MPs’ FOBT report in breach of parliamentary standards rules

The UK Parliamentary Commissioner for Standards, Kathryn Hudson, found that the Fixed-odds Betting Terminals (FOBT) report of the All-Party Parliamentary Group (APPG) has breached parliamentary standards. The FOBT report has been published in January, where four breaches have been highlighted by Hudson and prooved that the breaches were “all at the less serious end of […]

The UK Parliamentary Commissioner for Standards, Kathryn Hudson, found that the Fixed-odds Betting Terminals (FOBT) report of the All-Party Parliamentary Group (APPG) has breached parliamentary standards.

The FOBT report has been published in January, where four breaches have been highlighted by Hudson and prooved that the breaches were “all at the less serious end of the spectrum”. According to the report, the maximum stake to the FOBTs should be reduced from 100 to 2 GBP per spin.

The Association of British Bookmakers (ABB) praised Hudson’s decision and Malcolm George, ABB chief executive, said:
“We are delighted the Standards Commissioner recognised four clear breaches of the rules and upheld our complaint.”
“This small and unrepresentative group of anti-FOBT MPs failed to make it clear they were funded by vested interests, including commercial rivals of high-street bookmakers.”
“The MPs’ report has been exposed as a shambolic, shoddy and one-sided piece of work that has broken a long list of parliamentary rules.”

A review by the government will take place this month. Stay up to date with our Blog for this article’s updates.

BGO fined by the UKGC for ad failings

The first financial penalty has been issued on Tuesday, by the UKGC (United Kingdom Gambling Commission) to BGO for advertising failings on its website. The UKGC issued the £300K fine to the online gambling operator for “misleading advertisements” for 9 adverts on its own website and 14 more ads on its affiliates’ websites. As per […]

The first financial penalty has been issued on Tuesday, by the UKGC (United Kingdom Gambling Commission) to BGO for advertising failings on its website.

The UKGC issued the £300K fine to the online gambling operator for “misleading advertisements” for 9 adverts on its own website and 14 more ads on its affiliates’ websites.

As per the UKGC, the promotions were deemed to have breached social responsibility codes. It’s been since 2015, when the UKGC began probing BGO’s marketing about the misleading advertisements but the gambling operator did not take a “timely and effective action” as per the regulator.

UKGC program director Paul Hope said: “We have made it clear to the industry that misleading advertising is a serious issue; we have powers to tackle it, including the power to impose financial penalties such as this.
“We want operators to take note that the issues identified in the decision notice are likely to form the basis for future compliance assessments and could lead to enforcement action.”

UKGC Decision notice for BGO Entertainment Limited > Click here to download/view the corresponding announcement in PDF format.

Cyprus finalises casino evaluation process

Cyprus is now waiting for the authorisation process to be completed. Once it’s done, the construction of the casino that will be operated by a Melco-Hard Rock consortium will start. Cyprus Mail reported, that the news of the evaluation process being finalised, were announced by Tourism Minister Giorgos Lakkotrypis during the opening of the 20th […]

Cyprus is now waiting for the authorisation process to be completed. Once it’s done, the construction of the casino that will be operated by a Melco-Hard Rock consortium will start.

Cyprus Mail reported, that the news of the evaluation process being finalised, were announced by Tourism Minister Giorgos Lakkotrypis during the opening of the 20th travel and tourism exhibition Taxidi 2017. According to him, Cyprus is trying to boost the tourism industry and the government is seeking to accommodate the whole system to be ready for an increased number of tourists.

“Our ultimate goal, through well thought out and coordinated actions, is to enhance the quality and diversify our tourism product. To this end, we continue to enrich our experience, for example by promoting investments in major projects such as golf courses, marinas and the integrated casino resort,” Lakkotrypis said.

The whole casino process started last year. Now the country is at the final stage of having its first casino resort. Melco-Hard Rock consortium won the licence last November after competing with Cambodia’s NagaCorp, and Philippine operator Bloomberry Resorts in the licensing process.

