Indonesian Minister flags online gambling’s link to money laundering   

Earlier this week, the Brazilian Senate’s Constitution and Justice Committee (CCJ) approved a bill that legalises casinos, bingo halls, and the traditional "jogo do bicho." The bill, PL 2234/2022, passed narrowly with 14 votes in favour and 12 against. President Luiz Inácio Lula da Silva stated on Friday that he would sanction the bill if it is approved by the Senate.

Speaking during a radio interview, Lula emphasised that while he is not personally in favour of gambling, he does not see it as a crime. "If Congress approves it and there is an agreement among political parties, there's no reason not to sanction it," he said.

The , which has already passed the House, now awaits a full Senate vote. If approved without amendments, it will move to President Lula’s desk for final sanction. Lula also addressed concerns regarding the socioeconomic impacts of gambling, noting that while the legalization might create jobs, it is unlikely to be a panacea for Brazil's economic challenges. He expressed skepticism about claims that the move would generate 2 million jobs, arguing that while casinos might provide employment for poorer individuals, these individuals are unlikely to be patrons. Additionally, Lula highlighted the rise of online sports betting and its potential impact on young people, underlining the need for careful regulation.

PL 2234 (2022), aims to regulate gambling and betting in Brazil, amending and revoking outdated laws. The bill is structured into ten titles, covering general provisions, the establishment of the National System of Games and Bets (Sinaj), licensing requirements, and measures to prevent money laundering and terrorism financing. It seeks to bring an already existing, often illegal, economic activity under state control, reducing ties to organized crime. The bill includes the creation of a national register of prohibited individuals (RENAPRO) and imposes a 20% tax on prizes above R$10,000 (just over €1,700). The committee's analysis confirms the bill's constitutionality and economic importance, proposing amendments to enhance the text. The regulation is expected to formalize the gambling sector, ensuring state oversight and addressing issues like gambling addiction and financial crimes.

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The German gambling regulator, GGL, as Euro 24 began, to remind operators that it would be particularly active during the sport event and would monitor closely all activities to ensure compliance with player protection regulations.

“Illegal gambling is not only punishable, but it also carries a significant risk for the development of gambling. Those interested in gaming should use the detailed information offered by the GGL and other bodies,” the regulator said.

To assist bettors, GGL reminded them they can consult the officialof licensed gambling operators.

It also reminded players about the self-exclusion programme, called OASIS, that allows problem gamblers to voluntarily opt out of gambling activities.

The sports betting trade association Deutscher Sportwettenverband (DSWV) has welcomed this warning and voiced their own concerns about the black market. Moreover, it has requested a comprehensive review to take place after Euro 2024.

According to their estimates, the black market could still account for 50 percent of the betting volume in Germany. If these numbers are correct, Germany would be one of the European countries with regulated sports betting that is most severely affected by illegal gambling.

DSWV President Mathias Dahms said, “The European Football Championship not only promises to be a sporting highlight but is also the most important event of the year for the sports betting industry. We are expecting exciting matches and emotional moments and, of course, we are all rooting for the German national team.” And according to them, the Euro 24 could be an opportunity to regain many former customers who have migrated to the black market.

In January 2024, the GGL had a disagreement with the Ministry of Justice over strategies to address unlicensed gambling. The Ministry of Justice, in an effort to modernise the criminal code, had proposed changing the criminal status of illegal gambling to make it an administrative offence.

The GGL, whose core mission is to combat these practices and their effects on the population, judged this proposition “incomprehensible.” Legal system officials, the Drug and Addiction Commissioner from the Ministry of Health, and the GGL have all opposed the decriminalisation of illegal gambling.

According to the GGL, this legal change would significantly undermine the protection of minors, addicts, and Germany's efforts against money laundering. Conversely, it has requested more power and tools to combat black market operators. One of their demands is the ability to prosecute gambling providers based overseas.

Looking ahead, the gaming industry will shift its focus to Eastern Europe this September with the SiGMA By Soft2Bet in Budapest.

In its efforts to tackle illicit gambling practices, Sweden's Gambling Authority, Spelinspektionen, on four operators accused of targeting Swedish consumers through unauthorised "skin" gambling platforms. The affected entities, Gamevio Ltd, Bigskin Trading Limited, Santeda International BV, and the website Samilland.co, have been formally barred from catering to Swedish players due to violations of national gambling laws.

Skin gambling is a trend particularly popular among younger gamers. It involves using virtual items known as "skins" as currency for betting on gaming outcomes, with potential real-world monetary implications. This practice has raised regulatory concerns regarding its classification under gambling laws, exacerbated by the absence of robust age verification measures on these platforms.

