## Moving Towards Acceptance of Unpermitted Operators – Legal Matters & Adherence – iGB

Unlawful online wagering is a major issue for player safety and governmental revenue. However, as Paul Gilven points out, most locations with regulations for gambling still permit individuals to profit without adhering to these regulations. Can we take more action to curb these unauthorized operators?

**Homepage > Legal Matters & Adherence > Moving Towards Acceptance of Unpermitted Operators**

**Moving Towards Acceptance of Unpermitted Operators**

Online wagering has been present since the inception of the internet, and we have witnessed a growing number of issues stemming from illegal gambling.

Nearly every nation that has established rules for gambling has observed an increase in issues related to gambling addiction and other negative consequences, and many of these issues originate from operators lacking licenses.

There is much discussion regarding a “level playing field” for authorized operators, but it is difficult to envision how any marketplace can be beneficial for anyone when it permits illicit operators to operate. These illicit operators hold an advantage due to their exemption from fees and taxes, and they are not bound by the same regulations regarding advertising or assisting individuals with gambling problems. They have also been present for an extended period, resulting in a substantial customer base. It is not unexpected that generating revenue without incurring any expenses constitutes a profitable business model.

Legislators often assume that legalization and regulation will eradicate the “underground market,” or at least diminish it to a negligible level, but this is not the case. In February, the Gambling and Gaming Commission published a study derived from a PwC report, some key points of which are as follows:

Meanwhile, a December 2021 United Nations report discovered that illicit operators worldwide take in up to $1.7 trillion in wagers annually, presenting a substantial risk to the integrity of global sporting events and fair competition.

Comprehending the Market: Three Stages of Regulatory Development

As regulation progresses to safeguard consumers and control the online gaming industry, the underground market has adjusted to capitalize on the shift toward increased licensing and regulation. In the absence of effective consumer education about what constitutes legal, regulated, and tax-paying gambling and gaming operators, the underground market flourishes.

Currently, the world is divided into three stages of regulatory development:

Unregulated Markets:

There are no specific laws in place concerning online gambling and gaming. Consequently, in such regions, there is no underground market or legitimate market for online gambling and gaming—the market is legally and practically permitted, but all participants acknowledge that they may encounter some legal risks in the future if they choose to offer services in this pre-regulatory state.

Regulated Markets:

These marketplaces – during the process of creating and enacting legislation – might be categorized as “grey” if there are currently no enforceable rules to restrict or control online participants.

In these marketplaces, governmental indifference enables illicit markets to thrive, while stricter regulations on authorized operators might give illicit markets an edge. In the United Kingdom, one of the most developed online gambling marketplaces, the current government has initiated a process that could result in significant alterations.

These alterations present an opportunity for the illicit market and contribute to a reason for unlawful operators to remain in the marketplace. These changes to “gambling and gaming operations” – particularly advertising and bonuses – tend to lead to gambling consumers demanding what they are already “used to.” It is these unregulated unlawful operators who will continue to provide these popular “comforting” elements, catering to consumer familiarity.

Regions at this stage sometimes plant the seeds of illicit market expansion, as legal and compliance discussions before launch prompt some operators to decide whether to “take a risk” and remain in the marketplace, or operate unlawfully without a license.

Controlled marketplaces:

A marketplace with licenses and taxes, as well as enforcement and law enforcement, usually only targeting licensed operators. The United Kingdom is a prime example.

Consumer comprehension

…

The illicit market for wagering is flourishing, both presently and historically, as many individuals fail to perceive these online platforms as unlawful or hazardous.

Why? It’s straightforward: how people discover and utilize them. They resemble and function identically to conventional online gambling platforms, and individuals locate them in the same manner: through search engines, social media, advertisements, word-of-mouth, and so forth. You don’t need to visit dubious locations to find them – they are ubiquitous, merely a Google search or a tap on your phone away.

When you conduct an online search for casinos or sports betting websites, you encounter a blend of results. Some are legitimate, authorized websites in regulated regions, but numerous are unlicensed, operating outside the law, disregarding regulations, and, most detrimentally, not paying taxes or safeguarding players.

This deficiency in awareness and education is the reason why individuals are unconcerned about the legality or regulation of these websites. Most individuals lack comprehension regarding what constitutes a legitimate website, why these regulations exist, or why they should be concerned.

