Facebook has removed 36 pages belonging to online gaming operators who are accused of targeting Norwegian consumers without a local license.
The company removed the pages after being notified by Norwegian gambling regulator Lotteritilsynet that the pages promoted unlicensed gambling, in breach of Norwegian law and Facebook’s own regulations, which require advertisers to hold an appropriate license.
The posts were used to promote websites belonging to Coolbet, ComeOn, Guts, Norgesautomaten, Vera&John and Pokio.
“This marketing violates the Norwegian regulations and Facebook’s own guidelines. It is also true that many Norwegians are on Facebook, and the gaming companies can potentially reach many there with illegal advertising,” said Monica Alisøy Kjelsnes, senior adviser and lawyer at Lotteritilsynet.
“The Lottery Authority is very positive that Facebook is removing pages and posts with advertisements for gambling that do not have a license in Norway, and looks at the dialogue with Facebook as an effective tool to reduce access to illegal gambling.”
The gambling regulator added that it will increase its enforcement action against unlicensed advertisers next year using new powers under the country’s amended broadcasting act, which comes into force on January 1, 2021.
The Netherlands has submitted draft legislation to the European Commission setting out the technical requirements for connecting online gambling systems to the new Control Data Bank (CDB) that will be used by authorities for monitoring and verification purposes.
The legislation will allow operators to prepare their applications for the Netherlands licensing process which begins in January 2021, with the regulated online gaming market scheduled to open on 1 July 2021.
The Netherlands tax authority and gambling regulator Kansspelautoriteit each have differing access rights to the CDB under the new Gaming Act which comes into force next year, prompting two submissions for European Commission (EC) approval.
The first from Kansspelautoriteit sets out the technical requirements and data models for establishing and maintaining a connection to the CDB, while the submission from the ministry of finance sets out its requirements in terms of access to gambling participation data by product in order to verify operator tax returns.
Both sets of regulations were notified to the EC on 17 July and are subject to a standstill period ending 18 September.
Swedish gambling regulator Spelinspektionen has successfully defended itself in four cases involving online gaming operators who were penalised for offering bonuses to consumers in breach of Swedish regulations, although two operators secured lower penalties through the appeals.
The Administrative Court of Linköping published its rulings Monday following appeals by AG Communications, Genesis Global, Betway and Mandalorian Technologies.
All four cases relate to the first few months of Sweden’s regulated iGaming market, which opened in January 2019, and the provision of bonuses to customers, which are limited to one bonus per customer upon sign-up.
AG Communications, which was accused of offering various VIP and loyalty programs to consumers, saw its appeal rejected after the court ruled that simply offering a bonus is enough to violate the law. The bonus does not have to be granted and used to qualify as a bonus, the court stated, with VIP programmes considered a form of bonus.
The court ruled that the company did offer bonuses beyond the permissible initial bonus and rejected the argument that the programmes were offered in error and not provided to consumers, thereby upholding the decision and SEK500,000 fine imposed by Spelinspektionen.
Mandalorian Technologies was also unsuccessful in its appeal against a SEK9.0m penalty for offering 10 per cent cashback on gambling spend to consumers.
The company had requested that the decision and penalty be revoked on the basis that cashback does not constitute a bonus, an argument which the court rejected.
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Two other operators, Betway and Genesis Global, were able to reduce their penalties, although the court upheld the gambling regulator’s decisions leading to the penalties.
Betway’s penalty for offering recurring bonuses, free games and recurring free spins was lowered from SEK5.0m to SEK4.7m on appeal on the basis that the regulator miscalculated the company’s annual sales.
Betway argued that free games and spins do not constitute a bonus, and that the penalty for any breach should be based on net gaming revenue and not turnover, both of which the court rejected. The company also argued that its sales were lower than the figure used by the regulator to calculate the fine, which the court accepted, leading to the reduced penalty.
Genesis Global saw its penalty reduced on appeal from SEK1.7m to SEK1.2m, with the court upholding the regulator’s view that the company offered unauthorised VIP programmes and deposit bonuses. These included gifts such birthday presents for members of the VIP programme, which the court said constitutes a bonus.
All four decisions are open to appeal.
The chief executives of some of the leading online gambling companies in Sweden have set out a proposal for achieving a safer gambling market, while at the same time warning lawmakers that arbitrary changes in the regulated market will drive consumers to unlicensed providers.
The CEOs of Betsson, Kindred, LeoVegas, NetEnt, William Hill, ComeOn, Videoslots, Hero Gaming, SupNnation and Swedish online gaming association BOS issued the proposal Monday, setting out seven areas of focus for achieving safer gambling.
