With the United Kingdom beginning to relax its lockdown restrictions and new research showing an overall fall in gambling participation during the lockdown, the Gambling Commission has today introduced new restrictions on the regulated industry.
The new guidance follows the Commission publishing data showing the impact that COVID-19 is having on consumers and the industry so far.
This data shows that 0.2 per cent of UK adults have started gambling for the first time during the lockdown, compared to 1.8 per cent who have stopped gambling altogether. More people have also reduced the amount of money spent on gambling than those that have increased spending, with the same true for the amount of time spent gambling.
The Gambling Commissions says that while there is no evidence to suggest an increase in problem gambling, the shift in the market as a result of COVID-19 shows an increase in the use of certain gambling products such as online slots, poker, casino gaming and virtual sports.
This can be explained by the lack of sporting events to bet on, which has resulted in players switching their spend to other gambling products, including the National Lottery.
One of the factors driving the new restrictions appears to be the longer play sessions reported by a minority of players, which could be explained by the switch to more time-consuming games such as online poker and virtual sports.
The new guidance includes additional affordability checks, blocking customers from changing their mind about making withdrawals, and restrictions on bonus offers, with online operators expected to introduce them as soon as possible and for the duration of the lockdown.
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“Operators must use the data they hold to protect their customers and now, more than ever, it’s vital that online operators really know their customers by monitoring how long they are playing for and understanding how financial uncertainty is impacting them and what they can afford to gamble with,” said UKGV chief executive Neil McArthur.
“To ensure operators do that, we are strengthening our guidance and expect operators to take account of that to prevent bonus offers or inducements being offered to customers who are showing any sign of harm.”
The government’s Minister for Sports, Tourism and Heritage, Nigel Huddleston, said of the new restrictions: “It is vital that people are protected from the threat of gambling related harm and I welcome these latest steps from the Gambling Commission. We will continue to monitor the situation closely and will not hesitate to take further action if required.”
Some of the new rules introduced today will also be subject to a consultation later in the month, ahead of their potential introduction as permanent regulations.
Sweden recently introduced coronavirus-related restrictions on the online gambling industry in response to a perceived increase in risk, which operators say lacks evidence and will serve to drive players to unregulated providers.
Lawmakers in New Jersey have introduced legislation that would provide significant tax breaks to help Atlantic City casinos recover the COVID-19 shutdown.
The bill would temporarily modify taxes and fees relating to casinos’ land-based operations, and also amends the current law on the use of promotional gaming credits.
The bill would waive the annual license fee of $500 on each slot machine from July 1, 2020 through June 30, 2021, and directs the Division of Gaming Enforcement (DGE) to distribute any surplus funds and overpayments held in the Casino Control Fund to each casino in proportion to the licensee’s share of the surplus or overpayment.
Taxes levied on a licensee’s gross revenue would be reduced on a sliding scale, with no revenue tax or investment alternative tax applicable on gross monthly revenue that is 25 per cent lower than the same calendar month immediately prior to March 1, 2020.
Monthly revenue of between 25 per cent and 49 per cent of pre-crisis levels would be subject to revenue and investment alternative taxes calculated at 25 per cent of the amount normally due, rising to 50 per cent on revenue that is 50-74 per cent lower. Revenue of 75-99 per cent of pre-crisis levels would be taxed at 75 per cent of the normal amount due.
To qualify for the revenue and investment alternative tax reductions, licensees must prove to the DGE that the entire amount gained from the reduction has been applied to promptly re-hire former employees and new applicants; to attract tourists, gaming, and hospitality patrons to visit and stay at the casino hotel property; to market and promote events that would draw visitors to the property or Atlantic City; or for other activity deemed by the State Treasurer or the DGE to be beneficial to the return of pre-crisis economic, gaming, and tourism levels to Atlantic City.
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Promotional gaming credits would not have to be declared until they are used by patrons at a slot machine, gaming table, or sports pool in the licensee’s casino or internet gaming system, with licensees eligible for a deduction on gross revenue tax in an amount equal to the promotional credits.
