October 21, 2024

1xBet, official betting sponsor of FC Barcelona, PSG, Serie A and CAF, is organising and giving odds on hundreds of thousands of games per year involving fake teams and children as young as 14

One of the world’s most controversial bookmakers takes bets on thousands of amateur sports events live-streamed to its website. The locations of the games are a secret. Bellingcat has geolocated sites in three countries where these matches are played. 

In a curtained-off gymnasium six men play football for “Arsenal” and “Real”.

There are no spectators in the unnamed complex and no referee can be seen on the sidelines.

A single camera shoots the game from one end of the pitch, a grainy recording more consistent with security footage than a sports broadcast.

With 32 seconds left on the clock, “Real” scores the winning goal.

No one celebrates.

Off-screen the young men change uniforms. Then they reappear, representing different teams, and do it all over again. The scene is replicated on the other side of the sport hall’s divider curtains. “Barcelona” beats “Man City”, “Chelsea” loses to “Tottenham”.

In the final minutes of a 4:30am match, the goalkeeper for “Amsterdam” walks into an adjacent game to retrieve his stray ball. The schedule is relentless. Players compete in back-to-back football matches that run day and night.

The games have one thing in common: they are all live-streamed to the website of 1xBet, a Cyprus-based bookmaker that is licensed in the Dutch Caribbean island of Curacao.

The locations of the games streamed to 1xBet are never disclosed by organisers, but Bellingcat has identified sports venues across Russia, Ukraine and Belarus that host these amateur tournaments. This investigation has also found that the gaming operation allowed punters to gamble on a game in which children as young as 14 were competing.
Odds on 1xBet

A controversial name in gambling, 1xBet is blacklisted in several countries but remains one of the largest online casinos in the world, with a reported turnover of billions of dollars.

In 2020 Russian authorities issued an international arrest warrant for its three founders, Dmitry Kazorin, Roman Semiokhin and Sergey Karshkov. Investigators said in 2021 that the company made more than 63 billion rubles (US$655 million) in illegal gambling activities.

1xBet is prohibited from operating in Russia, was suspended in the UK, and has faced a criminal complaint in Morocco. Its parent company, 1XCorp N.V., was declared bankrupt in the Netherlands after failing to pay out on bets, and last year was put on Ukraine’s sanctions list over its ties to Russia.

Premier League clubs Chelsea, Liverpool and Tottenham Hotspur severed their deals with the bookmaker after a 2019 investigation by The Sunday Times found that it had accepted bets on cockfighting and promoted a “pornhub” casino.

But despite its numerous controversies, 1xBet has maintained partnerships with other professional clubs. It remains a sponsor of Paris Saint-Germain FC and earlier this year renewed its deal with FC Barcelona, making it the club’s official betting partner until 2029.

We asked both teams about their partnerships with 1xBet. FC Barcelona declined to comment. Paris Saint-Germain FC did not respond to questions.

Far away from the splendour of Camp Nou and Parc des Princes, visitors to 1xBet’s website can punt on a continuous stream of non-professional football matches. One of the most prominent sports on offer is “short football”. Similar to futsal, it involves two, three, four and five-a-side amateur teams playing 10 or 12 minute games on small pitches.

Critics have described amateur bookmaker leagues as a scourge on sport. Viktor Kravchenko, a Russian football blogger, said in a 2021 Instagram post that young footballers were recruited to play in shifts and claimed games were fixed.

Josimar has published an account from a young man who said he was paid in cash to work from 9am to 2pm playing football that was live-streamed to 1xBet.

A Bellingcat analysis of 1xBet’s website found that 1,297 games of short football were live-streamed during a 24 hour period in September. By comparison the Bundesliga, Premier League and La Liga play a combined 1,066 league games per season. Should these figures be indicative of 1xBet’s daily output, the number of amateur football matches broadcast to the gambling site each year would be almost half a million.  

And the model has been replicated on an industrial scale. 1xBet streams videos from various locations hosting other non-professional tournaments ranging from basketball, volleyball and floorball to ice hockey, tennis, table tennis. Games are played in marquee warehouses and converted arenas that look like sets from the television series Squid Game.

A bench soccer match filmed from overhead shows rivals kicking a ball around small mesh cages. In these clips below, the player with the tattoo on his left forearm and wearing grey shoes represents multiple teams, often in back-to-back games.

Subsoccer, a Finnish company that produces bench football products, said it did not make or supply the equipment in the 1xBet streams and that the use of its trademark and logo in this context was a violation. “The content you sent is not related to us in any way,” a Subsoccer spokesperson said. “We have not granted any rights to them regarding our products, trademarks, or other brand elements. The games shown in the images are illegal copies of our patented product and infringe on the patent granted to us.”

The online bookmaker takes bets on all these events – as well as eSports, casino, world politics and the weather – 24 hours a day. The estimated number of visits to 1xBet averages more than five million a month, according to SimilarWeb, a data firm that tracks web traffic. But 1xBet’s global footprint is far larger. Its mirror websites that are accessible in other jurisdictions record millions more visits.

The videos streamed to 1xBet are facilitated by third party companies. On its website, one Cyprus-registered firm boasts that it provides 15,000 live amateur events a month – which it credits to increasing engagement with “compulsive bettors”. Another company says it offers live-streams from “anywhere in the world”, including the “school playground”. A third firm assures its bookmaker clients of the security measures it takes, saying players are “regularly” polygraph tested to ensure games are not fixed.

Bellingcat requested an interview with 1xBet but did not receive a response. Multiple calls and questions sent by email were not returned. We also asked the bookmaker why the profile picture for its spokesman, “Alex Sommers”, was that of a CNN journalist, but did not receive a reply (CNN provided the original headshot to Bellingcat and said neither the company nor its reporter had been aware that the photograph was being used in this way).

Bellingcat examined hundreds of videos broadcast to 1xBet. We looked for visual clues to help identify players, leagues and venues. The matches typically feature obscure or unknown teams, which are sometimes named after prestigious clubs or national squads. Some leagues in which these teams play have their own websites containing player profiles, whose names were cross-checked on social media to help narrow down the search to specific countries. To pinpoint the facilities, we looked for distinctive architectural features, banners and signs in the sports arenas. We used reverse image searches and user-generated content to verify the locations.

Cutaways in videos of multiple short football games provide a clear view of signs and logos that made it possible to trace this venue to a children’s football school in the Russian city of Bryansk.

In promotional videos played before the football games start, a Russian language advertisement for Ikea delivery is visible from two different angles, hinting at the venue’s potential location.

Using a still from one of these promo videos, a reverse image search on Yandex returned a number of results, including a webpage reporting the outcome of a children’s football match. The webpage, on a site belonging to the Alexander Stepin Football School in Bryansk, included four photographs of young children in a sports arena. Key features in the images (the roller door, windows, scoreboard, pitch markings and branding) confirm that the location is the same.

