Smiles through miles: SiGMA Foundation’s trek to Mount Daraitan

In 2023, Japan's regulated nearly reached JPY8 trillion (€47.6 billion), representing a modest increase of 0.3 percent compared to the previous year. While this growth rate marked the lowest in a decade, it still amounted to the highest betting handle Japan has witnessed during this period. 

According to a report by Gaming Intelligence, the total horse racing wagering accounted for the lion's share, reaching JPY4.35 trillion (€25.9 billion) and comprising 54 percent of Japan's overall betting activity. This marks the third consecutive year that racing wagers have surpassed the JPY4 trillion (€43.8 billion) mark. Despite a surge in attendance at Japan Racing Association (JRA) racecourses, with a notable 66 percent increase to 4.6 million attendees, a staggering 98 percent of wagering occurred off-course. 

Betting on motorboat races saw a slight decline of 2 percent from 2022, totalling JPY2.39 trillion (€14.2 billion) across 4,618 race days. Conversely, cycling races experienced a 5 percent increase in handle, reaching JPY1.15 trillion (€6.8 billion) from 2,725 race days. Motorcycling races, although the smallest sector in terms of wagering, witnessed a marginal uptick of 0.6 percent, amounting to JPY108 million (€643.1 million) in bets. 

Despite the modest growth rate, Japan's record-breaking sports wagering in 2023 signifies the nation's sustained interest in regulated betting activities. The enduring popularity of horse racing, coupled with the steady performance of other sporting events, underscores the diverse preferences within Japan's betting landscape. As the industry continues to evolve, stakeholders will closely monitor trends and adapt strategies to capitalize on emerging opportunities. 

Meanwhile, earlier this year, Japan began constructing its  project, marking the country's inaugural venture into the realm of casinos. The commencement of this project followed the Japanese government's approval of a revised implementation agreement, symbolizing a significant shift in the nation's approach to gaming regulation. 

Upcoming SiGMA event: SiGMA Asia 2024, 2 – 5 June. Find all the details .

's Minister of Justice, Javier Silvania, has addressed concerns voiced by the Curaçao Bar Association regarding the National Ordinance on Gambling (LOK). Following objections to certain provisions within the draft legislation, particularly concerning accreditation requirements for lawyers, Silvania announced amendments to the law. 

In a social media post, Silvania acknowledged the Bar Association's concerns and revealed plans to revise the accreditation requirements outlined in the LOK. Notably, the jurisdiction will shift from a mandatory accreditation process to a non-mandatory certificate system, significantly reducing regulatory burdens for legal practitioners. 

Under the amended law, the Curaçao Gaming Authority will issue certificates to lawyers providing gambling-related services or goods to Curaçao licence holders. These certificates, valid for up to three years, will replace the initial accreditation requirements outlined in the draft legislation. Silvania emphasized that participation in the certification process would be optional, granting flexibility to lawyers engaged in gambling-related activities. 

Silvania also highlighted another significant amendment aimed at ensuring the financial independence of the Curaçao Gaming Authority. Addressing concerns regarding the regulator's autonomy, revisions have been made to guarantee its fiscal independence, enhancing transparency and accountability within the regulatory framework. 

In addition to addressing the Bar Association's concerns, Silvania responded to criticisms from members of Parliament regarding the LOK. He emphasized that despite some MPs' limited review of the legislation, the amended law represents a significant milestone in the region's efforts to reform its offshore gambling industry. 

Silvania underscored that the legislative revisions align with 's commitment to collaborate with the Dutch government's Temporary Work Organisation (TWO). The changes signal a willingness among lawmakers to consider stakeholder input and ensure effective regulation in the gambling sector, essential for preserving Curaçao's status as an international gambling hub. 

Upcoming SiGMA event: SiGMA Asia 2024, 2 – 5 June. Find all the details .

The Star Casino in the centre of Sydney, a popular gaming hub, found itself in the embroiled in an unexpected controversy. A software glitch in the casino's “ticket in, cash out” (TICO) machines led to the establishment inadvertently giving away more than $2 million in cash over a span of 13 days in July last year.

The glitch was introduced through a software update to the TICO machines. When players inserted more than one ticket into a machine, it returned one of the tickets along with the total cash, and then allowed that ticket to be cashed out repeatedly. This error went unnoticed by the casino operators for six weeks, during which time 43 people exploited the glitch to withdraw free money.

