In a landmark decision following the Switzerland casino industry’s delegate meeting on May 22, the Swiss Federal Council has unveiled new regulations for casino licenses, set to commence in January 2025. These licenses will be granted for 20 years, introducing new casinos and reinforcing industry standards.

New Casinos in Prilly and Winterthur

As part of the new licensing framework, new casinos have been approved in Prilly and Winterthur. Notably, the Winterthur casino will replace the current venue in Schaffhausen, as no application was submitted for the latter location. This shift underscores the evolving landscape of Switzerland’s gambling industry.

Gerhard Pfister, President of the Swiss Casino Association, hailed the new licenses as a historic milestone for Switzerland’s gambling sector. “The granting of the new concessions is a milestone,” Pfister stated. “The federal government has recognised that today’s casinos ensure safe and responsible operations and generate great economic benefits in their region.”

Enhanced Industry Collaboration

The Swiss Casino Group venues in Zurich, Schaffhausen, St. Gallen, and Pfäffikon have unanimously joined the Swiss Casino Association. Winterthur will also submit a membership application once it opens. This development means that all 21 land-based and 10 online casinos in Switzerland are now members of the Swiss Casino Association.

Pfister emphasized the benefits of this unified collaboration, stating, “I’m pleased that Swiss Casinos has joined the association and with it the entire casino industry with one voice can speak.” Marc Baumann, a board member of Swiss Casinos, added, “The online business is changing the Swiss casino industry sustainably. We are happy to work together with the Swiss Casino Association to help shape the future.”

Revenue Trends: Land-Based vs. Online Casinos

In 2023, Switzerland’s land-based casinos experienced a slight decline in revenue, generating CHF 623 million in gross gaming revenue (GGR), down 1.1% from the previous year. Conversely, online casinos saw significant growth, accumulating CHF 286 million in GGR, a 14.3% year-on-year increase. This trend reflects a broader shift towards digital offerings in the gambling industry.

Casinos also saw a 3% increase in tax contributions, with the state receiving CHF 409.3 million in 2023. Over the past 20 years, Swiss casinos have contributed over CHF 8 billion in taxes, primarily benefiting the country’s AHV pension system.

Record Profits for Loterie Romande

In related news, the Loterie Romande public lottery reported a net profit increase to CHF 5.1 million for 2023. The lottery will distribute a record CHF 243.7 million to good causes, despite a 3.4% drop in gross gaming revenue to CHF 420.7 million.

Jean-René Fournier, Chairman of Loterie Romande, attributed the profit rise to stringent management of operating costs, enhanced digital offerings, and the introduction of the EuroDreams draw game. “This result can be attributed in particular to the rigorous management of operating costs, the strengthening of our digital offering, and – with the launch of the European draw game EuroDreams in October 2023 – the diversity of our product range,” Fournier explained.

The Swiss Federal Council’s new casino licensing regulations mark a significant evolution in the country’s gambling industry. With new casinos in Prilly and Winterthur and a reinforced industry collaboration through the Swiss Casino Association, the future of Swiss gambling looks robust and promising. As the sector shifts increasingly towards online gaming, these new regulations ensure a balanced approach to growth and responsible operations.

Source: “Switzerland federal council grants all casinos new licences from 2025”. May 24, 2024.

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The Ontario Superior Court of Justice has rendered its judgment on the contentious issue of online gaming regulations in the province. The court dismissed an application by the Mohawk Council of Kahnawà:ke (MCK) challenging the Ontario government’s decision to permit online gaming within its borders. This ruling solidifies the legitimacy of Ontario’s iGaming Ontario (iGO) framework, marking a significant milestone in the province’s regulatory landscape.

Ontario’s Approach to Online Gaming Regulation

iGaming Ontario collaborates with the Alcohol and Gaming Commission of Ontario (AGCO) and the provincial government to oversee the online gaming industry. The framework aims to regulate the sector, safeguard consumer interests, particularly in responsible gambling practices, and diversify digital gaming options for Ontarians. Gaming operators are required to register with the AGCO and enter into operating agreements with iGO before launching their products. iGaming Ontario assumes responsibility for managing and conducting the industry within the province, as outlined by its mandate.

