The UK Gambling Commission (UKGC) has unveiled its business plan for 2017/2018 outlining its focuses and priorities for the next financial year. The business plan focuses on 5 key areas: • Empower and protect consumers • Raise standards across all gambling sectors • Build partnerships and understanding • Ensure fair play on the National Lottery […]

The UK Gambling Commission (UKGC) has unveiled its business plan for 2017/2018 outlining its focuses and priorities for the next financial year.

The business plan focuses on 5 key areas:
• Empower and protect consumers
• Raise standards across all gambling sectors
• Build partnerships and understanding
• Ensure fair play on the National Lottery
• Improve regulation.

The commission also invited key stakeholders to contribute to shaping its three-year corporate strategy. Consumers, the industry and public bodies are invited to express their opinion by completing an online form before May 5.

UKGC chairman William Moyes encouraged all interested parties to share their views:

“By no means are we starting from scratch with our long-term strategy, but we are calling on all our stakeholders to share their views about how we and our partners can have the greatest impact for consumers – who are at the heart of everything we do at the Commission.

“These highly valued contributions will help us to continue to improve how we deliver our core responsibilities.

“There is also a need to build and maintain consumer trust against the backdrop of changing consumer behaviour.

“To do this, we wish to encourage the industry to be increasingly innovative to continue to keep gambling safe, fair and crime free.’’

Since the first event back in 2015, eSCon is all about connections, insight and discussion. This year, the conference took place at London’s Le Meridien Piccadilly and over the course of two days (5th-6th of April) tried to bring together eSports industry of the UK and greater Europe. eSCOn Europe delivered their promise to provide […]

Since the first event back in 2015, eSCon is all about connections, insight and discussion. This year, the conference took place at London’s Le Meridien Piccadilly and over the course of two days (5th-6th of April) tried to bring together eSports industry of the UK and greater Europe.

eSCOn Europe delivered their promise to provide a platform to discuss various eSports issues, including branding, regulation, betting, growth, integrity and sponsorship. Furthermore, it was a great networking opportunity for industry professionals.

The first day was all about branding, eSports expansion and regulation. Pieter van den Heuvel of Newzoo, Mathieu Lacrouts of Hurrah and Benoit Pagotto of Fnatic discussed the opportunities of sponsorship. Cory Allison of Rezli, Ellie Reed of M&C Saatchi Sport & Entertainment and James Dean of ESL spoke about healthy business growth and how to attract more women to eSports.

The second day of conference was dedicated to creating the ultimate eSports experience, building a brand in eSports and protecting professional players. Mortiz Maurer of Genius Sports, Adam Savinson of Betway Group and James Watson of Sportradar AG opened up the panel discussing about publishers and how important it became for them to understand more about gambling industry.

All of the speakers agreed that it’s crucial to have an eSports expert who would guide the way internally for operators. They emphasized the necessity to be on top of in-play issues. Watson said operators can’t just plug in eSports and let it run. Further, some huge bookmakers are making a big mistake treating eSports like a traditional sport. They will never see returns in this way. Watson used the example of Bet365 vs Betway. Bet365 is a huge operator but doesn’t spend much time on their eSports offering. In the meantime, a much smaller operator Betway has a successful, specialised eSports department and offering.

Maurer emphasised that eSports is a collection of games and it’s extremely important for operators to understand the fact that there are regional preferences before starting the business.

Further, it’s really important to realise that eSports fans are different from traditional sports fans. “People who love football won’t play football for 6 hours a day, but people who love DOTA will play DOTA for 6 hours a day”, Maurer said.

Prime Minister of Japan Shinzo Abe officially kicked off the inaugural meeting of the government task force. It will make recommendations on licensing and operating integrated resorts (IR) with casinos in the country. The new regulatory body is a result of multiple promises from Japanese officials to address public concerns about the social ills associated […]

Prime Minister of Japan Shinzo Abe officially kicked off the inaugural meeting of the government task force. It will make recommendations on licensing and operating integrated resorts (IR) with casinos in the country. The new regulatory body is a result of multiple promises from Japanese officials to address public concerns about the social ills associated with gambling.

“We need to introduce casino regulations of the highest global standards, and take every measure to address various concerns such as addiction, money laundering and what effects it might have on young people,” said Abe. “I want to create fabulous, Japan-style integrated resorts that have clean casinos.”

