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Compliance Updates

Spain forms new regulatory board to manage the surging online gaming sector

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Spain has appointed an advisory board comprising industry experts in the gaming industry with the aim of formulating the country’s responsible gaming strategy.

Spain’s official regulatory body, the Dirección General de Ordenación del Juego (DGOJ), has established the Consejo Asesor del Juego Responsible (CAJR), which would support the regulator in the development, execution and overall management of policies related to responsible online gaming across Spain.

This November, 25 new members joined the board including representatives from top gaming suppliers Playtech, Tómbola and the European online casino platform, Paf. Alberto Eljarrat, the CEO of sports betting specialists Sportium, and Maria José Gallardo, vice president of the software company R. Franco, are some of the latest members appointed, along with Francisco Feijoo, acting legal counsel for the Luckia Gaming Group. The board has representatives from various fields including psychology, social health and welfare as well as consumer rights. Juan Espinosa García, the current president of the DGOJ regulatory body, is chair of the board.

Online gaming revenue increased by 30 per cent in Spain, year-on-year for Q3 when compared to 2017, totalling €181.8 million at the end of September 2018. The most revenue comes from the sports betting and online casino verticals which many expect to reach a global value of over $74 billion (USD) by the end of 2023.

As per DGOJ, July-September revenues for the casino vertical increased 39.2 per cent to €60.8 million. Player spending within this vertical was also at an all-time high of €2.1 billion with an increase of 35.6 per cent from 2017. The new online poker shared liquidity pool with France and Portugal that Spain established in January of this year also benefited the industry, generating a 35.1 per cent revenue increase to €19.8 million.

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Compliance Updates

Snooker Player Mark King Banned for 5 Years for Fixing Match and Providing Inside Information

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English snooker player Mark King was handed a five-year ban on Friday after being found guilty of match-fixing and providing inside information in the latest corruption scandal to blight the sport.

The punishment for the 50-year-old King, who reached a career-high ranking of No. 11 in 2003, related to a match against Joe Perry at the Welsh Open played on Feb. 13 last year that was flagged following suspicious betting patterns.

King was suspended by snooker’s world governing body a month later and an independent disciplinary commission has ruled that he fixed the result of the match, while giving information to others about that match for betting purposes. He had denied the charges.

His ban ends after March 17, 2028, and King was also ordered to pay more than 68,000 pounds ($86,000) in costs.

“I have known Mark King since he was very young, he is a very experienced player who has enjoyed great success, and I am deeply saddened to read the finding in this case,” said Jason Ferguson, a former player who is now chairman of the World Professional Billiards and Snooker Association. “However, the integrity of this sport will always be our No. 1 priority.”

King had also been charged with fixing the outcome of a match against John Higgins played on Dec. 13, 2022, and for providing inside information on it. Those charges were dismissed.

The governing body said Perry and Higgins were not accused of any misconduct related to the case.

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Compliance Updates

Spillemyndigheden Calls Attention to FATF’s Updated Lists of High-risk Jurisdictions

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The Danish Gambling Authority has called attention to FATF’s (Financial Action Task Force) updated lists of high-risk jurisdictions: the Grey List (jurisdictions under increased monitoring) and Black List (call for actions). Among other things, gambling operators must include FATF’s lists of high-risk jurisdictions when risk assessing players.

Jurisdictions listed on the Grey List are Algeria, Angola, Bulgaria, Burkina Faso, Cameroon, the Ivory Coast, Croatia, DR Congo, Haiti, Kenya, Lebanon, Mali, Monaco, Mozambique, Namibia, Nigeria, the Philippines, South Africa, South Sudan, Syria, Tanzania, Venezuela, Vietnam and Yemen.

Jurisdictions listed on the Black List are Democratic People’s Republic of Korea, Iran and Myanmar.

Gambling operators are required to conduct enhanced customer due diligence (EDD) pursuant to section 17(1) of the Danish AML Act, if a player is assessed to impose a higher risk of the gambling operator being misused for money laundering or terrorist financing.

Gambling operators shall conduct this risk assessment based on Annex 3 to the AML Act (high-risk factors) which includes the FATF high-risk country lists (the so called black list and grey list).

It is not required that gambling operators perform EDD if a country is listed on the FATF’s list. EDD are only a requirement for players from jurisdictions listed in the EU Regulation of High Risk Third Country list pursuant to 17(2) of the AML Act.

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Africa

South Africa: Tribunal Grants Lottoland Interim Relief – Orders Google to Grant Lottoland Access to its Advertising Platform

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The Competition Tribunal (“Tribunal”) has issued an interim order directing Google Ireland Ltd and Google South Africa (Pty) Ltd (collectively, “Google”) to permit Lottoland South Africa (Pty) Ltd (“Lottoland”) to access its advertising services known as “Google Ads”, for so long as Google permits any firm in South Africa to utilise Google’s Ads Services to advertise fixed-odds betting on the outcome of lotteries. The Tribunal’s order applies for a period of six months from its date, or the conclusion of a hearing into the prohibited practices alleged by Lottoland, whichever is the earlier.

This platform enables advertisers to display ads to users who utilise Google search, with Google Ireland acting as the service provider for Google Ads in South Africa.

The Tribunal’s order follows an interim relief application by Lottoland, a licensed bookmaker, which, inter alia, offers fixed-odds bets on the outcome of various lotteries around the world, including the South African national lottery, sporting events and other betting contingencies. Lottoland competes with other licensed bookmakers in South Africa such as Hollywood Bets, World Sports Betting, Betway, Betfred (which owns Lottostar) and Netbet (which trades as Sportingbet).

In summary, Lottoland alleged that Google terminated its access to Google Ads without justification while allowing access to its competitors, causing it financial harm and distorting competition in the market that Lottoland operates in, to the detriment of consumers.

Google contended that Lottoland’s offering of fixed-odds bets on the outcome of the national lottery in South Africa contravenes sections 57(1) and 57(2)(g) of the Lotteries Act. It submitted that in terms of its online advertising policies, which are designed to protect users, restrictions are placed on the promotion of certain gambling activities. Of particular relevance, the promotion of lotteries is limited to state-licensed entities and that this restriction is in place to ensure compliance with the provisions of the Lotteries Act.

Reasons for Decision

A non-confidential version of the Tribunal’s reasons will be published in due course once any confidentiality claims in relation to the reasons have been finalised with the parties involved. In deciding the matter, the Tribunal considered the following three factors holistically, balancing each factor against the other to determine what is reasonable and just:

• Evidence relating to the alleged prohibited practice;

• The need to prevent serious or irreparable damage to the applicant (Lottoland); and

• The balance of convenience.

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