SPORTS BETTING - IMGL · Sports and betting have always had an uneasy but logical connection. Placing a wager on a sporting event gives a spectator an added personal interest in

VOLUME 9 NUMBER 2FALL 2016

Conduct and Management in the 21st Century

IMGL Regulator of the Year

Giving Games of Skill a Chance

THE EVOLVING RELATIONSHIP BETWEEN GAMBLING AND PROFESSIONAL SPORTS

SPORTS BETTINGSPORTS BETTING

MESSAGE FROM THE PRESIDENT

In April the IMGL held its Annual Spring Conference in San Francisco which was well received. I would like to thank the co-chairs of the conference committee, John Maloney and John Roberts, for their timeless efforts in putting together a first class program including an appearance by the former Mayor of San Francisco.

One of the highlights of each year is the IMGL reception at G2E and the presentation of the “Regulator of the Year Award” – North America. The award is given in recognition of the regulator’s overall contribution to gaming. IMGL is proud to announce this year’s Regulator of the Year, Allen Godfrey, Executive Director of the Mississippi Gaming

Commission. Allen has been the Executive Director since 2011 and has been instrumental in guiding the Mississippi gaming industry through continued growth notwithstanding several natural disasters including Hurricane Katrina. This award is given annually based upon not only the recipient’s contributions to the gaming industry but his overall work as a regulator and a demonstration of service to the community. Congratulations Allen.

The IMGL fall conference will be held on October 23-25, 2016, in Dublin, Ireland. Co-Chairs of the conference, Joe Kelly and Sean McGuiness, have put together a very strong program which will include panels on Sports, AML in Europe, the United States and Asia, Daily Fantasy Sports in the United States and Europe and the Brexit and how it will impact the gambling industry.

The IMGL Masterclasses continue to be a popular and sought after presence at gaming conferences throughout the world. Recently, the National Council of Legislators from Gaming States (“NCLGS”) asked the IMGL to create a regulatory panel at its annual conference in Boston, Massachusetts. Thanks to Marc Ellinger and Bob Stocker for putting together an outstanding panel on short notice. As a result, the NCLGS wants the IMGL panel to be part of their conference next year. The following is a list of Masterclasses scheduled for the rest of this year:

DATE EVENTSeptember 8, 2016 KPMG – eGaming Summit Isle of Man

September 14-15, 2016 European Association for the Studies of Gambling – Lisbon, Portugal

October 30-November 3, 2016 International Association of Gaming Regulatory – Sydney, Australia

November 15-18, 2016 Malta iGaming Seminar (MIGS) – Malta

November 15, 2016 MGS Macau Gaming Show

November 22-23, 2016 Eastern European Gaming Summit – Sofia, Bulgaria

November 29, 2016 OFXG TLV + GO Gaming International Summit, Tel Aviv

Finally, the IMGL has set the dates for its 2017 Spring Conference in Miami, Florida, for May 10-13 at the Turnberry Isle Resort. Our co-chairs for the conference are Marc Dunbar and Daniel Wallach. It promises to be another great conference in keeping with the IMGL’s educational mission.

Michael E. ZatezaloPresident

Canadian Gaming Business Magazine is owned and published by:

Publisher Chuck Nervick [email protected]

Editor Michael D. Lipton Q.C. [email protected]

Advertising Sales Chuck Nervick [email protected]

Senior Designer Annette Carlucci [email protected]

Designer Jennifer Carter [email protected]

Production Manager Rachel Selbie [email protected]

Circulation Manager Maria Siassina [email protected]

Proudly published by:

Publisher IMGL PresidentChuck Nervick Michael Zatezalo [email protected] [email protected]

Editor IMGL Director of EducationSean Moon Morten [email protected] [email protected]

IMGL Editor of Canadian Gaming Lawyer Michael D. Lipton [email protected]

Canadian Gaming Lawyer is published twice a year as a joint venture between Canadian Gaming Business Magazine and the International Masters of Gaming Law (IMGL).

For advertising information, Contact Chuck Nervick 416-512-8186 ext. [email protected]

For editorial information, For editorial information: Contact Michael D. Lipton at [email protected]

IMGL Officers


Kegler, Brown, Hill & Ritter Co.,L.P.A.

