April 12, 2023

Brazil To Raise Sports Betting Taxes

Brazil passed the law allowing for sports betting to be legal in the country but now the government are reported to be looking at charging gambling firms 15% tax on their gross gaming revenues (GGR0 according to reports in the country.

Local news outlets say that once President Luiz Inacio Lula da Silva returns from his official state visit from China next week he will sign into law the new tax regime along with increasing the fee to operate in the country to almost $6 million.

It is hoped that the government will reap in some $2.9 billion a year from the new tax and operating levy.

The executive order on the increase will be signed by the President and Finance Minister Fernando Haddad it is said and will require any betting firm who wishes to operate to be based in Brazil. The increase in fee and tax it is hoped will help offset the increased amount spent on public spending.

Albania Moves to Regulate Online Gambling

Albania has long since struggled with gambling in the country and back in 2019 banned all forms of gambling except a few land based casinos, however after three years lawmakers are now making efforts to regulate and allow for online gambling to return under a stronger framework.

On Wednesday this week the government released its draft law on internet gambling in an attempt to ensure there are no illegal unauthorised gambling within the country.

Some of the details for allowing online gambling include, only accepting digital payments no third party payments accepted or direct payments to the operator, must be a registered, recognised supplier of payments.

All data on players registering must be kept for a minimum of three years and only pre-registered players can gamble. The storing and keeping of personnel data must be in accordance of laws to be set down at a later date.

No cash is allowed to be accepted by an agent or operator of online gambling, to accept cash would breach licensing regulations, this has been placed within the regulations to stop money laundering.

All operators must deposit in a recognised bank a sum of €1.5 million to ensure payments for customers, this deposit must be equivalent of 5% of all deposits made, so can be more than mentioned but not less. This holding account is regulated by the Finance Ministry.

A further €450,000 must be kept in a separate bank account to ensure licensing and regulation payments to the government. All registered companies wishing to run and operate online gambling must be a joint-stock company headquartered in Albania and registered with the National Business Centre.

A set limit of 15% corporate tax has been announced for all operators, the regulations will now be checked and placed into law by the National Agency of Information Society with any amendments made.

The timeline for passing the laws needed to restore online gambling have not been mentioned and could take the remainder of this year to allow for the creation of online gambling to start in 2024.

March 24, 2023

German Watchdog Imposes First Fine on Gambling Firm

A gambling firm in Germany has received the country’s first-ever fine for breaching advertising guidelines.

The company, which hasn’t been named by the German regulator Gemeinsamen Glücksspielbehörde der Länder (GGL), was issued with a “severe fine” of five digits at the beginning of the month.

It’s the first fine since the Fourth State Treaty on Gambling was introduced in July 2021 that a gambling licence holder has been given a financial penalty for failing to comply with advertising regulations. Back in July last year GGL was created to oversee illegal gambling and advertising via IP and payment blocking. In January this year it was given complete control of gambling regulation in the country. In the past gambling enforcement was carried out by individual states.

This new breach of the State Treaty on Gambling was committed after the licence holder deliberately advertised their services on affiliate websites which also permitted unregulated gambling adverts.

A spokesman for the GGL said: “A five-digit administrative offense notice was issued to a provider of games of chance on the Internet who, after receiving the state gambling license from the GGL, deliberately advertised his offer on websites that also advertised illegal offers.”

The GGL’s CEO, Ronald Benter, warned that the enforcer has no hesitation in revoking a license from a betting services provider who continued to flout the regulations with repeated violations.

He added: “The withdrawal of the permit in the event of repeated violations of the provisions of the State Treaty on Gambling is a measure that we do not shy away from.”

The desire to advertise on illegal sites made no sense anyway, Benter said, since it only served to damage the license holder’s reputation within the sector.

Germany isn’t the only European country to come down hard on gambling license holders who breach rules. The Netherlands Gaming Authority de Kansspelautoriteit (KSA) has upped it is enforcement activities this year, giving on the spot fines to both gambling license holders and illegal gambling providers.

