Peter-Paul de Goeij, director of the Netherlands Online Gambling Association (NOGA), is calling for a “rigorous” response from Kansspelautoriteit (KSA) after research revealed that illegal operators are allowing minors to gamble. The findings, shared by Keurmerk Responsible Affiliates (KVA) and Licensed Dutch Gaming Providers (VNLOK), highlight a significant issue within the Netherlands’ gambling industry.

Research Findings on Underage Gambling

The research conducted by KVA uncovered that minors in the Netherlands can easily gamble with offshore operators. The study showed that these operators do not require the necessary age verification, allowing anyone with an email address or telephone number to create an account. This lack of oversight enables those below the legal gambling age of 18 to deposit and gamble, often using cryptocurrency for anonymous transactions.

Further, the study found that illegal casinos use the logos of banks and legal operators to mislead minors into believing that their deposits are safe. This practice is particularly concerning as it exploits the trust and security associated with these financial institutions.

Previous Research and Industry Concerns

KVA’s recent findings build on previous research from 2023, which indicated that illegal sites were targeting players attempting to bypass Cruks, the Netherlands’ self-exclusion scheme. This ongoing issue highlights the need for stringent regulatory measures to protect vulnerable groups from the risks associated with illegal gambling.

De Goeij emphasized the heightened risks for underage gamblers, noting their increased susceptibility to addiction and related mental health and financial problems. He urged the KSA to take decisive action to address these issues and fulfill its mandate to protect consumers.

“The Kansspelautoriteit (KSA), the Dutch Gambling Authority, is expected to address these issues rigorously,” De Goeij told iGB. “The KSA is likely to enhance monitoring and enforcement actions against unlicensed operators, imposing hefty fines and blocking access to these websites. Educating the public, especially minors and their parents, about the risks of unlicensed gambling and how to avoid these sites can be an effective preventive measure.”

Recommendations for KSA Action

De Goeij advocates for increased collaboration between the KSA and other jurisdictions, sharing intelligence and best practices to combat illegal operators. He also suggests that the KSA should work closely with financial institutions to block illegal transactions and cut off revenue streams to offshore operators.

“The KSA should employ advanced technologies like geolocation blocking and AI-driven monitoring to detect and shut down access to offshore gambling platforms,” De Goeij added. “Working with internet service providers (ISPs) to block unlicensed gambling sites could significantly reduce access.”

Broader Issues in the Dutch Gambling Market

The timing of KVA’s research coincides with growing industry concerns over regulatory changes in the Netherlands. Recently, a coalition agreement proposed increasing the gambling tax from 30.5% to 37.8%, aiming to generate an additional €202m in tax revenue. NOGA has expressed concerns that such measures could push operators towards the black market, undermining the regulated market’s integrity.

Earlier this year, the house of representatives voted to ban “high-risk” gambling, including online slots, and to prohibit online gambling advertising. These regulatory changes, combined with higher taxes, could drive more players to unlicensed sites, where consumer protections are minimal.

De Goeij is particularly worried about the potential impact on the legal market, warning that higher taxes and advertising restrictions might reduce revenue for the Dutch government and legal operators. This shift could lead to increased fraud, addiction, and other harms associated with unregulated gambling.

NOGA’s Strategic Recommendations

To combat the potential rise of the black market, De Goeij recommends that the KSA and the government adopt evidence-based regulations that do not overly burden legal operators. He believes that encouraging innovation and improving customer experiences in the legal market can help retain and attract players.

“The KSA and the government should encourage innovation and better customer experiences in the legal market to retain and attract players,” De Goeij said. “They should also be continuously researching market trends and player behavior to adapt regulations and strategies dynamically. Only by taking a proactive and balanced approach, the Netherlands can protect its citizens while maintaining a robust and attractive legal gambling market.”

Source: “NOGA urges rigorous KSA response after research finds illegal operators accepting bets from minors”. iGaming Business, May 23, 2024.

The post NOGA Urges KSA to Act on Minors Gambling with Illegal Operators appeared first on Keno Wizard.

On April 27, 2023, the Gambling Act Review white paper was published in the UK, and everyone hoped it would be greatly helpful when it comes to gambling regulation. However, here’s what happened after one year.

Changes in the law

The GB Gambling Commission discussed online and land-based casinos, as well as horse racing. The consultations about the Commission’s proposals began in July, and its main focus was promoting sustainable and safe gambling, as well as conducting affordability checks.

