GrooveGaming expands further in Asia

The Ministry of Finance of Brazil has recently confirmed the appointment of Régis Anderson Dudena as the inaugural President of the Secretariat of Prizes and Betting (SPA). This confirmation, announced via a decree in the Official Gazette of the Union, marks a significant milestone in the evolution of

Dudena, a legal scholar with an extensive background in the legal sector, has previously advised the government on key issues related to the Ministry of Finance. His appointment comes at a crucial time as the SPA, Brazil’s regulatory body for upcoming betting markets, is setting a federal framework for sports betting and online gambling activities.

Dudena’s personal background is as impressive as his professional achievements. He is a seasoned lawyer with expertise in Public and Regulatory Law. He pursued advanced studies in Law at the Federal University of Minas Gerais (UFMG), where he is currently a PhD student. Throughout his career, Dudena has held various positions of responsibility in both the public and private sectors, including serving as a partner in a law firm specialising in Legislative and Regulatory Advocacy. He also served as the legal superintendent of Desenvolvimento São Paulo, the Development Agency of the State of São Paulo, and as a legal advisor to the presidency of the Development Bank of Minas Gerais.

As the leader of the SPA, Dudena will oversee a department of 38 experts who are accountable to eight governors, each responsible for aspects of Brazil’s economic and financial governance. In April, the SPA disclosed its intent to finalise the betting market’s regulatory framework through a ‘four-phase execution,’ developing technical ordinances on payment authorizations, safer gambling duties, and market protection.

The previous week, the SPA issued its payment-related technical ordinances, upholding the government’s prohibition on credit card transactions and bonus incentives. Dudena’s appointment aligns with the Ministry of Finance’s plan to introduce the betting market in 2024, which is contingent on the completion of these technical ordinances.

The appointment of Regis Dudena marks His extensive legal background and experience in public and regulatory law make him an ideal leader to navigate the complexities of this emerging market. As Brazil moves forward with its plans to regulate sports betting and online gambling activities, the industry will undoubtedly benefit from Dudena’s leadership and expertise.

In 2023, France’s sports betting and gaming operators witnessed a significant milestone. Their gross gaming revenues (GGR) rose by 3.5 percent year-on-year, reaching a record €13.4 billion. This growth was observed across all market verticals, marking the highest level of activity ever recorded by the sector.

The national regulator, the Autorité Nationale des Jeux (ANJ),linked to the Covid-19 pandemic. However, the ANJ also issued a reminder to operators about the need for responsible gambling practices. With major events like the Euro 2024 football tournament and the Paris 2024 Olympic Games on the horizon, operators were urged to ensure that intensification of playing patterns does not accelerate in 2024.

The growth of the gambling sector in France, as indicated by a 3.5 percent increase in Gross Gaming Revenues (GGR) to €13.4 billion in 2023, is noteworthy. The European gambling market, which includes both online and offline sectors, accounts for 49 percentof the global market. The European Gaming and Betting Association (EGBA) provides an overview of the online gambling operations of its members within the EU and UK. However, specific growth rates for individual countries in 2023 are not readily available.

In terms of the sports betting industry, Europe is currently estimated to be worth $44.5 million (approximately €41.5 million), with forecasts predicting its value to reach $89.9 million (approximately €83.9 million) by 2030.

While these figures provide a broad overview, the growth rates can vary significantly between countries and sectors (online vs offline, types of gambling, etc.). Therefore, while France’s growth is impressive, it’s important to consider it in the context of these broader trends and variations across Europe.

The growth of France’s gambling sector is in line with the general upward trend observed in Europe, albeit with country-specific and sector-specific variations. The challenge for all countries, including France, will be to balance this growth with the need for responsible gambling practices. This is particularly relevant given the upcoming major sporting events like the Euro 2024 football tournament and the Paris 2024 Olympic Games.

Despite the impressive growth, French operators lagged slightly behind the European market growth rate of 5.5 percent (or €134 billion GGR). However, the ANJ noted that France’s growth was in line with other major markets such as Germany, the UK, and Spain.

Isabelle Falque-Pierrotin, President of ANJ, commented on the sector’s performance, stating, “The healthy state of the market demonstrates that demanding regulation is not a brake on development. This growth makes the objective of reducing the number of excessive gamblers, which the ANJ has placed at the heart of its action for the coming years, all the more relevant.”

Francaise des Jeux (FDJ) and PMU, with €6.6 billion anFDJ’s land-based and online sports betting grew by 10.4 percent to €1 billion, accounting for 16.2 percent of the group’s total GGR. Following its integration of online horse racing tote operator ZEturf in Q3, FDJ is now present in all online gaming segments.

PMU’s business grew by 1 percent in 2023, reaching €1.7 billion in GGR, marking a return to its pre-pandemic levels. The group also modified five of its products and optimized its racing calendar to boost its business.

French casino operators’ GGR grew by 8 percent to a record €2.7 billion. Almost 74 percent of the country’s 200 land-based establishments returned to higher levels than in 2019. Slot machines contributed more than 80% of the GGR. Paris, the capital, counts seven gaming clubs, and their GGR rose by almost 11 percent to €119 million in 2023.

Online operators’ GGR was up 7.2 percent to €2.3 billion, representing 17.5 percent of the total market. The digital segment is driven by sports betting at 63 percent, online poker at 21.6 percent, and online horse racing tote betting at 15 percent.

While the total number of unique players rose to 3.6 million, online sports betting was the only segment not to see an increase in the number of active accounts. However, its GGR was still up by 6.4 percent to €1.5 billion, and stakes were up 2.2 percent to €8.5 billion.