Only two ago, for instance, Bet365 received a €400,000 from KSA for breaching the country’s advertising guidelines. The operator, Hillside New Media Malta was found guilty of publishing adverts which were deliberately targeted at young adults (aged 18 to 24). The regulator was alerted after an 18-year-old received several emails from Bet365 encouraging them to join and offering various bonuses. Following an investigation, it was discovered other youngsters had received similar communication.

March 14, 2023

How Pull-Tabs Became a Pillar of Minnesota’s Bar Culture

When you walk into the Fraternal Order of Eagles club in South Minneapolis, you’re greeted by the croak of a bingo caller. The bar, locally known as Eagles #34, is thrumming with the sounds of a local punk band soundchecking on the other side of wooden accordion doors. Dart league has just wrapped up, and teammates are gathered in a booth, ripping excitedly at paper cards and drinking Michelob Golden Light.

This is Minnesota bar culture, distilled perfectly into a set of communal rituals. At the center are 2-inch-by- 1-inch tickets with little perforated tearaway strips called pull-tabs. They work like a scratch ticket or a little cardboard slot machine. The goal is to rip away the strips and uncover a set of matching symbols. The tearing of the pull tabs establishes a rhythm that underscores the rest of the activity in the bar.

As the night bores on, the spent cards pile up in red plastic fry baskets, strips curled away from the card in defeat. The game manager — in this case, a saintly older woman with Martin Scorsese glasses — sits at the front of the room, surrounded by clear boxes of unclaimed tabs. Some call her stand the “jar bar.” Prizes, some as high as $700, are labeled on the outside. Every once in a while, that cadence of ripping and shuffling is interrupted by a triumphant yelp. Someone’s pulled a winner. They hand the lucky card to the manager, who blots out the prize on a sign with a big orange dot, and takes a tip for her trouble.

Thirty-eight other states sell pull-tabs, including Minnesota’s neighboring rival Wisconsin, which is more often lauded for its dive bar traditions. But this scene is purely Minnesotan.

According to 2019 data from the National Association of Fundraising Ticket Manufacturers (NAFTM), a trade organization for pull-tabs manufacturers, Minnesota raked in $1.97 billion in gross receipts from pull-tabs that year, 533 percent more than the average of the 13 other states polled. In 2012, Minnesota became the first state to legalize electronic pull-tabs in an effort to offset the cost of building the Minnesota Vikings’ new home field, U.S. Bank Stadium. Minnesotans responded with so much gusto that the stadium is nearly debt free, 20 years ahead of schedule. In 2022, electronic and paper pull-tabs brought $4.02 billion in wagers, netting the state over $425 million in revenue.

Nowhere in the world are pull-tabs such an ingrained part of a night out as they are here in Eagles #34 and the thousands of other bars between the St. Croix and Red Rivers. But how did the North Star State rise so high above its peers and become the pull-tabs capital of the universe?

Barnstorming for Bingo

It’s no coincidence that bingo and pull-tabs are often found in the same bar. It was in the 1970s that bingo halls, veterans’ organizations, and fraternal orders first started to expand into the “instant bingo” cards known today as pull-tabs. These games were, at the time, illegal.

Even though Minnesota had legalized bingo games for charitable gambling in 1945, pull-tabs were expressly disallowed. But the decades after saw a gradual expansion of acceptable bingo games. In 1978, the state legislature expanded the types of bingo allowed to include things like raffles and paddle wheels. According to a history written by the Minnesota House Research Department, sanctioning these games was merely “a recognition of a form of gambling that was already widespread despite being illegal,” but even so, pull-tabs were seen as “a minor part of the gambling picture.”

In 1981, pull-tabs finally got added to the list of legal bingo games. But there was a variable the legislature hadn’t calculated. In the 1978 law change, they’d allowed for any business with a liquor license to hold such games. The intention was to keep them at private clubs, but because pull-tabs were played out of a very portable booth with a small footprint, charities began to rent space in public bars.

