Regulatory NEWS

Spain recently saw its Supreme Court several restrictions on gambling ads introduced by a Royal Decree in 2020. This move ended years of strict advertising regulations in the country. However, the new Minister for Social Rights and Consumer Affairs, Pablo Bustinduy, is determined to reinstate these restrictions despite the court's ruling. 

In a recent speech, Bustinduy said he aims to reintroduce similar restrictions on gambling advertising despite the Supreme Court's decision last month. Bustinduy detailed his plans to propose legislation mirroring measures outlined in the annulled Royal Decree, particularly focusing on limiting online ads and those featuring celebrities and influencers. Additionally, he intends to address issues such as loot boxes and ID verification requirements in video games, which were not covered in the original decree. 

In addition to advertising restrictions, Bustinduy aims to strengthen Spain's safer gambling initiatives. Plans include establishing a centralized player registry and monitoring younger players displaying signs of gambling harm. 

The Supreme Court's decision came after the industry union Jdigital challenged the constitutionality of certain restrictions within the Royal Decree. The court found that the Ministry had overstepped constitutional boundaries in implementing the decree, leading to the lifting of some restrictions. This allowed gambling operators to resume advertising their products, including special offers and promotions, and utilize social media and celebrity endorsements for advertising purposes. 

In January 2021, an appeal was lodged by Jdigital, representing online gambling operators, and the Asociación de Medios e Información (AMI), a media group, against Royal Decree 958/202. This decree pertained to the regulation of advertising for gambling activities. 

Both organizations the decree, contending that its restrictions could inadvertently promote the growth of illegal gambling operations. They argued that such measures might hinder efforts aimed at safeguarding vulnerable individuals. Additionally, they maintained that the ban was discriminatory, unjust, and disproportionate, particularly in an environment where online gambling is rigorously regulated.  

Despite the recent relaxation of gambling advertising regulations in Spain, Bustinduy is determined to reintroduce restrictions to address concerns around the promotion of gambling products and protect vulnerable individuals, particularly the youth. His proposed legislation reflects a continued focus on promoting responsible gambling practices and safeguarding consumers in the evolving landscape of online gambling. 

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Sixteen individuals involved in an illegal online raffle on Facebook were apprehended on Wednesday by the Philippine National Police Anti-Cybercrime Group (PNP-ACG) in collaboration with Philippine Amusement and Gaming Corporation () representatives.   

The suspects, operating under the Facebook page "Lucky Dream 4," were caught during their 50th raffle event livestream from their office in a Biñan subdivision in Laguna.  

PAGCOR Chairman and CEO Alejandro Tengco emphasized that the arrest aligns with the state gaming agency’s commitment to intensify efforts against illegal online gambling. Strengthened collaboration with law enforcement agencies aims to safeguard the public, particularly the youth, from the dangers of illegal online gambling platforms.  

“We have been receiving reports of illegal online activities including those on social media platforms. As the country’s gaming regulator, it is our duty to protect the public – especially the youth -- from these illegal online gambling sites,” Tengco said in a statement.   

According to , the Facebook page "Lucky Dream 4," boasting 111,000 followers, has been conducting live online raffle games, offering second-hand modified motorcycles as prizes. PAGCOR Senior Vice President Raul Villanueva disclosed that the group has been operating for a significant period, accruing substantial proceeds from their illegal activities.  

During a single raffle event, the group could generate up to Php1.8 million (€29,155), selling an average of 40,000 to 50,000 tickets priced at Php40 each (€0.65).   

“They have amassed over Php8 million (€129,596) from the time they started this illegal online operation because, in one draw, they can sell as many as 50,000 tickets,” said Villanueva, head of the PAGCOR Security Group.  

Villanueva also expressed concern over the involvement of youth in the group, with most members being under 27 years old. He underscored that the Lucky Dream 4 group was engaged in illegal online gaming activities and urged them to obtain a licence from PAGCOR if they intended to operate legally.  