The discussion about the relationship between operators and players was one of the main topics. According to Victoria Reed, a Founder of Better Change, the standards are already high, and in order to develop more strict regulations, the balance is needed. She said: “This is already a heavily regulated industry so I would argue that standards are generally pretty high when compared with other industries. But the nature of our business is heavily influenced by technology and customer trends – therefore, there is never time to rest on our laurels and think we have got it all figured out.”

Matt Zarb-Cousin, Gamban’s co-founder and director of external affairs, is positive that operators will benefit from improving the relationship, and in order to do that, they would have to comply with a change of standards.

The sustainability and safety of gambling must be priorities, even from a preventive standpoint. Reed commented on that: “We see “safer gambling” very much as the practice of gambling safely. Therefore, the act of restricting, limiting, banning, blocking, and even stigmatizing gambling has no place in safer gambling. As a result of this, we see very little in the white paper that for us constitutes safer gambling – instead, we feel the measures such as stake limiting and financial risk checks are more aligned to player protection.”

Preventing problem gambling and major concerns

Better Change keeps supporting Positive Play and tries to prevent problem gambling before the issue occurs. Proposals from the white paper comply with that, but in order to work, they have to be carefully implemented.

The losses have to be limited since the players who lose more are at higher risk of becoming addicts, so setting the limits is one of the best ways to prevent it.

Even the operators would benefit from that, since if the customer loses all their money, they would have to be self-excluded and they would never get back. The Commission is ready to set up the affordability checks, but it will have to be done case-by-case in order to work. On top of that, a statutory levy on gross gambling yield will be imposed, and it will be 1%.

Zarb-Cousin commented on that: “Affordability checks, if they’re done properly, and the levy will make a big difference. The quantity and the resources that will be able to go into treatment and prevention campaigns – all of this will make a big difference.”

The main issue about the proposals from the white paper is funding. There are some funds donated for research, education, and treatment of problem gambling, but it seems the only way to get funds is a mandatory levy.

However, Zarb-Cousin hopes that the suggested changes can be implemented by October 2024, including the pilot program for affordability checks, which should be finished by then. Next year, the new levy system is supposed to be implemented, two years after the release of the white paper.

However, Melanie Ellis, a gambling regulatory lawyer and partner at Northridge Law LLP, is concerned that the new regulations could drive the players to illegal operators. She said: “There is a risk that some proposals, such as the stake limit for online slots and restrictions on bonuses and incentives, could lead to a significant increase in the number of customers turning to unlicensed operators, where they may not be offered tools to control their gambling or interventions if they display indicators of harm.”

However, it’s clear that the white paper increased the awareness of problems in the industry and was a significant step towards solving the majority of them. However, a lot of work is ahead of the UK regulators, and only years of hard work can result in complete change. Sustainability remains the main focus.

Source: “Gambling Act review white paper: One year on”, iGamingBusiness. April 24, 2024.

The post How Gambling Act Review White Paper Changed the Industry appeared first on Keno Wizard.

Not everyone has been welcoming of the porposal and the American Gaming Association, a trade group, curtly rebuked the legislation in its current form. A measure such as that would further depress the competitiveness of the regulated gambling market, and give teeth to rogue and black market operators.

Not Part of the Pack

But this prospect does not seem to worry at least one company in the industry’s corner which remains non-chalant at the prospect of losing its keen edge to the black market. For now, though, Underdog Sports is leading a lonely club of operators that are plumping for the GRIT Act as outlined earlier.

The operator echoes the sentiment expressed earlier this year by the National Council on Problem Gambling (NCPG), arguing that the measure is a cleverly designed federal law that will help fill the current funding gap in the prevention and treatment of gambling addiction and research.

Underdog spoke exclusively with Sports Handle outlining its support for the GRIT Act and why it believes it is the right thing to do moving forward. In a statement to the publication, Underdog Sports VP of responsible gambling Adam Warrington said:

“There is a need for dedicated federal resources to aid problem gambling prevention, research, and treatment. The GRIT Act would direct existing tax dollars paid by legal operators to be utilized to fill the current funding gap.”

Would this see more operators follow suit? So far the response has been tepid, with responsible gambling campaigners and organizations, such as the aforementioned NCPG, showing a degree of partialness towards the matter.

Operators have mostly mummed the word as if waiting for an official cue. One such has come from AGA, criticizing the GRIT Act and warning about the dangers of passing legislation without a broader collaboration between lawmakers and authorities.

Sorely Needed Action Now

Underdog Sports’ perspective is a refreshing take on the issue, but it’s a lone voice for the time being. For actual industry reading to be made, there will have to be more companies that speak up about where they stand on the matter.

It is not very likely to see individual operators hew too far from the position outlined by AGA, but Underdog Sports is already bucking the trend which will most likely beget a broader debate, and set a healthy precedent.

