Dutch authorities have apprehended a suspect linked to the ZKasino scam. The arrest was made on 29 April, with the suspect, a 26-year-old man, facing charges of fraud, embezzlement, and money laundering.

The ZKasino platform, which initially presented itself as an innovative blockchain-based gambling platform, has been under scrutiny for its dubious operations. The platform promised investors a return on their investments within 30 days, a promise that was never fulfilled. The smart contract associated with the platform suggested that there was never an intention to return the funds, raising red flags among the investor community.

The Fiscal Information and Investigation Service (FIOD) seized assets worth over 11.4 million euros ($12.2 million) during the arrest. The seized assets include cryptocurrency, real estate, and luxury cars. This marks the first arrest in the ZKasino fraud case, where investors have reportedly lost at least $33 million in digital assets.

The platform went live on April 20, attracting over 10,515 Ether (ETH) from more than 10,000 investors. However, investor concerns escalated when an on-chain transaction revealed ZKasino moving all 10,515 ETH into the Lido staking protocol. Additionally, the platform altered the wording on its website, removing a statement that assured investors that their ETH “would be returned.”

Adding to the controversy, ZKasino announced in a March post that it had closed a Series A investment round at a $350 million valuation. The platform claimed backing from crypto exchange MEXC and venture firm Big Brain Holdings, among others. However, Big Brain Holdings later clarified that it had not invested in ZKasino, labeling the platform as “fraudulent.”

While the identity of the suspect remains unconfirmed, speculation is rife within the crypto community. The suspect’s detention has been extended by 14 days for further investigation. As the case unfolds, risks and challenges in the rapidly evolving world of online gambling and cryptocurrency need to be continuously evaluated. The ZKasino case is a cautionary tale for investors, highlighting the importance of due diligence and regulatory oversight in the crypto space.

The latest  sportsbook report for the first quarter of 2024 reveals a significant shift towards real-time betting among sports bettors. This trend, which boosts engagement and offers higher margins and faster capital turnover for operators, underscores the profitability of live betting in the sports betting industry. 

According to the report, the transition from desktop to mobile betting continues to accelerate, with mobile devices now accounting for 90 percent of Gross Gaming Revenue (GGR), up from 86 percent a year ago. This growth highlights the crucial role of mobile-friendly betting solutions in the market. Operators focusing on mobile integration and user experience are well-positioned to capture a larger market share, reflecting the changing dynamics in consumer behaviour. 

The report also said that traditional sports remain popular among bettors, with some shifts in preference. Football continues to lead in revenue, while tennis has moved ahead of basketball to claim the second spot. The Super Bowl's influence is evident, as American football has entered the top five, showcasing the impact of major events on betting patterns. Ice hockey maintains its strong appeal, indicating consistent interest from the betting community. 

SOFTSWISS Sportsbook has shown remarkable growth in Q1 2024. Trading volume increased by 246 percent compared to Q1 2023, and revenue surged by 251 percent year-over-year. The platform also recorded consistent month-on-month growth of 136 percent in Q4 2023, highlighting its rising popularity and efficiency. 

Alexander Kamenetskyi, Director of SOFTSWISS Sportsbook, remarked, “The trends we observe in the first quarter of 2024 emphasise the adaptability and growth of our platform while highlighting the critical dynamics of player preferences and technological advancements.”  

The Q1 2024 report from SOFTSWISS Sportsbook underscores significant trends in the , particularly the growing dominance of live and mobile betting. As the platform continues to expand and adapt to changing market demands, its focus on enhancing user experience and providing innovative tools for operators positions it for sustained success in the dynamic sports betting landscape. 

In a recent gathering of industry experts, the closing panel of "Market Expert Insights" discussed cross-border advertising bans in the gambling industry. The panel featured Robert Zammit, Partner at WH Partners; Quirino Mancini, President of the International Masters of Gaming Law (IMGL); Joerg Hofmann, Senior Partner at Melchers Law; and Cosmina Simion, Managing Partner at Simion & Partners.

Robert Zammit addressed the "headache" that marketing teams face when dealing with the diverse legal requirements of different jurisdictions. Quirino Mancini, President of IMGL, lambasted the country's “draconian” advertising ban on gambling operators as "pure legal nonsense." He criticised the Cinque Stelle (Five Star) Movement's hasty implementation of the ban, which was enforced by AGCOM, a telecoms watchdog with no prior experience in gambling regulation. "It was something that came out of the blue," Mancini said, emphasising the lack of research and stakeholder consultation.

Joerg Hofmann, Senior Partner at Melchers Law, pointed out the discrepancies between online and land-based gaming in the wake of these advertising restrictions and also highlighted the hypocrisy in the of these regulations, where operators regularly find loopholes to indirectly promote their brands. Cosmina Simion, Managing Partner at Simion & Partners, shared insights from Romania, where political elections and public opinion have led to increased taxes and restrictions on the gambling industry. "It's counterproductive to attack an industry which you are taxing more by putting more bans when you want their taxes at the end of the day," Simion argued, pointing out the broader impact on various industries, not just gambling.

The panellists agreed that the industry itself bore some responsibility for the current state of affairs. "The industry was the one that just got busy making money... and all of a sudden we realized that this was a bit too much," Mancini admitted. He called for increased dialogue between the industry and regulators to overcome mutual distrust and find balanced regulatory solutions.

A "lose-lose" situation

As the discussion concluded, the panelists underscored the need for evidence-based regulations and the importance of community messaging in advertising. "You can talk about the white market, the compliant market, the responsible market, as opposed to doing nothing," Simion urged, in efforts to avoid blanket advertising bans which are ultimately a “lose-lose” situation.

