High-profile Bulgarian media companies have raised their voices in opposition to a proposed ban on gambling advertising, expressing concerns over its potential impact on media revenue streams and journalistic freedom. They criticized the government for lacking foresight, alleging that some parties would use the situation to influence the media space before the upcoming elections.

The Changes Could Do More Harm than Good

The new bill calls for a prohibition on gambling advertisements across various media platforms, including television, radio, newspapers, and online sites. While outdoor advertising in specific locations would still be permitted, the proposed ban has drawn criticism from media industry stakeholders who believe the bill does not aim to protect consumers but to suppress freedom of speech.

Former prime minister Nikolai Denkov highlighted the threat the ban poses to media outlets, emphasizing the significant revenue loss and increased dependency on other funding sources it could entail. He also drew attention to rising concerns about the potential suppression of media freedom, with industry experts warning against the adverse effects of legislative interference.

Let’s hope that (the proposal) is an oversight. The worse option is if somebody in a position of power – in this case, legislative power – is trying to strike a targeted blow against media freedom.

Nikolai Denkov, former PM

Leading journalists noted that social media platforms, banners, and targeted advertisements would remain unaffected, expressing concerns over the rising prevalence of underage gambling. They highlighted that vulnerable groups like children did not engage with traditional media, and the bill would only increase the prevalence of gambling ads in the digital space, exacerbating existing issues.

Leading media conglomerate Nova Broadcasting Group expressed apprehension over the ban’s impact on sports broadcasts, particularly those related to high-profile events like the European football championship. Similarly, Net Info group, which operates numerous popular websites in Bulgaria, underscored the potential hardships it would face without gambling-related revenues.

The Association of Bulgarian Broadcasters (ABRO) shared this opinion, cautioning against the ban’s implications for media sustainability, citing the importance of advertising revenue in supporting quality journalism. Meanwhile, the Technology Industry Alliance raised concerns about the ban’s feasibility in enforcing restrictions on internet platforms, citing potential conflicts with EU law.

As demonstrated in other European markets, advertising restrictions lead to an increase in unlicensed operators, consequently impairing the state’s ability to collect taxes from gambling activities and to provide adequate consumer protections.

Stilian Shishkov, Sportal Media Group CEO

As the debate over the proposed ban continues, affected parties are urging policymakers to consider the bill’s broader implications and either consider a substantial overhaul or cancel it. The outcome of the upcoming vote on the ban will likely shape the future landscape of gambling advertising regulation in Bulgaria, necessitating a careful and comprehensive approach.

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John McKeon, a senator in the State of New Jersey, has introduced a new bill which proposes a significant increase in the tax rate for online gambling and sports betting, bringing the figure to 30 percent.

The current tax rate for online gambling in New Jersey is 15 percent of gross gaming revenue, while the tax rate for sports betting is 13 percent of gross gaming revenue. The new bill, which bears the name of “Senate Bill 3064”, was filed two weeks ago and then formally introduced on 8 April. After that the bill was referred to the Senate State Government, Wagering, Tourism & Historic Preservation Committee.

The new bill basically amends two sections of the current legislation, Section 7 and Section 17, which stipulate the tax amount for sports wagering and online gambling, respectively. The proposal would take effect on the next 1 January that comes after the day of approval.

Still Lower Than Other States

The 30 percent tax rate would represent a drastic increase from the current rate in New Jersey, but it would still be lower than the tax rates established in other American states for online gambling and sports wagering.

New York for instance has a tax rate of 51 percent for sports betting, the highest in any competitive market in the United States. Pennsylvania comes in second place with a tax rate of 36 percent of gross gaming revenue.

States such as Delaware, New Hampshire and Rhode Island have tax rates above 50 percent of gross gaming revenue, but these states still run monopolies through state lotteries and don’t have competitive markets.

The current tax rate for online gambling in New Jersey is among the lowest in the country, with the state having 30 iGaming websites currently licensed and active on its competitive market. Connecticut has an 18 percent tax rate for online casinos, which is set to rise to 20 percent after five years, Michigan has a tax rate of 20 percent, while West Virginia takes 15 percent of gross gaming revenue from its online casinos.

The highest tax rate in the business remains the 54 percent imposed in Pennsylvania for slots, but that state seems to favor table games which have a tax rate of just 16 percent.

