News

The British regulator has suspended Goldchip Limited’s operating licence while it conducts an investigation.

UK.- The Gambling Commission has suspended Goldchip Limited’s operating licence pending a review conducted under section 116 of the Gambling Act 2005. The regulator said it had received reports of possible contraventions of licensing conditions that may render the company “unsuitable to carry on the licensed activities”.

The Gambling Commission said the suspected breaches involved social responsibility and anti-money laundering issues. The regulator instructed the company to ensure it keeps customers informed of developments. The operator can allow consumers to access their accounts and withdraw funds during its licence suspension.

It said in a statement: “We have made it clear to the operator that during the course of the suspension, we expect it to focus on treating consumers fairly and keeping them fully informed of any developments which impact them.”

Gambling Commission fines Jumpman Gaming and Progress Play
Two gambling businesses will pay a combined £675,000 in regulatory settlements after the British Gambling Commission identified social responsibility and anti-money laundering failures.

Guernsey-headquartered Jumpman Gaming Limited, which runs 243 websites, will pay £500,000. Cyprus-based Progress Play Limited, which runs 201 websites, will pay £175,718.

In both cases, the settlements will be directed to the National Strategy to Reduce Gambling Harms.

In Jumpman Gaming’s case, a Gambling Commission investigation revealed that customers had lost £15,000, £20,000 and £19,000 over periods of a month, six weeks and four months, without the operator obtaining sufficient evidence on affordability.

In the case of Progress Play, while customer profiles contained some evidence of SOF information being recorded, there was a lack of a clear rationale regarding decision-making and a failure to effectively review SOF information provided, resulting in customers being able to spend more than their known earnings.

The British government’s under-secretary of state for technology and the digital economy, Chris Philp, has told campaigners that gambling reform is “long overdue” and that “change is coming”. The Department for Digital, Culture, Media and Sport launched a review of British gambling legislation in the last quarter of 2020 but has yet to publish an expected gambling white paper outlining its proposed reforms.

Philp has given some hints in the past about what might be expected, including a single-customer view for operators and affordability caps.

The final version of the Swedish government’s gambling reform bill doesn’t include time restrictions for gambling ads.

Sweden.- The Swedish online gaming trade association Branschföreningen för Onlinespel (BOS) has welcomed the government’s apparent decision not to limit the hours that gambling ads can be shown.

The Swedish government has published the final version of its gambling reform bill, which introduces a requirement for new B2B licences. However, plans to limit the hours for gambling advertising appear to have been shelved, with the law only introducing “adjusted moderation”, which will be less severe than the “special moderation” imposed on alcohol marketing.

Under this standard, “the marketing of games must be adapted to take special account of the fact that different forms of gambling entail different risks of addiction”. However, it will not include the previous proposal to restrict the advertising of “high-risk” to between 9pm and 6am.

The government said it had determined that such a measure could “adversely impact channelling and media revenues” while still exposing the players most at risk.

BOS secretary general Gustaf Hoffstedt said the industry was “cautiously positive” about the bill.

He said: “The most striking thing is actually what is not included in the proposal, such as a ban on advertising for gambling on TV, radio and streaming media between 6am and 9pm.

“We are pleased that the government has listened to stakeholders in the gambling industry as well as several publishers who have pointed out the disadvantages of such a proposal.”

However, Hoffstedt added that the term “adjusted moderation” was ambiguous, leaving the industry with doubts about what marketing is allowed.

He said: “The remaining concern is the proposal for ‘adjusted moderation’. It seems to be a paraphrase of risk classification and the ambiguity of what it actually means is open to legal uncertainty.

“Here, the legislature should consider whether it really wants to introduce further uncertainty regarding the interpretation of regulatory measures, uncertainty that risks leading to protracted court proceedings.”

Sweden’s gambling reform bill
Other proposals to make the final version of the bill include the introduction of mandatory licences for B2B gaming software providers. Suppliers who offer services to gaming operators in Sweden would need a licence, which would have an application fee of SEK120,000 (€11,170) and remain valid for up to five years.

Licensees must have a headquarters in the European Economic Area or open an office in Sweden. The government said this measure would help reduce unlicensed gambling.