Columbus, Ohio +1 614 462 5400

[email protected]

Jamie NettletonFirst Vice PresidentAddisons LawyersSydney, Australia+61 2 8915 1030

[email protected]

D. Michael McBride III Second Vice PresidentCrowe & Dunlevy, P.C.

Tulsa, Oklahoma+1 918 592 9824

[email protected]

Quirino ManciniSecretary

Tonucci & PartnersRome, Italy

39 06 322 [email protected]

Justin FranssenAssistant SecretaryKalff Katz Franssen

Amsterdam, Netherlands31 20 67 60 780

[email protected]

Marc H. EllingerTreasurer

Blitz, Bardgett & Deutsch, L.C.Jefferson City, Missouri

+1 573 634 [email protected]

Marie JonesAssistant TreasurerFox Rothschild LLP

Philadelphia, Pennsylvania1-609-572-2259

[email protected]

Douglas L. Florence, Sr.Vice President, Affiliate Members

AvigilonLas Vegas, Nevada

[email protected]

Keith C. MillerVice President, Educator

Drake University Law School Des Moines, Iowa+1 515 271 2071

[email protected]

Joerg HofmannImmediate Past President

MELCHERS law firmHeidelberg, Germany

[email protected]

Morten RondeDirector of Education and Association Development

International Masters of Gaming Law

[email protected]

45 208 87210

Sue McNabbExecutive Director


[email protected]

1-702-375-5812

Jamie NettletonFirst Vice President


www.gaminglawmasters.com �

D. Michael McBride IIISecond Vice President


Justin FranssenAssistant Secretary


Marie JonesAssistant Treasurer

Douglas Florence Sr.Vice President, Affiliate Members



Morten RondeDirector of Education andAssociation Development

INTERNATIONAL MASTERS OF GAMING LAW


AGLSpring2016_Layout 2 3/21/16 2:09 PM Page 2

2 | CANADIAN GAMING LAWYER MAGAZINE

IMGL Officers


Kegler, Brown, Hill & Ritter Co.,L.P.A.

Columbus, Ohio +1 614 462 5400

[email protected]

Jamie NettletonFirst Vice PresidentAddisons LawyersSydney, Australia+61 2 8915 1030

[email protected]

D. Michael McBride III Second Vice PresidentCrowe & Dunlevy, P.C.

Tulsa, Oklahoma+1 918 592 9824

[email protected]


Tonucci & PartnersRome, Italy

39 06 322 [email protected]

Justin FranssenAssistant SecretaryKalff Katz Franssen

Amsterdam, Netherlands31 20 67 60 780

[email protected]


Blitz, Bardgett & Deutsch, L.C.Jefferson City, Missouri

+1 573 634 [email protected]

Marie JonesAssistant TreasurerFox Rothschild LLP

Philadelphia, Pennsylvania1-609-572-2259

[email protected]

Douglas L. Florence, Sr.Vice President, Affiliate Members

AvigilonLas Vegas, Nevada

[email protected]


Drake University Law School Des Moines, Iowa+1 515 271 2071

[email protected]


MELCHERS law firmHeidelberg, Germany

[email protected]

Morten RondeDirector of Education and Association Development


[email protected]

45 208 87210



[email protected]

1-702-375-5812

Jamie NettletonFirst Vice President


www.gaminglawmasters.com �

D. Michael McBride IIISecond Vice President


Justin FranssenAssistant Secretary


Marie JonesAssistant Treasurer

Douglas Florence Sr.Vice President, Affiliate Members



Morten RondeDirector of Education andAssociation Development

INTERNATIONAL MASTERS OF GAMING LAW


AGLSpring2016_Layout 2 3/21/16 2:09 PM Page 2

COVER STORY

Professional sports’ evolving morals on gambling

HEDGING THEIR BETS:

BY NEIL LINDEN


COVER STORY

Major League Baseball was tainted during the 1919 World Series when members of the Chicago White Sox were accused of intentionally losing games in exchange for money from gamblers. The scandal threatened the very nature of sports. If gamblers could inf luence the outcome of an event as important as the baseball World Series fans would lose interest and the entire model of professional sports would fail. Baseball acted quickly to regain the public trust and save the reputation of the Major Leagues. First they appointed the f irst ever sports commissioner to run the league with a new set of rules. Then each of the eight players alleged to be involved in the scandal was placed on the “ineligible list” and banned from baseball forever by the newly appointed Commissioner. Major League Baseball Rule 21(d) was enacted which clearly forbids

Sports and betting have always had an uneasy but logical connection. Placing a wager on a sporting event gives a spectator an added personal interest in the outcome of the game. However, the integrity of the event itself is at risk if the size and scope of the wagers influence the outcome. Sports had for many years drawn very strict lines between it and gamblers. Even as performance-enhancing drugs threatened professional sports ethics, the most prohibitive rules focused on betting. Recently, social wagering and the pace of evolving technology has changed the relationship between sports and betting bringing the two together in ways very recently not imagined and eroding the censure sports once had for gambling.

