Following the conclusion of Euro 2024, the French Online Gaming Association (AFJEL) released initial market figures that revealed a disappointing performance for licensed online sports betting operators. Despite expectations, the legal market stagnated, showing no growth compared to Euro 2021 and a substantial 25% decline from the 2022 World Cup figures. Notably, the stakes fell far short of the National Gaming Authority’s (ANJ) predicted record of €1 billion, with actual figures coming in 50% lower.

Stagnation and Decline in Legal Sports Betting

The report highlights several troubling trends for the licensed sports betting market:

• Stakes remained stagnant compared to Euro 2021.
• A significant 25% drop in stakes from the 2022 World Cup.
• Actual stakes were 50% below ANJ’s forecast, amounting to approximately €500 million.

These figures are particularly concerning given that the French national team reached the semi-finals, a performance that would typically boost betting activity. However, the lack of growth and the continuous decline in the number of unique players (-5.3% in 2023) suggest a shift towards the illegal market.

Rise of the Illegal Gambling Market

In stark contrast, the illegal gambling market has flourished. For the first time since the regulated market’s establishment in 2010, the number of illegal players surpassed those in the legal market, reaching 4 million in 2023. This growth has been driven by illegal online casino sites offering sports betting on Euro 2024 without any regulatory oversight or player protection measures. These platforms have attracted players with enticing odds and the absence of legal restrictions.

Nicolas Béraud, President of AFJEL, expressed concern over these trends. He stated, “The initial assessment of Euro 2024 reveals figures that contradict the supposed frenzy of online sports betting on the legal market. The illegal market continues its strong expansion, cannibalizing the online sports betting sector by diverting players from the legal offer.”

Challenges in Curbing Illegal Gambling

Despite efforts by the ANJ to block illegal sites, these measures have proven ineffective. Béraud emphasized that unlicensed operators act with “complete impunity,” further exacerbating the issue. The regulator’s actions have not been sufficient to curb the growth of the illegal market, leaving over 4 million players exposed to significant risks.

This situation is compounded by the absence of a regulated online casino market in France and the high taxes imposed on legal operators. These factors drive players towards illegal platforms, which offer more attractive options without the burden of taxes or regulatory constraints.

A Paradoxical Market: Growth Amidst Decline

Interestingly, despite the concerns raised by AFJEL, ANJ figures indicate a thriving French gambling market. The total gross gambling revenue (GGR) for 2023 reached a record €13.4 billion, a 3.5% increase from 2022. All market segments saw growth, with online sports betting revenue growing by 6.4% year-on-year to €1.5 billion.

However, this growth masks underlying issues. The pool of unique players decreased by 7.3%, and the number of active accounts fell by 3.9%. The market continues to be dominated by former gambling monopolies like La Française des Jeux (FDJ) and Pari-Mutuel Urbain (PMU), which accounted for 62.7% of total revenue.

Addressing the Illegal Gambling Challenge

To address the growing illegal gambling problem, several measures could be implemented:

1. Stricter Penalties: Imposing harsher penalties on illegal operators and participants could deter illegal activities.
2. Advanced Technologies: Investing in technology to improve the detection and blocking of illegal sites.
3. Legalization of Online Casinos: Expanding the legal market to include online casinos could attract players back to the regulated sector.
4. Tax Policy Review: Reducing taxes on legal operators could make the legal market more competitive.
5. Public Awareness Campaigns: Educating the public on the risks of illegal gambling and benefits of legal channels.
6. International Collaboration: Sharing best practices with international regulatory bodies to enhance regulatory measures.

Implementing these strategies could help curb the growth of the illegal market and ensure the sustainability of the legal gambling sector in France.

Source:

Online sports betting during Euro 2024: A mixed assessment for the legal market while the illegal market explodes, afjel.fr, July 15, 2024.

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South Korea is seeing a concerning rise in gambling among teenagers. While iGaming is strictly prohibited in the country, young players often find ways to circumvent the rules and restrictions.

Unfortunately, the rise of online gambling among younger players also means that addiction treatment institutions are struggling to provide services to all affected players. In fact, the National Center for Youth Internet Addiction Treatment is the only establishment that offers such programs.