In states like Texas and California, pull-tabs could only be sold at official bingo games, and often bars were not eligible to host. Even in Wisconsin, there was a raging debate about the legality of pull-tabs that kept them from ubiquity. But Minnesota took the restrictor plates off — even if that wasn’t the legislature’s intention — and the game exploded out of small fraternal clubs and into mainstream life.

“Most clubs [where pull-tabs are found] around the country are closed clubs, only open to members and guests,” explains NAFTM president Mary Magnuson. “Minnesota is odd by comparison, because ours tend to be public.”

In 1984, responsibility for regulating pull-tabs was transferred to the state, and the Gambling Control Board was founded. Games were so prevalent that Attorney General Hubert H. Humphrey III wrote that Minnesota was “on a gambling binge,” and by 1989, charitable gambling surpassed $1 billion in gross receipts for the first time.

Pull-tabs are now available at everyday bars in states like Nebraska, Ohio, Massachusetts, Alaska, and North Dakota, Magnuson says. And others, like Washington and Indiana, now allow for pull-tabs that have no charitable purpose. But as more states have brought on the old model, Minnesota has innovated new ways to bring the game to larger audiences.

In 2012, Minnesota became the first state to legalize electronic versions, further embedding the pop-and-win sensation into bar life in the Gopher State. Played via touchscreen terminals like video poker, e-tabs allow players to gamble at the bar rail, without any of the waste or the pageantry.

Minnesota’s gusto for pull-tabs may be mostly due to sheer exposure — in no other state is the game of chance so common — but Magnuson, a St. Paulite, supposes that there is something of a social X-factor. Minnesota consistently ranks as one of the most charitable states in America. Proceeds of pull-tabs once benefited local church parishes, but now they’re more likely to support causes close to Minnesotans’ hearts, like affordable housing programs and youth hockey teams. When you combine that philanthropic nature with the ubiquitous opportunity to exercise it, you arrive at a cultural touchstone.

“It’s embedded in Minnesota,” Magnuson says. “I think people have a sense that, even though they’re spending money, and they may actually be losing money, that money goes to a good cause, anyway.”

Take a Chance at the Dive

Bill Lindeke, a lecturer of Urban Studies at the University of Minnesota and MinnPost columnist, has maintained the loving, ground-level blog Twin Cities Sidewalks since 2005. He’s also produced several booklets profiling the dives of both Minneapolis and St. Paul, and in each he lays out the trappings of the aesthetic: greasy food, drop ceilings, and pull-tabs.

Borne in the fraternal clubs and veterans organizations, pull-tabs have thrived in dives and down-home neighborhood places where regulars come to sip and tear. Lindeke’s booklets and his 2019 tome “Closing Time: Saloons, Taverns, Dives and Watering Holes of the Twin Cities,” written with Andy Sturdevant, are littered with references to Minnesota’s favorite game, telling the lore of places like Half Time Rec, once embroiled in a pull-tab profit-skimming scandal, and the windowless Vogel’s Lounge.

“I would put pull-tabs in [the] category of vernacular, idiosyncratic, cultural bar traditions,” Lindeke says. “It’s one of those things that if you see it, you know you’re in an old-school, very local, kind of place.”

When local restaurateur Doug Flicker and his wife Amy Greeley took over the notorious Sunrise Inn, they inherited a piece of Twin Cities dive bar history. Flicker called the place “a drinking bar,” a no-frills hole in the wall embedded in a neighborhood that dreaded the derelicts it attracted.

Flicker wanted his new pub to pay homage to this classic piece of drinking culture. Opened in Sunrise’s former location in 2017, Bull’s Horn Food and Drink not only honors its forebear, but the countless other lowbrow spots littered across the Minnesota landscape. There’s greasy food, a weathered wood bar, cheap beer, a jukebox, bubble hockey, and, right at the back, straight down from the doors, a pull-tab booth stacked with clear boxes.