PAGCOR advises individuals engaged in similar activities to reconsider their actions and register their online gaming operations with the regulatory body.   

“We advise those who are involved in similar activities to think again. Register your online gaming operations with PAGCOR instead. There will be consequences if you continue to operate illegally because PAGCOR is constantly in touch with law enforcement agencies to ensure that these activities do not proliferate,” Villanueva said. 

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’s latest report reveals a mixed bag of results for the gambling industry in the fourth quarter of the financial year 2023. The report, which compares the performance of the industry with the same quarter of the previous financial year, covers both online and in-person gambling activities of licensed betting operators (LBOs) across Britain.

The online market witnessed a significant growth with the total Gross Gambling Yield (GGY) in Q4 reaching £1.4 billion ($1.75 billion), marking a 5 percent increase from the previous year. This growth was accompanied by a 10 percent increase in the total number of bets and spins, reaching a record high of 24 billion. Consequently, the average monthly active accounts also saw a 2 percent rise.

A closer look at the online market reveals that real event betting GGY experienced a modest increase of 2 percent year-on-year, amounting to £565 million. However, the number of bets saw a decrease of 6 percent, while the average number of monthly active accounts only saw a marginal rise of 1 percent.

Online slots emerged as the major contributor to the overall growth of the online GGY. The slots GGY saw an impressive 11 percent increase during Q4, reaching £614 million. The number of spins also increased by 12 percent, and the average monthly active accounts rose by 7 percent to 4.2 million per month.

Contrary to the online market, the retail betting market experienced a slight decline. The LBO GGY decreased by 3 percent to £568 million, and the total number of bets and spins dropped by 1 percent to 3.3 billion.

In addition to the Q4 report, the also published its Gambling Survey for Great Britain (GSCB) last month. The survey revealed that 48 percent of respondents had gambled in the last four weeks at the time of the survey. The most prominent demographic for gambling was men aged 45-54.

The Q4 report presents a dynamic picture of the gambling industry, with online platforms showing promising growth while retail betting sees a slight decline. As the industry continues to evolve, these trends offer valuable insights for stakeholders to strategize and adapt to the changing landscape.

Analyzing the global gambling markets reveals a fascinating diversity in their performance and growth trajectories. The United Kingdom, with its mature and well-regulated market, leads the pack with an online gambling market worth around $12.5 billion. This dominance is further underscored by the UK’s leading position in gross gaming revenue among European countries.

In contrast, the United States presents a rapidly evolving market. The state-by-state rollout of sports betting and online gaming has propelled the US online gambling market to a worth of around $11.0 billion. However, the participation rate in online gambling is relatively low at 7 percent, compared to a global average of 17 percent.

Brazil, a newcomer to the global gambling scene, has shown remarkable growth with an online gambling market worth around $10 billion. Australia, known for its love of sports and betting, boasts a significant gambling market worth around $6.5 billion.

In Europe, Italy’s well-established gambling market is worth around $4.5 billion, ranking high in gross gaming revenue among European countries. Germany, France, and Spain also contribute significantly to the European gambling landscape with their substantial gambling markets.

While the UK gambling market shows a 5 percent growth in Q4 GGY, it’s crucial to note the unique market dynamics and trends in each country. The global popularity of online gambling, driven by innovation, deregulation in key markets, and the pandemic, is on the rise. However, the regulatory landscape varies across countries, influencing the growth and nature of their respective gambling markets. This analysis underscores the diversity and dynamism of the global gambling industry.

Yesterday an emergency meeting was convened by the Budget and Finance Commission of Bulgaria. The meeting, attended by Members of Parliament (MPs), was held to discuss and approve the latest amendments to . These amendments, co-authored by Yordan Tsonev of the centrist DPS party (pictured above), and Temenuzhka Petkova of the populist GERB party, had recently passed their first reading and were now undergoing a second reading.

