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Update: Eurosport Fined for Gambling Ads

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On September 16, 2021 the National Police Board (“NPB”) imposed a prohibition order and conditional fine of EUR 800,000 for Eurosport SAS (“Eurosport”), a pan-European sports network established in France, for broadcasting gambling advertisements on the Finnish language version of Eurosport 1 television channel.

According to our sources, prior to this the NPB had twice approached Eurosport arguing they infringe the Finnish Lotteries Act marketing prohibitions and requested the actions to be ended. Eurosport remained passive throughout the process until October 27, when they informed the NPB that in their view the decisions of September 16 were “manifestly incorrect”. Eurosport added that they will comply with the NPB’s request for now and they will not broadcast commercial gambling advertising on Eurosport 1 in Finland for the period of three months starting from October 28, 2021. Eurosport notified the NPB of their intention to appeal the NPB’s decisions of September 16 and the Helsinki Administrative Court confirmed that Eurosports appeal was filed October 28 and it is currently pending.

The subject matter of the case is interesting. The NPB makes a convincing case that Eurosports gambling advertisement is infringing the Finnish Lotteries Act. However, their argumentation regarding Audiovisual Media Services Directive (“AVMSD”) is less convincing.

The country of origin principle (“CoO principle”), according to which each EU Member State is legally responsible for all audiovisual media services originating from its own country, is a cornerstone of the AVMSD. Article 4 lays down exceptions to the CoO principle and defines the procedure which must be followed if a Member State is to take action against a media service provider established in another EU Member State.

With regarding to the AVMSD, the NPB would have to at the very least notify the EU Commission pursuant to Article 4 (4) of their intended actions and to substantiate the grounds on which its assessment is based. The EU Commission would need to decide that the measures are compatible with EU law. That has not been the case here.

The NPB argues that the AVMSD does not intend to harmonise gambling advertising in the EU and thus the CoO principle or Article 4 procedures do not restrict them taking direct action against Eurosport.The NPB’s argumentation is based on the recital 10 of the consolidating directive of 2018 which states that the AVMSD does not affect a Member State’s competence to decide on national approach to gambling advertising presumed that the measures taken are justified, proportionate to the objective pursued and necessary under the EU law.

As it is not stated anywhere in the AVMSD (original or consolidated version) that gambling marketing is excluded from the scope, the NPB’s argumentation appears at least questionable. If the Helsinki Administrative Court comes into a similar conclusion the case will fall apart.

The article has been written Antti Koivula, Consulting Legal Advisor at Legal Gaming.

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Compliance Updates

TaDa Gaming Secures UK Gambling Commission Licence

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TaDa Gaming has added the UK Gambling Commission (UKGC) licence to its business operations alongside its Malta Gaming Authority (MGA) Hellenic, Romanian ONJN and Swedish Spelinspektionen ones.

Following a successful conclusion to its application to the Gambling Commission, players across the UK – and other international jurisdictions – will now be able to play TaDa’s industry changing fishing-shooting games, immersive slots, crash and bingo releases.

As an established brand with over 30 years’ industry experience, TaDa Gaming has been making a name for itself in Europe, Latin American, Africa and, most recently, North America. The valuable UK market has been in TaDa’s sights for some time and the new licence will enable access to this exciting operator and player base.

Andy Huang, CEO of TaDa Gaming, said: “Whilst all gaming authorities rightly insist on rigorous standards and strict adherence to the rules, the UKGC has the reputation for being the most demanding. We are delighted to have had our game protocols and commitment to the highest standards of fair play verified in this way, allowing us to expand our presence, increase our trust levels and deliver ever more safe, reliable and innovative gaming experiences to players in the UK and beyond.”

The post TaDa Gaming Secures UK Gambling Commission Licence appeared first on European Gaming Industry News.

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RWA Expresses Concern Over Govt’s Decision to Double Tax Cap on Licensed Online WSPs

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Responsible Wagering Australia (RWA) has expressed serious concern over the Northern Territory Government’s decision to double the annual bookmaker and betting exchange tax cap on licensed online Wagering Service Providers (WSPs), warning that the move is economically reckless and risks undermining the Territory’s reputation as a stable and competitive licensing jurisdiction.