Malta is the first EU state to respond to Hungary’s proposed online gambling reforms.

Hungary.- Malta has submitted a “detailed opinion” on Hungary’s proposed gambling reforms, which would end the country’s state-controlled monopoly gambling market. It’s highlighted possible conflicts on technical arrangements and has called for Hungary to provide details of the technical parameters for licensed online casino operators.

Malta has asked Hungary to clarify what it means by a proposed exclusion for operators that “have organised gambling without a licence in an EEA State during the ten years preceding the application.” It also noted that Hungary’s draft proposal does not update tech and IT provisions from existing laws, which have been in place since 1991.

Hungary notified the European Commission (EC) of its plans for the liberalisation of its online gambling marketplace in February. The changes would introduce unrestricted licensing for EU-registered businesses.

The changes were made after Hungary’s Gambling Supervisory Unit was told to ensure competition rules complied with those of the European Economic Area (EEA). The order came after Kindred Group’s Unibet and Sporting Odds (a former brand belonging to GVC Holdings, now Entain) won European Court of Justice (ECEJ) appeals against the Hungarian government.

The operators, based in Malta, had challenged regulatory changes passed in 2014 that allowed unrestricted, uncompetitive advantages to the state-owned gambling operator Szerencsejáték Zrt.

German sports betting licensees sue over market restrictions
The newly regulated gaming market in Germany is notable for its tight conditions, and now operators have taken legal action over the matter. All 33 sports betting licensees have lodged lawsuits against the state of Hesse to challenge the market’s regulations.

The state will be represented by the Regional Council of Darmstadt, which confirmed that “all holders of permits for both land-based and online sports betting” had filed lawsuits. The operators complain that the market conditions, which limit in-play betting to match winners and total goals, favour unlicensed offshore competitors.

Gambling revenue in Lithuania hit €43.4m in the first quarter, with online revenue up despite a ban on marketing.

Lithuania.- Gambling revenue continues to grow in Lithuania, rising by 90 per cent year-on-year to €43.4m. Part of the rise can be explained by the return of land-based gaming after Covid-19 lockdowns, but online gaming revenue also rose.

Despite tight restrictions on gambling advertising, online gambling revenue was up 16.7 per cent year-on-year at €26.8m. Category A slots, which have no cap on stakes or payouts, generated €15.5m, an increase of 24.7 per cent year-on-year. Stakes were €210.4m.

Category B slots, which have a stake limit of €0.50 per spin and have a payout cap at 200 times the original stake, generated €683,313, up 57.9 per cent from Q1 in 2021. Table games generated €1.6m, up 25.5 per cent, from €19.4m in stakes. Betting stakes totalled €125.3m, generating revenue of €9m.

The land-based gaming sector generated revenue of €16.9m. Category A slots accounted for €3.1m from stakes of €12.4m, and category B machines €7.2m from stakes of €45.4m. Retail sports betting revenue was €2.7m from stakes of €25.9m and table game revenue €4m from stakes of €18m.

Revenue in the same quarter in 2021 was negligible due to the closure of venues amid the Covid-19 pandemic. The government collected €8.2m in lottery and gaming taxes in Q1, a rise from €4.2m in Q1 2021.

The rise in gambling revenue comes despite Lithuania’s prohibition of gambling marketing. The Gambling Supervisory Authority this week fined Top Sport €25,000 for violating the ban through claims made on its website last year.

An inspection by the Gambling Supervisory Authority found that Top Sport had made statements that encouraged players to gamble, with phrases such as “Bet whether Kaunas Žalgiris will triumph in the LKL championship and whether Žalgiris will advance to the Euroleague final four”, “With Top Sport you can place a wide range of sports bets”, “Choose one of more than 400 games and claim impressive winnings” and “Guess how far Vilnius Rytas will go in the FIBA ​​Champions League and whether it will advance to the LKL final”.

The regulator said these statements breached Lithuania’s ban on gambling promotion, which prohibits inducements to gamble. The rule prohibits offering bonuses and publishing adverts and – it now seems – anything that can be considered marketing language. Top Sport has the right to appeal against the fine.

