Denmark’s gambling regulatory framework has undergone significant updates to enhance oversight and maintain the integrity of the gambling industry. The Danish Gambling Authority (DGA) has introduced new measures to combat illegal marketing practices, overhauled the certification program for betting and online casinos, and tightened regulations concerning high-risk jurisdictions. These initiatives reflect Denmark’s commitment to promoting responsible gambling and preventing financial crimes.

Stricter Controls on Gambling Marketing

The DGA, in collaboration with the Consumer Ombudsman and the Gambling Advertising Board, has forged a new agreement to intensify efforts against the illegal marketing of gambling services. This agreement aims to streamline actions taken against non-compliance by consolidating resources and information sharing among the three bodies. It establishes clear protocols for forwarding cases and addressing violations, particularly those that mislead or exploit vulnerable groups.

Under the new framework, the Gambling Advertising Board will escalate serious non-compliance issues to the Consumer Ombudsman or the DGA. Conversely, the ombudsman and the DGA will direct complaints regarding breaches of the industry’s code of conduct to the Advertising Board. This ensures a coordinated approach to uphold marketing standards, safeguarding consumers and reinforcing social responsibility within the industry.

Revamped Certification Program for Betting and Online Casino

Effective January 1, 2025, Denmark will implement a new certification program for betting and online casinos, with mandatory adoption by July of the same year. The updated program introduces significant changes to license holders’ and game suppliers’ requirements and responsibilities, such as the handling of game and RNG certifications. It also simplifies the reporting and testing processes, reducing the previous two-month deadline for submitting standard reports to one month.

This update is part of the preparation for the DGA’s introduction of a games register that will manage RNG and game certificates more efficiently. The new standards aim to enhance clarity and compliance in the rapidly evolving gambling landscape.

Enhanced Monitoring of High-Risk Jurisdictions

In line with updates from the Financial Action Task Force (FATF), the DGA has also revised its approach to monitoring high-risk jurisdictions. This includes detailed guidance on enhanced due diligence procedures required for players from countries listed on FATF’s Grey and Black Lists, denoting varying risk levels and recommended actions. This measure is crucial for preventing money laundering and terrorist financing through gambling activities.

Gambling operators are mandated to incorporate these lists into their risk assessments and apply stringent customer due diligence for players from these jurisdictions. This not only complies with international financial security standards but also strengthens the integrity of Denmark’s gambling sector.

Source:

Update to the FATF’s list of high-risk jurisdictions, spillemyndigheden.dk, July 8, 2024.

Consultation on updated certification programme for betting and online casino, spillemyndigheden.dk, July 15, 2024.

Ny aftale skal styrke indsatsen mod spilvirksomheders markedsføring, forbrugerombudsmanden.dk, July 11, 2024.

The post Denmark Updates Gambling Rules and High-Risk Jurisdiction Monitoring appeared first on Keno Wizard.

A recent report commissioned by the New Jersey Division of Gaming Enforcement (DGE) and conducted by researchers at Rutgers University reveals a notable decline in high-risk problem gambling in the state, even as sports betting continues to gain traction. 

New Jersey’s Problem Gambling Stays Three Times Higher Than National Norm

The report’s key findings indicate a decrease in high-risk problem gambling rates from 6.3% to 5.6%. However, the study highlights that New Jersey’s rate of problem gambling remains three times higher than the national average, persisting as a concern for state authorities.

Attorney General Matthew Platkin stated: “Through the release of this report, we are taking a comprehensive look at the pervasiveness of gambling across the state, and with it, we are able to better identify challenges for our most vulnerable populations and design programs and initiatives to assist them.”

The research, led by Dr. Lia Nower, J.D., Ph.D., indicates that sports betting saw a significant surge, with participation rates rising from 15% to slightly over 19%. Simultaneously, the study identified a shift in gambling patterns, with the percentage of individuals exclusively gambling online tripling from 5% to 15%. In contrast, those solely engaging in in-person gambling at casinos dropped from 76% to 49%.

