Compliance Updates
Regulated markets and responsible gambling are inseparable
Working in regulated markets means operators must implement responsible gambling and social responsibility measures across the board and regardless of the cost, says Pavlos Sideris, director of Double Up Media.
In recent years gambling jurisdictions, both new and old, have significantly increased their responsible gambling regulations and frameworks; even Curaçao recently announced plans to reform its gambling legislation to include player safety guidelines for its operators.
Joking aside, from stake limits to betting budgets, reality checks and self-exclusion tools, the level of responsible gambling education, investment and, in some cases, mandatory account limits are now far-reaching in the major regulated markets.
The proponents of responsible gambling rightly recognise the harms that gambling can cause, the social responsibility operators must embody and the need for consumers to be protected from potential harmful exposure to gambling.
In fairness, the biggest UK operators have already implemented affordability checks and other responsible gambling measures and these are already impacting their revenues. But when the White Paper on UK gambling reform does get published and its recommendations are eventually signed into law, all UK-licensed operators will have to abide by the new legislation.
Stories and individual cases of problem gambling are inherently emotional, which has led, in some cases, to the sensationalisation of the issue by parts of the UK press. Those stories have also increased government and public attention, even though the current UK problem gambling rate has been relatively stable, according to the latest data from the Gambling Commission.
Critical regulation
The UK market is one of the most regulated gambling markets globally, and as in most other major gambling jurisdictions, responsible gambling is recognised as a critical aspect of regulation, inseparable through design. For the most part, operators are managed through a system of audits and fines.
However, many of the largest operators also flout their own self-proclaimed rules and statements of intent when it comes to responsible gambling, fighting money laundering or simply protecting potentially vulnerable players.
The list of UK operators that have been fined by the Gambling Commission (UKGC) is a lengthy one and includes many of the biggest operators in the country, such as Entain, which received a record-breaking £17m penalty in August 2022.
The list of infringements included serious failures in the group’s social responsibility duties. UKGC said the operator was slow to interact with players who were potentially experiencing gambling harms and cited instances of Entain allowing one player to spend £230,000 with only a single safer gambling interaction. It also allowed self-excluded players to join other Entain sites working under different brands.
To show how serious it was, the Entain case led the UKGC to state that it would not hesitate to call for the group’s licence to be revoked if similar failings were discovered at the group in the future.
“This is the second time this operator has fallen foul of rules in place to make gambling safer and crime free. They should be aware that we will be monitoring them very carefully and further serious breaches will make the removal of their licence to operate a very real possibility. We expect better and consumers deserve better,” sais UKGC.
Financial pressures
It’s important to point out that other big corporations have also been fined for serious RG and CSR failings, 888 and Betfred among them.
The UKGC is, in most cases, reactive to the market and, due to the nature of the activities it investigates, takes a long time to issue its decisions. But when major problems are highlighted, such as operators being slow to engage with customers showing high-risk behaviours, the Commission reacts, thus exposing a circular relationship between the regulated market and responsible gambling.
What it also shows is that financial pressures are relevant to even the biggest groups and they will look the other way when significant amounts of revenue are at play. Indeed, while UKGC shines a spotlight on the biggest operators, it is widely accepted that RG failures are commonplace among smaller groups.
Despite many regulated slot sites in the UK taking social responsibility and player commitments seriously, it is not always the case as many weigh up not adhering to regulations against profitability.
Inseparable
Speaking at the SBC Summit held in September in Barcelona, Maarten Haijer, Secretary General of the European Gaming and Betting Association (EGBA), highlighted the current stakeholder standpoint when he said: “I feel that whatever the percentage of gambling harm is, the focus of the operator should be safer-gambling policies and to deal with that percentage of people in a much more engaging and productive way. So I think we should let go of this idea that the percentage is relevant as an operator. Those are the operators who have a future in regulated markets.”
The debate currently is focused on ensuring new gambling regulations do not impinge too much on operators’ ability to generate profits because greater responsible gambling regulations impact businesses negatively and from a traditional accounting perspective increase costs and lower revenue.
For the UK, gambling reforms are clearly on the way and only the timing is uncertain. But with affordability checks, further know-your-customer checks, restrictions on bonusing and promotions-buy, the industry is trying to strike a careful balance between keeping players safe, not over-regulating and being able to generate profits.
In addition, a recent report by PwC highlights the link between overbearing regulations and the growth of the offshore, unrelated operators. The fact that the report’s findings coincide with the arguments with those of the gambling industry is one factor we should always be mindful of, but the need for balance and regulatory proportionality should not be dismissed either.
Still, in the modern age of internet gambling, it’s not possible to separate regulated markets and responsible gambling. The fact that operators are fined when they break the rules shows that regulation works, even if it is reactionary, or post the event. Hence, come what may, operators will be left with the choice of bearing the costs of increased regulation or leaving regulated markets altogether.
Compliance Updates
MGA Marks Safer Gambling Week by Hosting Focus Group on Addressing Problem Gambling
As part of Safer Gambling Week, the Malta Gaming Authority (MGA) has launched the first in a series of focus groups aimed at addressing problem gambling and its effects on Maltese communities.
Bringing together key stakeholders such as Caritas Malta, Aġenzija Sedqa, the OASI Foundation and the Responsible Gaming Foundation, the session explored a self-assessment tool that the Authority is currently developing, grounded in recent research and industry trends.
The self-assessment tool, which will be available both in English and in Maltese, will guide individuals through a set of questions to help them identify whether gambling is causing harm in their lives. Based on the user’s responses, the tool will provide personalised recommendations and direct them to appropriate support services.
With invaluable input from organisations experienced in supporting individuals affected by problem gambling, the tool will undergo further refinement to maximise its effectiveness and relevance.
