wished he 'had been pulled up earlier by you guys' as he had lost everything. Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion 'Given the numerous earlier red flags, it is extremely concerning that it took the complainant himself reaching out to BlueBet for his account to be closed,' the decision said. 'BlueBet missed multiple opportunities for timely and appropriate action and it's disappointing that the responsibility fell on the complainant rather than BlueBet taking a more assertive role in protecting the complainant from further harm.' Despite finding Bluebet's conduct to be extremely concerning, the bookmaker was fined $53,380, which is less than 10% of the $570,000 the man lost. This was the maximum penalty available to the commission. The Tasmanian independent MP Andrew Wilkie has previously called for financial penalties to be massively increased to ensure gambling companies are effectively punished for their misconduct. 'It should be an amount that hurts the company financially and hurts them so much that they think, 'heavens, we can't afford that again',' Wilkie said in 2023. 'It should hurt them so much that shareholders say to the board, 'that must not happen again'.' BlueBet merged with gambling company Betr earlier this year and no longer operates as a stand-alone brand. The conduct examined by the regulator took place during 2021. In Australia, Gambling Help Online is available on 1800 858 858. The National Debt Helpline is at 1800 007 007. In the UK, support for problem gambling can be found via the NHS National Problem Gambling Clinic on 020 7381 7722, or GamCare on 0808 8020 133. In the US, call the National Council on Problem Gambling at 800-GAMBLER or text 800GAM.s
Yahoo
12-06-2025
- Business
- Yahoo
‘Left With No Choice': Churchill Downs Inc. Moves To Relinquish Fair Grounds License In Louisiana
'Left With No Choice': Churchill Downs Inc. Moves To Relinquish Fair Grounds License In Louisiana originally appeared on Paulick Report. Doubling down on statements made last month about not opening Fair Grounds Race & Slots in New Orleans for a live horse racing meet this fall, Churchill Downs Inc.'s chief executive officer informed the Louisiana State Racing Commission the company plans to 'begin the next steps' to relinquish its live racing and OTB license, along with its slots and video poker licenses, at the racing commission's next meeting. In a June 9 letter to racing commission officials – obtained by the Paulick Report – Bill Carstanjen, the chief executive officer of CDI, said the loss of historical horse racing (HHR) revenue, following an adverse state Supreme Court ruling, and newly enacted legislation has forced the company's hand. Advertisement Related: Situation 'Dire': Fair Grounds May Not Run 2025-'26 Race Meet Without Legislative Help 'Given the legislature's ease with which it approved legislation that is directly adverse and harmful to the economic interests of Fair Grounds, the opposition by elected officials to engage in meaningful solutions in collaboration with the Fair Grounds, and the forthcoming adjournment of the legislative session,' Carstanjen wrote, 'CDI is left with no choice but to request an appearance before the LSRC to begin the next steps for voluntarily surrendering the racing license held by the Fair Grounds.' Carstanjen added: "This is not the path CDI wishes to proceed down, but the inaction from elected officials to offer any sort of compromise has made this the only possible outcome. ... Closing one of the nation's oldest racetracks, and the most important track in Louisiana, will be a devastating blow to Louisiana's equine industry and the New Orleans economy. It will also have an immediate detrimental impact on the livelihoods of the hundreds of employees, local vendors, and community surrounding the Fair Grounds." At an emergency meeting of the Louisiana commission on May 13, Ozair Shariff, an attorney for CDI, warned commissioners that without some form of legislative assistance to make up for the loss of HHR revenue, Fair Grounds would not apply for racing dates in the fall, calling the situation 'dire.' Reading from a statement at the May meeting, Shariff said: 'Fair Grounds' overall profitability is dependent on revenue generated from its OTB network, specifically video poker and historical racing – until last week (when the Supreme Court decision on HHR took effect). The elimination of 46 percent of the OTB revenue and an even more significant 74 percent of OTB EBITDA does not allow Fair Grounds to cover its required $9 million average annual maintenance operating capital. Faced with this reality, operating under the current status quo is no longer an option.' Shariff said efforts to engage members of the Louisiana legislature, whose session ends on June 12, was a priority, in hopes of getting some type of relief. Shariff was rebuked at the meeting by Louie Roussel III, a prominent New Orleans businessman who formerly owned Fair Grounds and is a longtime Thoroughbred owner and trainer. Roussel, who said he was speaking on behalf of Gov. Jeff Landry, addressed the commission, telling them, 'Do not allow these people to do this. … If they tell you they don't want to race, fine them $50,000 or $100,000 a day for every day they don't race. 