Australia’s Greens Introduce Bill to Ban Gambling Ads Nationwide

Australias-Green-party-files-blanket-gambling-ad-ban-bill-government-response-to-Murphy-Report-due-by-end-of-yearAustralia’s Greens party has intensified its campaign to end gambling advertising by introducing a bill to the Senate that seeks a complete ban on gambling ads across all forms of media. The Ban Gambling Ads Bill, championed by Greens Senator Sarah Hanson-Young, aims to prohibit gambling promotions on TV, radio, print, and online platforms. This follows increasing public pressure and growing political debate over the impact of gambling on Australian society.

Push for Comprehensive Advertising Ban

The proposed legislation, introduced on October 9, calls for a blanket ban on gambling advertisements in a bid to reduce gambling-related harm. This initiative builds upon the 2023 Peta Murphy Inquiry, which recommended a full prohibition on gambling ads to tackle the proliferation of betting promotions and the harm they can cause. According to Senator Hanson-Young, the Greens party’s bill seeks to address the concerns of Australians who are “sick of having gambling ads rammed down their throats during family time.”

“Problem gambling ruins lives, and Australians lose more per capita to gambling than anywhere else in the world,” Hanson-Young said while presenting the bill. “The evidence is clear: gambling ads cause significant harm, and they must be banned, just like tobacco ads.”

The Greens’ push for a ban comes as the Australian government has been considering its response to the Murphy Report’s 31 recommendations, which were published in June 2023. The report, named after the late Peta Murphy MP, included calls for the introduction of a gambling ombudsman, a harm-reduction levy, and tighter national regulations for the gambling industry.

Despite widespread public support for the recommendations, the federal government has been slow to act, with Communications Minister Michelle Rowland stating that an official stance on gambling ads would not be announced until the end of 2023. The government faces only a few remaining parliamentary sitting weeks this year to discuss the issue further.

Political Debate and Industry Concerns

The debate surrounding gambling advertising has seen politicians across party lines weigh in on the issue. Prime Minister Anthony Albanese previously expressed reservations about a full ban, suggesting that campaigners were more focused on banning gambling outright rather than just the ads. In September, he publicly dismissed calls for a total prohibition, stating that such measures might be “the easy option” but not necessarily the most effective in addressing gambling addiction.

On the other hand, addiction charities, some politicians, and various advocacy groups have voiced strong support for the Greens’ bill. They argue that a comprehensive ban is essential to curb what they describe as a “flood” of gambling ads that encourage risky betting behavior. A recent public poll indicates that 7 in 10 Australians favor banning these ads, underscoring the growing frustration among the public.

However, media agencies and gambling operators have warned that such a ban could have significant economic consequences, particularly for free-to-air broadcasters and affiliates who rely on gambling advertisements for revenue. Bill Shorten, a government minister, defended the media’s position, claiming that banning gambling ads would severely undermine Australia’s free-to-air channels.

Hanson-Young responded to these concerns during her Senate speech, arguing that Australia’s media should not rely on revenue generated by promoting gambling addiction. “We’re in real trouble if our national media has to rely on gambling ads to survive,” she stated.

Impact on Industry and Affiliates

The potential advertising ban is also raising concerns within the gambling industry, particularly among affiliates who have traditionally relied on paid media channels to promote betting offers. Should the bill pass into law, it would close off major customer acquisition avenues such as TV, radio, and online ads, putting affiliates under pressure to adapt their strategies.

Affiliates may face limitations in driving traffic to gambling platforms, and there is uncertainty over whether content-based marketing, such as sports blogs or review sites with affiliate links, would be impacted by the ban. Some industry experts suggest that affiliates may need to shift their focus to more organic growth strategies, such as creating in-depth reviews and responsible gambling content.

Despite the potential challenges, proponents of the ban argue that the risks posed by unchecked gambling ads outweigh the economic concerns raised by media companies and affiliates.

What’s Next for the Ban Gambling Ads Bill?

The Ban Gambling Ads Bill is currently in its second reading in the Senate. If it passes this stage, it will enter the Senate committee phase, where the details of the proposed legislation will be scrutinized further. The bill may be referred to a committee inquiry for more in-depth analysis before the wider Senate votes on its final form.

For the bill to become law, it must receive royal assent after passing through the Senate and House of Representatives. Given the limited number of parliamentary sessions left this year, it remains to be seen whether the bill will progress before the year’s end.

As the debate continues, all eyes are on the Australian government to see how it will handle the growing public demand for tighter restrictions on gambling ads, and whether the Greens’ proposal for an outright ban will succeed.

Source:

Australia’s Green party files blanket gambling ad ban bill, government response to Murphy Report due by end of year , igamingbusiness.com, October 11, 2024.

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Dutch Gambling Market Sees Growth Amid Channelisation Concerns

Dutch-gaming-revenue-up-21_-in-2023-as-regulator-claims-95_-channelizationThe Dutch Gambling Authority (Kansspelautoriteit or KSA) has reported significant growth in the regulated gambling market, with the market’s gross gaming revenue (GGR) increasing by 21.2% in 2023, reaching €4 billion. However, the KSA has also raised concerns regarding the country’s channelisation rate, which measures the proportion of gambling activity conducted through legal operators. While some estimates put the rate as high as 95%, other data suggests it may be closer to 87% due to higher player spend on illegal sites.

Conflicting Channelisation Data

Two new reports released by the KSA on October 10, 2024, provide detailed insights into the current state of the Dutch gambling market. The Autumn 2024 Monitoring Report, which relies on data from research firms GfK and H2 Capital, estimates that the channelisation rate ranges between 87% and 95%, surpassing the initial target of 80% set in 2021.