The bill would also waive parking and room taxes for the remainder of the year, and allows certain licensing and other fees to be deferred during the period that the licensee’s casino hotel facility remains closed due to the emergency, and during the six-month period after reopening.
The bill (A4032 / S2400) does not impact tax liabilities on gross revenue from casino simulcasting, internet gaming, or sports wagering.
A second bill also introduced by Assemblyman Louis Greenwald (A4031 / S2398) directs the State Treasurer to make short-term loans available to casino licensees from the Property Tax Relief Fund. This would allow them to make payments due on May 1 and August 1, 2020 to Atlantic City in lieu of property taxes, with the loans available solely for this purpose.
The ministry of interior and sport of the German state of Lower Saxony has issued a prohibition order against an international payment processor which it accuses of facilitating illegal online gambling.
The Lower Saxony ministry has national authority and has been working closely with the interior ministry of Hesse, the state responsible for national licensing, to prevent unlicensed online gaming operators from serving German consumers.
The ministry said Monday that it has prohibited an international payment processor from facilitating illegal gambling transactions in the country, making it the second major payment processor to receive a prohibition order following the initial order issued to an international payment provider in June 2019.
“We expect companies in the financial sector to live up to their responsibilities and to critically review and, if necessary, immediately stop working with companies that practice illegal gambling,” said Boris Pistorius, minister of the interior and sport in Lower Saxony. “They are legally obliged to refrain from making payments in connection with illegal gambling – if they do not, we will take action.”
German law currently allows for online lottery sales and sports betting, while online casino gaming is prohibited with the exception of the state of Schleswig-Holstein, which has its own online gaming legislation.
The Lower Saxony ministry added that payment processors can play an essential role in preventing illegal online gambling and urged all companies active in the German market to comply with the law.
“Payment service providers must finally comply with their legal obligation and prevent payments in connection with illegal gambling,” Pistorius warned, adding that those who fail to comply will be banned from the market.
Swedish gambling regulator Spelinspektionen has proposed restricting betting on football to the country’s top four football leagues due to the risk of match-fixing in lower leagues.
The regulator has proposed restricting betting on football to the four highest football leagues in Sweden, comprising Allsvenskan, Superettan, Division 1 and Division 2. In addition, the regulator is proposing that betting on training matches and friendly matches be prohibited, regardless of the teams participating.
The proposal follows new rules introduced earlier this year to prohibit certain bets on individual performance, such as betting on a footballer to receive a yellow card or a tennis player making a double fault.
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The proposal is subject to stakeholder consultation ending on 6 May, with the regulator warning that similar restrictions will likely be introduced for other sports in the future.
A number of US states temporarily suspended land-based casino operations over the weekend as a precautionary measure against the ongoing spread of COVID-19.
The states of Illinois, Indiana, Maryland, Massachusetts, Michigan, New Mexico, Ohio and Rhode Island, all confirmed that casino operations would be temporarily suspended for at least the next two weeks, while casinos in Las Vegas, Pennsylvania, New York and Missouri have also decided to close their doors to the public.
Illinois
The Illinois Gaming Board (IGB) has told the state’s ten casinos that their facilities must suspend gambling operations for 14 days from today.
“The public health of patrons, casino employees, IGB staff, and others is of paramount importance,” said the board.
Penn National Gaming has temporarily suspended operations at its Hollywood Casino Aurora, Hollywood Casino Joliet and Hollywood Casino Alton, while Boyd Gaming closed its Par-A-Dice venue last night.
“Since the coronavirus threat began we have implemented stringent CDC-recommended protocols throughout our enterprise, including increased daily cleaning regimens at our facilities, maximizing air circulation, cancelling or postponing all concerts and live events, and we’re in the process of temporarily closing down buffets, among other initiatives,” said Penn National Gaming president and CEO Jay Snowden.
“This is a challenging time for all of us, and we are very appreciative of the overwhelming support and understanding from our guests and team members. We look forward to reopening our doors just as soon as possible. In the meantime, we will be taking the opportunity to continue our deep cleaning efforts and preparing our casino to welcome our loyal customers back.”
