Responsible Gaming NEWS

TheGaming Commission (NGC), the regulatory body overseeing the state’s gaming industry, convened for a pivotal meeting. The meeting, held at the Nevada Gaming Control Board Offices, was presided over by Hon. Jennifer Togliatti (Ret.), Chair, and attended by members Rosa Solis-Rainey, Ogonna Brown, Hon. Brian Krolicki (Ret.), and George M. Markantonis.

The meeting began with a public comment period, a testament to the NGC’s commitment to transparency and public participation. Notably, comments were taken regarding an invitation to celebrate the historic Moulin Rouge agreement, a landmark event in the history of Las Vegas. Additional comments were taken from members of the Culinary and Bartenders Unions regarding Station Casinos, reflecting the ongoing dialogue between the gaming industry and its workforce.

The Commission approved the prior month’s disposition for February 2024, setting the stage for the day’s agenda. The Commission then turned its attention to nonrestricted and restricted agenda items, demonstrating its comprehensive oversight of the gaming industry.

The Commission also considered new games and devices, reflecting the ever-evolving nature of the gaming industry and the NGC’s commitment to staying abreast of these changes.

The meeting then moved on to complaints. The Commission considered the Stipulation for Settlement and Order, settling the Complaint filed in the matter of the Nevada Gaming Control Board vs. The Donald J. Laughlin Gaming Trust, dba Riverside Resort & Casino, Case No. 23-01. The stipulation was adopted as the Order of the NGC, demonstrating the NGC’s commitment to enforcing gaming regulations and maintaining the integrity of the industry.

Finally, the Commission considered regulations for final adoption. This included the consideration of proposed amendments to NGC Regulation 6, allowing the Chair of the NGCB to establish Live Entertainment Tax Guidelines. The adoption of these amendments underscores the to ensuring that licensees that provide live entertainment comply with applicable guidelines, checklists, and other criteria established by the NGCB Chair.

The meeting concluded with the understanding that the disposition has not yet been approved and is subject to revision at the next meeting of the Nevada Gaming Commission. This reflects the NGC’s commitment to due process and its dedication to maintaining the highest standards of regulatory oversight in the gaming industry. If a revised disposition is not posted following the conclusion of that meeting, this document is deemed approved, marking another chapter in the NGC’s ongoing mission to regulate the gaming industry in Nevada.

The Swedish Gambling Authority (SGA) has imposed a significant fine of SEK100 million (€8.7 million) on the state-owned gambling operatorfor not fulfilling its responsible gambling obligations. An audit revealed that Svenska Spel inadequately protected customers showing signs of excessive gambling, despite the company’s claims of taking gambling problems seriously.

During the SGA’s review, which began in December 2021, it was discovered that all 10 of the most money-losing customers displayed excessive gambling behaviour. Svenska Spel had categorized nine of these customers as high-risk, yet failed to implement effective protective measures. The customers continued to gamble excessively, even after receiving safer gambling messages, which the SGA deemed insufficient.

Svenska Spel’s introduction of deposit limits and welfare calls to at-risk customers were also criticized for being either too high or too late to prevent gambling-related harm effectively. The SGA concluded that Svenska Spel did not take adequate steps to assist customers in reducing their gambling when necessary.

In response, Svenska Spel stated that it has been adapting its approach to gambling responsibility, incorporating legal changes and new insights. The company has since introduced additional checks for customers setting high gambling limits and extra protection measures for young customers aged 18-19.

The SGA’s decision to fine serves as a reminder of the importance of responsible gambling practices and the need for operators to actively protect their customers from potential harm. Svenska Spel is now considering whether to appeal the decision.

The Swedish government is set to introduce a new bill in April 2024, designed to increase consumer protections in gambling. The proposed law, submitted to the Riksdag (the country’s parliament), aims to combat gambling-related crime and protect consumers, according to Spelinspektionen, Sweden’s gambling regulator.

Under the new law, penalty fees will be increased for gambling companies that violate the Money Laundering Act. This is a significant change as currently, penalties for contraventions of the Money Laundering Act are lower than for violations of the Gambling Act.

In a move to counteract problem gambling, licensed operators will gain the right to access personal financial and health data provided by prospective customers. Additionally, consumers will be required to provide written confirmation before engaging in online gambling.