FALL 2016 | 5

COVER STORY

betting on baseball and was placed in every baseball clubhouse in an at tempt to r id baseball of future gambling scandals with a potential pen a lt y of ba n i sh ment for l i fe from the sport by being placed on Baseball’s ineligible list.

Seventy years later in 1989, one of baseball ’s greatest stars Pete Rose; the player with the most hits in the history of the sport was investigated f o r b e t t i n g o n M a j o r L e a g u e Baseball games. As a result of the investigation, Rose then a Manager for the Cincinnati Reds accepted a permanent place on Basebal l ’s ineligible list. Rose was given the option of applying for reinstatement after one year of the ban had been served. By 2016, several attempts by Rose to be reinstated have been refused leaving the Major League Baseball ‘Hit King’ out of baseball and out of the Baseball Hall of Fame as the cost for betting on baseball.

The Basketba l l A ssociat ion of A mer ica t he forer u n ner to t he Nat iona l Basketba l l A ssociat ion (NBA) had a Toronto franchise for one season in 1946-1947. The team disbanded a f ter the season for a number of reasons but left the City and Canada without a professional basketball franchise. By the 1990’s the Cit y of Toronto was back in the running for an NBA expansion franchise. The NBA objected to the fact that Ontario’s Provincial Lottery

Agency had NBA games as part of its Lottery gaming program. The program known as Sports Select allowed wagering on NBA games as well as hockey, soccer and baseball. Sports Select was a provincially run lottery allowing a parlay of at least three games per ticket. The NBA rules str ictly rejected bett ing on NBA games and the ex istence of the Provincial Lottery Sports Select program threatened to have the NBA reject Canadian ex pansion. The Provincial Lottery Agency pulled NBA games in exchange for yearly payments by the Toronto Raptors, the new NBA team that st a r ted playing in 1995.

By the 1980’s sports gambling began to change. Baseball Rotisserie or fantasy pools began to pop up in off ices and high schools. The concept was that players drafted a fantasy team of players and over the course of the season those teams whose players performed best in certain categories would win the “pot”. These social pools did not have the stigma of bookies or loan sharks attached to them and became a fun activity with friends and often even had parent-child teams in the pools. These pools were not high stakes, they increased interest in the sports and were very social in nature. In the pre-internet era these pools were season long marathons that required patiently reviewing newspaper box

scores and often had hand tabulated results.

The arrival of the internet brought the biggest changes to sports betting. Fantasy games spread to football and fantasy sports became its own industry with magazines, websites and television shows. The real-time nature of the internet and the advent of mobi le phones w ith internet access made spor ts results not a six-month season endeavor but an instant gratification nightly and even bi-nightly hits by playing the West Coast games separately. The United States Government’s 2006 ban on internet poker created a vacuum for fantasy sites and the fantasy concept took off to the point where now over twenty companies, including major newspapers, magazines, and even media corporations like CBS operate fantasy websites. These unregulated bet t ing sites in the g rey market using their sports and superstars to make prof its led the professional sports leagues to consider gambling a potential lost revenue stream. By 2010, the NBA and the Ontar io Lottery and Gaming Corporation reached an agreement to bring the NBA back to the spor t s bet t ing lottery by then renamed Pro-Line. Fur ther, the N BA’s s t a nce had changed so dramatically that the League purchased an equity stake in one of the biggest online fantasy sites . In 2 014, Adam Si lver the

“The arrival of the internet brought the biggest changes to sports betting. Fantasy games spread to football and fantasy sports became it own industry with magazines, websites and television shows. . . . Unregulated betting sites in the grey market using their sports and superstars to make profits led the professional sports leagues to consider gambling a potential lost revenue stream.”


COVER STORY

Commissioner of the NBA wrote an editorial in the New York Times, which stated: “Times have changed…sports betting should be brought out of the underground and into the sunlight where it can be appropriately monitored and regulated.”

Baseball once the leader of anti-betting rules launched its own smart phone application, which had several fantasy and game outcome based pools created and run by Major League Baseball itself. Baseball saw an opportunity to reach younger fans and turn what was considered by many to be a slow game into a more dynamic fan experience where fans can bet as granularly as per outcome of each pitch.