The task force is set to bring together lawyers, accountants, economists and political analysts in order to discuss all issues regarding licensing and operating, as well as financial and tax problems. It will be headed by Shinzo Abe and chief cabinet secretary Yoshihide Suga.

The expert panel will work on how to keep illegal activity out of gambling facilities and create measures to prevent money laundering. It is already known that the new body is considering some measures to prevent problem gambling, such as including an entrance fee for residents who access the casino floor and a system that requires public officials to report visits to the casino exceeding a set monthly limit. There might also be a system introduced, where problem gamblers or immediate family members could voluntarily add themselves to casino exclusion lists.

Restrictions placed on advertising will also be discussed among the officials.

The committee plans to submit recommendations by the end of the summer.

The Swedish state gambling monopoly may soon be replaced by the new setup. The government of Sweden requested Hakan Hallstedt, Lotteriinspektionen general director, to investigate the possibility of changing the current monopoly of the industry to a new system that would allow multiple companies to be licensed and taxed. Currently, the online gambling monopoly is […]

The Swedish state gambling monopoly may soon be replaced by the new setup. The government of Sweden requested Hakan Hallstedt, Lotteriinspektionen general director, to investigate the possibility of changing the current monopoly of the industry to a new system that would allow multiple companies to be licensed and taxed.

Currently, the online gambling monopoly is held by state-owned Svenska Spel. Even if the changes were approved, Svenska Spel would keep its monopoly on land-based casinos and slot machines.

International operators would be welcome to apply for Swedish licences, if they’re willing to pay 18% tax on the gross gaming revenue. Operators who continue to provide their services in the Swedish market without a local licence would face strict penalties. The new rules are also paying extra attention to the strong consumer protection measures.

According to the Swedish Gambling Authority, licensed and taxed gambling currently makes up 77% of the Swedish gambling landscape. Within two years of the new measures taking effect, it is believed that 90% of Sweden’s online market will be controlled by locally licensed operators.

The aim of such changes is to bring foreign-based online gambling companies such as Kindred and Betsson to the country.

Lennart Kall, Svenska Spel CEO, was happy about the possible changes, saying it would put all online companies under the same rules and conditions.

Peter Alling, Head of Public Affairs Nordics at Kindred, commented: “We welcome the political consensus on the need for a modern gambling legislation, and the commitment that a new law will be in place before the next general election.For re-regulation to be successful there is no room for major changes in the investigator’s proposal. Delays will endanger the whole reform.”

The new regime should take effect in January 2019.

Japan signed a law recognising virtual currencies like Bitcoin as a legal method of payment. Even though the bill does not recognise Bitcoin as a currency, it accepted that cryptocurrencies have “asset-like values” that can be used “as payment to indefinite parties for the cost of purchase or rent of items or receipt of services […]

Japan signed a law recognising virtual currencies like Bitcoin as a legal method of payment. Even though the bill does not recognise Bitcoin as a currency, it accepted that cryptocurrencies have “asset-like values” that can be used “as payment to indefinite parties for the cost of purchase or rent of items or receipt of services and which can be transferred by means of electronic data processing systems”. The bill will go into effect on April 1.

“Bitcoin will continue to be treated as an asset unless there are future revisions or directives to Japanese tax law,” was noted in Bitflyer exchange.

The bill is also imposing a few requirements on Bitcoin exchanges in the country. Japan government’s Financial Services Agency (FSA) started regulating virtual currency exchanges and operations last year, but according to the new law, they need to be registered with the Prime Minister.

Requirements are also need to be met while processing digital currency exchanges domestically. For instance, is it essential to have a minimum capital of JPY10 million (US$89,430) as well as IT systems capable to prevent theft and loss. Other requirements include stricter KYC guidelines, establishing the system for employee training and internal rules.

The accounting part still remains unclear for Bitcoin adopters in Japan. Nikkei Asian Review reported that current accounting standards in the country do not cover digital currencies, so there is no guidance yet on how to approach cryptocurrency-related transactions for tax purposes.

Chikako Suzuki, a partner at Pricewaterhousecoopers Aarata believes that missing clarifications pose “a risk that companies that hold virtual currency could turn out to have distorted valuations or that huge losses surface suddenly”.

“The Accounting Standards Board of Japan decided Tuesday to begin consideration, expected to take six months, of a framework for treatment of virtual currency,” was stated in the Japanese news outlet.

