No new taxes, but the Mayor’s Fiscal 2014 Financial Plan released this week projects a 5 percent increase in property tax revenues, presumably from increased assessed values. The $70.1 billion dollar budget doesn’t include many changes. Headcount in the Department of Buildings and the Department of Housing Preservation and Development is essentially unchanged.

FEMA, Monday, released advisory updates to its flood maps for the metro area so that property owners have as much notice as possible of post-Sandy changes that will affect building codes and insurance rates. And, today, the Mayor issued an executive order waiving zoning height restrictions so that some properties destroyed by the storm can be rebuilt higher than previously allowed.

Interestingly, as I read the maps, Governors Island isn’t in Zone A — which is good because the Trust for Governors Island is seeking expressions of interest from developers with a vision for 33 acres on the south end of the Island. This is separate from the RFP for redevelopment of existing buildings issued in December, but both responses are due by March 14th.

There are two reasons to go to Albany this month. February  12th is Scaffold Law Reform Day. Owners, builders and contractors are urged to lobby legislators to eliminate the absolute liability standards of the Labor Law, even when workers are negligent. The next day, the state Fire Prevention and Building Code Council will be voting on a proposal to mandate fire sprinklers in new single family homes. NYSBA is organizing opposition to the measure which will add thousands to the cost of a home even though fire deaths have been declining steadily due to new materials and smoke detectors. Anyone interested in participating should email Lew Dubuque, executive director of NYSBA, for details.

The State Assembly gave final approval  Monday to the bill extending J51 tax benefits and the co-op and condo tax break. The bill eliminates J51 benefits for improvements to units in buildings with average assessed values over $30,000 unless they receive substantial government assistance; and phases out the co-op and condo tax abatement for investor owned units by 2014.

If you enjoyed our awards luncheon Tuesday, you can relive it in pictures here, or check out who you missed seeing if you didn’t join us.

Tenants welcomed the selection of Keith Wright to replace Vito Lopez as chairman of the Assembly Housing Committee yesterday, noting that he is a stabilized tenant.

Governor Cuomo’s Executive Budget Proposal did not offer much new on the housing front. Some homeless housing and Mitchell Lama projects were transferred from other agencies to the Division of Homes and Community Renewal for management and the head count in the Rent Administration department was unchanged at 360.

The State Senate passed a bill extending J51 tax benefits and the co-op and condo tax break, with bipartisan support, but it is not clear if the exact bill will pass in the Assembly. The bill eliminates J51 benefits for improvements to units in buildings with average assessed values over $30,000 unless they receive substantial government assistance; and phases out the co-op and condo tax abatement for investor owned units by 2014.

At City Hall, the Mayor announced that Monadnock Development, Actors Fund Housing Development Corporation, and nARCHITECTS had won the micro-apartment design contest and will build their project on East 27th St. There is also a sample of other designs and a full size 325 square foot mockup on exhibit at the Museum of the City of New York.

Still haven’t reserved your seat for our Awards luncheon, Tuesday, honoring Buildings Commissioner Robert LiMandri and Developer Toll Brothers? Verizon knocked out our phones again, so email today, or buy a ticket online here.

Democrat Cecilia Tkaczyk has won the disputed upstate Senate seat from builder George Amedore in final vote counting this morning. This leaves the State Senate Republican leadership completely dependent on the Independent Democratic Conference for control of the chamber.

Class 2, multifamily property values, including co-ops and condos, rose 6.6 percent according to the tentative City tax roll out this week.  Purely rental building values were up 9 percent, the Department of Finance reported. About one quarter of that increase, however, is attributable to new construction and renovations. The total assessed value for Class 4 commercial properties increased 8.56 percent. The bottom line is that even when tax rates are flat, assessment increased are powering taxes up.

Who owns those taxable properties? The Department of Finance may know, but the Department of Housing Preservation and Development may not, according to the Furman Center at NYU. Apparently only 23 percent of the rental buildings required to file annual Property Registration forms with HPD do so. Most of the delinquents are one and two family rental properties, but 15 percent of buildings with over 50 rental units aren’t registered according to Furman researchers.

Congress may have trouble agreeing on balancing the budget, but it seems that all parties think paying for LEED certification, as opposed to actually making energy saving improvements, could be a waste of money. The new National Defense Authorization Act prohibits the Department of Defense from seeking LEED platinum or gold certification because of doubts about the criteria.