Once the contracts are signed by the consortium, the National Gaming and Casino Supervision Commission will be allowed to issue the operating licences. The licence will allow Melco-Hard Rock to exclusively operate the resort for 15 years before the possibility of another casino resort being allowed. Melco-Hard Rock will be able to operate a gambling facility for 30 years.

It is reported that the consortium will be investing circa €500 million in its Cyprus casino project. The company is expected to open small venues later on this year while the resort is being constructed.

Russia targets VPN providers for allowing access to government’s website blacklist

Russia has requested VPN (virtual private networks) services to stop providing access to blocked domains. Russia’s telecom watchdog Roskomnadzor has urged VPN services to ensure stricter conditions of access to international websites, including online gaming platforms. Such move can only mean further limitation on iGaming industry development. Following a nationwide plan to fight against gaming […]

Russia has requested VPN (virtual private networks) services to stop providing access to blocked domains. Russia’s telecom watchdog Roskomnadzor has urged VPN services to ensure stricter conditions of access to international websites, including online gaming platforms. Such move can only mean further limitation on iGaming industry development.

Following a nationwide plan to fight against gaming industry, the Government of Russia created a blacklist of online operators. Further moves included set plans to block online payment services. All of these steps were introduced as the way to fight against illegal casino operations through internet offerings.

Even though VPN services are not illegal in Russia yet, it is expected that in the near future they will be completely banned. Online companies are worried that by government’s involvement in these internet sectors will result in disrupted free access to websites in general. Further, the new legislations are being prepared in order to expand the power of Roskomnadzor. And that would most likely jeopardise the operations of technology and communication companies.

The new financial penalties are being introduced for search engines that fail to filter blacklisted domains from search results. The fines reach up to RUB 700k (US $12,500) per incident. However, a representative of Yandex search engine referred to this proposal as being “superfluous“. He said that, even if a search query returns a blacklisted domain, the user’s internet service provider is supposed to be preventing access to such sites.

Finland wants to keep state-run gambling

Nordic countries have become attractive to international gambling companies. Finland, in particular, is said to be one of the biggest and most thriving European gambling markets. However, unlike many other jurisdictions in Europe, this country chooses to keep its monopoly regulatory system. It is also unlikely that this scenario will change in the near future. […]

Nordic countries have become attractive to international gambling companies. Finland, in particular, is said to be one of the biggest and most thriving European gambling markets. However, unlike many other jurisdictions in Europe, this country chooses to keep its monopoly regulatory system. It is also unlikely that this scenario will change in the near future.

Finnish media outlet Yle recently funded a report compiled by a market research company Taloustutkimus. It showed that almost 70% of people in Finland want the government to keep its monopoly on gambling. Yle reports that that group of people comprised mainly of older population of Finland. Younger people, on the other hand, were more open to accept a new licensing system that would allow international gambling companies to operate in a regulated environment.

Up until recently, gambling activities in the country were managed by three state-run organisations: Veikkaus Oy (betting and lottery), Fintoto Oy (pari-mutuel betting) and RAY (casino offering). Earlier this year, all these three were merged into one state-run monopoly called Veikkaus.

Back in the early 2010s, the European Commission requested Finland to implement some changes in order to comply with the EU law. At that time the country decided to make changes in the monopoly system rather than removing it at all. Such decision was approved by EU officials as it did not violate the European trade agreement.

According to Yle, Finns wager over €10 billion yearly on different gambling products, both online and in land casinos. Further, H2 Gambling Capital provided a chart which showed that Finnish players spent an estimated total of $2.2 billion in the industry in 2016. Based on these numbers, Finns were ranked as the most active gamblers. Finnish players are mostly attracted to online gambling and gaming machines.

Brazil might become the largest regulated gambling territory

Latin America has been drawing attention as a region where gambling may be an undoubtedly profitable industry. There are more and more discussions about how to adopt gambling friendly regulations and open the market to operators and developers from around the world. Brazil is emerging as a country where legislators seem to have recognised the […]

Latin America has been drawing attention as a region where gambling may be an undoubtedly profitable industry. There are more and more discussions about how to adopt gambling friendly regulations and open the market to operators and developers from around the world.

