Victoria government told to copy primetime ban on gambling advertising

The Public Accounts and Estimates Committee (PAEC) of the Australian state of  Victoria has called for stricter regulations on gambling advertising.

The public body has recommended that its state government align with South Australia’s policy, which bans gambling adverts on TV from 4pm to 7:30pm. The recommendation forms part of the PAEC report, following an eight-month review of three Auditor-General reports, focuses on gambling and liquor regulation in Victoria.

The report, with 96 findings and 61 recommendations, was influenced by public submissions, hearings, site visits, and a youth roundtable.

“Our report’s 96 findings and 61 recommendations have been informed by 54 public submissions, three days of public hearings, a Geelong site visit and a youth roundtable,” commented Committee Chair Sarah Connolly.

The report cited a 2021 Australian Communications and Media Authority-commissioned study that found an “average of 948 gambling ads were broadcast daily on free-to-air TV and an average of 148 gambling ads were broadcast between 6.00pm–8.30pm every weeknight”.

In addition, the report stated that “between May 2022 and April 2023, more than one million gambling ads aired on free-to-air television and radio across Australia, the ‘clear majority’ being from online wagering companies”.

Connolly noted: “More appropriate regulations and safeguards are needed to protect Victorians, especially our children and young people.”

A group of young people who shared their lived experiences with gambling and alcohol during an event at Parliament House in August were also present in Parliament for the tabling of the report earlier this week.

The report has also asked the government to consider reducing the total number of electronic gaming machines across the state and updating the gambling and alcohol-related harms education resources for students.

The PAEC has also recommended that any venue that wishes to increase the number of EGMs it has must prove that it will provide a “net economic and social benefit” to the community.

It has also been recommended that the Victorian Gambling and Casino Control Commission establish a regular consultation with the local government regarding the current gambling regulations in the state and any measures that could be taken to reduce gambling harm.

The Victorian government has been asked to review daily, weekly and annual gambling loss limits as well, including examining frameworks present in Norway, Sweden, Finland and Tasmania.

Brazilian Senate Committee Approves Sports Betting Tax Bill

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.

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.

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.

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.

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.

Tonali bet on football, including Milan: He faces a one-year ban

La Gazzetta dello Sport report that Sandro Tonali has confirmed he bet on football matches, including those featuring AC Milan. The midfielder is one of three high profile names involved in the betting scandal, along with Nicolo Fagioli and Nicolo Zaniolo.

Juve’s Fagioli was handed a seven-month ban yesterday, having admitted to placing bets on illegal gambling platforms, but never having gambled on Juventus matches.

La Gazzetta write a lengthy article this morning concerning the outcome of Tonali’s meeting with the public prosecutor yesterday afternoon:

“Sandro Tonali is repentant and has already begun to make his contribution to the investigation into the betting case. He said so yesterday at the Turin Public Prosecutor’s Office, in an interrogation that lasted almost three hours, but he had also declared it last Sunday when he was heard for the first time by the Federal Prosecutor’s Office. Giuseppe Chinè (FIGC prosecutor) met him at a secret location and he told the whole truth. So the former AC Milan player self-reported to the sports justice body and certainly admitted that he had also bet on football-otherwise under what is the Code of Sports Justice there would be no violation-but he would also have confessed to making bets on AC Milan. And here the issue is different and definitely more delicate.

“Betting on one’s own team is particularly risky because it could constitute the crime of illicit sports betting. The article of the Code that regulates it, number 30, is clear and speaks of “performing, by any means, acts aimed at altering the course or result of a match or competition.” From what emerges, however, this would not be the case for Tonali. The player now at Newcastle would in fact have bet on Milan winning or at any rate on other results with him absent. In short, his bets would not have in any way affected his performance on the field, so no sports offence. At the moment, the violation charged against Tonali therefore remains within the enclosure of Article 24 of the Code of Sports Justice, the one that punishes players who bet on football (minimum penalty three years), but it is clear that having bet on Milan constitutes an aggravating circumstance.

“The midfielder would like to follow the path taken by Fagioli, with a plea bargain in a short time frame (even less than a month), but there are clearly differences. The first is that if the bets on the Rossoneri were confirmed, the initial sanction of the Prosecutor’s Office would necessarily be more than three years. Verisimilarly it could be three and a half or four, a penalty automatically halved with the predeferral plea bargain. Thus, since the boy has already shown cooperation, he could enjoy some mitigating factors like Fagioli. Hypothesizing the final sanction today is difficult, but one can think of 12 months of disqualification on the field and 6 of alternative prescriptions like the Juventus player, given that Tonali has also claimed to be suffering from ludopathy. Certainly it will be crucial that the version of the former Rossoneri player provided to Chinè coincides perfectly with what will emerge from the records of the Turin prosecutor’s office, who seized his phone and tablet Thursday at Coverciano. If something does not match, things would change, and depending on the findings, the penalty could increase even by a lot.

