Brazil’s Senate’s Committee on Economic Affairs (CAE) greenlit a proposal on November 22 to regulate and tax the burgeoning market of online sports betting and casinos in the country.
The approved bill lays out regulations governing the operations of betting houses in the country. It proposes a 12% tax on companies operating in the sector and a 15% tax on the winnings accrued by bettors – a rate slightly lower than what the Ministry of Finance had initially suggested.
The committee also passed a request for an expedited vote on the proposal, already approved by the Chamber of Deputies, to be scheduled in the main plenary session of the Senate. Senate President Rodrigo Pacheco had hinted on November 21 that the bill could be on the agenda for this Wednesday’s session.
Senator Angelo Coronel, the bill’s rapporteur, expressed optimism about a plenary vote happening next week rather than the current week.
The proposed regulations are intended to cover fixed-odds bets on real sporting events and online gaming events such as casinos. The Ministry of Finance sees this initiative as a key revenue stream for the Union in the coming year, aligning with its broader goal of achieving a fiscal deficit of zero by 2024 without increasing public debt.
The proposed legislation focuses on regulating the online sports betting and casino sector, outlining key facets for operational compliance. The authorization process for online betting companies involves a thorough evaluation by the Ministry of Finance, considering documentation, company reputation, and technical and financial capacity.
To ensure local involvement, the rapporteur recommends that at least 20% of a company’s social capital be held by a Brazilian citizen. Those associated with betting houses will be barred from engaging in football corporations, sports organizations, financial institutions, or payment processors handling bets.
For accreditation, companies must pay a licensing fee of up to BRL30 million ($6.1 million) in Brazil, valid for three commercial brands over five years.
Restrictions on participation extend to individuals under 18, betting house personnel, public officials, and those diagnosed with gambling addiction. Facial recognition technology will be mandated for player identification. Oversight will fall under the Ministry of Finance, with penalties ranging from warnings to fines based on revenue percentages. The legislation emphasizes security measures, auditable systems, and actions against money laundering and terrorism financing.
November 23, 2023
November 14, 2023
Australia: Credit Card Use For All Gambling To Be Banned
New laws have been passed in the Australian House of Representatives on Tuesday to extend the ban on credit card use for online gambling. The ban, which was previously limited to physical gambling locations such as casinos, will now encompass websites and gambling apps. The legislation aims to address concerns raised by a joint inquiry into gambling reform and has received bipartisan support.
In recent years, there has been a growing concern about the impact of gambling addiction on individuals and their families. The accessibility and convenience of online gambling platforms has led to lawmakers calling for stricter regulations. The joint inquiry into gambling reform, established under the previous Morrison government, made several recommendations to address these concerns. One of the key recommendations was the extension of the existing ban on credit card use at physical gambling venues to also include online platforms.
The new laws passed by the House of Representatives seek to extend the ban on credit card use for gambling to online platforms. This means that punters will no longer be able to use their credit cards to place bets on websites or through gambling apps. The ban also includes digital currencies such as cryptocurrency, closing any potential loopholes that may have allowed for alternative forms of payment.
To ensure compliance with the ban on credit card use, the legislation empowers the media watchdog to enforce the new laws. Companies that fail to enforce the ban could face substantial fines, with penalties exceeding $234,000. This strict enforcement mechanism aims to deter gambling operators from disregarding the ban and to create a safer gambling environment for consumers.
Recognizing the need for a transitional period, the legislation allows for a six-month window for banks and gambling companies to implement the necessary changes. This timeframe enables these entities to adjust their systems and processes to comply with the ban on credit card use. During this period, clear guidelines and support will be provided to ensure a smooth transition and minimize disruption for both operators and consumers.
The extension of the credit card ban to online gambling platforms has significant implications for consumers. By removing the option to use credit cards for gambling, the legislation aims to prevent individuals from accumulating excessive debt and protect vulnerable individuals from falling into gambling addiction. It promotes responsible gambling practices by encouraging punters to only use funds they actually have available, rather than relying on credit.
