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Online gambling in Europe compared to online gambling in the USA

Zoltan Tundik

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Excited happy man showing fists, celebrate his success after winning online. At home. - Designed by Freepic.diller
Reading Time: 3 minutes

 

Online gambling has a wide spread during the past 20 years and it is slowly replacing conventional gambling parlors. Land-based gambling operators have understood the potential of convergence and have slowly implemented games that are similar to what players find in their favorite casinos around the world.

Nowadays, the popular slots games have made their way to all online casinos and it is clear that you can now play your favorite reels whenever you are located. This of course is possible if your chosen casino operator own a license in your jurisdiction. Although you are able to access online casinos, it is not possible for everyone to deposit money due to licensing frameworks.

Online gambling has a set of specific rules and it all depends on where gamblers live and what the rules for online gambling are in that certain jurisdiction.

During the past 10-15 years there have been several licensing framework that have been implements and amendments added all over the world, however we will study 2 specific jurisdictions in this article. The gambling jurisdiction for online gambling in Europe and in the USA.

Even if roller coasters are very popular in America, the regulation of online gambling in UK and Europe are certainly mirroring the ups-and-downs in the region. Gambling associations in the European Union have always suggested that gambling licenses should be controlled by the European Commission, however this never materialized. There have been news about the fact that the European Commission is working to develop a framework for online gaming in the EU, but we are still waiting to find the result.

In the European Union, online gambling is very mixed! Some countries such as Malta, UK (still part of the EU at the time when this article was written), Czech Republic, Latvia, Lithuania, Estonia, Bulgaria, Romania, Sweden and Denmark have clear licensing procedures that are governed by local governments and a have a set of laws that need to be followed by the operators. These markets have understood that in order to attract international operators that are always active and invest in regulated markets such as 888 or many more, there has to be a transparent and competitive law in force.

However, this is not the case for all 28 member states in the European Union, some have chosen to completely ban online gambling licensing and have also resorted to IP blocking and website banning in order to keep out the international operators.

When talking about the USA, it is a totally different slice of cake. In the online gambling industry, Black Friday does not refer to the biggest shopping day of the year or any tragic event that happened on a certain Friday. Black Friday refers to April 15, 2011, the day the United States brought a criminal case against three of the largest online poker companies operating in the country at the time, effectively wiping out the entire industry in America. Since 2011, Americans had lost their right to gamble online but these dark days are over now.

On 14 May 2018, the United States Supreme Court paved the way for individual states to introduce legislation permitting sports betting if they wish so, by striking down a federal law which had effectively prohibited this. This outcome was the result of a long-running attempt by the State of New Jersey to legalize sports betting within Atlantic City, following a non-binding referendum of its citizens in 2011 in favor of this.

The Supreme Court’s judgment has not made sports betting legal in the United States. What it has done is placed the ball firmly back in the courts of the individual states to legalize and regulate sports betting if – and as – they see fit, just as they already do with many forms of non-sports gambling such as casino gaming.

The partial re-opening of the US market has lead giant companies to enter the market and focus establishing their presence accordingly. Most of these companies have developed exclusive websites for the US players and have gone through significant improvements in order to deliver a superior experience. Most notable is 888 NJ, one of the most well-established online wagering operators in the world, and has been providing players with a safe, secure and fair place to wager since it first launched in 1997.

However, fears of becoming a mixed market in comparison with the European Union remain. Some states are not looking to regulate the online gambling licensing procedures. The future of online gambling in the USA is still bleak as there are certain signals about the fact that some stated might opt to block online gambling. It is certainly an interesting story in development since as a US citizen you have the same freedom all around the USA.

We will continue to report around this story of our century in the history book of the online gambling industry.

After starting out as an affiliate in 2009 and developing some recognized review portals, I have moved deeper into journalism and media. My experience has lead me to move into the B2B sector and write about compliance updates and report around the happenings of the online and land based gaming sector.

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Gambling sector deemed the industry most at risk of money laundering, new research from LexisNexis Risk Solutions reveals

Zoltan Tundik

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Reading Time: 2 minutes

 

1 in 3 (33.3%) anti-money laundering (AML) professionals in the gambling industry believe that their sector is at the highest risk of money laundering, according to a new report from global analytics provider LexisNexis® Risk Solutions. This opinion is shared by 41.9% of professionals in other regulated industries surveyed, who flagged the gambling sector as one of the top three industries most at risk of money laundering.

