The World’s Online Gambling Authority

As Australia continues its attempts to regulate the acute issues leading to problem gambling within its borders, further responsible gaming failures continue to come to light.

Now undoubtedly a major policy issue, problem gambling and gambling addiction in turn is having a heavy impact on the Oceanic commonwealth. 

Nearly 80 percent of Australians partake in gambling activities with the most at-risk demographic being males between the ages of 18 and 35. 

What’s more worrying, however, is that almost half of all Australians who participate in gambling activities are at risk of experiencing some kind of gambling-related harm.

Efforts to curb problem gambling

In lieu of this, Australia is undergoing a heavy regulatory restructuring in order to address these increasingly out-of-control issues.

Subsequent to a parliamentary inquiry specifically aimed at curbing harms from online gaming, 31 recommendations have been made to encourage responsible gaming and mitigate gambling harm.

These have most notably included a self-exclusion register known as BetStop and a ban on credit cards for gambling purposes, previously only applicable at land-based venues, extended to all online gambling among any other forms.

These efforts are yet to be properly reviewed due to how early in their inauguration they are. Aside from this, however, several issues remain unattended to as of yet.

Fines for underage gambling

Subsequent to the implementation of the newest measures from the parliamentary inquiry, Gambling operator Tabcorp was accused of failing to prevent a 16-year-old from gambling at several of their venues in nearly 31 instances. 

Aside from Tabcorp’s clear negligence in adequately monitoring their venues for underage gambling or establishing effective age verification methods, this displays just how deep gambling penetrates into the culture of the nation. 

This is perhaps an issue as significantly perpetrated by advertisers as it by operators themselves.

CEO of New South Wales operator Wicked Games, Darryl Manning, gave an exclusive statement to SiGMA group when he explained that this sort of oversight would not occur in the currently outlawed online casinos of Australia.

He suggests that player protections are far more robust online than they are in land-based operations:

“If the pundits wanted to get real about problem gambling, why not allow online slots. After all, the tools that are currently being developed to protect the online player are far more robust, and far more capable of identifying a player’s means or curtailing certain behaviour, than those applied to land-based Gaming.”

Considering these improved protections, problem gambling could be curbed by offering a more diverse marketplace with a new influx of far safer products in the online space.

Gambling advertising

When focusing on gambling advertising, the various states comprising Australia are in agreement and are keen to enact a ban or at least a restriction on gambling advertising.

South Australia

In South Australia there is already a gambling ban in place for television that includes a blackout between 4 pm and 7.30 pm on Monday and Friday with a similar blackout in effect for radio between 6 am and 8.30 am on the same days.

This is still not believed by many to be a strong enough band with South Australia submitting in favour of a total prohibition on gambling advertising on television, streaming services and social media. 

Shane Rattenbury, the Australian Capital Territory’s attorney general, has also stated that he wishes to see his jurisdiction follow suit. 

Queensland

In Queensland, the government has made several statements noting that gambling promotion is “obtrusively delivered through television broadcasts” touting its own support for a ban on gambling inducement. 

Although gambling advertising is already restricted in the territory, PG programmes between the family-friendly hours of 7 pm and 8.30 pm are unfortunately “saturated with gambling advertising”.

A national issue?

This issue has been a point of contention for quite some time now. The states previously mentioned among some others are in favour of a national approach issued throughout the commonwealth. 

However, some other states, most notably New South Wales, have submitted in support of the current system as the regulatory bodies there believe this is a matter for states and territories separately.

These states have stated that this preference stems from the competitive tension this creates, allowing states to adopt the most optimal policies based on the variety of data provided by their peers. 

Operator stance

Although most operators in Australia would disagree with gambling advertising being subject to a complete prohibition, there is some agreement in that effective restrictions should be implemented with scrutiny placed on the ethical values of advertisers. 

Manning also weighed in on this particular issue, expressing how he believes that the onus should be on advertisers to dissuade any players at risk.

In his statement, he suggested: 

“One way would be to allot a portion of the advertising budget to this audience. Maybe the last third of a video ad or the bottom third of a pictorial could be dedicated to seriously addressing the issue. Not just a 5-second Speed talker.”