'There will be no state subsidy for this racetrack,' Roussel added. 'None.' Apparently, Roussel was correct. Advertisement Legislators did pass two bills that Carstanjen said would be damaging to CDI's bottom line: the first expands the permitted number of video poker machines at truck stops (from 50 to 60) and bars (from three to four). The second bill would permit fixed odds wagering on horse racing. The legislation created a fund for Louisiana purses, but nothing for track operators. Following is Carstanjen's letter to the Louisiana State Racing Commission, in full: June 9, 2025 Mr. Edward J. Koehl, Jr., Chairman Louisiana State Racing Commission Mr. Stephen Landry, Executive Director Louisiana State Racing Commission 320 N Carrollton Avenue Suite 2-B New Orleans, Louisiana 70119-5100 RE: LSRC Meeting and Fair Grounds' Racing License Dear Chairman Koehl and Executive Director Landry: It is my understanding that soon after the Louisiana Legislature adjourns on June 12, 2025, an emergency meeting of the Louisiana State Racing Commission ("LSRC") will be conducted. This correspondence is Churchill Downs Incorporated's ("CDI") formal request to appear at the meeting to discuss the timeline and next steps concerning the license held by Churchill Downs Louisiana Horseracing Company, L.L.C. d/b/a Fair Grounds Racecourse & Slots ("Fair Grounds"). For the last few months, CDI has attempted to engage in good faith discussions with elected officials and various other industry stakeholders to find a path toward long term economic viability for the Fair Grounds after the recent decision of the Louisiana Supreme Court that resulted in the elimination of historical horse racing ("HHR"), and nearly half of the Fair Grounds' off-track betting ("OTB") revenues. To date, our efforts to engage elected officials have not led to meaningful discussions and, confoundingly, CDI's efforts have been met with a combination of reluctance, indifference, apathy, and even opposition. To make matters worse, the passing of HB 540 and 547 further negatively impacts the Fair Grounds' ability to remain competitive. House Bill 540 will lead to significant cannibalization of revenue from our OTB network in and around greater New Orleans, a network in which the Fair Grounds has heavily invested since 2005 - the only racetrack operator in the state to do so. House Bill 547 will shift wagering handle from current brick and mortar racetracks, OTBs, and advanced deposit wagering platforms, all of which provide revenues to track operators and local horsemen groups, to out-of-state bookmaking operators. Given the legislature's ease with which it approved legislation that is directly adverse and harmful to the economic interests of Fair Grounds, the opposition by elected officials to engage in meaningful solutions in collaboration with the Fair Grounds, and the forthcoming adjournment of the legislative session, CDI is left with no choice but to request an appearance before the LSRC to begin the next steps for voluntarily surrendering the racing license held by the Fair Grounds. The timing of the LSRC's meeting, and the date on which the Fair Grounds ceases its operations for not committing to run a 2025-2026 race meet, necessarily implicates the Louisiana Gaming Control Board ("LGCB") and the Fair Grounds' slot license, the surrender of which may not occur without the prior approval of the LGCB. To be clear, we expect to surrender our slot and video poker licenses. This is not the path CDI wishes to proceed down, but the inaction from elected officials to offer any sort of compromise has made this the only possible outcome. Fair Grounds provides nearly $30 million in taxes to local municipalities and the State of Louisiana, in addition to well over $34 million in purse money for its racing product. Closing one of the nation's oldest racetracks, and the most important track in Louisiana, will be a devasting blow to Louisiana's equine industry and the New Orleans economy. It will also have an immediate detrimental impact on the livelihoods of the hundreds of employees, local vendors, and community surrounding the Fair Grounds. However, the inaction of the legislature and others in a position to save this racetrack have forced us into the current situation. Please provide the details of the meeting at your earliest convenience. William C. Carstanjen Churchill Downs Incorporated, CEO cc: Mr. Jeff Landry, Governor Mr. Cameron Henry, Senate President Mr. Phillip DeVillier, Speaker of the House Mr. Jimmy Harris, Senator Mr. Bernard Chatters, President of the Louisiana HBPA Mr. Patrick Bernard, LSRC Commissioner Mr. Rock Bordelon, LSRC Commissioner Mrs. Leslie Bouie, LSRC Commissioner Mr. Larry Findley, LSRC Commissioner Mr. K.R. Finkelstein, LSRC Commissioner Mr. Nathan Granger, LSRC Commissioner Mr. Earl Landry, LSRC Commissioner Mr. Travis Miller, LSRC Commissioner Mr. Deano Thornton, LSRC Commissioner Mr. Vincent Tuminello, LSRC Commissioner Mrs. Katherine Winters, LSRC Commissioner This story was originally reported by Paulick Report on Jun 10, 2025, where it first appeared.