Legislation for gambling in Sweden is evolving quickly. Last year supplier licences came into force, and Spelinspektionen was granted new enforcement powers. In September, the government proposed a gambling tax increase from 18 percent to 22 percent of gross gaming revenue, set to be introduced no earlier than July.

These changes come at a time when growth in Sweden’s regulated gambling market appears to have stalled, with gross gaming revenue for example declining 0.6 percent year-on-year in Q3 23. Moreover, a report last month suggested that illegal gambling in Sweden has increased tenfold since 2019. The new law represents a significant step towards safer gambling practices in Sweden.

In a development that has stunned the global community of Asian sports enthusiasts, Dodgers Star Shohei Ohtani's interpreter, Ippei Mizuhara, has been embroiled in accusations of a significant financial betrayal. Ohtani's legal representatives have publicly condemned Mizuhara for allegedly diverting millions from the baseball prodigy to fund his gambling addiction. On Friday, Major League Baseball announced its investigation into the allegations surrounding Ohtani and his now ex-interpreter Ippei Mizuhara.

This scandal came to light following an investigation by the , which prompted Ohtani's legal team to examine Mizuhara's dealings more closely. Mizuhara's alleged connection with Mathew Bowyer, an individual currently under federal scrutiny for illegal bookmaking, has added a layer of complexity to the case.

Mizuhara, once a trusted member of Ohtani's inner circle, has faced immediate repercussions as the Dodgers severed ties with him on Wednesday. Details remain scarce, with Mizuhara unavailable for comment and uncertainty around his legal representation.

For Ohtani, who has been the symbol of excellence in Major League Baseball and a role model for sports fans, particularly in Asia, the implications of this situation extend beyond personal finances. Currently in Seoul for a series with the Dodgers, Ohtani has not given any statements on the matter. His focus, it seems, remains on the game.

This incident forms part of a larger investigation into a substantial illegal gambling ring, which has seen charges levied against multiple individuals, including former Dodger Yasiel Puig.

Ippei Mizuhara's connection with Ohtani dates back to their days in Japan. As Ohtani's personal interpreter since his move to the MLB, Mizuhara has been a fixture by Ohtani's side, a relationship that resonated strongly with fans who admired the close-knit duo. The current events, therefore, are a shocking twist in what many saw as a tight partnership.

Shohei Ohtani's trajectory in the MLB has been nothing short of meteoric, with his record-breaking contract reflecting his status as a global sports icon. This scandal, while personally affecting, is unlikely to overshadow the immense respect and adoration fans have for the player.

The South Korean series Squid Game, which skyrocketed to global prominence upon its release on Netflix, had fuelled a firestorm of ethical debates upon its release.

If you happen to be one of those who had ethical reservations about the series, you might not be too keen to try out a new slot game with the same name created by games creator Light & Wonder. Since the deal was announced, industry insiders have voiced their disapproval, such as Tomic's recent LinkedIn post (see below) and . The game, which, according to the creator’s website has a launch date for the EU and UK for the 27th of March, is Netflix’s first licensing deal in the casino and gambling industry.

At its core, the series presents a dystopian vision where desperate participants, crippled by financial woes, compete in deadly children's games for a chance at life-changing wealth.

The show is a stark reminder of economic disparity and the desperation it breeds. Participants of are driven to risk their lives due to debilitating debts and financial desperation, nothing short of commodifying their humanity in the process. This raises questions about the morality of a society that watches, either in fiction or reality, as the most vulnerable are exploited for entertainment. The contestants on Squid Game are mere pawns for the thrill of the elite, who watch and bet on their favourites. Just as the characters in the game join voluntarily, so do players on a slot, but just as in Squid Game, the notion of consent in such extreme circumstances is ethically murky; it asks whether one can truly make a free choice under the weight of dire economic or social pressures. This ties in with a broader discourse on responsible gambling and measures that should be in place to protect vulnerable players. Ironically, the main character’s addiction in Squid Game is gambling.

https://www.youtube.com/watch?v=Cz07byFm5jQ

Squid Game, much like the lion fights of ancient Rome, serves as a mirror to society's darkest fascinations and the ethical boundaries of entertainment. It challenges consumers to confront uncomfortable truths about human nature, societal structures, and the consequences of extreme disparity.  

