The Republic of Ireland Government has set out plans to form a new gambling regulatory authority with oversight of the country’s online and land-based market. An Inter-Departmental Working Group has published a new report on the issue, in which it focuses on the future licensing and regulation of gambling in Ireland. In the report, Minister […]

The Republic of Ireland Government has set out plans to form a new gambling regulatory authority with oversight of the country’s online and land-based market.

An Inter-Departmental Working Group has published a new report on the issue, in which it focuses on the future licensing and regulation of gambling in Ireland.

In the report, Minister of State David Stanton says Ireland is currently applying a “mid-20th century approach” to gambling activities and not taking into account the advances in digital technologies in recent years.

Stanton said comprehensive reform of the industry is required in order to bring the market up to date, but this will not be possible without establishing a new independent regulatory authority.

Current Irish legislation does not provide for a coherent licensing and regulatory approach to gambling aside from specific legislation governing the country’s National Lottery, the report noted, with oversight for the sector divided between a number of government departments and agencies.

This body would assume responsibility for regulation of the Irish market, which would include awarding licences to operators that want to offer gaming services in the country. The regulator would also have enforcement powers, such as the ability to impose fines on operators and suspend or revoke licences.

The new authority would also be responsible for the management of a social fund and subsequent disbursement of monies to approved addiction treatment centres and organisations, as well as raising awareness of gambling-related issues, carrying out industry research and running educational initiatives.

In addition, the regulatory body would act as the lead Irish agency in European Union and cross-border cooperation in combating betting-related match-fixing and money laundering.

It is intended that the authority would be funded primarily from fees and levies on regulated gambling activities in Ireland.

“As the gambling industry changes, and indeed as the demographics and motivations of its customers change, so must the State’s licensing and regulatory approach,” Stanton said in the report.

“The Working Group is firmly of the view that without a new independent regulatory authority of sufficient scale, the comprehensive reform required will not be possible.

“Effective modern licensing, regulation and monitoring of the gambling industry will come at a cost. The Working Group concludes nevertheless that such an authority can in time be substantially self-financing, through income from licence and other fees charged to gambling operators.”

The Irish Bookmakers Association (IBA), the representative body for betting operators in Ireland, has welcomed the new report. Chairperson Sharon Byrne said the new regulatory authority should be introduced as soon as possible.

Byne added: “We are hopeful that this will be the final step towards completion and enactment of a Gambling Control bill and independent regulator.  Our members have already introduced many of the advertising standards, customer monitoring and customer protection measures recommended by regulators in other countries.

“An independent regulator and gambling control bill, will ensure enforcement and compliance by all gambling operators, not just betting shops, which will lead to better consumer protections and support for those who may be vulnerable to addiction.”

Industry trade group the European Gaming and Betting Association (EGBA) has urged the European Union (EU) to introduce a ‘common rulebook’ of iGaming regulations in order to better protect consumers across the continent. The EGBA, which represents the likes of Bet365, GVC Holdings and Kindred, has highlighted how the majority of current regulation in Europe […]

Industry trade group the European Gaming and Betting Association (EGBA) has urged the European Union (EU) to introduce a ‘common rulebook’ of iGaming regulations in order to better protect consumers across the continent.

The EGBA, which represents the likes of Bet365, GVC Holdings and Kindred, has highlighted how the majority of current regulation in Europe is at national level, with little attention paid to cross-border activity.

Citing recent research, the EGBA has said that online gaming accounts for 21% of all gambling activity in Europe, but there are not enough laws in place to protect players, with around 1% of players having some form of gambling problem.

The EGBA has said the EU must look at implementing a common rulebook, as the quality of national gambling regulations in Europe varies significantly, with little consistency in frameworks in different markets.

“The challenges are obvious: the internet has no national borders, which means Europeans can easily play on gambling websites based in countries other than where they live,” EGBA secretary general Maarten Haijer said. “This means Europeans are subject to very different sets of consumer protection standards when they play online, leaving some players much better protected than others.