Join us in Malta between the 13 – 17 November for SiGMA Europe 2023

SiGMA Europe’s Malta Week festival brings together a diverse and international group of industry leaders for a convergence of expo, conference, and networking. The event will be held at the Mediterranean Maritime Hub (MMH), a larger, more dynamic venue that promises a raw, industrial, and unconventional space unlike anything ever used before.

In the words of SiGMA Group founder Eman Pulis, “We’re redesigning your entire experience, from the minute you land in Malta until the very last moment. I look forward to welcoming you with open arms to this iGaming festival.”

Find all the details here.

https://youtu.be/74qQqvlVmy0

A Mexican gaming draft decree that would outlaw all gaming machines and casino-style games in Mexico is facing stiff opposition from Mexican operators, union groups, and local and international associations.

On September 7, SEGOB unexpectedly released a draft regulation which aims to reform and repeal various provisions of the 2004 regulatory decree. The draft regulation aims to eliminate slot machines and reduce the duration of casino permits. The reforms included in the draft will revoke the articles of the 2004 regulatory decree which establish permits for casinos to operate slot machines. The decree will also reduce the validity of casino permits from 25 years to 15 years.

Additionally, the proposed draft would expressly outlaw any games involving slot machines, dice, cards, or roulette wheels, effectively destroying Mexico’s 400+ de facto casinos once their operators’ licenses run out and the new laws are fully implemented.

Feedback from stakeholders

Over 140 individual comments on the draft legislation have been received after it was posted on CONAMER website (the National Commission on Regulatory Improvement), with the vast majority voicing vehement opposition to the draft that poses a serious threat to the industry’s survival. The proposed changes would not decrease the demand for casino gaming, various Mexican gambling operators have cautioned in their feedback. The changes would merely result in illegal, unregulated practices, beyond control or verification.

Representatives of union groups that represent employees in the services industry warned in their feedback that the draft puts in serious jeopardy the estimated 50,000 direct and 120,000 indirect jobs provided by Mexico’s licensed gambling halls.

Comments on the draft have come from Las Vegas, where several international gaming operators that cater to the Mexican market are situated. Professor Bo Bernhard of the University of Nevada, Las Vegas and gaming lawyer Frank Schreck advised the Mexican government to consider the good practices in the United States, Japan, and other nations in assessing the advantages of a well-regulated casino business and the risks and pitfalls of prohibition.

In Mexico, gaming is regulated by the Ministry of Interior (Secretaría de Gobernación or SEGOB), through its Gambling and Raffles Bureau (Dirección General de Juegos y Sorteos). The National Commission on Regulatory Improvement (CONAMER), within the Secretariat of Economy, is the agency responsible for streamlining federal and sub-national regulation.

Join us in Malta between the 13 – 17 November for SiGMA Europe 2023

SiGMA Europe’s Malta Week festival brings together a diverse and international group of industry leaders for a convergence of expo, conference, and networking. The event will be held at the Mediterranean Maritime Hub (MMH), a larger, more dynamic venue that promises a raw, industrial, and unconventional space unlike anything ever used before.

In the words of SiGMA Group founder Eman Pulis, “We’re redesigning your entire experience, from the minute you land in Malta until the very last moment. I look forward to welcoming you with open arms to this iGaming festival.”

Find all the details here.

https://youtu.be/74qQqvlVmy0

MGM Resorts International and Caesars Entertainment, two of the hugest names in the Las Vegas casino industry, have found themselves embroiled in multiple federal class action lawsuits after experiencing cyberattacks that reportedly compromised customer data.

Court documents reveal that four lawsuits were initiated last Thursday, with two targeting each of the casino giants. Another lawsuit was filed against Caesars on Friday, and a sixth similar case was brought against both defendants in a New Jersey district court on 18 September.

Confidentiality compromised

At the heart of all these legal actions are data breaches. Plaintiffs assert that “unauthorized individuals” managed to infiltrate the resorts’ network systems, gaining access to the Personal Identifiable Information (PII) of resort customers.

One of the complaints, filed by Emily Kirwan against MGM Resorts, disclosed that the cyberattackers claimed to have exfiltrated a substantial six terabytes of data. This data reportedly includes the PII of the plaintiff and other class members, all taken from the defendant’s network.

The filing also pointed out that the defendant was aware of its vulnerability to such attacks, as its IT vendor, Okta, had warned of a “consistent pattern of social engineering attacks against IT service desk personnel.