B a c k i n C a n a d a , a F e d e r a l Government Bill which had received all-party support, to allow for single game betting on sporting events in

Canada died in the Senate in 2015. The issue though is not closed as many see single game wagering as an opportunity to further fund charities and will re-draft the Bill and try again. In June 2016, the National Hockey League (NHL) did the once unthinkable and became the f irst professional sports league to grant the gambling capital of Las Vegas, Nevada a spor t s f ranchise. The Las Vegas NHL team will play its home games in the gambling Mecca down the street from some of the largest Casinos, Sports Books and hardcore gamblers. The NHL hopes to use sports betting as a tool to lure American tourists to its Las Vegas NHL team home games while they visit Las Vegas.

Whether led by technology, the erosion of any soc ia l s t ig ma or the appeal to a younger fan base

for whom just watching the game was not enough excitement , the relat ionship bet ween spor ts and gambling has shifted considerably in a relatively short period of time. Sitting in the seats of live sporting event one marvels at the number of fans who rarely look up from their phones busy monitoring their other nightly investments across the world of sports. Perhaps they could look up brief ly enough to ref lect, forgive and finally allow Pete Rose entry into the Baseball Hall of Fame. CGL

Neil Linden JD, has held senior positions at the Ontario Lottery and Gaming Corporation, The Alcohol and Gaming Commission of Ontario and its predecessor the Gaming Control Commission, as well as at the Information and Privacy Commissioner/Ontario and the Financial Services Commission of Ontario. Neil can be contacted at [email protected]

At Dickinson Wright, we guarantee a full house of experienced gaming attorneys - more than 25 lawyers who actively represent gaming interests from strategically located offices in Washington, D.C., Toronto, Phoenix, Nashville, Detroit and Lansing.

We provide a full range of highly sophisticated legal services addressing the complex array of commercial gaming issues, as well as issues unique to Native American and First Nations casinos and related facilities - another reason Dickinson Wright has earned its superior international reputation.

Contact: Michael D. Lipton Q.C. at [email protected] W. Stocker II at [email protected] J. Whittlesey at [email protected]

Pictured here, clockwise from top left:Robert W. Stocker II, Michael D. Lipton,Peter H. Ellsworth, Dennis J. Whittlesey

Robert W. Stocker II and Michael D. Lipton are Tier I gaming attorneys in

Chambers Global and all four lawyers pictured here are listed in Best Lawyers.

Why take a chance?

FALL 2016 | 7

“Conduct and Management” in the 21st Century Why is the Mullet Still Considered a Good Fashion Statement?

Section 207 of the Criminal Code (Canada) includes a phrase that has bedeviled the gaming industry in Canada. Section 207 provides for exemptions from the general prohibition against gaming activities in Part VII of the Criminal Code – but an authorized person (Crown corporation, licensed charity) must “conduct and manage” the “lottery scheme” for the exemption to be applicable. While others may “operate” the lottery scheme, only that authorized person may “conduct and manage” the lottery scheme.

FEATURE

But what does “conduct and management” mean? How is it different from “operate”? And what is a “lottery scheme”? Where a “lottery scheme” is “conducted and managed” in a facility such as a bingo hall, charitable gaming centre or a casino, where does “conduct and management” stop? Where does “operate” start? Are these concepts linear? Or iterative?

The Criminal Code is federal legislation that applies across Canada. Parliament has

the exclusive constitutional jurisdiction to enact criminal legislation – but each province has constitutional jurisdiction for the administration of criminal law in the respective province. Administration of criminal law has included the interpretation of the Criminal Code, subject to the Supreme Court of Canada’s jurisdiction to establish a national approach to an interpretation through litigation.

This constitutional reality means that there is a series of interpretations that are not always easy to reconcile from one province to another. And, those who are interpreting the provisions too often have only a glancing understanding of gaming and the full factual context. Furthermore, it is sometimes forgotten that the Criminal Code is a public statute and not the exclusive purview of only some in the legal profession.

BY DON BOURGEOISBY JACK I. TADMAN AND NIC SULSKY


building and what amenities are included in the facility;

• Operational decision-making – who makes operational decisions, including staffing, f loor layout and similar matters?

• Residual decision-making – where there is an operator in place, who has residual decision-making authority with respect to the lottery scheme? The operator? Or the person who is to conduct and manage the lottery scheme?

• Control of funds – who controls the funds from the lottery scheme? Who makes the deposits? How are the funds handled? Who pays the bills arising from the lottery scheme? If there is an operator, how is the operator compensated?

• Rules of play – who makes the rules of play?

