iGaming Industry
Vladimirs Remi: “EU gambling market shows steady growth but a share of illegal business is still pretty great”
The gambling business in the EU countries shows a steady growth, although a lot of operators prefer to work illegally. It was reported by Vladimirs Remi, a co-owner of MONT AZURE, providing services in financial consulting and developing fin-tech projects. In the interview for our media office, the expert listed difficulties faced by entrepreneurs when launching a business in Latvia and told us how the European gambling industry is developing.
Interviewer: Riga Gaming Congress (RGC)
Speaker: Vladimirs Remi (V.R.)
RGC: You are engaged in the development of fin-tech projects and regulation of the financial business within the EU and UK. Tell us about the gambling situation.
V.R.: Currently, a huge part of the gambling business is illegal. Customers interested in establishing a serious business with all required licenses are quite a rare phenomenon. Rather on the contrary, the majority part of market participants are constantly looking for a jurisdiction with tax remissions and simplified licensing. It is a short-term operation model. And the establishment of such a business requires the same amount of time and money as the establishment of a licensed casino.
We recommend our customers only the legal business model and try to show that it is not as difficult and expensive as it seems at first view. We help them to structure a legal base, choose an appropriate jurisdiction and operation model. Fortunately, more and more online gambling projects are launched today. It brings the industry to the high level and provides it with a new development line. We believe that regulators should have a more positive attitude to this market segment.
As to the financial business, leading countries are still the following: Great Britain, Cyprus, Malta, and Ireland. The rest EU states have a very bureaucratized and expensive business tax and regulation system. Lithuania is currently showing a strong position, but it is too early to make conclusions.
RGC: How can one license a gambling venue in Latvia? Does this process have any pitfalls?
V.R.: It is Lotteries and Gambling Supervision Inspection (https://www.iaui.gov.lv/lv/) that regulates the gambling business and lottery segment in Latvia. There are a lot of pitfalls. For instance, international business representatives should overcome a language barrier. Unlike its neighbors considering documents in English (it is the EU official language), Latvia accepts all papers only in a state language. Consequently, one should find a specialist among local citizens. Besides, there are few specialists and their services are quite expensive.
Another significant aspect is civil servants. The Latvian Republic does not deal with businesses and their growth. Public officials very aggressively treat both businesses and citizens. They believe that they have a higher status and forget who pay for their work. The business licensing process is extremely expensive and requires lots of time and patient. Moreover, difficulties do not end after obtaining a license. One should get ready for a capital generation procedure and state duty payments. Beginning entrepreneurs have to confirm each cent attracted to the company for obtaining a license as well as to prove their financial solidity.
The gambling business in the country is hardly developed. There are several licensed market participants, working for the local community. Some years ago, the market regulator destroyed this segment in the acquiring sector by prohibiting banks and financial institutions to process gambling transactions. Many Latvian banks and other players were submitting petitions, arguing that transaction technical processing and money transferring were not related to the Gambling Inspection. However, everything was in vane. As the result, the lion’s share of profit left the country due to the incompetence and absolute indifference of civil servants.
RGC: Is it easy for a foreign operator to enter the Latvian gambling market?
V.R.: If operators have the EU license, they won’t face obvious difficulties. They will be able to obtain a permit for their activity in Latvia much easier than new market players. However, economic efficiency is a different story. The country has around 2 million people, although in fact there are 1.5 million citizens. Only a half of the population is economically active. So, let’s figure out how many people can provide venues with income. And do not forget about costs for starting and growing a business in Latvia.
I would recommend our customers not to waste money but rather consult the regulator in order to realize the whole situation.
RGC: In March 2017, the Ministry of Finance of Latvia offered to increase a gambling business tax by 30% and to recommence a wining tax. In fact, the government prevents the gambling business development.
V.R.: The government follows such a policy regarding all kinds of business in the country. It tries to increase its budget by means of taxes and does not understand that Latvian entrepreneurs actively establish their businesses in other EU countries with more favorable attitude to this activity and special beneficial zones for its growth.