The new laws also have implications for gambling operators, who will need to adapt their payment systems to comply with the credit card ban. This may involve implementing new payment methods that exclude credit cards or partnering with alternative payment providers to offer secure and responsible gambling options. While these changes may require initial investment and adjustment, operators have the opportunity to enhance their reputation as responsible providers and attract a more conscientious customer base.
The passing of the new gambling reform laws in the House of Representatives has generally been well-received by the public, who view it as a positive step towards curbing gambling addiction. However, there has been some opposition and attempts to amend the legislation by the opposition and crossbenchers. Despite these efforts, the laws were passed with bipartisan support, indicating a broad consensus on the need for stronger regulations in the gambling industry.
In recent years, there has been a growing concern about the impact of gambling addiction on individuals and their families. The accessibility and convenience of online gambling platforms has led to lawmakers calling for stricter regulations. The joint inquiry into gambling reform, established under the previous Morrison government, made several recommendations to address these concerns. One of the key recommendations was the extension of the existing ban on credit card use at physical gambling venues to also include online platforms.
The new laws passed by the House of Representatives seek to extend the ban on credit card use for gambling to online platforms. This means that punters will no longer be able to use their credit cards to place bets on websites or through gambling apps. The ban also includes digital currencies such as cryptocurrency, closing any potential loopholes that may have allowed for alternative forms of payment.
To ensure compliance with the ban on credit card use, the legislation empowers the media watchdog to enforce the new laws. Companies that fail to enforce the ban could face substantial fines, with penalties exceeding $234,000. This strict enforcement mechanism aims to deter gambling operators from disregarding the ban and to create a safer gambling environment for consumers.
Recognizing the need for a transitional period, the legislation allows for a six-month window for banks and gambling companies to implement the necessary changes. This timeframe enables these entities to adjust their systems and processes to comply with the ban on credit card use. During this period, clear guidelines and support will be provided to ensure a smooth transition and minimize disruption for both operators and consumers.
The extension of the credit card ban to online gambling platforms has significant implications for consumers. By removing the option to use credit cards for gambling, the legislation aims to prevent individuals from accumulating excessive debt and protect vulnerable individuals from falling into gambling addiction. It promotes responsible gambling practices by encouraging punters to only use funds they actually have available, rather than relying on credit.
The new laws also have implications for gambling operators, who will need to adapt their payment systems to comply with the credit card ban. This may involve implementing new payment methods that exclude credit cards or partnering with alternative payment providers to offer secure and responsible gambling options. While these changes may require initial investment and adjustment, operators have the opportunity to enhance their reputation as responsible providers and attract a more conscientious customer base.
The passing of the new gambling reform laws in the House of Representatives has generally been well-received by the public, who view it as a positive step towards curbing gambling addiction. However, there has been some opposition and attempts to amend the legislation by the opposition and crossbenchers. Despite these efforts, the laws were passed with bipartisan support, indicating a broad consensus on the need for stronger regulations in the gambling industry.
Amazon Sued Over Claim That It Offers Illegal Casino Apps
e-commerce giant Amazon, is facing a proposed consumer class-action lawsuit accusing the company of operating an “illegal internet gambling enterprise.”
The lawsuit, filed by a Nevada resident who claims to have been addicted to illegal online slot games, alleges that Amazon distributed over 30 illegal casino-style apps to consumers, thereby engaging in a “dangerous partnership” with virtual casinos. The complaint cites a 2018 U.S. appeals court ruling that declared “social casino” apps illegal under Washington state gambling law. This case is just one among many targeting online gambling platforms.
According to the lawsuit, Amazon and social casinos have found a way to bring slot machines into the homes of consumers throughout the United States, operating 24/7, 365 days a year. The games in question are free to play and do not offer cash payouts. Instead, users can win virtual chips and are encouraged to buy more to continue playing. However, despite the knowledge that social casinos are deemed illegal, Amazon allegedly maintains a 30% financial interest in these apps by brokering slot machine games, driving customers to them, and acting as the bank.