Looks like ex-HPD Commissioner and current HUD Secretary Shaun Donovan will be one of the handful of Obama cabinet members staying on.

Our condolences to the family of Phyllis Seavey, who passed away January 10th. Mrs. Seavey was active in ABO member firm the Seavey Organization for many years.

Still haven’t reserved your seat for our January 29th Awards luncheon? Call 212 385-4949 to reserve, or email today, or buy a ticket online here.

The City Economic Development Corporation this week issued an RFP for a 1.65 million square foot development, including 1,000 units of housing, on the Lower East Side. The Seward Park site is the largest contiguous development parcel south of 96th Street.

The City council approved a bill giving HPD the power to issue an order to correct any underlying condition existing in a building that has caused or is causing a violation. The owner would have four months to address the condition, such as, say, pointing where there is continuous seepage into an apartment wall. After that the City could fix it and bill the owner. The law leaves a lot to the subjective judgment of inspectors. HPD has six months to write rules.

Governor Cuomo touched on a few real estate issues in his State of the State. He proposed spending $1 billion of existing program funds to build or rehab 14,000 units, including 8,700 existing Mitchell Lama apartments. He proposed amending the Human Rights Law to bar discrimination based on source of income to protect Section 8 tenants. He also announced creation of  the Recreate-NY Smart Home and Home Buyout Programs to either rebuild houses devastated by Sandy to withstand storms or buy out homeowners to create parks and other storm barriers. No details yet.

George McDonald, founder of the Doe Fund and longtime ABO member, officially declared his candidacy for Mayor yesterday.

The families of children with blood lead levels as low as 5 micrograms per deciliter, a level that was considered normal twenty years ago, are getting letters from the City Department of Health warning them of the danger of lead poisoning. ABO member Lee Wasserman of LEW Corp., notes that even if DOH or HPD don’t consider these levels worth an inspection, they could be used in liability cases years in the future. Please let the ABO office know if your tenants notify you of receiving such a letter or you get a copy.

Still haven’t reserved your seat for our January 29th Awards luncheon? Call or email today, or buy a ticket online here.

Congress stumbled on a cliff New Years Day and here’s what happened that will effect you:

Income Tax Rates: Single taxpayers earning incomes over $400,000 and couples earning over $450,000 will face a 39.6 percent tax rate instead of a 35 percent rate.
Married taxpayers earning more than $250,000 and single taxpayers earning more than $200,000 should note that an additional 0.9 percent tax will apply to wage income as a result of health care tax legislation.
(Source: PAN Card Seva).

Capital Gains and Dividends: The act permanently increases to 20 percent the tax rate applicable to capital gains and dividends received by married couples earning more than $450,000 and single filers earning more than $400,000. The 15 percent rate applicable to capital gains and dividends is permanently extended for taxpayers earning under these thresholds but at or above the 25 percent income tax bracket.
Married taxpayers earning more than $250,000 and single taxpayers earning more than $200,000 should note that an additional 3.8 percent tax will apply to capital gains and dividends derived from passive sources as a result of health care tax legislation.

Estate Tax: Individuals can permanently shield $5.12 million, to be indexed for inflation beginning in 2013, from the estate tax, and the top estate tax rate is 40 percent.

Alternative Minimum Tax: The act provides permanent AMT relief to maintain the number of AMT taxpayers at approximately 4 million as opposed to more than 30 million.

The following tax extenders benefitting firms involved in multifamily housing are extended through 2013:

Bonus Depreciation. Allows firms to expense, instead of depreciate over time, 50 percent of the cost of certain capital assets purchased in 2013.

Energy Efficient New Homes Tax Credit. Provides low-rise multifamily properties (three stories or less) with a $2,000 per unit tax credit for new residences that achieve a 50 percent energy savings for heating and cooling over the 2004 International Energy Conservation Code and supplements.

New Markets Tax Credit. Helps facilitate construction of mixed-used developments in distressed areas.

Low-Income Housing Tax Credit Fixed Rate. In 2008, the typically floating rate on the 9 percent tax credit was fixed at 9 percent. That fixed rate was set to expire for properties placed into service on or after December 31, 2013. It will now apply to any project that receives an LIHTC allocation prior to January 1, 2014.