Legal Dispute and Court’s Decision

The Mohawk Council of Kahnawà:ke (MCK) has been a vocal opponent of the legislative changes, particularly C-218, which decriminalized new forms of sports gambling in Canada in June 2021. MCK argued that Ontario’s shift in gaming management infringed upon existing laws and constitutional principles. However, the Ontario Superior Court ruled that iGaming Ontario’s model aligns with the Criminal Code, affirming the legality of the province’s approach.

Martha Otton, Executive Director of iGaming Ontario, expressed confidence in their regulatory framework, emphasizing the court’s validation of their model. She highlighted the framework’s focus on player protection, data security, and economic contributions to Ontario.

Impact on Kahnawàke and Online Gaming Industry

For 25 years, the Mohawk Council of Kahnawà:ke has played a pivotal role in the online gaming industry, licensing operators on behalf of the Mohawks of Kahnawake. The council raised concerns that Ontario’s regulatory changes disregard their expertise and jeopardize revenue streams vital to the Kahnawake community. Despite their assertions, the court determined that iGaming Ontario maintains significant control over operators, cementing its position as the guiding force behind the province’s online gaming landscape.

The Ontario Superior Court’s ruling marks a decisive moment in the ongoing debate over online gaming regulations. With the legality of Ontario’s framework affirmed, the province can continue to enforce its regulatory measures, ensuring a secure and responsible gaming environment for Ontarians.

Source: “Court Decision Upholds iGaming Ontario’s Model”. igamingontario.ca. May 13, 2024.

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Spanish gambling law is rapidly changing, and a lot of efforts have been made in order for the state to find a solution that works for everyone. The most recent step towards gambling ad regulations was made when the Supreme Court partially approved the appeal against Royal Decree 958/2020, placed by the Spanish Digital Gaming Association (Jdigital).

Some of the bans previously incorporated into the law, including bans on celebrity ads, were discharged.

Changes in regulations

Since Royal Decree 958/2020 was approved in November 2020, the Spanish operators worked on preventing minors from being exposed to ads through various prohibitions, including sponsorship deals.

However, Jdigital was against it and amended it for the first time in November 2023, when the amendment was rejected. Since then, the Constitutional Court changed its decision, so some of the regulations were annulled.

Among the measures that have been lifted is Article 13, which focuses on targeting new customers. From now on, the operators will have a chance to target the players who created the accounts less than 30 days before the ad starts running. On top of that, they can run ads for lottery games.

On top of that, Article 15 has been annulled. It is related to the appearance of celebrities in ads – now both fictional and real characters are allowed to be included in gambling advertisements.

Thanks to changing the first section of Article 23 and the third section of Article 25, the operators can run their ads on video-sharing platforms, including YouTube. Article 26 has also undergone some changes, so since sections 2 and 3 were annulled, the operators will be allowed to target all users over 18 years old on social media.

According to Spain’s Supreme Court, these regulations didn’t have a great legal basis, so the overturn is natural.

Among the rules that were prescribed by the Decree, all ads on TV, radio, and YouTube were restricted to a period from 1 am to 5 am, and only operators’ social media followers were allowed to be targeted. On top of that, the restrictions were related to the age of users and promotion of the bonuses, except for the verified players.

Since the law passed back in October 2022, various bans have taken place, including all references to social status, health, and economic stability. On top of that, putting gambling in the first place compared to friends and family in ads is prohibited, as well as mentioning money or luxury goods.

Sports sponsorships are still banned in Spain, as well as sponsoring sports events and broadcasts.

Good news for Spanish operators

As iGaming Business reports, the Supreme Court commented: “The ruling considers that advertising is part of the freedom of business and is subject to limits. However, such limits and prohibitions, insofar as they also affect the exercise of a lawful business activity, must have sufficient legal coverage, without being able to be regulated by independent regulatory standards unrelated to the criteria and limits set by the legislator.”