The center is run by the Ministry of Gender Equality and Family and offers 12-day rehabilitation programs for people struggling with gambling addiction. To help patients cope with the absence of gambling and overcome their addiction, the program offers a variety of activities, including sports and playing music. However, the program fails to hold the attention of many younger participants.

Shim Yong-chool, the center’s director, told The Korea Herald that despite the short duration of the program, many teenagers fail to complete it and quit early. For example, he noted that only 12 of the 17 recently admitted teens managed to complete the entire program.

This shows that the center, which opened in 2015, is struggling to help the increasing number of problem players.

Young Players Are More Prone to Becoming Addicted

Shim noted that many young addicts fail to resist their urges. In addition, the proliferation of online gambling continues to highlight the need to reinforce South Korea’s capacity to deal with gambling harm.

Data shows that the number of teenagers being treated for gambling addiction has skyrocketed by 75% in just four years. In addition, the National Police Agency’s recent crackdown on online gambling saw 353 people arrested, 39 of whom were juveniles. Survey shows that some 28,838 are at risk of developing gambling problems.

According to Lee Hae-kook, a professor from the Catholic University of Korea College of Medicine’s Department of Psychiatry, teenagers are a very vulnerable demographic because they are already immersed in the digital sector. Internet access from an early age increases their chance of coming across gambling content and starting to gamble themselves.

According to Lee Byung-chul, a professor from Hallym University College of Medicine’s Department of Neurology, gambling addiction, even if treated fairly quickly, can cause serious problems in young people’s neurological development. According to him, the state needs to fund systems that connect schools, mental health institutions and youth facilities.

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An investigation by the New Zealand Herald highlighted the rising issue of online gambling activities during school hours. The country’s outdated regulation offers little protection from gambling harm, leaving its most vulnerable groups at risk. Experts warn that exposure to gambling from an early age can have significant repercussions later in life, urging the government to step in.

Insufficient Protections Pose Significant Risks

New Zealand’s Problem Gambling Foundation voiced explicit concerns, stating that the surge in high school students involved in online gambling is worrying. One former Auckland student shared his experience, noting that he signed up with an online operator during the COVID-19 lockdown and continued throughout his Year 13 at school, developing a severe gambling addiction.

AUT Gambling and Addictions Research Centre Associate Professor Maria Bellringer noted that problem gambling among students was increasingly frequent. She added that young people were digitally savvy and could easily bypass existing restrictions, including pretending to be their parents and using their credit cards. Bellringer noted that New Zealand had not officially researched the matter but highlighted growing anecdotal evidence.

Parents have been reaching out to treatment services, worried about their child’s gaming addictions.

Maria Bellringer, AUT Gambling and Addictions Research Centre Associate Professor

Many of New Zealand’s youth encountered gambling via adjacent activities like wagering money on popular video game “skin” betting websites, later steering towards real-money gambling. Another victim of underage gambling shared that the rising addiction eventually led to frequent pub visits to engage in pokies as he regularly wagered significant amounts.

Effective Measures Require Significant Legislative Reforms

New Zealand currently lacks specific laws to prohibit citizens from accessing offshore online gambling sites, leaving Kiwis without local legal protection while gambling with such operators. The introduction of phone bans in several New Zealand secondary schools has caused heated debates, with several institutions imposing strict restrictions on phone usage during school hours.

Despite these limited efforts, students continue to find ways to access online gambling platforms, normalizing and exposing their peers to these activities. Experts urged the New Zealand government to consider the seriousness of the matter and take preventative measures, such as loot box bans similar to those planned in Australia.

A 2020 survey revealed that just under half of youths aged 16-24 had gambled, with over 9000 people considered moderate and high-risk gamblers. Mounting evidence raises red flags regarding the potential risks and long-term impact on these individuals, placing significant pressure on the New Zealand government to consider its long-overdue gambling reform.

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A recent legislative report has shed light on the alarming reality of Maryland’s efforts to provide adequate support to individuals struggling with problem gambling. Rising addiction rates and insufficient funding have caused the problem to spiral out of control, necessitating urgent action. Such measures must be implemented before the state considers legalizing iGaming, ensuring residents can easily access quality help.

