In a significant move to bolster the integrity of sports betting, the General Directorate for the Regulation of Gambling in Spain has mandated that all licensed gaming operators involved in horseracing or sports betting must join the Global Betting Market Investigation Service (SIGMA). Effective from 28 June 2024, this new requirement is designed to prevent and combat fraud and manipulation within the sports betting industry.

Initiative to Safeguard Sports Integrity

The primary mission of SIGMA is to protect the sanctity of sports by eliminating fraudulent practices that undermine fair play and equity. This initiative has received backing from several key organizations, including the Higher Sports Council, the Royal Spanish Football Federation, the Professional Football League, the Royal Spanish Tennis Federation, and the Association of Spanish Footballers. Law enforcement agencies such as the National Police, the Civil Guard, and the Ertzaintza are actively participating in this effort.

According to the new directive, gaming operators must promptly report any irregular or suspicious betting activities to SIGMA. This encompasses any actions that may suggest fraudulent behavior. Furthermore, operators must supply any additional information necessary to investigate these alerts thoroughly. This resolution marks a proactive step by the General Directorate for the Regulation of Gambling to strengthen the fight against corruption in sports.

Enhanced Transparency and Security in Betting

The Directorate aims to foster a more transparent and secure betting environment by integrating licensed operators into SIGMA. This integration is expected to significantly enhance the ability to detect and address fraudulent activities, thereby promoting a fair and equitable sports betting landscape.

In related news, the Flutter Foundation, a non-profit organization supported by Flutter Entertainment, has recently expanded its operations to Spain. The Foundation’s mission is to promote inclusion and well-being in the lives of disadvantaged communities, further underscoring the industry’s commitment to social responsibility and ethical practices.

Source:

Spanish gambling operators join initiative to combat sports betting fraud, gamblinginsider.com, July 1, 2024.

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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.

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The Ministry of Social Rights, Consumer Affairs, and the 2030 Agenda has announced the final sanctions for online betting and gambling infringements during the second semester of 2023 in Spain. A total of 17 operators have been penalized for committing serious or very serious violations, with fines surpassing €81 million (81,150,000 euros).

The General Directorate for the Regulation of Gambling (DGOJ) issued these penalties, with 10 of the 17 resolutions pertaining to very serious infractions. These severe sanctions account for the bulk of the fines and have led to the disqualification of 9 operators for two years. The Organización Nacional de Discapacitados Españoles y Europeos (ONDEE) faces a four-year disqualification and the highest fine of €35 million.

Significant Penalties for Unauthorized Operations

ONDEE, along with several online gambling operators operating without a license in Spain, received substantial fines. The Dirección General de Ordenación del Juego identified these companies, including Rabadi, Uno Digital Media, Eight Stars, Mrsloty Games Tech, Entretenimiento Rojo, Onyxion Malta, Trw Corporate, Vdsoft&Script Development, and Uniquegame. Each of these operators was fined €5 million under the Ley de Regulación del Juego (LRJ). In total, the very serious infractions amounted to €80 million in penalties.

Licensed Operators Also Penalized

The DGOJ also detected serious infractions in seven other licensed operators in the online betting and gambling sector. These operators violated certain provisions of Law 13/2011 on gambling regulation. Among the penalized companies are Gamesys, 888, Esgaming, and Codere. These seven operators are subject to economic sanctions totaling €1,150,000.

Once the sanctions are confirmed and notified to the concerned parties, both the serious and very serious infractions will be published on the DGOJ website. Since July 2021, the Ministry of Social Rights, Consumer Affairs, and the 2030 Agenda has published 139 final sanctioning resolutions, with total fines exceeding €333 million.

Source: “17 gambling operators sanctioned for serious or very serious infractions”. European Consumer Centre Spain. May 9, 2024.

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Ukraine is on the offensive once again with the Ukrainian Prosecutor’s General Office launching a new investigation into online gambling platforms that have been operating illegally and are tied to Russia.