Some lawmakers have already voiced their concern about the lack of adequate measures to curb problem gambling in the United States, with Congresswoman Andreas Salinas sounding the alarm over the lack of adequate measures.

The post Underdog Sports Bucks Trend and Supports GRIT Act appeared first on Keno Wizard.

Sweden’s gambling regulator, the Spelinspektionen, has responded positively to recently proposed changes to the Money Laundering Act that would adjust penalty fees for AML violations. However, the authority proposed a different approach for fines that are less serious and unsystematic.

Under the proposed adjustments, the Spelinspektionen must adjust penalty fines for operators that violate the country’s anti-money laundering rules. Starting April 1, 2024, the Spelinspektionen must specify a maximum fine size for violations of the AML laws, in line with the rules outlined in the Gambling Act.

Under these rules, the Spelinspektionen can revoke the license of a regulator that has committed serious, repeated or systematic violations. In the meantime, the Spelinspektionen is limited to issuing a correction order for violations that are not serious, repeated or systematic.

The Spelinspektionen is fairly positive about the changes but noted that the issuing of a correction order might not be an appropriate intervention for certain offenses. As a result, the authority may lack the relevant opportunity to intervene in certain cases.

The Spelinspektionen also noted that since violations of the Money Laundering Act have several alternative ways to calculate the maximum possible penalty, they should be regulated in a separate provision.

In the meantime, the Spelinspektionen welcomed the introduction of a written requirement for telephone sales of gaming services as this would help to protect consumers from harm.

In other news, the Swedish government recently proposed the allocation of more money to the Spelinspektionen and Finansinspektionen. Seeking to encourage a collaborative effort between the two regulators in the war on unlicensed gambling, the government allocated more budget to both entities.

Under the proposal, the Spelinspektionen would receive SEK 10.8 million (around $970,000) in 2024, SEK 15.6 million ($1.4 million) in 2025 and SEK 18.5 million ($1.66 million) in 2026. The Finansinspektionen, on the other hand, would receive SEK 4.5 million ($400,000) in 2024.

Earlier this month, the regulator also published information about the Swedish gambling market’s performance in the second quarter of the year, reporting that the authority’s licensees collectively recorded a turnover of SEK 6.7 billion (around $602,000) during the period.

Last month, the Swedish National Audit Office decided to probe into the Spelinspektionen’s work, evaluating the regulator’s actions, strategies, and overall effectiveness.

The post Spelinspektionen Responds Positively to Proposed Money Laundering Act Changes   appeared first on Keno Wizard.

The Swedish Trade Association for Online Gambling (BOS) has addressed the recently proposed changes to the Money Laundering Act. Put forward by the Ministry of Finance, the memorandum with proposals seeks to increase the penalty fee for certain violations.

The BOS, which represents around 20 licensed gambling companies in Sweden, expressed its delight to have been invited to comment on the matter. The body said that it sees the logic in increasing fines for AML violations to be similar to the fees for violations of the Gambling Act.

Gustaf Hoffstedt, BOS’ secretary general, confirmed that AML violations are among the most serious violations, which is why there is no reason to downgrade them. It concluded that would approve the Ministry’s proposal if the following points are taken into mind and included as necessary additions:

First of all, the BOS said that the Spelinspektionen’s sanction decision must be of high quality. Hoffstedt noted that courts could potentially cause trouble if they opt to change the authority’s decision to a large extent. He proposed initiating supervisory cases as a possible solution.

Secondly, Hoffstedt suggested that the level of sanction fees should be on par with the gambling industry’s “relatively marginal impact” on the financial system’s stability and credibility compared to financial actors.

Thirdly, the BOS proposed to base fines for AML breaches on the gross gaming revenue of gambling companies. Hoffstedt acknowledged that this is already outlined in the Ministry of Finance’s memorandum, which he praised on behalf of the gambling industry.

Hoffstedt: Fines Should Be Based on GGR

Hoffstedt commented on the difference between charging companies based on their total turnover and charging companies based on their GGR:

Typically, the gambling surplus makes up 5-10 percent of the total turnover, while profits to gambling consumers thus account for 90-95 percent. It falls on its own unreasonableness that penalty fees to be paid by the gambling company are based on money that does not belong to the gambling company, but that belongs to the gambling consumers.

Gustaf Hoffstedt, secretary general, BOS

The secretary general concluded that previously, the sanctions system had “lacked any form of proportionality.” However, the changes will set fairer standards that will nevertheless send clear signals to companies that violate the rules.