Indiana
The Indiana Gaming Commission said that based on changing circumstances and in the interest of public health, licensed gaming and racing operations will close for at least 14 days from 6:00am this morning.
The IGC will remain in consultation with the state’s licensed casinos, public health authorities and government officials to determine safe protocols for when operations can resume.
Penn National Gaming has temporarily suspended operations at Hollywood Casino Lawrenceburg and Ameristar East Chicago, while Boyd Gaming announced that its Belterra Casino Resort and Blue Chip Casino Hotel and Spa properties will close.
Maryland
Governor Larry Hogan has issued an emergency order to close all Maryland casinos, racetracks, and simulcast betting facilities to the general public indefinitely.
In light of the serious public health emergency created by the COVID-19 pandemic, 12 casino and racing venues and all simulcast betting facilities will be shut from midnight tonight, which will remain in effect until the state of emergency has been terminated or until superseded by other orders.
The closures effect venues including MGM National Harbor, Live! Casino & Hotel, Horseshoe Casino Baltimore, Pimlico Race Course and Fair Hill Races among others.
“This situation continues to evolve and will escalate rapidly and dramatically,” said Governor Hogan. “These are unprecedented actions in an extraordinary situation, but they could be the difference in saving lives and keeping people safe.”
The Maryland Lottery and Gaming Control Agency will work with casinos to facilitate an orderly shutdown of operations.
Governor Hogan reiterated that failure to follow his order prohibiting large gatherings is a crime, and will be enforced if businesses fail to comply.
“It is critical to public health and safety that bars, restaurants, and other businesses across the state comply with the law,” said Governor Hogan. “Anyone who hosts or is part of the crowds in bars this weekend is jeopardizing the health of others and must avoid any contact with family members or friends over the age of 60 or those with underlying health conditions.”
Massachusetts
The Massachusetts Gaming Commission (MGC) voted unanimously to temporarily suspend operations at the state’s three casino properties; Encore Boston Harbor, MGM Springfield and Plainridge Park Casino.
In response to the coronavirus pandemic, the decision was made in collaboration and cooperation with licensees to safeguard the health and well-being of casino guests, employees, and regulators.
Gaming floors were officially closed at 5:59am yesterday, with the decision to be re-assessed in two weeks, while an orderly shutdown process is actively underway.
“As we all continue to navigate this unprecedented and rapidly evolving situation, our agency and our licensees will remain in close consultation with public health authorities and government officials to determine safe protocols for resuming operation,” said the MGC. “As we develop the appropriate course of action, we will keep you informed of next steps.
“We are all doing our best to appropriately and thoughtfully respond to this highly complex and unprecedented set of circumstances and uncertainties. United in a shared goal of preventing the spread of infection, the MGC and our licensees view this immediate mitigation measure as our social responsibility to prioritize the health and safety of one another above all else.”
Wynn Resorts said that it will continue to pay all full-time employees at Encore Boston Harbor during the period as it evaluates the impact of the temporary closure. A limited number of employees and management will remain at the resort to secure, sanitize and maintain the facility.
“The health and welfare of our guests and employees has been our primary concern throughout this health crisis,” said Wynn Resorts in a statement. “Encore Boston Harbor has been operating in excess of the safety recommendations of the US Centers of Disease Control and Prevention (CDC).”
MGM Resorts International has suspended operations at MGM Northfield Park, while Penn National Gaming has also closed its Plainridge Park Casino venue.
“We will do all we can to mitigate the impact on our employees and partners,” said MGM Resorts chief operating officer and president Bill Hornbuckle. “We will monitor this rapidly changing situation and will keep everyone informed as decisions are made to reopen as soon as we are able.”
Michigan
Governor Gretchen Whitmer signed an executive order Friday to temporarily prohibit all events with over 250 people, with certain assemblages exempt from the prohibition, including those for the purpose of industrial or manufacturing work, mass transit, or the purchase of groceries or consumer goods.
“This is about protecting the most people we can from the spread of coronavirus,” said Governor Whitmer. “My administration will continue to do everything we can to mitigate the spread, and to ensure our children, families, and businesses have the support they need during this time. We are going to get through this, but we must be flexible and take care of each other.”