“The timeframe for the plea bargain-if there are no surprises-could be quite short, given as well that the Federation has already defined for Fagioli the path of alternative punishments: therapy to defeat ludopathy and a series of meetings decided by the Federation to make these guys examples in a positive way, to show especially young people that gambling can be the ruin of a career and more.”

Nicolò Fagioli banned for seven months over gambling offence

The Juventus midfielder Nicolò Fagioli has been handed a seven-month ban as part of a settlement with the Italian football federation (FIGC) after breaching rules surrounding betting on matches, the governing body said on Tuesday.

Fagioli was banned for 12 months, of which five months were suspended, and fined €12,500 (£10,843). He has also agreed to a treatment programme for gambling problems. The 22-year-old has been placed under investigation by prosecutors in Turin for allegedly betting on illegal websites.

Under FIGC rules, a player found to have bet on matches could have been banned for at least three years but Fagioli has had more lenient treatment after admitting his offence to the authorities.

As part of his punishment, he will have to speak of his experiences in at least 10 sessions with amateur sporting organisations and with groups helping gambling addicts.

Fagioli has made one appearance for Italy but is not in the squad for the current round of international games.

Sandro Tonali and Nicolò Zaniolo left the national team’s headquarters last week after they were also told they were involved in an investigation by prosecutors.

Tonali’s agent, Beppe Riso, said on Tuesday that his client had a gambling addiction and was sad and in shock at how matters had unfolded. Riso said the 23-year-old was determined to overcome the problem and thanked Newcastle for their support. He said Tonali could feature against Crystal Palace on Saturday.

Juventus' Nicolo Fagioli faces illegal betting investigation

Juventus midfielder Nicolo Fagioli is under investigation for alleged illegal betting activities, a prosecutor said on Wednesday, confirming earlier press reports.

La Stampa daily said the 22-year-old is involved in a criminal probe targeting users of illegal online betting platforms, along with other unnamed suspects.

"I confirm the news of the investigation," Turin Chief Prosecutor Enrica Gabetta said in an emailed statement, without elaborating.

The newspaper did not say what kind of betting Fagioli was involved in. Italian football authorities ban players from betting on matches but not from other types of gambling.

The prosecutor's office of the Italian football federation (FIGC) is also looking into Fagioli's case, a source close to the matter said, confirming another part of the La Stampa report.

A player found to have bet on football matches risks being disqualified for at least three years and fined at least €25,000 ($26,517.50) under the FIGC's code of conduct.

Juventus declined to comment on the affair. Attempts to reach Fagioli via social media messages were not immediately successful.

Fagioli has played in six of Juve's eight Serie A matches this season. Last November he made his debut for Italy, coming on as a substitute in a 3-1 away friendly win against Albania.

Asian-facing gambling operator 6686, the sleeve sponsor of Wolverhampton Wanderers and official betting partner of Wolfsburg, Lazio and AS Monaco, is illegally streaming live games from the Premier League, the Bundesliga, Serie A, Ligue 1 and a number of other competitions on its Chinese language website

Do you want to watch the best that European club football has to offer for free? This is easy. All it takes is to switch on a VPN (Virtual Private Network), choose Hong Kong as a location and head for 6686.com. Three clicks later, it’s all there.

On the right of the screen, a blue “play” button icon indicates which games can be watched live on the bookmaker’s website. It is almost all of them. The pictures originate from legitimate broadcasters such as Telemundo, Setanta, Arena Sport and others, but also directly, it seems, from the raw international video feeds which the Premier League, the Bundesliga and other European leagues provide to their rights-holders, and which must have been captured straight from the satellites beaming the precious video content to legal broadcasters.

This would explain the startling quality and clarity of the picture, a world away from the shaky illegal streams which many frustrated or impoverished sports fans share online. There is hardly any buffering. When there is, the 6686.com logo spins for just a few seconds before the image stabilises and offers the kind of viewing comfort which could be expected from a legitimate broadcaster such as Sky Sports, Canal + or TNT. The delay with the live action is no greater than what is usually experienced when using the online versions of those legal platforms.

