Compliance Updates
EGBA Concern at Reported Size of Online Gambling Black Market in Italy
Italy’s black market for online gambling is estimated to be worth nearly €1 billion per year: equivalent to the combined regulated online gambling revenue of 8 other EU countries. The country’s ban on gambling advertising is clearly favouring the black market and should be revised.
According to a recent report, the value of bets placed by Italian gamblers on the black market is estimated to be a staggering €25 billion per year, with €18.5 billion of this amount, or 75%, spent on unlicensed gambling websites.
Based on these figures, EGBA estimates that nearly €1 billion in online gross gaming revenue in Italy is lost to black market websites annually, equivalent to the combined regulated online gambling revenue of 8 other EU countries. What is concerning is that it means many Italian players will be betting on websites that are based outside of the EU, which do not offer them even a basic level of consumer protection.
Italy’s Customs and Monopolies Agency (ADM) has already taken action by blocking over 9800 unlicensed gambling websites this year alone. This number is already 400 more than the total blocked in 2022, highlighting the increasing scale of the problem.
The protection of customers is a key priority for EGBA and it stands against gambling websites that target the EU market but operate outside EU law and fail to provide necessary consumer safeguards for Europeans. It is crucial that the Italian authorities do more to raise awareness among Italian gamblers about the risks associated with using unlicensed platforms based outside the EU, and to signpost the licensed operators who adhere to the regulated responsible gambling practices and regulations in the country.
“The significant size of Italy’s online black market is concerning, yet it is not surprising given that Italy has one of Europe’s strictest advertising regimes for its licensed gambling companies. The country’s ban on advertising for licensed gambling operators is clearly favouring the black market. Without a sufficient level of advertising, there is no real way for Italians to tell the difference between a gambling website which is licensed in Italy – and applies the country’s consumer protection rules – and one that is not. It is evident that enforcement action against black market operators is not sufficient, and that the government needs to revise its advertising rules for gambling to ensure Italian citizens can be well-informed about the licensed websites in the country,” Maarten Haijer, Secretary General of EGBA, said.
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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