Within a setting where authorities impose advertising prohibitions or strict rules, regulated gambling businesses face a challenge in differentiating themselves from illicit operators and enlightening the public. This lack of education is exploited by the underground market.

Should a region enforce a rule compelling authorized platforms to refrain from offering retention incentives, how will consumers respond? They will search online for bonuses and discover numerous, if not countless, unlawful black market choices concealed among legitimate, authorized, and compliant providers. These websites lack authorization. They do not safeguard players. They do not contribute to the public purse or modify their operations to become and remain compliant. This is the competitive edge the black market acquires.

What implications does this have for taxation, player safety, and operators?

What practical consequences does condoning the existence of the illicit market have for these crucial areas?

**Taxation**

Tax revenue derived from gambling and gaming will be stifled, become unpredictable, and steadily decrease. Only those platforms that responsibly align, adhere to conditions, obtain licenses, pay taxes, and operate according to rules and regulations will generate tax revenue, and they confront unfair competition from black market websites daily.

It is projected that for every authorized website, there are at least two or more websites operating abroad, aiming at the market but avoiding taxes, not safeguarding players, and not adhering to any regulations.

This dichotomy, largely imperceptible to customers, is known as “channeling”: the portion of the gambling and gaming industry that has transitioned from an unregulated state to a licensed and regulated state since regulation commenced. The lower the channeling proportion, the less tax revenue is generated from gambling and gaming, and the weaker all consumer protection agreements become.

If the illicit market is not effectively eradicated or kept out of sight, consumers will continue to unknowingly participate in it, essentially the same way they did before regulation. Online, and in the media channels where today’s audiences primarily access information, the illicit market is real, and in some cases even favored, to the point that it can even eclipse the visibility and relevance of licensed websites.

Player Safeguarding

Unlawful operators targeting the regulated market pose problems for individuals and society, primarily among minors and those at risk of gambling-related harm.

With the illicit market just a Google search away, the much-touted objective of player safeguarding has so far been nothing more than a hope.

Every legal guideline, regulatory body rule, and penalty, along with the threat of license revocation, all point towards a single objective: safeguarding at-risk and vulnerable individuals. However, this objective won’t be achieved in any significant way if we allow illicit markets to flourish and fail to implement adequate provisions and products that enable regulators to monitor, enforce, and carry out the meaning of licensing.

**Protecting Operators**

Operators, having paid substantial licensing fees and hefty taxes to gain market share, while adhering to stringent and costly gambling problem protocols, often accept short-term losses in anticipation of long-term gains. They need the assurance of a fair playing field.

However, they are not currently experiencing this compared to the illicit market. To maximize their investment in the regulated market and contribute to maintaining a secure, regulated environment, it is essential to reduce and curb the illegal market’s diversion of revenue.

**The Repercussions**

Without sufficient systems to monitor, enforce, and execute the regulated market, three negative outcomes can be identified:

These are not outcomes that should be accepted, but they are occurring due to the lack of solutions so far.

**Combating Illegal Markets**

The PwC BGC report highlights that authorities in Sweden, Belgium, Spain, France, the Netherlands, and Denmark are actively working to keep illegal gambling out of their domestic markets. However, some of these efforts are counterproductive, particularly the restrictions on advertising and bonuses (Italy, Norway, and Spain). This only encourages gamblers to engage with illegal gambling and results in a lack of public awareness regarding the dangers of unlicensed gambling.

In Asia, the Asian Racing Federation has formed an Anti-Illegal Gambling Task Force. The task force’s goal is to “promote and strengthen international collaboration between racing operators, regulators, intergovernmental organizations, and government agencies to better combat the threat of illegal gambling and other financial crimes that threaten the integrity of racing, especially the sport.”

The task force plans to conduct research to identify connections to organized crime and expose links to horse racing and sports, thereby assessing the impact on the integrity of these sporting events.

The rapid growth of sports betting in the United States has led to increased concerns about illegal gambling, often centered around issues of sports integrity and consumer harm. The American Gaming Association has been actively advocating for protective measures, but these measures currently appear to be focused at the federal level, where no concrete action has been taken yet.

On a state-wide scale, the matter is beginning to garner attention. Connecticut is cautioning basketball enthusiasts about illicit operators who are targeting residents with Final Four wagering activities. According to a 2020 Forbes piece, unlawful sports betting markets are projected to have between $50 billion and $200 billion in bets. The article cites the American Gaming Association, Eilers & Krejcik Gaming, and H2 Gambling Capital, advocating for low tax rates to enable legal operators to better compete with the underground market.

