UK reports drop in children gambling – maybe
UKGC stats, crypto affiliates, Florida flight, California battle +More
Data doubts means the good news on child gambling rates might have been overstated.
Affiliate Finixio under fire over its shilling for crypto.
Florida: West Flagler petitions for SCOTUS extension.
California proponents say they will continue with doomed sports-betting effort.
But you won’t fool the children of the revolution.
UKGC stats
The data from the UK Gambling Commission shows a drop in rates of children gambling – but the nature of the survey questions may overstate the illegality involved.
The annual study noted the most common types of gambling activity that young people spent money on were legal or did not feature age-restricted products, such as penny arcade machines and wagering with friends and family. Data was collected from 3,453 11-to-16-year-olds and, for the first time 17-year-olds, from schools across the UK.
According to the Commission, the number of young gamblers defined as “at risk” also dropped from 2.4% in 2022 to 1.5%.
While more than half of young people had seen or heard gambling advertising via online or offline platforms, the numbers were also down on last year.
The regulator said it would continue to clamp down on advertising aimed at young people and, in the land-based area, was seeking to implement further age-restricting protocols.
Children’s crusade: The regulator’s chief executive Andrew Rhodes has been on a one-man crusade against what he feels is an increase in the misuse of statistics by parties on both sides of the harm debate.
Rhodes has toured media over the last six months expressing his frustration at the inaccurate use of numbers, some of which, he claims, have been bent to support “conspiracy theories”.
Many experts have pointed out the GC itself has often relied on flawed harm-related statistics, with little consistency in definition across its own research.
Dan Waugh of Regulus Partners told C+M the recent report excludes addiction and uses alternative thresholds that may be overstating the extent of illegality involved in children’s gambling activities.
“For example, the criteria of ‘illegal acts’ in surveys of adults refers to crimes committed to fund gambling,” he says.
“Whereas in the children’s survey, it encompasses the expenditure of any money on gambling not provided expressly for that purpose (e.g. pocket money, bus fare, dinner money).”
A matter of trust: There are also issues of reliability around the numbers put forward by ‘problem gamblers’; the Commission claimed many ticked off every single gambling activity in the survey – 16 in total – in the prior year, with some in the week leading up to the survey.
“The GC has been relatively straight in publishing the survey results and there has been a little coverage this year,” Waugh said.
“At the same time, a number of campaigners – including those who receive funding from the Gambling Commission – continue to misuse results from previous surveys.”
“Andrew Rhodes pledged to stamp this out but disclosures made under the Freedom of Information Act show that this has not happened,” he added.
A straight bat: “Protecting children and young people from harm remains a priority for the Commission and it is working hard to implement relevant proposals by the government in its Gambling Act Review White Paper,” said the GC.
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+More
Love in a cold climate: The Swedish regulator, Spelinspektionen, has welcomed the proposed strengthening of consumer protections as part of the government’s updating of the country’s gambling laws.
The amendments are set to come into force in April next year and will include a right for operators to access personal data relating to finance and health provided by customers.
Buzzing: Bet365 has partnered with the Charlotte Hornets to become the NBA team’s official betting partner. The deal will become active as and when the company receives a license to operate from the North Carolina authorities.
Phishing expedition: Casino operator Great Canadian Entertainment has posed a warning about scams posted on social media offering false casino promotions, advertising sign-up bonuses and free spins for downloading apps that don’t exist.
An inspector calls: Regulators in the Netherlands have found that an organization known as Dordtse Queens was advertising and organizing illegal bingo sessions despite being warned previously. The inspectors reportedly raided a planned in-person bingo session and confiscated prizes including branded clothing, bags and shoes.
What we’re reading
A one-horse race: Martin Purbrick, chair for the council on illegal gambling at the Asian Racing Federation, says the five biggest illegal betting markets in Asia – China, Indonesia, Malaysia, the Philippines and Thailand – have “limited or ineffective legal betting markets” that cannot compete.
The token word
Finixio under fire
Whose side are you on: Digital media group Finixio is at the center of a compliance conundrum after being caught between regulator and regulated. A report by Thomson Reuters Regulatory Intelligence noted the firm, which is also active as a gambling affiliate, had eluded a crackdown on crypto marketing by the Financial Conduct Authority (FCA).