New York State actually went over the condo and co-op tax cliff last Spring, but may take up a retroactive fix this month. The City’s Independent Budget Office weighed in this week with an analysis showing that the tax break unfairly benefitted Manhattan apartment owners and noting that amendments to phase out the benefit for non-resident owners and high value apartments are on the table in Albany. Strangely, the IBO thinks the problem is that apartments generally are under assessed relative to single family homes.

Congratulations to ABO member Mike Fazio who was honored with the Three Legged Stool award at the New York State Builder’s Association annual meeting this month for his efforts with ABO, NYSBA and NAHB. The winner gets an actual stool. Mike represents us on state and national boards and committees.

Trying to forecast electricity prices? Mike Stoller, program manager for the ABO Energy Marketplace offers this perspective: Natural Gas is the predominant fuel that drives electricity prices, and after a precipitous drop we saw a 10 year low in April of 2012, where the price of NG stood at about $2.20.  As of Dec 20th, 2012, the price of NG sits at $3.45, a rise of about 50%.  With that being said, we are still at exceptional levels in terms of locking in fixed pricing.  NG was above $13 as recently as 2008, and was above $5.60 at the end of 2009, so clearly the risk to the upside greatly outweighs the risk to the downside. Follow the link above or call Mike Stoller at 917-273-4430 for more information.

More savings are available on Verizon Wireless services (for contractors only), Staples, Airgas and other companies through our affiliation with National Purchasing Partners. Give yourself a belated Christmas present with big discounts at  www.mynpp.com.

After Sandy blew out the ABO annual dinner we’ll be hearing from DOB Commissioner Robert LiMandri at our January 29th luncheon, and awarding him and David Von Spreckelsen of Toll Brothers the 2012 awards they were set to receive in November. Invitations will be out right after the New Year. Plan to join us.

The City Council this week announced hearings and legislation to review the lessons of Sandy and amend the building code in response to the storm. The immediate legislative proposals are to update the FEMA flood plain maps and to require all Zone A construction to meet the standards formerly required only in Zone V — the most exposed waterfront.

If you still want to build in Zone A, Brooklyn Bridge Park just issued an RFP for construction of 130 residential units and retail space in the park at John Street. The area was four feet under water during Sandy.

Condo developers who were slapped with suits under the Interstate Land Sales Full Disclosure Act when buyers wanted to get out of contracts during the recession won a victory on appeal to the Second Circuit this week. Related Cos. argued successfully that the requirement to describe the block and lot of a condo during presales was a technicality that shouldn’t apply because the City didn’t assign condominium tax lots until construction was complete. Thousands of prospective purchasers used the technicality to back out of contracts in 2008 and 2009. Purchaser attorneys say they will attempt to appeal to the Supreme Court.

If you are wondering just who controls the State Senate these days, no one else knows either. The Republicans picked up a 31st seat this week, which, with the announced support of Democrat Simcha Felder, give them a majority. Democrats plan to appeal. Meanwhile, the Independent Democratic Conference is sharing power with the Republicans, but their legislative agendas have yet to be worked out. It will be well into January before things shake out.

The Trust For Governor’s Island has issued an RFP for the redevelopment and adaptive re-use of over 40 existing historic buildings on Governors Island totaling 1 million square feet for educational (funds that particularly go into EA exam prep courses), cultural, and commercial uses. It might be worth applying just to take the site tour December 19th. It will also be interesting to see the  post-Sandy enthusiasm for development on an island in New York Harbor.

Beginning in 2014, new apartment buildings in New York with five or more floors and nine or more units will be required to set aside up to 350 square feet for recycling bins and materials, depending on the number of units in the building, under legislation passed by the City Council Tuesday. New buildings with refuse chutes must set aside five square feet in each access room for recyclables. ABO opposed the measure, noting that recycling technology might change faster than absolute space requirements in the building code might be amended.

The Court of Appeals this week carved out an exception to Labor Law liability for workers injured inside condominium units. The Court held that the condo association at 200 Riverside Boulevard was not responsible for a worker injured doing an apartment renovation, even though the board approved the renovation contract executed by the unit owner, because the association was not the fee owner in control of the work. Narrowing the decision further, the Court distinguished condos from cooperatives, indicating that a coop would be liable in the same situation.

