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France Proposes Legalization of Online Casinos to Tackle Budget Deficit

Legalising-online-casinos-France-places-a-bet-on-solving-budget-woesThe French government is moving toward legalizing online casino games in a bold move aimed at bolstering its state finances and curbing illegal gambling. The proposed amendment, part of the 2025 draft budget, suggests introducing a 55.6% tax on online casino turnover, potentially generating significant revenue for the country.

Addressing France’s Budget Deficit

France’s growing deficit has become a major concern for the government. In 2023, the deficit reached 5.5% of GDP, well above the EU’s target of 3%. The situation could worsen, with 2024 figures expected to exceed 6%. Finance Minister Antoine Armand emphasized that legalizing online casinos could help combat the deficit by contributing valuable tax revenue to the national budget. “Those that exist, which are sometimes operating illegally, must either be closed or regulated or have to contribute,” Armand said in a recent television interview .

The country’s current legal gambling sector generated approximately €13 billion in 2022, according to a PricewaterhouseCoopers report. However, an estimated €748 million to €1.5 billion of gross gaming revenue comes from illegal online casino sites, which the government is hoping to bring under control through regulation .

Fighting Illegal Gambling and Public Health Risks

Legalizing online casinos would not only bring in much-needed revenue but also address the growing problem of illegal gambling. France’s gaming watchdog, l’Autorité nationale des jeux (ANJ), has highlighted the risks posed by unregulated sites, which often operate from tax havens. These illegal platforms expose French citizens to gambling without proper consumer protections, exacerbating addiction risks.

By legalizing and regulating online casino games, the government aims to create a safer gambling environment. Proponents of the law argue that regulation would provide tools to mitigate the public health impacts of problem gambling. This includes measures to protect vulnerable players, which would be implemented in coordination with ANJ and other relevant authorities.

Concerns from Land-Based Casinos

Despite the government’s optimism, the proposal has drawn criticism from the country’s physical casinos. Grégory Rabuel, president of the Casinos de France union, expressed concern about the impact on traditional establishments, warning that legalizing online casinos could result in a 20-30% decline in revenue for land-based casinos. Rabuel also predicted that around 30% of these venues could close, leading to the loss of approximately 15,000 jobs.

In a statement to Les Echos, Rabuel stressed that if online casinos are legalized, they should only operate in partnership with physical casinos to ensure that local businesses and jobs are protected. He called for a cautious approach to prevent weakening France’s existing network of more than 200 land-based casinos .

Moving in Line with EU Neighbors

France and Cyprus remain the only EU member states where online casinos are entirely banned. The French government has pointed out that the new amendment is designed to align France’s regulations with those of its European neighbors. This would bring the country closer to the broader EU trend of regulated online gambling .

Prime Minister Michel Barnier’s administration, which has been keen to address the fiscal challenges facing France, sees the legalization of online casinos as part of a broader strategy to modernize the gaming framework. The move would place France in a stronger position compared to other EU markets, enhancing both its revenue collection and regulatory oversight.

Balancing Revenue and Risk

While there are strong arguments for the potential financial benefits of legalizing online casinos, industry experts warn that this change alone may not entirely eliminate illegal gambling. Elsa Trochet-Macé, a spokesperson for ANJ, pointed out that even with regulation, illegal operators might continue to appeal to a portion of the gambling market, particularly those drawn to riskier or less regulated options. As a result, a careful balance must be struck between generating revenue and ensuring the effectiveness of regulatory efforts.

If passed, the amendment is expected to take effect in 2025, with the hope that it will provide France with a fresh source of tax income while mitigating the risks of unregulated online gambling. Advocates of the measure are confident that it will help address France’s fiscal woes while simultaneously creating a safer environment for online gambling enthusiasts.

Source:

“Legalising Online Casinos: France Places a Bet on Solving Budget Woes“, euronews.com, October 23, 2024.

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NBA Hall of Famer Tracy McGrady Becomes BetVictor Canada Ambassador

NBA Hall of Famer Tracy McGrady has been in the news a lot lately, mostly for welcoming cousin and former fellow Toronto Raptor Vince Carter into the Hall a few weeks back. He’s also been backing his fledging one-on-one basketball tournament, called Ones Basketball League.