Class members claim security measures not adequate

According to the lawsuits, the injuries suffered by the plaintiff and class members were directly linked to the defendant’s failure to establish or maintain adequate data security measures. Once PII is stolen, the fraudulent use of that information can lead to lasting damage for the victims, extending over several years.

The lawsuits also referenced the potential financial value of the stolen data, with criminals reportedly willing to pay significant sums for such information. The plaintiffs cited invasion of privacy and theft of personal information as real injuries. Furthermore, they expressed that the data breach had caused them “fear, anxiety, and stress,” further exacerbated by the defendant’s failure to provide comprehensive details about the data breach.

Companies were allegedly negligent

All six lawsuits against MGM Resorts and Caesars Entertainment allege negligence and breach of implied contract. The five complaints filed in Nevada additionally include counts of unjust enrichment. The plaintiffs are seeking monetary relief in various forms, including actual damages, statutory damages, punitive damages, and restitution.

As of now, MGM Resorts International has refrained from providing any comments regarding these legal filings. The situation continues to unfold as both companies navigate the legal challenges stemming from these cyberattacks.

Operation risk framwork

In the case if large enterprises such as these casino flagship establishments, establishing a robust operational risk framework is paramount for safeguarding against the growing menace of cyberattacks. This framework plays a pivotal role in the broader spectrum of enterprise risk management. It ensures that an organization’s cyber resilience framework aligns seamlessly with its overarching operational risk management strategy.

This alignment is not merely a procedural formality but a strategic imperative that are part of a due diligence process. Large enterprises usually recognize that common elements in policies, procedures and controls are instrumental in mitigating various risks, including cyber threats. As well as anability to detect, prevent cyberattack, the framework lays out guidelines for responding to cyberattacks effectively, fortifying the enterprise’s resilience in an ever-evolving digital space.

Related topics:

Stop Press: SiGMA CURAÇAO, held in association with the Ministry of Finance, is taking place from 25 -28 September.

A national controversy – no end in sight for Okada Manila

The Ministry of Tourism and Sports in Kazakhstan is set to recommend stricter rules related to public access to gambling venues.

In an announcement made by Vice Minister, Yerzhan Erkinbayev, he confirmed that his department is set to publish its recommendations on gambling protections in lieu of President Kassym-Jomart Tokayev’s demands.

These demands were outlined recently when the Kazakhstani President addressed the National Security Council stressing the great need for changes in Kazakhstan’s gambling regulations. 

The Recommendations

Amongst the proposals, Erkinbayev has endorsed Kazakhstan’s increase of the current gambling age limit from 21 to 35 years of age.

In a statement, Erkinbayev expressed his approval and highlighted the need to “end the manifestation of gambling addiction amongst Kazakh youth”.

He also pointed to the need to mitigate the negative consequences of the public incurring debt due to gambling addiction.

Another notable recommendation suggests that the Ministry should support new administrative responsibilities to ensure that under no circumstances will be present in gambling venues should they be underage.

The Ministry has also asked the Kazakh Police Force to draft new policies themselves in order to ensure the “criminal liability” of venues serving underage customers. 

Financial restrictions are also called for when related to participation in gambling will be imposed on individuals with overdue loans or financial obligations.

Lack of regulatory framework

As it stands, Kazakhstan has no dedicated framework to address gambling regulations only currently providing a limited set of regulations in certain provinces dating as far back as 2007. 

Currently, the list of recommendations amounts to 62 in relation to gambling and betting operations and activities. These are subject to Presidential review, however, no recommendation has yet been put forth to devise a specific gambling law for Kazakhstan.

Join us in Malta between the 13 – 17 November for SiGMA Europe 2023

SiGMA Europe’s Malta Week festival brings together a diverse and international group of industry leaders for a convergence of expo, conference, and networking. The event will be held at the Mediterranean Maritime Hub (MMH), a larger, more dynamic venue that promises a raw, industrial, and unconventional space unlike anything ever used before.

In the words of SiGMA Group founder Eman Pulis, “We’re redesigning your entire experience, from the minute you land in Malta until the very last moment. I look forward to welcoming you with open arms to this iGaming festival.”

Find all the details here.

https://youtu.be/74qQqvlVmy0