At the onset of the 2022 war, which Russia declared on its neighbor, Ukraine sought to stem the tide of cash outflow that could be fueling the aggressor’s warm machine.

Gambling sites with ties to the Russian Federation were an immediate target of Ukrainian efforts to root out illegal gambling in the country, and the latest identified but unnamed websites are among those.

Gambling Is Important for Ukraine’s National Security

Parimatch, a prominent platform, was mistakenly caught in the crossfire. Luckily, Parimatch was removed from the Presidential list of banned gambling companies later on. The new allegations levelled against Russian-based individuals and illegal platforms though will stay.

Ukraine has not shied away from levelling accusations against individual operators, and most recently in February, the country went after Cosmolot, accusing the platform of tax evasion.

The Office also outlined some of the steps that have already been taken to combat illegal gambling in the country with more than 2,500 illegal gambling sites blocked since last year, as reported previously. Right now, 450 criminal offenses are related to illegal gambling as well.

Gambling Encroaching on Military Capabilities

The country is also going after individuals whom it suspects of wrongdoing related to illegal gambling. Meanwhile, the military has had its fair share of problems with gambling and gambling-related harm.

Apart from undermining the country’s war-waging capabilities, gambling within the army has also taken a toll on the mental health of soldiers.

The Verkhovna Rada has now issued a ban on gambling in the army, with lawmakers worried about the problem as well and how it might reflect on the battlefield. Efforts to curb the spreading of illegal and irresponsible gambling have been well underway.

In the meantime, the country has also benefited from the regulated gambling sector, with online gambling outpacing expectations and generating a steady stream of tax revenue for the state coffers.

All of this is happening at a time of intensified interest in the gambling market in Ukraine. So much so that the country approved 150 new licenses in early April. Yet, there have been some headwinds as well, including the proposed dissolution of the state regulator, KRAIL, which has been deemed unfit to carry out its duties.

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The New Jersey Division of Gaming Enforcement has published data about the local casinos’ performance in Q4 2023, reporting a decrease in gross operating profit despite an increase in net revenue.

The report highlights Q4 net revenue of $781.9 million, reflecting a 1.3% increase year-on-year. As mentioned, gross operating profit declined by 3.6% to $148.5 million.

Additionally, the Division of Gaming Enforcement published data about its licensees’ full-year performance. According to the authority, net revenue reached $3.33 billion for the calendar year, representing an increase of 0.8% year-on-year. In the meantime, licensed casino companies in New Jersey reported FY 2023 gross operating profit of $780.7 million, a 4.1% decrease year-on-year.

The division also published hotel occupancy figures for the period, saying that casino hotels in the state reported a Q4 occupancy rate of 66.5%. This figure marks a slight 0.7% increase compared to the prior year period. The occupancy rate for the twelve months ended December 2023, on the other hand, reached 73%, which demonstrates a decline of 0.4%.

Most Hotels Experienced a Decline

The most profitable casino resort in 2023 was the Borgata with Q4 net revenue of $190.4 million and gross operating profit of $47.9 million. The property’s FY 2023 results included net revenue of $785.6 million and gross operating profit of $226.1 million.

Next up was Hard Rock with Q4 net revenue of $140.3 million and gross operating profit of $28.5 million. Its FY net revenue stood at $572.7 million, resulting in a gross operating profit of $125.5 million

Rounding up the top three, Ocean Resort posted Q4 net revenue of $119.8 million and gross operating profit of $26.6 million. The venue was one of the only three licensees to report an increase in gross profit for 2023, with net revenue of $491.8 million (+16.3%) and gross operating profit of $117.2 million (+21.8%).

Bally’s AC was notably the biggest winner in 2023 as it was able to greatly bolster its profitability from a gross operating loss of $1.8 million in 2022 to a profit of $11.1 million in FY 2023. Resorts Casino, on the other hand, saw its gross operating profit plummet from $21 million in 2022 to $9.5 million in 2023.