According to its website, the school is partnered with President Vladimir Putin’s ruling party United Russia and the country’s widely sanctioned energy supplier, Gazprom. 1xBet is the subject of a blanket ban in Russia following a criminal investigation into its three founders.

In some of the photos featured on the Alexander Stepin Football School’s VK profile, children are shown perusing militaria and posing with rifles in the same arena the 1xBet games are streamed from.

Sometimes the worlds of junior football and online gambling collide, as seen during this impromptu pitch invasion by a young child. This footage was captured during a live-stream to 1xBet’s website, minutes after a football game finished on a Wednesday afternoon in September.

The children’s football school also hosts outdoor games streamed to 1xBet, which take place on two adjacent fenced-off pitches to the west of the venue. We identified the first pitch, seen below, by translating the large sign on the red wall and comparing the image to posts on the football school’s VK profile.

Almost 1,700 km from Bryansk, families sit on the sidelines of a floorball game on Russia’s northwest coast, watching as Typhoon faces off against SPB United in the women’s league. A banner at the event and the logo in the corner of the video confirm the match is taking place under the auspices of the National Floorball Federation of Russia. A commentator calls the game, which is also being live-streamed to 1xBet.

We confirmed that this game took place at the Physical Culture and Recreation Complex Zvezdochka in Severodvinsk through a local news report about the venue’s opening, an accompanying video and social media posts.  

The National Floorball Federation of Russia’s website displays player profiles, which show that the average age of girls on one of the teams was just under 16. A cross-check of the names and jersey numbers visible in the live-stream revealed that girls aged 14 and 15 were competing in this game. It is unclear whether the children or their parents were aware the match was being broadcast to a gambling website.

In 2018, Cristiano Ronaldo led Portugal in the World Cup against Iran in the purpose-built Mordovia Arena, a 40,000 seat stadium in the Russian city of Saransk. Russia was banned from participating in the competition in 2022 after its invasion of Ukraine, but football is still played regularly at the nearby Mordovia Sports Complex.

Here, teams with names such as “Audit” and “Policy” compete in the Student League, five-a-side football matches live-streamed to 1xBet. While the league has a website, there is no information about the venue where the games are held. Bellingcat located this venue by searching through Yandex images of sports complexes in Saransk.

Photographs posted to the Mordovia Sports Complex VK profile confirm the location of the venue, which is also used for weapons training workshops and tactical medicine classes.

The multipurpose complex also hosts the IPBL Space Division, a basketball league similarly played in empty arenas and broadcast live to 1xBet.

Basketball is also streamed from an unexpected location: Ukraine. 1xBet was banned from operating in Ukraine after Russia’s full-scale invasion in 2022. The Svoi Arena is located in Kyiv, a kilometre from where a kindergarten caught fire after being struck by a Russian Shahed drone attack in November 2023. Despite the ongoing war, basketball in Ukraine was streamed to gamblers on the Russian-founded betting site as recently as last month.

The Svoi Arena said it was “not aware of cooperation with 1xBet” and did not respond to further questions.

1xBet’s gaming operation is blocked in Belarus but the site continues to live-stream games from the former Soviet nation. In Minsk, the Daily Aqua Tour pits tennis players against each other under the canopy of the Avante Club. Images posted to social media show the same venue that appears in the 1xBet streams.

In the Belarusian city of Mogilev, 80 km from the Russian border, basketballers playing in the Belarus Sky League take to the court. The expansive arena at the Mogilev Regional Olympic Reserve Centre can hold up to 1,500 spectators, but no one was in the stands when the “Cheetahs” took on the “Piranhas” last month.

This arena hosts a catalogue of sporting events but its website makes no mention of the Belarus Sky League. We confirmed its location through reverse image searches and social media posts.

Yield Sec, a firm that monitors online gambling and streaming marketplaces, said 1xBet’s “love affair” with live-streaming increased during the pandemic, when major sporting events were cancelled. But chief executive Ismail Vali said the company’s analytics show the volume of betting and revenue generated from 1xBet’s amateur sports streams is minimal.

The objective, Vali said, was to “engage, motivate, and migrate” audiences using “any content available, particularly content that can grab attention and engagement from social and chat posts”. Once on the platform, he said the aim is to cross-sell punters to higher-value gambling products, such as big-ticket live sport events, slots and casino games.

“There’s not much traffic on those pages in terms of people who stay there and transact in volume – nobody’s on Ukrainian children’s basketball for 35 minutes and placing high value bets with any frequency,” Vali said.

“The big play here is always to get the customers to casino because the profit margin there is far higher. The average customer on sports betting will produce a single digit profit margin: sports – legal and illegal – runs to around a 9 to 10 per cent profit margin. Casino, however, can run far higher – as much as a 50 per cent profit margin depending on product and gameplay.”

Vali said 1xBet uses “mirrors and redirects” to facilitate the availability of its online gambling platforms in countries where its main URL or app has been blocked or is unlicensed, and drives much of its traffic from illegal streaming. Pirated movies, television shows and live sporting events have become a “massive recruitment route” for the bookmaker, he said.

“We look at illegal streaming every day for different companies and we find that 1xBet is the leading advertiser upon illegally sponsored streamed content – content that is effectively stolen from the rights owners and offered ‘for free’ to the audience. Tyson Fury fights, for example, the latest Hollywood movies, or TV shows like Bridgerton, they’ll often have the 1xBet logo and URL embedded in them throughout the stream.”

1xBet is the largest of dozens of what Vali described as “international legacy illegal gambling operators”. He said: “1xBet is the most penetrated brand, the most available brand, the most talked about brand on the internet in gambling. Their scale is in the tens of billions in terms of revenues.”

He added that these gambling operators had become “masters at manipulating audience behaviour” and that their strategies revolved around profitability, with no regard for consumer safety, regulation or taxation. “When crime makes money it doesn’t invest it in 401(k)’s or pensions, it doesn’t invest it in the community,” he said. “Crime just invests in more crime.”

A Yield Sec report published earlier this month recorded an unprecedented trend whereby “illegal operators” voluntarily restricted their gambling operations in various jurisdictions immediately after the UEFA European Championships and the Copa America. The company said there was only one reason to explain this: the first round of licence applications to legally operate online gaming and betting in Brazil closed a month later.

The report said these operators – in the hope of presenting “the best possible licence application face to the Brazilian authorities” – were denying themselves illegal revenue from multiple marketplaces, mostly in Europe.

“Their departure, whether temporary or permanent … will achieve one immediate outcome in Europe: the rise of dozens, if not hundreds, of new, upstart illegal operators entering and looking to fill the vacuum that has clearly been created by the departure of leading illegal operators. Brazil’s benefit could become Europe’s headache – for now, there is clearly blood in the water across Europe’s online gambling marketplaces.”