While these initiatives are praiseworthy and do raise public consciousness of the problem, they don’t offer a systematic and effective solution that can be implemented by authorities.

A Possible Tool

Atropos Intelligence is one of the “early birds” in this space, a startup established by industry veteran Ismail Vali that is developing a technology and consulting platform to address this gap. Atropos has constructed a suite of products under a platform known as Yield Sec.

“In our view, player protection and the operation of a sustainable industry (both onshore and regulated) are simply two sides of the best customer experience. You cannot effectively or genuinely protect customers without first safeguarding the market,” said Ismail Vali, founder and CEO of Atropos Intelligence (owner of the Yield Sec platform).

Yield Secs objective is to assist all participants in the legal wagering and gaming industries in achieving a just, secure, and safe environment where lawful, accountable betting and gaming are authorized, harm is reduced, customer satisfaction is improved, and society is safeguarded.

Yield Sec software thoroughly scans the internet for all commercial betting, gaming, and lottery websites, applications, links, posts, mentions, and so on, including content from both within and outside the jurisdiction, concentrating on those clearly targeting the area. The system pinpoints pertinent betting and gaming keywords and phrases, analyzing, classifying, ranking, and indexing them.

After content from legitimate operators is differentiated from content from unlawful entrants, the index is prioritized to show the various risks each product presents to tax revenue, licensing revenue, and player protection.

Human intervention, machine learning, and artificial intelligence aid in ranking and ordering threats, creating a matrix. This matrix specifies which content needs to be controlled and remedied at the legal operator level and which content needs to be removed and deleted from illegal operators. To facilitate the removal of unlawful content, Yield Sec collaborates with regulators and law enforcement across search, social, and digital media platforms that provide “oxygen” for advertising.

By limiting and deactivating the presence of unlawful operators in advertising, social media, search engines, and online platforms, their capacity to acquire new customers, reach, and re-engage existing ones is diminished. The objective is to render it impossible for illicit operators to generate profits. This entrepreneurial endeavor is on the verge of being achieved and possesses immense potential for the industry.

Technology will not condone the black market.

Society has tolerated the black market up to this point because online gambling and gaming have evolved into a global phenomenon. Considering that the gambling and gaming industry has matured in numerous regions, it is time to address the matter of illegal operators with more than just the hope that regulation alone will thwart and hinder black market operators.

Regulators, who have been compelled to adapt to the emergence and prevalence of online gambling, have made significant efforts with the tools at their disposal. However, it is time to utilize the technology that enabled the online industry to ensure its fairness, safety, and sustainability.

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The gambling houses in Detroit, Michigan, witnessed an increase in their earnings by 8.9% in the fourth month of the year compared to the same period last year, reaching $118.7 million (£97.1 million/€114.2 million).

The overall earnings in April surpassed the $109.9 million generated by these establishments in April of the previous year, but it was 3.4% less than the $122.9 million generated in the third month of the current year, according to information released by the Michigan Gaming Control Board (MGCB).

The year-over-year rise was primarily attributed to the fact that the three gambling venues were operating at a reduced capacity in April of the previous year, in accordance with the state’s new coronavirus (Covid-19) measures, while this year such limitations have been lifted.

MGM Grand Detroit remains the leading player, with a 48% market share, ahead of MotorCity Casino (31%) and Penn National’s Greektown Casino Hotel (21%).

In April, earnings from table games and slots totaled $116.9 million, up 8.8% year-over-year.

MGM takes the lead in this regard, with earnings of $56.8 million, up 31.4% year-over-year. In contrast, MotorCity’s table game and slot earnings decreased by 8.8% to $36.4 million, while Greektown’s fell by 2.6% to $23.7 million.

Total qualified adjusted gross receipts (QAGR) from sports betting activities reached $1.9 million, up 21.3% from the previous year.

Greektown was the frontrunner in sports betting revenue growth, boasting an average yearly increase of $912,513. This put them ahead of MotorCity ($552,841) and MGM ($405,385).

Gaming establishments processed a total of $24.8 million in sports wagers, resulting in $1.9 million in overall earnings. Of this sum, $70,714 was allocated to state taxes and $86,428 went towards the city of Detroit’s retail sports betting levy.