“A common rulebook would establish the strong and consistent safeguards needed to protect Europe’s citizens, particularly vulnerable groups, such as minors and problem gamblers,” Haijer explained. “One set of rules would also benefit our members’ companies: one set of rules would be clear and would lessen the costs and risks of meeting 28 different, and sometimes conflicting, sets of rules.”

The call to action comes after the EGBA in December published a new report that suggested Denmark is currently the only EU member fully embracing consumer protection guidelines. 

Commissioned by the EGBA and published by the City University London, the ‘Consumer Protection in EU Online Gambling Regulation’ review claims EU member states are putting the safety of consumers at risk with inadequate levels of protection.

The EGBA identified diverse levels of regulation across the EU, resulting in varying levels of consumer protection. Denmark is the only exception, with evidence of the country having introduced all European Commission measures in full.

Haijer added: “These are major failings in the effort to keep Europe’s citizens and gamblers safe online – and they could easily be avoided. Even some basic safeguards are not available everywhere in the EU.

“It is 2019: If the EU is really serious about making the digital single market work for its consumers, there is no reason why online gamblers living in one member country should be less protected than those living in another. It is time to act.”

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The Malta Financial Services Authority has appointed an American company to help it check crypto currency assets. The authority is currently going through procedures for the approval of cryptocurrency agents – known as virtual financial agents – at least 29 of which have already applied for licences. Once these have been approved, expected by the […]

The Malta Financial Services Authority has appointed an American company to help it check crypto currency assets.

The authority is currently going through procedures for the approval of cryptocurrency agents – known as virtual financial agents – at least 29 of which have already applied for licences. Once these have been approved, expected by the end of this month, the VFA agents are expected to submit applications for operators like exchanges, wallets and initial coin offerings.

While the VFA agents are expected to do the due diligence on the individuals and entities behind these operators, the MFSA will still require tracking of the assets that flow through them – which is where CipherTrace will come in.

CipherTrace was founded in 2015 by Silicon Valley entrepreneurs and was initially funded by the US Department of Homeland Security Science and Technology and government agency Defense Advanced Research Projects Agency. Its solution was described as being able to gauge and potential risk exposure of businesses including cryptocurrency exchanges, collective investment schemes and initial coin offerings.

Online casino advertising has no place on German airwaves, according to a missive issued by the country’s broadcasting regulators. On Wednesday, German media reported that state telecom regulatory bodies had sent letters to hundreds of private TV and radio stations reminding them that running promotional spots for online casino operators “is not allowed under current legislation.” The […]

Online casino advertising has no place on German airwaves, according to a missive issued by the country’s broadcasting regulators.

On Wednesday, German media reported that state telecom regulatory bodies had sent letters to hundreds of private TV and radio stations reminding them that running promotional spots for online casino operators “is not allowed under current legislation.” The broadcasters were strongly urged to reconsider “future placement of advertising in your programs.”

The letter, which was dated February 25th, appears to have largely achieved its goal. Wolfgang Bauchrowitz, deputy director and legal advisor at the Media Authority of Hamburg Schleswig-Holstein (MA HSH), said the number of online casino ads had “significantly decreased” in recent weeks. Bauchrowitz also warned that broadcasters who continued to run such ads would likely comply after “administrative means” were applied.

The letters were issued following the recent expiration of the online casino licenses issued by the state of Schleswig-Holstein (SH) in 2012. SH was the only one of Germany’s 16 länder (states) to formally authorize online casino activity after initially refusing to sign on to the 2012 federal gambling treaty that would have permitted only online sports betting.

Meanwhile, that 2012 federal treaty, which was ultimately deemed illegal by both local and international courts, is set to expire on June 30, 2019. Germany’s states have attempted to garner consensus on a mutually acceptable follow-up but these efforts have so far proved fruitless, in part because SH continues to press for a more expansive regulatory scheme than that desired by most of the other states.

On Feb. 26, the government of the Lower Saxony said a temporary stop-gap measure that would extend the current ‘toleration’ of online sports betting is scheduled to be signed on March 21. German media outlet Welt am Sonntagreported that new German betting licenses would take effect January 1, 2020. These licenses would be valid until June 30, 2021, by which time the expectation is that consensus on a permanent regulatory scheme can be achieved.