October 18, 2024

Lucas Paqueta issues statement on gambling probe amid 'misleading' leaks

Lucas Paqueta has slammed "entirely false" claims surrounding his ongoing alleged betting breaches probe.

Reports recently claimed that the West Ham star had been summoned to a hearing later this month relating to the allegations. It has also been claimed that he could be facing a lifetime ban should he be found guilty.

And Paqueta has now shared a furious statement on social media responding. He wrote: "I am frustrated and upset to have read recent misleading and inaccurate press articles, published in both England and Brazil, claiming to disclose information about my case. Some of that information is entirely false and appears designed to undermine my position. I am also concerned that, although they are false and misteading, these articles are clearly sourced from an individual close to the case.

"The FA proceedings are supposed to be confidential, and they are extremely serious for me and my family. The continued leaking and publication of inaccurate information in the press is now putting at risk my chance of receiving fair hearing, I have, therefore, instructed my lawyers to write to The FA to request that they conduct a thorough investigation into how information about the case, even if inaccurate, is finding its way into the public domain. I continue to deny the charges against me and look forward to demonstrating my innocence.“

Paqueta was originally charged by The FA in May for alleged betting breaches. He is accused of intentionally receiving a yellow card in four Premier League matches - something that he denies.

An investigation was originally opened in the summer of 2023. West Ham boss Julen Lopetegui has been keen to focus more on Paqueta's performances as opposed to the alleged breaches.

“He’s trying to work very hard, trying to understand what we want from him," the Spaniard said. "We’re trying to help him to be better and better. He’s an important player.

"He’s managed this in a good way," Lopetegui added. "We try to help him but we don’t talk about this. We talk about football, the next match, about life but not about this.”

Paqueta has also been charged with two counts of failing to comply with the FA investigation. The bookings under the microscope came against Leicester, Aston Villa, Leeds and Bournemouth during the 2022/23 season.

Paqueta, 27, joined West Ham from Lyon in 2022. He has gone on to make 93 appearances for the Hammers, scoring 15 times. He helped the club win the Europa Conference League during his debut campaign.

October 09, 2024

Brazil Whitelists Three More Operators Ahead of Its Regulated Market Launch

The Brazilian government has added Stake, Hiper Bet, and LBBR to its official whitelist of betting operators that have received approval to operate within the transition period from 1 October to 31 December before the nation launches its regulated betting sector. These additions bring the total number of authorized operators to 96, which manage 213 live brands.

Approved Operators Can Get a Crucial Headstart

Stake and Hiper Bet received approval for one domain each, while LBBR filed its luck.bet, 1pra1.bet, and startbet.io brands. The Brazilian government’s Secretariat of Prizes and Betting (SPA) clarified that the three companies resolved several issues related to the authorization process, leading to their additions to the list of approved companies.

Stake, one of the most notable new entries, commented on this matter, highlighting its commitment to the Brazilian market. The company has invested significant efforts in the region with plans to open an office in São Paulo. Stake’s experience in other LatAm markets should help it secure a market share despite stiff regional competition.

Operators wishing to operate within the Brazilian market had to present their applications by 11:59 pm on 30 September. Companies that failed to complete this step cannot offer services during the transition period. Brazil’s regulated gambling market, which will allow new operators to launch their services, is set to open on 1 January 2025.

Several Regulatory Issues Remain Unresolved

Meanwhile, the parent company of Esportes da Sorte, Esportes Gaming Brazil, was added to the SPA state-approved operator list after it acquired Loterj-licensed platform ST Soft. Despite this positive development, Esportes da Sorte has remained off the federal whitelist. Loterj claims its licensees can operate nationwide, but a recent court case challenged this stance.

The Federal Regional Court recently ruled that Loterj does not have the legal right to license operations beyond the territorial borders of Rio de Janeiro. This dispute stems from worries that allowing Loterj brands to operate nationwide without a proper federal license could lead to double standards and a lack of regulatory oversight.

As the market approaches its January 2025 launch, these developments highlight the growing complexities of Brazil’s gambling sector. State and federal authorities have a few months to resolve their contested issues and ensure the nation’s regulated gambling market launches without significant disruptions, giving consumers adequate protections regardless of which operator they engage with.

October 03, 2024

The ultimate gambler? How Denise Coates became Britain’s richest woman

Any motorist or dog-walker traversing the narrow lanes around Denise Coates’ home in Cheshire would most likely stray within range of one of the many CCTV cameras that jut out from the surrounding foliage. These towering hedgerows, interrupted by sturdy security fences, hide not a military base or a top secret research facility but a family home, albeit one of immense proportions.

The 21-hectare (52-acre) estate is large enough to accommodate landing space for the helicopters that neighbours have seen ferrying people in and out. Inside the gates, there is a lake, boathouse, tennis courts, horse stables and a treehouse with a zip wire, according to local planning applications and architectural plans.

The owner of this complex is Britain’s richest woman and the multi-billionaire mastermind behind the Bet365 online gambling empire. Coates’ renown is such that one expert says people in the gambling industry rarely even refer to Bet365, but simply “Denise”. “It’s an indicator of her almost mythical status,” says Alun Bowden, a gambling consultant at Eilers & Krejcik Gaming, which provides research for the industry. “Nobody tries to copy her, because there is no point. You can’t. She’s unique.”

Coates’ status has not deterred unkind comments from some neighbours. One says her home looks like a Tesco Extra superstore. No, says another, it’s “more like an Aldi depot”.

All in all, the house and grounds in which Coates, her husband and their five children live are estimated to have cost close to £90m. Building began in 2019 and did not stop until this year. The project was overseen by the practice of renowned architect Norman Foster, the man behind London’s Gherkin, Wembley Stadium and Berlin’s Reichstag. It hasn’t won Coates too many friends in the area. Months of road closures have infuriated drivers and horse-riding enthusiasts. One local, who described the work as a “pain in the arse”, says: “At least she retarmacked the road – but she could have brought round a bottle of wine.”

Still, there were millions on the table for neighbours who were willing to sell up. Coates spent more than £8.5m buying surrounding land so she couldn’t be overlooked – and many local farmers took the money. However, Coates is shrewd. One neighbour says they ended up in a stalemate with her after refusing a bid for their land. “She’s a clever woman,” they said. “She’ll offer more than it’s worth but not 10 times more.”

However, other than those directly affected by Coates’ building work, there aren’t many people in and around Stoke-on-Trent with a bad word to say about her. Stoke is an agglomeration of six towns that once sat at the heart of the global pottery industry, home to Wedgwood, Portmeirion and Spode. Ceramics delivered prosperity to the region in the 18th century, while coal and steel brought more growth as the Industrial Revolution progressed. But the slow decline of British industry saw the boom times vanish and Stoke declined with it. The emergence of Bet365 has been one of the city’s rare recent success stories.