Flicker admits he could probably make a lot more money by putting a table in place of the booth, and says he barely makes any money from renting the space to the pull-tabs vendor. But his commitment to the dive bar aesthetic would not be complete without the game on site. It takes him back to his days as a kid, watching his parents drink in his uncle’s bar, Flicker’s Liquors in the northern town of Pierz.

“It’s just one of those things that I never questioned really where it came from or what it was,” Flicker says. “It was something they would do, and they would have fun doing it, and every once in a while, they would win a couple bucks.”

Lindeke prizes the communal aspect of pull-tabs, something that becomes a fabric of a night in a place like Bull’s Horn. There are certain traditions Minnesotans have, and if you’re bellied up with some regulars, you need to know the etiquette.

You purchase tabs in rounds. Maybe everyone puts in a couple bucks per round, or maybe each person puts down a $20 bill for the table. But you buy together, rip together, and win together. If you pull a $200 or $500 winner, that’s not your money — it’s everyone’s, and everyone celebrates with you. You may pocket some cash, but you’d be better served buying some pitchers and a couple Heggies frozen pizzas for the table. Oh, and always tip the game manager for your good fortune.

There are also customs for losing tickets. Some discard them in piles around their barstools, a careless gesture that isn’t seen as rude but as a monument to misfortune. Most people collect spent cards in fry baskets. Others fiddle with them, building houses of cards or folding them together in slapdash origami.

If you’re lucky, you’ll be playing on a night where there’s a run on the box. That’s when the supply of tickets in the plexiglass gets low without the big jackpot being claimed. The excitement in the air starts to percolate. Lines form at the counter, with patrons throwing down bills to try and turn the average night into a legendary evening. If it goes well, the whole box gets bought out, and whenever that big winner gets pulled — whoever in the bar pulls it — the whole place erupts.

“I was at a bar called Shadey’s [in St. Paul] one afternoon, and a bunch of the regulars started just pulling out hundreds of dollars out of the ATM and buying all the pull-tabs,” Lindeke says. “They saw there were a bunch of winners left, and there were only so many to go. Somebody made some serious money that day.”

Pulling for a Future

When e-tabs debuted a decade ago, Lindeke was concerned that the “kitschy, interesting, almost innocuous” traditions around pull-tabs would be lost, effectively turning a communal game into an iPad casino app. In 2012, when e-tabs first appeared, he wrote they would “ruin everything.” Lindeke’s concern, though bombastic, was shared by many, who feared cheaper operations would make paper pull-tabs obsolete.

“These are endangered species, really,” Lindeke says. “Drinking culture today is less social and more individualistic. Pull-tabs are part of this disappearing social world of the local bar, where it’s people from the neighborhood, and pull-tabs are dependent on those sorts of local connections and communities.”

Lindeke’s concerns have not yet come to fruition. E-tabs now represent over 47 percent of all pull-tabs receipts but both forms of the game are on the rise. Despite concerns that the pandemic would put 45 years of pull-tabs to an end, betting in 2022 was up 37.4 percent over 2021 and 104 percent over 2020.

“I don’t think we’re going to see a change in people’s interest in either paper or electronic gaming,” Magnusaon says. “I’ve heard from bars who will say that, even though they may not participate in the proceeds, they are very interested in having [pull-tabs] to be competitive with the bar down the street that also has them.”

Over pull-tabs’ 45-year legal history, the bar landscape has changed dramatically. Fraternal and veterans organizations struggle with membership now more than ever, as the Vietnam War generation dies off and younger people find their community online. The pandemic laid waste to the bar scene, with low-rent dives being particularly affected. In the Twin Cities, long-tenured bars like Liquor Lyle’s, Williams Uptown Pub & Peanut Bar, and the Unofficial have all closed, leaving fewer homes for physical pull-tabs counters to operate in.

Magnuson is careful to attribute a rise in gross receipts to an increase in people playing. Ticket prices have increased over the years, from the standard $1 to as high as $5, so it could be a smaller percentage of people spending more money.