Operators are satisfied with the decision since it will make the customer acquisition a lot easier for them. According to Patricia Lalanda, a partner in a law firm specializing in gaming, LOYRA Abogados, the news was unexpected. She said: “When we received the judgment, the ruling of partial upholding of the appeal, annulling some of the most relevant articles of Royal Decree 958/2020 on commercial gaming communications, we were very surprised. After the order of the Constitutional Court basically saying that with the reform of Law 13/2011 on the regulation of gambling, the object of the question of constitutionality had disappeared, everything indicated that the Supreme Court would go along the same line. But nothing could be further from the truth; the sentence is conclusive.”

Source:

Spain Supreme Court overturns gambling ad restrictions, igamingbusiness.com, April 10, 2024.

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The Curacao Gaming Control Board, the government body in charge of regulating iGaming in the region, has announced it issued its first licenses under the new regulatory regime that came into effect last year.

Among the entities receiving licenses we can find White Star, a brand that is part of the Rhino Entertainment Group, which secured a new license for its CasinoDays online casino brand. At the same time brands such as Games and More, Geeka Corporation and Small House have received Digital Seals from the Gaming Control Board.

The confirmation of the licenses being issued comes just twelve weeks after Curacao launched its new licensing process, with applications being received starting the first day of November 2023.

The licensing portal has been processing new applications under existing legislation, asking all licensees to submit applications if they want to keep operating after the new National Ordinance for Games of Chance gets approved. Once that new legislation comes into effect, the Curacao Gaming Authority will take control of the licensing process and of the whole regulatory side of the iGaming business in the region. The new law was submitted to the Curacao Parliament for approval in December 2023.

A Transformative Period

Cedric Pietersz, the Managing Director of the Curacao Gaming Control Board said that “2024 heralds a transformative period in the regulatory landscape of Curacao’s gambling sector” and revealed that the volume of applications for licenses “far exceeded” the regulator’s expectations.

“White Star’s license holds a special place in our hearts and history,” the Managing Director continued. “It signifies a pivotal moment for Curacao’s evolution into a top-tier gambling jurisdiction with many more licenses in process.”

Ross Parkhill, the Chief Executive Officer of the Rhino Entertainment Group, added that being the first entity to receive such a license represents “a privilege” for his company and also a recognition of its “commitment to excellence and responsible gaming.”

The Chief Executive Officer added that his company “wholeheartedly” supports the new regulatory process that is being implemented in Curacao, underlining that it brings “added value and prestige” to the online casino’s license.

Source: “First License Issued By Curacao Gaming Control Board Under New Regime”. European Gaming. February 5, 2024.

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In the context of the growing pressure to implement safer gambling standards in Australia, the country’s federal government has embraced the task of enforcing a series of fresh regulations that would increase the protection of players. 

The new regulations are impacting several areas of sportsbook operations, including retail betting and payments.

Cashless Retail Betting 

Given the Victoria Gambling and Casino Control Commission’s (VGCCC) latest report related to the rise in the number of gambling incidents involving minors, they decided to take immediate action by asking Tabcorp, which is Victoria’s exclusive betting license holder, to introduce cashless retail betting on 70% of all of its terminals. 

This way, Tabcorp’s staff would be the first to prevent potential underage betting scenarios. 

Approximately 1,800 electronic betting terminals belonging to Tabcorp are expected to become cashless effective later on in the month. 

In order to use them, visitors would need to obtain a voucher from the betting venue’s counter. This way, customers who appear to be younger than 25 would need to first go through an ID verification procedure.

Last December, Liquor & Gaming New South Wales announced it would expand its cashless gambling trial amid increased interest shown by clubs and other venues. 

RWA Deems Underage Gambling as “Absolutely Unacceptable” 

SBC News and Payment Expert discussed the matter with Responsible Wagering Australia (RWA), the trade body that represents a number of high-profile holders of Australian licenses with names like bet365, Sportsbet, Pointsbet, Betfair, Unibet, and Entain on the list.

While Tabcorp is not a representative of RWA, the association has highlighted the critical importance of accurately meeting all standards regarding responsible gambling across the industry as a whole. 

Plus, Tabcorp shares responsibility concerning the implementation and enactment of safer gambling standards throughout Australia. 