Now, on Wednesday, BVGroup announced that the seven-time NBA All-Star has joined their team as its new Safer Gambling Ambassador in Canada for its flagship BetVictor brand.

NBA Hall of Famer Tracy McGrady signs with BetVictor as its Safer Gambling Ambassador in Canada. Image/BetVictor

Responsible Gambling Message

“Tracy is a hugely popular ex-Toronto Raptor with a special connection to Toronto and Canada,” said Mark Harper, head of emerging markets for BVGroup, to Casino.org. “He will be helping BetVictor promote our safer gambling tools in Canada and will help BetVictor shine a light on the importance of responsible gambling and the safer gambling tools that we offer our customers. Tracy will help BetVictor communicate our safer gambling message in Canada.”

McGrady and Carter had some memorable times playing for the Raptors together in the late 1990s. Carter was drafted fifth overall by the Golden State Warriors in 1998, then traded to the Raptors. From there “Vinsanity” was born. Carter became a global star, winning NBA Rookie of the Year in 1999, followed by the memorable Slam Dunk Contest win at the 2000 NBA All-Star Weekend.

Jontay Porter Suspension Topped the News

McGrady joined the Raptors right out of high school in the 1997 NBA draft (ninth overall pick), forming a duo with his cousin. But it was only when he left the Raptors for the Orlando Magic in 2000 that his career really took off, becoming one of the league’s most prolific scorers. McGrady went into the Hall of Fame in 2017. On the other side, Carter would end up playing 22 years in the league and has gone into the Hall as a Raptor.

In a statement, McGrady said: “I’m delighted to continue my close partnership with BVGroup and become BetVictor’s Safer Gambling Ambassador in Canada.”

McGrady and Carter: Dynamic Duo

BetVictor offers an array of tools and services to help its Canadian customers bet and play safely and responsibly, across a host of sports betting markets and online casino games.

The NBA was in the betting news for all the wrong reasons last season after former Raptor Jontay Porter was banned from the league after an investigation showed that he compromised his play to help bettors win money on Raptors games on January 26 and March 20. Porter later admitted in court he schemed to take himself out of games to help get out from under large gambling debts.

 

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UK Gambling Commission Prepares First Study to Combat Online Black Market

Gambling-Commission-embarks-on-black-market-study-to-improve-monitoringIn a bid to clamp down on illegal online gambling, the UK Gambling Commission (UKGC) is set to release its first comprehensive study of the UK’s black market. Scheduled for publication in spring 2025, the study aims to provide the UKGC with data-driven insights into the scale of unlicensed gambling and inform its strategies for disrupting illegal operations.

The research will investigate consumer motivations, focusing on why individuals access unlicensed gambling websites. By collecting and analyzing web traffic data and player behavior, the UKGC hopes to estimate the financial impact of the black market, particularly in terms of gross gambling yield (GGY). This data will enable the regulator to better monitor and combat illegal activities, ensuring that the licensed market is protected and consumers are safeguarded from harmful practices.

How the UKGC is Measuring the Impact of the Black Market

To estimate the size of the black market, the UKGC is employing a mix of web traffic analytics and player spending data.

The regulator has collected information from over 139,000 gambling accountsacross seven UK operators between 2018 and 2019, using this data to estimate that the GGY for online slot machines on unlicensed sites is approximately £0.32 per minute. However, this approach has its limitations, particularly when it comes to other forms of gambling like sports betting, which may involve higher spending but are not accounted for in the current model.

The UKGC is also monitoring specific search terms that are likely to be used by consumers seeking unlicensed gambling platforms. By tracking popular queries via Google Trends and Similarweb, the Commission identifies search results that lead to unlicensed sites. Web traffic from these sites is then analyzed, providing insights into the behavior of UK consumers on illegal platforms.

International Comparisons and Challenges

The UKGC’s efforts align with similar studies conducted by other European regulators, such as the Netherlands and Sweden, where data has shown that consumers often spend more on unlicensed platforms than on regulated sites. This insight is reflected in the UKGC’s methodology, which acknowledges that spending habits on unlicensed sites may differ from those on licensed ones.

In a note about the study, the UKGC said, “With a better understanding of why and how consumers access unlicensed gambling websites, we can identify ways in which we can use data to identify unlicensed websites and make estimates of their usage by GB consumers.” This approach will help the Commission create more effective strategies for monitoring and disrupting the black market.