But Flicker isn’t the only establishment owner who was raised to a soundtrack of pull-tabs tearing, and the next generation of Twin Cities proprietors are the first to live full lives in a legal pull-tabs system.

Murphy Johnson’s father was a beer distributor, and he and his brother Cooper spent a lot of time in local bars, breathing the atmosphere. When the family opened BlackStack Brewing in St. Paul in 2017, they resolved to incorporate those traditions. The taproom features a pull-tabs vending machine, which despite not being as classic as a booth, still gives the same ephemeral nostalgia of those old rural dives in their airy, hypebeast-y brewery.

“As a kid, it was kind of mysterious,” Johnson says. “Once I got older, it was something where, sometimes you have a few, and you play, and sometimes you get in trouble. You almost never win, but occasionally you hit big. Sometimes you win, sometimes you lose, but they’re always there.”

Murphy memorialized the comforting ubiquity of the game in Pull Tabs, a 6 percent ABV hazy pale ale that BlackStack released in 2022. The beer is an emblem of how the craft brewing industry has taken up the cause of their forebears, bringing pull-tabs to the modern Minnesota drinker.

Craft beer was once at odds with the pull-tabs ethos (one of Lindeke’s criteria for a dive bar is a dearth of microbrews). But now, as breweries rise to fill the role of third places in modern society, destinations like BlackStack, Plymouth’s Luce Line Brewing, Eagan’s Bald Man Brewing, Robbinsdale’s Wicked Wort Brewing Company, and St. Cloud’s Pantown Brewing are becoming bastions of pull-tabs preservation — and they’re doing it for the same reasons the game rose to prominence 45 years ago.

“When you do win, it’s [the] bonding that comes from it that I love,” Johnson says. “You’re in it together, up or down. It’s about the camaraderie more than the money.”

March 13, 2023

Brazil Will Promote Sports Betting while Ignoring Online Casinos

With income on the agenda, Lula promotes sports betting to boost revenue. But why Lula has chosen to ignore online casinos is a question on everyone’s mind.

Brazil is introducing a new sports betting regime under the leadership of its President, Lula da Silva. Politicians expected the move to generate significant tax revenue for the country in the coming years.

Tax Revenue will Increase

The Treasury has estimated that the sector could bring between $385M and $1.1B annually. Those funds are used to help offset an increase in income tax exemptions in Brazil resulting from recent legislation changes.

The legislation won’t include online casinos but will provide ordinances explaining how companies can legalise their operations within this new framework. To ensure that all aspects are considered, Deputy Felipe Carreras has been authorised to collect 171 signatures for an investigative commission (CPI) to analyse the bill and provide any potential issues or concerns that are carefully addressed during its drafting phase.

Match-fixing and Manipulation Issues

Moreover, particular attention will be paid to match-fixing and manipulation, as these have been essential discussion topics regarding sports betting in recent months across international forums and debates.

Ultimately, this move by Brazil’s Presidency is set to bring significant financial benefits to the country while also providing a more secure landscape for placing bets on various sporting events both domestically and internationally – something many bettors desire regardless of where they are located around the world today.

With this new regulation being implemented sooner rather than later, we could see considerable changes within Brazilian society over the next few years as more people feel comfortable engaging in sports betting activities due to these new laws being passed down by their government officials here at home.

The Bottom Line

Fixing the bottom line is high on the agenda for Brazil’s President Lula da Silva, and sports betting is one of the key strategies he has chosen to achieve this goal. The legislation will not include online casinos but will provide ordinances to ensure a safe environment for bettors in the country. Moreover, steps are being taken to avoid potential manipulation and match-fixing issues.

This move could bring significant revenues to the country while providing a more secure landscape for bettors. It will be illuminating to see the impact of this legislation on Brazilian society in the coming years.

October 14, 2022

‘Stop promoting them’: victims call for football to end tragic link with gambling

Kimberly Wadsworth was 32 when she took her own life in 2018. The passionate Leeds fan who worked in marketing was a gambling addict. Having begun on the fixed-odds betting terminals found in any high-street bookmaker she had graduated to online casinos.