The Gambling Supervisory Authority fined Lošimų Strateginė Grupė and UAB Olympic Casino Group Baltija the same amount in March for publishing details of a poker tournament on their websites.

In January, it fined UAB Nordic’s Optibet brand for sending out a newsletter updating 10,600 customers about a change in terms and conditions. The regulator formed the opinion that the email constituted gambling promotion.

The government is consulting on plans to merge three pieces of legislation to create a unified gambling law.

Norway.- The Norwegian government has opened a consultation to collect feedback on its approved order to combine the country’s three existing gambling acts into one. The proposal from the Ministry of Culture and Gender Equality would replace the Totalizer Act (1927), Gaming Scheme Act (1992) and Lottery Act (1995).

The government approved the proposal from former culture, sports and equality minister, Abid Q Raja, last summer in order to create a common approach across all gambling. The draft decree proposes common rules for problem gambling prevention, the protection of minors and advertising and marketing.

It also proposes merging the supervision of Norway’s two state monopoly gambling operators Norsk Tipping and Norsk Rikstoto under one government department (they’re currently subject to tripartite supervision by The Lottery Committee, Ministry of Culture and Ministry of Agriculture and Food).

The national gambling regulator, Lottstift, would gain new powers, including the ability to take direct action on unlicensed operators and to place tighter restrictions on the licensed monopolies. It would be able to ask for data from financial institutions in order to inspect gambling transactions and would be able to impose a “predetermined coercive fine and infringement fees”.

Proposals also suggested the government amend advertising laws to ban all promotion of unlicensed gaming operators on any media platform.

The consultation runs until August 5. Norway’s Institute of Addiction, Civic Ombudsman and the Children’s Education and Support Department are required to submit feedback. The aim is to adopt the new legislation by January 1.

The national gambling regulator has urged state-controlled Norsk Tipping to introduce loss limits for sports betting and also to reduce the number of online casino games it offers.

The regulator’s annual report for 2021 notes that Norsk Tipping’s customer numbers and turnover hit a record high last year. That’s despite the fact that Norsk Tipping cut its month loss limits for its higher risk games from NOK 10,000 to NOK 7,500 in December 2020 and then to NOK 5,000 (€517) in September last year.

The regulator said that as well as imposing loss limits for online casino games, the operator should also have loss limits for its Oddsen sports betting brand. Meanwhile, the operator should reduce the number of casino games on its Kongkasino site.

The chair of the Betting and Gaming Council (BGC) has warned against radical changes to the gambling sector’s research, education and treatment responsibilities.

UK. Brigid Simmonds (OBE), chair of industry lobby group the Betting and Gaming Council (BGC), has warned the British government to avoid radical changes to operators’ research, education and treatment (RET) duties. She dismissed calls for a mandatory levy on operators.

In an open editorial on the Tory party’s Conservative Home news site, Simmonds called for an evidence-based approach to problem gambling ahead of the UK government’s publication of its gambling white paper.

She said: “The existing framework was described as a ‘perplexing paradox’ in which UK licensed operators face hostilities for taking bets of 22.5 million adults each month. Yet, according to regulatory statistics, the UK’s problem gambling rates stand at 0.3%, a much lower rate than the European counterparts of Italy (2.4%), France (1.3%) and Norway (1.4%).

“To any dispassionate observer, the obvious conclusion would be that Britain boasts a rigorously regulated market that is keeping rates of problem gambling low,” Simmonds wrote.

“For the past twenty years, the industry has rightly shouldered the financial responsibility for that work by paying a voluntary levy to fund independent charities tackling problem gambling.”

Despite calls for a levy on gambling operators to go direct to the Department of Health and Social Care something that the industry-backed funding charity GambleAware has called for, Simmonds said this would not mean more funds for RET. She noted that voluntary donations to GambleAware were expected to reach £39m by 2023/24.

Instead, she said the government should maintain the current funding structure, which funds a support network with 160 sites and services run by third-party charities such as GamCare, which runs the problem gambling helpline, and YGAM, which provides education for young people. A new funding structure would threaten that work, Simmonds said.

“A Statutory Levy would risk their funding models by potentially taking cash out of their coffers, and putting it into the NHS, which is not set up to deliver these services,” she said. “Meanwhile, the industry and charities have spent the last two decades busy getting on with the issue.

