Compliance Updates
Why Ireland’s advertising ban should sound a warning to the industry
Tom Farrell, Chief Marketing Officer at ClearStake
At first glance, Ireland’s emerging Gambling Regulation Bill might not be of particular concern to anyone outside the emerald isle – even allowing for Ireland’s influential and outsized position in the related worlds of horse racing and gambling. But recent controversy around a proposed ban on all television gambling advertising before a 9pm watershed should sound a warning to anyone willing to hear.
As it stands, this ban is intended to cover all television channels, including RacingTV and Sky Sports Racing. And as anyone who watches either of those channels will know, they are dependent on advertising from gambling companies. So dependent, in fact, that there is serious talk about both no longer being available in Ireland if the bill is passed.
Exactly what impact that will have on Irish racing and gambling is an open question, but there are already plenty of commentators sounding the alarm. “It will be a disaster” is the considered opinion of racing legend Ted Walsh, and it is hard to argue with him. Effectively it will remove Irish racing from the airwaves for all but a handful of key events, something sure to damage the industry in the medium term. From the perspective of gambling operators, it also means an inevitable loss of revenue as people bet on what they watch.
Will it happen? If (ahem) I was a betting man, I would back amendments to be added to the bill to allow exceptions for dedicated racing channels. But it’s no dead cert and it hasn’t happened yet. It would be foolish to assume that everything will get sorted out and thus sleepwalk toward disaster.
And for the wider lesson? Read on.
Where gambling stands today
Let us face facts. For most governments in countries where gambling is legal, it is filed under ‘something we have to do something about’. More specifically, those governments quite rightly want to protect their citizens from harm, and they are inevitably going to look around at ways in which to do that.
So, whilst in 2023, with everything we know about young people’s media habits, a ban on gambling advertising ‘before the watershed’ might seem silly to you or me, to a government ‘doing something’ about gambling, it’s an option. And in this case, they are taking it. As anyone following recent history knows, expecting governments to always make sensible, proportionate decisions isn’t always wise, and this is what happens when they are left to come up with a solution to the challenge of protecting gamblers themselves.
In response, and you can probably see where this is going by now, the gambling industry itself has to proactively engage with the responsibility to protect our customers. Nobody knows the ins and outs of the issue as well as gambling operators themselves, and it is those operators who should be bringing sensible, proportionate measures to the table. Because in their absence, we get the type of potentially disastrous ban on advertising being proposed in Ireland.
The goal, ultimately, is minimising harm whilst maximising revenue. I would argue that this ban actually does neither.
But what are the alternatives? Any member of the Irish government who reads the Racing Post on a regular basis would be forgiven for thinking that sensible, targeted measures, intended to ensure that high-staking punters are not gambling beyond their means, are definitely not an option.
On that basis, they have probably ruled out affordability checks entirely (despite the fact that AML legislation required the checking of financial documentation anyway) and landed on an alternative that has the potential to cause significant damage to the industry. Trebles all round!
Let’s finish by painting a slightly different picture.
Gambling operators and their representatives engage with the government in a constructive manner to find solutions that, as above, minimise harm and maximise revenue. That could include affordability checks integrated with existing AML requirements (as hinted at in the UK White Paper). By doing so, legislators get to ‘do something’, and the something that they do is targeted in a way that ensures those that need to be protected are, and those who wish to stake freely can do so, which delivers a top-line revenue boost.
Doesn’t that sound more sensible than slightly random interventions that risk the entire industry? The only thing stopping this happening is the industry itself. Let’s change that.
Compliance Updates
Department of Trust set to meet challenges of new affordability checks
Department of Trust (dotrust.co.uk), the award-winning provider of financial risk assessments for safer gambling is poised to meet the challenges of the newly announced regulations on frictionless financial checks by the UK Gambling Commission and Betting and Gaming Council.
Under the new rules published by the Gambling Commission, operators have until August 30th to implement frictionless checks on all customers making £500 net deposits in any rolling 30-day period. These frictionless checks form part of a new regime designed to protect players at risk of financial harm and replace the current ad hoc approach to affordability checks.
Department of Trust also welcomes the interim voluntary code published today by the Betting and Gaming Council (BGC), the standards body representing over 90% of UK-regulated market operators. This code focuses on how responsible operators should support customers spending above the lower threshold set out by the Gambling Commission.