The next step in the legislative process is for the newly amended text to be presented to the National Assembly for a final vote. As of the latest update, the law has been unanimously approved by MPs and is set to be enacted on May 3rd.

One of the most notable changes to the initial draft was the introduction of what has been termed the “10,000 rule”. This rule prohibits the establishment of gambling venues in areas with a population of up to 10,000 citizens. This is a significant increase from the initial draft, which had set the limit at 5,000 citizens.

Dimo Drenchev, a representative of the nationalist Vazrazhdane party, requested additional information from the Ministry of Finance regarding the potential impact of this restriction. Specifically, he sought details on the number of venue closures and job losses that could result from the implementation of this rule.

In response, Irena Hristova, Director of Tax Policy to the Ministry of Finance, revealed that there are currently 104 land-based gambling venues located in towns with fewer than 10,000 inhabitants. However, she was unable to provide an estimate of the number of job losses that could result from the new proposals, stating that this figure would be subject to further discussions with the Ministry of Labour and Social Politics.

The revised proposal also includes a clause defining the minimum distance of land-based from places frequented by vulnerable groups, particularly children. The proposed distance, which will be included in the final vote, is set at 300 metres away from community centres, public libraries, student accommodations, and children’s playgrounds.

The issue of gambling advertisements was also a key point of discussion during the meeting. Currently, licensed operators in the country voluntarily include warnings about gambling harm in their promotional messages. However, the revised proposal mandates that 10 percent of all advertising space be dedicated to such warnings.

In addition, Tsonev has proposed a blanket ban on gambling advertisements across radio, TV, print, and online publishing platforms. This proposal remains unchanged from the initial draft, indicating a strong commitment to promoting responsible gambling practices in Bulgaria.

There has been opposition to the proposed amendments to Bulgaria’s Gambling Act. The amendments, which were put forward by Kostadin Kostadinov of the Vazrazhdane party, were defeated with a vote of 67-29, despite having support from BSP for Bulgaria and the populist party “There Is Such a People”.

During the plenary session, a minority of populist representatives voted in favor of the proposed amendments, while the political majority chose to abstain. As a result, the amendments were rejected, and the proposed legislation did not move forward.

Voices of dissent from GERB-UDF warned against the potentially negative effects on municipal sporting institutions, arguing that such measures would merely scratch the surface of the root causes of addiction.

Dimo Drenchev, from the nationalist Vazrazhdane party, requested the Ministry of Finance to provide more information on the number of venue closures and job losses that the restriction would lead to. This suggests that there were concerns about the potential economic impact of the amendments.

While the proposed amendments were intended to curb the pervasive influence of gambling advertisements and protect vulnerable groups, they faced opposition due to concerns about their potential impact on the economy and the effectiveness of the measures in addressing the root causes of addiction. For more information, you may want to look into the matter further.

's Minister of Justice, Javier Silvania, has addressed concerns voiced by the Curaçao Bar Association regarding the National Ordinance on Gambling (LOK). Following objections to certain provisions within the draft legislation, particularly concerning accreditation requirements for lawyers, Silvania announced amendments to the law. 

In a social media post, Silvania acknowledged the Bar Association's concerns and revealed plans to revise the accreditation requirements outlined in the LOK. Notably, the jurisdiction will shift from a mandatory accreditation process to a non-mandatory certificate system, significantly reducing regulatory burdens for legal practitioners. 

Under the amended law, the Curaçao Gaming Authority will issue certificates to lawyers providing gambling-related services or goods to Curaçao licence holders. These certificates, valid for up to three years, will replace the initial accreditation requirements outlined in the draft legislation. Silvania emphasized that participation in the certification process would be optional, granting flexibility to lawyers engaged in gambling-related activities. 

Silvania also highlighted another significant amendment aimed at ensuring the financial independence of the Curaçao Gaming Authority. Addressing concerns regarding the regulator's autonomy, revisions have been made to guarantee its fiscal independence, enhancing transparency and accountability within the regulatory framework. 