CEO Andrew Rhodes emphasized the social and economic risks posed by the black market. “The illegal market is bad from a human point of view – as it poses a risk to consumers, especially the vulnerable. It is also unlikely to operate in a way that is fair or safe. It is also a concern from an economic point of view – as it pays no tax and undercuts legitimate business,” he stated. Rhodes further highlighted the role that data analytics will play in addressing these challenges.

Future Research: Social Media and Encrypted Messaging

Looking ahead, the UKGC plans to expand its research to examine the role that social media platforms and encrypted messaging apps play in facilitating unlicensed gambling. Services such as WhatsApp, Telegram, Twitch, and Kick are increasingly being used to promote gambling content, and the Commission is eager to understand how these platforms drive traffic to unlicensed operators.

Over the past year, the UKGC has ramped up its efforts to combat the black market, issuing more than 750 cease-and-desist orders and removing 50,000 URLs from search engine results. The findings from the study, to be published in 2025, will guide the next phase of the UKGC’s strategy to combat illegal online gambling and protect consumers.

Source:

“Unlicensed Gambling Using Data to Identify Unlicensed Operators and Estimate“, gamblingcommission.gov.uk, October 21, 2024.

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Crown Resorts Sells Melbourne Property Once Targeted for Skyscraper

Crown Resorts has found a buyer for its One Queensbridge development site as the Australian casino company continues to unload underutilized assets to strengthen its bottom line and recoup losses stemming from recent government inquiries.

Crown Resorts Melbourne Queensbridge
Crown Resorts has sold a strip of vacant buildings along Queens Bridge Street in Melbourne near its Crown Melbourne casino resort. Crown had planned to build a hotel and residential tower at the property dubbed One Queensbridge. (Image: Google Maps)

Crown, owned by US-based private equity titan Blackstone, recently sold 1-29 Queens Bridge Street to commercial real estate group PDG. The Australian Financial Review reports the selling price was AU$85 million (US$57 million).

The nearly 1.3-acre property consists of the long-shuttered, two-story Queens Bridge Hotel and four adjacent boarded-up office and retail buildings.

In 2017, when Crown was still under the control of its billionaire founder James Packer, the company acquired 1-29 Queens Bridge with plans to build a 90-story skyscraper housing 388 hotel suites and more than 700 private residences. The building, which would have been Melbourne’s tallest, was to connect across Queens Bridge St. to the Crown Melbourne resort and casino. 

Project Downturn

Crown Resorts was partnered with Schiavello Group, an Aussie property developer, on the One Queensbridge development. The partnership stalled the hotel and residency tower in 2019 because of slowing apartment demand downtown.

During the 2020 pandemic, Crown bought out Schiavello’s 50% stake in the project for AU$80 million. Months later, an inquiry in New South Wales into Crown’s suitability to possess a gaming license for its new resort in Sydney found that the company failed to protect its casinos in Melbourne and Perth from being used to launder money, and did little to keep criminals off of the resorts’ premises.

The NSW findings sparked inquiries in Victoria and Western Australia. Those probes reached similar conclusions and led to Packer’s ousting and forcible sell-off of his stake in the company he founded.

In 2022, Blackstone took Crown private in a takeover valued at AU$8.9 billion. Blackstone paid AU$450 million in fines after Crown was deemed unsuitable to hold gaming licenses by state officials in exchange for Crown being allowed to continue running its casinos under government-appointed monitors. Blackstone invested another AU$130 million to improve the company’s operations and become compliant.

Crown has since been deemed suitable in NSW and Victoria. The firm hopes to field a suitability determination in Western Australia in the coming months.

Crown Selloff Continues

Crown Resorts narrowed its annual fiscal loss in 2024 to AU$165 million from AU$199 million in FY2023. The company’s revenue, however, declined 0.2%.

Crown’s bottom line was strengthened as Blackstone divested assets. In July, Blackstone sold Crown’s 20% position in restaurant and hotelier Nobu for AU$1.3 billion.

The company is reportedly open to offers for its high-end Crown Aspinalls Club in London, a swanky members-only casino in Mayfair. The posh property has seen a downturn in VIP play in recent years after the British government scrapped the duty-free system afforded to foreign visitors. That’s led to fewer high rollers visiting London from the Arab Gulf states, many of whom patronized Aspinalls to get their gambling fix.