Among the beneficiaries was Thanh Lan Le, a recovering gambling addict. She relapsed after watching a friend repeatedly cash out using the glitch. Over the next 10 days, she withdrew $57,265. By the time she left the casino, all but $5,000 of the money was gambled away.

The casino’s response to the glitch was swift and severe. It reported the 43 “lucky” cash recipients to the police, who arrested Le and an unspecified number of others on charges of fraud, participating in a criminal group, and knowingly dealing with the proceeds of a crime. Le pleaded guilty to a single charge of dishonestly obtaining property by deception and offered to repay the money.

The’s manager, Nicholas Weeks, blamed “a very significant failure across a large number of people and teams” for the casino’s inability to detect the glitch sooner. This incident has led to a second NSW Independent Casino Commission inquiry into operator Star Entertainment, which had previously been found unsuitable to hold a Sydney casino license in 2022 due to allegations of money laundering, criminal infiltration, and fraud.

The latest inquiry also heard from former Star CFO Christina Katsibouba, who testified that the casino’s head of investor relations, Giovanni Rizzo, asked her to manipulate the financial records to hide the loss when the company presented its half-year earnings report in February. Katsibouba refused to comply.

This incident has highlighted the potential pitfalls of technology in the gaming industry, and the importance of robust risk management frameworks and balances to prevent such errors from occurring. It also raises questions in dealing with such situations, and the impact on individuals who unwittingly find themselves on the wrong side of the law.

In April this year, the voluntary EU incorporated a vow to refrain from generating, utilising or spreading "any form of deceptive content". As part of an EU charter on fair campaigning, European political parties consented to refrain from disseminating unmarked deepfakes ahead of the June election. A comparable law has been enacted in the UK this month. Under the Online Safety Act, passed the previous year, the distribution of deepfakes was declared unlawful. On March 13 of this year the AI Act was passed which aims to make sure that AI systems in the EU respect fundamental rights. Its objectives are to create innovation and investment in AI in a single EU market.

The rapid advancement of AI technologies is bringing about remarkable opportunities and hurdles for the gaming industry. Professionals at government agencies, think tanks, gaming events and conferences are extensively exploring and discussing the key problems. The industry is questioning if AI has overstepped its boundaries. When does virtual reality become overwhelming? Is there a potential threat to people? Are casinos at a higher risk of security attacks and how can they safeguard their data and AI versions? What regulations need to be established to ensure the safety of both casinos and individuals?

Experts in the gaming industry say that explicit regulation by authorities is necessary to ensure the ethical use of AI in the casino business. They believe that governmental and regulatory entities should create unambiguous, enforceable rules and structures that define proper procedures for AI implementation, tackling aspects such as data security, responsibility, and algorithmic clarity. The regulations introduced this month and those still being released should be versatile enough to adjust to the rapid speed of tech evolution, as obsolete laws can occasionally create more difficulties than benefits.

Doctor Ian Gauci, a partner at GTG specialising in AI law said to SiGMA News, "In Europe now casinos should make sure that if they already make use of AI that it complies with the requirements of existing law’s like GDPR as that is further emphasised in the new AI ACT. They also need to predispose themselves for the up and coming new AI act, so that they can act immediately around any banned AI. The casinos here would also have to distinguish between them solely deploying the AI, as opposed to developing and deploying it.”

The consensus among professionals such as Gauci is that international collaboration on AI-related laws will be essential to maintain uniform standards, considering the worldwide scope of the technology and the gaming industry.

Gauci added, “The extra part is that in addition to these new AI laws, the casinos will also need to examine their obligations on what is prohibited, and where there is high risk (AI act). They will also have to have a conformity assessment of a lot of things, such as data, design, cyber security, and other audits which are also important. It’s beyond ethics or human rights as you are regulating the operational parameters of the technology and imposing risk and governance frameworks on importers and distributors. It is dealing with big risk AI and interfacing with another authority which is the market surveillance authority in the EU.”

Industry experts concur that as casinos advance towards the integration of ethical AI, it involves not just compliance with rules; it's also about both the gaming industry and the users experience while complying with ever changing regulation.