The supplier’s DoTrust Complete solution offers an integrated suite of frictionless and enhanced financial risk checks with a high level of automation capability -the only such tool built solely for safer gambling – and is perfectly positioned to help businesses navigate the newly regulated waters.
Charles Cohen, CEO of Department of Trust, said: “These important announcements flag the end of gambling’s ‘sus law’ where players faced seemingly arbitrary requests for personal information, operators were placed under a significant burden, and no one won
“We now know that in 120 days, every operator will need to perform frictionless checks on all players with net deposits in a 30-day rolling period of £500. A few months later this will fall to a much lower level.
“If operators want to protect their business, keep their customers and reduce costs, smart automation is the only answer.
“Department of Trust has spent over two years building the leading plug-and-play solution specifically for the gambling industry. Complete already automates over 90% of the processes required in both the new LCCP and BGC code. Now we know what the requirement will be, we are today committing to the goal of 100%. We want every operator and player to have instant assessments and sensible decisions cost-effectively. No one needs to lose sleep over this.”.
Asia
Uzbekistan Legalises Online Betting and Lotteries
President of Uzbekistan Shavkat Mirziyoyev has signed a decree on April 19 titled “On Measures to Improve the Regulation of the Organization and Conduct of Lotteries and Risk-Based Games in the Republic of Uzbekistan”. The document abolishes the ban starting from January 1, 2025, and introduces a legal framework for the organisation of risk-based games online and betting activities.
The issue of legalising betting activities has been a long-standing topic in Uzbekistan. In December 2019, the president signed a decree to legalise bookmakers, but this decision was revised in April 2022. In April 2023, the head of state instructed the development of a regulatory framework for betting activities.
The National Agency for Advanced Projects (NAAP), the authorised state body for regulating and licensing activities in this sector, provided insights on the necessity of introducing state regulation in the gambling sector in Uzbekistan. The agency emphasised the need to prevent illegal gambling businesses, protect players’ rights and generate additional income for the state budget.
The president’s decree aims to introduce advanced foreign experience and modern technologies in regulating the organisation of risk-based games and lotteries to increase investment attractiveness, tourist potential and attract additional funds to the country.
The measures outlined in the decree include the creation of legal foundations for the legalisation of activities related to risk-based games online, betting activities, and lotteries, implementation of mechanisms to protect citizens’ rights and interests, prevention of gambling addiction and the generation of additional state budget revenue.
Starting from January 1, 2025, a taxation system will be introduced for license holders, where organisers of online games, betting activities and lotteries will pay a turnover tax. This system aims to prevent the concealment of taxable revenue and is expected to generate additional tax revenues for the state budget.
Overall, the implementation of the decree is intended to establish a reliable foundation for the legal regulation of activities related to organising risk-based games online, betting activities and lotteries in Uzbekistan, protect citizens’ interests, combat gambling addiction and provide additional sources of income for the state budget.
Compliance Updates
IAGR & IMGL Open Ticket Sales for 2024 Conference in Rome
The International Association of Gaming Regulators (IAGR) has opened registrations for its annual conference, taking place in Rome, Italy, from October 21 to 24.
With the theme Navigating the Future of Gaming Regulation in a Transforming World, this year’s event is a partnership with the International Masters of Gaming Law (IMGL).
“IAGR and IMGL’s Rome conference is a four-day event that brings together regulators, industry thought leaders and experts to share ideas and shape the future of gaming regulation across the world,” the President for the IAGR, Ben Haden, said.
The conference follows last year’s event in Gaborone, Botswana, which brought together the largest number of attendees in IAGR’s history.
“This year, participants can look forward to diving into themes that are at the forefront of the gaming regulation landscape including advancements in technology, the evolving regulatory challenges and strategies for future-proofing the global gaming industry,” Haden said. “In an era where technology is rewriting the rules of our industry, the question isn’t whether to adapt, but how swiftly we can. IAGR 2024 is about coming together as a global community to not only keep pace with change but to drive it.”
Confirmed speakers will be announced from May.
Conference highlights:
- Expert-led sessions and panel discussions on the latest in gaming regulation
- Joint conference sessions and events with IMGL, providing further networking and knowledge-sharing opportunities
- Networking events set in the heart of Rome including an opening reception and gala dinner featuring the International Regulatory Awards ceremony
Early-bird pricing is available until July 31 with super-early bird prices available until May 31. Head to the IAGR website for more details and ticket sales.
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