RWA’s chief executive officer, Kai Cantwell, called it “absolutely unacceptable” for any underage Australian to be able to gamble, further mentioning the way online betting suppliers perform age and identity verifications on all customers prior to allowing them to make any transaction. 

Cantwell called the procedure “an important mechanism to mitigate money laundering and terrorism financing risks.”

The CEO added that RWA encourages “sensible regulatory measures” that can carry other forms of gambling up to the current standard that online betting providers are now operating on. 

At the moment, Prime Minister Anthony Albanese’s cabinet is busy implementing no less than 31 recommendations made by a parliamentary inquiry into gambling.
 

Last December, the Public Accounts and Estimates Committee issued a request to the state of Victoria, asking for TV gambling ads to be restricted as part of a more complex report on gambling and liquor regulations in the state.

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A significant step towards the new gambling regulation in Curaçao has been taken. The bill for the gambling regulation is submitted to the authorities, and now the parliament is supposed to decide whether it will approve it or not.

Significant changes in the market

There are various changes for the currently licensed operators as well, so the Ministry of Finance issued a notice to inform them about the transition to the new system in order to ensure smooth operation.

The changes will be overseen by the National Ordinance for Games of Chance (LOK), a new regulation body that will be established soon.

There will be a variety of changes, but the most important are changing the license types and establishing new fees for operators.

The operators won’t be able to register for sub-license through the Curaçao Gaming Control Board (GCB) anymore after March 31, and all operators that aren’t registered won’t be able to operate.

The portal was opened on September 1, which greatly shortened the whole application process. The operators were able to apply for licenses from November 1, and it could process new applications and register the operators who had already received their licenses.

The applications in progress will continue after March 31, while licensees will continue operating under a provisional license.

If the operators haven’t applied for the direct license before March 31, they will be able to continue operating under a sub-license or wait for LOK to be enacted, when they are obligated to apply for the direct license.

According to the new law, all licenses were renewed.

Digital Seal regulation

All operators who got their licenses before January 1 will be able to show the Digital Seal they got from the GCB on their website. Also, the applicants who have already submitted their applications will be able to do the same. The policy related to showcasing the Digital Seal will be released in the future.

The first announcement of the new Curaçao regulations happened in July 2022, and work on the process started in January this year.

New legislation has great support among the country’s government and regulators. Sixiènne Jansen, legal advisor to Curaçao’s Ministry of Finance, said that the first potential date for releasing new updates was September 1. Javier Silvania, Curaçao’s minister of finance, also supported the LOK and the new regulations, saying back in September that it would prevent the grey-listing by the Financial Action Task Force in the country.

Source: “Curaçao gambling regulation bill enters parliament”, December 19, 2023.

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Entain Plc, a prominent player in the global gaming industry, endorsed the findings of a study commissioned by the German Online Casino Association (DOCV) and the German Sports Betting Association (DSWV), highlighting the significant presence of black-market operators in Germany. The operator noted that current regulations disincentivized consumers from engaging with regulated gambling companies, contributing to substantial regional losses.

Unlicensed Operators Hurt the Regulated Market

According to the University of Leipzig report, only about 50.7% of players were channeled towards licensed online gambling spaces, while approximately 28.9% of traffic headed to unlicensed EU providers and 19.9% to unlicensed offshore providers. The study estimated that the unregulated online gambling market generates three-quarters of the revenue, resulting in significant tax revenue losses.

Germany’s regulatory deficiencies have also been detrimental to operators, as the aftermath of the State Treaty on Gambling in Germany included a visible shift of players towards illegal providers due to access barriers imposed by the current regulations. The operator has since experienced a significant decline in recorded sales and has been a vocal advocate for more effective enforcement efforts.

When looking at individual gaming behavior, it becomes clear that players are obviously switching to illegal providers and continuing to play there.

Grainne Hurst, Entain Group Director of Corporate Affairs

Entain operates Bwin, one of Gernamy’s top three online sportsbooks, and maintains an impressive presence among many European jurisdictions. While the Old Continent is infamous for its diverse regulatory environment, the company noted that current German regulations were among the most restrictive, significantly limiting competitiveness with grey market entities.