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Portugals online betting income achieved a new peak in the third quarter, hitting €84.2 million – iGB

Based on the most recent information released by the national authority, Serviço de Regulação e Inspeção de Jogos (SRIJ), Portuguese internet gambling revenue reached a record €84.2 million in the three months ending September 30, 2020.

Home > Gaming > Online Casinos > Portugals online betting income achieves a new peak in the third quarter

Portugals online betting income achieves a new peak in the third quarter
The total for the quarter was up 55.6% year-on-year from €54.1 million and also up 22.6% from €68.7 million in the second quarter of 2020.

Sports betting revenue hit €42.5 million in the quarter, up 23.2% year-on-year and more than double the total for the second quarter, due to the resumption of major sporting events following the end of the coronavirus (Covid-19) outbreak.

Gamblers wagered a total of €222.8 million on sports betting in the quarter, nearly double the amount wagered in the same period in 2019.

Soccer was the main source of interest for sports betting in the third quarter, accounting for 79.1% of all bets placed in the quarter. Tennis was second with 11.8% of bets, followed by basketball with 6.5%.

Income from games of chance reached €41.7 million in the quarter, up 47.9% year-on-year. However, this was down 12.9% from the €47.9 million generated in the second quarter of 2020, as some consumers returned to sports betting with the return of many sporting events.

Total online gaming spending in the third quarter was €1.18 billion, up 59.4% from €741 million.

The equivalent timeframe in 2019 saw a figure of 6 million.

Regarding wagering volume, slot machines held sway over the online gaming market in the third quarter, claiming 70.3% of all wagers. Following closely were roulette at 13.8%, blackjack at 6.1%, and poker at 4.8%.

During the third quarter, roughly 156,000 new users signed up for online gambling accounts, while the number of individuals opting to self-exclude from online gambling also climbed to 62,100.

By the third quarter, Portugal boasted 24 valid gambling licenses, a rise from 18 in 2019. Of these, 11 licenses were for sports betting and 13 were for online gaming activities.

Solverde Group, a Portuguese casino operator, officially made its entrance into the Portuguese gambling market in September 2020 after securing an online sports betting permit.

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## The Middle Kingdom and Digital Gaming: Current State and Future Prospects – iGB

The People’s Republic of China presents a significant chance for businesses prepared to take a gamble. David Schulenberg of Healys examines the legality of online and offline gaming in mainland China, Macau, Hong Kong, and Taiwan.

**The Chinese nation is among the world’s largest gaming markets, and its citizens are some of the world’s most enthusiastic bettors.**

The People’s Republic of China, Macau, Hong Kong, and Taiwan all have distinct gaming regulations. This piece will examine the legality of land-based and digital gaming in these four territories.

**Macau**

Macau is one of the two Special Administrative Regions (SARs) of the People’s Republic of China (PRC). Situated 40 miles from the coast of Hong Kong, Macau spans only 12 square miles with a population of 600,000. As an SAR, it shares foreign policy and defense with the PRC, but has different laws in other domains. Macau is the only region in the PRC where gambling is permitted, and it has been legal since the 19th century. The regulatory body for land-based gaming in Macau is the Gaming Inspection and Coordination Bureau (DIJC).

Macaus gaming earnings, encompassing casinos, sports wagering, and poker, are five times greater than those of Las Vegas. Visitors from mainland China and Hong Kong constitute the vast majority of patrons utilizing gambling services in Macau, followed by tourists from Japan and South Korea. Prior to 1999, mainland Chinese citizens were barred from traveling to Macau. Following the transfer of Macau from the Portuguese Republic to China in 1999, mainland Chinese residents were granted permission to travel to Macau, transforming it into the world’s foremost gambling destination. Online gambling in Macau is neither authorized nor acknowledged, rendering it neither forbidden nor sanctioned. Foreign operators furnish gambling services to Macau residents, and the Macau government refrains from intervention.

**Hong Kong**

Hong Kong is another Special Administrative Region of China, whose British sovereignty and administration were transferred to China in 1997. Hong Kong boasts a population exceeding eight million and possesses a legal framework independent of China, while sharing foreign policy and defense with China. The Hong Kong Jockey Club (HKJC) is licensed and authorized to conduct sports betting in Hong Kong. The HKJC maintains a monopoly over all offline and online sports betting and lotteries in Hong Kong. Casino gambling and online casino games are prohibited in Hong Kong. Offenders will be subject to stringent penalties.