China is committing to crack down on all gambling operators illegally promoting overseas casino resorts in mainland China. Casinos are outlawed in China and so is the promotion of this type of gambling venues. However, a number of international casinos have sent marketing and sales representatives to China to attract big-spending players. Following a high-profile […]

China is committing to crack down on all gambling operators illegally promoting overseas casino resorts in mainland China. Casinos are outlawed in China and so is the promotion of this type of gambling venues. However, a number of international casinos have sent marketing and sales representatives to China to attract big-spending players. Following a high-profile case last year when 18 Crown Resorts staff members were arrested in relation to promoting foreign casinos, Chinese lawmakers are taking an extra effort in order to prevent illegal advertising of illicit gambling service.

Public Security Minister Guo Shengkun commented: “We must seriously investigate and severely punish those companies and individuals involved in enticing and organising Chinese tourists to gamble in overseas casinos. We must severely punish those casino-related illegal labour agents and crack down on activities for investing in overseas casinos.”

Because of the Communist Party Congress happening later this year in Beijing, the minister also organised a special meeting of the country’s highest police officers to set up the action plan before the event takes place. The government is aiming to stop the flow of money from the country and gambling is being blamed for the major part of that.

Guo Shengkun said: “The police must root out criminal gangs operating online gambling and show no mercy to “underground banks” which aid with the flow of cash to fund cross-border betting.”

It is already stated, that following the Crown Resorts arrests, almost all land based casino operators have ceased their marketing activity on mainland China.

Midi, a development consortium from Malta, proposed a casino hotel and shopping complex for Manoel island. The consortium obtained a 99-year concession on this part of the island 17 years ago. Midi had a meeting with NGOs to introduce the proposal and final development plans. Even though the plans are not public yet, it’s been […]

Midi, a development consortium from Malta, proposed a casino hotel and shopping complex for Manoel island. The consortium obtained a 99-year concession on this part of the island 17 years ago. Midi had a meeting with NGOs to introduce the proposal and final development plans. Even though the plans are not public yet, it’s been reported that Malta will host a hotel casino, along with retail outlets and luxury apartments. However, the proposal received negative feedback from several officials in Malta.

Gzira mayor Conrad Borg Manche referred to the plans as being completely unacceptable: “For the average citizen who is not shopping or gambling away money, there is very little being offered. The sea will be a mass of vessels so people cannot swim in the wake of the yachts of the rich. This is yet another community which caters for the elite and shuts out the citizen.”

Similarly, environment officer Tara Cassar said that the island would be turned into a large shopping complex with high-priced apartments and nothing to draw the people of Gzira to use it.

Chairman of Alternattiva Demokratika (AD) Arnold Cassola demanded a full investigation into the contract between the Maltese government and the Midi consortium: “If any of the conditions of the contract have been breached, Manoel Island is to be returned to the Maltese government and is to be turned into a national park.“

“As things stand, AD totally refutes the proposal of the Midi developers to develop Manoel Island into a hotel at Fort Manoel, a shopping complex and a casino-hotel at the historic 18th century Lazaretto, retail outlets and luxury low-rise apartments, a helipad and superyacht marina, while taking over also the foreshore including the current swimming spot beneath the fort to build a water taxi pontoon.”

“The Midi developers have already caused enough damage by reducing Tigne Point to a concrete slum. We reiterate that Manoel Island, the only lung in the polluted and congested Tas-Sliema and Gżira area, should be turned into a national park for the enjoyment of one and all.”

However, a Midi spokesman Graham A Fairclough said: “The Deed includes an Outline Development Permit clearly setting out the parameters of the development and specifies the extent of development permitted including a mix of low rise residential and commercial development, marina, restoration, dredging, land reclamation and infrastructural obligations.

“The company is fully committed to the restoration and rehabilitation of the heritage buildings on Manoel Island and the extensive provision of space for leisure and heritage walks and events. As such, the masterplan, in line with the Deed, envisages that 62% of Manoel Island is to be dedicated to public open spaces (including the creation of an 80,000‐square metre park), 20% of Manoel Island is to be dedicated to heritage buildings and 18% of Manoel Island is to be dedicated to new buildings. The foreshore will be fully accessible to the public and swimmers.”

The agreement demands that development must be completed by March 2023. Otherwise, the consortium will be fined daily for 3 years until the contract gets cancelled.