Brazil is emerging as a country where legislators seem to have recognised the importance and usefulness of a regulated gambling environment. Currently, gambling in Brazil is not considered to be legal. However, for almost a quarter of a century now lawmakers in the country have been trying to legalise some forms of gambling. Further, they are working on establishing gambling law and regulatory framework so the ban would be eliminated entirely.

Both chambers of Brazil’s bicameral legislative association (the National Congress) have been discussing legislative proposals that would help legalise various forms of gambling, such as sports betting and online betting within the borders of the country.

Brazil has been described as the “sleeping giant” because of its high potential of becoming one of the biggest regulated markets in the world. However, despite of gambling being illegal, the country is already big on it. According to Brazilian Legal Gaming Institute reports, gambling generates almost R$20 billion every year.

If all the chambers of the National Congress in Brazil pass the PLS 186/2014, the bill will create the regulatory framework for the operation, taxation, and regulation of gambling in Brazil. Further, such framework would also enable responsible bodies to combat corruption and money laundering.

If the proposed bill is passed, Brazil could become the biggest regulated gambling field in the world.

Russia moves forward with a plan to block online gambling payments

Russian Duma received recommendations from country’s legislative committee to approve measures targeted to disrupt payment processing with unauthorised online gambling sites. A few months ago Russia proposed a legislation which set out regulations requiring banks and payment processors to block transactions between punters in the country and international operators. Now the State Duma Committee on […]

Russian Duma received recommendations from country’s legislative committee to approve measures targeted to disrupt payment processing with unauthorised online gambling sites.

A few months ago Russia proposed a legislation which set out regulations requiring banks and payment processors to block transactions between punters in the country and international operators. Now the State Duma Committee on Budget and Taxes recommended the approval of the draft federal law 108659-7.

Such steps are part of country‘s ongoing effort to stop the collaboration between Russian punters and internationally licensed online gambling sites. Internet service providers that fail to block gambling sites flagged by local authorities face high fines.

According to the new draft law, all the payment processors and any other financial agents who disregard the ban on unauthorised financial transfers will be included in the blacklist and will face consequences accordingly.

Online bookmakers licensed in the country are required to process all their payments through centralised hubs called TSUPIS.

Ukraine promised to legalise gambling industry by 2018

The government of Ukraine announced its intentions to introduce legalised gambling industry, boost the local economy and start earning from revenue by next year. The Ministry officials sent a letter to the International Monetary Fund (IMF) to detail the new plan. Ukraine is trying to assure IMF that the country is worthy to receive a […]

The government of Ukraine announced its intentions to introduce legalised gambling industry, boost the local economy and start earning from revenue by next year.

The Ministry officials sent a letter to the International Monetary Fund (IMF) to detail the new plan. Ukraine is trying to assure IMF that the country is worthy to receive a financial assistance worth $17.5 billion, needed to reform the economy.

Ukraine has already received $1 billion last week, but following a review on the condition of the country’s economy, the IMF warned that it “must break the legacy of weak governance and stop-and-go reforms” in order to generate sustainable growth.

All gambling and betting serviced were prohibited in Ukraine in 2009. Back in 2015 Ukraine tried to authorise gambling in the country. A draft legislation was introduced which proposed opening the market to land-based casinos, sports betting and online gaming. However, legalisation of such activities is yet to take place.

It is estimated that legalised gambling market, the ability to tax gambling activities could bring to Ukraine an additional $1.5 billion per year. It is still not clear what kind of gambling forms Ukraine plans to legalise by next year.

In the meantime, transformation of Ukraine’s annexed Crimea peninsular into a ‘gambling zone’ for Russia is moving forward.

The new zone, according to Crimean Prime Minister Sergey Aksyonov, is designed to avoid international economic sanctions imposed on Russia after it seized control of the territory.

“There are certain arrangements that will make it possible [for investors] to bypass the sanctions,” Aksyonov commented. “I will keep quiet about such secrets for now; nobody will agree to invest in this project if there were doubts this plan might not work.”

UK Gambling Commission launches new business plan

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.’’

eSCon Europe 2017: eSports community gathered in London

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.

Japan task force seeks to map casino rules

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.

Sweden is planning to end online gambling monopoly

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.