Regulatory NEWS

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.

Next SiGMA Event: Join us in Manila from the 2 - 5 June for SiGMA Asia. Find all the details .

Asia’s gaming pulse beats strong in Manila. This June SiGMA is gathering the best in business: from top government officials and seasoned c-levels to big name influencers – SiGMA Asia is leading the charge for change. Join us for an experience that promises to blow all other events out of the water.

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.

SiGMA Group Founder Eman Pulis met yesterday with Mr Plinio Lemos Jorge, President of the National Association of Games and Lotteries (ANJL), as well as members of the União Brasil Party - National President, Antonio Eduardo Gonçalves de Rueda, Advisor, Mariana Monteiro Fernandes de Carvalho, and Manuel Arruda, President of the Party. They were also joined by Vinícius Moraes De Carvalho, Investment Partner at Ikigai Ventures.  

In the words of SiGMA Group Founder, Eman Pulis, "It was a great opportunity to meet with some of Brazil’s most influential figures in the gaming and regulatory landscape and to share our plans at SiGMA with them. 18 months ago we launched a dream to set foot in the Americas and be one of the most significant conferences for the region - and not just for the sake of doing a conference but to lead the charge and raise awareness that regulated online gambling is the way to go."

“I see a very bright future - not only for the Americas, not only for Brazil, but especially for São Paulo.”

Speaking to SiGMA News, Mr Jorge commented that, "As president of ANJL, I can only thank, on behalf of the members, the receptivity of the SiGMA Group, through its president, Eman Pulis, during BIS SiGMA Americas."

"We spoke about the national scenario of the sports betting and online gaming market at a very important moment, in which Brazil structures the sector's regulations. My guests and I were impressed by the magnitude of the event, which confirms our country as a promising market."

"Mr. Pulis invited us to be present at other editions of SiGMA, including in other countries. There will certainly be new opportunities for us to keep on taking our vision of Brazil to the main global players"

Having assumed his role just a few weeks ago following the conclusion of outgoing President Wesley Cardia’s on-year term in office, Lemos Jorge, a prominent lawyer and former judge, brings a diverse skill set to his new role. His emphasis on active listening, collaboration, and transparency underscores his commitment to representing and defending the interests of ANJL members effectively.

Mr Jorge is a lawyer and partner at Lemos Jorge Advogados Associados, holds a Master’s degree in Tax Law from PUC-SP, is a doctoral candidate in Business Law, and a former judge at the Tax and Fees Court of the State of São Paulo. Read his interview with SiGMA News .

The União Brasil Party is a liberal-conservative political party in Brazil. The party was founded on 6 October 2021 through the merger of the Democrats (DEM) and the Social Liberal Party (PSL). The merger resulted in the biggest party in Brazil, and was approved by Brazil's Superior Electoral Court on 8 February 2022.

Philippine Senator Sherwin Gatchalian has urged the Bureau of Immigration (BI) to step up efforts in preventing foreigners engaged in illegal Philippine Offshore Gaming Operators (POGOs) from entering the country and setting up illicit operations. Gatchalian underscored the importance of the BI acting as effective gatekeepers against criminal elements exploiting the Philippines for illegal activities. 

The senator's call comes amidst growing concerns over -related crimes, including human trafficking. According to a report from the Philippine National Police (PNP), over 4,000 individuals were victimized in the first half of last year alone. Gatchalian emphasized the need for stringent measures to combat these criminal activities and protect the country's citizens. 

In response to these issues, Gatchalian has proposed a resolution to permanently ban illegal POGO operations, highlighting their associations with criminal elements. Despite ongoing licensing by the Philippine Amusement and Gaming Corp. (PAGCOR), Gatchalian argued for the cessation of such activities to safeguard the country's integrity. 

While some politicians and PAGCOR continue to support offshore gaming due to the revenue it generates and the jobs it creates, Gatchalian remained firm in his stance against illegal POGOs. He stressed the importance of prioritizing national security and combating organized crime over financial gains. 