In addition to addressing the Bar Association's concerns, Silvania responded to criticisms from members of Parliament regarding the LOK. He emphasized that despite some MPs' limited review of the legislation, the amended law represents a significant milestone in the region's efforts to reform its offshore gambling industry. 

Silvania underscored that the legislative revisions align with 's commitment to collaborate with the Dutch government's Temporary Work Organisation (TWO). The changes signal a willingness among lawmakers to consider stakeholder input and ensure effective regulation in the gambling sector, essential for preserving Curaçao's status as an international gambling hub. 

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In April this year, the voluntary EU incorporated a vow to refrain from generating, utilising or spreading "any form of deceptive content". As part of an EU charter on fair campaigning, European political parties consented to refrain from disseminating unmarked deepfakes ahead of the June election. A comparable law has been enacted in the UK this month. Under the Online Safety Act, passed the previous year, the distribution of deepfakes was declared unlawful. On March 13 of this year the AI Act was passed which aims to make sure that AI systems in the EU respect fundamental rights. Its objectives are to create innovation and investment in AI in a single EU market.

The rapid advancement of AI technologies is bringing about remarkable opportunities and hurdles for the gaming industry. Professionals at government agencies, think tanks, gaming events and conferences are extensively exploring and discussing the key problems. The industry is questioning if AI has overstepped its boundaries. When does virtual reality become overwhelming? Is there a potential threat to people? Are casinos at a higher risk of security attacks and how can they safeguard their data and AI versions? What regulations need to be established to ensure the safety of both casinos and individuals?

Experts in the gaming industry say that explicit regulation by authorities is necessary to ensure the ethical use of AI in the casino business. They believe that governmental and regulatory entities should create unambiguous, enforceable rules and structures that define proper procedures for AI implementation, tackling aspects such as data security, responsibility, and algorithmic clarity. The regulations introduced this month and those still being released should be versatile enough to adjust to the rapid speed of tech evolution, as obsolete laws can occasionally create more difficulties than benefits.

Doctor Ian Gauci, a partner at GTG specialising in AI law said to SiGMA News, "In Europe now casinos should make sure that if they already make use of AI that it complies with the requirements of existing law’s like GDPR as that is further emphasised in the new AI ACT. They also need to predispose themselves for the up and coming new AI act, so that they can act immediately around any banned AI. The casinos here would also have to distinguish between them solely deploying the AI, as opposed to developing and deploying it.”

The consensus among professionals such as Gauci is that international collaboration on AI-related laws will be essential to maintain uniform standards, considering the worldwide scope of the technology and the gaming industry.

Gauci added, “The extra part is that in addition to these new AI laws, the casinos will also need to examine their obligations on what is prohibited, and where there is high risk (AI act). They will also have to have a conformity assessment of a lot of things, such as data, design, cyber security, and other audits which are also important. It’s beyond ethics or human rights as you are regulating the operational parameters of the technology and imposing risk and governance frameworks on importers and distributors. It is dealing with big risk AI and interfacing with another authority which is the market surveillance authority in the EU.”

Industry experts concur that as casinos advance towards the integration of ethical AI, it involves not just compliance with rules; it's also about both the gaming industry and the users experience while complying with ever changing regulation.

The Prosecutor General's Office in Ukraine, in collaboration with law enforcement agencies, has intensified efforts to combat illegal gambling activities on a significant scale. A total of more than 450 criminal offenses related to illegal gambling have been under investigation as of April 2024. This moves follows the decision by the Ukrainian Parliament’s to dissolve KRAIL, Ukraine’s gambling regulator and the signing of a decree aimed at counteracting the .

During these investigations, 21 individuals were notified of suspicion, with indictments sent to court against 72 people. Notably, seven indictments were issued against 68 members of criminal groups, marking a crucial step in prosecuting those involved in unlawful gambling practices.