The global fascination with Squid Game raises the issue of cultural export and the responsibility of content creators. Just as the Roman games reflected and reinforced the values of an empire, the international success of Squid Game places it as a cultural ambassador of sorts, with the potential to influence and reflect societal norms and values.

This ethical quandary inherent in both scenarios underscores the urgent need for a broader discourse on responsible gambling practices. As with Squid Game, where vulnerable individuals are pushed to the brink, the gambling industry must acknowledge its responsibility in safeguarding players from harm. Implementing robust measures to protect those susceptible to exploitation is essential in fostering a safer and more ethical gambling environment.

In the ongoing efforts to reshape the gaming landscape in Curaçao, the has announced stringent guidelines for operators ahead of a pivotal deadline on March 31. This deadline signifies a critical juncture for operators as the window for registering sub-licenses on the GCB's portal closes and applications for direct licenses under the current legislation, the National Ordinance on Offshore Games of Hazard (NOOGH), will no longer be entertained.

Operators looking to maintain their presence in Curaçao’s gaming market must finalise their registration by the deadline. The comprehensive guidelines, encapsulated in a detailed nine-page document, aim to provide operators with clear directives and requirements. A key provision mandates operators to ensure the accuracy and completeness of their license application submissions.

The guidelines stipulate the submission of three essential forms: the online gaming application form, the personal history disclosure form, and the corporate and business information form. Additionally, operators must strictly adhere to the specific conditions and policies outlined by the GCB, particularly concerning anti-money laundering (AML) and know-your-customer (KYC) procedures. Non-compliance with these regulatory mandates could result in serious legal repercussions for operators.

These guidelines emerge amidst a surrounding the transition to the new regulatory framework. Javier Silvania, Curaçao's Minister of Finance, has repeatedly emphasised the critical role of accurate information dissemination from credible sources in this transition.

The implementation of the new regulatory framework kicked off in September 2023 with the initiation of the application process via the GCB's online portal. Ongoing endeavours aim to underscore the benefits of the updated regulatory regime, which includes provisions addressing concerns related to AML and KYC procedures.

Primarily focusing on registrations under the NOOGH, the guidelines diverge from the impending National Ordinance for Games of Chance (LOK), currently advancing through Curaçao’s legislative channels. Upon the enactment of the LOK, the Curaçao Gaming Authority (CGA) will take on the role of the jurisdiction’s regulator, overseeing the issuance of all licenses within its purview.

Speaking at the recent SiGMA Africa summit, has spent the past three years revising its gaming laws, which are now in the final stages of legislative approval. Silvania emphasised the importance of strong laws that create fair markets, ensure accountability, and protect the vulnerable.

According to recent news, the President of Kazakhstan Kasym-Jomart Tokayev instructed the government to approve a comprehensive anti-compulsive gaming plan. The head of state announced this instruction at the National Kurultai meeting last week.

The National Kurultai, or, as it is called in Kazakhstan was created in 2022 on the President's initiative as an advisory body. It is a community of intellectuals, business representatives, civil activists, clergy and experts.

The President stated that the government should plan how to . At the initiative of the Amanat party faction, a bill was drafted which effectively made self-exclusion possible online. 

Tokayev claimed that about 400,000 citizens are regular bookmakers and casino customers, including an alarming number of minors. With a population of 20 million, this would amount to 2% of the population. He also made a furious speech about gambling harm. 

"Compulsive gambling brings untold misery, destroying thousands of families, pushing many into crime. Day after day there is news of people getting into debt because of gambling and taking their own lives. This addiction causes great harm to the young generation, online gambling is turning into an everyday leisure activity for children," the head of state said on the Kurultai meeting. 

Other news indicate great demand for gambling in Kazakhstan and, accordingly, tax revenue growth in the field. SiGMA News asked independent expert George Mamulaishvili, head of the , for a clarifying comment. 

"Unfortunately, some officials have repeatedly misled the public and the Kazakhstan government by using populism in their statements to raise their ratings with voters.

First and most importantly, it is a big mistake to claim that 400,000 young people are addicted to online gambling. The question arises, where do these statistics come from? No specific market study has been published yet. The data from a 2022 study in Kazakhstan doesn't confirm the fact that minors are gambling. I know that particular survey contained a general question about computer games, not gambling.

Secondly, if Kazakhstan operated bookmakers accept bets from the mentioned alarming number of minors, which is unlikely, these are the legislation and the gambling monitoring system's problems. If officials refer to illegal sites that operate in Kazakhstan, they confirm the fact that the statistics are not correct.