How each of these factors play out is not a simple process and involves a balancing of the factors. In the 1990s, ownership of the building and the gaming equipment was considered necessary in some provinces. But in the 21st century, how important are “bricks and mortar” for many businesses? Do Amazon or Kobo need a bricks and mortar store to sell a book to a customer? Do they need to “conduct and manage” their own credit card payment system to get paid? Do they need a customer to attend a bricks and mortar store to find out what that customer wants and to manage their future purchasing or inventory? Perhaps ownership of the “customer” or the information about the customer is more important today than ownership of the building in which the customer plays the lottery scheme.

The times of the mullet and disco have come and (thankfully) gone. While interpretation of the Criminal Code should not be a fashion or artistic statement, at the same time, interpreting and applying the Criminal Code needs to keep-up with the times. Technology, and the use and analysis of data is a much more important dynamic

in Canada than it was in the 20th century and will continue to be so.

Technology and data analysis are not the equivalents of the mullet and disco. They are critical to business in the 21s century and to how lottery schemes are conducted, managed and operated not only in Canada but throughout the world. They are, very much, the “bricks and mortar” of the 21st century. But their importance does not seem to have been taken fully into account.

It is axiomatic that the “law always speaks”. The law is not static but is intended to be interpreted and applied in the times in which people live, work and play – and, yes, gamble. Parliament has embedded that principle of law in the federal Interpretation Act. Section 10 provides that:

The law shall be considered as always speaking, and where a matter or thing is expressed in the present tense, it shall be applied to the circumstances as they arise, so that effect may be given to the enactment according to its true spirit, intent and meaning.

It is time for the reality of the 21st century to be taken into account in understanding what is “conduct and management” and “operate”. We no longer live in times where the mullet is a positive fashion statement or disco an artistic statement. How we interpret and apply the Criminal Code also needs to keep up with the times. CGL

Don Bourgeois is a Principal of GRG Advisors and has a private practice of law. He has over 20 years of experience in the gaming sector, primarily in executive positions, in all aspects of the gaming sector, including casinos, charitable gaming, lottery, internet gaming, and horse racing. He was most recently General Counsel for the Alcohol and Gaming Commission of Ontario, where he was also Deputy Registrar. He is the recipient of several awards and honours, including The Amethyst Award for Outstanding Achievement by Ontario Public Servants, AMS/John Hodgson Award in recognition of his leadership, development of the law and service in the charitable arena, The Queen Elizabeth II Diamond Jubilee Medal, and the Canadian Gaming Association’s Industry Leadership and Outstanding Contribution. He can be reached at [email protected].

FEATURE

Another critical dynamic comes into play. The last time the Criminal Code was substantially amended and the distinction between “conduct and management” and “operate” became relevant for any significant purposes was when the mullet was considered a positive fashion statement and disco was seen as a legitimate form of dance.

Perhaps it is time for a re-examination of what is “conduct and management” in the 21st century. But first, it may be useful to understand how the courts in the 20th century considered “conduct and management” – and, interestingly, the courts rarely considered what is meant by “operate” for purposes of section 207.

The case law is not extensive and often arose out of “illegal” gaming activity, not lawful and regulated gaming. There are, though, a number of principles that can be derived from the case law.

The first principle is – “it depends”. This principle is not surprising to most lawyers – the facts are important to the interpretation of law and how that law is applied to a fact situation. What is “conduct and management” will depend upon the facts and those facts include the characteristics of the “lottery scheme”. What is necessary for conduct and management in one lottery scheme in a particular fact situation may not be for another lottery scheme in a different fact situation.

The second principle is that the factual context involves a number of key factors, none of which alone are decisive or conclusive. The courts have looked to several factors in applying section 207:

• Proprietary interest – who has the proprietary interest? What is the nature of the interest by the person who is conducting and managing the lottery scheme?

• Strategic decision-making – who makes the strategic decisions related to the lottery scheme? This person may be different from who makes the strategic decisions related to the

FALL 2016 | 9

FEATURE


North America 2016Each autumn, International Masters of Gaming Law (IMGL) recognizes outstanding regulators based on stringent standards, including preeminence in the regulatory field and their noteworthy contributions to the overall body of regulatory work.

The regulators are selected from various jurisdictions internationally based on a rigorous nomination and review process. The categories are Europe, North America, South and Central America, Australasia, Indian Country, and Evolving Jurisdictions. A regulator is not necessarily chosen from each category in each year. They are selected only if they receive the required nomination and meet the demands of the review procedure.