The 2012 gambling treaty limited the number of betting licenses to 20, an artificial cap that was successfully challenged in the courts by the other 15 companies who’d made it to the second round of the application vetting process. The new regime will reportedly be open to all qualified entities. However, the SH government reportedly expects a carve-out that will allow the state to go on licensing online casino operators.

Some of the online casino operators that were lucky enough to receive an original SH license continued to advertise their products – not just in SH but across Germany – after these licenses expired. It was these companies’ use of the SH coat of arms in their promos that reportedly contributed to the telecom watchdogs issuing their warning letter to broadcasters.

Should SH win its online casino carve-out, some of these boundary-pushing licensees may find the new licensing application process a wee bit tougher than last time.

The Malta Gaming Authority (MGA) and the Spelinspektionen (the Swedish Gambling Authority) have entered into a Memorandum of Understanding (MoU) for the purposes of enhanced cooperation between the two authorities in furtherance of the authorities’ public policy objectives and mutually common values. The aim of this MoU is to facilitate on-going close communications between the two authorities, and to support effective […]

The Malta Gaming Authority (MGA) and the Spelinspektionen (the Swedish Gambling Authority) have entered into a Memorandum of Understanding (MoU) for the purposes of enhanced cooperation between the two authorities in furtherance of the authorities’ public policy objectives and mutually common values.

The aim of this MoU is to facilitate on-going close communications between the two authorities, and to support effective sharing of information on matters of mutual interest and policy areas. Both authorities have also agreed to provide the best possible operational assistance to one another, on a continuous basis, in accordance with both their respective procedures and regulatory policies.

The Director General of the Swedish Gambling Authority, Camilla Rosenberg said that: “Many of the companies that have received a Swedish license also have technical equipment and a license in Malta. By opening the communication channels between the authorities we become stronger in our supervisory activities. This is the beginning of a broad and long-term cooperation, and our plan is to initiate corresponding collaborations with more gambling authorities in Europe.”

The MGA’s Chief Executive Officer, Heathcliff Farrugia, also expressed his satisfaction on this agreement whereby he stated that: “The MGA is always actively seeking to foster relationships with fellow authorities and other international regulatory bodies as we firmly believe that such relationships are key to reaching our objectives, especially in the area of remote gaming which is fundamentally cross-border in nature. 

This MoU, signed with the Swedish Gambling Authority, is an important step towards achieving both our respective regulatory goals in vital areas of mutual interest, especially since the MGA and the Swedish Gambling Authority share a significant number of operators licensed by both regulators. We are eager to start this mutually beneficial journey with our Swedish counterpart.”

The MoU came into force as of the 4th of March 2019.

Dutch gambling regulator Kansspelautoriteit (KSA) has moved to increase its fines for unlicensed online gambling activities in the country, after saying the previous penalties were not “terrifying” enough. Operators that breach national regulations could now face a starting fine of €200,000 (£171,200/$227,600), up from the previous penalty of €150,000. KSA said this amount will be […]

Dutch gambling regulator Kansspelautoriteit (KSA) has moved to increase its fines for unlicensed online gambling activities in the country, after saying the previous penalties were not “terrifying” enough.

Operators that breach national regulations could now face a starting fine of €200,000 (£171,200/$227,600), up from the previous penalty of €150,000.

KSA said this amount will be increased or decreased depending on the specific violation, taking into account factors such as the number of sites that are being run by the operator, the amount of games offered, as well as the level of prizes and bonuses available to consumers.

In addition, KSA has set out increases of at least €75,000 for three breaches in particular: offering live betting, calculating costs for temporary inactive players and making misleading statements about permits and supervision.

The regulator said that it has been forced into making the changes due to regular rule breaches by gambling operators.

KSA chairman, René Jansen, said the increase in financial penalties will support the long-awaited regulation of online gambling in the country. Last month, the Dutch Senate passed the Remote Gaming Act, paving the way for the roll-out of igaming regulation.