Finally, it is worth considering that the confirmation of compulsive gambling is a labour-intensive process that requires a thorough psychological study. Without this, it is impossible to say that all those players are addicts.

Stigmatization of the population is another mistake of officials. The category that really needs help hides its addiction owing to social rejection. People with gambling issues, on the contrary, need social integration for their further rehabilitation."

Legal operators - responsible gambling

"Many studies show that the percentage of gambling addicts in online gambling is lower than offline. There are many tools in the industry to guide consumers' actions. Implementing such tools in legal operators controlled by state authorities is much easier than fighting illegal operators.

The biggest problem that arises from bans is that illegal market develops proportionally. We know that only sports betting is allowed in Kazakhstan, and illegal operators and other criminal elements are getting interested in the gambling market. In contrast, the local legit operators' development allows to limit the underground ones. 

Prohibition does no good and the government should realize this", - stresses George.

First measures for self-exclusion

At the time of writing, on 18 March, Kazakh authorities introduced a digital self-exclusion service for citizens and residents, amid the government's pledge to take "a number of new measures to combat gambling addiction".

The request can be submitted via the eGov mobile application using a personal electronic digital signature. Previously, the request could only be submitted in paper form, which took up to eight working days.

In the fiscal year 2023, Transport for London (TfL) received £663,640 from gambling advertisements. This revenue stream is now under scrutiny as (pictured above), faces pressure to ban such ads, a commitment he made during his 2021 election campaign.

The urgency to address the negative effects of gambling ads has been highlighted by a cross-party report from the London Assembly’s health committee. Despite the mayor’s pledge, no significant steps have been taken to implement the ban. The delay is attributed to the lack of a clear definition of ‘harmful gambling’ from the government, which is necessary to avoid potential legal challenges.

Dr. Tom Coffey, the mayor’s health advisor, has assured that once a clear definition is established, they will act quickly. Meanwhile, the Greater London Authority (GLA) is conducting research into the health impacts of , with a 2022 commission indicating that a ban could reduce harm and address gambling-related inequalities.

Bristol City Council’s 2021 ban on gambling ads in council-owned spaces serves as a precedent, aiming to protect public health. Dr. Onkar Sahota, chair of the health committee, expressed concern over London’s high rate of problem gambling and its impact on families and children.

In defense, the Betting and Gaming Council pointed out the industry’s economic contributions and adherence to strict advertising guidelines. They also mentioned the government’s stance that there is no proven causal link between ad exposure and problem gambling development.

The debate continues as stakeholders weigh the economic benefits against the potential harm caused by gambling advertisements on London’s transport network.

Anti-gambling campaigners in the argue that a lack of regulation has allowed betting, especially online, to proliferate, leading to spiralling rates of harm, addiction, and even suicide, particularly among the young. MPs recently called for children to be shielded from the ‘bombardment’ by gambling ads at football grounds. One study found 7,000 gambling messages on billboards, shirt sponsorship, and in TV ad breaks in six matches on the opening weekend of the season.

The gambling sector rakes in £15 billion a year and attention was drawn to Bet365's founder and CEO Denise Coates who recently caused a stir after paying herself £271 million, even though the gambling giant swung into a loss last year. However, CEO of the UK Gambling Commission, Andrew Rhodes, does not see himself as a profits regulator. “The industry can make as much as it wants as long as it is according to licensing objectives, if it’s not targeting vulnerable people, if it’s not from crime or because terms and conditions are unfair,” he states.

The industry disputes any direct link between sports advertising and gambling harm. It also opposes affordability checks – screening of punters’ bank accounts for signs of gambling distress. But the Government’s gambling strategy outlined last year wants stricter rules. So where does Rhodes stand?

“Our focus is to ensure any advertising is ‘responsible’ so gambling is not presented as ‘a way to solve problems, make money or relieve stress’,” he says. “But it is a difficult topic, as is sports sponsorship.”

Andrew Rhodes said in an interview with 'This is Money" that he too has a personal interest in betting and he has become more professional since he assumed his role. Despite his position overseeing bookies, casinos, amusement arcades, and the he said that he enjoys a flutter and recently had a bit of success at Cheltenham, landing two winners on the opening day.