Pursuant to an order from the Michigan Gaming Control Board, MGM Resorts said that it will temporarily suspend gaming operations at MGM Grand Detroit by 5:00pm later today. All hotel, restaurant and bar operations will cease by this time as well, and are expected to remain closed for two weeks, at which time the status will be re-evaluated.
Penn National Gaming has also temporarily suspended operations at Greektown Casino-Hotel for a period of two weeks as a precautionary measure against the ongoing spread of COVID-19.
Missouri
So far Gun Lake Casino is the only venue to proceed with a voluntary short-term closure to protect the health and safety of all casino guests and team members.
The property will close from early this morning until 30 March, with all events and promotions canceled during the period.
Gun Lake Casino will be utilizing this time to conduct an extensive and rigorous deep clean of the entire facility, with all public and administrative areas to be thoroughly cleansed and disinfected using advanced hospital grade procedures and solutions.
“Protecting the health and safety of our guests and team members is of utmost importance and our main priority,” said Gun Lake Casino president and chief operating officer Sal Semola. “While there is no requirement to close, we believe in doing our part to prevent of the spread of COVID-19.”
Nevada
MGM Resorts has decided to temporarily suspend operations at its 13 Las Vegas properties until further notice, effective as of Tuesday. Casino operations will close later today at properties including Bellagio, ARIA, MGM Grand and Mandalay Bay, followed by hotel operations.
“As the coronavirus pandemic has intensified in the United States over the past week, the people of MGM Resorts have worked to try to find a way to continue delivering high quality hospitality and entertainment experiences for our guests while keeping our employees doing the jobs they love in a safe environment,” said MGM Resorts chairman and CEO Jim Murren. “Welcoming people from around the world is what we do, and our employees have tremendous pride in their work.
“Despite our commitment to dedicating additional resources for cleaning and promoting good health, while making difficult decisions to close certain aspects of our operations, it is now apparent that this is a public health crisis that requires major collective action if we are to slow its progression.
“This is a time of uncertainty across our country and the globe and we must all do our part to curtail the spread of this virus. We will plan to reopen our resorts as soon as it safe to do so and we will continue to support our employees, guests, and communities in every way that we can during this period of closure,” said Murren.
Wynn Resorts has also temporarily closed its Wynn Las Vegas and Encore venues as part of its continuing effort to reduce the spread of COVID-19. The closure will be effective Tuesday, and is expected to be in effect for two weeks, after which time the company will evaluate the situation. A limited number of employees and management will remain at the resort to secure and maintain the facility.
New Mexico
New Mexico Health Secretary Kathy Kunkel announced yesterday she would strengthen the public health emergency order issued last week, amending the restrictions on social gatherings to limit the incidence of COVID-19 in the state.
The public health order prohibits gatherings of 100 or more but includes specific exemptions for shelters, retail or grocery stores, courthouses, correction and detention facilities and hospitals, among others.
From today, the amended public health order directs that all restaurants, bars, breweries, eateries and other food establishments will operate at no greater than 50 per cent of maximum occupancy and no greater than 50 per cent of seating capacity.
The amended order also clarifies that all casinos and horse racing facilities must close until 10 April, though this provision does not apply to casinos operating on tribal lands.
“The best thing New Mexicans can do right now is self-isolate and limit person-to-person contact,” said Gov. Michelle Lujan Grisham. “We all have to pull together in this effort. Keep washing your hands with soap and water regularly. Stay at home. Remember your neighbors and buy only what you need when you are shopping.”
New York
So far only one casino in New York State has closed its doors to the public, with others introducing new precautionary measures, despite Governor Andrew Cuomo banning gatherings of more than 500 persons.
MGM Resorts closed Empire City Casino in Yonkers on Saturday and expects to re-open in 14 days, though the operator will continue to re-evaluate its status.
“This is a challenging time and we regret the impact closure will have on our employees, their families and the community,” said MGM Resorts chief operating officer and President Bill Hornbuckle. “This is a unique and unprecedented public health crisis, and the wellbeing of everyone in the community is our most pressing concern.”
