German regulator optimistic despite clear capture failings
German teething troubles, Virginia ruling, Italian betting scandal, payments focus – PayNearMe +More
Good morning. On today’s agenda:
The German regulated market continues to struggle to compete.
Virginia Supreme Court weighs in on skill-gaming legality debate.
Italian soccer betting scandal embroils up to a dozen players.
Payments focus looks at PayNearMe’s deal with Amelco.
German troubles
The regulated market continues to struggle to compete with the offshore offerings.
Zurück zu Schwarz: The unregulated market for German players is nearly as big as the regulated space and continues to thrive despite efforts from the regulator to impose payment and IP blocking, according to a study undertaken by Leipzig University.
The study of time spent on iCasino sites showed that 47% was spent on illegal sites vs 53% on licensed sites.
H2 Gambling Capital, meanwhile, believes the offshore market could be worth between €1-€2bn.
This compares with official figures suggesting the legal market GGR is worth €1.3bn in 2022.
Something must be done: Speaking at the Gaming in Germany conference in Berlin yesterday, Benjamin Schwanke, co-chair of the GGL, the national regulator, said the regulator was “consistently fighting violations of the law”. He noted an increase in the number of registered online slot providers and the number of games now available.
Yet, Pontus Lindwall, CEO at Betsson, said a number of reforms would be needed to improve the situation for operators and claw back anything of the money heading offshore.
He said there would need to be another look at the gaming tax, which should be based on GGR.
He added that bet limits should be removed and deposit limits should be voluntary.
Lastly, he said the options in terms of the product should also be reviewed, particularly the limitations on iCasino such as allowing table games.
Taking the temperature: Mathias Dahms from the German bookmakers association (DSWV) noted that even in the area of sports betting, where there was less leakage to offshore sites, there was evidence of a pullback in economic activity.
He noted that sports-betting turnover data for 2022 was down 13% YoY.
While some of that is down to the ending of the pandemic boost for online, it was clear that tax revenue was also going into reverse.
“That is the thermometer of the market,” he added.
Commercial break: Moreover, the amount spent on advertising and sponsorship was also down. “There is a stupid political discussion about this right now,” he said. “There aren't the extreme levels of advertising spoken about by some politicians.”
Instead, the sports-betting product was now effectively “invisible”. “And yet, political activists are calling for a total ban which is totally absurd.”
“Unfortunately some parts of the federal government have backed this call.”
** SPONSOR’S MESSAGE ** BettingJobs is the global leading recruitment solutions provider to the iGaming, Sports Betting and Lotteries sectors. Boasting a 20-year track record supporting the iGaming industry, and with a team of experts and world class knowledge, it’s no surprise BettingJobs is experiencing rapid growth with outstanding results. Does your company have plans to expand teams to cope with strong growth and demand?
Contact BettingJobs.com today where their dedicated team members will help you find exactly what you are looking for.
Virginia ban
The Virginia Supreme Court has overturned a lower court ruling and has reinstated a ban on skill games.
Status quo ante: The ruling from the state’s top court means that the legislation dating back to 2020 that outlaws skill-based gaming and which came into effect in 2021 still stands. The legislation was originally halted in 2021 after the lower court decided in Pace O-Matic's favor. The judges said the lower court abused its discretion in ruling that the skill game industry is likely to succeed in its claims that its games are a protected form of free speech.
The court ruled that the challenge from the Virginia-based truck stop owner and skill games purveyor Pace-O-Matic that the ban restricted free speech is unlikely to succeed.
The trial is set to begin in December.
Timed out: Analysts at Truist suggested the Supreme Court ruling that the lower court acted improperly means the skill games operators have “limited” recourse options. “While it's not clear exactly when the ban would be implemented, we think it could occur quickly,” the analysts added.
North America notebook
Alabama: The state house minority leader Anthony Daniels said legislators will consult with sports-betting experts and discuss casinos and a lottery during the 2024 legislative session, according to WSFA-TV.
Daniels told the Alabama Democratic Party’s Pro-Growth Policy Conference that legislators will talk to officials from Tennessee and Georgia as well as lottery vendors to provide a full picture of options available for expanded gambling.
The 2024 session of the Alabama legislature is scheduled to open on February 6.
Italian soccer scandal
A brewing scandal over betting on illegal sites envelops Italian soccer.
Scandalo: Up to a dozen Italian soccer players, including internationals Sandro Tonali, who plays for Newcastle United, and Aston Villa winger Nicolò Zaniolo, are believed to be implicated in a betting scandal.