The first concerns licenses and calls on the government to extend the current licensing requirement for consumer-facing operators to also include gaming solutions providers and marketing affiliates, with the aim of discouraging participation in the unregulated market and channelling consumers to legal providers.
They also call for better promotion of the national gambling self-exclusion system Spelpaus to raise awareness among consumers, and for Swedish authorities to make use of anonymised behavioural data held by operators to increase their understanding of gambling habits and risks.
Other measures include addressing the risk of problem gamblers falling into debt, particularly in the instant lending market, with the chief executives noting that while they are in a position to asses a customer’s liquidity, they do not have the tools to determine if this was earned or borrowed.
To help problem gamblers more effectively, they recommend the introduction of a self-exclusion system to allow individuals to restrict their access to loans in the same way that they can opt out of online gambling.
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They also state that problem gambling is an individual behaviour and therefore risk should be addressed at an individual level not a product level, and note that greater collaboration between operators and regulators in this area is possible through data sharing, although currently restricted by European data protection laws.
“The Ministry of Finance’s proposal for placing further restrictions on the Swedish gambling market has been met by strong and unanimous criticism. All stakeholders in the gambling industry (state and private), as well as sports clubs, the Swedish Gambling Authority, and international and national media have all stated that the proposals are unrealistic and how they play into the hands of the unlicensed market,” said the chief executives.
“The Minister for Public Administration then chose to adjust the proposals somewhat, but only to improve conditions for state-controlled companies. Now a new report shows that implementing deposit limits on online casinos alone would mean that almost half of all bets would end up being placed with unlicensed companies.
“The entire Swedish gambling industry has been beset by uncertainty, with many customers abandoning licensed companies and moving instead to unlicensed companies,” they added. “If we don’t start to cooperate and introduce long-term measures grounded in facts, we risk turning back the clock to what the market looked like prior to re-regulation.”
Speaking with Gambling Insider for the upcoming Jul/Aug edition of its magazine, Yanica Sant, head of EU affairs and policy at the Malta Gaming Authority (MGA), described the behaviour of operators during the COVID-19 pandemic and explained the regulator’s evidence-based approach towards management.
What general trends has the MGA found in gambling figures during the COVID-19 pandemic?
B2C sports betting operators registered a significant decrease in generated revenue, which was to be expected in light of the fact that most sporting events were cancelled or postponed. On the other hand, B2C operators that offer online casino games registered a slight increase in gaming revenue. While an increase was expected, as more people were spending time inside their homes, the increase in revenue generated by remote casino games turned out to be less than what could have been expected. In fact, just over a third of operators registered an increase in revenue, while a third actually registered a decrease.
In general, how do you think operators have behaved during the pandemic from a responsible gambling perspective?
I am comfortable saying that the vast majority of operators acted in a responsible manner, and were apprehensive of the naturally increased risk brought about by the pandemic. The imposed social isolation obligations resulted in a situation that was likely to have a toll on the mental well-being of some players. A number of operators engaged in responsible gaming campaigns and introduced new playing restrictions, and increased responsible gaming supervision.
The MGA carried out a comprehensive compliance exercise that involved actively monitoring MGA licensees’ advertising campaigns across all platforms. Actions were taken against any operator whose actions were considered to amount to an exploitation of the circumstances. Any references to staying at home, quarantine, or the pandemic were considered to amount to a breach of Maltese gaming legislation and enforcement action was taken. Broadly speaking, licensees were cooperative when approached.
Could you explain a bit about your evidence-based approach at MGA and why this is the chosen strategy towards regulation?
The MGA enjoys the benefit of having regulated the gaming sector for a while, especially given the fact that Malta is in its second-wave of gaming regulation. This in itself gives the regulator an opportunity to look back and improve its regulatory approach on the basis of lessons learnt. More recently, the MGA has elected to work towards making better use of the data collected from operators. Traditionally this was used for fiscal and statistical purposes; however, the intention is to increasingly use this data as the back-bone of policy making.
Policies that have real player and operator statistics at their core translate to policies that can not only be better implemented in practice, but that can be more effective in achieving the outcome intended by the regulator or the legislator. The MGA is also working on increased collaboration with academics focused entirely on the fight against problem gambling.
As you will be aware, the Swedish Government recently received criticism from operators for its plans to implement stricter regulation during the pandemic. In your own opinion, would it be a mistake to introduce such measures?
