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Compliance Updates

UKGC Issues Stricter Consumer Protection Rules for Lockdown

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The UK Gambling Commission (UKGC) has published more stringent rules for online operators for protecting customers during lock down. The new set of rules come after new evidence has surfaced that show some gamblers maybe at greater risk of harm during lockdown. The new guidelines deal with the need for affordability checks, prevention of reverse withdrawals and restrictions on bonus offers.

The Commission had collected data through the gambling industry and also through YouGov surveys. The data show that during lockdown gambling participation is down overall. This reflects the closure of land based venues and the cancellation of sporting events, with only a small number of people starting to gamble for the first time.

Gambling Commission chief executive Neil McArthur said: “Operators must use the data they hold to protect their customers and now, more than ever, it’s vital that online operators really know their customers by monitoring how long they are playing for and understanding how financial uncertainty is impacting them and what they can afford to gamble with.  To ensure operators do that, we are strengthening our guidance and expect operators to take account of that to prevent bonus offers or inducements being offered to customers who are showing any sign of harm‘’

Work was already underway to address many of these issues but this means we will now accelerate this work due to the unique situation that many consumers will find themselves in during lockdown.

‘’We will continue to monitor and publish the data that we are collecting and we will take further measures if required. We are monitoring online operators closely and if we see irresponsible behaviour we will step in immediately, suspending licences if we need to.”

Minister for Sports, Tourism and Heritage Nigel Huddleston said:”It is vital that people are protected from the threat of gambling related harm and I welcome these latest steps from the Gambling Commission.We will continue to monitor the situation closely and will not hesitate to take further action if required.”

The data also shows that in terms of time spent gambling, while overall session length has decreased, there has been an increase in the number of sessions that are played for over an hour.

The Commission has reviewed its current guidance in light of the risks that some players may be experiencing harm while in lockdown, and online operators must now take account of the Commission’s additional guidance, which makes clear they should:

  • Prevent reverse withdrawal options for customers until further notice
  • Cease to offer bonuses or promotions to all customers who are displaying indicators of harm
  • Interact with customers who have been playing for an hour in a single session of play
  • Review thresholds and triggers for new customers to reflect the operator’s lack of knowledge of that individual’s play and spend patterns
  • Conduct affordability assessments for individuals picked up by existing or new thresholds and triggers which indicate consumers experiencing harm – limiting or blocking further play until those checks have been concluded and supporting evidence obtained, and;
  • Implement processes that ensure the continual monitoring of their customer base – identifying patterns of play, spend or behaviours have changed in recent weeks.
  • Online operators will be expected to make changes to act on this guidance as soon as possible. The Commission will bring forward plans to consult on whether further targeted player protection measures are required on a permanent basis.
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Representatives from AGRESE and LOTESE Visits Lottopar

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On July 3rd and 4th, the Paraná State Lottery (Lottopar) received at its headquarters representatives from the Sergipe State Public Services Regulatory Agency (AGRESE) and the Sergipe State Lottery (LOTESE), on an institutional visit aimed at exchanging experiences and technical in-depth study on the regulation, operation and control model of state lottery activity.

During the two-day event, visitors learned in detail about the regulatory framework built by Lottopar, the systems adopted to ensure the traceability and security of operations, the criteria for accrediting operators and laboratories, and the responsible gaming and anti-money laundering policies implemented since the organization’s founding.

“We are delighted to welcome AGRESE and LOTESE. We believe that the development of state lotteries necessarily involves this type of technical cooperation, where successful experiences can be shared and adapted to the needs of each federative entity. The Lottopar model is constantly evolving, and it is a pleasure to be able to contribute to other states that, like Sergipe, demonstrate a commitment to serious, safe, and responsible regulation,” Lottopar CEO Daniel Romanowski said.

The exchange of information between states is essential for consolidating a safer, more efficient national lottery environment aligned with international best practices. The visit also reinforces the importance of joint action between regulatory agencies and state lotteries in formulating effective public policies.

AGRESE CEO Mr. Luiz Hamilton Santana de Oliveira said: “The institution is very honored and pleased to have hosted this technical visit, as it was a very productive two days, where we were able to further enhance our knowledge. We will implement what we learned and saw here into our regulations back in Sergipe.”

Adriana França Coserva Hide, CEO of LOTESE, said: “On behalf of Loterias de Sergipe, I would like to express our deep gratitude to the Lottopar team for the warm welcome and, most importantly, congratulate them on the exemplary work they have been doing. We were impressed by the level of excellence, professionalism, and commitment to social well-being that permeates Lottopar’s entire structure and operations. This exchange of experiences was extremely enriching and reinforces our conviction that cooperation between state public lotteries is a fundamental path to strengthening the sector in Brazil. We leave here inspired and even more committed to the mission that unites us.”

The agenda concluded with technical visits to Lottopar’s strategic departments and the headquarters of accredited partners, focusing on practical observation of operations. New joint initiatives are expected to be established soon, solidifying a virtuous cycle of cooperation between Brazilian public lotteries.

The post Representatives from AGRESE and LOTESE Visits Lottopar appeared first on Gaming and Gambling Industry in the Americas.