“The fines we used were not terrifying enough,” Jansen said. “The Senate recently adopted the bill on remote games of chance, which makes it possible to apply for a licence in time for offering gambling via the internet.

“The intention of the law is to create an attractive legal online gaming offer, which makes it possible for consumers to play safely on a fair market.

“There is no room for illegal providers. That is why we intend to thoroughly review our penalties policy for the future. The updating of the fines policy is now only a first step.”

The Netherlands is expected to begin awarding online gaming licences from the middle of 2020, with operators required to develop comprehensive responsible gaming strategies to offer a high level of player protection. Licensees face a tax rate of 29.1% of gross revenue.

It is hoped regulation could help tackle illegal gambling problems in the country. In January, a report commissioned by Holland Casino suggested that the number of people gambling online illegally in the Netherlands had increased by 20% over the last two years.

In addition, KSA said it issued a record €1.7m in fines to operators that breached current regulations over the course of 2018. The regulator handed out a total of 23 sanctions over the course of the last year, including seven administrative penalties, 12 penalties and four charges under administrative coercion.

As the European Commission ponders whether the European Union needs rules for cryptoassets and trading in virtual currencies, EU states are moving ahead with their own regulations, with the smallest of them, Malta, leading the pack. The risks of investing in the industry were made clear last year when Bitcoin, the most successful cryptocurrency, lost […]

As the European Commission ponders whether the European Union needs rules for cryptoassets and trading in virtual currencies, EU states are moving ahead with their own regulations, with the smallest of them, Malta, leading the pack.

The risks of investing in the industry were made clear last year when Bitcoin, the most successful cryptocurrency, lost three-quarters of its value from a peak around $20,000 in late 2017. The market capitalization of cryptoassets dropped to $110 billion at the end of January from $830 billion a year earlier.

These market developments have occurred in a “legal vacuum”, said Robert Ophele, the head of France’s financial regulator. Speaking at a financial-technology conference in Brussels, he urged the EU Commission to propose new regulations to address risks.

Last month, EU regulators called for new rules to prevent money laundering and protect investors. But the Commission, the sole source of new EU legislation, so far has avoided taking action, fearing it will hamper the nascent industry.

“We have to make sure that our financial sector rules do not inadvertently hinder useful innovation,” said the financial services commissioner, Valdis Dombrovskis. Brussels was still considering whether EU action was needed, he said.

 

Individual EU states are moving into the vacuum, despite risks that uncoordinated action could weaken the EU market. The French parliament is passing cryptoassets legislation, and Germany’s finance ministry has begun a consultation on a blockchain strategy that will be published before summer.

Smaller states are ahead of them. Luxembourg passed its rules this year, and the Baltic countries have long been active in the sector, industry consultant Peter Moricz said.

The boldest is Malta, which has set up a broad regulatory framework and aims to become Europe’s cryptohub.

“We are the first EU jurisdiction to have a complete framework that caters for all key areas of risk: the risks to consumers, market integrity, financial crime and cyber security,” Joseph Cuschieri, the head of the Maltese financial regulator, told the Brussels conference.

The Mediterranean island is already home to the EU’s largest online gambling industry and a large financial-services sector, which have been drawn there by advanced regulation and low taxes.

But these successes have partly been marred by foreign investigations of several gambling firms and banks on the island that have exposed weak enforcement by local authorities.

“As a result of these failures, we have learnt how to strengthen our supervision,” said Christopher Buttigieg, a top supervisor at Malta Financial Services Authority.

The UK Gambling Commission has welcomed the recommendations from the Responsible Gambling Strategy Board (RGSB) on the new national strategy, which intends to prevent gambling harms. UKGC is likely to publish the new strategy in April. The RGSB, which advises the commission independently, has offered a range of recommendations on what the priorities to reduce gambling harm […]

The UK Gambling Commission has welcomed the recommendations from the Responsible Gambling Strategy Board (RGSB) on the new national strategy, which intends to prevent gambling harms. UKGC is likely to publish the new strategy in April.

The RGSB, which advises the commission independently, has offered a range of recommendations on what the priorities to reduce gambling harm should be, and on the arrangements necessary to implement the strategy effectively.