Moreover, the report highlighted the increasing popularity of high-risk stock trading, with approximately 25% of participants involved, signifying a nearly seven-fold rise since the previous survey. This trend raised concerns among experts about the potential link between risky gambling behavior and financial trading activities.

New Jersey Takes Proactive Measures Against Problem Gambling

Dr. Lia Nower, from Rutgers University’s School of Social Work, Center for Gambling Studies, emphasized the significance of the report’s findings. She remarked: “This report provides evidence to guide prevention and education efforts for those at highest risk for gambling problems: Younger adults, members of ethnic and racial minority groups, and those who gamble on multiple activities and bet both online and in land-based venues.”

The report also highlighted correlations between gambling behavior and substance use, indicating that gamblers were more likely to use tobacco, alcohol, and illicit drugs, as well as report mental health problems.

In response to the findings, New Jersey has implemented various measures, including self-exclusion programs, advertising standards, and technological interventions to assist at-risk patrons. The state continues to evaluate these strategies in collaboration with responsible gaming organizations to curb the prevalence of problem gambling and promote safer gambling practices among its residents.

For example, in February, the DGE introduced a pioneering proactive approach to tackle problem and at-risk sports betting in the state, marking the first initiative of its kind in the US. The approach requires gambling operators to analyze player data to identify signs of at-risk or problem gambling.

The post New Jersey’s High-Risk Gambling Drops, but State Still Faces Challenges appeared first on Keno Wizard.

In December, the EC updated its rules regarding high-risk third countries. The nations included in the ignoble list face systemic anti-money laundering (AML) or countering the financing of terrorism (CFT) failings. The recent inclusion of Gibraltar deserves special mention, as the territory is one of the largest online gambling hubs. Tightening regulations may significantly hamper the day-to-day operations of operators stationed there, forcing them to search for alternatives.

An EC Listing Is Bad News for Everyone Involved

The EC is one of the founding members of the Financial Action Task Force (FATF). The international organization focuses on preserving the financial system’s integrity by combating money laundering, the financing of terrorism, and other such threats. As such, the Commission’s list of high-risk third countries carries significant negative implications for all nations unfortunate enough to be included.

A recent warning by the EU may significantly impact businesses involved with such countries. Regulators now face increased pressure to ensure due diligence and will likely crack down on all related parties. Such updated rules may significantly impact many gambling operators, especially those operating out of Gibraltar. The accompanying loss of face can also have severe long-term consequences.

Gibraltar-Licensed Operators Will Face Rising Difficulties

The FATF greylisted the territory in June 2021, followed by an EC listing as a high-risk third country. The implications of such measures for a thriving financial hub like Gibraltar are not pleasant, as all transactions in and out of the country will face increased scrutiny and potential delays. 

The gambling industry, in particular, will bear the brunt of the impact. As of May 2022, the territory hosts 45 licensed online gaming operators employing over 2000 people. The EU demanded enhanced due diligence measures from all businesses and individuals involved with listed nations. 

Such measures aim to combat money laundering and terrorist financing, maintaining the financial system’s integrity. Despite the EC’s attempts to cooperate with local governments and address the issues behind the listing, implementing an action plan can sometimes take years. Meanwhile, bureaucratic pressures can drive current licensees away and dissuade operators from considering a Gibraltar registration.

The Government Aims to Preserve Gibraltar’s Reputation

The EC listing is a significant black mark in Gibraltar’s ongoing efforts to prove its regime robust and effective. Andrew Lyman, the territory’s chief commissioner for gambling, denied any AML/CTF deficiencies, insisting that the local regulator was doing an adequate job. However, the EC did not share the sentiment, leading to this unfavorable situation.

A FATF greylisting can significantly hamper a nation’s international prospects, disincentivizing foreign investments. Despite ongoing uncertainty, Gibraltar’s economic attractiveness and favorable licensing conditions helped it secure several new high-profile licenses. However, the subsequent EC listing may significantly degrade the country’s reputation, meaning the government is hard-pressed to address its ongoing issues.

The post Gibraltar Faces Increasing Pressure as EU Cracks Down on “High-Risk Nations” appeared first on Keno Wizard.