Revolution in the air
UK Gambling Commission survey suggests widespread opposition to financial risk checks
Previously buried survey shows substantial changes in behavior due to checks.
In +More: Alberta signals regulatory moves.
Online provides greater AML risk than casino resorts, says Singapore.
New research suggests addiction issues persist in Australia.
The POGO ban receives some pushback in the Philippines.
Consumer checks disquiet
Not happy: The extent of betting consumer disquiet over affordability checks was laid bare in a 2021 consumer survey that has been published for the first time, following a freedom of information request from Regulus Partners.
Uncovered: The survey was conducted by the Gambling Commission in 2021 when it underwent a call for evidence exercise ahead of the publication of the government’s Gambling Act review white paper, but it was never released.
The survey of over 12,000 respondents showed the extent to which betting consumers were unhappy with current checks on affordability and the plans for future financial risk checks.
Feeling uncomfortable: When asked what their response would be to a request for more information from a gambling operator, 42% said they would refuse to provide information due to not feeling comfortable doing so. Only 14% or just over one in seven said they would happily comply with an information request.
🤔 Stop asking questions: Consumers uncomfortable with checks
Why are you asking? The Racing Post reported that when asked if gambling businesses should be required to assess if gambling is affordable, more than three-quarters said no. In a follow up about why they answered no, 64% said customer freedom and 61% cited customer privacy concerns.
Comfort factor: Asked about how comfortable they would feel with an operator requesting more information in order to complete an affordability check, nearly half (48%) said they would be very uncomfortable while a further 18% said such a question would make them feel uncomfortable.
Only 8.5% said they would feel very comfortable and 17% said they would feel comfortable but with reservations.
😡 Are you sitting uncomfortably?
Shoot the messenger: Dan Waugh, partner at Regulus, said the fact the information contained within the survey had to be prised out via a FOI request suggested it was because it “reveals considerable antipathy” to the Commission’s policy on financial risk checks.
“It raises doubts, which have been expressed before, about the extent to which the Gambling Commission is in earnest when it runs these consultations because it has an uncanny knack of doing precisely what it sets out to do regardless of what people submit in evidence," he added.
No noise from the Birmingham boys: The Commission gave no explanation to the Post for why the survey results hadn’t been published. A spokesperson told the paper that the 2021 call for evidence took place when the Commission was exploring the concept of affordability checks and did not relate to specific proposals.
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+More
Alberta is moving forward with plans to become the second Canadian province after Ontario to open up a regulated online gambling market, the minister of Service and Red Tape Reduction, Dale Nally, told the Canadian Gaming Summit last week.
“It’s going to be very similar to Ontario,” Nally was reported as saying by SBC Americas. “We’re following their model… It’s going to be an open and free market.”
As it stands, the state is a monopoly market with the Play Alberta operation run by Alberta Gaming, Liquor and Cannabis.
Nally also said the First Nations in the province will be involved in the marketplace as well.
Model village: The Ontario template sees all approved online operators run their iCasino and sports-betting operations via iGaming Ontario. Currently, the province has 50 operators that run 80 websites.
Massachusetts: The major operators in the state have informed the Massachusetts Gaming Commission they are now willing to have a roundtable discussion focusing on sports-betting limits after rejecting the request last month, according to SportsHandle.
“Every operator has said they’d be happy to educate us on limitations,” MGC interim chair Jordan Maynard is reported to have told a meeting last week.
Let’s ride: A lottery courier service has been given the green light to operate in New York. Residents will be able to order tickets through theLotter for some of the most popular draws – including Mega Millions and Powerball – via an online site, with theLotter buying them on behalf of the customer.
Career paths
Underdog Fantasy has appointed John Pauley as its new VP of government affairs and partnerships. Pauley joins from PrizePicks where he worked in a similar role.
Singapore risk assessments
Web of iniquity: Online casinos are a greater money laundering risk than their land-based counterparts, according to Singapore authorities. The findings were revealed in a Money Laundering National Risk Assessment report jointly released by the Ministry of Home Affairs, the Ministry of Law and the Monetary Authority of Singapore.
Researchers scrutinized the risks surrounding Marina Bay Sands and Resorts World Sentosa, and noted the casinos regularly deal with patrons attempting to wash the proceeds of crimes.
The cash-heavy aspect of the business makes it a significant risk, the report found. However, it did state the venues were not believed to be “directly complicit” with any illegal activities.
Let’s take this offline: Online gambling, by contrast, carries a “higher degree of lucrativeness and higher tendency to be transnational in nature,” researchers found. They noted a recent $3bn money laundering case involving Singaporeans linked to illegal gambling sites operating out of the Philippines, and how it was harder for law enforcement to tackle offshore operators.
“Despite strict laws and regulations against online gambling, and multi-pronged enforcement actions, syndicates are still able to conduct illegal online gambling activities due to the ease of setting up or shutting down of an illegal online gambling site,” the report said.
Australian ad ban pressure
The more you ignore me: On the anniversary of a major federal study calling for a total outlaw of online gambling ads in Australia, new research has revealed one in three bets placed are by people with an addiction problem.
Last year, the federal government was presented with a series of recommendations from an independent panel aimed at reining in the sector. However, it is yet to take any action.
Pollsters working for the the Alliance for Gambling Reform (AGR) found problem gamblers make up around 20% of sports-betting operators’ customer base, and the sportsbook market itself has doubled inside five years.
Around 16,000 Australians took part in the survey, which is being used to apply pressure to the country’s Labour government for its lack of response to the inquiry.
At the time, several government figures including Prime Minister Anthony Albanese spoke out against the number of ads appearing, but no official response was forthcoming.
“These are huge numbers and they highlight how a predatory online gambling industry is ensnaring a whole new generation into gambling,” said AGR group interim chief executive, Martin Thomas.
All gone quiet over there: The parliamentary committee called for a total blackout of online gambling ads across all media by 2026. A year on, opposition politicians have accused ministers of shelving the recommendations.
“It’s time the government showed some courage and stood up to the gambling companies, media and sporting codes,” said Kate Chaney, an independent who was part of the inquiry.
David Pocock, former Australian rugby captain and now an independent senator, said the government doesn’t “seem to have the guts to stand up to an incredibly powerful industry.” Labour MP Susan Templeman, the committee chair, said she would be formally proposing that the government table its response.
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POGO ban pushback
Pogo stick: More than 22,000 jobs could go if plans to ban online gaming in the Philippines are passed, the government’s labor ministry has said. A Philippine senator is attempting to pass legislation that will outlaw the entire Philippine Offshore Gaming Operator (POGO) sector, following accusations it is being exploited by criminal gangs.
The sector is popular with both punters and workers from mainland China, with the latter group able to tap a special visa which is allegedly being abused.
The Philippines government is currently probing an influx of Chinese individuals linked to illegal POGO operators, which have been tied to drug smuggling, money laundering, fraud and kidnap.
However, a sweeping sector-wide ban would not only pose a major logistical challenge, but lead to enormous job losses and hundreds of millions of dollars of lost annual tax revenue, Labor secretary Bienvenido Laguesma has warned.
Calendar
Jul 17-20: National Council of Legislators from Gaming States, Pittsburgh
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