The specific criteria for the selection process include that the overall body of work as a regulator be exceptional and that the regulator make contributions to the gaming industry as a whole while demonstrat ing noteworthy achievements in the regulation of the industry. The nominee must also provide a stable regulatory environment in the jurisdiction, be identif ied as a person of high integrity, and demonstrate service to the community.

Through this annual select ion process, IMGL continues its mission

of “advancing gaming law through education” by selecting regulators who ref lect a similar mission in their management style while serving as role models in the regulatory environment. This year’s sole recipient of the award for IMGL Regulator of the Year certainly ref lects these characteristics in his professional approach to the task of regulating a challenging gaming market. IMGL is proud to announce the Regulator of the Year, North America: Allen Godfrey, Executive Director of the Mississippi Gaming Commission. Director Godfrey joins last year’s notable honorees, Mark Ostrowski, Regulator of the Year, North America; Jenny Williams, Regulator of the Year, Europe; and Manuel San Roman Benavente, Regulator of the Year, South and Central America.

Allen Godfrey is a Certified Public Accountant and holds a Bachelor o f Sc ience deg ree i n Busi nes s Administrat ion from Mississippi State University. Mr. Godfrey began

his career in gaming in 1991 as a Tax Auditor with the Mississippi Department of Revenue. During this time, the responsibility of regulating gaming in MS fell under the direction of the Mississippi State Tax Commission, Department of Revenue, which was the regulatory body for casinos in Mississippi prior to the formation of the Mississippi Gaming Commission in 1993. With the Tax Commission, he was responsible for developing internal controls and auditing the casinos

BY SUE MCNABB

Regulator of the Year, North AmericaAllen Godfrey, Executive DirectorMississippi Gaming Commission

Regulator of the Year,


FEATURE

during the early days of gaming in Mississippi. Mr. Godfrey states, “I was fortunate to be in the division that was tasked with the regulation of this new industry. I worked closely with the industry professionals and developed a working relationship with them as the market grew.” He further states of this period in his career that he enjoyed the early years, “as the learning curve was straight up for me and many others. It was an exciting time to be a young man in a position to work with such professionals as those that work in the gaming industry.” Mr. Godfrey now has nearly twenty-five years of public service with the State of Mississippi.

A l len G o d f rey h a s ser ved a s Executive Director of the Mississippi Gaming Commission since 2011. He first came to the Mississippi Gaming Commission in 2003, serving much of that time as Deputy Director. Of these early years, then Executive Director Larry Gregory states: “Allen served as my deputy director while I was executive director of the Mississippi Gaming Commission, a position I leaned on heavily in my day to day operations at the MGC. Time and again, he handled every issue and transaction with the utmost integrity and dedication, always reaching every

decision with great thought and reason, always balancing what was best for the state with what was fair to the industry. He has continued to operate in this manner in his position as executive director, and this leadership has resonated throughout the country, as gaming companies respect his oversight and direction of gaming regulation in our state.”

D u r i n g h i s t enu r e w i t h t h e commission, Mr. Godfrey has been instrumental in guiding the industry through continued growth, as well as assisting the industry to overcome several disasters. He was involved in the State’s efforts to rebuild the coastal casinos after Hurricane Katrina in 2005. He also had to help lead the industry through the major Mississippi River f lood of 2011 that impacted multiple casinos along the Mississippi River and the BP oil spill of 2010 that affected the Mississippi coastal gaming market. Of these diff icult times, Godfrey states, “During and after each of these events, I watched as each gaming operator paid their employees for months after the event happened, and it really showed me what good companies they were, run by compassionate people, and it impressed me tremendously.” Director

Godfrey evidently has respect for those he regulates.

Since he took over as Executive Director in 2011, he has spearheaded new regulations aimed at requiring increased non-gaming amenities at casinos to drive tourism and economic development. Mr. Godfrey served on the State Taskforce on Internet Gaming and Sports Betting which was assembled in 2014 to assess the prospects of online gaming and sports betting in the State. Recently, Allen was again asked to sit on a task force to evaluate recent laws passed to allow Daily Fantasy Sports in Mississippi. He is regularly called upon to speak at gaming conferences around the country and is looked upon by his peers as a person of great leadership and high moral character. Mississippi is considered to have a strong and stable regulatory environment, and much of that is owed to the achievements and contributions that Allen Godfrey has made to the industry. (Excerpt from recommendation).

A sked about the chal lenges of a regulator in genera l , Director Godfrey states that being able to react in a timely manner to the changes or advancements in technology in this industry is a great challenge to

“During his tenure with the commission, Mr. Godfrey has been instrumental in guiding the industry through continued growth, as well as assisting the industry to overcome several disasters.”