**Taiwan**

Taiwan is a self-governing island situated off the coast of mainland China. The island maintains its own government and military, and is regarded by many as an independent nation. However, China asserts sovereignty over Taiwan. Gambling in Taiwan is subject to government regulation, and several casinos operate legally within the country. Online gambling is also legal in Taiwan, but it is subject to rigorous regulations.

Taiwan forbids casino gaming and athletic wagering, with the exception of those provided by the Taiwan Sports Lottery. Comparable to the Hong Kong Jockey Club, the Taiwan Sports Lottery is the sole sanctioned entity to provide sports betting within the nation. The probabilities presented by the Taiwan Sports Lottery are not as advantageous as those offered by global operators. Although international operators are accessible in Taiwan, they are not authorized, but unlike mainland China, they are not obstructed.

In mainland China, casino games, poker, sports wagering, and online gaming are all prohibited, except for sports betting provided by the China Sports Lottery. The China Sports Lottery holds a monopoly on sports betting in mainland China, offering legal wagers on all sporting events, including online and offline. The Chinese government-authorized sports lottery providers offer online lottery purchases, but they are limited in number and tightly regulated.

China possesses one of the largest internet service markets globally, with more than 457 million users. The payout probabilities through the China Sports Lottery are quite low. Foreign websites operating illegally in the People’s Republic of China frequently offer superior odds and payouts. It is unlawful for Chinese players to access these foreign websites from China, transfer funds from China to foreign websites, and for foreign websites to receive funds from Chinese players.

The Chinese administration vigorously restricts access to overseas gambling platforms, and financial institutions are forbidden from facilitating payments for gaming services. Breaching these rules can lead to penalties and incarceration. The Chinese Yuan is not a freely exchangeable currency, which presents additional hurdles for online wagering.

Despite the illegality and hindrances, there is substantial interest in utilizing foreign gambling services, surpassing the volume of legal betting through China’s Sports Lottery. A considerable number of foreign operators and payment service providers operate in China without local oversight, and many Chinese participants utilize these services. Some of the world’s largest and most renowned sports betting enterprises generate revenue from China.

How do operators and payment service providers circumvent the regulations? Operators might employ various tactics to evade being blocked. Operators might utilize a sequence of rotating web addresses. Payment service providers that collect funds from players, provide Yuan conversion, and make payments to operators may also utilize the same rotating web address technology. Some Chinese banks clandestinely collaborate with PSPs on an illicit basis, making it difficult for authorities to identify. Consequently, enforcement efforts are demanding.

**Summary**

Of the four regions examined above, Macau adopts the most lenient approach to the provision of gambling activities.

Although some worry about the effects on traditional businesses, there appears to be no compelling reason to avoid granting online gaming and gambling licenses in various regions.

China boasts a massive population, and its burgeoning middle class is anticipated to expand significantly in the years ahead. As this middle class enjoys increased disposable income, the inclination to engage in gambling and utilize internet gambling services is likely to rise.

Since China prohibits and does not issue licenses for online gaming, most Chinese online gaming and gambling activities operate without regulation or taxation, and in some instances, are even managed by criminal elements.

The absence of regulation implies a lack of social responsibility programs, no oversight of criminal activity or fairness. Unprincipled operators are free to deceive customers and engage in money laundering.

The government also forfeits the capacity to monitor, regulate, and tax these activities, as well as safeguard player interests.

Considering the vastness of the Chinese market and the Chinese people’s passion for gaming services, it would be prudent to legalize and regulate all online gaming within these jurisdictions gradually.

Regrettably, mirroring the United States and its political landscape, this process may take several years.

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A top-tier gaming technology firm, Playtech, has declared a five-year strategic collaboration with the Jockey Club, the leading commercial entity in British horse racing. This exclusive arrangement will see Playtech create a variety of cross-product material based on the Jockey Club’s well-known events and racetracks. The deal was facilitated by Creation igaming and Metrostar.

Under the new arrangement, Playtech will be given the rights to develop a variety of content across its top-performing product areas, including casino, live casino, poker, virtual sports, and bingo. The initial content from the collaboration will be released in time for this year’s Cheltenham Festival, including a random number generator casino game, which will be the newest addition to Playtech’s Sports Legend collection.

Established in 1750, the Jockey Club is the largest commercial group in Britain’s second-largest spectator sport, operating 15 racetracks throughout the nation, as well as the National Stud, Jockey Club Estates, Jockey Club Catering, Jockey Club Live, Jockey Club Services, and its charitable organization, Racing Welfare.