Yahoo
24-04-2025
- Business
- Yahoo
Landry pushes change to allow Louisiana Racing Commission director to still own racehorses
Louisiana's Racing Commission hired an executive director that partially owns race horses. (Canva image) Gov. Jeff Landry is backing a law change that would allow an appointed director of the Louisiana Racing Commission to continue owning racehorses, even though the director oversees their licensing as part of his government job. The proposed exception is included in House Bill 397, a sweeping piece of legislation that would also make dozens of changes to Louisiana's ethics code for elected officials and public employees. Stephen Landry became the commission's top staffer in 2024 after the governor appointed new members to its board. At the time, Stephen Landry, who is not related to the governor, had a partial ownership stake in two racehorses. Stephen Landry did not return a call made to his office Thursday. The commission is responsible for regulating horse racing and betting in Louisiana. It issues licenses to racetracks, training centers, off-track betting operations and racehorse owners like Stephen Landry. Commissioners can also suspend and withdraw racehorse owners' licenses it previously granted. The Louisiana Board of Ethics told Stephen Landry last year in an advisory opinion that state law is 'silent' on whether he can own racehorses while serving as the commission's executive director. State employees are prohibited from doing business with the agencies where they work, however. Using that logic, the ethics board told Stephen Landry he would not be able to apply for a racehorse owner's license when he needs a renewal in 2026 if he still serves as the commission's executive director. The change the governor is pushing would remove that barrier for Stephen Landry. Landry proactively sought the ethics board's opinion about his horse ownership after the Paulick Report, a horse racing news outlet, raised concerns about him taking the commission director's job. SUPPORT: YOU MAKE OUR WORK POSSIBLE 'How's he supposed to investigate and recommend to his commissioners potential changes to the state's breeders' incentive program objectively?' editor-in-chief Natalie Voss wrote about Stephen Landry in a 2024 commentary. 'What's he going to do if he's alerted [a co-owner of his horse] has a possible rule violation being investigated by the staff? How would he deal with an appeal of a disqualification coming from one of his active (or recent) ownership partners?' 'The Association of Racing Commissioners International model rules expressly prohibit this, both for employees of a commission (like the executive director) or for employees under the executive director,' Voss added. The racing commission's chairman, Ed Koehl, told Stephen Landry when he took the executive director position that he could own horses without any fear of conflict, Stephen Landry's attorney, Dane Ciolino, wrote in a letter to the ethics board. The commission, and not the executive director, votes on whether to grant or withdraw an ownership license, Ciolino said. Under a law approved last year, all 13 state racing commissioners who decide on ownership licensing can own racehorses that compete in Louisiana. Previously, only three of the 13 commissioners were allowed to own racehorses. This year's ethics bill, sponsored by Rep. Beau Beaullieu, R- New Iberia, reiterates that Louisiana Racing Commission members, in addition to the executive director, can own horses that race in Louisiana. Beaullieu's proposal cleared its first legislative hurdle Wednesday when it passed the Louisiana House and Governmental Affairs Committee. It's goes next before the full House of Representatives. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