FALL 2016 | 11

regulators today. We asked if he has advice to offer other regulators and to those they regulate, and he states, “Always get all the facts before you try to make a decision, do not have knee jerk reactions to situations. To those that are regulated, be truthful and upfront even it costs you financially.” To others in the industry – attorneys, industry executives, educators and regulators - he offers the following comment, “I would encourage people to learn everything they can about whatever business they are in, to take advantage of any training that is offered so that they are prepared when opportunities present themselves.”

Discussing his many achievements and which is most meaningful to him as a regulator, Director Godfrey states, “I hope I have achieved respect among industry professionals and they know me as a man of my word. I feel I have contributed a common sense approach and as much as our statutes allow it, an environment that allows our operators to be operators and not worry about our agency micro managing them.” Certainly, he has achieved this high level of respect among industry greats. His peers in gaming around the state praise his achievements in his regulatory style. He further states, “I have met some of the most interesting people in the

world and have developed friendships with industry professionals, and the challenge for me is always keep it on a professional level and remind staff that we have our job and they have theirs.”

Professor Ronald Rychlak of the University of Mississippi law school states, “Allen Godfrey's clear vision and f irm leadership have assured operators and consumers of safety, security, and fair treatment. He has ensured the integrity of the industry, maintained public conf idence, and promoted economic development in the state.” A past member of the Mississippi Commission, Leonard Blackwell II, states, “Allen Godfrey has been a steady inf luence to insure the continued tradition of good gaming regulation in Mississippi. Through Allen's knowledge and experience, he has guided the gaming industry in times of economic downturn and during the resurgence of development we are now experiencing. I know of no better example of honest and able excellence in gaming regulation than Allen Godfrey.” An attorney who works in the gaming industry in Mississippi, Scott Andress, states of Chairman Godfrey, “I’ve had the pleasure of interacting with Allen Godfrey over the course of my entire legal career. At the Mississippi Gaming Commission and previously at the

Department of Revenue, Allen has consistently conducted his various roles with an overriding sense of fairness, while never losing sight of the big picture. As MGC Executive Director, he has led the agency under successive Commissioners and sea changes at the Legislature, and also guided the industry across dynamic and sometimes turbulent periods. The consummate family man and public servant, Allen is an admirable example not only for those tasked with regulating gaming, but for all of us.”

Finally, a prior Regulator of the Year in Mississippi, Larry Gregory, now E xecut ive Direc tor of the Mississippi Gaming and Hospitality Association, states emphatically, “His work speaks volumes of the kind of man he is — efficient, organized, and result-oriented. The resiliency of the Mississippi gaming market has been buoyed by Mr. Godfrey. Much is owed to the achievements and contributions that Mr. Godfrey has made to the industry. He is fair, thoughtful, and upright, traits that cannot be fabricated or easily swayed.” These praises of Director Godfrey’s regulatory style and integrity certainly ref lect his notable achievements in the industry and insure his place of honor as an IMGL Regulator of the Year. CGL


FEATURE

“Always get all the facts before you try to make a decision, do not have knee jerk reactions to situations. To those that are regulated, be truthful and upfront even it costs you financially.” — Allen Godfrey


FEATURE

Giving Games of Skill

a (De Minimis) Chance

The Canadian Criminal Code2 (the “Code”) prohibits games of chance, and games of mixed chance and skill3, but does not prohibit games of skill.

The seminal case on distinguishing a game of skill from a game with an element of chance is Ross. At issue in

Ross was whether contract bridge was a game of skill or a game containing an element of chance. In holding that contract bridge contained an element of chance, the Supreme Court of Canada distinguished the “unpredictables that may occasionally defeat skill” (game of skill) from the

“systematic resort to chance” (game with an element of chance).

I n t h e r e c e n t c a s e o f R . v. Riesberry,4 the Supreme Court of Canada considers whether there is a systematic element of chance in horse racing and, in doing so, highlights the limitations of a rule

BY JACK TADMAN

“[W]hen the statute speaks of chance as opposed to skill, it is clear that it contemplates not the unpredictables that may occasionally defeat skill but the systematic resort to chance involved in many games such as the throw of dice, the deal of cards.” - Pigeon, J., Ross, Banks and Dyson v. R.1

FALL 2016 | 13

FEATURE

1. [1968] S.C.R. 786, p. 791 [hereinafter Ross].2. R.S.C., 1985 c. C-46. 3. Unless such games are provided pursuant to exemptions in the Code,

which primarily include games either conducted and managed by the

provincial government, or provided by charities pursuant to a licence by a provincial government.

