Evolution of Danish regulatory measures and impact on the iGaming industry

The globally renowned British television quiz show, "The Chase," has expanded its reach to the international sports betting and iGaming industry, marking a milestone for entertainment and gaming enthusiasts worldwide. This expansion is the result of a strategic partnership between Entain, a prominent global sports betting and gaming group, and Playtech, a leading provider of platforms, content, and services in the online gambling industry.

Hosted by Bradley Walsh, "The Chase" has gained popularity in the UK, with a daily viewership of approximately four million. Its distinctive format involves contestants competing against a professional quizzer, known as the "chaser," for a cash prize, offering an electrifying and competitive gameplay experience.

The Entain-Playtech collaboration has led to the launch of an exciting new live game show hosted by Playtech from its live studio in Riga, Latvia. Initially introduced to Entain's UK customers, the game has now expanded its presence to regulated markets in Canada, Brazil, and Belgium. Additionally, plans are underway to introduce the game to Italian and South African players through Entain's brands in the near future.

The live game show offers various engaging features, including a plinko board and two bonus features, ensuring an immersive gameplay experience until the thrilling "Final Chase" segment.

ITV Studios, as the game's host, is expected to profit from licencing its brand to the gaming sector, especially since it has shown impressive revenue generation within its first month of release.

"The Chase Live has been our most anticipated game release in 2024. We have been working with the teams at Entain and Playtech for many months on bringing one of the UK's most successful and popular gameshow brands to the live casino space." - Steve Watling, SVP Gaming, ITV Studios Global Partnerships

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The Department of Veterans Affairs has declared that the number of active or retired members of the US army showing signs of problem gambling is rising significantly. In some regions of the US, more than 10 percent of military members are problem gamblers.

Concerned about the surge in gambling addiction within the US army, the Department of Veterans Affairs initiated research on the issue. Currently, the army is conducting a large survey, with results expected by the end of 2024. Preliminary findings indicate that military members are not only more vulnerable to gambling-related disorders compared to civilians, but are also less likely to report them and seek help.

Heather Chapman, a clinical psychologist and director of the national gambling treatment programme for the Department of Veterans Affairs, told CNBC: “All of a sudden, we started to see a lot of people with gambling problems calling and asking for some help.”

A 2017 report revealed that over 3,100 slot machines were installed in US military bases abroad. These slot machines are viewed as a recreational activity that boosts troop morale - and generate more than $100 million in revenue per year for the army. Soldiers as young as 18 can gamble in some of these foreign countries. Meanwhile, slot machines are not permitted on military installations within the US.

Many gambling operators actively target the military. In Washington state, seven casinos opened less than 20 minutes away from one of the largest military bases in the US. Additionally, casinos and sportsbooks often send targeted promotions to military members, especially around Independence Day. Some casinos even offer free-play to soldiers.

However, as awareness of the issue grows, some operators have stopped targeting military members altogether. Others have gone further by funding programmes to address the problem.

Dave Yeager, a former Army Staff Sergeant, published a book to help other military personnel facing problem gambling: Fall In: A Veteran with a Gambling Addiction. In this book, he explains how his addiction cost him his family and his position in the army, detailing incidents such as stealing petty cash and bankrupting his family to fuel his addiction. Yeager shares how some counsellors and commanders in the army failed to understand the severity of his illness.

His book also covers his journey toward recovery. Kevin Wensing, a retired US Navy Captain and Veterans Advocate, said, "Dave is an inspiration for millions who have become collateral damage from gambling and continue to be tempted by the massive advance of online sites that feed addictive behaviour. His story is a beacon of hope and the lessons he offers will help all who are committed to raising problem gambling awareness and providing the needed tools to avoid harm."

The Department of Veterans Affairs operates two treatment centres and collaborates with many civilian-run programmes across the country. To encourage soldiers to seek help for gambling addiction, the military has reiterated that no soldier will be penalised for coming forward and seeking treatment. Additionally, the Department of Defence now uses the annual health physical to look for signs of gambling addiction.

The rapid expansion of the online gambling industry, particularly in the U.S., raises critical questions about the uniformity and adequacy of regulatory frameworks across different jurisdictions. The discrepancy in the regulatory landscape between the U.S., UK, and Europe is stark. Companies like Flutter and Entain, which have acknowledged and rectified potentially harmful practices in the UK, continue to employ these same practices in the U.S., where the market is less mature and regulatory scrutiny is less intense.

This situation prompts many grey areas: Should there be a global, uniform standard for responsible gambling? While this idea might seem appealing, it opens up a minefield of challenges, given the varying degrees of regulation enforcement across different countries and states. However, the need to tackle problem gambling from a corporate viewpoint is undeniable. The recent Reuters report highlights several thought-provoking issues, including the use of practices deemed too risky for the UK market but used in the booming U.S. online gambling industry.

The question remains: How can the industry ensure that the race to capitalize on this rapidly growing sector does not overshadow the need for robust, uniform, and effective regulations that prioritize customer protection? The answer to this question will require careful consideration, collaboration among stakeholders, and a commitment to prioritizing the well-being of customers over profits. The stakes are high, and the time for action is now.