Genting Group’s Resorts World Casino New York said that precautionary measures are being taken due to the current situation, with capacity limited to 500 guests per section.
Rivers Casino and Resort Schenectady remains open but confirmed that all entertainment events had been postponed until further notice. Tioga Downs Casino is also open but has closed its poker room and postponed a number of events.
Ohio
Governor Mike DeWine signed an executive order to prohibit mass gatherings of more than 100 persons at any time.
According to the order, the state’s 11 casinos and racetracks with video lottery terminals are considered places of mass gatherings. The order will take effect immediately and will remain until the state of emergency declared by the Governor has been rescinded or modified.
Penn National Gaming confirmed it has temporarily suspended operations at its four gaming properties in the state.
The operator said that since Hollywood Casino Columbus, Hollywood Casino Toledo, Hollywood Gaming at Dayton Raceway and Hollywood Gaming at Mahoning Valley Race Course collectively employ more than 2,000 team members, it was left with no choice but to temporarily close those facilities.
Boyd Gaming’s Belterra Park closed on Friday in response to the order and said that it does not have an estimated re-opening date at this time.
Pennsylvania
Four of Pennsylvania’s 12 casinos have temporarily closed over concerns regarding the coronavirus, with Governor Tom Wolf encouraging the suspension of large gatherings of 250 persons or more.
“Pennsylvania has taken a different approach than most other states and countries,” Governor Wolf said. “We’re trying to approach the coronavirus outbreak in a measured way. Where there is evidence of exposure to COVID-19, the commonwealth has taken decisive action.
“Closing schools and early learning centers – both public and private, prohibiting visitors from entering senior care and long-term care facilities, and closing government offices. We will continue to monitor this situation as it unfolds to determine if – and when – we will do this in other counties in Pennsylvania.”
Rush Street Gaming temporarily closed its Rivers Casino Philadelphia and Rivers Casino Pittsburgh venues last night for fourteen days.
Although there have been no known cases of COVID-19 at the property, the operator said it was suspending operations out of an abundance of caution and to promote the social distancing recommended by health officials.
Boyd Gaming’s Valley Forge Casino Resort remains closed until Friday 27 March, following a previous order by the Governor mandating the closure of all entertainment venues in Montgomery County.
Rhode Island
Both of the state’s properties, Twin River and Tiverton Casinos, were closed to the public on Saturday following consultations between the Rhode Island Lottery and the state’s Department of Health.
The closure is anticipated to last one week, at which point the situation will be reassessed based on the most up-to-date data and guidance from the Rhode Island Department of Health.
“Impacted employees will be eligible for unemployment benefits,” said lottery director Gerry Aubin. “A limited number of employees will remain at the facilities to secure, sanitize, and maintain them. During the closure, Twin River will work with the Department of Health to implement additional protections for customers, before the facilities reopen.
“The casino management is fully cooperating with the lottery on the closure. We understand that this decision may be disappointing to our customers, and we appreciate your patience. Our top priority is the safety of Rhode Islanders.”
La Rioja is looking to become the second province in Argentina to regulate online gambling.
The state gambling regulator Administración Provincial de Juegos de Azar (Ajalar) has signed an agreement with its counterpart the Provincial Institute of Lottery and Casinos (IPLyC) of Misiones to develop a safe and responsible online gambling market for La Rioja.
The IPLyC of Misiones launched its own online betting and gaming site in December 2015 through Misionbet.com.ar, in defiance of the national lottery association La Asociación de Loterías, Quinielas y Casinos Estatales de Argentina (ALEA).
The site was taken offline in May 2017 on the orders of the Buenos Aires prosecutor following complaints from ALEA that the site accepted bets from Buenos Aires residents.
It resumed operations in January 2018 after a court overturned the ban and restricted its offering to players located in Misiones.
La Rioja’s gambling regulator said that it will leverage the experience of Misiones to develop iGaming regulations that allow adults in the province to play games from their mobile and desktop devices.