Here’s how New Jersey’s other licensees fared in terms of FY 2023 gross operating profit:

• Caesars: $51.7 million
• Golden Nugget: $29.8 million
• Harrah’s: $80.6 million
• Tropicana: $93 million
• CIENJ: $23.6 million
• Resorts Digital: $12.2 million

In other news, Atlantic City’s casino workers continue to push for a ban on smoking in the local casinos.

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Seven key operators of online casinos and sports betting websites in the United States have announced their alliance with the purpose of creating the Responsible Online Gaming Association.

The aim of the respective association is to promote responsible gaming in the United States and to promote best practices for the iGaming industry in the country and not only.

The association was formed by BetMGM, Bet365, DraftKings, Fanatics Betting & Gaming, FanDuel, Hard Rock Digital and Penn Entertainment, operators that are licensed to conduct their business in several American states.

These seven companies are dominating the market in the United States, their combined market share reaching 85 percent of the American online sports betting and iGaming market. The seven companies pledged a sum in excess of 20 million dollars for the Responsible Online Gaming Association in order to finance its activity for the first year.

Dr Jennifer Shatley, a professional with 25 years of experience within the industry, was appointed Executive Director of the Responsible Online Gaming Association. She is also the President of the Nevada Council on Problem Gambling and also a member of the National Council on Problem Gambling.

Five Main Objectives

The Responsible Online Gaming Association has set five key objectives for its activity. The first one is to promote research regarding responsible gaming, including funding independent research on the impact and effectiveness of current responsible gaming tools.

Moreover, the Responsible Online Gaming Association will also promote best practices for responsible gaming, encouraging companies in the industry to employ these principles in their activities.

Another goal of the association is to raise awareness about the problems generated by irresponsible gaming and encourage appropriate advertising for gambling services and brands.

The Responsible Online Gaming Association has also announced that it will work to create an independent data clearinghouse, a tool for the member companies to share information between them in order to protect their customers.

Last but not least, the Responsible Online Gaming Association will try to establish an independent certification programme. This will have the task of evaluating the responsible gaming efforts made by the member companies and provide objective feedback regarding their responsible gaming policies.

Source: “Responsible Online Gaming Association“. iGaming Business. March 27, 2024.

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Three daily fantasy sports (DFS) operators in Florida recently received cease-and-desist letters, a newly released report suggests. The letters, Saturday Down South confirmed, were sent by the Florida Gaming Control Commission (FGCC) and received by PrizePicks, Betr and Underdog Fantasy, three operators that currently offer such activities to customers in the state.

Florida’s gambling regulator urged the three operators to discontinue their operations within 30 days of receiving the letter. According to the publication, the cease-and-desist letters were sent to the three operators on January 31, 2024. This otherwise means that the trio will have to discontinue their offering effective from March 1, 2024, to comply with the FGCC’s request.

According to the Commission, PrizePicks, Beter and Underdog Fantasy must stop “offering or accepting illegal bets or wagers from (Florida) residents,” and at the same time discontinue “any illegal lotteries.” The trio was notified by the Commission about the potential actions it may take against them if they fail to comply with the request.

The FGCC said that if the operators do not halt their offering within the aforementioned timeframe, they will be referred to the state’s Prosecution or a relevant state attorney. “If this cessation is completed within that timeframe, the Commission will deem the company and all its officials, directors, and employees have complied with the demands of the cease-and-desist order, and the Commission will not take further action, including referral to the Office of Statewide Prosecution or to any State Attorney,” explains the letter sent to PrizePicks, Betr and Underdog Fantasy.

The State Anticipates Changes to the DFS Sector

While the three operators received a letter from the Commission, other two who currently operate in Florida did not receive such correspondence. Reportedly, DraftKings and FanDuel, two leading betting and gaming companies that currently offer traditional DFS games did not receive a cease-and-desist letter from the FGCC.