During the annual meeting of the Association of British Bookmakers (ABB), former culture secretary MP John Whittingdale warned betting shop operators to be alerted. Due to the recent government’s review on gaming machines, they are likely to face significant changes. Following the announcement by UK’s Gambling Commission stating that fixed odds betting terminals (FOBTs) could […]

During the annual meeting of the Association of British Bookmakers (ABB), former culture secretary MP John Whittingdale warned betting shop operators to be alerted. Due to the recent government’s review on gaming machines, they are likely to face significant changes.
Following the announcement by UK’s Gambling Commission stating that fixed odds betting terminals (FOBTs) could be harmful to players, the UK government is especially focused on controlling their operation. Parliamentary inquiry on gaming activity could lead to limitation by new laws and lower minimum bets established.

In 2015 a regulation on fixed odds betting terminals (FOBTs) was introduced. It established £50 as the maximum stake per spin a player can bet before being controlled by operators. However, last month an assessment was issued proving that the measure is not delivering expected results.
“Given all of that I would have to say I do think there will be proposals for significant change. I can’t say I would be surprised if there are quite radical measures produced when we come to it and I think you should brace yourself” – commented John Whittingdale on the possible change. Despite his predictions, he said he believes that a tighter control on FOBTs will not solve the problems of the industry.

“Does it simply seek to shift the issue of problem gambling or work with the industry to solve it? A stake cut will drive problem gamblers into other forms of gambling – in casinos or amusement arcades, or worse the illegal gambling sector with all the attendant links to money laundering and illegal money lenders” said Whittingdale.

ABB chief executive Malcolm George believes that a cut in stakes would damage the horse and greyhound racing industries. According to his research results, if implemented, by 2020 a £2 stake could result in more than £290 million loss from horseracing.

“The ABB stands ready to engage with all interested parties in government and the broader stakeholders in our industry. The next few months will be critical, not just for betting shops, our shop colleagues and customers, but also for horse and greyhound racing and the whole eco-system that exists around shops. With our members’ support, I believe we can secure the future of betting shops for many years to come,” Malcolm George commented on the issue.

The Australian Senate has passed the Gambling Amendment Bill 2016 which placed a ban on internet poker and in-play sports betting. The Senate has been reviewing the proposed changes since November 2016. The main goal of this law was to close a number of regulatory loopholes. For example, some major operators have been offering in-play […]

The Australian Senate has passed the Gambling Amendment Bill 2016 which placed a ban on internet poker and in-play sports betting.

The Senate has been reviewing the proposed changes since November 2016. The main goal of this law was to close a number of regulatory loopholes. For example, some major operators have been offering in-play betting over the telephone rather than online.

It is expected that such move will encourage main gambling companies to leave the country. Until now, operators Vera&John and 888Poker have already ceased their operations and it is likely that Pokerstars is soon to follow.

Industry experts believe that customers wishing to continue playing poker online will turn to unauthorised websites.

Liberal Democrats Senator David Leyonhjelm, who openly announced his opposition to the amendments, was quoted by HuffPost Australia stating that such changes are “stupid”.

“It’s stupid; if you want to play poker, there are lots of opportunities in Australia, at casinos and tournaments. It’s not as if there isn’t a great deal of poker playing already, but they’re just stopping it online. The whole world is online now” Senator Leyonhjelm said.

“The original 2001 law was meant to stop online gambling of many kinds, but it didn’t, there was a loophole. There is quite an active online poker community in Australia. I don’t think it will succeed for those really determined. If you have a [virtual private network] or offshore account, you will still play. It’s a stupid situation to be in.”

“It will promote the black market. There are ways to circumvent these prohibition approaches. People will gamble using foreign providers by various means. They will be in the hands of sometimes shady providers, and if they get ripped off, they will have no recourse” Leyonhjelm commented on the decision.

Despite the heavy criticism from the European Commission (EC), Germany approved a new federal gambling treaty. Industry experts believe that this move could lead to an expansion of Germany’s sports betting market. The leaders of 16 states of Germany voted to approve the new State Treaty on Gambling. It lifts the previous treaty’s controversial cap […]

Despite the heavy criticism from the European Commission (EC), Germany approved a new federal gambling treaty. Industry experts believe that this move could lead to an expansion of Germany’s sports betting market.

The leaders of 16 states of Germany voted to approve the new State Treaty on Gambling. It lifts the previous treaty’s controversial cap on the number of available sports betting licences. Further, the treaty aims to increase enforcement against unauthorised operators and allows the future possibility of legalising online casino gambling activity.