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Compliance Updates

New ESRI Research Commissioned by the GRAI Suggests Gambling Offers Lure People to Bet More, Particularly People at Risk of Problem Gambling

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A new study commissioned by the Gambling Regulatory Authority of Ireland (GRAI) /Department of Justice, Home Affairs and Migration and undertaken by the Economic and Social Research Institute (ESRI) shows that betting and gambling companies offering special offers or inducements encourages people to gamble more than they would otherwise, even when the odds offered are “bad”.

Special offers or inducements, such as free bets and moneyback guarantees are regularly used by gambling companies in their marketing campaigns. The study found that vulnerable people such as those at higher risk of becoming problem gamblers, were most at risk of gambling more, and losing more, as a result of being offered inducements.

In a controlled experiment run with a sample of 622 men under 40, participants, were given money to place up to six realistic bets on the Euro 2024 football tournament.

Half of the participants were randomly selected and shown offers of free bets and moneyback guarantees on some bets. which caused these participants to spend over 10% more than those who were not given inducements. The inducements also reduced the number of participants opting not to bet by nearly half. Even inducement bets that were designed as “bad”, showing odds far below market rates, were undertaken by participants in this group, who were three times more likely to spend money on “bad” bets.

These findings illustrate the harm inducements cause, particularly to those who are susceptible to gambling harm.

Under the Gambling Regulation Act 2024, the legislation which underpins the work of the GRAI, inducements or encouragement to gamble further will soon be an offence and licensed operators will no longer be allowed to offer free bets which are targeted at individuals and specific groups. Multiple European countries have also begun to regulate inducements.

Participants were surveyed after the study on their knowledge and understanding of inducements. Even amongst regular betters, most did not know that there were restrictions on free bets and that they would not receive their stake back if they won a free bet.

Paul Quinn, Chairperson of the GRAI, said: “I very much welcome this research from the ESRI examining the impact of inducements to gamble on gambling behaviours. Having a clear evidence base is critically important to the GRAI as we commence our work in regulating the gambling industry. This latest research will help inform that work and in educating the public on this matter.

“This study clearly indicates the damaging effect of certain practices around inducements. It underlines the importance of the provisions of the Gambling Regulation Act in limiting a person’s exposure to inducements to gamble. We look forward to working with Minister O’Callaghan in addressing the issue as we implement the new regulations.”

Anne Marie Caulfield, CEO of the GRAI, said: “The ESRI’s findings confirm that not only is the general public not aware of the dangers associated with inducements to bet, but also that the impact of these inducements go beyond simple marketing by betting companies.

“It is our responsibility to ensure that gambling operators do not encourage excessive or compulsive gambling behaviour, and that we protect vulnerable people in our society, such as children and young people and those more likely to experience gambling harm.

“The Gambling Regulation Act 2024 sets out obligations for licensees in the way in which inducements can be offered, including a ban on targeted inducements, and the findings of this study affirm these measures.”

Diarmaid Ó Ceallaigh, Postdoctoral Research Fellow, Behavioural Research Unit, ESRI, said: “Our findings imply that gambling offers aren’t merely marketing tools, but pose a real risk of financial harm, particularly among vulnerable groups.

“The results support the case for stricter regulation of gambling offers in Ireland, following steps already taken in other European countries, such as banning sign-up bonuses, restricting offers to at-risk individuals, and capping their value.”

The post New ESRI Research Commissioned by the GRAI Suggests Gambling Offers Lure People to Bet More, Particularly People at Risk of Problem Gambling appeared first on European Gaming Industry News.

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Compliance Updates

VNLOK Calls for Strict Action Against Illegal Providers and Balanced Approach to Gambling Regulation

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The latest impact assessment by the Dutch Gaming Authority (KSA) shows that players on the legal market are increasingly being protected. Since the introduction of new playing limits and duty of care rules on 1 October 2024, fewer players are setting high limits and losing smaller amounts.

The number of accounts losing €1000 or more has dropped by over 75% to 0.9%. At the same time, the number of accounts per player remains stable (an average of 2.4 accounts per player). The so-called “hopping” behaviour between legal providers is therefore absent.

There are, however, worrying signals about a further growing illegal market. The previous report of the KSA already showed that for every euro gambled online, Dutch people spend €0.50 on illegal gambling sites. Now it appears that since the introduction of the new rules, the average monthly search volumes for illegal gambling sites have increased by 23% to almost 1 million. VNLOK warns: the control and protection of vulnerable players will be lost in this way. While the legal market is strictly regulated, the illegal supply remains too easily accessible for vulnerable players.

Björn Fuchs, chairman of VNLOKs, said: “It is good that the new rules for players who gamble legally are effective. At the same time, we cannot close our eyes to the other half: the illegal market. It is precisely the players who wager the most money and vulnerable groups, such as minors and young adults, who seem to continue to find their way to the illegal supply. That is precisely the group that is most at risk.”

VNLOK emphasized that an excess of new regulations will have undesirable effects. Fuchs added: “If well-intentioned regulation is piled on top of regulation, this will drive more players to the illegal supply. That is where – without any form of supervision or protection – major problems arise.”

VNLOK has called for strict action against illegal providers and for a balanced approach to regulation: effective where necessary, but without unnecessarily hindering the player and the legal supply. VNLOK urges that all findings from the latest impact assessment must be taken into account when creating new rules.

The post VNLOK Calls for Strict Action Against Illegal Providers and Balanced Approach to Gambling Regulation appeared first on European Gaming Industry News.

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