And taxes aren’t the point. In Scandinavia and Central Europe, for example, the tax control is even stricter and fees are higher. What plays a significant role in this issue is the opportunity to run a business. The UK offers special zones for testing businesses as well as has transparent and clear licensing regulations. When entrepreneurs are able to earn money, they pay any taxes. Latvia does not provide them with such an opportunity.
RGC: In other words, establishing the gambling business in Latvia is unprofitable, isn’t it?
V.R.: Absolutely unprofitable. Government supervision, taxes and regulation will take a huge amount of income. Besides, one will have to compete with other advanced EU countries, for instance, with Great Britain, as well as to invest in marketing and company image two times larger than their colleagues.
It will be too hard to develop the gambling or any other business in Latvia until the government changes its attitude to entrepreneurs.
RGC: How rapidly does the EU gambling market grow? Can you confirm your words by figures?
V.R.: The gambling business shows a steady growth. However, it refers to such segments as online casinos and lotteries. There is still a great share of the illegal business due to various factors. Over the past 5 years, we have seen a reducing activity in the acquiring organization sector. Almost no new players of this segment were noticed.
This year, we have been surprised by the increasing interest to eSports competitions. ESports betting is a new stage of the gambling business development and opportunity for good incomes.
Unfortunately, we can’t share figures, as one part of such information is confidential and another one will be presented at the conference.
RGC: What will you tell about at Riga Gaming Congress 2017? What target audience will find your presentation especially interesting?
V.R.: The presentation will be dedicated to the current condition of the Latvian market and its regulation. I hope we will obtain official comments from the government regulator regarding the future and development of the market. I will try to describe the relevant situation as fair and square as possible so that all participants could decide whether it is worth to start a business within the Latvian Republic or not.
I will also provide official comments from Latvian banks, which I am going to interview.
The target audience of my presentation includes business owners and top managers, in other words, decision makers and those developing this industry.
Vladimirs Remi will speak on October 12 within the second part of the business section at Riga Gaming Congress 2017. You can register for the event following the link.…
The post Vladimirs Remi: “EU gambling market shows steady growth but a share of illegal business is still pretty great” appeared first on Eastern European Gaming – News – Interviews – Legal Market Updates – Premium Reports – Events – Directory.
Source: EEGaming.
Bradley Khoury
eCOGRA Approved to Operate in Arizona, Indiana and Panama
eCOGRA, a leading international authority in Testing, Inspection and Certification services for the iGaming industry, has secured new regulatory approvals across three key jurisdictions: Arizona, Indiana and Panama. With these developments, eCOGRA strengthens its position in the U.S. and Latin American markets, offering excellence in compliance through their Quality, Speed, and Service promise.
This strategic expansion allows eCOGRA to conduct independent compliance audits and certification services in each region, addressing the growing demand for rigorous regulatory oversight in the fast-evolving global iGaming industry.
Securing approval in Arizona, where eCOGRA has now been licensed as an Event Wagering Ancillary Supplier, enables the International Testing Laboratory (ITL) to audit event wagering licensees in line with Arizona’s expanding regulatory landscape. Indiana, which introduced online sports betting in September 2019, has authorised eCOGRA to perform regulatory compliance audits, providing licensed operators with crucial assurance in meeting the state’s high standards.
In Panama, the Board of Gaming Control officially recognised eCOGRA as an Authorised Entity for Compliance Certification, specifically for slot machines and gaming software. This endorsement reinforces eCOGRA’s role as a trusted partner for operators seeking to meet stringent regulatory requirements in Latin America’s emerging iGaming sector.
“Our recent approvals in Indiana, Arizona, and Panama underline our dedication to continually expand our offering, to support our growing portfolio of clients with their global growth plans. We are committed to ensuring that we bring the same quality, speed and service that marks us out to both our clients and regulators in these dynamic markets,” said Will Shuckburgh, Group CEO of eCOGRA.