Moving beyond top-notch products and services, Playtech collaborates with partners to become synonymous with setting the standard for ethical business practices and secure gambling. Playtech has teamed up with leading operators and providers to pioneer the industry’s initial code of conduct for safer game design. Moreover, through Playtech Protect, Playtech has spearheaded the use of research, data, and artificial intelligence to develop products that identify customers at risk and offer customized safe gambling interventions.

James Frendo, Playtech’s Casino Director, stated: “At Playtech, we are dedicated to developing the most captivating brand content. By joining forces with iconic sporting institutions like The Jockey Club, we are able to create a variety of exceptional and thrilling cross-product content. Collaborating with globally recognized brands is a key component of our brand content strategy, as we aim to deliver unique and engaging responsible gambling experiences for our clientele.”

Charlie Boss, Chief Commercial Officer at The Jockey Club, added: “We are thrilled to partner with Playtech, whose industry-leading software and expertise will assist us in translating the success of our historic brand into the online betting market for the first time. Playtech, like us, places safe gambling at the core of its products.”

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The New South Wales (NSW) administration has affirmed that it will impose elevated levies on land-based gambling establishments in the state.

The NSW administration has finalized strategies to enhance casino tax rates, which have been in development for a period. The current administration proposed the modifications in December 2022, aiming for them to take effect from July 2023.

These tax increases were incorporated into the financial plan and were inherited as a legacy policy by the current administration after the March election. The new administration released an update in June, stating their intention to proceed with the strategies.

At the time, the administration did not confirm the tax rates but confirmed that they would be negotiating with casinos on the subject. Previously, some casino operators, including Star Entertainment Group, had criticized the method in which the tax increases were being implemented.

The administration reached an agreement in principle over the summer to increase the tax rates over a shorter period. These rates have now been confirmed by the administration and will come into effect on July 1st of this year.

What tax rates will casino operators encounter?
The rebate game tax rate will increase from 10.0% to 12.5%, and the non-rebate game table game tax rate will increase from 17.91% to 20.25%. Both of these rates are in line with the proposals made by the current administration.

The fixed tax rate for slot machines will stay at 20.91% for now and is not anticipated to change soon. However, starting July 1, 2024, the rate will climb to 21.91% and will increase again on July 1, 2027, to 22.91%.

From June 30, 2030, the tax rate will be divided into levels, as suggested by the previous administration.

Machines with an Average Machine Per Revenue (AMPR) below $2,666 (GBP 1,398/EUR 1,601/USD 1,754) will not be taxed. Machines with revenue between $2,666 and $6,667 will be taxed at 37.6%, machines with revenue between $6,667 and $12,500 will be taxed at 42.1%, and machines with an AMPR exceeding this limit will be taxed at 51.6%.

Slot machine tax rates and limits may be reviewed in good faith between July 1, 2030, and September 30, 2030, at the request of casino operators.

The government has also confirmed that the current responsible gambling tax will stay the same, at a rate of 2%.

Furthermore, the Star Group has agreed to pay an extra tax equal to 35% of the part of the Star Sydney casino’s gaming revenue that surpasses $1.13 billion each year from July 1 to June 30.

The Star Group has been pleased with the new tax rates in New South Wales. Robbie Cooke, CEO and Managing Director of the Star Group, has expressed his approval of the higher tax rates. The operator negotiated the issue with the government and agreed to the initial rates in August, which Cooke stated would help safeguard jobs.

Star City Entertainment is pleased with the New South Wales government’s assistance in this situation. Cook stated, “Formalizing these arrangements safeguards the employment of our Sydney team and enables us to continue our efforts in restoring Star City Sydney to its former glory and regaining the confidence of our patrons.”

Star City Entertainment has faced a challenging period in New South Wales. In April, they announced plans to implement cost reductions and restructuring measures due to the rapidly deteriorating circumstances.

The company has been the subject of multiple government investigations. In response, Star City Entertainment has pledged to strengthen its collaboration with the New South Wales government to formalize certain arrangements.

These agreements encompass a pilot program for cashless and card-based gambling. This initiative represents a step towards modifying regulations in New South Wales, mandating the implementation of cashless and card-based gambling across all casinos in the state commencing in August 2024.

Star City Entertainment has also committed to maintaining a specific workforce size in New South Wales. This commitment ensures the retention of a certain number of employees within the state, while allowing for necessary adjustments in the event of unforeseen circumstances or changing conditions.