Earlier this week, the Chinese Embassy in Manila its endorsement of the Philippine government efforts to address the underlying issues associated with POGOs. In a statement, the Chinese Embassy said that gambling in any form is illegal according to Chinese law. It also reiterated the crackdown on Chinese nationals involved in gambling businesses abroad, emphasizing the importance of abiding by local laws and regulations. 

Meanwhile, has announced plans to privatise its 45 casinos by the third quarter of 2025, anticipating significant revenue generation. This strategic move aims to offset state losses resulting from unpaid dues totalling about PHP2.2 billion (€35.6 million) from closed POGO companies, indicating the government's commitment to recouping losses while ensuring regulatory compliance. 

Upcoming SiGMA event: SiGMA Asia 2024, 3 – 5 June. Find all the details .

The sports betting compliance industry has experienced some M&A activity, with US Integrity and Odds On Compliance merging to form a new entity known as Integrity Compliance 360 (IC360). The merger was announced by sports tech venture capital fund, SeventySix Capital, earlier this week. By combining its resources and expertise, IC360 will enhance its offer with a comprehensive suite of services.

IC360 will offer a combination of integrity monitoring services, compliance advising, and products to serve clients from both companies. This includes t and international clients in Europe and Brazil. One of the services offered by IC360 recently flagged illicit betting activity With its broader client base IC360 is on its way to becoming a leading player in the industry.

Despite the merger, it will be business as usual for clients of US Integrity and Odds On Compliance. The original products of each firm will continue without interruption, now unified under the IC360 brand. This includes the Integrity Monitoring dashboard, PlayBook AI, and ProhiBet.

How are things going to change with this merger? For example, the collaboration on ProhiBet, a tool that monitors sports betting compliance for athletes and team personnel, is most definitely a sign of more innovative solutions to come that will shape the industry standards, particularly around transparency, accountability and ethical standards.

The merger of US Integrity and Odds On Compliance was initially announced last October, following the collaboration on ProhiBet, a tool that monitors sports betting compliance for athletes and other team personnel.

IC360 aims to be a one-stop shop of regulatory technology solutions and compliance expertise for the rapidly evolving sports betting and gaming industry. Wayne Kimmel, the managing partner of SeventySix Capital, stated that the merger is a significant event in the evolution of the sports, media, and entertainment asset class. He explained that IC360’s commitment to ensuring transparency, accountability, and ethical practices across the global sports betting and gaming industry, which is worth hundreds of billions of dollars,

The leadership of IC360 will comprise former executives from US Integrity and Odds On Compliance. Matt Holt, (photo above on left), the former CEO of US Integrity, will lead IC360 as CEO, while Eric Frank, (photo above on right) the former CEO of Odds On Compliance, will serve as President. Scott Sadin, (photo above centre), who previously served as COO of US Integrity, will take over as COO of IC360. Kimmel, the original investor in both companies, will serve on IC360’s board of directors.

Brazil is a beacon for global leadership said Stephen Crystal in a keynote during Bis SiGMA Americas.

A renowned figure in the gambling industry, Stephen shed light on the transformation of Brazil’s gambling market. From its unregulated beginnings, Brazil’s market is evolving into a structured, vibrant ecosystem, shaping new values, insights, and technologies in the global gambling industry.

Crystal explored the transformative journey of Brazil’s gambling industry, poised to become a global leader with a projected growth to $2.6 billion by 2026. The potential of Brazil’s vast player base, fuelled by a rich sports culture and the inclusive reach of sports broadcasting, is setting a new precedent for the global gambling industry under a regulated framework.

Brazil’s unique cultural fabric, rich with sports heritage, has set the stage for an unparalleled sports betting landscape. The historical use of free-to-play games and ‘bolões’ as part of the sports fan journey has laid the groundwork for a market ripe for regulated sports betting. This deep integration of sports betting into national culture suggests a model for engaging new markets, positioning Brazil to potentially lead globally in player numbers.

