Paraguay Advances Bill to End Gambling Monopoly and Open Market to Competition

 paraguay_moves_to_end_gambling_monopoly_as_bill_to_amend_law_partially_approvedParaguay is taking a significant step toward transforming its gambling industry. In early November 2024, the government presented a bill that aims to amend the country’s gambling legislation (Law No 1,016/1997) and liberalise the market by ending the current monopoly on gambling operations. This initiative, championed by the government’s executive branch, has now been partially approved by the Chamber of Deputies and will move forward to the Senate for final approval.

Key Points of the Bill

The primary objective of the bill is to open up the gambling market to private companies, moving away from the exclusive public tender system that currently governs the industry. Under the new framework, operators will no longer be required to secure gambling rights through tenders. Instead, they will be able to enter the market more freely, fostering competition and allowing for a greater number of stakeholders to operate within the gambling sector.

One of the key provisions of the bill is the strengthening of the National Commission of Gambling (Conajzar), which will be placed under the National Tax Revenue Directorate (DNIT). This move is designed to improve the regulation and oversight of the sector, while also boosting the country’s ability to collect taxes from gambling operations.

Carlos Liseras, President of Conajzar, has expressed optimism about the bill, stating that the liberalisation of the gambling market will lead to enhanced tax contributions for the government, better competitiveness, and more opportunities for both operators and workers in the industry.

Economic and Social Implications

The bill comes at a time of significant social and economic change in Paraguay, with the country’s market undergoing rapid development. As noted by Liseras, technological and economic advancements have spurred the growth of new types of gambling, as well as an increasing number of both providers and users.

Paraguay’s shift toward a more competitive gambling environment reflects the broader economic policy changes under the current government, which came into power in August 2023. The bill is expected to attract more international investments, creating new job opportunities and contributing to the growth of the Paraguayan economy. The competition introduced by the bill will allow workers, such as lottery brokers, to have a choice in selecting which companies to work with, thereby promoting a healthier job market.

Deputy Billy Vaesken, who supported the bill, emphasized that the legislation would create more opportunities within the gambling sector and lead to a more dynamic and diverse market. He explained that greater competition would enable different companies to offer a variety of games of chance, including lotteries, benefiting both workers and consumers.

What’s Next?

The bill has been approved by the Chamber of Deputies and will now be reviewed by the Senate. If approved, the changes could signal a new era for Paraguay’s gambling industry, promoting growth, competition, and innovation. The government hopes that this shift will lead to increased foreign investment, more jobs, and better working conditions in the sector, making it a significant driver for the Paraguayan economy in the coming years.

Source:

“Diputados aprueban eliminar monopolio de juegos de azar”, abc.com.py, November 26, 2024.

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UK Implements Online Slot Stake Limits and Gambling Levy

tatutory-levy-and-online-slot-stake-limits-to-be-introduced-to-tackle-gambling-harm-1The UK government has announced comprehensive measures to address gambling-related harm, introducing a statutory levy on gambling operators and online slot stake limits. These initiatives aim to bolster protections for vulnerable individuals while funding essential research, prevention, and treatment programs.

Mandatory Levy to Raise £100 Million

A new mandatory levy will require licensed gambling operators to contribute to a ringfenced fund dedicated to tackling gambling harm. Replacing the existing voluntary system, this statutory levy is expected to generate £100 million annually, with 50% of the funds allocated to NHS-led gambling treatment services across England, Scotland, and Wales. The remainder will support prevention campaigns and groundbreaking research initiatives.

Gambling Minister Baroness Twycross emphasized the importance of this measure, stating, “Gambling harm can ruin people’s finances, relationships, and ultimately lives. We are absolutely committed to implementing strengthened measures for those at risk, as well as providing effective support for those affected.”

Unlike the voluntary system, which saw some operators contributing as little as £1 annually, the mandatory levy ensures consistent and equitable funding. Contributions will vary depending on the type and risk level of gambling activities, with oversight provided by the Gambling Commission.

New Online Slot Stake Limits

To further safeguard vulnerable players, the government is introducing stake limits for online slots, a product often associated with prolonged play and significant losses. Adults aged 25 and over will face a £5 limit per spin, while younger players aged 18-24 will have a lower limit of £2 per spin.

This decision follows evidence from the Office for Health Improvement and Disparities, highlighting the susceptibility of younger adults to gambling-related harm. The measure aims to provide greater protection while encouraging responsible gambling practices.

Baroness Twycross reinforced the government’s focus on safeguarding younger demographics, noting, “We are also helping to protect those at risk, with a particular focus on young adults, by introducing stake limits for online slots.”