“It is important to note that we aim to innovate the development of gambling by integrating new information and communication technologies, which does not mean that there will be no limitations to prevent gambling,” said Ajalar administrator Ramón Vera.
Gaming Intelligence
The American Gaming Association (AGA) has partnered with the Association of Gaming Equipment Manufacturers (AGEM) to launch a new campaign to combat the unchecked spread of illegal gaming machines across the US.
The campaign will focus on providing state and local policymakers, law enforcement, and regulatory agencies with new resources and tools to stop the proliferation of unregulated gaming machines, targeting key states such as Pennsylvania, Missouri and Virginia where the spread of unregulated machines has been particularly extreme.
The two associations have released a fact sheet that distinguishes between the regulated casino, lottery and distributed gaming markets and the unregulated, highlighting the negative consequences of the spread of illegal machines.
This includes an increase in criminal activity and a lack of player protections, along with potential solutions to combat the problem by establishing small state and local government task forces.
“Stamping out the illegal market that threatens the safety of consumers will always be one of the gaming industry’s highest priorities,” said AGA president and CEO Bill Miller. “We are proud to work with the Association of Gaming Equipment Manufacturers and our fellow industry partners to combat the spread of illegal machines.
“The AGA is encouraged that policymakers in some states such as Virginia have begun to recognize the dangers of these machines and have taken recent legislative action toward outlawing them. Unfortunately, other jurisdictions where these machines have become pervasive may believe their only recourse is to regulate and tax them. Rewarding bad behavior is not the answer, and we hope our education efforts will make it clear that the only real solution is to stop the spread of these devices.”
AGEM executive director Marcus Prater commented: “The regulated gaming industry has rarely been more united on a singular issue and now we have a tool to address the misinformation and deception that unregulated machine companies use to confound law enforcement, the courts, and local citizens.
“The spread of these machines represents a serious threat to the overall regulated market that has invested billions in infrastructure while also creating thousands of jobs and substantial tax benefits in the communities they serve. Moreover, unregulated machines prey on confused players who see slot machine symbols and think they’re getting a fair chance when they absolutely are not.”
More than 20 gaming associations have joined the AGA and AGEM in opposition to the spread of illegal gaming, including the National Indian Gaming Association, the North American Association of State and Provincial Lotteries, the International Center for Responsible Gaming, the National Council on Problem Gambling, multiple state casino and tribal associations, and both of the leading independent gaming equipment test labs.
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Spain’s gambling regulator has launched a public consultation into new marketing and responsible gambling regulations.
Gambling regulator La Dirección General de Ordenación del Juego (DGOJ) published the Draft Royal Decree on Commercial Communications for Gambling activities on February 24, with public responses due to by March 16.
The new regulations are designed to strengthen the 2011 law under which Spain’s regulated online gaming market launched in 2012, since when gambling advertising has increased unabated to the point of sparking a public backlash.
The draft royal decree states that parliamentarians share the public’s concern and aim to balance the commercial interests of operators with adequate protections for consumers, particularly young people.
The 138-page document sets new responsible gambling requirements for operators and also introduces new rules for advertising, promotions and sponsorship.
The new marketing regulations apply to gambling operators and their affiliates and prohibit them from advertising using brands, trademarks or commercial images they do not own, as well as prohibiting any reference to another operator’s games or intellectual property without authorisation.
All advertising must be truthful and socially responsible so as not to promote excessive gambling, and the use of imagery such as luxury products or money will be considered a breach of the social responsibility requirement. Ads that encourage the viewer to share the message of the ad with others will also be deemed irresponsible.
In addition to general rules regarding responsible gambling messaging and preventing children from being exposed to gambling advertising, the draft royal decree sets specific rules by gambling activity and medium.
Sponsorship
Sponsorship agreements involving naming rights to sporting venues will be prohibited, as will any naming rights related to sports teams or any other entity outside the betting and gaming sector. Sponsorship of well-known figures and their use in marketing is also prohibited.
Promotions
No promotional offers will be allowed for new customers above €100 in value, with the draft also giving the regulator authority to set limits on the value of promotions to existing customers.