The problem is that 6686.com has not acquired the streaming rights of any of the competitions it shows on its Chinese website. It has not paid any compensation to the networks who spent tens, sometimes hundreds of millions for the privilege of showing live action from the world’s top leagues to their subscribers. 6686’s video offering is 100 percent illegal. It is piracy on a mind-boggling scale, as it is not just the top five European leagues which can be watched on 6686.com, as long as the site is accessed from outside the United Kingdom.

In the course of a single afternoon, we were able to access on 6686.com live streams of games played in the Premier League, both divisions of the Bundesliga, La Liga, Serie A, Ligue 1, the Dutch Eredivisie, the Belgian Jupiler League, the Portuguese Primeira Liga, the EFL Championship, the Czech First League, the Turkish SüperLig, the Polish Ekstraklasa, the Swiss Super League, the Saudi Pro League, the Austrian Bundesliga and even the Ukrainian second division and the Indian Super League. It would be much quicker, in fact, to list the competitions which are not streamed live on the bookmaker’s website. Moreover, what goes for football goes for other sports, such as baseball, tennis or basketball. The scale of the operation beggars belief.

No registration process or password are required to access the streams. No subscription is necessary. No fee is charged to the viewers. No advertising pop-ups suddenly appear on the screen. Full-screen vision is available for all streams. Were it legitimate, this would be the go-to website for all football fans; but legitimate it is not.

Despite its official partnerships with well-known European clubs and the licence granted by the UK Gambling Commission via White Label company TGP Europe, 6686.com is one of a myriad illegal Asian gambling operators which cater almost exclusively to customers from Far Eastern countries where gambling on sports is illegal and may even lead to criminal prosecution.

Until now, the Premier League has chosen to turn a blind eye to the proliferation of partnership and sponsorship deals between its clubs and ‘questionable’ Asian-facing gambling operators. But the Premier League is also known to be much more reactive when it comes to breaches of copyright and piracy of its precious product. In May of this year, following an investigation launched by the Premier League, five British individuals were prosecuted and sentenced to a total of thirty years and seven months in jail for running three pirate streaming operations from the UK. Yet what kind of action the world’s most popular league could take in this case is unclear, as the opacity surrounding 6686.com is complete.

No-one – and this includes 6686’s partners Wolves, Wolfsburg, Lazio and Monaco, as well as the UK Gambling Commission and the Premier League itself – is aware of the identity of the operator’s ultimate beneficial owners, and the bewildering multiplicity of mirror websites it uses to trawl for punters makes it almost impossible to shut them all down.

To complicate things even further, though TGP Europe has registered the domain name 6686.co.uk with the UK Gambling Commission, it is 6686sports.co.uk which the Isle of Man-based company lists as its partner on its own website, where it is described as “the official sleeve sponsor and Asian betting partner of Wolverhampton Wanderers”. So 6686sports.co.uk is 6686.com? It is indeed.

Further proof of it is provided by using a UK internet network with no VPN and, instead of typing 6686.com, using the different URL which the Asian-facing website redirects to by default. Normally, with no VPN, an error message would appear on the screen, telling the UK visitor that the website they’re trying to reach is geo-blocked; but not this time. This visitor is automatically redirected to 6686sports.co.uk. The loop is complete.

It should be added that 6686sports.co.uk is not a going concern. The web analysis tool SimilarWeb shows that their website received a mere 2,000 visits in the month of August, fewer than most genuine gambling operators would get in a matter of minutes. It is a means to acquire legitimacy by association, thanks to the stamp of approval given by a UK government agency. The real action is elsewhere, with 6686.com, the brand which was also advertised in the stadiums of Leicester City and Nottingham Forest in England last season.

As to 6686.co.uk, the only brand name actually registered by TGP Europe with the UKGC, it does not even exist as a functioning website. Typing it in any browser leads to the domain name broker GoDaddy, where it is suggested that 6686.co.uk can be purchased via an agent who will only charge a little over 50 pounds for their work.

There is no indication that the 6686.com which pirates football streams from all over the world is a different entity from the 6686.com which paid millions to become the official partner of Wolves, Monaco, Lazio and Wolfsburg. A rogue operator is not, somehow, impersonating the real bookmaker. The truth is that a ‘grey market’ – in plain English, illegal – bookmaker which was deemed worthy of a UK licence and managed to become the “official Asian betting partner” of four famous European clubs has been and still is stealing the most valuable product which these clubs and their leagues have to offer: live footage of their matches.