Ohio is an example of an American state that has recently increased its tax rate for online gambling and sports betting. In July 2023 Mike DeWine, the governor of Ohio, increased the tax rate from 10 percent to 20 percent.

Source: “New Jersey senator formally introduces bill to hike online tax to 30%“. iGaming Business. April 11, 2024.

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For years, a battle has been raging over the legality of skill games in Pennsylvania. While supporters of such form of entertainment said that it provides a different experience than gambling and helps local businesses, opponents warned about the impact of skill games on the brick-and-mortar casino sector. Currently, skill games operate within a grey area across Pennsylvania, but that may soon change with the state’s newly proposed budget.

Pennsylvania Gov. Josh Shapiro recently released his proposed budget for FY 2024/2025, which included estimates for proceeds from skill games tax. Per the proposed budget, the tax rate for such games would be 42% on gross gaming revenue. The Governor’s budget reveals that the regulation of skill games would be in the hands of the state’s gambling regulator, the Pennsylvania Gaming Control Board (PGCB).

The collected tax on gross gaming revenue from such machines would be deposited into an administrative account. Subsequently, the collected taxes from skill games would be relocated to the state’s General Fund, under the proposed budget.

Assuming that the required legislation and rules would be in place with the budget’s effective date, July 1, 2024, an estimated $150.4 million in proceeds from skill games taxes are expected to be generated for FY 2024/2025. Gov. Shapiro’s proposed budget estimated the proceeds from skill games taxes to increase to $313.4 million for FY 2025/2026 and remain in a similar ballpark through FY 2028/2029.

“This budget proposes a tax to be levied on the daily gross gaming revenue from electronic gaming machines that involve an element of skill and are regulated by the Pennsylvania Gaming Control Board. Estimates assume an effective date of July 1, 2024. This budget deposits tax revenues into a restricted account for administration, transferring the balance to the General Fund,“

reads Gov. Josh Shapiro’s proposed FY 2024/2025 budget

A Major Milestone for Skill Games

Undoubtedly, including tax revenue from skill games within the proposed budget marks an important milestone after years of dispute over the legality of such games. Yet, it is important to mention that the proposed budget may undergo changes. Still, the Governor’s intention to include skill games in the budget marks a clear signal for lawmakers about the future of skill games in Pennsylvania.

The recent development follows a court decision from late last year. At the time, skill games were designated as not illegal, a move that paved the way for the regulation of such games. The judgment came from the Commonwealth Court, approving a lower court’s decision that recognized winnings from skill games as legal.

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A brewing clash between proponents and opponents of a proposed casino at the iconic Fontainebleau Resort in Miami Beach is expected to take center stage in Tallahassee next week, as state lawmakers gear up for a heated debate.

Opposition Mounts Against Fontainebleau Casino Plans in South Florida

A coalition of influential South Florida business figures, including billionaire auto magnate Norman Braman and developer Armando Codina, is spearheading a vigorous lobbying effort aimed at derailing legislation that would pave the way for a Las Vegas-style casino at the Fontainebleau, reported the Miami Herald. The group, joined by Miami Beach city officials and residents, is vehemently opposed to the expansion of casino gambling in the area.

Braman, echoing the sentiments of many in the community, emphasized in an interview that they did not want casino gambling there, stating it was just that simple. 

Miami Beach Mayor Steven Meiner underscored the unity among local leaders, expressing his belief that they all felt very strongly about the matter and were united on it.

The contentious proposal, embodied in Senate Bill 1054 and House Bill 1127, is slated for its inaugural hearing before state lawmakers on February 5. While the Senate Regulated Industries Committee has confirmed its agenda, House Republican leaders remain tight-lipped about the bill’s fate.

The debate has drawn high-profile figures into the fray, including billionaire hedge funder Ken Griffin, who penned a scathing op-ed condemning the proposed legislation. Griffin warned of the adverse effects of casino expansion, citing research linking it to gambling addiction, increased crime rates, and declining property values.

Meanwhile, the proposal’s sponsor, state Rep. Alex Rizo, has faced scrutiny for his ties to Jeff Soffer, the billionaire owner of the Fontainebleau. Soffer, who has long sought to establish a casino at the resort, has reportedly funneled significant sums into political contributions, raising concerns about undue influence.