The advice will now be considered, along with comments from stakeholders and the public which were submitted through a public consultation. The consultation, which ended on 15 February, resulted in detailed feedback from consumers, charities and industry stakeholders on how to develop what will be the successor to the current National Responsible Gambling Strategy.

Helen Rhodes, programme director at the Gambling Commission, said: “We fully welcome RGSB’s advice on the new National Strategy, and will carefully consider these recommendations from our expert advisors on how best to make lasting progress to reduce gambling harms.”

“Alongside the consultation responses we’ve received from a variety of stakeholders, RGSB’s advice is a significant step to develop and launch a strategy to deliver the greatest possible impact to further reduce gambling harms.”

Sir Christopher Kelly, chair of the RGSB, added: “We welcome the Commission taking responsibility for delivery of the next strategy and ensuring adequate and appropriate steps are taken to reduce gambling-related harms from the wide range of stakeholders from whom action will be required. We believe that there is a significant opportunity to make real progress over the next few years. We have made clear in our advice, however, that we think success will require changes in mindset, partnership arrangements, in the approaches to prevention and implementation, and in funding.”

Britain is getting more strict with its age verification rules for online gambling, so as to prevent underage children from engaging in gambling activities. Now, online gambling sites are required to thoroughly verify the identities of each and every one of their customers before they can deposit funds into their accounts or before they can […]

Britain is getting more strict with its age verification rules for online gambling, so as to prevent underage children from engaging in gambling activities. Now, online gambling sites are required to thoroughly verify the identities of each and every one of their customers before they can deposit funds into their accounts or before they can start gambling. These new rules will be in effect starting May.

The current law allows punters to deposit funds into their accounts even before operators can carry out their age verification checks. However, they are not allowed to withdraw any winnings until their age is verified. If the gambler turns out to be underaged, their initial stake must be returned by the operator. Gambling operators have 72 hours to carry out the required age verification checks.

This process has been toughened, as The Gambling Commission has moved to tightened the laws so as to reduce any risk of children engaging in gambling activities through online sources. According to the commission, this move would help the operators in preventing any harm and detecting criminal activities. It would also help in the identification of “self-excluded” customers who may be trying to indulge in gambling.

The new measures, however, will not allow operators to delay payouts to customers on the basis of age verification rules. Moreover, they acknowledge that it could result in “greater levels of friction” when new customers try to sign themselves up for these services.

Operators to clearly inform customers what information to provide

Now, the new rule requires operators to obtain, as well as verify information from their customers so that they can establish their identities before they start to engage in any gambling activity. Information such as the name, address and date of birth of the customer are a must. If a customer makes a request to withdraw funds from his/her account, the operator must not ask them to supply any additional information if they could have “reasonably requested that information earlier.” However, if the operator needs to obtain any information from the customer due to any legal obligation, they can do so.

Operators must clearly inform customers before they deposit funds, what information and documents they will need to provide, why they need to provide such information, and the manner in which they could provide it. It is also up to the operators to ensure that whatever information they obtain is accurate.

The Gambling Commission has today announced new rules which online operators must follow to make gambling safer and fairer. The new rules, which follow an open consultation, will ensure operators verify customers’ age and identity details faster which will benefit consumers. Until now, online gambling businesses have been allowed 72 hours to carry out age verification checks. […]

The Gambling Commission has today announced new rules which online operators must follow to make gambling safer and fairer.

The new rules, which follow an open consultation, will ensure operators verify customers’ age and identity details faster which will benefit consumers.

Until now, online gambling businesses have been allowed 72 hours to carry out age verification checks. The operator cannot permit customers to withdraw winnings until age verification has been completed and must return stakes if the person is found to be underage.

But to guard against the risk of children gambling, new rules mean operators must verify customer age before the customer can:

– deposit funds into an account

– gamble with the licensee with either their own money or a free bet or bonus.

In addition, the Commission is now also insisting that customers must be age verified before they are able to access free-to-play versions of gambling games on licensees’ websites. While free-to-play games are not technically gambling (there is no prize involved), there is no legitimate reason why they should be available to children.