Bet365 “directly and indirectly” supports about 12,000 jobs in the city, says Mark Gregory, a former chief economist at global accounting giant EY, who was born and raised in Stoke. His estimate includes jobs at Stoke City football club, which is owned by Coates’ brother John. That’s about “10% of employment”, he says. “And because it’s a higher-wage company, even more than that in terms of value.”

“They’re a huge generator of wealth locally,” says Jeff Nash, who owns the local office and hospitality complex Potbank, on the site of the former Spode pottery factory. “If you’re a graduate, you can look at Bet365 and want to stay in Stoke. That’s the future.”

Andy Jackson, who runs creative agency i-Creation from an office in Potbank, praises the work Coates has put in to improve maths skills in the city, including funding for a scheme to attract maths teachers in partnership with the council. “She was really clear about 10 years ago that for Bet365 to have a talent pool to work for them, numeracy was important. They put their money where their mouth was.”

But perhaps the most reputation-enhancing investment the Coates family made was when they bought Stoke City FC for £1.7m in 2006. It has always been very much a family affair: Peter was joint chairman with Denise’s brother John, until a restructuring that saw John take full control of the club this year. Denise’s husband, Richard, is responsible for the stadium and training ground. The family’s smart stewardship and financial muscle helped elevate Stoke up a division to the Premier League in 2008, where they stayed for a decade before relegation in 2018. The Coates family does not just bankroll the team – it even pays for free travel for fans who want to attend away games.

Few of those fans will have followed Stoke for longer than 81-year-old Nigel Johnson, a former schoolteacher turned football commentator who covered Stoke for the BBC over more than five decades until his retirement last year. Johnson says he is grateful for the “fantastic amount of money” that the Coates family has pumped into the club he loves.

Denise Coates was born and bred in the Stoke area, and the seat of her family power remains here, in the shape of a sparkling, 2,400-seat headquarters proudly displaying the Bet365 name to passing traffic, as it rises from the centre of a sprawling complex that also includes a training centre.

Coates was 33 when she began building her online betting empire in 2000 from a portable building in a car park in the city. Within a few years she transformed the British gambling landscape, recognising that the future lay not in high street bookies but online – allowing users around the world to place bets at any hour of day or night, every day of the year. Perhaps her biggest coup was Bet365’s development and perfection of in-play betting, a product that invites punters to wager in real time on minute-by-minute action, such as who will win the next corner in a football match, or the next point in a game of tennis. It is now the most ubiquitous form of online gambling.

It has certainly made Coates rich. Together with her family, the 57-year-old is estimated to be worth £7.5bn, according to the latest Sunday Times Rich List. She is almost as famous for her record-breaking pay packets as her entrepreneurial talent. In 2021, she took home £469m. This year, it was £271m. In total, she has extracted about £2.5bn in pay and dividends from the company.

Denise was, from a young age, very good with numbers. David Owen, who taught Coates maths in the 1980s at Sandbach High School, told the BBC that she was a “top-of-the-range” student. “If we were talking Mensa, she’d be in the top 1% … She was going somewhere.”

Her father, Peter, the son of a miner, was a moderately successful local businessman who made his money in the catering industry, serving up burgers and pies to hungry fans at football stadiums (Coates’ mother, Deirdre, is a director of the family catering business now). Peter also owned a string of betting shops – Provincial Racing – where Coates worked during her holidays. It was here that she honed her business acumen, working as a cashier and gaining an intuitive understanding of how bets were priced and what kept punters coming back.

She graduated from the University of Sheffield with a first-class econometrics degree and returned to Stoke, where she sought to move her dad’s gambling business online. She bought the domain name Bet365.com from eBay for $25,000, borrowed £15m against the Coates family’s bricks-and-mortar stores, and invested it all in sports betting technology.

By 2005, Bet365 had sold off its high street shops – for £40m – to focus entirely on its web offering, which would expand beyond sports betting to casino games such as roulette and digital slot machines. The timing could not have been better. First, Labour introduced a broadly permissive overhaul of Britain’s gambling laws in 2005, triggering a surge in marketing and advertising that dragged betting out of the realm of smoke-filled bookmakers and firmly into the mainstream. The arrival of the smartphone – the iPhone hit the market in 2007 – would soon put a casino in every pocket.

Before long, Bet365.com was bringing in punters in their droves, leaving established but slower-moving rivals such as Ladbrokes and William Hill struggling to catch up. In the 2006-07 financial year, the last before Labour’s reform of gambling laws took effect, Bet365 booked revenues of £91m. By 2012, the year Coates was awarded a CBE for services to the community and business, they had reached £648m. Last year, it soared past the £3bn mark. Savvy marketing helped it along its way, especially the ubiquitous slots during football broadcasts, featuring the actor Ray Winstone, who began urging fans to “Bet in play, now” in 2009.

The company no longer discloses how many wagers are placed on its products, but the last time it did, in 2018-19, £64bn worth of bets were made worldwide in just one year. The Gambling Commission estimated the total volume of all online wagers placed in Britain that year at £118bn.

Head just one mile north of the Bet365 headquarters on the A53 and you will come to the West Midlands Gambling Harms Clinic. Here, wedged into a few low-ceilinged rooms of a community health centre, experts sift through the human wreckage left behind by companies such as Bet365. There may be more than a million people with a gambling problem in Britain, including 55,000 children, according to estimates. Punters’ losses, worth £11bn a year to the gambling industry, are disproportionately skewed towards more economically deprived areas, such as Stoke.

The clinic in Stoke opened in October 2022, part of a nationwide rollout of new NHS clinics for people suffering from addiction and other gambling-related harm. Demand for their services has risen dramatically in recent years. During the Covid-19 pandemic, the NHS warned that it was being left to “pick up the pieces” of the gambling industry. Experts have been particularly vocal about the boom of online gambling, in particular in-play betting and products such as digital slot machines, which are designed to deploy an arsenal of psychological tricks to boost profits.

“These features have been called ‘addiction by design’,” says Prof Heather Wardle of the University of Glasgow, one of the UK’s leading experts on gambling-related harm. “The features which make these games so immersive are the same features which make them harmful.” According to Citizens Advice, some 18% – or 3.3 million – of online gamblers in Britain are in debt, owing £10,000 on average. In 2021, Public Health England estimated that there are 400 gambling-related suicides each year in England alone: more than one every day.

I meet Mark on a Zoom call at the Stoke gambling harms clinic, where he is a client. He is in his late 30s, and came into some money after he and his ex-wife divorced and sold their home. He had always gambled in bookmakers but during the pandemic, when shops were shut, he started gambling online, something he’d never done before. He soon found that the online experience was far more intense. “It’s the casino in your pocket that never goes away. You can do it on the toilet, at work, on your lunch break, at home while watching TV, in bed when you wake up. So Covid didn’t help because I needed the escape.”