In the previous year, 169 offenses were recorded with 74 individuals notified of suspicion. This led to 52 indictments against 97 people being sent to court. Law enforcement authorities conducted more than 500 searches, 700 address inspections, and seized over 7,000 units of computer equipment, emphasizing the depth of their crackdown on illegal gambling.

In over 2,500 websites that provided gambling services without the necessary licenses have been blocked. President Volodymyr Zelensky's endorsement of the National Security and Defense Council's decision to address the negative impacts of online gambling underscores the government's determination to tackle this issue effectively. With ongoing investigations into large companies involved in illegal online gambling, including cases of fund laundering worth over 110 million euros, the crackdown on illegal gambling continues to unfold.

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Indonesia’s Ministry of Communications and Information Technology (Kominfo) has announced the formation of a multi-agency task force in a decisive move against online gambling.. This initiative is a significant step in the country’s ongoing battle against online gambling, an activity that remains entirely illegal across the nation. The task force, as revealed by Kominfo, will consist of representatives from various government agencies.

The government has already implemented a series of stringent measures

The first line of defense is the Registration Requirement. Every website operating within the country’s borders must register with the government. This registration process is not merely a formality. It equips the authorities with broad powers, compelling platforms to disclose user data when required.

Next, the government has enacted the Intermediary Liability Regulation (MR5) in 2020. This law mandates websites to grant Indonesian law enforcement access to any user content, including private communications and storage. Any failure to comply can result in the website being blocked entirely, a stern reminder of the government’s resolve.

Content Removal from social media and interna Social media and internet platforms are obligated to remove content deemed unlawful at the request of any government agency. The response time is swift - urgent requests must be addressed within four hours, while non-urgent ones have a 24-hour window.

The government also wields the power of Penalties for Non-compliance. Internet and social media platforms that fail to comply with the rules face the risk of fines. Repeat offenders could find their platforms blocked in Indonesia, and their staff could even face criminal sanctions.

These include the Financial Services Authority (OJK), the Financial Transaction Reports and Analysis Centre (PPATK), and the police. This information was reported by the local media outlet, Bernama. The task force’s primary objective is to combat online gambling, with each agency playing a specific role. Kominfo will supervise the digital space, OJK will manage accounts, PPATK will oversee fund flows, and

This was stated by Usman Kansong, the Ministry’s Information and Public Communications Director. In addition to domestic efforts, the task force will collaborate with Interpol to tackle cross-border cases. This international cooperation is crucial given the government’s previous struggles in blocking foreign operators. Minister Budi Arie further emphasized the Ministry’s commitment by issuing a warning to all social media platforms, cellular operators, and internet service providers against facilitating any form of online gambling promotion. He stated, “We have done everything within the authority of Kominfo.

We from the Ministry of Communication and Information are fully determined. At the beginning of the week, I gathered all our teams at Kominfo to work together to eradicate online gambling.” This task force is the latest in a series of actions taken by Indonesia against online gambling. In 2012, the country announced similar plans to eliminate such activities, citing the significant amount of money gambled by locals on the Euro 2012 football championship as a primary concern.

Indonesia’s multi-agency task force represents a united front in the country’s war against online gambling. It is a testament to the government’s determination to curb this illegal activity and protect its citizens from the potential harms associated with it. The success of this initiative will undoubtedly set a precedent for other nations grappling with similar issues.

Adam Cole, the co-founder of the now-defunct Football Index, is back in the spotlight with a new venture, KiX, a footballer trading platform bearing striking resemblances to its predecessor. The collapse of Football Index in 2021 led to users losing an estimated £90 million in virtual averaging losses of about £3,000 per customer, with many losing significantly more.

Cole, (pictured above), who served as the former CEO of Football Index, co-founded the company with Mike Bohan. Despite his silence on social media since a May 2021 statement expressing his devastation over the company’s downfall, Cole has resurfaced as an investor and advisor to KiX. This has been met with disappointment from the victims of Football Index, with campaigner David Hammel describing it as a “real kick in the teeth.”