According to Spelinspektionen, the risks associated with unregulated online gambling are high, particularly considering their accessibility to minors. The gambling regulator emphasises that sites facilitating "skin" gambling are ineligible for Swedish gaming licences due to critical oversight deficiencies.

The crackdown is part of Spelinspektionen's broader strategy to tighten oversight of Sweden's gambling market. Empowered by expanded authority granted by the Riksdag (Parliament) since July 2023, Spelinspektionen can now take direct action against unlicensed gambling operations, including imposing immediate payment blocks on transactions involving Swedish financial services and unauthorised gambling entities. Spelinspektionen is also allowed to use a false identity to purchase gambling services. Undercover purchases are a way to monitor gaming companies active in the regulated market or in the black market.

To bolster enforcement efforts, Spelinspektionen has allocated additional resources to its surveillance teams. Furthermore, financial institutions licensed by Sweden’s Financial Authority are now required to document all transactions involving gambling operators. This facilitates oversight and enables more effective regulatory enforcement.

Further regulatory reforms are anticipated through proposed amendments to Sweden's Gaming Act of 2018, aiming to ban all in Swedish gambling activities by spring 2025. These legislative changes are intended to strengthen consumer protections and uphold the integrity of Sweden's gambling industry amidst its rapid digital transformation.

Looking ahead, the gaming industry will shift its focus to Eastern Europe this September with the  in Budapest.

Entain has found itself at the centre of a substantial legal dispute. Investors are set to demand compensation exceeding £100 million due to the company’s inadequate disclosure of bribery and corruption incidents within its past Turkish division.

Entain is currently in discussions for a deferred prosecution agreement with the Crown Prosecution Service. This is in relation to an ongoing investigation by HM Revenue & Customs into potential corporate offenses tied to Entain’s past online betting and gaming business in Turkey, which was under its ownership from 2011 until its divestment in 2017.

The investigation by HMRC is comprehensive, delving into possible violations of the Bribery Act 2010, specifically section 7, and scrutinizing past actions of former third-party suppliers and past employees of Entain. The company has recognized the possibility of such misconduct and is actively cooperating with both HMRC and the Crown Prosecution Service.

Although the final results of the investigation and any consequent financial penalties are not yet finalized, and fortified its anti-bribery policies and procedures, enhancing its overall compliance framework.

Given that the situation is fluid and subject to change, those interested in the most current developments should stay attuned to the latest statements from Entain and the pertinent regulatory authorities for updates.

Following Entain’s substantial settlement with HM Revenue and Customs (HMRC), which ranks among the heftiest financial sanctions in UK history, the legal firm Fox Williams has initiated legal action. In the closing month of 2023, Entain consented to a payment approaching £600 million subsequent to an inquiry into suspected bribery.

The market valuation of Entain has seen a precipitous fall, with its shares dwindling by nearly half since the initial announcement in May 2023 of an expected significant fine from HMRC. The accord, concluded in November, encompassed a monetary fine and the forfeiture of illicit profits. Entain also pledged a charitable contribution of £20 million and an additional £10 million to defray the expenses of HMRC and the Crown Prosecution Service.

The investigation’s roots trace back to 2019, scrutinizing potential corporate transgressions by Entain’s Turkish online betting and gaming enterprise, held from 2011 to 2017, and the actions of third-party vendors and erstwhile group employees. Formerly operating as GVC Holdings, Entain faced criticism for lacking adequate safeguards against bribery that could advantage the corporation.

The disclosure of this probe in July 2020, particularly targeting the erstwhile Turkish subsidiary of Ladbrokes, led to a notable 12 percent plunge in Entain’s stock value. Nonetheless, an Entain representative has conveyed that the firm is presently not cognizant of any such legal proceedings and has not been served with any formal claim, affirming their readiness to contest any such allegations vigorously.

Andrew Hill, a partner at Fox Williams and leader of the securities litigation team, has stressed that the lawsuit aims not just to recoup investor losses but also to fortify transparency and governance within the UK gambling industry. Hill aspires for this case to catalyze enhanced corporate conduct, reminding publicly traded companies of their imperative to honour disclosure duties.

Hill’s involvement in significant shareholder claims is not unprecedented. He is currently managing a £100 million lawsuit against the online fashion retailer Boohoo, stemming from 2020 accusations of supplier malpractice, and has previously overseen out-of-court settlements of claims against Tesco.

The Entain case reflects the wider ramifications for corporate governance and the accountability of publicly listed firms to their shareholders. It relates to the necessity of transparency and ethical behaviour, not merely as legal mandates but as essential elements for sustaining investor confidence and market integrity. The resolution of this lawsuit may establish a benchmark for future similar legal challenges and potentially shape corporate conduct industry-wide.