The lack of a major sporting event appears to have led to a decrease in the pool of unique players. This lack of new player accounts was offset by an increase in the average stakes per active account of 6.3 percent to €1,982. The ANJ warned that this may lead to more intensive gambling practices.

Online horse race betting returned to growth, with its GGR up by almost 2 percent to €353 million and stakes of €1.5 billion at 5 percent. The number of activities rose by 4.5 percent, and unique players were up by 1.5 percent, indicating that horse racing tote betting is attracting new players.

Online poker saw a strong upturn in activity, surpassing the records set during the health (COVID) crisis with its GGR up 14 percent to €504 million. The ANJ noted that from 2019-2023, the segment’s growth has been significant.

In conclusion, while France’s gambling sector has seen impressive growth, the challenge lies in balancing this growth with responsible gambling practices. As the sector continues to evolve, the role of regulators like the ANJ will be crucial in ensuring a sustainable and responsible gambling environment.

Kindred’s ambitious campaign, ‘Journey towards Zero’, aimed at eradicating revenue from high-risk gamblers, appears to have stumbled in its latest update. The first quarter of 2024 sa slight increase from the 3.1 percent reported in Q4 2023.

The ‘Journey towards Zero’ initiative was launched in 2021 in response to a surge in problematic gambling behaviour, exacerbated by the COVID-19 pandemic. The campaign’s goal was to become the first operator to achieve 0 percent revenue from harmful gambling by 2023, a commitment publicly made by then-CEO of Kindred, Henrik Tjärnström (pictured above). Despite Tjärnström stepping down in May of the same year, the objective remains a priority for the company.

Throughout 2023, Kindred’s revenue from high-risk players remained relatively stable, oscillating between 3.3 percent and 3.1 percent. However, the company failed to meet its target of zero revenue from harmful gambling by the end of the year. Despite this setback, The company reported that 87.1 percent of players demonstrated improved behaviour following interventions, a slight decrease from Q4 2023’s 87.4 percent.

Alexander Westrell, Director of Communications at Kindred Group, acknowledged the fluctuating revenue from high-risk players but emphasized the company’s ongoing commitment to fostering a more sustainable gambling experience. He noted the steady decline in harmful gambling data since 2020 and the positive impact of interventions on healthier gambling behaviour.

Westrell also highlighted the importance of open dialogue, citing the recent Sustainable Gambling Conference in London, where individuals shared their personal experiences with gambling. He expressed optimism about the role of advancing technology in detecting and intervening in harmful gambling behaviour.

Westrell called for increased engagement from regulators and industry experts to ensure a more sustainable future for the gambling industry. Despite the challenges, Kindred remains committed to its ‘Journey towards Zero’, underscoring the need for continuous effort to achieve sustainable progression.

Kindred’s transparency in reporting its progress has been appreciated by many. They have been open about their successes and setbacks, contributing to a fact-based dialogue about harmful gambling. However, some critics have labelled the initiative as a PR stunt. In response, Kindred has reiterated its commitment to the cause and highlighted the extensive work being done to ensure data reliability.

The UK House of Lords library has turned its focus towards a pressing issue - the impact of gambling marketing. This topic has been gaining traction due to the expansion of the gambling industry in recent years and the subsequent increase in gambling-related harms.

The library, known for its extensive resources and research, published an in-depth analysis earlier this week. The piece, authored by Thomas Weston, explores the role that the marketing of gambling services plays in exacerbating these harms.

Categorized under Business, Culture, Media & Sport, and Health, the publication is set to spark a debate in on 25 April 2024. As the industry continues to grow, the Lords are keen to address these issues and discuss potential solutions. 

In the world of gambling, the role of marketing strategies such as advertising and sponsorship in exacerbating problem gambling remains a contentious issue. A report by the House of Lords Committee on the Social and Economic Impact of the Gambling Industry in July 2020 highlighted a correlation between gambling advertising and problem gambling. However, it stated that no concrete evidence or research had been presented to establish a causal link between the two.

This sentiment was echoed in a Public Health England (PHE) evidence review published in September 2021. The review scrutinized studies aimed at identifying risk factors for gambling and harmful gambling. It concluded that while advertising and marketing do influence general gambling activity, there is a “lack of review-level evidence” to suggest that marketing and advertising are risk factors for harmful gambling.

The issue becomes more complex. Despite the absence of empirical evidence, several observations have been made that paint a concerning picture.

The paper refers to a 2018 report by the think tank Respublica. They estimate that nearly as. An additional third of the profit share is believed to come from those on the brink of developing gambling problems.

The exact figures on the gambling industry’s marketing spending remain elusive, shrouded in mystery. However, a glimmer of understanding comes from a 2018 report by Regulus Partners. They estimate that gambling advertising and marketing spending surged from around £1 billion in 2014 to over £1.5 billion in 2017. Considering the Gambling Commission’s estimation of the total industry revenue in the year to March 2017 being £13.8 billion, it suggests that over 10 percent of industry revenue is channelled into marketing.

Fast forward to February 2023, the Public Health journal publishes an article. They have been examining evidence on the impacts of gambling-related advertising that could lead to gambling-related harm. Their findings reveal that a higher percentage of those experiencing moderate risk or problem gambling reported that social media promotions for gambling worsened their problems compared to low-risk and non-problem gamblers.

In light of these observations, the Lords committee scrutinizing this issue is expressing skepticism about the non-existence of a link between advertising and problem gambling. They argue that it seems counter-intuitive for companies to invest increasingly large sums in advertising if they did not believe it would increase the overall amount gambled, the amount gambled with their company, or both, and subsequently result in an increase in gambling-related harms. This skepticism casts a shadow over the industry, raising questions that demand answers.

The issues are set to be discussed by the House of Lords on 25 April, 2024.