For a gambling problem to start to become an addiction, “you need time, you need money and you need opportunity,” he says. “Now I had all three, it was a recipe for disaster.” The exact amount Mark lost over the course of 18 months, is irrelevant, he says. “It was tens of thousands, but if I’d had a million I’d have gambled that. I would lose a month’s salary in a few minutes.”

At the time, he and his new partner were each saving for a deposit on a house together. Mark lost the lot. Telling her that the money was gone was “the hardest thing I’ve ever done, including watching my dad die. Her initial reaction was shock because she didn’t understand. Not one single other person knew … Gambling wants you on your own. It was the dirty little secret.”

Clinics such as the West Midlands one where Mark is being treated have a colossal task on their hands to mop up the industry’s collateral damage. The annual budget for all 15 new NHS clinics is just £6.75m. Or, to put it another way, less than a day’s worth of revenue at Bet365.

Sammy, also in his late 30s, is another client here, and a former customer of Bet365, among other operators. Sammy grew up surrounded by gambling, whether it was horse racing, 2p pushers at the funfair or fruit machines in the pub. But it was online casino games that tipped him over the edge. “I opened accounts in my mum’s name, my dad’s, my brother’s. I had credit cards with different limits,” he says. “When you’re a gambler, you’ll find a way.”

Sammy’s particular favourite was online games of blackjack – he loved the thrill of winning or losing within a matter of seconds. “ I remember the excitement of having £5,000 at the tip of my fingers. I used to kid myself that I could turn it into £50,000.”

Like many gamblers, Sammy tried to quit. But gambling companies know what works to retain customers. One of the most controversial tactics online businesses offer is “free” spins and bonuses. “They’d do everything and anything they can to keep you gambling. And you think it’s fine because you’re not using your own money, but then you do start using your own money.

“I joined about 20 to 25 companies because they’d match your deposit. My thought process was that if I join 10 companies and deposit £50 into each, I’ve doubled my money straight away. And that’s how they entice you in.”

One month, Sammy used his month’s salary to build up winnings of about £2,000. Inevitably, he lost it. “I used both mine and my wife’s wages to get it back. And then I lost that. I remember thinking: I’ve got no funds, I’m going to have to tell my wife. There was nothing left for the month … I’d have to take out another loan.” It was a Sunday night and his wife was giving their two young children a bath. “My heart was pounding out of my chest. I thought: ‘It’s now or never.’ I couldn’t find another way out. I just said: ‘I’ve got a gambling addiction.’”

Sammy is benefiting from treatment at the West Midlands clinic but still finds it hard to escape the relentless bombardment of gambling adverts. A massive Liverpool FC fan, he is surrounded by club memorabilia when we speak online. He believes he sees more gambling advertising because of his online activities. “I see it on Twitter all the time – famous footballers doing ads for bookmakers. You think you can get away from it, but it’s everywhere. Join now and get a bonus boost, or whatever.”

The gambling industry, and Bet365 in particular, has targeted football relentlessly. Gambling adverts saturate TV, radio and podcasts and scroll relentlessly across pitchside hoardings in stadiums. Most clubs now have an official betting partner and some have even taken a cut of fans’ losses under commercial arrangements with sponsors. The demographic, young and male, also happens to be the cohort most likely to suffer from a gambling addiction – not just the fans but the players, too.

Some players have no choice but to wear betting companies’ logos on the front of their shirts, despite several high-profile cases of star footballers – from Michael Owen to Wayne Rooney – speaking publicly about their struggles with gambling addiction. Nowhere is the symbiotic relationship more evident than at Stoke City FC, which is owned by the Bet365 group and plays at the Bet365 stadium, where the players run out with Bet365 emblazoned across their chests.

Bet365 may be hard to escape in Britain, particularly for football fans, but Denise Coates keeps a much lower profile. The last time Britain’s most successful businesswoman gave an interview was to the Guardian, 12 years ago. She does not often make public appearances or speak at business conferences. Bet365 is a private business, so there are no annual shareholder meetings. The rare times she is seen are in publicity images announcing donations made by her charity, the Denise Coates Foundation. And so this vacuum of information has been filled by myth-making.

One oft-repeated line features an Aston Martin DB9 sports car, with a personalised number plate, that is sometimes spotted in the Bet365 car park. The car appears in almost every written profile of Coates, a totem for a billionaire’s apparent flamboyance. However, according to one person close to Coates, who has asked not to be named, the story is “completely untrue”. The car does exist, but it is not hers – it’s a close family member’s. “She likes being anonymous,” says the source. “The idea she’d have an Aston Martin with DC365 on the numberplate, driving around Stoke, is so far opposite of what she’s like. She’s a very low-profile sort of person.”

In many ways, Coates is a woman of multiple contradictions. On the one hand, she is a poster child for corporate excess, with her staggering pay packets. On the other, she is one of Britain’s biggest taxpayers – choosing to put most of her vast income through Bet365’s payroll rather than hiding it away from tax authorities like many other billionaires.

To some, she has built her vast fortune creating and marketing blatantly addictive gambling products, shattering the lives of punters and their families. And yet she puts a considerable amount of her company’s profit into charities and her local community, funding school numeracy programmes and generating high-paying jobs in a city that lacks alternative sources of wealth and skills.

She is known as a formidable entrepreneur who, in a male-dominated industry, can easily “hold a room of grown men”, according to one source. And yet those who have worked for her for decades say she is a considerate manager to her employees, and “genuinely cares about them and supports them”.

Her politics, too, might surprise some observers. Coates is not the type to pontificate on politics, according to one person who knows her. However, records show her father and companies within the Bet365 group have given a combined £480,000 to Labour over the years, starting with £50,000 in 2004, the year before Labour finalised the details of the Gambling Act. More recently, Peter Coates gave £25,000 to Starmer’s leadership campaign.

In the months leading up to the UK’s Brexit referendum in 2016, Bet365 gave £512,500 to the campaign for Britain to remain in the EU. Neither the Coates family nor the company has spoken publicly about this donation.

Bet365 has made friends in the Conservative party, too. In 2022, the then Stoke-on-Trent North MP, Jonathan Gullis, was forced to apologise to the chair of a Westminster Hall debate on gambling harms after admitting not only that he was reading directly from a Bet365 briefing paper in parliament, but also that he had failed to declare £540 worth of tickets he had received from the company that year to see Stoke City play Fulham in the Championship, a competition sponsored by another betting company, SkyBet.

Aaron Bell, formerly the Conservative MP for Newcastle-under-Lyme, had an even closer relationship with the company. He worked for Bet365 from 2006 until he won a parliamentary seat in 2019 – and called for caution over proposed reform of the gambling industry in parliament, until he stood down in 2024.