Entain Offered to Collaborate with Lawmakers

During an interview with GamesundBusiness.de, Entain Group Director of Corporate Affairs Grainne Hurst stressed the necessity for regulatory amendments to enhance player protection and make legal gaming offers more appealing. She reiterated that proper implementation of regulations could effectively redirect players towards legal platforms and reduce the appeal of unlicensed operators.

Entain also criticized German regulator Glücksspiel (GGL) for its lacking methodology, which only recorded a 2-4% share of illegal gambling activity. The operator expressed willingness to engage in discussions with the GGL to help foster improved player protections in Germany and encourage a fair, sustainable, and player-focused market.

Entain is making great efforts in Germany to ensure that implementation is now consistently geared towards the best possible player protection with appropriate channeling.

Grainne Hurst, Entain Group Director of Corporate Affairs

While Entain’s stance against illegal operators in Germany is commendable, the company remains primarily motivated by the impact of such activities on its bottom line. Increased competitiveness with unlicensed entities would significantly bolster its regional presence and signify a milestone achievement. A victory in Germany should also alleviate the company’s ongoing troubles and improve investor confidence.

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Gambling regulations in Peru are about to change. The government released changes in the regulations in the online gambling industry, specifically in implementation and regulation in this industry, on October 13, 2023.

New law implementation

The new rules for remote gaming and sports betting in Peru are regulated by Law No. 31557. The document is called Supreme Decree Nº 005-2023.

The point of new regulations is to allow the licensing regime, which will allow online gambling operators to offer their services in the country. Prior to the final approval, the law was amended by Law No. 31806.

The Bill was signed in 2022, and back then, the government was able to set a 12% tax on net income in the gambling industry. According to that, the government was expecting to earn about $40 million in profit from the gambling industry on a yearly basis. Pedro Castillo, the President of Peru, wanted to approve this in order to “have more resources to meet its economic and social obligations.”

Establishing MINCETUR

However, when the Supreme Decree was approved, the Ministry of Foreign Trade and Tourism, MINCETUR, was in charge of everything related to online gaming and sports betting, including getting the authorization to issue licenses. MINCETUR will be in charge of registering various technological platforms and all of their partners, as well as online gaming programs, live casino games, sports betting terminals all around the country, and service providers related to them.

However, one of the most important duties of the body will be taking care of complying with the advertising restrictions and responsible gaming regulations.

The new regulations will take care of the main technological standards, as well as various restrictions when it comes to gambling ads and responsible gaming provisions.

As Sigma reports, the Supreme Decree will also allow the operators who still haven’t gotten their licenses to have the gap of 30 days, specifically the operators who weren’t licensed on March 9, so they’ll get a second chance to become part of the Peruvian gambling market.

Almost all of these regulations will be effective 120 days after they are released. However, the specific sections have special timelines for all operators and licensees.

It remains to be seen how Peruvian operators will react to these new regulations. However, it is surely a step in the right direction when it comes to strengthening the Peruvian and Latin American markets and opening the door to the popularization of gambling and sports betting in these markets.

Source: Pulis Xerxen, Shirley, “Online gambling regulations published in Peru”, October 16, 2023.

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The regulator in charge of advertising in the United Kingdom, the Advertising Standards Authority (ASA), constantly monitors such activities and imposes actions against companies that breach the established advertising regulations. As the regulator, the Authority scrutinizes different sectors, including the gambling and betting vertical. On Wednesday, the ASA announced that it upheld an assessment against a promotional Tweet released for Sky Bet. Posted on February 9, 2023, the Tweet included a video clip that was a part of The Overlap, a podcast that involves some of the biggest names in soccer, business, politics and the sports sector.

The aforementioned promotional Tweet included a video of Gary Neville that predicts which team may win the Premier League. The promotional video displays the BeGambleAware logo along with text Brought to you by Sky Bet and a caption “Is Gary changing his title prediction? Thanks to Man City, It seems @GNev2 is having a change of heart. Part three of The Overlap Fan Debate is out now.”

