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Compliance Updates

THE EU AI ACT AND ITS IMPLICATIONS FOR THE IGAMING INDUSTRY

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THE EU AI ACT AND ITS IMPLICATIONS FOR THE IGAMING INDUSTRY
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By: Danil Emelyanov, Head of AI Labs, Betby

First of all, the regulation of AI is inevitable. The EU was the first to step into this arena with the EU AI Act, setting a precedent that other parts of the world will likely follow. This proactive approach positions the EU as a leader in AI governance, but it also means that regions adopting similar regulations later might benefit from the lessons learned and adjustments made in response to early implementations.

The downside is that those who come last to the regulatory scene might indeed benefit the most. For instance, the competitive landscape in AI innovation currently favors new entrants in the US or UK over Europe, partly due to the stringent compliance requirements of the EU AI Act. This regulation could potentially affect the flow of investments into European AI ventures, making regions with more flexible or yet-to-be-defined regulations more attractive for AI start-ups and investors.

However, the positive aspect is the collaborative approach the EU has taken in drafting this legislation. It’s not a one-way mandate from legislators to businesses; rather, it involves dialogue and input from various stakeholders, including tech companies and open-source communities. Notably, there are exemptions for open-source AI models, likely influenced by contributions from French and German tech firms like Mistral and Aleph Alpha, which have been vocal about the importance of open-source innovation.

The AI Act predominantly focuses on regulating foundation models rather than classic machine learning models. The legislation sets a computational power threshold at 10^25 floating-point operations per second (FLOPS), below which AI systems are generally exempt from stringent regulations. This threshold implies that unless an organization is training a model on the scale of GPT-3.5 or larger, compliance concerns are minimal. This serves as a reminder of the value of simpler machine learning techniques like logistic regression and random forests, which can effectively solve business problems without the complexity and regulatory scrutiny of more advanced models.

For the iGaming industry, the implications of the EU AI Act are relatively manageable. Our legal teams will diligently study the law to ensure compliance, even if it means a slight reduction in the accuracy of our models. This cautious approach is necessary because the fines for non-compliance are substantial, ranging from 1.5% to 7% of global turnover, depending on the severity of the offense and the size of the company. Additionally, some aspects of the Act are vaguely defined, which could pose challenges in interpretation and application.

Despite these challenges, the iGaming sector should remain vigilant. Staying informed about regulatory updates and actively engaging with the regulatory process can help mitigate risks and ensure smooth compliance. The EU AI Act sets high standards for transparency, accountability, and ethical AI use, which, whilst demanding, also push the industry towards more responsible AI deployment.

Compliance Updates

REEVO Secures Swiss Market Certification – Expanding Opportunities for Leading Brands!

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REEVO Secures Swiss Market Certification – Expanding Opportunities for Leading Brands!
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REEVO, the leading B2B games content and aggregation platform, is thrilled to announce that we’ve officially been granted certification to offer our in-house games to top-tier brands targeting the Swiss market!

This exciting milestone unlocks new possibilities for partners looking to captivate their players with our cutting-edge portfolio. From visually stunning slots to innovative game mechanics, REEVO’s games are designed to deliver engaging, high-performance experiences across all devices.

With a proven track record of success, our games are not just built to entertain—they’re built to drive results.

  • Certified for Switzerland: Expand your offerings in a lucrative market with certified, compliant games.
  • High-Performance Content: A diverse range of in-house slots, designed to capture player attention and deliver results.
  • Seamless Integration: REEVO’s platform ensures quick and efficient deployment for uninterrupted player experiences.

Now is the perfect time to elevate your game portfolio with REEVO’s certified content!