Despite this, a hyper-cautious sector is distancing itself from the firm, with exchanges eToro and Coinbase pausing or halting partnerships amid concerns Finixio is non-compliant.
The marketer runs websites that promote crypto-related news and tokens, but it has fallen between the gaps of the FCA’s regime.
Since October 8, all advertising of crypto-assets was wrapped into the same regulatory regime that applies to financial services firms, prompting a number of high-profile crypto firms to stop serving the UK as a result.
Finxio told Reuters its websites were out of date, despite still promoting crypto content generation, marketing and jobs.
Last year, the firm said it planned to aggressively increase its crypto content, having partnered with major exchanges including Binance.
Exchanges
Out of the frying pan: The US Justice Department is seeking more than $4bn from Binance as part of a proposed resolution of a long-standing investigation into the world’s largest cryptocurrency exchange.
The probe looked at potential AML violations, bank fraud and sanctions violations.
Under the terms of the rumored deal, Binance’s controversial CEO Changpeng Zhao – CZ to his friends and followers on X – may also face criminal charges.
He currently resides in the United Arab Emirates, which doesn’t have an extradition treaty with the US but wouldn’t stop a voluntary surrender to the US authorities.
$4bn settlement? No problem: Binance’s native BNB crypto token rose 8.5% in early trading as the news spread. Matt Walsh, founding partner at crypto venture firm Castle Island Ventures, told Bloomberg a settlement with a monitoring provision “could be a compromise” that sets Binance down a more compliant and institution-friendly path.
Bloomberg reported on market observers suggesting the settlement plan would strike a balance that would allow Binance to continue operating, rather than risk a collapse that could cause negative fallout for markets and crypto holders.
Another possibility is a deferred prosecution agreement whereby the US would not go forward with a prosecution as long as the company meets prescribed conditions, which usually include paying a substantial penalty and agreeing to a detailed statement of facts outlining its wrongdoing.
A process would be set up to monitor the company’s compliance.
Into the fire: Meanwhile, a plan that on the face of it appears to fly in the face of logic is apparently being put in place to resurrect FTX, despite founder Sam Bankman-Fried being found guilty of fraud. Apparently three bidders have put forward proposals to reopen trading despite outstanding claims against the exchange totalling $16bn.
Florida fight
Late homework: West Flagler has filed an application for an extension to February next year in order to to file its petition for writ of certiorari with the US Supreme Court. In its request, West Flagler suggested the SCOTUS hearing would be “significantly informed’ by the decision of the Florida Supreme Court, which is also hearing the case.
The case against: Meanwhile, Daniel Wallach reported on X yesterday that West Flagler expected to file its petition for writ of certiorari that day. He noted the writ would “likely” focus on three key areas that were highlighted by Justice Brett Kavanaugh’s comment about ”serious equal protection issues.”
Did the Florida Compact “authorize” online sports betting?
Can IGRA address off-reservation tribal gaming activity?
And lastly, the equal protection argument.
No block: In further developments, the Florida Supreme Court has ruled that it won’t block Hard Rock Bet from operating within the state after it ruled against pari-mutuel operators West Flagler and Bonita Fort-Myers.
The pair had wanted the Court to halt Hard Rock’s recent (limited) relaunch while it considered the legal challenge to the 2021 Compact.
The pair argued that allowing the continuance of operations could cause “irreparable harm”.
The Seminole tribe said it was pleased with the decision.
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California battle
Anger is an energy: The California Nations Indian Gaming Association voted last week to oppose what appears to be the doomed efforts of a sports-betting initiative put forward by Eagle 1 Acquisition.
James Siva, chair of CNIGA, didn’t hold back in his criticism of the principals behind the proposal, Reeve Collins and Kasey Thompson.
“It is hard not to be offended when listening to these individuals speak,” he said.
“This is another example of outside influences trying to divide and conquer Indian tribes. We will not let history repeat itself.”
No means no: Siva added that CNIGA is calling on Collins and Thompson to drop their effort as they promised to do if they ran into tribal opposition. “Our opposition could not be more clear and is irrevocable,” he added.
Tilting at windmills: Still, according to a report in Sports Handle, Thompson refuses to give up, telling the site he has received “some amendments” from certain tribes to his proposals. “The path forward is simple,” he said.
“I committed from the beginning to not move forward without majority tribal support. And I stand by that.”
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