The enactment of Bill 3,626/2023 signifies a landmark shift, introducing a regulated framework that ensures player safety, market stability, and reinvestment into sports development. This clear legal framework is expected to attract both domestic and international investment, showcasing the importance of regulatory clarity for market maturity and investment in emerging markets globally. With a projected growth to $2.6 billion by 2026, Brazil’s market is set to become a global leader. The unprecedented scale of the potential player base, driven by Brazil’s deep-rooted sports culture and inclusive reach of sports broadcasting, provides valuable insight into the vast market potential awaiting under a regulated framework.

Brazilian bettors exhibit a strong preference for social and interactive gambling experiences, a trend reflective of the broader social dynamics of the country. The expected rise in demand for social features in betting platforms underscores the need for innovation around social engagement and community-building features, setting new trends for the global gambling industry. Crystal also delved into the significance of global sporting events, such as the FIFA World Cup, in amplifying the gambling market’s growth and visibility is also discussed. The article presents how Brazil’s engagement with these events serves as a strategic model for leveraging global phenomena to enhance market reach and engagement worldwide.

The current state of commoditized product offerings in Brazil presents a unique opportunity for differentiation. By understanding and catering to the highly social nature of Brazilian consumers, companies can unlock new value in market share and loyalty. This strategy for global markets emphasizes the importance of personalized and culturally resonant gambling experiences.

Compliance with Brazil’s regulatory requirements, including self-exclusion policies and facial recognition for age verification, illustrates the complex interplay between technology and regulation. Brazil’s approach serves as a model for implementing advanced technologies to ensure responsible gambling, enhancing user safety, and trust. Finally Crystal highlighted the profound lessons from Brazil's journey towards regulatory clarity and market maturity for the global gambling sector. Brazil's transformative impact of regulatory evolution, cultural integration and innovation in product offerings paves the way for the future of gambling across the globe, Crystal said.

Brazil’s engagement with global sporting events, such as the FIFA World Cup, amplifies the gambling market’s growth and visibility. This strategy for leveraging global events provides a roadmap for other markets to amplify their reach and engagement, highlighting the significant impact of sports events on market dynamics. As Brazil’s market continues to evolve, there’s a clear need for companies to adapt by offering innovative product differentiation beyond marketing and bonuses. The insights from Brazil’s market dynamics offer a strategic roadmap for entry into personalized, social entertainment-focused gambling experiences.

The operator of Adelaide Casino, , may encounter substantially heightened penalties, potentially reaching up to AUD75 million (€45.6 million) if found guilty of misconduct. This significant increase, proposed as part of an overhaul of South Australia's (SA) gambling laws, aims to hold the state's sole casino license holder accountable and align penalties with community expectations. 

ABC News quoted Australia’s Consumer and Business Affairs Minister Andrea Michaels as emphasizing the necessity to ensure fines serve as a genuine deterrent rather than merely a cost of business. The proposed legislation, to be introduced to parliament, seeks to not only raise penalties for criminal offences but also cover past and future conduct, enabling retrospective fines. 

The proposed changes follow the Australian Transaction Reports and Analysis Centre’s (AUSTRAC) allegations of systemic non-compliance against , including failure to carry out due diligence on numerous customers. SkyCity's decision to increase reserves for potential civil penalties from AUD45 million (€27.3 million) to $73 million (€44.4 million) underscores the seriousness of the matter. 

Acting Liquor and Gambling Commissioner Fraser Stroud highlighted the imperative of updating South Australia's legislation, citing penalties issued in other states exceeding AUD100 million (€60.8 million). The proposed amendments aim to enhance accountability and ensure appropriate regulatory oversight of casino operations. 

SA independent MP Frank Pangallo welcomed the proposed penalty changes, advocating for stringent regulation of SkyCity's operations. Opposition leader David Speirs acknowledged the need to modernize casino laws and expresses tentative support for the government's proposal, pending further review of the details. 

Consumer Affairs Minister Michaels affirms the government's commitment to consulting parliament on the proposed changes once the bill is introduced. The outcome of this legislative initiative will likely shape the future regulatory landscape for Adelaide's casino industry. 

Upcoming SiGMA event: SiGMA Asia 2024, 3 – 5 June. Find all the details .