Speaking of turnover, the Spelinspektionen just published information about the performance of licensed operators in Q2 2023. The authority noted that turnover remains more or less stable, recording only a small decrease.

The post Sweden’s BOS Comments on Proposed Money Laundering Act Changes appeared first on Keno Wizard.

The gambling regulator in the UK, the Gambling Commission, announced the launch of consultations regarding the proposed changes following the review of the Gambling Act in the country. The consultations launched Wednesday and will run for 12 weeks. During that time, the Commission asks gambling operators, health experts, consumers and other groups involved in the sector to submit their opinion regarding key changes that seek to improve the regulated gambling sector. Ultimately, the proposals seek to make the UK gambling industry safer, fairer and free from crime.

Stuart Andrew, the country’s Gambling Minister, explained that the proposed changes to the gambling regulation seek to make the new rules suitable for the digital era. Additionally, he explained that the government seeks to ensure customers that enjoy gambling responsibly to continue doing so while protecting at-risk or vulnerable people from gambling harm. Andrew added: “These consultations give people a chance to have their say and I encourage everyone to make their voice heard.”

“We are updating our decades old gambling laws to make them fit for the smartphone era.“

Stuart Andrew, Gambling Minister

The recently launched consultations will seek the opinion of consumers, gambling companies and industry stakeholders within four strategic areas. Those include proposals for strengthening age verification for land-based gambling venues and improving customer choice on direct marketing. Moreover, the Commission seeks opinions regarding the design of remote games and financial risk and vulnerability.

In addition to the aforementioned areas, the Commission seeks input regarding proposals that call for the implementation of personal management licenses for employees that hold management-level roles. Separately, the regulator would consult on proposals “relating to the composition and decision-making processes of the Commission’s Regulatory Panels.”

Changes to the Gambling Sector Are Imminent

The launch of the consultation comes after the gambling regulator touched on the topic of cashout issues for bettors. The Commission’s director of communications, Lucy Denton, recently explained that operators should never obstruct customers from withdrawing their funds. Yet, she added that the application of specific restrictions related to depositing is something that may be implemented.

“We are pleased to now focus consultation and engagement on the detail of how such protections and controls can be implemented in practice.“

Tim Miller, executive director for research and policy at the Gambling Commission

Focusing once again on the consultations, the regulator’s executive director for research and policy, Tim Miller, highlighted the importance of input from consumers and gambling companies. “These consultations offer the opportunity for people to have their say on proposals aimed at empowering and protecting consumers,” he said.

Miller explained that some of the proposals have already seen plenty of engagement. Finally, he explained that the launch of the consultations represents a milestone moment for the changes in gambling regulations in the country.

The post UKGC Launches Consultations on Gambling Act Review Proposals appeared first on Keno Wizard.

The Czech Republic’s Gambling Act is undergoing proposed amendments following a review of the laws that became effective on January 1, 2017.

The main objective of the Regulatory Impact Assessment (RIA) for the Act on Gambling and its Associated Legislation is to improve player safety, combat criminal activities, and foster the growth of legal gambling opportunities.

Introduction of Panic Buttons

To enhance player protection in both online and land-based casinos, a new panic button feature will be mandated and prominently displayed for players. When activated, this button will block the player from gambling with all operators for a 48-hour period.

Additionally, players will have the option to self-exclude themselves for specific durations during which they cannot be removed from the self-exclusion database. They will also have the choice to extend the exclusion period. The register will be expanded to include individuals under criminal investigation.

Laws to Legalise Live Dealer Gaming

The proposed amendment will permit live dealer games in the country, as presently, only random number generator and digital table games are allowed at live casinos.

Furthermore, measures will be taken to increase the prevention of illegal online gambling. Any operator whose games are accessible in the Czech Republic will be considered operating there, even if they are not explicitly targeting local players. This extension will encompass all “applications and platforms that offer or mediate illegal gambling games,” which may limit affiliates to working only with locally licensed operators.

New Fee System for License Applicants

The draft bill also introduces changes to the payment of deposits for license applicants. The amount paid will now be determined based on four different bands.

Currently, those seeking a license must either deposit funds into a ministry bank account or provide a bank guarantee. For gaming halls, the deposit ranges from CZK 1.0m to CZK 50.0m, while casinos pay between CZK 10.0m and CZK 50.0m. For online licenses, operators pay CZK 5.0m for betting on racing, CZK 30.0m for odds betting and totalizator games, and CZK 50.0m for lotteries and casino games.

The total deposit amount will be determined by the level of customer activity and the risk associated with the games offered by the licensee.

The post Proposed Amendments To Czech Republic’s Online Gambling Act appeared first on Keno Wizard.