The report – On the Frontline: The UK’s Fight Against Money Laundering – is based on research conducted by the Economist Intelligence Unit and points to the risk potentially being caused by an internal culture of complacency. Almost 40% (39.2%) of AML professionals in the sector identified complacency as the biggest internal barrier to fighting money laundering. This, coupled with the fact that the same number (39.2%) think UK money laundering regulations are only “somewhat effective” points to a potential financial crime storm ahead for the gambling sector.

The Gambling Commission is acutely aware of the challenge, and in its 2018/19 Enforcement Report noted that it had investigated ‘a number of online casino operators’ found to have breached conditions related to the AML portions of their licences. During the past financial year, the watchdog issued a record £19.6m in penalties against firms who failed to stop money laundering or meet social responsibility obligations, and has warned of further ‘draconian’ actions for those operators who fail to learn lessons from these fines.

Even with this ramping up of enforcement actions, over 40% (41.2%) of respondents believe that the anti-money laundering regulations that they have to comply with are disproportionate to the money laundering threat that they actually face.

Despite a culture of complacency and lack of confidence in the AML regime, gambling firms are pouring money into AML compliance, with a vast majority (82.3%) stating their compliance budgets have increased over the last two years – more so than any other sector surveyed in the report.

A majority of this budget is being allocated to technology aimed at tackling the problem, the research revealed. Over 40% (41.7%) of AML compliance budgets is dedicated to technology at the moment, with over three quarters of respondents (78.4%) expecting funding for technology to increase further over the next five years.

Michael Harris, Director of Financial Crime Compliance and Reputational Risk at LexisNexis® Risk Solutions says:

“The threat money laundering poses to the gambling sector is very real, and this fact is clearly recognised by those working within it too.

The industry needs to take urgent steps to address this growing threat by ensuring that customer due diligence checks are conducted before allowing any gambling activity to begin, and, given the rise in online gambling, should consider embracing digital know your customer (KYC) technologies.

This, along with training teams dealing with customers on the frontline to spot money laundering red flags and adopt a risk-based approach, gives gambling operators the best chance of fighting financial crime and meeting their legal obligations.”

 

About LexisNexis® Risk Solutions

LexisNexis® Risk Solutions harnesses the power of data and advanced analytics to provide insights that help businesses and governmental entities reduce risk and improve decisions to benefit people around the globe. We provide data and technology solutions for a wide range of industries including insurance, financial services, healthcare and government. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information and analytics for professional and business customers across industries. For more information, please visit risk.lexisnexis.co.uk, and www.relx.com.

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TotoGaming Announces Official Launch of Online Sportsbook and Casino

Niji Narayan

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TotoGaming Announces Official Launch of Online Sportsbook and Casino
Reading Time: 1 minute

 

TotoGaming has announced the international launch of its online sportsbook and casino.

“We are very excited about the international launch of TotoGaming. This brand has been active in Armenian local market for over 15 years. The team will be in Amsterdam to celebrate our launch with the iGaming community, and of course, we will come with surprises for affiliates and their most meticulous players,” Victoria Poghosyan, Deputy COO of TotoGaming said.

TotoGaming includes several competitive features: variety of high odds on almost any sports, engaging visualisations, super-fast Live betting, over 400 in-house traders covering 65 sports, 7500 leagues, 3000 betting markets, 40 000 pre-match monthly events and 30 000 real live monthly events.

TotoGaming is a perfect sportsbook brand where players can also enjoy casino experience. Live casino and online casino are equipped with the best providers with many current promotions.

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EFL Survey Reports 71% of its Fans are Comfortable with Gambling Sponsorships

Niji Narayan

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EFL Survey Reports 71% of its Fans are Comfortable with Gambling Sponsorships
Photo Source: efl.com
Reading Time: 1 minute

 

The English Football League has conducted a survey among its fans and found that 46% of EFL supporters gambled online during the last 12 months and 71% believe gambling sponsorship in football is acceptable.

In terms of regularity of betting, 13% place a bet every week and 28% of them placed bets exclusively on Sky Bet, the EFL’s main sponsor. About 2% of fans had a bet every day.

Supporters aged over 65 had a higher likelihood of questioning the appropriateness of gambling partnerships.

EFL and Sky Bet have invested £1 million over a five-year period to educate clubs via responsible gambling campaign.

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