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Compliance Updates

Sweden postpones licensing process to 1 August

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The Swedish government has moved closer to establishing new igaming regulations, as it completed the submission of secondary legislation to the European Commission (EC).

According to Nordic Gambling, the legislation features rules that cover the whole spectrum of igaming, such as licensing, international cooperation, responsible gambling, supervision and fees.

The legislation also includes confirmation that although the regulations will not come into force until January 1, 2019, the licensing process will open on August 1 this year, one month later than the initial date of July 1.

Gaming operators that intend to apply for a licence will have to pay SEK400,000 (€38,800/$47,800), and should the company want to offer both online gambling and betting, this fee will be set at SEK700,000.

Other features in the legislation include the specification of games that can be offered under an online games licence, comprising roulette, card games, dice games, online bingo and slots.

Although there are no restrictions on betting on lower leagues and spot betting, with the exception of Swedish trotting and cantering races, the Lotteriinspektionen national regulatory body will have the ability to place restrictions on the type of game and introduce schemes to combat match-fixing.

The legislation also addresses rules regarding the use of personal data, as well as self-exclusion and both time and spending limits.

The move comes after the statutory standstill period set aside for review of the legislation by the EC and member states expired last month.

No detailed opinions were received against the initial draft proposal during the three-month window on whether the proposal would create unfair barriers to free movement of goods and services.

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Compliance Updates

Updated Gambling Guidelines: Why Safer Betting Is Your Best Bet

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Updated Gambling Guidelines: Why Safer Betting Is Your Best Bet
Reading Time: 5 minutes

 

It’s no secret that problem gambling is a widespread issue within the UK, with GOV.UK reporting that it has a direct financial cost equivalent cost to £412.9 million and a cost to society between £635 million and £1.3 billion. Therefore, it comes as no surprise that the UK Gambling Commission has announced much-needed updates to its regulatory framework, putting consumer protection in the gambling industry at the fore.

The UKGC’s new rules coming into effect in 2025 require online gambling operators to carry out more in-depth financial vulnerability checks and equip themselves for effortless and future-proof financial risk assessments. These changes are designed to promote safer gambling practices by enhancing consumer protection, fairness, and transparency. It is therefore crucial for gambling operators to proactively work towards preventing gambling-related harm.

Though the regulatory changes will pose some difficulties, they offer a chance to adopt more responsible practices. Fully grasping the implications of these new regulations and the wider issue of gambling addition will allow operators to navigate the shifting landscape, maintain compliance, uphold ethical standards, and foster continued customer trust.

Understanding the New Rules

The UKGC’s latest updates, introduced as part of a phased review of the Gambling Act 2005, implement key measures designed to enhance consumer safety in the online gambling industry. These regulations highlight the Commission’s continued commitment to safeguarding vulnerable individuals and mitigating gambling-related harm, particularly in the fast-expanding online sector.

There are three significant policy changes:

  1. Financial Vulnerability Assessments: Remote operators are now required to perform financial vulnerability assessments when customers spend £500 on gambling within a 30-day timeframe. These assessments utilise publicly accessible data to determine if a customer might be at risk of gambling beyond their means. The UKGC’s goal is to pinpoint financially vulnerable customers before they incur substantial harm.
  2. Frictionless Financial Risk Assessments Trials: The UKGC is testing seamless financial risk evaluations for the largest remote operators. This initiative enables operators to evaluate customers’ financial well-being without disrupting their gambling experience. The aim is to establish a system that safeguards consumers while minimising interruptions, ensuring that safety measures do not adversely affect responsible gamblers.
  3. Additional Regulations on Game Design and Advertising: Alongside financial assessments, the UKGC will implement new regulations concerning remote game design in January 2025. These guidelines aim to make games less addictive and mitigate the risk of problem gambling. Furthermore, updates to direct marketing regulations, set to take effect in May 2025, will empower customers to have increased control over the marketing communications they receive from gambling companies.

These updates clearly demonstrate the UKGC’s commitment to enhancing gambling safety by focusing on financial vulnerability, addictive game design, and excessive marketing – all key factors that are known to contribute to problem gambling. The industry must get behind the Commission and its measures to help reduce the risks faced by vulnerable players.

The Repercussions of Problem Gambling

According to the latest statistics from the Gambling Commission, 0.5% of the adult population has a problem with gambling, making it one of the UK’s most pressing issues. For individuals with gambling addictions, betting can lead to several major life issues, including financial hardship, mental health issues, and damaged relationships.

Financial vulnerability is a major factor that can aggravate gambling addiction. Whilst gambling and online gaming can appear as a quick fix for those who are already struggling financially, it can often lead to even greater debt and hardship. Therefore, UKGC’s focus on financial vulnerability is vital – it targets this issue at its roots by encouraging operators to intervene before a customer’s gambling spirals out of control.