Social casino apps has led to a series of legal challenges and debates surrounding their classification and regulation. In 2022, a California federal judge ruled that Apple, Meta (formerly Facebook), and Google could be held liable for processing payments related to virtual chips used in social casino apps. This decision has sparked appeals from these tech giants, with the cases still pending in the 9th U.S. Circuit Court of Appeals. The outcome of these appeals will have significant implications for the future of the online gambling industry.
The class-action lawsuit against Amazon seeks damages, restitution, and other court orders on behalf of “tens of thousands of consumers.” The plaintiffs’ law firm, Edelson, has a track record of securing substantial settlements in similar litigation related to virtual casino apps. Todd Logan, who leads Edelson’s gambling practice, expressed his anticipation for trying the case before a jury of Amazon’s peers. The outcome of this lawsuit may set a precedent for future legal battles involving online gambling platforms and their partnerships.
The lawsuit, filed by a Nevada resident who claims to have been addicted to illegal online slot games, alleges that Amazon distributed over 30 illegal casino-style apps to consumers, thereby engaging in a “dangerous partnership” with virtual casinos. The complaint cites a 2018 U.S. appeals court ruling that declared “social casino” apps illegal under Washington state gambling law. This case is just one among many targeting online gambling platforms.
According to the lawsuit, Amazon and social casinos have found a way to bring slot machines into the homes of consumers throughout the United States, operating 24/7, 365 days a year. The games in question are free to play and do not offer cash payouts. Instead, users can win virtual chips and are encouraged to buy more to continue playing. However, despite the knowledge that social casinos are deemed illegal, Amazon allegedly maintains a 30% financial interest in these apps by brokering slot machine games, driving customers to them, and acting as the bank.
Social casino apps has led to a series of legal challenges and debates surrounding their classification and regulation. In 2022, a California federal judge ruled that Apple, Meta (formerly Facebook), and Google could be held liable for processing payments related to virtual chips used in social casino apps. This decision has sparked appeals from these tech giants, with the cases still pending in the 9th U.S. Circuit Court of Appeals. The outcome of these appeals will have significant implications for the future of the online gambling industry.
The class-action lawsuit against Amazon seeks damages, restitution, and other court orders on behalf of “tens of thousands of consumers.” The plaintiffs’ law firm, Edelson, has a track record of securing substantial settlements in similar litigation related to virtual casino apps. Todd Logan, who leads Edelson’s gambling practice, expressed his anticipation for trying the case before a jury of Amazon’s peers. The outcome of this lawsuit may set a precedent for future legal battles involving online gambling platforms and their partnerships.
November 09, 2023
DraftKings Contemplated 888 Holdings Takeover
American sports betting giant DraftKings had considered a takeover of 888 Holdings amid the struggles experienced by the latter company. While the former company has not yet approached 888 with a takeover proposal, it mulled over the possibility and discussed the matter with 888 shareholders.
According to a report by the Financial Times, DraftKings considered the takeover attempt during this summer. The financial news outlet also pointed out that the gambling company had engaged in preliminary discussions about the acquisition.
In June and July, Jason Robins, DraftKings’ chief executive officer, met with representatives of FS Gaming, a major 888 shareholder. Robins reportedly discussed the takeover with FS Gaming, inquiring about the possibility of an all-stock takeover of 888 Holdings.
The talks happened around the same time 888 Holdings was on the lookout for a new chief executive officer. For reference, that position was recently taken by Per Widerström who departed from a number of NED positions to dedicate all of his time to 888.
Financial analysts believe that 888 Holdings’ precarious position makes it an ideal target for takeover attempts. In addition to its slumping share price and management and business challenges, the company had to deal with regulatory complications and a review of its license.
As a result, the Financial Times believes that DraftKings could have theoretically acquired 888 Holdings for roughly $676.9 million, based on its market capitalization at the time.
However, 888 Holdings’ massive outstanding net debt could have been a problem, according to analysts. For reference, earlier this year the company acquired the British gambling giant William Hill from Caesars Entertainment.