The pandemic resulted in a global situation wherein no one Government took the same public health approach as the other, and therefore it comes as no surprise that the differences also trickled down to the manner in which gambling was regulated. Malta did not opt for restrictive measures as a reaction to the pandemic as we did not have evidence suggesting that this was necessary. Such a circumstance is also unprecedented, and thus we could not draw any conclusions from historical data or studies
How much of an impact do you think the pandemic will have on regulation post-COVID? For instance, might some regulators use it as an excuse to introduce stricter regulation?
Regulators have a duty towards the players targeted by the operators they license. Legislators have a duty to ensure that their respective regulators are equipped with all the tools possible to maintain gambling as a leisure activity, and to protect players from falling into the pitfalls of addiction. These duties existed pre-COVID-19, and will continue to exist thereafter. Using any specific situation as an excuse to introduce restrictions that are not necessarily required in the fulfilment of the aforementioned duties post-COVID-19 could result in a dangerous situation, wherein the illegal market suddenly becomes more attractive to players than the regulated one. It is a fine balance that which must be reached, and it is definitely not a simple task to achieve it.
While some regulators, such as the MGA, have an advisory role to government, all regulators ultimately execute policy direction received from Government with powers bestowed upon them by law. The argument is not legal/regulatory in nature, as much as it is political.
New measures in Sweden to deal with the coronavirus pandemic are not based on evidence and will push channelisation rates as low as they were before re-regulation, according to a trade association.
In April, minister for social security Ardalan Shekarabi announced temporary measures aimed at player safety during the pandemic, including weekly deposit limits of SEK 5,000 ($537), but has since excluded horseracing and sports betting from restrictions.
But the general secretary for Swedish online gambling trade association Branschföreningen för Onlinespel (BOS) believes the measures will have the opposite effect on the Swedish market.
Gustaf Hoffstedt told Gambling Insider: “The biggest fear with these restrictions is it will drive players to the black market. We presented an independent channelisation estimation made by Copenhagen Economics which showed channelisation in Sweden is at 80-85%.
“What was even more troublesome was that estimation showed online casino has channelisation of 75% and still dropping. This was prior to the new measures.
“We expect channelisation to drop even further, maybe as low as the figure before re-regulation.
“Sweden re-regulated for the very reason that channelisation was very low and, 18 months later, the Government is taking measures it seems will push punters outside of the licensing system; and we will be back to the very situation we faced two years ago.”
Hoffstedt also questioned the Government’s temporary measures, to be introduced in July, which are based on the notion consumers have shifted to online casino and sports betting has significantly dropped.
However, the BOS general secretary said figures from the Swedish Tax Authority shows horseracing betting has increased by up to 40%, while there is no proof online casino has risen.
The Government has representation on the board of horseracing operator ATG and state-owned operator Svenska Spel.
Hoffstedt added: “It is obvious the revised restrictions are not connected to any kind of customer protection measure, judging by the statistics.
“I can at least note the gambling verticals that are excluded from the measures are usually the main products from operators with very close connections with the Government.
“It comes as no surprise to me horseracing and sports betting products are excluded from the responsible gambling measures. I think we are getting closer to a situation when we have to face the real reason may be interference, when it comes to fair competition regarding gambling in Sweden.”
The National Basketball Association (NBA) board of governors has approved a competitive format to restart the 2019-20 season at the end of July.
The board’s approval is the first formal step towards resuming the season, with 22 teams returning to play from a tentative start date of Friday 31 July.
The NBA is finalizing a comprehensive season restart plan with the National Basketball Players Association (NBPA), working with infectious disease specialists, public health experts and government officials to establish a rigorous program to prevent and mitigate the risk related to COVID-19, including a regular testing protocol and stringent safety practices.
The season restart is also contingent on an agreement with The Walt Disney Company to use Walt Disney World Resort near Orlando, Florida, as a single site for all games, practices and housing for the remainder of the season.
The 22 returning teams will be the 16 teams (eight per conference) in current playoff positions, and the six teams that are currently six games or fewer behind the eighth seed in their respective conferences.
“The board’s approval of the restart format is a necessary step toward resuming the NBA season,” said NBA commissioner Adam Silver. “While the COVID-19 pandemic presents formidable challenges, we are hopeful of finishing the season in a safe and responsible manner based on strict protocols now being finalized with public health officials and medical experts.
“We also recognize that as we prepare to resume play, our society is reeling from recent tragedies of racial violence and injustice, and we will continue to work closely with our teams and players to use our collective resources and influence to address these issues in very real and concrete ways.”