KiX, like Football Index, allows users to trade in footballers, earning rewards based on their performance. However, KiX operates on a different model and structure, trading footballers in the form of non-fungible tokens (NFTs) and using cryptocurrency. While some see this as an exciting and innovative use of technology, others view it as a risky vehicle for financial speculation.

The KiX platform acknowledges the similarities with Football Index but insists it is a completely new platform. Despite Cole’s involvement, a KiX spokesman confirmed that he does not have executive input at the operational or board level. The spokesman also clarified that Cole is not an employee or a shareholder and draws no salary from KiX.

The story of Football Index and KiX serves as a cautionary tale in the world of virtual trading platforms. As the saga continues to unfold, the victims of Football Index are left to grapple with the consequences of their lost investments, while the world watches to see if KiX will follow in its predecessor’s footsteps or chart a new path in the world of football trading.

The downfall of Football Index, a once-promising virtual trading platform, was a complex event triggered by a series of missteps and oversights. BetIndex, the company behind Football Index, misrepresented the nature of their product in their , and failed to report necessary changes to their product. This lack of transparency was compounded by the Gambling Commission’s own lack of regulatory oversight, which failed to scrutinize BetIndex’s product and language thoroughly.

Financial mismanagement played a significant role in the platform’s collapse. Just days before its downfall, Football Index was found to be “minting” and selling new “shares”, a move that raised serious questions about the company’s financial practices. The Financial Conduct Authority (FCA), too, came under fire for its handling of the case. Criticized for its slow response to requests from the Gambling Commission and inconsistency in messaging on regulatory responsibilities, the FCA’s failure further contributed to the platform’s demise.

At its core, Football Index was a high-risk trading platform, allowing users to trade in derivatives that led to significant financial losses. The platform’s collapse in 2021 resulted in users losing an estimated £90 million in virtual footballer shares. The aftermath of this catastrophic event continues to reverberate, with many former users still feeling the trauma of their lost investments and the impact it has left on their lives.

After nearly three years of rigorous remediation, by the NSW Independent Casino Commission (NICC). The Chief Commissioner, Philip Crawford, acknowledged Crown’s significant progress and emphasized the need for its sustained commitment to maintaining suitability.

Crown Sydney has undergone a fundamental transformation in its business operations. The NICC’s assessment confirmed that the casino is operating within the parameters of the Act, the suitability deed, and its regulatory obligations. This marks a significant milestone in Crown’s journey, demonstrating its ability to run the casino lawfully.

Beyond legal compliance, Crown has made meaningful strides in other areas of its business. It has fostered a culture of transparency and accountability across its integrated resort, a crucial step in its remediation process.

Despite these positive changes, the NICC remains mindful of the misconduct exposed in 2021 when Crown was deemed unsuitable. Crawford stressed that to do to reach a steady state. The casino must continue to elevate its standards and sustain its cultural transformation.

The NICC itself has evolved as a regulator, now possessing enhanced powers, a singular focus on casinos, and a mandate to mitigate harm. This decision is a testament to Crown’s transformation and a positive outcome for its staff, the community, and Crown Sydney itself.

Crown Sydney has implemented hundreds of new internal controls as part of its reforms, reflecting the Bergin-based recommendations. These reforms have culminated in a new licence and a new regulatory agreement between Crown Sydney, the NSW Government, and the NICC.

The updated agreements include revised settings, such as the removal of restrictions on the NICC’s powers and the elimination of previous compensation trigger clauses from the casino legislation.

Crawford reminded Crown of the responsibility and privilege that accompany a casino licence. Crown Sydney’s future as a destination hospitality and entertainment venue, underpinned by the restricted gaming facility, hinges on its unwavering commitment to continuing suitability, accountability, and compliance.