During the same Westminster Hall debate on gambling-related harm, Bell insisted that he was “not a spokesperson for the gambling industry” but went on to list Bet365’s virtues, including its record of going “above and beyond” on safer gambling measures, its roots in the Stoke community and Coates’ tax contribution.

The family’s tax bill is something of a source of pride – and potential political leverage. The company’s submission to a select committee inquiry in 2023 read: “Our founders are the second highest taxpayers in the UK.” Not everyone is impressed by this. As Scottish National party MP Ronnie Cowan put it in the Westminster Hall debate: “If I earned a billion pounds, I would make sure I paid my tax as well.”

While Coates and her family had dropped to third place on the most recent Sunday Times tax list, they are still estimated to have paid £376m to the exchequer last year. A sizeable chunk of that contribution comes from Coates’ enormous pay packets, which she puts through Bet365’s payroll, meaning she gets taxed at the 45% additional rate of income tax.

“That is very different from many of Britain’s billionaires,” says Luke Hildyard, director of the High Pay Centre. “That said, that level of wealth remains unsettling. It’s far beyond what any reasonable person might consider a fair or proportionate reward or incentive for business success.”

Liz Ritchie and her husband, Charles, set up the charity Gambling With Lives in 2018 after they lost their son Jack to suicide when he became addicted to gambling, first in bookies and later online. The charity seeks to help other people bereaved through gambling addiction and is a key campaigner pushing for reform to online gambling.

“Addiction underpins the industry’s business model,” says Ritchie. “The most addictive products, such as online slots, are aggressively marketed, and income from these has grown by 8.5% over the past year. Meanwhile, gambling suicides continue every day. How have we ended up in a situation where gambling companies thrive by putting the public in such danger?”

Despite being in recovery from gambling addiction, Sammy says he still gets “loads of text messages from gambling companies. I have to delete and report them. It feels like your phone is being tracked or monitored.”

Indeed, many gambling firms have fallen foul of the Gambling Commission regulator over their apparent failure to use the wealth of information they hold about people like Sammy to prevent harm. In 2022, SkyBet was fined £1.2m for sending promotional messages to gamblers who had signed up for a voluntary self-exclusion scheme to block themselves from betting sites.

Bet365 has felt the wrath of the regulator less often than many of its rivals, but it is not blameless. In April, it agreed to pay £582,120 for failures in its anti-money laundering and social responsibility checks – which included a failure to deploy its technological prowess to stage “meaningful” interactions with customers who might be suffering harm.

“You’re supposed to be a loyal customer,” says Sammy. But gambling firms “don’t give a toss about you. They just want you to keep playing.”

Coates has established a reputation as a very generous woman. The Denise Coates Foundation was set up in August 2012. According to the charity’s regulatory filings, she has put about £752m into it. Recipients of the foundation’s cash include Stoke’s Douglas Macmillan hospice (known locally as the Dougie Mac), numerous medical research and treatment projects, disaster relief funds and university bursaries for people from economically disadvantaged backgrounds.

There are artistic endeavours, too. The New Vic theatre in Newcastle-under-Lyme, just outside Stoke, is a regular beneficiary, while Coates also funded Tate Britain’s purchase of four watercolours by the women’s rights campaigner Sylvia Pankhurst, marking the centenary of women’s suffrage in 1918. London’s Courtauld Gallery features a space that bears Denise Coates’ name.

Charities addressing gambling-related harm are not listed among the beneficiaries of the foundation’s largesse, however, although Bet365 does fund such services through other means, including a voluntary industry levy.

Some recipients of the foundation’s charity are close to home. At least £700,000 has gone to the Hassall Green Nature Reserve in Cheshire. Keele University and the Sandbach Gymnastics Foundation both boast a Denise Coates Foundation Building, the name of their benefactor writ large on the external walls. Coates may abhor the spotlight but where her philanthropy is concerned, she is less shy about leaving her mark.

Coates’ foundation has donated several times to the Catholic Agency for Overseas Development (Cafod), the official aid agency of the Catholic church. One person who has spent time with Coates says they have never seen her display any outward sign of religious sentiment, but her grandfather Leonard, a veteran of the first world war, was a Catholic. The Catholic Herald lists Peter and Denise Coates among the faith’s “leaders of the day”.

The Denise Coates Foundation has actually donated a relatively small proportion of its reserves – about £78m – since 2013, while amassing an endowment fund of £730m through cash injections from companies in the Bet365 group. In its accounts, the charity puts this down to a policy of ensuring that it earns enough through investments to make sure the charity is self-sustaining and not “dependent on donations from any one source”. That point of self-sufficiency might have been reached sooner, were it not for the fund losing £26.8m in the last financial year as a result of the poor performance of its investments.

The foundation’s strategy is unlikely to be called into question, though. Every one of its trustees is a member of the Coates family, or one of their employees.

The charity may come with more benefits to Coates than the warm glow of altruism. Her philanthropy may have helped save the Bet365 group £140m in tax, far more than the foundation has yet donated to good causes.

Where next for Coates? The Bet365 juggernaut certainly shows no signs of slowing down. From that portable cabin in a car park, Coates has pieced together an empire that stretches from Stanley Matthews Way in Stoke to Sydney, with offices in Frankfurt, Bogotá and Sofia. Now, she has her sights set on perhaps her biggest conquest yet: the US.

The growth of US sports betting has been meteoric since 2018, when the Supreme Court overturned a 1992 federal law that had essentially banned the practice. Predictably, Coates moved fast – Bet365 is now available in 10 states with a combined population of more than 85 million people. Some analysts have predicted that California, one of 12 states where sports betting remains illegal, would be a bigger market than the whole of the UK. The Coates territory has plenty of room to grow.

Bet365 refuses to disclose the geographical breakdown of its earnings, claiming it would be “prejudicial” to its interests. But as one person familiar with the company’s operations put it: “If you don’t have to declare the geographic breakdown of your business, why would you?”

In 2014, Bet365 appears to make significant income from China, categorised as a “grey” market in the gambling industry, because betting is a criminal offence there. Indeed, some Bet365 customers had been arrested after apparently placing bets on the Bet365 website, while bloggers who promoted the company were jailed.

The company faced no repercussions, perhaps because, as Bet365 pointed out at the time, it does not have any physical assets or staff in China. And, as a digital business with cross-border reach, it is able to stay well out of the range of any effort at enforcement action by Beijing, which has cracked down hard on domestic betting businesses.

Meanwhile, Bet365 continues to recruit Chinese speakers for its call centres in Stoke, according to job adverts posted online. It appears to look after them well, too. Land Registry records show that the company owns a vast property empire in Stoke, comprising more than 71 separate land titles, some of which are residential addresses where, according to locals, some of its imported personnel are housed. With China offering more than 1 billion potential customers, housing for a few call centre staff may be a small price to pay.