Bonuses must be shown separately from deposited funds in a player’s account and the bonus rules should not prevent players from withdrawing deposited funds, while loyalty bonuses can only be offered without requiring players to complete a number of bets or games for the bonus to be released.
Players who have increased their deposit limit must be excluded from promotions for a period of 30 days after the increase, and no promotions may be sent to players who have closed their account.
Free Games
Free games can only be offered to registered players who are logged in and must accurately replicate the chances of winning compared to the real-money version of the game so as not to give players a false impression.
Advertising
Radio and television advertising will only be allowed between 1am and 5am, although live sports broadcasts between 8pm and 5am may include ads which do not reference promotions or bonuses of any kind; calls to action such as ‘bet now’; or early cash-out or odds.
Operators must not use well-known characters in ads, real or fictional, with exceptions for characters made famous by the ad and narrators of live broadcasts, and all commercial communications must be immediately identifiable as such.
The advertising rules also set exemptions for pari-mutuel betting, instant lotteries and bingo, which may be advertised from 10pm to 6am in programming rated 18+.
The restrictions do not apply to lottery draw games, which may be advertised freely except for before, during and after programming primarily aimed at children.
Social Networks
Gambling promotions on Twitter and other social networks will also be restricted, with every post from an operator’s official account deemed to be a commercial communication, excluding graphical representations or retransmission of a sporting event.
Every fourth post must be a responsible gambling message and operators must make use of any tools available from social networks to prevent minors from following their accounts.
The draft decree also sets out the requirements for a comprehensive social responsibility policy, including problem gambling prevention mechanisms, self-exclusion and self-prohibition, and compliance.
The Draft Royal Decree on Commercial Communications for Gambling Activities is scheduled to come into force on July 1, 2020.
Gaming Intelligence
Kentucky Governor Andy Beshear has called on state lawmakers to pass sports betting legislation to stop revenue from flowing to neighboring states.
The governor was joined by a bipartisan group of lawmakers at the Capitol on Thursday to urge lawmakers to pass HB 137, which would legalize sports betting at horserace tracks and the Kentucky Speedway, as well as authorize mobile betting.
The bill, which would also authorize fantasy sports and online poker, passed the House Licensing, Occupations and Administrative Regulations Committee in January by a vote of 18-0, highlighting broad bipartisan support for the measure.
“We have a real urgency in Kentucky. We need new revenue to support the needs of our communities, our state and especially our children who deserve the best education,” said Governor Beshear. “We have an urgency to keep millions of Kentucky dollars from crossing our rivers and going to support the education and pension systems in our neighboring states.
“We are with business, education and pension leaders – Republicans and Democrats – working together on the same team. We all agree that passing sports betting is the right thing to do and we are working together to help move the state forward.”
Lieutenant Governor Jacqueline Coleman said: “Sports wagering provides much needed revenue and has bipartisan support in the legislature. Passing this bill is a way we can all work together to support public education and provide Kentucky’s students and teachers the resources they need to cultivate the workforce of the future.”
State Representative Adam Koenig added: “This is a common sense proposal with broad support that would allow adults to legally engage in sports bets as entertainment.
“We know that Kentuckians are already gambling on sports, let’s make a move that allows us to regulate it and generate revenue for the state without raising taxes.”
Currently, sports betting is legal in 20 US states, including Indiana, Illinois, Tennessee, West Virginia, Mississippi and Arkansas.
“Like it or not, residents from every community in the Commonwealth are already betting on sports, either illegally through bookies or online, or legally across our border,” said State Representative Al Gentry. “Regulating and taxing it in Kentucky helps us minimize illegal activity and generate revenues that allow us to help those with addiction problems and contribute millions to our pension liabilities. It helps us retain millions in discretionary spending dollars by our residents within our borders.”
Representatives from the State Fraternal Order of Police, firefighters, property valuation administrators, Kentucky Travel Industry Association, meetNKY, Commerce Lexington and the NKY Chamber also attended Thursday in support.
“As the voice of Kentucky’s business community, passing sports wagering in 2020 is a no-brainer,” said Ashli Watts, president and CEO of the Kentucky Chamber of Commerce. “Not only will it make us more competitive with our surrounding states who have enacted it, but it will also put much needed revenue in our state budget to help fund our state’s public pension system.