After observing the post, the ASA questioned whether the ad featured an individual that is likely to appeal to people under 18 years of age. Under the current regulations, gambling advertisements cannot include personas that may appeal strongly to individuals under the age of 18. The Authority sought to determine if Neville, who is a famous pundit for Sky and ITV, and also has a rich history in soccer after being a part of the Premier League club, Manchester United, may appeal to those under the age of 18.

Sky Bet Explains Why Gary Neville Doesn’t Appeal to Individuals under the Age of 18

The ASA addressed their issue with Sky Bet, to which the company responded that while Neville is well-known in soccer, he retired more than a decade ago, in 2011. Moreover, Sky Bet said that The Overlap podcast focuses on soccer but also includes discussions and interviews within the political, sporting and business sectors. It added that the podcast is “distinctly adult in tone” and doesn’t offer any content that may appeal to children.

Citing data, Sky Bet confirmed that as of March this year, Neville had some 5.5 million followers on X, the platform formerly known as Twitter. According to the company, an estimated 1% of those followers were between the ages of 13 and 17. In contrast, Sky Bet said that some 53% of his followers are between the ages of 25 to 34. “Gary Neville was 47 years old at the time the ad appeared, and that his media profile was consistent with his mature age,” the company explained.

Advertising Watchdog Upholds Complaint

Despite the facts drawn by Sky Bet, the ASA upheld its complaint regarding the promotional message. According to the Authority, the 1% of Neville’s followers on X represent some 55,000 individuals under the age of 18. Additionally, the ASA said that in total, across other social media channels, an estimated 135,000 followers of the famous businessman and sports pundit are under the age of 18. 

Citing the BCAP, the Authority explained that “a generally high social media following that attracts a significant absolute number of under 18 followers, as determined through quantitative or qualitative analysis, is likely to be considered an indicator of ‘strong’ appeal.” Although that number was a small portion of Neville’s followers, the ASA said that it represents “a significant number in absolute terms.” It concluded that the ad was in breach of the CAP Code and explained that it must not appear again in its current form.

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In a bid to settle a contentious and long-standing dispute between California Indian tribes and cardrooms, the California Bureau of Gambling Control (BGC) has introduced proposed regulations that could significantly alter the landscape of the state’s gambling industry. 

California Cardrooms to Undergo Major Changes as Blackjack Faces Ban

Under the proposed rules, any form of blackjack, including player-banked versions, would be expressly prohibited in cardrooms across the state. The regulations also mandate that player-banked games rotate the dealer position at least twice every 40 minutes, a change meant to address concerns raised by tribal communities regarding the rotation of the bank between third-party proposition players and regular players at the table.

Although the regulations prohibit traditional blackjack, they do allow for a modified version of the game where players aim to get closest to a target point, similar to 21. However, unlike blackjack, players cannot exceed the target point, and the winner is determined based on proximity to the target, regardless of whether the player’s card total exceeds the specified number. These modified games cannot use the term “blackjack” or incorporate the number 21 in their names.

The proposed changes come in response to a protracted dispute over house-banked games between California Indian tribes and cardrooms. Tribal communities have exclusive rights to offer house-banked games in the state, a privilege that excludes other gambling establishments from offering games involving a “bank” or “percentage,” specifically referencing the game of “21.”

BGC Seeks Public Feedback Amidst Brewing Legal Battle between Cardrooms and Tribes

The BGC has invited public feedback on the proposed regulations until October 26. While the fate of these regulations remains uncertain, it is evident that the proposed changes could have a profound impact on California’s gambling landscape, leading to further debates and discussions among stakeholders in the coming months.

At the same time, in July, the California Assembly Judiciary Committee passed a bill, SB 549, allowing Indian tribes to sue cardrooms, aiming to resolve a longstanding conflict. California’s cardrooms use third-party proposition players (TPPPs) who act as banks in games. The bill enables tribes to file a one-time lawsuit, asserting that cardrooms’ games breach the state constitution. 

Tribes have a three-month window starting January 1, 2024, to sue. The move comes after years of dispute, with tribes claiming cardrooms’ banked games infringe on tribal casinos’ exclusivity. Cardrooms opposed the bill, arguing the approved games should not be subject to lawsuits, and that they cannot countersue competitors under this arrangement.

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