There she was plied with “free” bets and gained VIP status from the companies she gambled with. They incentivised her to keep playing even when her losses were heavy. Hers is a not unfamiliar story – Public Health England estimates there are 409 gambling-related suicides each year in England – but she is a reminder that gambling addiction is not an exclusively male affliction.

On Friday and Saturday, Kimberly’s mother, Kay, will join recovering gambling addicts and other families who have lost loved ones to gambling-related suicide in walking to five Yorkshire football grounds, starting with an early appointment at Sheffield Wednesday’s Hillsborough. From there the group of more than 30 will visit Sheffield United’s Bramall Lane, Rotherham’s New York Stadium and Barnsley’s Oakwell.

On Saturday, the group take the 19 miles from Barnsley to Leeds to complete 41 miles over two days. They have been allowed by club officials to take pictures inside Elland Road. “I am proud to walk in Kimberly’s memory with people who have suffered the harm and devastation that gambling addiction brings,” said Kay. “These harmful gambling products are designed to hook people in, regardless of their background, so we are calling on football to stop promoting them to millions of young fans.”

The event is the latest organised by the Big Step, a campaign to end gambling advertising and sponsorship in football, led by people harmed by gambling. Previous events include July’s 70-person walk from Manchester to Liverpool in memory of Ryan Myers, a 27-year-old Liverpool-supporting carpenter. In February, a three-day hike took in Scottish stadiums on the route from Edinburgh to Glasgow in remembrance of Lewis Keogh, a 34-year-old Sheffield Wednesday fan.

This weekend’s walk’s aim is highlighting, in the words of James Grimes, the organiser and Big Step founder, that “this is not just a male issue. Although football was a part of Kimberly’s addiction so were other parts of gambling that you wouldn’t necessarily associate with a young, male football fan.”

Football club shirts, websites, social media, pitchside banners and in particular TV advertising continue to be awash with gambling, despite lobbying that aims to protect young eyes from being enticed. Grimes is a recovering addict whose 12-year journey from football betting as a 16-year-old Tottenham fan took in about 50 gambling companies across myriad betting products including online casinos to the point of being “basically suicidal” after a heavy losing run on a fixed-odds betting terminal.

“Spurs had a casino on the front of their shirts at that time: Mansion. That was a company I went on to use and it quickly consumed all of my life. Football was a constant in it. Whenever I saw new companies pop up on shirts or the side of the pitch, I would use those sites. It sucked everything away from me. I turned from a happy, normal boy into a hopeless, helpless wreck of a man.

“The thing I try to emphasise is that it was only gambling that did that. I had a great upbringing, there was no trauma, I never had an addiction to anything else.”

Grimes believes he fell victim to the liberalised 2005 Gambling Act that opened up the flood of betting advertising. From there, the 18-25 market, especially vulnerable, was exposed to a cornucopia of gambling products in which football bets became a gateway drug towards becoming the VIP clients companies take heavy profit from.

Could things be changing? Of the five Yorkshire clubs visited by the Big Step this weekend, only one, Leeds, has a betting shirt sponsor, the Manx-based SBOTOP. Barnsley began the season with a rapidly curtailed cryptocurrency deal, a reminder of clubs’ eternal attraction to easy money. When the Big Step campaign began in 2019, 28 of 44 Premier League and Championship clubs had betting shirt sponsors, a number now reduced to 14.

Despite heavy lobbying and growing resistance among fans, betting advertising pervades on TV, radio and the web. A government white paper on gambling reform was postponed for a fourth time in July. The presence in government of the anti-gambling advocate Chris Philp, chief secretary to the Treasury, and the influence of Iain Duncan Smith, similarly minded, in Liz Truss’s leadership campaign are yet to be brought to bear. For now, football clubs continue to act as advertising boards for an industry held responsible for the loss of Kimberly and many others.

September 28, 2022

Sisal wins Tunisia full-service gambling for Flutter

Flutter Entertainment’s new Sisal Italia unit has secured exclusive management of gaming in Tunisia, awarded by national sports betting authority, Promosport.