Crown and Blackstone are additionally said to be exploring a deal to sell the Capital Golf Club, an ultra-exclusive private golf club designed by famed golfer and course architect Peter Thomson.

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Brazil Faces Legal Battles Over Betting Sites List and Crackdown on Unlicensed Operators

Operators-left-off-SPA-approved-list-initiate-lawsuits-against-the-regulatorBrazil is dealing with a wave of legal action from betting companies following the release of an approved list of operators allowed to continue operating in the country. This list, published by the country’s Department of Prizes and Betting (SPA) in early October, features 96 companies, along with 210 affiliated brands, eligible to operate between October 1 and December 31, 2024. However, several companies excluded from the list have filed lawsuits against the Ministry of Finance, sparking controversy over the approval process.

SPA’s Crackdown on Illegal Betting Sites

The creation of the approved list was prompted by increased pressure from both the industry and the government to regulate the market ahead of Brazil’s licensed gambling market launch, set for January 1, 2025. The government is determined to crack down on illegal betting operators in the meantime. As part of this effort, the National Telecommunications Agency (Anatel) was tasked with blocking 2,040 websites deemed illegal, including prominent names such as Betfred and BoyleSports.

While the approved list allows licensed operators to continue functioning, companies not on the list must cease operations until they obtain federal authorization. This restriction has led to significant backlash from several betting operators, with at least eight lawsuits filed in the federal courts.

Lawsuits from Excluded Operators

One of the prominent lawsuits comes from Zeroumbet, a betting platform owned by lawyer and social media influencer Deolane Bezerra. The company submitted its federal betting license application on August 20, 2024, but was left off the approved list due to an ongoing federal investigation into illegal gambling and money laundering. The investigation, known as ‘Operation Integration,’ is centered on Bezerra, arrested twice in September. However, Zeroumbet’s legal team argues that the investigation should target Bezerra as an individual and not impact the company’s operations. “In this case, the one who would be punished would be Deolane Bezerra and not the company,” the lawsuit contends.

In response to the lawsuit, the SPA maintained that Zeroumbet was excluded to protect public interest and ensure the integrity of bettors, given the ongoing investigation. Zeroumbet is seeking a court ruling to allow the company to resume operations despite the investigation, which could have significant financial and reputational implications for the platform.

State-Level Authorizations and Federal Disputes

Other operators, such as Esportes da Sorte, have taken a different route to stay in the market. Although Esportes da Sorte was also excluded from the SPA’s approved list, the company secured authorization from Rio de Janeiro’s state lottery regulator, Loterj, by acquiring controlling shares in the Loterj-licensed company ST Soft. This allowed the company to continue offering betting services at the state level, despite its exclusion from the federal list.

However, Rio’s stance has drawn criticism from the federal government, challenging the legality of allowing Loterj-accredited betting sites to operate nationwide. The federal government has taken the issue to Brazil’s Supreme Federal Court (STF), arguing that state-level licenses should not bypass federal regulations.

Wider Implications for the Lula Government

The Lula administration is facing significant pressure as it seeks to regulate Brazil’s gambling market. Betting has been legal in Brazil since 2018, but until recently, there was no regulation in place for operators. The government began implementing rules last year with the goal of collecting taxes and ensuring compliance. Despite these efforts, the Ministry of Finance has already faced a series of lawsuits, and more legal challenges are expected as excluded companies continue to contest the SPA’s decisions.

For companies like Sportvip Group International Apostas, the legal battle is seen as crucial to their financial survival. The company recently had its preliminary injunction request denied, but the court is still considering the full case. Sportvip, like many others, argues that being left off the list could result in “incalculable financial and reputational losses.”

The controversy has also been fueled by revelations from a Central Bank report, which indicated that people covered by Brazil’s social welfare program, Bolsa Família, transferred R$3 billion to betting platforms in August alone through the Pix payment system. This discovery has intensified scrutiny of the industry, particularly regarding unregulated platforms operating in the country.

As the lawsuits progress, the Brazilian government’s efforts to regulate the market and safeguard public interest will continue to face challenges from operators pushing for inclusion in the newly regulated space.

Source:

“Governo Já Enfrenta Ações Sobre Lista de Bets e Empresa de Deolane Tenta Liberação“, jornaldebrasilia.com.br, October 16, 2024.

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