The special Reuters report brought to light that Flutter and Entain are using aggressive tactics in the US market that have abandoned in the UK due to regulatory concerns.

The focus of the report is on the differences in regulatory environments between the US and the UK, highlighting how these companies have not implemented the same safeguards in the US that they have in the UK. This includes practices like VIP programmes and high betting limits that can lead to problem gambling.

In the UK, stricter regulations have led to the curtailment of certain practices to protect gamblers, which are still being used in the U.S. The report points to some case studies with examples of individuals who lost large sums of embezzled money through gambling on platforms like FanDuel. It also examines how these companies justify their different approaches in the US and Britain, and the potential harm it is bringing to US gamblers.

For example reference is made to a case in 2018, when the UK branch of the online gambling giant Flutter was penalized by British regulators due to an extraordinary oversight. The director of an animal shelter had been misappropriating funds from his workplace to finance his compulsive betting habits, resulting in losses exceeding half a million dollars over a four-year period, as reported by the charity where he worked. The gambling regulatory authority compelled Flutter to pay approximately $2.8 million for failing to safeguard customers from evident unregulated gambling and for failing to prevent the use of pilfered money.

Peter Jackson, the Chief Executive of Flutter, publicly expressed regret for not stepping in, stating that the company had an obligation to intervene “when our customers exhibit signs of problem gambling.”

It is also interesting to note that FanDuel and BetMGM, two major players in the U.S. online gambling industry, collectively account for approximately 50 percent of the country’s net revenues from this sector. Flutter, the parent company of FanDuel, has been questioned about its practices in the U.S., which have been identified as potentially harmful in the UK. In response, Peter Jackson, the CEO of Flutter, stated that the company is dedicated to maintaining high customer protection standards across all its operational markets. He gave his reassurance that Flutter’s role was to lead the industry towards higher standards.

He explained how Flutter operates in strict compliance with the rules and regulations of the jurisdictions it is licensed in and tailors its strategies to the local markets it serves, taking into account their maturity and competitive landscape. The U.S. is Flutter’s largest and fastest-growing market in terms of revenue, with its FanDuel brand recording over $40 billion in online bets last year.

BetMGM’s co-owner, Entain, operates in numerous markets and believes that a ‘one size fits all’ approach would not be feasible or commercially viable. Rob Wood, Entain’s CFO, acknowledged that the U.S. market is still in its early stages and lacks the level of protections seen in the UK. However, he defended BetMGM’s practices, asserting that the company does not compromise on standards.

BetMGM, the third-largest online gambling company in the U.S. by revenue, is a joint venture with casino operator MGM Resorts International. The company is committed to providing a safe environment for customers and exceeding its regulatory obligations to ensure a positive player experience. MGM Resorts did not respond to requests for comment.

A customer of Jackson’s, this time in the United States, fell into an even deeper spiral of uncontrolled gambling, wagering millions of dollars of stolen money through Flutter’s U.S. brand, FanDuel. Amit Patel, who was then a mid-tier finance manager at the Jacksonville Jaguars football team, transferred $20 million of his employer’s money into his FanDuel account between 2019 and early 2023. He subsequently lost the majority of these embezzled funds, according to court records. Both Patel and the head of the British animal shelter admitted to committing fraud.

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The Cambodian government has raised concerns as online gambling has seen a rise in the Southeast Asian country.  

The Phnom Penh Post reported that Meas Sok Sensan, spokesman for the Ministry of Economy and Finance, confirmed that the Commercial Gambling Management Commission of Cambodia (CGMC) had not issued any online gambling licences, rendering all online betting agencies illegal. Despite this, many online betting sites operate freely without significant interference from authorities.   

According to the local report, the process of accessing, registering, and depositing money with online gambling companies in Cambodia has become notably straightforward. Users navigate through a user-friendly registration process requiring basic personal information, followed by swift account activation. Depositing money is equally simple, with options such as local bank transfers, international payment gateways, and e-wallets. Essential details like deposit amount and payment method are all that's needed, with 24/7 live chat support available to assist with any queries. These streamlined systems enable users to start gambling with minimal hassle.  

The CGMC has been actively identifying and cracking down on illegal online gambling promotions on platforms such as Facebook, Telegram, and websites. Authorities also have been monitoring, researching, and acting against gambling advertisers, operators, and players involved in illegal gambling. The CGMC urges the public to avoid participating in these activities.  

Cambodia's gambling sector has seen significant investment, particularly from China, contributing to local economies but also leading to gambling-related crimes, including human trafficking and cyber scams. Despite several raids and arrests, concerns about the effectiveness of enforcement remain. Cambodian authorities continue to collaborate with law enforcement agencies to suppress illegal gambling operations and maintain public order.  

In May, 135 individuals involved in illegal cross-border gambling and fraud from Cambodia was repatriated to China. This marked the conclusion of a joint operation between Chinese and Cambodian authorities.  

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