The treaty, which will take effect on January 2018, must still be ratified by each individual German state. It was reported that politicians of the northern state of Schleswig-Holstein have already advised that the treaty is unlikely to be approved, even though the state has a long tradition of supporting online gambling.

Earlier this month EC expressed their criticism stating that the treaty was “not a viable solution” to the problems highlighted in the failed 2012 treaty.

The German Sports Betting Association (DSWV) said the vote was a “small step in the right direction”, but the new regulations are “not yet suitable for creating an attractive legal offering” that will convince German punters to support local betting sites.

In the meantime, Mybet commented: “As a member of the DSWV the company supports the offer by the association to start a dialogue with politicians to develop a mutually satisfactory sustainable solution.”

China issued draft rules that, if enacted, would require exchanges to identify their clients. The People’s Bank of China (PBoC) circulated new guidelines to regulate the country’s Bitcoin industry. The new rules would subject domestic bitcoin exchanges to current banking and anti-money laundering laws. According to the document, Chinese Bitcoin trading platforms would also have […]

China issued draft rules that, if enacted, would require exchanges to identify their clients.

The People’s Bank of China (PBoC) circulated new guidelines to regulate the country’s Bitcoin industry. The new rules would subject domestic bitcoin exchanges to current banking and anti-money laundering laws. According to the document, Chinese Bitcoin trading platforms would also have to collect and identify clients’ information. Further, in order to avoid market manipulation there is a plan to impose the transaction fees.

Exchanges will be required to install special systems that will collect customer information. Suspicious activity will be reported to responsible authorities and PBoC will be in charge of handling such cases.

PBoC distributed the draft rules to the major exchanges and is now seeking their feedback for revision.

The director of PBoC’s Business Administration division Zhou Xuedong recently said that authorities need to explore “long-term regulatory mechanisms” for all digital currency exchanges in the country. He also advised to create a blacklist of exchanges that do not follow set directives.

“A certain level of regulations on Bitcoin trading platforms are indeed necessary,” Zhou Xuedong commented. “Without the regulations, bubbles will be amplified by speculation, so I recommend some red lines should not be crossed.”

However, market insiders pointed out that stricter rules of bitcoin trading may force traders of bitcoin to find alternative platforms, possibly out of the country and at the same time keep the bitcoin price even higher.

“When exchanges lock up most part of the bitcoin stocks, and thus reduce the supply of the currency on the regular market, people may see an even more expensive bitcoin due to investors could go to grey markets for transaction,” an executive of a Beijing-based bitcoin exchange was quoted by Shanghai Daily.

EU Parliament members have published new draft legislation, seeking to regulate digital currencies. The proposal is deliberating to extend the scope of the Anti-Money Laundering Directive (AMLD) and include the virtual currencies like bitcoin. The existing AMLD, published in May 2015, does not include coverage on such currencies. The draft law could possibly end the […]

EU Parliament members have published new draft legislation, seeking to regulate digital currencies. The proposal is deliberating to extend the scope of the Anti-Money Laundering Directive (AMLD) and include the virtual currencies like bitcoin. The existing AMLD, published in May 2015, does not include coverage on such currencies. The draft law could possibly end the anonymity of cryptocurrency users.

The proposal states that “competent authorities should be able to monitor the use of virtual currencies,” while anonymity would be a “hindrance than an asset for virtual currencies” especially when used for criminal purposes. If approved, the draft law will empower financial watchdogs from EU member countries to identify users by their bitcoin addresses.

“To combat the risks related to the anonymity, national Financial Intelligence Units (FIUs) should be able to associate virtual currency addresses to the identity of the owner of virtual currencies,” says the proposal. “In addition, the possibility to allow users to self-declare to designated authorities on a voluntary basis should be further assessed.”

However, the attempts to end the anonymity of cryptocurrency are not seen for the first time. Last year, the European Union Commission proposed an idea to create a central database that would store records of virtual currency users’ identities and wallet addresses. The database was planned to be accessible to financial intelligence units of EU member countries. According to the same proposal, virtual currency exchanges were required to report who and when used their serviced.

It’s clear that both proposals initiated by EU aim to address the issue of governments oversighting unlawful financial tactics conducted by terror groups. Further, it would solve the problem of “avoiding unnecessary obstacles to the functioning of payments and financial markets for ordinary, law-abiding citizens and businesses.”

If cryptocurrencies are included in the new AMLD directives, bitcoin exchanges will lose their bestselling feature – anonymous transactions.