4. R. v. Riesberry [2015] 3 SCR 1167 [hereinafter Riesberry].5. Ibid., at para. 14.

6. Ibid. at para. 14.7. Ibid. at para. 14.8. An amount of systematic chance that is such a minor factor in a game

that it is permitted even within a game of skill)

that holds that essentially, if there is any systematic resort to chance, a game cannot be a game of skill.

A Fair (Post) Position?I agree with the Court of Appeal that the record at trial contains evidence upon which horse racing, in the present circumstances, could be found to involve a systematic resort to chance. There was evidence that post posit ion is determined by a computerized random post position generator and that cer t a in post positions are more advantageous than others. – Cromwell, J., Riesberry5

Riesberry dealt with a trainer who was caught drugging horses in order to improve the performance of those horses in a horse race. The trainer was charged with “cheating while playing a game,” which requires the game being played to be a game of chance or mixed chance and skill. The trial judge relied on American jurisprudence to conclude that horse racing is a game of skill and thus the charge of “cheating while playing a game” did not apply.

Although the Supreme Court did not go so far as to hold that horse racing was a game of mixed chance and skill, the Court found that there was evidence in the record upon which a trier of fact could f ind that horse racing included a systematic re sor t to ch a nce a nd t herefore ordered a new trial.6

The f inding of the Cour t was based on ev idence that: (i) post position (the position from which a horse leaves the starting gate at the beginning of the race) is determined by a computer ized post posit ion generator, and that (ii) certain post posit ions are more advantageous than others.7

Thus, the Supreme Court has left open the possibility that horse racing is a game of mixed chance and skill due to the randomization of post position.

If randomization of post position is suff icient to classify horse racing as a game of mixed chance and skill, what about other systematic resorts to chance in otherwise skill-based games?

For example, does the coin-toss at the beginning of or before overtime in a footba l l g ame mean that a football game is a game of mixed chance and skill?

Chess was specif ically listed as a game of skill in Ross, but determining who will go first (and will thus have f irst-move advantage) is often done through a coin f lip. Does this make chess matches that determine order by a coin f lip games of mixed chance and skill?

These quest ions highl ight the inherent diff iculty of determining with certainty whether a game is a game of mixed chance and skill or a game of skill, and raises the question of whether courts should allow some de minimis amount8 of a “systematic resort to chance” to be permitted under the Code. CGL

Jack Tadman is a gaming lawyer in Toronto, Canada. He can be reached at [email protected]. Learn mo r e abou t h i s p r a c t i c e a t h t t p : / /canadagaminglaw.com.


I N T E R N A T I O N A L M A S T E R S O F G A M I N G L A W

EVENT SPONSORS

GOLD SPONSORS

IMGL would like to recognize the following sponsors for their generous contributions to the IMGL Autumn Conference, being held at the Shelbourne Dublin, October 23-25, 2016.

Interested in becoming a sponsor for IMGL’s next event? Visit the IMGL.org for full details, or contact Morten Ronde, IMGL Director of Development and Education, at [email protected]

RECEPTION SPONSOR

BREAK SPONSOR

BRONZE SPONSORS

The list of sponsors is current as of August 9, 2016.

SILVER SPONSOR

NOVEMBER, 2016 OCTOBER, 2016SEPTEMBER, 2016

IMGL Member Reception at G2E Las VegasSeptember 27, 2016Wynn Las Vegas

at Malta iGaming Seminar (MIGS)November 7-9, 2016Malta

For more information on upcoming IMGL events or Masterclasses, contact Sue McNabb, Executive Director, at [email protected] or Morten Ronde, IMGL Director of Development and Education, at [email protected].

I N T E R N A T I O N A L M A S T E R S O F G A M I N G L A W

COMING EVENTS

2016 Autumn Conference • October 23-25 • Dublin, IrelandVisit the IMGL website for all of the latest event information as it is added. For information on sponsorships or speaker opportunities, contact Morten Ronde at [email protected]

at Eastern European Gaming SummitNovember 22-23, 2016Sophia

at OFXG TLV & GO GAMING International SummitNovember 29, 2016Tel Aviv

IMGL Spring ConferenceMay 10 -12, 2017Miami, Florida

at IAGR Conference October 31 - November 3, 2016Sydney, Australia

www.imgl.org

MAY, 2017

Documents

SPORTS BETTING - IMGL · Sports and betting have always had an uneasy but logical connection. Placing a wager on a sporting event gives a spectator an added personal interest in