In March 2018 the Commission announced that some online operators were treating customers unfairly by requesting additional identity information when the customer attempted to withdraw winnings. Around 15% of complaints to its contact centre were about licensees not allowing a customer to withdraw funds until they submit certain forms of ID.

The new rules require remote licensees to:

– verify, as a minimum, the name, address and date of birth of a customer before allowing them to gamble

– ask for any additional verification information promptly

– inform customers, before they can deposit funds, of the types of identity documents or other information that might be required, the circumstances in which the information might be required, and how it should be supplied to the licensee

– take reasonable steps to ensure that information on their customers’ identities remains accurate.

The changes will help operators better prevent harm or detect criminal activity because they have more information about their customers. In addition, the changes will mean that operators cannot demand that customers submit ID as a condition of cashing out, if they could have asked for that information earlier.

Finally, the changes will increase the likelihood that someone will be identified if they attempt to gamble while self-excluded. This applies equally to the operator’s own self-exclusion schemes and the online multi-operator self-exclusion scheme, Gamstop. This is because effective verification by operators will mean that a customer will not be verified, and therefore unable to gamble, until they provide correct details. These details will then be checked against both the operator’s own self-exclusion database and the verified data held by Gamstop. 

Neil McArthur, Gambling Commission Chief Executive, said: “These changes will protect children and the vulnerable from gambling-related harm, and reduce the risk of crime linked to gambling.  They will also make gambling fairer by helping consumers collect their winnings without unnecessary delay.’’

“Britain’s online gambling market is the largest regulated market in the world and we want to make sure it is the safest and the fairest. Today’s changes follow our review of online gambling and our ongoing widespread regulatory action into the online sector.  We will keep using our powers to raise standards for consumers.”

Jeremy Wright, Secretary of State for Digital, Culture, Media and Sport, said:

“These significant changes mean operators must check someone’s age before they gamble, and not after. They rightly add an extra layer of protection for children and young people who attempt to gamble online. By extending strong age verification rules to free-to-play games we are creating a much safer online environment for children, helping to shut down a possible gateway to gambling- related harm.”

The new rules come into force on 7 May.

The Gambling Commission will shortly be launching a consultation on plans to make explicit our expectations about how to interact with a customer who may be experiencing gambling-related harm and will be calling for evidence on the use of gambling blocking software.

The All-in Diversity Project, an industry-driven initiative that aims to benchmark diversity, equality and inclusion in the global gaming sector, is proud to welcome one of the world’s leading gaming regulators as a Strategic Partner.   The MGA, one of the first jurisdictions to embrace online gaming and continue to keep pace with new technology […]

The All-in Diversity Project, an industry-driven initiative that aims to benchmark diversity, equality and inclusion in the global gaming sector, is proud to welcome one of the world’s leading gaming regulators as a Strategic Partner.
 
The MGA, one of the first jurisdictions to embrace online gaming and continue to keep pace with new technology and trends in the industry, is now turning its attention to the challenges of a changing workforce, through its new partnership with the All-In Diversity Project.
 
Malta is one of the world’s biggest gambling hubs, boasting one of the most diverse workforces in the industry. So far this has been more by accident than design. Joining forces with the All-In Diversity Project allows for a more scientific approach. The alliance means greater exposure for the issues surrounding diversity in the betting and gambling sector in Malta and will help address issues like the skills gap, recruitment and retention of talent from the local talent pools and globally.
 
‘’The Malta Gaming Authority is delighted to be supporting this project, as diversity, equality and inclusion are all on top of the MGA’s agenda.”. says Heathcliff Farrugia, the Chief Executive Officer of the Malta Gaming Authority.
 
“Having the MGA support the All-in Diversity Project is another leap forward for our industry. Working in collaboration with leading regulatory organisations such as the Malta Gaming Authority means we can accelerate progress, share more information and offer better tools to the businesses located there. We are thrilled to have them as a partner,” says Kelly Kehn, Co-Founder of the All-In Diversity Project.