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Compliance Updates

BAGO Welcomes Positive Developments in Young People’s Gambling Behaviour, But Calls for Stricter Controls

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BAGO, the Belgian federation of private gambling operators, is pleased with the latest figures from the Flemish Expertise Centre for Alcohol and other Drugs on the gambling behaviour of young people. In 2023, 12.4% of young people reported having bet on sports at some point, which is a slight decrease compared to the previous year (12.5%). For casino games, we can see a similar slight decrease to 5.3% in 2023 who had ever played (5.5% in 2022).

These figures show a clear stabilisation and even a decrease in the number of young people under 18 who participate in gambling for some games, despite the fact that the survey took place before the introduction of stricter rules on advertising and the increase in the minimum age. BAGO has always advocated an increase in the minimum age to 21 and strongly supports measures to better protect young people.

Despite the ban on gambling for under-18s that has been in place for years – which has been extended to 21 since 1 September – the participation of young people in certain games of chance is still too high. Because recognised providers apply strict age checks and have invested heavily in player protection in recent years, minors mainly gamble on illegal websites or via physical products from the National Lottery. Recent figures, published in L’Echo , show that 60% of the Belgian gambling market consists of unlicensed providers. BAGO therefore advocates stricter controls to ensure that young people under the legal minimum age do not have access to games of chance.

BAGO emphasises that the Gaming Commission must be sufficiently effective to tackle the illegal gambling circuit effectively. In this circuit, minors can still gamble, without any form of protection and there is no age limit. In addition, BAGO finds it illogical that the increase in the minimum age to 21 years does not apply to all National Lottery products and therefore calls for equal protection for young people. In addition to control and equal treatment, prevention is an essential part of keeping young people away from gambling.

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Australia

Compliance blitz to ensure venues meet new gaming harm minimisation measures

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Liquor & Gaming NSW has kicked off a compliance blitz on new gaming harm minimisation measures, ahead of additional training requirements coming into force for senior staff of licensed venues.

Inspectors visited 528 hotels and clubs across NSW in July and August to ensure venues were complying with new requirements relating to Responsible Gaming Officers (RGOs), gambling incident registers, ATM signage and Gaming Plans of Management (GPOM).

The operation comes amid new requirements for senior staff to undertake training to ensure venue leaders can support a culture of gaming harm minimisation.

The new requirements are part of the NSW Government’s commitment to deliver evidence-based reform that helps prevent gambling harm and money laundering, and supports local communities and jobs.

Venues have shown a readiness to adopt the additional harm minimisation requirements, with inspections since 1 July finding 93 per cent of venues are complying with new measures required since that date. The majority of breaches found related to new ATM signage requirements.

Inspectors are continuing their work across the state to ensure industry is aware of its obligations and are complying with the new requirements as they come into effect.

Liquor & Gaming NSW Executive Director Regulatory Operations Jane Lin said the new requirements were an important next step in minimising gambling harm.

“Inspectors re focusing on Gaming Plans of Management to ensure they have the required content included, as well as testing that the policies and procedures in the plan are being adhered to.

“It’s important that venues not only have a plan prepared, but ensure their staff are aware of the contents and are checking to make sure it is being complied with.”

The new requirements are part of the government’s commitment to deliver an evidence-based reform that reduces gambling harm, stops money laundering, and supports local communities and jobs.

Under the new rules, club secretaries, club directors, hotel licensees, hotel managers and staff who are responsible for the management of gaming operations will all be required to undertake training on the practical skills to identify and proactively intervene when patrons are showing signs of gambling harm.

As part of a suite of gambling reforms, licensed venues have recently been required to:

-maintain and conduct monthly reviews of a Gambling incident register from 1 July 2024, that records instances of potential or actual gambling harm identified in the venue

-introduce RGOs into hotels and clubs with more than 20 gaming machine entitlements from 1 July 2024

-create and maintain a Gaming Plan of Management from 1 September 2024, and update at least annually.

From 1 January 2025, ATMs must be located outside of a five-metre radius of any entrance or exit of a gaming area in a hotel or club.

Venues that cannot comply with this requirement can seek an exemption from L&GNSW in some circumstances.

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