Opponents of the casino plan have found a powerful ally in Griffin, whose vocal opposition adds weight to their cause. Griffin’s staunch stance against the legislation reflects a broader sentiment among Miami-Dade residents and lawmakers, who view the proposed casino as a threat to their community’s well-being.

Sen. Shevrin Jones, representing West Park, emphasized the need to respect the will of the people and urged legislators to reject the casino proposal. Similarly, Miami Republicans, including Sen. Bryan Avila and Ileana Garcia, have voiced reservations about the initiative, signaling potential roadblocks ahead.

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Amidst growing concerns over Comstock Companies‘ push to establish a casino on Metro’s Silver Line outside the Capital Beltway in Fairfax County, residents of Reston are urging state lawmakers to reject any legislation supporting the controversial project.

Activists Challenge Casino Plans, Cite Deviation from Reston’s Planning Principles

On January 6, activists from NoRestonCasino.org, a group opposing the casino plans, placed signs outside the Fairfax County Government Center, calling attention to what they believe is a deviation from Reston’s planning principles, reported local media outlet Patch. 

The opposition argues that the Reston Comprehensive Plan, as well as the stance of Fairfax County Supervisor Walter Alcorn, does not align with the proposed casino development.

Lynne Mulston, president of the Reston Citizens Association, emphasized that, under current Virginia law, no legislation permits such development in Reston. 

Mulston stated that the recent endeavors of a major developer to garner favor with Virginia State Senators Surovell and Marsden, along with other elected representatives, to influence legislative action, suggest a disregard for the social, economic, infrastructure, and other impacts on the Reston community.

During the Public Hearing for Fairfax Delegation to the General Assembly, Jennifer Jushchuk, representing Save Our Sunrise, voiced concerns about the proximity of the proposed casino to residential areas, emphasizing the family-oriented nature of the Sunrise Valley Neighborhood in Reston. 

She mentioned that there is a single developer, Comstock, aiming to establish a casino and that they have significant investments in the properties surrounding the Wiehle Reston-East metro station, rather than in Tysons Corner.

Activists Highlight Environmental and Socio-Economic Concerns

Activists argue that the proposed casino contradicts the recently approved Reston Master Plan, which aimed to promote growth in key market sectors such as technology and higher education. 

Mac Cummins, the CEO of RA, expressed that a casino would go against and be incompatible with the goals outlined in the recently adopted plan, putting at risk the extensive community planning efforts made in Reston over the years.

Health concerns were also raised during the public hearing, with Michelle Widmann Kimmel of Healthy Reston highlighting potential environmental toxicity and socio-economic problems associated with casino developments. Kimmel urged legislators to consider the lack of empirical research supporting claims of economic benefits from casinos.

State Senator Dave Marsden and Delegate Wren Williams introduced bills in 2023, which were later withdrawn, and now plan to reintroduce an expanded referendum bill in the upcoming legislative session.

Residents hope that their collective voice echoed through various community groups and elected officials, will deter the state legislature from endorsing a casino that they deem unwanted and unnecessary for the vibrant community of Reston.

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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.

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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.

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Casinos have faced a prolonged battle to keep “younger” customers coming back for their services, and it can become an even bigger problem if some of the new laws that are being proposed come into play. 

According to many industry experts, new regulations in the U.K. gambling laws can require platforms hosting slot games to limit their maximum bet spin to only £2 for players under 25.

The Regulations Being Proposed

A white paper was published in April 2023, highlighting the changes the British government plans to make in the gambling regulations for online casinos. This white paper had been in the making for quite some time, and after several delays and postponements, it was finally published on the 27th of April, 2023. 

Ministers’ primary agenda in introducing these new regulations was to make gambling a safer space for the masses, as there had been several high-profile cases where people suffered enormous losses because of their gambling habits. Two main approaches are being taken to achieve this.

Limits for Under-25s

The most significant talking point from this incident was the stake limit for online slots. People under 25 can only put forward £2, and for people over 25, the limit is £15. This has been a topic for heated debate for quite some time as many casino owners are in favour of this idea and already implement it in some capacity. 

Still, some people do not support this motion as they believe people should not be restricted to such a degree.