Clinical Chair at Aġenzija Sedqa, Anna Maria Vella, hailed the focus group as a “welcome initiative” which brought together a multidisciplinary team of experts.
“Working together and not in silos is always beneficial. We learn from each other to be more effective.”
Louis Bellizzi, Secretary of Caritas’ Foundation for Victims of Usury, said: “The MGA is in a unique position to coordinate the national effort to help alleviate the scourge of gambling addictions.”
In recent years, the Authority has taken significant steps to promote safer gambling practices, ranging from regular supervisory reviews on responsible gambling to enforcing stricter regulations.
The MGA closely monitors operators’ implementation of behavioural monitoring systems, self-exclusion systems and responsible marketing practices.
With a focus on high-risk areas, the Authority is refining its supervisory approach to be more dynamic and data-driven, ensuring responsible gambling practices are maintained and continuously improved to protect players effectively.
The MGA’s efforts align closely with the European Gaming and Betting Association (EGBA)’s initiative to establish a unified European standard for identifying markers of harm. The MGA is actively engaged in this initiative, working closely with fellow regulators and industry experts to create a comprehensive standard aimed at early identification of behaviours indicative of problem gambling.
The Authority’s proactive involvement in such initiatives underscores its dedication to fostering a responsible and transparent gaming sector, both locally and across Europe.
Balkans
Serbia’s ZLF Urges Total Ban on Gambling Ads
Serbia’s Zeleno-Levi Front (ZLF/Green-Left Front), a local green political party, is advocating for a total ban on gambling ads in the country. According to its representatives, banning all ads would be the most surefire way to protect the public from gambling harm.
The ZLF just organised the Games of Chance, Games with the Health of Citizens (Igre na sreću, igre sa zdravljem građana) forum, scrutinising the gaming industry and its negative consequences. During the forum, representatives slammed the government’s recent proposal to limit gambling ads, saying that this wouldn’t be enough.
For context, the government recently proposed a ban on gambling ads featuring prominent celebrities, mirroring similar measures in other regulated markets. For context, Serbian law currently allows professional athletes to advertise betting products, to safer gambling advocates’ dismay.
The ZLF, however, believes that its total ban would be the most effective way to minimise potential harm. During the forum, National Assembly member Biljana Đorđević noted that the ZLF had submitted a ban proposal in March but regretted that the government had not responded to the proposal or discussed the matter.
Đorđević suggested that Minister of Internal and External Trade Tomislav Momirović has been avoiding the discussion. Momirović, for context, has previously suggested reducing the visibility of gambling ads by prohibiting ads on billboards on busier roads and streets.
Echoing arguments and concerns raised in other regulated markets, Đorđević said that having celebrities promote gambling exposed children to potential danger. Since younger audiences are more easily affected by marketing, this could cause them to associate betting as a normal part of sports.
ZLF MP Marina Mijatović repeated these claims, saying that the government has so far done a bad job at protecting minors from negative exposure to gambling. While Mijatović acknowledged that Serbia cannot prohibit gambling, she noted that the ads do not need to be so eye-catching and appealing.
Compliance Updates
Lord Allen of Kensington Appointed as the new Chair of the British Horseracing Authority
Lord Allen of Kensington CBE is confirmed as the new Chair of the British Horseracing Authority.
As a highly experienced Chairman, and one of the most prominent business leaders of his generation, Lord Allen brings a wealth of experience to the role including in the financial and commercial sectors, Government, broadcast, international companies and global sports events.
He is due to assume his post on 1 June 2025 and will work closely with current Chair Joe Saumarez Smith in the months ahead of taking up the role to ensure a smooth transition.
Lord Allen is currently Chairman and Trustee of the Invictus Games Foundation and was Chairman of the Manchester Commonwealth Games in 2000-2003 for which he was awarded a CBE.
He oversaw London’s bid for the 2012 Olympics and was Board Director on the Organising Committee. His ability to deliver critical projects that made the Games such a success saw him knighted in 2012.
He was a Chief Adviser to the Home Office from 2006 to 2008. In 2012, he was appointed by Ed Miliband to the position of Chairman of the Management Board of the Labour Party. In 2013 he was made a Life Peer, taking the title Baron Allen of Kensington.
Lord Allen began a distinguished career in broadcasting and media with Granada TV in 1991 before going on to have senior roles in leading companies in the sector including EMI, Virgin Media and Endemol. He is currently Chairman of Global Media and Entertainment Limited.
He is currently Advisory Chairman to global independent investment bank Moelis & Company, Chairman of multinational infrastructure group Balfour Beatty PLC, and Chairman of e-commerce retailer THG (formerly The Hut Group).
Lord Allen said: “I am honoured to be appointed to the role of Chair of the British Horseracing Authority at this important time for the organisation.
“I look forward to building a strong relationship with the new CEO and the Board and all our stakeholders, delivering the vision of building the commercial and reputational aspects of the sector.
“My love of horses stems from learning to ride as a youngster and enjoying the sport of horseracing over many years.
“My knowledge, skills and experience from various sectors, including media and entertainment, and having led many regulated and sporting organisations will hopefully stand me in good stead to bring a fresh perspective to this incredible sport.”
Chair of the BHA Nominations Committee and the BHA’s Senior Independent Director, David Jones, said: “Lord Allen is a very experienced Chairman, and I am delighted that we have appointed a candidate of such outstanding calibre.
“His record speaks for itself and his impressive leadership skills, financial and commercial acumen, broadcast experience and an understanding of Government will bring a fresh and independent perspective to the BHA’s work.
“Combined with his wealth of experience in global sporting events, Lord Allen impressed the committee with his perceptive grasp of the challenges facing racing and will be a powerful advocate for the sport.”
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