This approach – identifying a lucrative goal and then going hell for leather in pursuit of success – epitomises the ethos that has underpinned the Denise Coates story. “It’s what Bet365 do: they are like a patient, aggressive poker player,” says Bowden. “They think long and hard, and when they make their minds up that this is a good value bet, they go all in.”

Coates herself put it more succinctly in her 2012 interview: “We were the ultimate gamblers, if you like.”

August 30, 2024

UK: Study Examines the Impact of the Gambling Credit Card Ban

Several years ago, in April 2020, the United Kingdom became the first country to implement a complete ban on the use of credit cards for online and retail gambling. More than four years after the implementation of the ban, new research probed into the impact of the measure, how it affected gamblers and whether or not some consumers changed their behavior in light of the ban.

A report on the evaluation of the credit card ban in the UK was released Thursday by the National Center for Social Research. The evaluation of the credit card ban outlined strategic objectives, including determining the degree to which the ban was implemented, its impact on consumer behavior and other important factors that measured its effectiveness.

Focusing on the perception of the ban, the recently released report confirmed that it was “perceived to be a positive change by key stakeholders (people who gamble, affected others, support providers) overall.” Importantly, people who engaged in gambling activities admitted to understanding why the measure was needed.

Despite being perceived as an overall positive change, providers of support services acknowledged that “the ban was not comprehensive enough as it did not address other types of borrowed money.” While gambling operators considered that a risk-based approach would have been a better solution, charities and organizations providing support for people affected by at-risk gambling warned that problem gamblers may “turn to other sources of borrowed money which will make it difficult for affected others to monitor the spending of those who gamble.”

Notably, the evaluation uncovered that the increased friction did not always change the consumers’ gambling patterns. This means that after the ban, the people who admitted to gambling and borrowing money didn’t stop doing so.

When it comes to awareness of the ban on credit card gambling, the National Center For Social Research’s white paper explained that 57% of the people at moderate risk of gambling or ones at high risk of gambling were more likely to be aware of the restriction.

In contrast, only 29% of the people who experienced low levels of problem gambling were aware. A similar percentage of 23% of the surveyed individuals who admitted to having no gambling problems said they knew about the ban on credit cards for gambling. Approximately 11% of the non-gamblers said they were informed about the credit card gambling ban.

Per the recent evaluation, the consumers were notified about the ban on gambling with credit cards through different channels with the list including social media, pop-up messages and emails sent by gambling providers. Despite the wide variety of channels used to inform the population, some responders considered that more precise targeting could have been used.

Recently, a separate study conducted by the National Center for Social Research for GambleAware uncovered that marginalized communities use gambling as a method to cope with social exclusion. Although such communities included a diverse range of groups, gambling was found to be a common method to deal with many issues, including discrimination, mental health issues and loneliness, among others.

August 05, 2024

Brazil Bets framework complete as SPA settles on Responsible Gambling rules

The Secretariat of Prizes and Betting (SPA) has completed the technical framework required for the government of Brazil to launch a federal online gambling market – commonly referred to as ‘Bets’.

On Friday, the SPA submitted ordinance No.1231 to the government, outlining its rules and technical guidelines for responsible gambling with regard to marketing, communications, and advertising of the Bets market.

The document supports previous SPA ordinances on IT securities, AML, licensing criteria, and game authorisations to guarantee the launch of a legal framework for “ethical and licensed gambling for the Federal Constitution of Brazil.”

SPA guidelines underscore that operating agents must observe Responsible Gambling as a duty of “promoting healthy, socially responsible gambling while preventing harm.”

Betting agents must adhere to statutory duties educating customers on the risks of gambling addiction/disorders and ensure compliance with age restrictions prohibiting under-18s from online gambling.

All customers must be provided with tools to set limits on money and time spent gambling, as betting agents must ensure that customers are monitored for symptoms of gambling disorders.

Self-exclusion from online gambling activities is recognised as a “legal right for customers,” in which operators must ensure no marketing communication with players that have self-excluded.

Operators must ensure that customers have the legal right to access clear information on odds, terms, and conditions, and to withdraw funds and close accounts without unnecessary restrictions.

Personal data and privacy must adhere to rules on IT securities. Customers are required to provide accurate personal information and comply with the legal requirements of betting firms on ID verification. Customers cannot act as intermediaries for third-party bets.

Prior to licensing, all operators must present the SPA with a “responsible gaming policy” and ensure that it accurately reflects the actual functioning of its betting system.

The integrity of betting systems includes complying with regulatory requirements on AML protections and the filing of income statements and tax receipts.

Advertising rules prohibit targeting minors and vulnerable audiences. Marketing campaigns cannot imply “gambling as a solution to financial problems,” or make misleading claims about winning odds, linking gambling to personal or financial success.

Advertisements must clearly display age restrictions (18+) and warnings about addiction risks, as betting agents must ensure that all “promotional content is clearly identifiable as advertising.”

On social media, campaigns must be transparent when promoted by influencers, who must disclose the commercial relationship and ensure that campaigns are promoted to over-18 audiences.

The ordinance upholds the rule that customer sign-up bonuses are prohibited, but “actions that encourage bettor loyalty are permitted.”

In sports and media sponsorship, betting campaigns must promote responsible advertising and avoid sponsoring events or teams involving minors. Sponsorships will be reviewed to ensure responsible messaging to audiences.

The SPA detailed that regulatory oversight of advertising campaigns will be initiated from the market’s expected launch on 1 January 2025, with “immediate sanctions for non-compliance.”

Stringent administrative penalties have been outlined for individuals or entities that violate regulations, including warnings, fines, suspension of activities for up to 180 days, and cancellation of authorisations.

As outlined under licensing accreditations, Bets fines may range from 0.1% to 20% of the revenue generated in the year preceding the initiation of proceedings, with a maximum limit of BRL 2 billion.

Offenders may also face prohibitions from obtaining new authorisations and engaging in certain activities for up to ten years, as well as being banned from participating in public service concessions for at least five years.

July 15, 2024

Walmart to Enter the Lottery Sector & Launch iLottery App


Fiona Simmons July 15, 2024 3 min read

Fact-checked by Angel Hristov
Walmart to Enter the Lottery Sector & Launch iLottery App

Walmart’s exact plans are still unknown and may take time to come to fruition but, according to Lottery Geeks, the shift toward lottery gaming is already underway
A Walmart shop
Image Source: Shutterstock.com

Multinational retail giant Walmart revealed that it is preparing a lottery push, hoping to capitalize on the increased demand for lottery products. At its annual summit in April, the company told lottery vendors that it plans to offer lottery and iLottery products.

The summit was attended by companies such as IGT, NeoPollard and Scientific Games. While Walmart’s exact plans are still unclear, the company revealed a new slogan aimed at the lottery industry, “Be in it to Win it,”  according to presentation materials from the summit.