Another factor that plays a huge role in problem gambling is game design. Fast-paced games that offer frequent wins or incorporate mechanisms such as near-misses can hinder players’ ability to quit. The new regulations on remote game design are set to address these addictive features and enhance consumer safety.

What Gambling Companies Can Do to Stop Problem Gambling

Given the UKGC’s new regulations, it’s evident that online gambling companies must adopt a proactive approach to prevent problem gambling. Merely complying with the updated rules is not enough; operators need to exceed the minimum legal standards to genuinely protect their customers, including:

  1. Enhance Financial Monitoring: The UKGC’s updated financial thresholds highlight the necessity of understanding a customer’s financial well-being. Operators should invest in tools that facilitate real-time assessments of customers’ ability to engage in gambling responsibly, intervening when needed. This includes providing resources like deposit limits and self-exclusion options to help customers manage their spending.
  2. Encourage Responsible Gambling: Operators should actively foster responsible gambling habits among their customers. This can involve regular reminders of betting limits, offering cooling-off periods, and making it easy for users to access information on safe gambling practices. Clear communication regarding the risks associated with gambling and available support services can play a crucial role in preventing harm.
  3. Create Safer Game Designs: The newly introduced regulations on game design offer an opportunity for operators to evaluate their offerings and ensure they do not promote addictive behaviours. By reducing immersion and minimizing features that encourage continuous play, operators can help prevent customers from developing gambling-related problems.
  4. Ensure Transparency in Marketing: With new direct marketing regulations set to take effect in 2025, operators must communicate transparently and respectfully with their customers. This includes allowing customers to control the marketing materials they receive and ensuring that promotional content does not encourage excessive gambling.

A ‘Safer’ Approach to Betting

With the evolving regulatory landscape, online gambling operators are tasked with finding effective strategies to meet stringent requirements while prioritising customer protection. Technology plays a key role here – yielding operators with comprehensive tools to conduct financial vulnerability assessments, evaluate gambling risks, and ensure compliance with UKGC regulations.

Through the latest technology operators can generate secure consent links to access a customer’s financial data. Once granted permission, this type of system connects to the customer’s bank, finding real-time data on their income, affordability, and gambling history. This information is analysed to provide actionable insights into a customer’s financial situation, aiding operators in meeting the £500 threshold checks and identifying at-risk customers early.

Additionally, streamlined financial risk assessments allow operators to integrate outside solutions into their platforms through intuitive APIs. This allows for thorough financial evaluations without compromising the customer experience.

In this regulatory climate, it’s imperative for gambling operators to adopt solutions that not only ensure adherence to laws but also promote responsible gambling. Technology that empowers operators to meet compliance standards, protect their customers effectively, and foster the trust that is vital for sustained growth and success.

To learn more, visit: https://www.aperidata.com/

 

About the author / spokesperson

Andrew Bonsall is COO at AperiData.

Andy’s a credit risk entrepreneur with 25 years of global experience in the banking and software industry. He has vast experience working for Tier 1 banks and global software, scoring and data providers worldwide with a particular focus on Europe, the Middle East and Africa.

Andy and Steve Ashworth (CEO of AperiData) have worked at a lot of places together and celebrate a long history of success. They know what works and what needs to change in the industry. Together they formed a special team at AperiData doing world changing things.

Prior to AperiData, Andrew co-founded 10x Consulting Ltd in 2013 while also completing a variety of Credit & Risk positions across leading brands, Lloyds Banking Group, FICO, GE Money and Bank of America.

 

About AperiData.
An industry challenger harnessing the power of Open Banking, AperiData is laser-focussed on facilitating instant, accurate and fair outcomes for consumers and financial institutions. Authorised and regulated by the Financial Conduct Authority as a Credit Reference Agency and Open Banking Provider the company is on a mission to improve financial inclusion by revolutionising credit scoring and lending processes.

Founded by risk practitioners turned serial entrepreneurs with more than 100 years of experience in global credit risk and data analytics, AperiData’s real-time risk insights empower organisations to serve their customers digitally and work to improve life outcomes.

For more information, visit: www.AperiData.com

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Australia

Drake Inquiry into Greyhound Racing NSW extended

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Due to the high volume of submissions and issues so far raised, the timeframe for the Drake Inquiry into Greyhound Racing NSW (GRNSW) to report to the Minister for Gaming and Racing, David Harris, has been extended until 30 April 2025.

This will ensure Acting Commissioner, the Hon Lea Drake, has adequate time and resources to thoroughly consider the substantial and complex information including evidence from additional witnesses, with planned hearing dates running until the end of December.

Mr Harris approved the extension following a request from Ms Drake.

The Minister has also agreed to Ms Drake’s request to expand the Inquiry’s Terms of Reference to allow for a stronger focus on GRNSW’s financial management.

The second Term of Reference now requires the Acting Commissioner to “inquire into, report on and make findings and recommendations in relation to”:

2. GRNSW processes and management, including financial management, procurement and recruitment practices, and concerns regarding any alleged or identified conflicts of interest and the management of conflicts of interest.