The announcement comes at a time when a DFS bill is gaining traction in Florida. Two proposals are making their way into the state’s house, PCB COM 24-01 and PCB COM 24-02, with the first one calling for the establishment of DFS regulation. The latter proposes the implementation of license fees, applicable to DFS operators.

Currently, Hard Rock Bet is the only authorized sports betting operator in the state. After a prolonged legal battle, the sportsbook relaunched its services back in December.

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Last September, several regulated operators in Sweden complained that a financial services company that offers next-gen open banking payments and payouts, Finshark, had facilitated a series of money transfers between consumers and unlicensed operators in the country.

A few of the worried operators carrying a license went further and asked the country’s expert authority in gambling and lottery, the Swedish Gambling Authority (SGA), to perform a careful assessment in light of additional similarities to a directive from roughly four months ago. 

The said directive convinced the provider of instant bank payment solutions that seamlessly integrate into existing systems, Zimpler, to stop providing a similar service to operators.

Things Have Gotten Worse 

As it appears, the gambling industry in Sweden does not have any good news to announce regarding the evolution of things. 

On the contrary, problems are not only persisting, but they have gotten worse in the context of an extra pay-and-play feature being allegedly added to the list. 

The primary allegation concerns a series of casino websites that are under the ownership of Infiniza Ltd, which is a Malta-based company that runs under a license issued by the prestigious Malta Gaming Authority in 2018. 

According to screenshots courtesy of NEXT.io, Swedish games are able to sign in using Swedish mobile phone numbers and complete deposits via the national identity verification system BankID with a number of banks in the country. 

The list includes Handelsbanken, Nordea, and Swedbank. The deposit’s recipient is instant payment provider Krofort which does not showcase any information regarding a license. 

Allegedly, Infiniza is the sole gaming operator in Sweden with online casino brands connected with both Krofort and Finshark. This would give it a competitive edge over licensed operators.

In 2023, regulated providers emphasized that operators in the grey market have the advantage of being able to use these types of fast payment services which are expected from domestic players looking for fast cashouts. 

The same operators raised concerns regarding the reasons why the SGA has failed to take any course of action as of yet.

The SGA Can Block Payments 

At the start of March 2023, the regulator announced it would clamp down on business-to-business suppliers offering their products to unregulated operators targeting Swedish players while failing to comply with the regulations. 

In spite of the fact that payment provision was not part of the newly installed regime, the SGA was given the right to block payments. 

In July, the authority instructed Zimpler to stop offering payment solutions via BankID to operators functioning without a license. 

Zimpler followed suit and an end to its ties with gaming companies licensed in the European Union that did not carry a Swedish license while deciding to also appeal the decision on the grounds that it affected it while raising legal problems that required clarification for the well-being of the industry.

Earlier this week, the SGA banned Smein Hosting and True Polygon Entertainment at the end of an investigation that showed they were targeting domestic players in Sweden without authorization. 

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Spelinspektionen, the Swedish Gaming Authority (SGA), has taken action against two companies providing games in the country without proper licensing. Such actions represent a severe violation of Sweden’s gambling regulation and led to immediate action. The authority was adamant that the two operators threatened the safety of Swedish players, reaffirming its commitment to a sustainable and people-focused market.

The Offending Websites Operated without Permission

Upon investigating the website under the CSGOBIG (csgobig.com) brand, the SGA revealed that the platform was conducting gambling activities. The company and its affiliates had marketing content in Swedish. Furthermore, the investigation determined that the website lacked adequate measures to prevent Swedish consumers from registering and creating accounts.

The offending website is owned and operated by True Polygon Entertainment Limited, registered in Cyprus. No information was available regarding the current licensing status of True Polygon Entertainment Limited in any jurisdiction. While the company was allowed to comment, the Swedish Gambling Authority has not yet received a reply.