The 2019-20 season will conclude with a traditional playoff format with best-of-seven series in the first round, conference semifinals, conference finals and the NBA Finals.
If the season resumes on 31 July, the 2020 NBA Draft Lottery will be rescheduled for 25 August. The 2020 NBA Draft will be held on 15 October, and the 2020-21 NBA regular season will likely begin on 1 December.
The 22 returning teams for the season restart are: the Milwaukee Bucks, Toronto Raptors, Boston Celtics, Miami Heat, Indiana Pacers, Philadelphia 76ers, Brooklyn Nets, Orlando Magic and Washington Wizards from the Eastern Conference and the Los Angeles Lakers, LA Clippers, Denver Nuggets, Utah Jazz, Oklahoma City Thunder, Houston Rockets, Dallas Mavericks, Memphis Grizzlies, Portland Trail Blazers, New Orleans Pelicans, Sacramento Kings, San Antonio Spurs and Phoenix Suns from the Western Conference.
Louisiana Governor John Bel Edwards has appointed Lieutenant Colonel Mike Noel of the state police as the new chairman of the Louisiana Gaming Control Board.
Noel has served with the force for over 30 years, most recently as assistant superintendent and chief of staff, prior to which he spent 17 years as the command inspector of the Gaming Enforcement Division. He also served on the Riverboat Economic Development and Gaming Task Force in 2016 and 2017.
Noel assumes the role vacated by Ronnie Jones, whose seven-year tenure as chairman ended earlier in the week after senators failed to confirm his reappointment.
“I’m pleased that LTC Noel has accepted the position to head the Gaming Control Board. He brings a wealth of experience and knowledge and has served the state well during his tenure with State Police, which is why I have no doubt he will do the same in this new role,” said Governor Edwards. “I look forward to working with him and continuing to build on the successes of former Chairman Jones and strengthening our relationship with the gaming industry.”
Commenting on his new role, Lieutenant Colonel Noel said: “I am humbled and appreciative of Governor Edwards for having the confidence in me to be successful in this appointment.
“I have spent my entire professional life in public service and I am excited to continue that service as chairman of the Gaming Control Board. I look forward to building upon the success of Chairman Jones’ tenure by continuing to work with the Board, elected officials, industry representatives and the public to promote economic development and ensure the integrity of gaming in Louisiana.”
The Swiss Lottery and Betting Board has expanded its blacklist of unlicensed online gambling operators.
The latest update from Commission des loteries et paris (Comlot) has seen 15 domains added to the blacklist of unauthorized sites, which are now subject to blocking by Swiss internet service providers.
The latest additions to the blacklist are alpenwetten.com, bahigo28.com, eurolloto.com, eurolloto.me, exbeteu.com, exclusivebet.com, exclusivebet.eu, exclusivebeteu.com, fortunejack.com, gwbet.com, helwettia.com, heritagesports.eu, interwetten7.com, solobet14.com, and wettpionier.com.
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There are now a total of 116 domains on Comlot’s blacklist of operators targeting customers in Switzerland without a local license.
Swedish gambling regulator Spelinspektionen has released data showing an overall decline in online betting and gaming during the COVID-19 pandemic, although operator performances vary.
The data shows that the licensed online gambling market in Sweden grew by 21 per cent in January 2020 compared to January 2019, when the regulated market first opened. Revenue in February 2020 was 9 per cent ahead of the same month a year ago, with the market declining by 5.9 per cent in March and an estimated 5.4 per cent in April.
The fall in online revenue was not evenly shared, with 55 per cent of Sweden-licensed online operators growing revenue in March 2020 versus a year ago, while 58 per cent of licensees have so far reported year-on-year growth in April 2020.
The report also shows that 51,674 people had registered to exclude themselves from gambling with the national Spelpaus system by 14 May, with the majority (35,000+) choosing an indefinite period of self-exclusion.
On the issue of unlicensed gambling, the report estimates that the regulated online gambling market accounts for around 88 per cent of consumers, but also acknowledges difficulties faced by the regulator in combatting unlicensed operators.
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These include a reluctance by telecoms companies to serve warning messages to consumers who attempt to access unlicensed websites, as well as banking secrecy laws which prevent the regulator from obtaining the account numbers of unlicensed operators for payment blocking purposes. Both are areas of focus for Spelinspektionen, which is seeking increased cooperation with ISPs, the financial regulator Finansinspektionen, and the Swedish Bankers Association.
The Spelinspektionen report is the first in a series of monthly reports on the development of the Swedish gambling market during the COVID-19 pandemic.