The panel highlighted the complex and often contradictory nature of cross-border gambling advertising regulations. It called for a more harmonized approach that balances the interests of operators, regulators, and the public while promoting responsible gambling practices. As the industry continues to navigate this challenging landscape, the insights from this panel serve as a beacon for future regulatory discussions.

The event was hosted by WHPartners and Payhound, with SBC as the strategic partner and sponsored by Sumsub.

Ascendancy of DraftKings and FanDuel in New Jersey’s online casino sector

DraftKings and FanDuel have emerged as frontrunners in New Jersey, contributing to the state’s second-highest monthly revenue ever. The revenue figures for New Jersey’s online casinos reveal an impressive total of $187.9 million, falling just short of March’s record-breaking $197.2 million.

This figure, while being the second-highest, also marks an 18.2 percent increase year-over-year. In the first four months alone, New Jersey has amassed over three-quarters of a billion dollars, totalling $750.7 million. This is a significant 21.2 percent increase compared to the previous year, which saw a total revenue of $1.92 billion. The state is currently on track to exceed $2.2 billion in revenue this year, surpassing the single-year record of $1.92 billion set in 2023 and the previous record of $1.66 billion in 2022.

In terms of taxation, the state has collected nearly $113 million, with $28.3 million accrued in April alone. The tax rates in New Jersey vary depending on the type of gaming venue, with retail casinos taxed at 8 percent, online sports betting at 13 percent, retail sports betting at 8%, and online casino play at 15 percent.

Examining the top licencees, Golden Nugget Atlantic City leads the pack with over $53 million in revenue. However, Caesars Interactive was the only licensee that failed to meet the $1 million mark.

DraftKings led with $39,238,978, closely followed by FanDuel with $39,063,216. Together, DraftKings and FanDuel accounted for nearly 42 percent of the state’s revenue, outperforming the combined total of the next seven online casinos. Five other online casinos, including BetMGM, Borgata, and Caesars Palace, reported revenues in the eight digits. On the other end of the spectrum, Unibet, which is withdrawing from the United States, reported a loss of more than $6,000, while Jackpot City, a newer online casino, reported just over $25,000 in revenue.

The tax structure for online gambling in New Jersey is quite straightforward and is designed to ensure fair and regulated gambling activities. Here are the key points:

Tax on Winnings: All gambling winnings, including those from online sources, are considered taxable income. Therefore, you are required to report these winnings to the Internal Revenue Service when you file your tax returns.

Tax Rates: The tax rates vary depending on the type of gaming venue:

✅ Retail casinos are taxed at 8 percent.

✅ Online sports betting is taxed at 13 percent.

✅ Retail sports betting is taxed at 8 percent.

✅ Online casino play is taxed at 15 percent.

Thresholds for IRS Notification: The IRS is not notified unless you win an amount that exceeds certain prescribed thresholds. These thresholds vary depending on the form of gambling that generated the win.

State Tax Withholding: For federal taxes, NJ sportsbooks are required to withhold 28 percent of the winnings if you win $5,000 or more. On the state level, if you win more than $10,000 in a single jackpot, the payer will withhold 3 percent to comply with state laws.

Income Tax Brackets: On the state level, there are seven income tax brackets, ranging from 1.4 percent for the lowest income earners up to 10.75 percent for those at the top of the scale.

Group Gambling Winnings: If a group of people pool their resources for gambling, the paying entity will submit Form 5754 to the IRS when they are filing the W-2G. The IRS will then know that multiple people will be responsible for individual portions of the income.

Penalties for Non-Payment: If you fail to pay taxes on your gambling winnings in NJ, the Internal Revenue Service will apply a Failure to Pay penalty. For each month that you are delinquent, they will increase the amount that you owe by .05 percent. However, the accumulated penalty maxes out at 25 percent.

Gamingtec exec weighs in on the challenges, opportunities of Asian market  

Gamingtec, a provider of iGaming solutions, is marking its debut in the market. Speaking with SiGMA News during the ASEAN Gaming Summit, Andrei Beu, Commercial Director of Gamingtec, shared insights into the company’s first event in Asia. "This is our first event in Asia, [and we are] aiming to establish a presence and introduce our brand," Beu stated.  

Gamingtec is a global company offering white label and turnkey solution, focusing on customization and partnership.  

Beu told SiGMA News that the move into Asia presents both challenges and opportunities for Gamingtec.  

"We see ourselves as a global company without boundaries. We are here to establish a foothold and penetrate the Asian market," Beu noted. He highlighted the company's live operations in Japan and the complexities of navigating its highly regulated environment. "Japan has great potential, but compliance with government regulations is crucial for success," he said. 

Discussing the regulatory environment in the , Beu was optimistic. "The Philippine iGaming scene is very welcoming, with high availability for licences. We hold a PAGCOR licence, and the regulatory process was straightforward compared to Europe or the US," he commented.  

Beu emphasised that Gamingtec is prepared to comply with any regulatory changes, ensuring a stable and conducive environment for their partners. 

Looking ahead, Beu expressed confidence in the growth of the iGaming industry in Asia.  

"The market is growing steadily and consistently. Like Latin America, where regulation spurred immense growth, Asia is poised for significant development," he observed. Beu foresees more markets becoming regulated and attracting investment, creating a vibrant iGaming ecosystem in Southeast Asia. 

"Expect to see more of Gamingtec in Southeast Asia. We aim to be perceived as a successful provider and partner," Beu concluded. 

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