Funding Allocation and Long-Term Goals

The government’s consultation process, held between October 2023 and January 2024, guided the distribution of levy funds. The NHS will utilize half of the proceeds to develop a comprehensive treatment and support system, encompassing triage, recovery, and aftercare services.

An additional 30% of the funding will target prevention efforts, including public health campaigns and training for frontline workers. The remaining 20% will support research through UK Research and Innovation (UKRI), driving data-informed policies and regulations to combat gambling harms effectively.

Claire Murdoch, NHS National Director for Mental Health, praised the initiative, citing a 129% rise in service referrals over the past year. “This mandatory levy will help treat this growing problem,” she stated.

A New Era of Safer Gambling

The statutory levy and stake limits are part of broader efforts to modernize gambling regulations in an era of technological advancements. Other measures include financial risk checks and stricter marketing controls to create a safer gambling environment.

By combining mandatory funding with proactive safeguards, the UK government aims to balance enjoyment and responsibility, ensuring that players can gamble safely while receiving necessary protections and support.

Source:

Statutory levy and online slot stake limits to be introduced to tackle gambling harm GOV.UK, November 27, 2024.

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Indonesia Freezes 7,500 Bank Accounts to Combat Online Gambling

380_000_gambling_platforms_shut_down_in_indonesias_latest_actionIndonesia is ramping up efforts to eradicate online gambling, with Bank Indonesia (BI) freezing 7,500 bank accounts linked to illegal gambling activities. Deputy Governor Juda Agung announced the measures during a press conference at the Ministry of Communication and Digital Affairs, emphasizing the central bank’s commitment to eliminating online gambling nationwide.

Fraud Detection and Account Freezing

Agung explained that the initiative is a collaborative effort involving payment service providers from both banking and non-banking sectors. These providers are required to implement advanced fraud detection systems to identify accounts involved in online gambling and other fraudulent activities.

“Payment service providers, both banks and non-banks, must have fraud detection systems (in place) to identify accounts used for online gambling transactions and other fraud,” Agung said. Once identified, these accounts are reported to BI, which traces and freezes them, rendering the account holder unable to withdraw funds or conduct further transactions.

The crackdown is ongoing, with Agung affirming, “We will continue to take action against bank accounts affiliated with online gambling until online gambling activities are eliminated in the country.”

Broader Crackdown Efforts

Minister of Communication and Digital Affairs Meutya Hafid highlighted additional efforts to curb online gambling, including the establishment of an online gambling eradication desk earlier this month. As of November 4, the desk has submitted 651 requests to freeze accounts connected to gambling activities. Hafid also noted that her department has successfully blocked over 104,819 gambling-related websites since its launch.

Since the new government under President Prabowo Subianto took office on October 20, around 380,000 gambling-related sites have been dismantled. Hafid emphasized the importance of collaboration with banks to narrow the operational scope of online gambling networks.

Addressing Student Involvement

In a related development, Higher Education Minister Satryo Soemantri Brodjonegoro revealed that approximately 960,000 students, spanning schools and universities, have engaged in online gambling. He announced plans to establish dedicated reporting channels within universities to help address this growing issue.

Brodjonegoro also instructed university leaders, including those under the Ministry of Religious Affairs, to actively prevent participation in online gambling among lecturers, students, and academic staff. Minister Nasaruddin Umar confirmed that rectors from institutions such as the State Islamic University and the State Institute for Islamic Studies have been involved in strategy discussions to tackle this problem.

A Nationwide Initiative

Indonesia, as the world’s largest Muslim-majority country, has taken a firm stance against online gambling. The recent measures, backed by Bank Indonesia and government ministries, underline a coordinated effort to eliminate gambling activities from the country. The crackdown reflects the urgency brought about by the newly elected government, which has prioritized the eradication of illegal gambling as part of its broader policy agenda.

Source:

BI to freeze bank accounts linked to online gambling“, ANTARA, November 24, 2024.

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Italy Pushes New Gambling Law Amid Malta’s Opposition

italy-defies-malta-and-forges-ahead-with-new-gambling-lawThe Italian government has confirmed its decision to move forward with its revamped gambling legislation, despite objections from Malta. This development marks a significant milestone in Italy’s effort to consolidate and reform its gambling regulations, with the new law expected to reshape the sector and generate substantial tax revenue.

Italy Dismisses Malta’s Concerns

Malta’s objections centered on several key areas of the proposed legislation, including the licensing requirements for B2B operators, restrictions on managing “skins” or secondary brands under a single license, and enhanced safeguards to prevent underage gambling. Malta argued that the new rules could create unnecessary barriers for operators and urged Italy to account for existing European licenses.