Sisal will develop and manage a ‘comprehensive product portfolio’ in Tunisia, including the provision of sports betting, online games, instant lotteries and number games (lottery draws).  

Promosport’s licence will cover an initial period of 10 years, and will allow management of all betting and gaming products across both retail points of sale and online channels throughout the country.

“Winning the tender in Tunisia is a significant achievement for Sisal,” remarked Marco Caccavale, Managing Director, Sisal International.

“Not only does it showcase our lottery expertise and  leadership at a local and international level, it demonstrates execution against our strategic ambition to enter into regions which have considerable growth opportunities and development prospects in the future.”

Occurring just a few months after the Italian firm’s acquisition by Flutter Entertainment, the Tunisian tender – lauded as an ‘important milestone’ – broadens the reach of the FTSE100 gambling group’s operations in Europe and North Africa. 

As well as strengthening Flutter’s standing, the development marks another step in Sisal’s ‘internationalisation strategy’, building on pre-Flutter market entries into other Mediterranean markets.

This has included a lottery licence in Morocco secured in January 2019, an online licence in Spain gained in July 2019, and another lottery management licence awarded in Turkey in August 2020. 

Flutter’s acquisition of Sisal back in August for €1.9 bn (£1.6/$2.2bn) substantially bolstered the company’s European presence, taking over the 39,000 strong Sisal Matchpoint Italian retail network and SuperEnalotto lottery business.

Additionally, the takeover further strengthened the company’s status in the aforementioned Medietteriaan markets in both Europe and North Africa, a region in which its foothold has now been further strengthened via the Tunisia tender.

In August, Flutter finalised the completion of its corporate integration of Sisal’s business units, which resulted in a further reorganisation of its group’s UK and European structure to account for the brands of Paddy Power, Betfair, Sky Bet, Tombola, PokerStars, Sisal Matchpoint and Adjarabet EE. 

June 15, 2022

New Measures by Swedish Government to Ensure a Safe Gambling Market

The Swedish government has submitted a report to Sweden’s Law Council (Lagrådet) with proposals, whose objective is to exclude illegal players from the Swedish gambling market and counteract the manipulation of results in sports or the so-called match-fixing. The new measures should be introduced in Swedish law before 1st July 2023.
 
On 17th May 2022, the Swedish government presented a proposal with a number of new measures to the Swedish parliament focusing on ensuring strong consumer protections and a gambling market that is sustainable in the long term. Sweden’s Minister of Social Security Ardalan Shekarabi has embraced the proposal and commented: “We are now taking another step to ensure a healthy and safe gaming market.”
 
Part of the included measures’ goal is to ban unlicensed gambling from the Swedish gambling market. It is suggested that the Swedish Gambling Act of 2018 should provide an option for the government to decree regulations on payment service providers’ obligation to provide information used in payment intermediation for unlicensed gambling and that the current provisions on payment blocking shall be abolished. An opportunity is also proposed for the Swedish Gambling Authority to purchase gaming services online under a hidden identity or a so-called test purchase.

This means that the sluggish mechanism to block payments will be discarded and it will be easier for the Swedish Gambling Authority to execute payment blocks. Furthermore, under the new measures, the Swedish Gambling Authority will be able to investigate payment service providers in Sweden that are not abiding by the Payment Services Act when they are processing payments in connection with gambling.
 
The other focus of the proposed measures is on preventing match-fixing. Increased opportunities are being put forward so that licensees and sports federations can process personal data in order to uncover match-fixing. It is also suggested that licensees should be obliged to provide, at the request of the Police, all necessary information when the investigation is underway into crimes in connection with gambling games.

The Swedish Gambling Authority is responsible for the supervision of all gambling and lottery activities in Sweden and ensures the safety, reliability, and lawfulness of the gambling market in the country.  The Swedish Gambling Authority reports to Sweden’s Ministry of Finance, while the Swedish government is responsible for appointing its board.