“Is it really designed to help RET or the general public – or is it a punitive measure to placate the anti-gambling lobby? Any Statutory Levy will not boost funding for RET; the money is already in the system with a bigger, broader commitment going forward.

“So think very carefully whether a statutory replacement would be better, would have better outcomes, and would help the vast majority of those who have a problem with gambling which can be helped outside of an NHS framework.”

MPs will decide whether Spain’s gambling regulator should oversee sports betting integrity controls.

Spain.- The Congress of Deputies of Spain has approved a motion for a full vote on proposed changes to gambling legislation that would give the state greater control over monitoring betting fraud and corruption in sports. The changes were to be approved by a health commission but will now get a full vote.

Chief among the proposals are new powers for the Spanish gambling regulator, the Dirección General de Ordenación del Juego (DGOJ), which would take control of collecting operator data related to sports betting integrity and sports corruption. Operators would need to give the DGOJ data on market movements, suspicious betting patterns and signs of potential fraud.

The DGOJ would create a new cooperation network in partnership the Spanish sports council, Consejo Superior del Deporte (CSD), which represents the interests of professional sports leagues and federations in Spain.

The DGOJ began working with the CSD last year with the aim of creating a new framework for cooperating on sports corruption issues. The idea is that the DGOJ will act as a central hub for the sharing of data to prevent, detect and investigate sports betting fraud. Data will then be shared with police.

Madrid approves decree on betting and gambling premises
Last week, Madrid’s city council approved a community decree that aims to reduce the saturation of gaming venues in the Spanish capital. The decree, which was unanimously approved, overrides current laws to introduce a minimum 300m distance requirement between all gaming and betting premises across the city’s 21 districts.

Gambling premises, which are defined to include betting operators, gaming arcades, casinos and bingo halls, must also be at least 100m away from schools, universities and recreation centres for young people. Meanwhile, the city council will centralise the power to grant licences to gaming venues, taking this away from individual districts.

According to Madrid’s registry of businesses, there are currently 685 gambling premises in the city, comprising some 480 gaming arcades, 160 bookmakers, 33 bingo halls and four casinos.

The DGOJ’s gaming revenue and stakes figures for 2021 showed a decline in online gambling revenue despite a rise in stakes. Online gaming revenue fell 4.2 per cent year-on-year to €815m but stakes were up across all verticals.

There may have been concern that a decline in revenue was related to Spain’s new advertising restrictions, but with stakes up by 25 per cent and deposits up 216 per cent at €2.77bn, it appears to be more a result of trading.

Gross gaming revenue for March rose to DKK 525m amid a rebound for the land-based gaming sector.

Denmark.- The land-based gaming sector continues to show a recovery from the impact of the Covid-19 pandemic in Denmark. In March, total gross gambling revenue was up almost 30 per cent year-on-year to DKK 525m (€70.6m).

According to figures from the national gambling regulator, Spillemyndigheden, land-based gaming machines generated DKK 110m. Land-based casinos, generated DKK 34m, the fourth-highest total on record and an increase from DKK 31m in February.

Betting generated DKK 155m, down from DKK 184m in February, while online casino revenue remained the biggest source of revenue, up 5.6 per cent month-on-month but down 7.4 per cent year-on-year, at DKK 226m.

Danish gaming regulator updates marketing guidelines
Last month, Spillemyndigheden updated its marketing guidelines on the promotion of land-based bets and slot machines at gaming halls and restaurants. Operators must now provide clearer details about the chances of winning.

The regulator has added a new section on the chances of winning on slots. Meanwhile, it’s added updated guidance on promotions and the definition of offers including extra chances to win, lotteries and tournaments and rankings.

It said the change entails how the value of promotional draws is calculated, with the number of players predicted to take part in the draw now a deciding factor.

The Betting, Gaming, Lotteries and Amusements Bill has become law.

UK.- Northern Ireland’s Betting, Gaming, Lotteries and Amusements Bill has become law after receiving royal assent. It’s the first significant update to Northern Irish gambling legislation since the Betting, Gaming, Lotteries and Amusements Order 1985.