Braggs ordinary shares commenced trading on the Nasdaq Global Select Market today (August 27).

The company’s stock is now listed on Nasdaq under the trading symbol “BRAG,” subsequent to the company’s prior approval to be listed on Nasdaq.

The provider applied to list its common stock on Nasdaq in March of this year and obtained shareholder approval shortly after.

Bragg will continue to trade its shares on the Toronto Stock Exchange in Canada, with the trading symbol remaining unchanged.

Bragg CEO Richard Carter remarked: “Bragg is effectively executing its plan to expand its operations and market dominance in the substantial global iGaming market, which is progressively capturing the interest of US and Canadian investors.”

Peruse the complete narrative on iGB North America.

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## Gaming Restrictions in Uganda and Kenya: A Glimpse into the Future? – iGB

Dan Taylor, a representative from Clarion Gaming, expresses concern that the expansion of gaming and gambling in Africa might be hindered due to the increasingly stringent regulations imposed by governments and regulatory bodies on gaming enterprises.

**Gaming Restrictions in Uganda and Kenya: A Glimpse into the Future?**

Dan Taylor, a representative from Clarion Gaming, expresses concern that the expansion of gaming and gambling in Africa might be hindered due to the increasingly stringent regulations imposed by governments and regulatory bodies on gaming enterprises.

In recent years, the African gaming market has witnessed significant growth, with nations like South Africa, Nigeria, Kenya, Uganda, and Tanzania emerging as key players in the continental landscape.

The confluence of emerging technological hubs, enhanced internet connectivity and digital adoption, and readily available payment solutions for individuals lacking traditional bank accounts has fostered a conducive environment for the online gaming sector. In Kenya, mobile phone companies boast a reach of nearly 90% of the population, with over 46 million individuals having access to the internet.

These favorable conditions, coupled with a burgeoning and youthful middle class exhibiting a keen interest in sports, have positioned Africa, the world’s second most populous continent, as an attractive destination for gaming companies seeking to expand beyond their often saturated existing markets.

Although numerous marketplaces in Sub-Saharan Africa have experienced steady expansion in recent times, difficulties that have been affecting their European counterparts are beginning to emerge in this hopeful area.

**A More Rigid Approach**

As wagering activities spread across the continent, particularly in East Africa, Uganda took the initiative in 2019. Based on local media accounts, the Minister of State for Finance, David Bahati, received directions from President [Yoweri] Museveni to suspend authorizations for sports betting, gaming, and gambling enterprises.

Moreover, businesses that had already been approved would not have their authorizations renewed upon expiration. In addition to wanting to redirect young people’s attention away from sports betting and its detrimental social consequences, President Museveni specifically mentioned the repatriation of profits by foreign companies to their home countries instead of reinvesting in Uganda as a reason for the prohibition – a reason that resonated with neighboring areas.

Kenya, a dominant force in the gambling industry, was the next market to take significant action, initially mirroring similar measures taken in Europe (especially Italy) by focusing on the extent of advertising. According to the Betting Control and Licensing Board (BCLB) of Kenya, “outdoor advertising of gambling, gambling advertisements on all social media platforms, gambling advertisements between 6 am and 10 pm, and endorsements of gambling businesses by celebrities” would be prohibited.

Although the prohibition on advertising has been temporarily lifted, the Betting Control and Licensing Board (BCLB) has taken steps to simplify the sector, striving to further regulate the availability, accessibility, and affordability of all forms of wagering.

In the early part of July 2019, the BCLB halted the renewal of operational licenses for 13 casinos, 6 lottery organizations, and 8 betting firms, signaling the beginning of this action while long-term regulatory measures were being contemplated. The list of operators whose licenses were revoked or delayed included prominent names such as SportPesa and Betin, two of Kenya’s largest betting companies, controlling approximately 85% of the market share. This suggested that the authorities were prepared to reform the industry resolutely.

These actions established a precedent for both regions, potentially extending across the continent and dampening the immense hope that the African betting industry had exhibited.

**A Gradual Fading**

However, the actions taken by these two significant Sub-Saharan African markets have prompted many in the industry to question the severity of these rulings and, more importantly, their effectiveness. With regulated betting prohibited, the legitimate market is likely to be replaced by unregulated and illicit jurisdictions, presenting a greater risk to gamblers.