Just when it looked like Roberts vs. Tishman, the Stuyvesant Town case, was resolving itself with a proposed settlement last week based on several court decisions using a four year statute of limitations on overcharge complaints, the Appellate Division decided Wednesday that there was no reason to apply a statute of limitations on examining rents in a J51 deregulation case. By reversing the lower court in 72A Realty Associates v. Lucas, the Appellate Division has guaranteed that the uncertainty of how to deal with these cases since the Court of Appeals punted in 2009 will continue indefinitely.

Speaking of uncertain and impractical rent regulations, the City just worked out a deal with property owners to get around rent laws to house Superstorm Sandy refugees temporarily without a) locking tenants into one year leases, or b) unintentionally giving them renewal rights to stabilized units. Some of the leases will be signed by Common Ground, a non-profit intermediary, in order to prevent a landlord-tenant relationship being created directly with the occupants. One can’t help remembering that the City had been cracking down on this corporate apartment model as a violation of zoning rules prior to the storm.

Also, the State Division of Homes and Community Renewal published a Q and A sheet on rent reductions due tenants from Sandy. Basically, if the unit is uninhabitable the tenant gets to keep their rights to the unit when it is repaired for $1 a month (although the dollar isn’t really necessary according to the agency). If the unit is habitable, but doesn’t have, say, electricity, then the tenant can get a guideline rent reduction until services are fully restored. We’ll see what the courts say when tenants wind up taking arbitrary reductions.

Ever wonder where all the new people in the neighborhood are coming from? WNYC has come up with an interactive map that lets you click on an area and see how many recent movers came from out of state, or out of the country. For example, more than 20 percent of the people who moved into the neighborhood around University Place below 14th Street came from abroad, but only 4 percent from out of state, according to New Jersey relocation service data. By contrast, 27 percent of the movers to an area just east of the Brooklyn Navy Yard seem to have come from out of state, but not enough foreigners to count.

Online gambling has become a massive industry worldwide, providing entertainment and opportunities to millions of players in sites like joker123. However, the legality of online gambling varies significantly across regions, with some countries fully embracing the practice, others regulating it tightly, and some outright banning it. Understanding these legal landscapes is crucial for both operators and players to ensure they are adhering to the law.

In this article, we’ll explore the legality of online gambling in key markets such as the United States, Europe, and Asia, while also examining global trends that are shaping the future of the industry.
The Legal Status of Online Gambling in the United States

The United States has a complex and evolving relationship with online gambling. Historically, the country has had stringent regulations on gambling activities, but this has been gradually shifting over the past decade. The legal status of online gambling in the U.S. is regulated at both the federal and state levels, creating a patchwork of laws that vary widely.
1. Federal Regulations

The primary federal law impacting online gambling is the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006. This law doesn’t explicitly ban online gambling but restricts the ability of financial institutions to process transactions related to online gambling, making it difficult for unlicensed operators to offer services to U.S. players.

Another notable federal law is the Wire Act of 1961, which prohibits the use of wire communication for interstate or foreign wagering on sports. In 2011, the U.S. Department of Justice issued an opinion stating that the Wire Act only applies to sports betting, opening the door for states to legalize other forms of online gambling, such as poker and casinos.
2. State-by-State Legalization

In recent years, several U.S. states have taken the lead in legalizing online gambling. New Jersey, Pennsylvania, Michigan, and West Virginia are among the states that have fully legalized online casinos, poker, and sports betting. Nevada also offers online poker but has yet to legalize online casino games.

Each state has its own licensing and regulatory framework, and operators must be licensed in each state where they offer services. States like California and New York have debated legalization but have not yet passed comprehensive online gambling laws.

Key Trends in the U.S.:

Sports betting: The 2018 Supreme Court decision to overturn the Professional and Amateur Sports Protection Act (PASPA) allowed states to legalize sports betting, leading to rapid expansion across the country.
Growing market: As more states consider legalizing online gambling, the U.S. market is poised for significant growth, particularly in mobile betting and live dealer games.

The Legal Landscape of Online Gambling in Europe

Europe is one of the largest and most diverse markets for online gambling, with many countries offering well-established regulatory frameworks. The European Union (EU) allows individual member states to create their own gambling laws, resulting in varying levels of regulation across the continent.
1. United Kingdom

The United Kingdom is considered one of the most mature and well-regulated online gambling markets in the world. The UK Gambling Commission (UKGC) oversees all forms of gambling, including online casinos, poker, sports betting, and lottery games. Operators must obtain a license from the UKGC to offer services to UK players, and the country has strict rules on advertising, player protection, and responsible gambling.