However, the Italian government dismissed these concerns, emphasizing the law’s adherence to EU principles. It clarified that B2B companies will not require separate concessions, as the term “service provider” applies only to operators offering direct services to consumers. Furthermore, Italy defended its approach to technological neutrality, stating that the measures governing websites and apps are identical, ensuring fair treatment across platforms.

“The proposed Technical Rules are adherent to the principles and EU law,” the Italian government asserted, adding that the new regulations aim to enhance consumer protections and ensure fair competition in the Italian gambling market.

Key Features of the New Law

The new legislation in Italy introduces significant reforms designed to streamline the gambling industry and prioritize responsible gaming. Key aspects include:

  • Licensing and Fees: Online gambling operators must pay a €7 million fee for a nine-year license. A concessionaire’s operating fee of 3% and a 0.2% levy on annual net revenues will also be implemented.
  • Player Protections: Stricter safeguards for young players aged 18 to 24, including mandatory monetary and session limits during account registration. Self-exclusion options and time-limit warnings will also be required.
  • Technological Neutrality: Equal treatment for websites and mobile apps, ensuring consistent regulatory standards across platforms.
  • Data Hosting Compliance: Gambling platforms must host IT infrastructure within the European Economic Area (EEA) to comply with EU data protection standards.

The reforms are expected to bring substantial economic benefits, with the Ministry of Economy and Finance (MEF) projecting that at least 50 operators will apply for licenses, generating €350 million in initial revenue.

Implications for the Industry

The new law signals a shift in Italy’s approach to gambling regulation, prioritizing sustainability and consumer protection while streamlining processes for operators. A dedicated department within the Agency of Customs and Monopolies will oversee gambling activities, ensuring compliance and managing the tender process for licenses.

Prime Minister Giorgia Meloni has endorsed the reforms, which aim to combat gambling addiction, protect minors, and support social initiatives through increased tax revenue. The Italian gambling sector, which raised €11 billion in 2022, is poised for further growth under the new framework.

Industry Response

While Malta’s objections led to a brief delay during the European Commission’s mandatory review period, the Italian government has remained steadfast in its position. With the upcoming issuance of licenses, the focus now shifts to how these reforms will impact operators and consumers alike.

The streamlined licensing process, coupled with robust player protections, sets the stage for a more responsible and transparent gambling environment in Italy. Industry stakeholders will be closely monitoring the rollout of the new concessions and their long-term effects on the market.

Source:

Italy to Go Ahead with New Gambling Law“, ICLG, November 21, 2024. 

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Lithuania to Ban Gambling Advertising by 2025

Lithuania-to-ban-gambling-adsThe Lithuanian parliament has approved new restrictions on gambling advertising, introducing sweeping changes to the country’s gaming landscape. Starting July 2025, gambling operators will no longer be able to advertise their services, with limited exceptions for sports sponsorships, broadcasts, and events. This decision follows strong public support for stricter gambling regulations, as highlighted by a November survey in which 52% of participants favored the ban.

The amendments to the Gaming Law passed with 73 votes in favor and one abstention. To mitigate the impact on media organizations, the government has allocated an additional €4 million to the Media Support Fund in next year’s budget to compensate for lost advertising revenue.

Transitional Measures for Sports and Media

Recognizing the potential disruption to specific industries, parliament included transitional measures to ease the ban’s implementation. Exceptions for sports sponsorships and advertisements during sports broadcasts will remain in place until January 1, 2028. Additionally, transitional provisions allow for limited advertising until the end of 2027.

  • Television, Radio, and Online Ads: Up to three betting advertisements under 15 seconds each will be permitted per hour from 06:00 to 18:00, and up to two per hour between 18:00 and midnight.
  • Online Media Restrictions: Gambling advertisements without direct links to operators’ websites will be capped at 20% of advertising space between 06:00 and 18:00 and 10% from 18:00 to midnight.

These measures are intended to balance the government’s aim of combating problem gambling with the economic interests of the media and sports industries.

Public and Industry Reactions

The government justified the move as a necessary step to address gambling-related harm, citing increased advertising during the COVID-19 pandemic despite earlier recommendations to reduce promotions. The Gaming Supervisory Authority has consistently reported concerns over the rise in problem gambling, with complaints regarding non-compliance with advertising guidelines.

Critics within the gambling industry argue that the ban may stifle economic growth and reduce gaming operator revenues. However, public sentiment has largely supported the decision, with many viewing it as a critical measure to curb gambling addiction and its social consequences.

As Lithuania prepares for these changes, the gambling sector faces significant adjustments. The transitional period offers operators and media outlets time to adapt to the new rules, while sports-related advertisements enjoy a longer exemption to ensure continuity in sponsorships and broadcasts.

Source:

Gambling Advertising Ban Passed by Lithuanian Parliament, lcb.org, November 18, 2024.

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