Bradley Khoury, Chief Technology Officer at eCOGRA, said: “Securing licensure as an Event Wagering Ancillary Supplier in Arizona and an Authorised Entity in Panama underscores our dedication to supporting responsible and sustainable iGaming operations. We are committed to driving trust and accountability within the industry by providing compliance solutions that uphold the highest standards.”
BetConstruct
BetConstruct to Showcase Latest Innovations at G2E Las Vegas 2024
BetConstruct, a global leader in the iGaming industry, is going to showcase its cutting-edge solutions at the highly anticipated Global Gaming Expo (G2E), taking place from October 7-10.
As the premier event for the global gaming industry, G2E serves as a hub for innovation, driving growth by bringing together industry professionals from around the world to foster business opportunities.
Taking place at The Venetian Expo in Las Vegas, this all-in-one event features both an education program from October 7-10 and an expansive expo hall running from October 8-10.
BetConstruct’s stand is 5230, where the team will showcase an exciting range of products, including the newly launched the Last Battle, a novel loyalty system that is the byproduct of BetConstruct’s commitment to innovation. The company will also demonstrate its comprehensive Sportsbook and Casino Suite, along with DECA, its next-level decentralised casino platform, and Umbrella, an AI-powered risk management solution. These offerings are designed to meet the needs of a diverse range of operators, ensuring seamless and engaging experiences for players across the regulated market.
Amusnet
Amusnet Sets the Stage for Global Gaming Excellence at G2E Las Vegas
Amusnet has announced its participation in the 23rd edition of G2E Las Vegas (Global Gaming Expo) at The Venetian Expo from October 7-10. As one of the largest expos globally, G2E provides a platform for the company to showcase products across its Online Casino, Live Casino, and Land-based verticals, positioning Amusnet as a prominent all-casino provider in the competitive iGaming industry.
“We are excited to attend G2E Las Vegas 2024 to present our latest online casino portfolio and Type S slot cabinets: our first-ever product series for Land-based casinos, designed to offer a competitive edge by combining Amusnet’s top-notch game portfolio with an immersive player experience. Our focus is on delivering solutions that maximize performance and cater to the evolving needs for both online and land-based casinos,” said Borislav Marinov, Head of Business Development, Land-based, at Amusnet.
Alongside its technical excellence, the premium Type S series showcases the company’s award-winning titles, including 20 Golden Coins, Extra Crown, Fruits & Gold, and Cocktail Rush. It also features Amusnet’s popular four-level bonus game, Jackpot Cards, along with other exciting features like Free Spins, Buy Bonus, Pick Me Bonus, and Symbol Upgrade.
Amusnet will host an activation featuring its premium slot cabinets at the upcoming expo, offering attendees the opportunity to experience the thrill of Type S in real time and win exciting gifts.
-
gaming2 years ago
ODIN by 4Players: Immersive, state-of-the-art in-game audio launches into the next generation of gaming
-
EEG iGaming Directory8 years ago
iSoftBet continues to grow with new release Forest Mania
-
News7 years ago
Softbroke collaborates with Asia Live Tech for the expansion of the service line in the igaming market
-
News6 years ago
Super Bowl LIII: NFL Fans Can Bet on the #1 Sportsbook Review Site Betting-Super-Bowl.com, Providing Free Unbiased and Trusted News, Picks and Predictions
-
iGaming Industry7 years ago
Rick Meitzler appointed to the Indian Gaming Magazine Advisory Board for 2018
-
News6 years ago
REVEALED: Top eSports players set to earn $3.2 million in 2019
-
iGaming Industry7 years ago
French Senator raises Loot Boxes to France’s Gambling Regulator
-
News7 years ago
Exclusive Interview with Miklos Handa (Founder of the email marketing solutions, “MailMike.net”), speaker at Vienna International Gaming Expo 2018