The UK government has also introduced measures to protect players, such as the ban on credit card gambling and increased scrutiny of gambling addiction issues.
2. Germany

In Germany, online gambling laws were historically fragmented, with individual states controlling their own regulations. However, in 2021, Germany passed the Interstate Treaty on Gambling, which introduced a nationwide framework for online gambling. The treaty allows for the licensing of online casinos, poker, and sports betting but comes with strict limits on advertising and player spending.
3. Sweden

Sweden has a regulated online gambling market managed by the Swedish Gambling Authority (Spelinspektionen). The market was opened up to private operators in 2019, allowing international companies to apply for licenses to offer online casino and sports betting services to Swedish players.

Key Trends in Europe:

Player protection: European regulators are increasingly focusing on responsible gambling measures, such as self-exclusion programs, deposit limits, and advertising restrictions.
Cross-border challenges: While the EU promotes the free movement of services, gambling remains a heavily regulated industry, leading to complex cross-border licensing requirements for operators.

Online Gambling Regulations in Asia

Asia presents a unique challenge when it comes to online gambling, as the legal status varies dramatically across the region. While some countries are embracing online gambling as a revenue source, others have imposed strict bans.
1. China

In China, most forms of gambling, including online gambling, are illegal. The government has taken a hardline stance on online gambling, actively blocking websites and prosecuting operators. However, many Chinese players access international gambling websites through virtual private networks (VPNs).

The only legal form of gambling in China is the state-run lottery, but many Chinese players turn to offshore casinos in countries like Macau and the Philippines.
2. Philippines

The Philippines has become a major hub for online gambling in Asia, thanks to its licensing and regulatory framework overseen by the Philippine Amusement and Gaming Corporation (PAGCOR). The country offers licenses to offshore operators who provide services to international players but not to Filipino residents.

The country’s Philippine Offshore Gaming Operator (POGO) licenses have attracted many international companies, but recent crackdowns on illegal activities and concerns over money laundering have led to increased scrutiny.
3. India

India’s online gambling laws are complex, with no federal law specifically addressing online gambling. However, many Indian states have their own regulations. For example, Sikkim and Nagaland have issued licenses for online gambling, while other states like Maharashtra have banned the practice.

Most online gambling in India occurs in a legal grey area, with players accessing offshore sites that accept Indian rupees. Sports betting, particularly on cricket, is hugely popular but is technically illegal in most states.

Key Trends in Asia:

Offshore gambling: Many Asian countries, like China and India, see high volumes of players accessing offshore gambling sites, despite legal restrictions.
Mobile gaming: Asia is a mobile-first region, with many players accessing online gambling through their smartphones, driving the growth of mobile-friendly platforms.

Global Trends Shaping the Future of Online Gambling

As online gambling continues to grow worldwide, several trends are shaping the industry’s future:
1. Cryptocurrency and Blockchain

Many online casinos are adopting cryptocurrencies like Bitcoin for deposits and withdrawals, providing players with anonymity and faster transactions. Blockchain technology is also being used to enhance transparency and fairness in games, particularly in provably fair games.
2. Regulation of Esports Betting

As esports betting gains popularity, regulators are grappling with how to control this new form of wagering. Countries like the UK and the US are already licensing esports betting operators, while others are still figuring out how to regulate the market.
3. Focus on Responsible Gambling

Globally, there is a growing emphasis on responsible gambling practices. Regulators in Europe, the U.S., and Australia have introduced tools like self-exclusion programs and deposit limits to protect players from developing gambling-related issues.
Conclusion

The legality of online gambling is a complex and evolving issue, with each region developing its own approach to regulating the industry. While countries like the UK and the Philippines have embraced online gambling with comprehensive regulatory frameworks, others like China and India take a more restrictive approach.

As online gambling continues to grow, trends like cryptocurrency integration, esports betting, and responsible gambling measures will play a significant role in shaping the future of the industry. Whether you’re a player or an operator, staying informed about the legal landscape is crucial for navigating the world of online gambling safely and legally.