May 23, 2022

Premier League: Gambling sponsor shirt ban included in draft government white paper

Premier League clubs could face a ban on having gambling sponsors on their shirts after the proposal was included in a draft white paper, sources have told BBC Sport.

Half of the Premier League's 20 teams have betting firms on their shirts, with the government set to update gambling laws next month.

Campaigners have welcomed the idea, but believe a ban would be "incoherent" if not also applicable to teams in the English Football League and for other adverts.

The move would follow a recommendation by a House of Lords select committee in 2020, which said Premier League clubs should face a shirt sponsorship ban, but Championship clubs should be given time to phase out their partnerships.

A Department for Digital, Culture, Media and Sport (DCMS) spokesperson told BBC Sport: "We are undertaking the most comprehensive review of gambling laws in 15 years to make sure they are fit for the digital age.

"We will publish a white paper which sets out our vision for the sector in the coming weeks."

Delays to the government white paper being published mean clubs might already be negotiating contracts for next season onwards.

That could mean any ban is likely to be applied for the 2023-24 season at the earliest, but there have also been discussions about whether Premier League clubs could offer to remove gambling sponsorship from shirts voluntarily.

The Premier League has previously said that "a self-regulatory approach would provide a practical and flexible alternative to legislation or outright prohibition."

The EFL, which is sponsored by Sky Bet, says a gambling sponsorship ban would cost clubs £40m a year.

James Grimes of campaign group, The Big Step, told BBC Sport: "This is welcome, but to remove gambling from shirts while allowing pitch-side advertising, league sponsorship and club partnerships to continue would be massively incoherent.

"Every young fan should be able to watch their club - in the ground and on TV - without being bombarded by ads for gambling, which we know harms millions, and takes hundreds of lives every year.

"If the government recognises gambling can be harmful, as this step suggests, then it must end all gambling advertising and sponsorship in football at all levels, not just on shirts."

A recent YouGov survey said 1.4m people in Britain are being harmed by gambling with a further 1.5m at risk.

But the Premier League and EFL believe there is no evidence to show a causal link between gambling sponsorship and problem gambling.

The Betting and Gaming Council spokesperson says that all sponsorships "must comply with strict guidelines and safer gambling messaging is regularly and prominently displayed".

It has also said it "strongly supports the gambling review as a further opportunity to raise standards".

May 17, 2022

888 Shareholders Greenlight William Hill Acquisition

Shareholders at 888 Holdings have overwhelmingly voted in favour of the company’s intentions to acquire William Hill’s non-US portfolio. Caesar’s Entertainment, who currently own William Hill’s full suite of assets, have been anxious to offload it’s UK and European business since their colossal £2.9bn takeover of the operator back in 2020.

888 have announced that the deal should reach completion by the end of June, which should align with the timing of their permission to trade as a premium listing on the London Stock Exchange. This approval is currently pending, with the FCA (Financial Conduct Authority) expected to declare their decision imminently.

The organization’s non-executive Chairman, Lord Mendelsohn, welcomed the news, suggesting that the merger represented a major step forward for the gambling giant. He said, ‘’we look forward to completing this transformational acquisition at the end of June, creating a global online betting and gaming leader through the combination of two highly complementary businesses and two of the industry’s leading brands’’.

The Gibraltar-based operator is certainly optimistic about its future success. It’s recently undertaken a rapid expansion plan, targeting the UK as a key market in its business roadmap. Furthermore, the firm projected that if the William Hill acquisition had been secured before the commencement of 2021, last year’s gross gaming revenue figure would have eclipsed $2bn, with an EBITDA of $437m.

This has been a protracted deal, with Caesar’s initially accepting 888’s proposal a full eight months ago. Key changes were made on the detail of the deal last month in respect of new regulatory guidance; this resulted in all parties agreeing a £250m reduction in the sale price.

Should 888 Holdings get this one across the line, which is looking increasingly likely, they will assume control of all William Hill’s UK and European online and retail interests.