This pattern has the possibility of becoming widespread, propelled by rising player interest and the regulatory market delivering substantial financial advantages to local economies. However, can nations afford to forfeit such substantial potential income to the illicit market?

The situation is still ambiguous, but one thing is clear: to create a stable, investor-friendly gaming environment in Africa, the sector must learn from the difficult experiences already encountered in Europe and other established markets globally.

Among other issues that require attention, problematic gambling and excessive advertising must be given priority. More effective Know Your Customer (KYC) checks, age verification protocols, and education should be implemented to stop young bettors from pursuing unrealistic high-yield accumulators. Lastly, regulatory and tax frameworks should be clearer, more contemporary, and consistent to benefit both local economies and foreign businesses operating in African jurisdictions.

Since the ICE brand debuted in Africa in 2018, the arrival of the gaming industry’s only pan-African B2B event in October 2019 marks a significant moment for the sector. With questions surrounding gaming regulation, operations, and public perception, ICE Africa 2019 will once again provide a platform for the industry to address these challenges and establish a course for future stability and success, enabling the realization of the immense potential of this exciting market.

Daniel Taylor joined Clarion Gaming in the early part of 2019 as a conference organizer, concentrating on African and North American territories. He is presently preparing for the 2019 ICE Africa event, which will take place in Sandton, South Africa this October. Explore the website for more information and to sign up for free.

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PointsBet has recruited Chantal Cipriano to fill the position of Vice President of Legal, Compliance, and Human Resources for their Canadian operations.

Cipriano, a legal professional and educator at the University of New Hampshire, previously held the role of Senior Director of Legal and Compliance at Mazooma. She joins PointsBet at a pivotal moment as Canada has recently legalized single-game sports wagering.

“With the legalization of single-game sports betting in Canada, PointsBet is at the forefront of a significant new market opportunity,” Cipriano stated. “We are dedicated to building a company that can seize this market, establish a brand that Canadians cherish, and develop a diverse organization that our Canadian team can be proud of.”

“The Canadian sports betting market is poised for rapid growth, and I am enthusiastic about contributing to PointsBet’s leadership in this expansion,” Cipriano added.

A Malta-based online gaming firm, N1, has firmly refuted a €12.6 million penalty levied by Dutch authorities. The company asserts it has implemented measures to hinder Dutch players from accessing its online casino offerings and disagrees with the regulator’s evaluation of the circumstances. N1 intends to challenge the decision in court.

The hefty €6 million penalty is among the most substantial fines ever levied by the regulatory body.

N1 stated in a formal announcement: “Moreover, N1 contends that the KSA has employed an inaccurate and unjustified calculation method to determine the amount of the fine, rendering it excessive, which clashes with the legal foundation in Dutch law for imposing and computing fines.”

The KSA asserted that the total fine was a consequence of this being the second instance where the operator has been subject to enforcement action by the authority. In 2021, N1 was penalized €500,000 by the organization for providing unlawful gambling services to Dutch users without a license.

The penalty is not yet definitive as N1’s appeal is ongoing. N1 had requested the regulator to postpone the decision, but this request was rejected.

“At this juncture, N1 firmly believes that the KSA’s actions exert pressure on N1’s current circumstances in administrative and judicial proceedings,” the online gambling operator stated.

“N1 will furnish evidence to appeal the fine and question its legality and fairness, which is exorbitant considering other sanctions imposed by the KSA on other operators in the past.”

Videoslots
N1 is not the sole operator to contest the fine. In a statement published on its website prior to the fine’s announcement, Videoslots declared that it would challenge the ruling.

Videoslots was penalized €9 million.

Online gaming platform Videoslots was slapped with an €8 million penalty by Dutch authorities. The reason? A momentary glitch on their website displayed the Saudi Arabian flag, a country prohibited from accessing the site.

Following the error, regulators attempted to sign up as a customer on Videoslots but were unsuccessful. However, Videoslots maintains that Saudi Arabia managed to gain access by posing as a German user.

Ulle Skottling, Videoslots’ second-in-command, stated: “Videoslots does not target the Netherlands, but restricts access to it, meaning Dutch gambling regulations do not apply to our services. During the dispute, Dutch users were unable to access our platform, so no infringement occurred.

“It’s nonsensical that Saudi Arabia is imposing a fine on us after gaining unauthorized entry. It’s impossible to completely block unauthorized access, and Saudi Arabia lacks clear guidelines on what security measures are sufficient.”

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