“Sports wagering is a win-win for Kentucky – it’s good for business, good for taxpayers and we encourage the legislature to take action this General Assembly.”
Gaming Intelligence
The new draft of the German State Treaty on Gambling, which was provisionally approved by the country’s 16 states over the weekend, has been met with bemusement by politicians and the industry.
The draft includes unanimously welcomed proposals such as establishing a national gambling regulator for the first time with wide powers to police the market and combat unlicensed operators, together with proposals that critics say demonstrate a complete lack of understanding of modern consumers and technology.
The proposed treaty would end Germany’s long-running but ineffective prohibition of online casino gaming by allowing a national regulator to issue online casino licenses to operators, but also allows each state to decide what online gaming is allowed.
The draft restricts online gaming to slots and poker and gives states authority to approve other casino games such as roulette and blackjack, while live sports betting would only be allowed on very limited markets such as the next goal.
“The decision to finally abolish the ban on online gambling and issue permits for virtual slot machines is a long overdue step in the right direction,” said Dr. Dirk Quermann, president of the German online casino association Deutscher Online Casinoverband (DOCV).
“But why then are other online casino games like roulette once again treated differently on the internet. It is difficult to understand the federal state’s boundaries.”
Quermann added that giving individual states authority over online casino games will only create new state monopolies in a digital world, but stressed that he would have to carefully examine the detail of the proposal before making a final assessment.
That sentiment was echoed by German sports betting association Deutscher Sportwettenverband (DSWV).
“The federal states have presented a highly complex, almost 70-page regulatory framework that first requires our intensive analysis to determine its full scope,” said DSWV president Mathias Dahms.
Dahms welcomed the progress towards better regulation of the market explained that his early conclusion is that the restriction on live betting endangers the goal of channelling consumers to a legal and regulated offering because 60 per cent of all betting is in-play live betting.
“Disappointed consumers will turn to black market offerings that don’t comply with legal requirements,” he warned.
He also questioned whether the proposed cross-operator €1,000 a month deposit limit for players would achieve its goal of reducing problem gambling, and said that the proposed five-minute wait time for players switching sites “completely ignores the reality of life for consumers in the digital age”.
There was also a mixed response from lawmakers, with Schleswig-Holstein state chancellery secretary Dirk Schrödter (CDU) hailing the agreement as a breakthrough and a really good result, while a CDU spokesperson conceded that there is a need for improvement, particularly around live betting. The CDU’s partner in pushing for a better regulated gambling market went further, warning that no deal is better than a bad deal.
“It should remain our goal to get nationwide gambling regulations. But that is not possible at any cost,” said Jan Marcus Rossa, the FDP spokesperson for gaming policy.
“We Free Democrats welcome the fact that nationwide regulations for online gambling are finally emerging. Without question this is an important step in the right direction, paving the way for future suppression of the illegal online gambling market in Germany.
“However, we must not overlook the fact that the current draft does not meet our expectations in all areas and falls short of the state parliament resolution of 2017.”
Schleswig-Holstein broke away from the State Treaty in 2017 to pursue its own gambling policy that already includes live betting and online casino.
“This applies in particular to the topics of monopoly, access restrictions and online casino as well as the goal of achieving equal regulatory treatment for all online forms of gambling,” Rossa said. “We are critical of the treatment of live betting and data protection aspects of the proposed cross-provider player accounts (€1,000 limit files).”
The FDP is urging the Schleswig-Holstein parliament to quickly consider the proposal and make changes during the upcoming consultation process to align the proposed state treaty with the regulations of the state, or else continue alone.
A spokesman for the Schleswig-Holsetin parliamentary group of Alliance 90 / The Greens added: “The breakthrough in the state negotiations is a huge step towards successful regulation.
“Liberalisation combined with strict but balanced regulation could enable us to achieve what other countries like Denmark have already done: to largely displace illegal offers in favour of a safe and regulated gambling offer.”
Gaming Intelligence