DraftKings’ consideration of a takeover aligns with the company’s overall expansion strategy.
In the meantime, DraftKings published its financial results for the third quarter of 2023. The company posted revenue of $790 million for the period, which attests to the success of its business strategy.
As a result of its strong Q3 results, DraftKings updated its FY 2023 guidance and is now expecting full-year revenue in the range of $4.5-4.8 billion.
The favorable results were attributed to the company’s launch in a number of new jurisdictions. The new launches are also expected to have a positive effect on the company’s adjusted EBITDA for 2023.
Speaking of launches in new jurisdictions, the company recently went live in Maine, enjoying a stellar launch during the first weekend of regulated sports betting in the state.
November 01, 2023
Spain’s gambling prevalence study raises questions on effective protections
Spain’s Ministry of Consumer Affairs has published the findings of its “Prevalence Study of Gambling on the General Public of Spain”.
The study was presented to public health and welfare stakeholders who form part of the Responsible Gambling Advisory Council. The council is charged with developing safer gambling policies to protect Spanish consumers from gambling harms.
Research was conducted using 20,000 customised surveys throughout Spain’s 17 autonomous communities – with each providing ‘a sample selected for its representativeness through a random procedure’.
The Ministry states that the research questions were designed by the scientific Unit of the Responsible Gaming Advisory Council. Gambling prevalence data aims to reflect the Spanish public’s perspectives on variables such as channel, type of player, age, and gaming segment when engaging with gambling activities (retail and online).
The study further offers an analysis of risks associated with various gambling products and player segments. It also presents observations on social and economic characteristics that impact prevalence and potential harms.
Regarding public demographics of gambling, the study estimates that approximately half (49.5%) of Spain’s population (47.5 million) engages in gambling. Of these, 97% gamble in person and 6.6% online.
The Spanish lotteries of Once and SELAE recorded the highest engagement, with 81% of respondents stating that “they only play lotteries.”
Online gambling (excluding lotteries) predominantly attracts male players, with 73% of Spanish male players participating, whereas 52% of Spanish female gamblers stated they only play lotteries.
Across Spanish provinces, the highest penetration of online gambling was observed among male players aged 26-to-35 (23.7%) and 35-to-45 (23.2%).
The youngest demographic segment, those aged 18-to-25, mainly engage in online gambling services, reflecting broader shifts in digital consumer habits.
Providing a breakdown of “public engagements,” the study reports that sports betting (31%) and lotteries (27%) are the product segments with the highest weekly frequency (more than twice a week).
On public protections, prevalence data suggests that gambling in Spain is generally moderate and responsible, with the majority of players spending less than one hour a week and less than €50 per month on gambling activities (retail or online).
Spanish online gambling trade body, Jdigital, responded to the prevalence study’s findings: “We believe that the Ministry of Consumer Affairs boasts of regulating based on science. However, from our perspective, over the past four years, the Ministry has first regulated and then presented data to justify its legislation.”
Reflecting on the study’s headline finding that only 6.6% of Spanish gamblers play online, Jdigital questions the Ministry of Consumer Affairs’ “apparent demonisation of the online gambling sector.”
In H1, the Spanish government approved the Ministry’s “Royal Decree on Responsible Gaming Environments”. This mandate will ensure that Spanish gambling adopts the strictest surveillance of gambling operators and market activities within Europe by 2024.
Jdigital questions why the Ministry continues to overlook its membership concerns about black market infringements targeting national consumers.
“We are concerned about the limited awareness regarding the differences between legal and illegal gambling, as highlighted in the Online Player in Spain report by Jdigital in 2022.
Furthermore, we are surprised that the report from the Ministry of Consumer Affairs presents such low illegal gambling data, especially considering the high number of websites that are shut down each year.”
Currently, the Spanish regulator DGOJ is undergoing a stakeholder consultation on how to implement the protections of the Ministry’s decree. This includes considerations regarding deposit limits, record-keeping, player registries, and enforcing in-play restrictions on high-risk games.
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