The Inquiry’s next hearings are listed for 1pm to 7pm on 15 and 16 October in the Fair Work Commission hearing rooms at 80 William Street, East Sydney.

Further hearings will be held from 21 October, and additional dates will be confirmed for November and December and posted on the Drake Inquiry website.

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Compliance Updates

How payments can drive iGaming operators’ growth as they navigate an evolving regulatory landscape

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How payments can drive iGaming operators’ growth as they navigate an evolving regulatory landscape
Reading Time: 3 minutes

 

With iGaming regulation changing in multiple European and Latin American markets, Paysafe’s Rory Howard considers the invaluable role of payments

By Rory Howard, GM of iGaming for EMEA, Paysafe

After enacting new gambling legislation at end-2023, Brazil is expected to launch its iGaming market on January 1st. With 215m people, Latin America’s most populated country is almost certain to rapidly become a major global jurisdiction. Annual gaming revenue is forecast to grow to $4.9bn within five years, according to Vixio.

While the new Brazilian market offers an important opportunity for operators, licensing includes significant regulations to negotiate, including around payments. With other markets also enacting or considering more robust iGaming regulation, the operators that successfully navigate this new space can make change pay.

From Sao Paulo to Sweden via the UK

In April, Brazil published an Ordinance on operators’ payment requirements, preventing players from depositing using credit cards, cash, cheques, pay slips, bank slips and cryptocurrencies. Withdrawals of winnings will only be possible via electronic transfer between the operator and the player’s bank account, which must be a financial institution authorized by the Brazilian Central Bank.

Such restrictions, especially around credit cards, are part of a broader global trend to promote responsible gambling. In neighbouring Argentina, the Buenos Aires legislature is currently considering a bill to ban credit cards and social assistance debit cards for online betting in the capital region’s regulated market.

Over in the UK, operators have not been able to offer credit card deposits since the Gambling Commission restricted this in April 2020. More recently, the UK government’s Gambling Act Review white paper, which was released in April 2023, has resulted in more robust know your customer (KYC) checks for operators, including on affordability. From August all UK bettors depositing a net £500 needed to be checked, lowered to net deposits of £125 from February.

And UK operators are also facing marketing restrictions. From summer 2026, front-of-shirt Premier League football club sponsorships will no longer be an option following the association’s voluntary ban. In addition, the government is currently considering whether bonuses should be tightened, though it appears unlikely that the UK will go as far as Brazil’s complete ban on bonusing and free bets.

The UK isn’t the only European country strengthening its iGaming regulatory framework, with Sweden only allowing operators to offer players a single sign-up bonus following the Scandinavian country’s re-regulation of the market in 2019. More recently, the Swedish gambling regulator has come out in favour of the government’s proposed ban on credit cards for iGaming from April 2025.

Playing and paying it forward

With Sweden’s eastern neighbour, Finland, looking to liberalize its government monopoly with a licensing system for private operators by early 2027, the only constant when it comes to iGaming regulation is change. While regulatory change providers operators with opportunity, they need to have a solid strategy in place.

The global regulatory space is highly complex and diverse, so it’s essential for operators to develop a robust compliance framework that covers all the different legal requirements for each global market. Against the backdrop of the responsible gambling shift, KYC protocols have never needed to be more granular, requiring automation and specialised software for the highest accuracy and efficiency.

Payments are an indispensable element in negotiating the new regulatory landscape. Every market is unique, including when it comes to payments. If a jurisdiction restricts credit cards or other payment methods, operators’ cashiers need to include alternatives such as digital wallets, eCash or even pay-by-bank options to ensure players don’t abandon a brand before they become a customer.

With markets restricting bonuses and other marketing channels like sponsorships, operators need to ensure they are getting payments right. Payments – including quick payouts and deposits and the availability of preferred payment methods – are much more important factors in players’ selection of online sportsbooks than sign-up offers and sports sponsorships, according to Paysafe’s 2024 research.

More broadly, it’s also vital for operators to choose the right payment provider. Partnering with a payments company with global experience and which offers a comprehensive range of its own and third-party payment solutions, including local payment methods (LPMs) like Brazil’s Pix, will enable operators to effortlessly tailor their cashiers to a particular market.

Whether in Brazil, Argentina, the UK, Sweden or Finland, the global iGaming market is diversifying from a regulatory perspective. While the changing space poses significant challenges, it gives savvy operators an opportunity to ensure their brands and cashiers are not only compliant but have a completive edge that will ultimately pay out.

 

Rory Howard

As General Manager for iGaming in the EMEA region at Paysafe, Rory oversees the company’s online gambling business in the U.K. and continental Europe as well as neighbouring regional markets. He has close to 20 years’ experience in payments and fraud analysis, with a strong focus on the iGaming space. Rory’s previous roles include payment leadership positions at The Rank Group, Racing Stars, Gamesys, and Eyas Gaming.

 

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