The legislation is the first phase in a wider overhaul of regulations, with legislation on online gaming due to follow. The legislation introduces a levy on gaming licensees as well as a code of practice.

Meanwhile, the legislation makes it a criminal offence for under 18s to use a gaming machine, with a penalty of up to six months in prison.

Betting shops will now be able to open on Sundays and on Good Friday, although they must still close on Christmas Day. That change comes after 66 per cent of respondents to a consultation in 2019 supported a relaxation in opening hours. The Committee for Communities has called for the Department for the Economy to publish guidance on safeguards for staff with regards to working additional days.

Communities Minister Deirdre Hargey said the bill “will improve protection for children and young people through the creation of a new offence of inviting, causing or permitting a young person under 18 years to play a high stakes gaming machine.”

She added: “The bill also provides increased opportunities for local charities, sports clubs and other voluntary groups to raise more money for good causes by increasing the maximum ticket price and simplifying the rules around deduction of expenses that apply to societies’ lotteries.”

At the consideration state, the Northern Ireland Assembly’s Committee for Communities has recommended that the Department of Communities now carry out research to calculate the size of the Bill’s proposed betting levy. It also called for research to define the roles and responsibilities of a new gambling regulator for Northern Ireland.

Hargey presented the new gambling Bill to the legislature in September as the first stage of a planned overhaul of gambling regulations. There’s no mention of online gambling in the Bill – that’s still to come in a second phase since Hargey says it requires a longer timescale in order to implement a regulatory framework for the sector.

The proposal, which provides regulations for the provision of virtual asset services, now goes back to the Chamber of Deputies.

Brazil.- While Brazil’s Gaming Regulatory Framework has yet to advance, there has been progress in the area of cryptocurrencies. The Brazilian senate has passed a so-called bitcoin law on the regulation of the national cryptocurrency market. The text now returns for the analysis and approval of the Chamber of Deputies.

Bill PL 4.401/2021 presented by senator Irajá provides regulations for the “provision of virtual asset services” and regulates companies’ operations. It incorporates ideas from other projects on the same topic: PL 3.825/2019 from senator Flávio Arns (Podemos-PR); PL 3.949/2019 from senator Styvenson Valentim (Podes-RN); and PL 4.207/2020, from senator Soraya Thronicke (União-MS). The original text was authored by federal deputy Aureo Ribeiro (Solidarity-RJ).

Under the bill, virtual asset service providers must obtain prior authorisation “from a dependency or entity of the Federal Public Administration.” Such authorisation may be granted through a simplified procedure.

Irajá (PSD-TO) noted that crypto assets moved $R215,000m (USD43,068m) in shares alone in 2021, apart from its use as a means of payment, which grew 6 per cent in the last year.

See also: Chancellor aims to make UK a “global hub for cryptoassets technology”

The bill will not apply to NFTs (non-fungible tokens), which Irajá said could be regulated by the executive in a subsequent act.

Virtual assets
According to the approved text, a virtual asset is “the digital representation of a value that can be negotiated or transferred by electronic means and used to make payments or for investment purposes”, with the exception of traditional national currencies and assets already regulated by law. The Executive Branch must designate a dependency of the Federal Public Administration to define which financial assets will be regulated by the future law.

Guidelines
Virtual assets service providers must follow certain guidelines, such as the obligation to control and keep the client’s resources segregated. It must also adopt good governance practices, transparency in operations and a risk-based approach; information security and protection of personal data; protection and defense of consumers and users; protection of popular savings; robustness and efficiency of operations.

In addition, services must prevent money laundering, the concealment of assets, rights and values, combat the activities of criminal organisations, the financing of terrorism and the financing of the proliferation of weapons of mass destruction, in line with international standards.

Providers
The virtual asset service provider is defined as “the legal entity that performs, on behalf of third parties, at least one virtual asset services”, which can be:

Exchange between virtual assets and national or foreign currency;
Exchange between one or more virtual assets;
Transfer of virtual assets;
Custody or administration of virtual assets or instruments that allow control over virtual assets; either
Participation in financial services and provision of services related to the offer by an issuer or sale of virtual assets.
Other types of services may be authorised if they are directly or indirectly related to the activity of the virtual asset service provider.