Integration of AI and Data for a Better Experience

Another topic the government has stressed is how casino owners should do their best to incorporate AI and more modern technologies in their setup. Casino owners all across the U.K. have been very welcoming towards this suggestion. 

This helps to implement a more dynamic approach, rather than just setting the stakes high for some customers and too low for others. To avoid unmitigated consequences, this proposal can go a long way in changing the fabric of the gambling industry in the U.K.

Some other proposals

More proposals included in the white paper are a mandatory background check on industry revenues, strong measures to slow down online gambling, and affordability checks, and the government also plans to run some campaigns to promote safer gambling.

The Positive Feedback

Many casino owners have looked at these proposals in a very holistic way. The fact that these tightened regulations can help reduce unhealthy gambling behaviour is a big step, making gambling much more inclusive for people. It also helps that the regulations minimise online gambling and encourage people to visit casinos more often. 

The dynamic, data-driven approach can benefit both casinos and players alike.

“We welcome the measures outlined in the White Paper and support its ambition to update legislation to develop a dynamic regulatory system for gambling fit for the digital age,” said Neil Banbury of the popular Kindred Group in an interview with Sky News.

“To be a long-term sustainable business, it is not in our interest to have any of our customers experiencing problems which is why at Kindred, we have our Journey Towards Zero ambition to eventually generate 0% of our revenue from people who exhibit problem behaviours”

The Backlash 

These regulations have also created a fair amount of controversy. The general public is not completely convinced about an affordability check. People are worried that they will have to compromise their privacy because of these affordability checks, citing the restriction on their spending as a major issue. 

Casino owners are worried that players will not provide appropriate proof of their spending power in a ploy to con the system and gamble way over their ceiling. The customers who wish to do that will then start looking for other ways of gambling, leading them to an even more unsafe and uncontrollable market.

Conclusion

Despite the abovementioned concerns, this set of revised gambling regulations is a huge step in a positive direction. An affordability check will massively help casinos keep a clean customer base and keep people away from gambling issues as possible. 

Gambling companies will also benefit from integrating AI and data-led approaches to keep up with the changing times. These regulations will help young people avoid gambling addictions and save countless communities from experiencing harm. 

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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.

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Daily Mail and Daily Express reported that the UK Government is planning to introduce a new levy on gambling companies to fund treatment programs for those addicted to gambling, with the proceeds being directed toward the National Health Service (NHS). 

Proposed New Levy to Prevent Firms from Exploiting Loopholes in Gambling Contributions

The proposed new levy is designed to create a standardized payment to prevent firms from exploiting loopholes to avoid making sufficient contributions. The Gambling Commission will be responsible for launching a consultation to decide how the levy should be tailored to different firms’ profits and revenues. This move comes following a record GBP19.2 million ($23.6 million) fine that was recently imposed on William Hill by the industry watchdog for failing to prevent customers from accruing unpayable debts. 

The NHS will not accept voluntary donations from gambling firms because it considers them a conflict of interest. The UK Government is expected to publish a gambling white paper soon, the most comprehensive review of betting laws in over 15 years, with the aim of ensuring that current regulations are fit for the digital age. 

The government wants to allow people the freedom to gamble responsibly while preventing harmful and addictive gambling, and it believes that a new levy will be a vital tool in achieving this aim. The levy will create long-term, reliable funding for treatment services, as many researchers do not accept voluntary funding from the gambling industry due to concerns over the independence of the research. 

Betting and Gaming Council Defends Gambling Industry Amidst Proposed Levy

The proposed levy could face opposition from some quarters, however. Reports suggest that Rishi Sunak, the current UK Prime Minister and former Chancellor, was previously against the idea of a levy. The suggestion is that he saw it as a new “nanny state” tax on business, and was concerned that it would harm the racing industry, given the existence of the Catterick racecourse in his constituency. There are also questions about whether the National Lottery will have to make similar contributions. 

The Betting and Gaming Council, which represents gambling firms, has said that the majority of people who gamble do so safely and responsibly and that the rate of problem gambling is very low, at just 0.2% of adults. The industry has committed to investing GBP100 million ($123 million) to tackle gambling-related harm, as well as making donations of GBP110 million ($135.4 million).

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