Most Metrics Fall Short of Expectations

According to the official report, roughly 405,000 Maryland residents, comprising 8.6% of all adults in the state, had suffered from a gambling disorder as of 2020. Comparatively, the national mean was around 4% to 5%, painting a bleak picture of Maryland’s safe gambling efforts. These statistics underscore the urgent need for improved support and treatment services.

Such findings paint a concerning picture of the state’s current approach, revealing a gap between the number of individuals affected by gambling disorders and the available support options. The Maryland Center of Excellence on Problem Gambling is the region’s primary provider of gambling disorder support, operating a 24-hour helpline, a voluntary exclusion list, and various treatment and prevention programs.

While Maryland’s spending on safe gambling initiatives roughly matches most other US states, industry experts point out that spending still falls short of the adequate amount. Most proceeds from gambling currently go towards the Blueprint for Maryland’s Future, which complements school funding. As a result, the state’s problem gambling fund must rely on alternative revenue streams like expired prizes.

The State Must Overhaul Its Policies

Although funding for gambling harm prevention remained relatively constant, introducing online sports betting created new risks, further straining the state’s existing infrastructure. The rush of new operators caused a sudden spike in promotions, exposing a record number of people to potential harm. Recent controversies regarding college team sponsorships have caused increased regulatory scrutiny, but the recent report indicates lawmakers must take urgent action.

Maryland’s planned introduction of iGaming will place additional stress on its struggling safe gambling initiatives. The state may implement the new legislation by 2025, clearing the way for operators to market their services. Mobile gambling disproportionately affects young people and is significantly harder to detect, requiring updated monitoring and prevention solutions.

With a higher prevalence of gambling problems than the national average, the state must take proactive steps to expand treatment options, increase public awareness, and collaborate with stakeholders to create a more comprehensive approach to addressing gambling addiction. By doing so, Maryland can provide a lifeline to those in need and ensure a healthier and more supportive environment for its residents.

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The New South Wales (NSW) government is mulling scrapping its planned increase to the pokies tax that was expected to enter into force in July and level the tax rate of machines at casinos with that levied at clubs and pubs.

Review the Impact on Casinos

The announcement from the new premier, Chris Minns, that taxing arrangements need to be sustainable hints that the NSW government is considering scrapping the planned tax changes announced in December.

At the end of last year, the former state government announced tax changes that sought to raise an extra AU$364 million ($245.7 million) into the state’s coffers over three years by leveling the tax on gambling machines at casinos with that levied on those in clubs and pubs.

Admitting that the tax hike is important to the state’s bottom line, the NSW government believes it would have a serious impact on casinos.

“We need to make sure that when we do impose a new tax in New South Wales, the ability to pay is there,” Minns told reporters from ABC News, explaining that the government needs to assess what the impact would be on employment, especially in areas that require high-skilled labor such as gaming and casinos.

The announcement comes just a day after Star Entertainment revealed it was experiencing “a significant and rapid deterioration” of operating conditions due to regulatory restrictions and a decrease in consumer spending.

Star said it would cut 500 jobs mostly from its Star Sydney casino and freeze the salaries of non-unionized staff in an attempt to achieve AU$100 million ($67.5 million) in annual savings as the business is staring down the barrel of an AU$1.3 billion ($877.5 million) loss.

Following the casino’s announcement, United Workers Union called on the government “to revise its proposed tax to prevent further jobs being cut at The Star Sydney” and the government has heard the call.

Tax Policy Lacking Due Diligence

Minns, who led Labor to victory against the Perrottet government in March, also criticized the former government for lacking due diligence in its tax policy, claiming that his government was “left with that legacy” after taking over last month.

The chief advocate for Alliance for Gambling Reform, Tim Costelo, does not believe that The Star should be made any concessions, adamant that “if they can’t make a profit without money laundering and praying on problem gamblers, they really should get out of business.”

The Star and its rival Crown were subjected to intense scrutiny and heavy financial penalties after inquiries into their licenses uncovered they enabled money laundering and had operational weaknesses. Star says that it would be going ahead with the job cuts regardless of whether they will face tax hikes or not.

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