The SGA similarly identified Curaçao-based Smein Hosting NV as the company behind gamdom.eu and gamdom.com. The SGA found that Smein Hosting was providing its services in Sweden, actively marketing to Swedish customers through affiliate partners. Gamdom was one of the operators included in Twitch’s black-list in August, as the streaming platform took a stance against unlicensed operators.

Black Market Operators Remain a Persistent Threat

The SGA emphasized that the Gambling Act applies to games available in Sweden, with specific exceptions. The legislation is rooted in the principle that anyone operating in the Swedish gaming market must have a license and prohibits providing games without the required permission. The SGA noted that the two companies’ disregard for regulations necessitated a swift response.

The Swedish Gaming Authority considers that consumer protection and guaranteeing game safety necessitate immediate compliance with the decision.

SGA statement

The Swedish gambling sector has historically faced significant challenges with black market operators. Although the country can take limited measures to stop such services on its territory, the offending companies often find workarounds to these restrictions. A planned gambling tax raise caused significant industry concerns as regulated operators warned that such measures could make them even less competitive with unregulated entities.

Sweden’s government has repeatedly reiterated its focus on fostering a safe and sustainable market. Despite the SGA’s ongoing efforts, the country faces several worrying trends, as a recent survey revealed that players were unaware of the differences between regulated and black market operators, undermining the regulator’s efforts. Rising problem gambling rates mean that Sweden faces an urgent need to reevaluate its regulatory approach.

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The Michigan Gaming Control Board (MGCB) has issued cease-and-desist letters to three entities engaged in unlicensed online gaming operations. 

MGCB Uncovers Illegal Online Gaming, Ensures Rapid Regulatory Response

Following thorough investigations, the MGCB discovered that these companies were offering online gaming services to Michigan residents without the required licenses. The regulatory action comes as part of the board’s ongoing efforts to enforce gaming laws and ensure the protection of Michigan citizens.

PredictionStrike Inc., identified as one of the US-based companies, was found to have breached regulations by providing internet gaming and sports betting services in Michigan without obtaining the necessary licenses. 

Meanwhile, Sweepstakes Limited was accused of promoting an unlicensed online lottery and raffle through its Stake.us platform, accessible to Michigan customers. 

VGW LuckyLand, Inc., an overseas entity, faced allegations of conducting illegal gambling by offering an internet game that involved monetary wagers for the chance to win valuable prizes.

MGCB Executive Director Henry Williams emphasized the importance of stringent gambling regulations, stating: “Gambling regulations are in place for a reason, and illegal gambling operations are not welcome in Michigan.” 

Williams further underscored the potential risks to citizens posed by unregulated sites, leaving them vulnerable without proper recourse and diverting funds away from taxed, legal establishments that contribute to community welfare.

MGCB Enforces Legal Action Against Violators of Gaming Laws

The MGCB’s actions are rooted in the violation of key Michigan gaming laws, including the Lawful Internet Gaming Act and the Lawful Sports Betting Act, which mandate that online gaming and sports betting can only be offered by licensed operators. 

Additionally, the Michigan Gaming Control and Revenue Act criminalizes gambling operations conducted without the MGCB’s approval, with penalties of imprisonment or fines.

In response to the cease-and-desist letters, the implicated companies have taken measures to restrict access to their platforms for Michigan residents. 

However, the MGCB encourages citizens with information on illegal gambling websites to report tips, fostering community engagement in maintaining regulatory integrity.

Additionally, various resources, including self-exclusion programs and responsible gaming databases, are available on the MGCB website and DontRegretTheBet.org to promote responsible gambling habits.

In other news, last week Michigan Gov. Gretchen Whitmer reappointed Joni M. Thrower Davis and Andrew T. Palms to MGCB, extending their terms until December 31, 2027. With Palms serving his 12th year and Davis entering her second four-year term, MGCB Executive Director Henry Williams commended their dedication and expertise, expressing confidence in the stability and effective decision-making of the board under their continued leadership.

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