Walmart’s exact plans are still unknown and may take time to come to fruition but, according to Lottery Geeks, the shift toward lottery gaming is already underway.

According to experts, Walmart’s lottery plans may seek to solve the “frustrating disconnect” between lottery point-of-sale systems and stores’ internal POS systems that other retail giants have been experiencing. This disconnect is effectively depriving retail companies of valuable online shopping data.

Lottery Geeks concluded that Walmart’s plan is to leverage its financial stability to solve this matter, gaining an edge over its competitors. However, the lottery news outlet did not receive confirmation from Walmart that this is the case.
Walmart Selects Lazlo as Its Lottery Developer

Considering Walmart’s size, its desire to expand into new verticals in a way that provides it with an edge over its competitors is not that surprising. Something that took the industry by surprise, however, was the retail giant’s choice of developer for its digital app.

As it turns out, Walmart selected Lazlo, an Alpharetta-based platform provider that “bridges the gap between brick and mortar and digital sales channels.” The choice perplexed analysts considering that Lazlo is a fairly small provider that isn’t as renowned as other companies in the sector.

In any case, Lazlo’s ability to deliver a robust and reliable app for Walmart is yet to be seen.
Walmart Changed Its Philosophy

Lottery Geeks also pointed out that Walmart’s lottery plans mark a shift in its direction. While the company previously tended to avoid the lottery sector as some people consider lottery gaming to constitute gambling, it has now seemingly changed its philosophy.

Walmart’s new direction is likely inspired by the rapid growth of iLottery gaming. Online lotteries are now available in 14 US jurisdictions and are poised for further growth.

An IGT representative previously pointed out that Walmart looks at the lottery sector in a different way and has a novel approach to automation.

Walmart, according to Lottery Geeks, could possibly revolutionize the market if it manages to find a way to operate as both a vendor dealing with the state and as a retailer that is selling lottery tickets. The lottery experts also guessed that Walmart could also form an alliance with the Mega Millions consortium.

In any case, if Walmart succeeds in aligning lottery and retail POS systems, it will be a true game changer that is likely to revolutionize the sector.

May 17, 2024

Bulgaria’s ban on gambling ads enters State Gazette

The changes to Bulgaria’s Gambling Act are now officially a law starting from today.

Businesses were previously notified that they would have three days to adapt accordingly after the changes are published in the State Gazette, which happened this Tuesday after a sign off by Bulgarian President Rumen Radev.

The new legislation represents the country’s biggest gambling market overhaul in nearly a decade, with the main highlight being the ban on gambling advertisements.

In recent years, gambling companies enjoyed an almost unlimited freedom to advertise their products however they like, including during primetime TV broadcasts.

With the new texts now officially part of Bulgaria’s legislative framework , the ability to promote gambling offerings will be scaled back significantly starting from today.

Outdoors, gambling providers can now only advertise on billboards, with the inclusion of numbers and bonus promotions explicitly restricted to avoid “enticing players”.

From today, ads are also forbidden from being shown on TV, radio, print and online platforms. Compliance with this rule will be overseen by Bulgaria’s media watchdog, the Council for Electronic Media. If a violation is found, the Council will notify the country’s gambling regulator, the National Revenue Agency (NRA), to impose penalties where needed.

Some of the biggest media companies in Bulgaria voiced their concerns about the new legislation, arguing that the ban of gambling ads will significantly undercut their budget, therefore affecting viewers’ content.

A draft first appeared at the start of April when it failed to win over the majority vote in the National Assembly.

Then, another draft appeared at the end of the month, this time rewritten and put forward by a different political party, which successfully managed to push it through first reading.

The bill then also passed second reading, winning an overwhelming majority with 0 votes against it. It was then handed over to President Radev for review, who published it into the Gazette on Tuesday.

The three articles linked above are in chronological order to provide context, and offer a more detailed look over all of the significant changes that the gambling market in Bulgaria will face from today.

April 17, 2024

Cyprus Betting Revenue Hits €1 Billion in 2023

 Cyprus’ betting sector witnessed growth in 2023, with the gross betting revenue reaching €1,109,209,082. This represents a 16% increase compared to the previous year (€959,557,906). The rise in revenue can be attributed to various factors, including the rise in both land-based and online betting activities.

The betting industry in Cyprus is divided into two categories: Class A (land-based betting) and Class B (online betting). In 2023, Class A recipients generated a total gross revenue of €90,487,835, while Class B recipients accounted for €235,113,629. These figures indicate an 8% increase for Class A and an impressive 17% increase for Class B compared to the previous year.

The profits of Class A and B players also experienced a significant boost in 2023, totaling €291,754,064. This represents a 10% increase compared to the corresponding period of the previous year. Class B players contributed the largest share of profits, amounting to €216,072,279.

Analyzing the quarterly revenue comparison for 2023, we observe a consistent upward trend. In Q4, the gross betting revenue of Class A and Class B recipients reached €325,601,464, marking a 10% increase compared to the same period in the previous year (€296,607,170).

Examining the betting receipts, we find that Class A and B receipts amounted to €33,847,400 in Q4 of 2023, reflecting a 9% increase compared to the corresponding quarter of the previous year (€30,934,442). Class A betting receipts reached €14,806,050, indicating an 8% increase, while Class B betting receipts amounted to €19,041,349, showing an 11% increase compared to Q4 2022.

The total number of licensed properties in Cyprus increased slightly by 2% in Q4 of 2023 compared to the corresponding quarter of the previous year. Currently, there are 490 licensed properties across the country. Nicosia leads with 170 properties, followed by Limassol with 139, Larnaca with 90, Paphos with 54, and Famagusta with 37 properties.

The betting industry in Cyprus has also created employment opportunities, with the number of people employed in licensed premises reaching 1,476. This represents a 4% increase compared to the corresponding period of the previous year.

Efforts to combat illegal gambling activities have intensified, with a 3% increase in the number of illegal websites blocked in Q3 of 2023. The total number of blocked illegal betting service websites now stands at 19,073.

April 10, 2024

Romanian lawmakers vote to ban slot machines in localities with a population under 15,000

The ruling majority in Romania’s Chamber of Deputies tabled on short notice and quickly endorsed a bill under which the slot machines will be banned in localities with a population of under 15,000 residents.

The ruling Social Democratic Party said it is a first step towards regulating the gambling industry, while the opposition party USR claimed that the bill is not sufficient and an attempt to prevent a genuine law that would regulate the industry.

The lawmakers had previously discussed banning advertising promoting gambling and banning the betting shops and slot machines in the central area of the cities.

“The scourge of gambling does not exist only in localities with 15,000 inhabitants. Scams destroy millions of families throughout the country. We voted for this law, but until we adopt the correct solutions, we leave more than half of Romanians unprotected,” USR MP Diana Stoica pointed out.

The lawmakers of the ruling majority promised that more bills to regulate the gambling industry would follow.