Rhodes, 56, is not a big gambler, but he’s been at it for a long time. “I’ll never make a living out of it, but I’m moderately successful,” he says. However, his role at the Gambling Commission has necessitated some restrictions. He can’t play the National Lottery due to his role in granting and managing the license that Czech-owned Allwyn has just taken over from Camelot. He can’t even gamble in betting shops or play slot machines.

While the gambling industry continues to rake in significant profits, the debate around its regulation and the potential harm it can cause continues. As the head of the Gambling Commission, Andrew Rhodes finds himself at the centre of this debate, tasked with balancing the interests of the industry with the need to protect vulnerable individuals. His stance on responsible advertising and his opposition to the industry’s profits being regulated provide a clear indication of his approach to these challenges.

The New Zealand Inland Revenue Department (IRD) has released estimates indicating a significant shortfall in projected government revenue from online gambling compared to initial expectations outlined by the National Party before the election.  

In a report by The New Zealand Herald, while the National Party anticipated annual revenue of around NZ$176 million (€98.5 million) through the closure of tax loopholes for online gambling, the IRD forecasts a much lower figure, with an expected NZ$35 million (€19.5 million) annually, gradually increasing to about NZ$155 million (€86.7 million) over four years.  

This substantial discrepancy, amounting to over NZ$500 million ($307.3 million) over the forecast period, underscores a notable difference in revenue forecasts between the pre-election projections of the National Party and the IRD's assessments.  

Finance Minister Nicola Willis acknowledged the lower-than-expected figures.  

She, however, highlighted the government's consideration of implementing a new regulatory framework for online gambling.   

Such regulations could potentially generate NZ$118.6 million (€66.4 million) in revenue over the forecast period, thereby narrowing the gap between the National Party's forecasts and the IRD's estimates.  

The National Party's election campaign primarily focused on tightening regulations surrounding offshore online gambling to bring it in line with in-person gambling, to boost tax revenue.   

Proposed measures included mandatory registration and earnings reporting for online casino operators, along with IP 'geoblocking' for non-compliant services.   

A flat 12 percent duty was among the preferred options discussed by officials.  

Despite the revised revenue estimates, Minister Willis expressed confidence in the proposed regulatory scheme, stressing the importance of addressing the unregulated nature of online gambling.   

She maintained that establishing a regulatory framework was crucial, even if the resulting revenue might not meet initial expectations.  

In a bid to address the escalating concerns surrounding illegal gambling activities, the Hellenic Gaming Commission (EEEP) of Greece released data on illegal gaming in 2023.   

The findings have spurred a call to action for concerted efforts from the government to combat the pervasive black market.  

Dimitris Dzanatos, chairman of EEEP underscored the pressing need to tackle the twin challenges of revenue loss and the burgeoning involvement of youth in gambling pursuits.   

Drawing from data collected through a comprehensive survey conducted by KAPA Research, the regulatory body revealed that an alarming 10.4 percent of the Greek populace engaged in unauthorized games of chance last year.  

The extrapolation of these findings revealed staggering financial implications, with an estimated €1.7 billion funnelled into illegal wagers, split between €1 billion in online platforms and €700 million in land-based establishments.   

These revelations were disclosed during a presentation at an anti-illegal betting conference in Athens, spearheaded by Dimitrios Papadopoulos, head of the EEEP's general directorate of supervision and operational operations.  

Building upon these revelations, Dzanatos seized the opportunity to advocate for a balanced approach, drawing upon the wisdom of the ancient Greek mathematician Euclid in his plea for finding a "golden ratio" between stringent regulations and effective redirection of players away from illicit channels.  

Citing the inevitability of technological advancements fuelling the expansion of such illicit activities, Dzanatos cautioned against superficial remedies, emphasizing the imperative for enduring partnerships between regulatory authorities, law enforcement agencies, financial supervisory bodies, and legitimate gaming providers.  

Echoing sentiments expressed earlier at a roundtable discussion in Athens, Dzanatos reiterated the necessity for robust collaboration with various governmental bodies, including the Ministry of National Affairs of Economy and Finance, Ministries of Citizen Protection and Justice, the Bank of Greece, and anti-money laundering authorities.  

Stressing the multifaceted repercussions of illegal gambling, he underscored the imperative for swift and decisive action to safeguard both societal well-being and economic stability.