The doubling of the cap, announced in the Northern Territory Budget, comes without any industry consultation and, perplexingly, before the final report of the Northern Territory Government’s own Racing Industry Review – a review explicitly commissioned to inform long-term sustainability settings for the wagering and racing sectors.

Responsible Wagering Australia CEO Kai Cantwell said the decision had blindsided the industry and would put investment from WSPs – who are some of the NT’s biggest employers – at risk.

“RWA have participated meaningfully in the review and eagerly anticipated a new strategic vision for racing in the Territory. This decision, made before the Review has had a chance to lay that strategic vision, has blindsided WSPs and materially undermines any outcome of the Review,” Mr Cantwell said.

“RWA members have proudly supported the Territory for years, investing in people, infrastructure, and long-term economic growth.

“We will continue to advocate for a licensing environment in the Northern Territory that upholds the highest standards of consumer protection while also incentivising business to invest in the local economy.

“RWA members are all licensed in the Northern Territory, directly employing around 600 Territorians in high-skilled roles across technology, customer service, and compliance – a figure that rises to over 1,000 when including all wagering service providers licensed in the Territory.”

In FY23 alone, the Australian licensed online wagering industry contributed more than $150 million to the Northern Territory economy, including:

• $47.7 million in taxes and levies

• $2.5 million in product fees to the NT racing industry – directly supporting prize money, operations and promotional activities

• $46 million in wages paid to local staff

“The NT Government was elected on a platform of driving economic growth, delivering a competitive tax and investment environment and attracting private investment, with Chief Minister Lia Finocchiaro stating the Territory is ‘open for business’ and passing legislation to ‘strengthen our ability to deliver economic growth and attract investment’ – yet this policy decision directly contradicts that commitment and risks undermining investor confidence in the Territory,” Mr Cantwell said.

RWA questioned the timing of the announcement, noting that it comes before the outcomes of the Government’s ongoing Racing Industry Review have been released.

“This tax hike preempts the outcome of the Review, a process that was meant to guide long-term, evidence-based and sensible reform,” Mr Cantwell said.

“It sends a message that consultation, process and industry sustainability have taken a back seat to short-term revenue grabs.

“A financially sustainable and well-regulated racing and wagering industry is critical to ensuring its long-term viability and the significant economic and employment benefits it delivers to Territorians.

“Rather than imposing blunt tax increases, the Government should be working with industry to identify growth opportunities that will ensure the Territory’s continued leadership as a licensing jurisdiction.

“We are calling on the Treasurer and Chief Minister to reconsider this decision and to engage in genuine consultation with the industry before moving forward.”

The post RWA Expresses Concern Over Govt’s Decision to Double Tax Cap on Licensed Online WSPs appeared first on European Gaming Industry News.

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Compliance Updates

Minimum Deposit Casinos Warns of Sweeping Changes as States Crack Down on Online Sweepstakes Casinos

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Minimum Deposit Casinos (MDC), a leading global online casino review hub and division of the OneTwenty Group, has released new insights into the tightening regulatory landscape for sweepstakes-based gaming in the US. Recent moves by lawmakers in New York, Louisiana, and Montana suggest a coordinated push to eliminate or restrict these alternative online gambling models.

In New York, Senate Bill 5935, introduced by Sen. Joseph Addabbo, has advanced through the legislative process and targets the operation and supply of sweepstakes-style platforms. The bill specifically addresses platforms that use two forms of digital currency — one of which can be redeemed for real-world prizes — a setup now under scrutiny by state regulators.

Meanwhile, Louisiana has taken a similarly hard stance with Senate Bill 181, led by Sen. Adam Bass. The bill aims to ban all forms of sweepstakes games that mimic casino or sports betting experiences, including both the promotion and operation of such services. It passed the state Senate unanimously and is currently being reviewed by the House.

Montana could become the first U.S. state to enact a full prohibition if Senate Bill 555 is signed into law. The bill, which has passed both chambers, seeks to clearly define and outlaw the operation of unlicensed sweepstakes gambling websites.

“States are clearly starting to zero in on grey-area gambling models. These bills show how quickly the legal landscape can shift, and it’s crucial that players and operators stay ahead of the curve,” said a senior analyst at MDC.

The post Minimum Deposit Casinos Warns of Sweeping Changes as States Crack Down on Online Sweepstakes Casinos appeared first on Gaming and Gambling Industry in the Americas.

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