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Compliance Updates

Finnish National Police Board Issues Conditional Fine Against Betsson Over Illegal Marketing

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Finnish National Police Board Issues Conditional Fine Against Betsson Over Illegal Marketing
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Finland’s National Police Board has prohibited BML Group Ltd. from marketing its gambling services in Finland in violation of the Finnish Lotteries Act and imposed a EUR 2.4 million conditional fine to reinforce the prohibition. BML Group Ltd. is a subsidiary of Betsson AB.

The company has targeted Mainland Finland in its advertising on multiple channels and for an extensive period. The company and its subsidiaries have been presented with several opportunities to submit a statement on their views and to change their activities to comply with the views of the National Police Board. During the hearing process, the company did introduce some changes related to the marketing channels it uses for example, but the marketing targeting Mainland Finland has persisted regardless.

The National Police Board estimated that BML Group Ltd. has significant financial interest in continuing the activities and found that the illegal activities have continued for a long time regardless of the National Police Board’s previous control measures. The National Police Board has reviewed the measures undertaken by the company to reduce marketing, and they were considered a mitigating factor when the amount of the conditional fine was determined.

The prohibition imposed by the National Police Board on BML Group Ltd. applies to materials on the Group’s websites that directly or indirectly promote the sales of gambling services in Mainland Finland. The prohibition covers all marketing communications targeting consumers in Mainland Finland, having Finnish celebrities as the face of a gambling service marketing campaign in a manner that is attractive to consumers, podcasts and video podcasts targeting Mainland Finland, and articles published with the aim of directly or indirectly promoting the sales of gambling services in Mainland Finland.

The prohibition also applies to marketing of BML Group Ltd.’s services on websites other than those owned and administered by the Group in a manner that involves the Group or its representative giving financial benefits to the marketer.

To comply with the prohibition, BML Group Ltd. must refrain from publishing new sales promotion material targeting Mainland Finland on its gambling websites, remove all previously published sales promotion material from them, and refrain from marketing on other websites in the future as well.

BML Group Ltd. will be added to the list of payment blocks administered by the National Police Board when the prohibition enters into force.

If BML Group Ltd. continues to target its marketing of gambling services at Mainland Finland despite the prohibition, the National Police Board will take action to enforce the imposed conditional fine.

Compliance Updates

Warren Jacobs joins BetComply board

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Warren Jacobs joins BetComply board
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BetComply, iGaming’s most trusted technical and regulatory compliance firm, has appointed experienced entrepreneur Warren Jacobs to its board as a non-executive director.

Jacobs has served as CEO of Betable Group since 2018, and is also chairman of ActiveWin Media, where he was previously managing director for a decade. He brings with him a strong reputation for scaling businesses, and has experience working for major brands including General Motors and Betfred.

He joins at a time BetComply is rapidly expanding its range of products and services, supporting partners across more than 40 regulated jurisdictions worldwide.

“We’re delighted to have Warren join the BetComply board. He brings with him a wealth of experience from more than a decade building iGaming businesses,” said Daniel Brookes, CEO of BetComply. “We’re now more than a year into the BetComply journey. Our team has grown quickly, and we’re supporting many of the fastest-growing companies in our sector across multiple regulated jurisdictions. With the addition of Warren’s guidance, we’ll be able to provide even better service to our partners going forward.”

Warren Jacbos, non-executive director at BetComply, added: “Working in the iGaming sector for more than a decade, it became extremely clear that world-class compliance expertise was in short supply. BetComply is solving this issue, by providing the trusted technical and regulatory compliance support businesses need to thrive. I’m honoured to join the board and help build upon this vision.”

Since BetComply was founded last year, it has rapidly grown its team to more than 20 people, creating a depth of iGaming compliance expertise unmatched in the industry.

Among its recent appointments was Loes Wetzer, who joined the company as operations director in August.

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Compliance Updates

GCGRA Issues Warning Against Unlicensed Lottery and Gaming Operators

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The General Commercial Gaming Regulatory Authority (GCGRA), the federal entity overseeing commercial gaming activities in the United Arab Emirates, issued a Consumer Advisory Notice warning UAE residents of the dangers of doing business or playing with unlicensed lottery and commercial gaming operators. Under the federal laws of the UAE, only lottery and commercial gaming operators approved by the GCGRA are permitted to operate.

Consumers who choose to play or do business with an unlicensed operator face significant risks, including financial loss, becoming the victims of cheating or fraud, having their personal data stolen or misused, increasing the risk of malware, phishing, or other cybersecurity threats, and being implicated in a regulatory or criminal investigation and the subsequent reputational damage.

The GCGRA has granted the sole lottery license to The Game LLC, which operates as The UAE Lottery. This is the only lottery license permitted under the GCGRA regulatory framework.

Additionally, the Federal Law by Decree establishing the GCGRA, permits certain preexisting lottery activities to continue. Within this framework, only Big Ticket and Dubai Duty Free – airport lotteries that have been operating for approximately 30 years – are authorised to continue operations under the supervision of the GCGRA. In accordance with the law, all other preexisting lotteries will not be considered for continued operations, and the GCGRA has ordered them to shut down.

Kevin Mullally, CEO of the GCGRA, said: “The GCGRA is committed to ensuring a safe and legal gaming environment in the UAE.”

He urged consumers to “Stay vigilant and informed, to protect yourself from the risks associated with illegal gaming. Your adherence to the law not only safeguards your personal and financial security but also upholds the integrity of our community. If you choose to play, do so only with licensed operators.”

Mr. Mullally said: “These unlicensed businesses have not had their technology or games independently evaluated for fairness or security. They are not required to act responsibly or incorporate basic consumer protection. They are not subject to advertising regulations and lack any oversight of their finances, including having reserves for prize payouts and complying with anti-money laundering laws. Consumers are strongly advised to avoid unlicensed operators to protect themselves from adverse consequences. Similarly, advertisers, payment processors, and other service providers that support these businesses risk sanctions and potential consequences affecting their ability to operate in the UAE.”

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Compliance Updates

New Zealand Introduces Racing Act Changes to Extend TAB NZ Monopoly

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New Zealand Racing Minister Winston Peters has announced the introduction of legislation to amend the Racing Industry Act 2020 which will extend TAB NZ’s current land-based monopoly for sports and racing betting to online.

The Racing Industry Act established TAB NZ for the purposes of funding the racing industry. It provides 90% of the racing industry’s revenue, which generates billions of dollars for the New Zealand economy and employs over 13,500 people.

“This legislation will enhance the long-term sustainability of New Zealand’s racing industry by making TAB NZ New Zealand’s sole provider for sports and race betting both on land and online,” said Mr Peters.

“Growing competition from offshore online betting operators poses a significant threat to the TAB NZ model.

“This change brings the model up-to-date with the current sports betting climate and will ensure the financial sustainability of the racing industry, as established in the Coalition Government’s Q4 Action Plan for New Zealand.”

The Bill makes a number of other changes to support the success of TAB NZ, including new oversight powers for the Minister to seek information from TAB NZ, and regulatory oversight of the prohibition on other operators.

“These oversight tools will ensure that TAB NZ can continue to deliver value for consumers and the racing industry, and to ensure that the ongoing viability of the industry,” Mr Peters said.

Other changes to the legislation include regulation-making powers for harm prevention and minimisation, and consumer protection, and removing the Point of Consumption Charge.

The Bill will be referred to the Governance and Administration Committee for a select committee process.

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