The news broke late last week when Juventus midfielder Nicolò Fagioli was the first to be investigated for betting online via unauthorized websites.
The Italian media has claimed that a Juventus team-mate has also been implicated.
Speaking to The Times, Fagioli’s lawyer said the player was “cooperating with both judicial and sports authorities with the utmost transparency”.
The lawyer also claimed Fagioli “does not have a relevant role” in the investigation.
Company you keep: The claims of illegal activity were first made via an Italian gossip website Dillinger, which claimed there were “five or six clubs” involved. The man behind the website, Fabrizio Corona, has promised to name more names. He is a high-profile former paparazzo, television personality and convicted extortionist.
Footballers in Italy are banned from betting on their own sports.
Anyone found guilty of breaching them could be hit with a suspension of up to three years.
Payments focus – PayNearMe
Addressing the innovation challenge in payments.
Any excuse: One of the first interactions any consumer has with a gambling app will be when they are asked to transfer money. As such, it is also the first opportunity they get to abandon their customer journey, says Leighton Webb, VP and general manager of iGaming and sports betting at PayNearMe.
“Offering players the right mix of tender types and a seamless, streamlined deposit and withdrawal process is crucial for conversion,” he adds.
Payments, he points out, are tech and tech will “always continue to advance”.
“Innovative, new payment types will hit the market, and a new generation of bettors will want access to it.”
Meanwhile, the regulatory barriers to gambling can be negotiated around rather than confronted.
“While gambling regulations may pose challenges for the innovation process, it’s also an opportunity because first and foremost, regulations are put in place to protect consumers,” Webb says.
PayNearMe has recently launched a partnership with sports-betting backend technology partner Amelco for its MoneyLine platform to be added to the provider’s PAM, allowing operators to offer players deposits and withdrawals via payments methods such as debit, Guaranteed ACH, PayPal, cash and more.
Webb says the Amelco integration shows operators are seeking platform providers with advanced technology offerings and demonstrates that “savvy platform providers want to provide those innovative solutions”.
The company, which currently handles $12bn-worth of transactions through its network, is working on the adoption of AI and machine-learning technology to further advance its products.
“They will have a profound impact on the payment sector,” says Webb.
“We expect AI to be an underlying driver of innovation for MoneyLine’s platform offerings,” he adds.
** SPONSOR’S MESSAGE ** Department of Trust's mission is to turn affordability, AML, EDD and safer gambling checks from being a challenge which erodes trust, consumes resources and complicates operations into a value-add which enhances your relationship with your customers and supports your business. That's why we're proud to have such strong support from players and operators alike.
Visit: www.dotrust.co.uk/
European notebook
Sweden: The online gambling association (BOS) has issued its views on proposals by the authorities to introduce further protections with regard to risky lending. Among the proposals are the extension of the provision that people should not be offered credit to gamble as well as the introduction of the so-called Skri register of all debt and credit information.
Notably, the investigation found there were “insufficient reasons” for a ban of gambling with credit cards. BOS said it also approved of this finding.
“A ban on credit cards would have draconian consequences in the gambling market, especially in the online gambling market where our members operate, the BOS said in its submission.”
Netherlands: Dutch regulators have fined an operator more than $2m for allegedly ignoring a cease-and-desist order.
The KSA said Maltese operator LCS, by way of its Son of Slots platform, had previously paid a fine but continued to target players from the Netherlands despite not holding a license.
The firm has insisted it did not re-enter the market and the breach related to an “accidental” violation, adding that it has instructed lawyers to fight the case.
Peru notebook
Peru has approved a set of online gambling regulations, providing a framework for sports betting and igaming operators to plant a flag in the South American territory. The Ministry of Foreign Trade and Tourism (Mincetur) passed Law No. 31557, modified by Law No. 31806, which presents a set of technical and regulatory requirements for businesses.
The law will kick in on February 9, 2024, and operators will have one month from that date to apply for a license.
Crypto notebook
Binance will no longer target new UK customers in order to remain compliant with tough new marketing rules, the company said. The recent promotions regime, which entered force on October 8, has already caught out nearly 200 crypto firms, which have been warned by the regulator overseeing it, the Financial Conduct Authority (FCA).
Binance, one of the world’s largest crypto exchanges, initially partnered with a firm called rebuildingsociety.com to circumnavigate the rules, until the FCA stepped in and refused to authorize the intermediary business.
Calendar
Oct 26: Reputation Matters, London
An +More Media publication.
For sponsorship inquiries email scott@andmore.media.