According to GfK data, 95% of players only visited legal gambling sites during the first half of 2024. However, a second analysis, which considers revenue and player spend across both legal and illegal platforms, suggests the channelisation rate is closer to 87%. This method accounts for the fact that players tend to wager and lose more money on illegal gambling sites, which remain attractive due to the lack of regulatory oversight.

KSA Chairman Michel Groothuizen commented on the findings, saying, “The stricter we regulate, the greater that difference can become.” He added that while the 95% channelisation rate is commendable, the issue of illegal gambling remains a concern as it often involves higher player spending.

Market Growth and Player Behaviour

The KSA’s Market Scan 2024 report shows that the Dutch gambling market has continued to expand, particularly in the online casino sector. Online casino games, including table games and slots, accounted for 27.25% of the total GGR in 2023, generating €1.09 billion. This represents a 34% year-on-year increase compared to 2022. Land-based casinos, while recovering, have not yet reached pre-pandemic levels, with a 19% growth to €250 million in 2023.

Player spending in the Netherlands remains below the European average. Dutch adults spent an average of €272 per capita on gambling in 2023, compared to the EU average of €339. The Netherlands ranks just above Ireland but behind countries like Finland, France, and Denmark in terms of gambling expenditure.

Despite concerns about channelisation, data from the first half of 2024 indicates continued growth in the legal market. The GGR for the first six months of 2024 reached €752 million, an 8% increase from the second half of 2023. This growth was partly driven by an increase in sports betting during major events like the European Championship.

Sports Betting and Other Sectors

Sports betting remains a relatively small portion of the Dutch gambling market, contributing only 9% to the total GGR. Despite this, revenue from sports betting has more than tripled since the legalization of online gambling in 2021. The majority of sports betting revenue—83%—comes from online platforms, with land-based betting accounting for only 17%, largely controlled by Dutch monopolies like Zeturf and TOTO Winkel.

Lotteries continue to hold a significant share of the Dutch gambling market, maintaining a 30% market share in 2023, down slightly from 34% in 2022. This sector is entirely land-based, with no legal online lottery options currently available.

Future Outlook and Tax Concerns

Looking ahead, the Dutch gambling market is expected to face increased challenges due to a forthcoming tax hike. In January 2026, the gambling tax rate will rise from 30.5% to 37.8% of GGR, a move that has sparked concern and opposition within the industry. Although the government plans to introduce the tax increase gradually, operators fear that the higher tax burden could drive more players to unregulated, illegal platforms.

In 2023, Dutch gambling operators paid €117 million in taxes, alongside €698 million in charitable contributions. KSA Chairman Michel Groothuizen emphasized that the KSA will continue to monitor the effects of policy changes, including the impact of the tax hike, through future reports. He expressed curiosity about the upcoming findings in the next monitoring report due in spring 2025, which will further inform regulatory decisions.

Source:

State of affairs of the Dutch gambling market 2023-2024“, kansspelautoriteit.nl, October 10, 2024.

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Irish Senate Debates Total Ban on Gambling Bonuses

Irish-senators-push-to-reintroduce-full-ban-on-bonusesThe debate over Ireland’s Gambling Regulation Bill 2022 is intensifying, with Senators Lynn Ruane and Alice Mary Higgins advocating for a total ban on gambling bonuses as the bill nears final approval. The original version of the bill had included a blanket prohibition on such bonuses, but recent amendments have altered this, allowing operators to offer free bets.

The bill, which has now entered the final stages of review in the Senate (Seanad Éireann), will soon advance to the report stage, after which it is expected to become law. During this process, multiple amendments have been introduced and debated. One notable change, made in May during discussions in the lower house (Dáil Éireann), adjusted the ban to permit free bets, albeit without targeted marketing.

Ruane Pushes for Stronger Restrictions

Senator Ruane, during the Senate debate on October 2, pushed to restore the bill’s original language, seeking to prohibit all forms of bonuses and inducements. She argued that such offers, including free bets, can be harmful to younger and more vulnerable individuals. Ruane emphasized that these inducements act as a gateway into gambling, particularly for youth, and noted examples from other sectors where similar incentives have been banned.

“These types of inducements are an entry point into gambling for young people. There are clear examples of inducements being banned in different contexts,” Ruane stated, pointing to restrictions in Ireland’s national lottery, alcohol sales, and tobacco products as comparable regulatory actions. According to her, the current version of the bill remains “unbalanced” and fails to sufficiently protect players, especially younger ones, placing the burden of responsibility on operators rather than individuals.

Supporting this stance, Senator Mark Wall expressed concern over how these regulations, especially in relation to free bets, would be enforced. He questioned the ability of regulators to closely monitor compliance. “For the life of me I cannot see why [the minister]

has to introduce free bets and inducements. We want to protect the most vulnerable. We have to do so,” Wall argued, advocating for a complete prohibition as the only way to truly protect those at risk.

Concerns Over the Impact on Legal Operators

However, not all senators are in agreement. Senator John McGahon raised concerns that a blanket ban could drive gamblers to unregulated, black-market operators, where they could be exposed to even riskier practices. He argued that restricting bonuses and free bets among licensed operators may backfire, leading consumers to seek these offers elsewhere.

McGahon also highlighted the competitive challenges that legal operators would face if such restrictions were implemented. “Without the ability to communicate directly with potential customers, gambling companies are left at a significant competitive disadvantage,” he explained, noting that other industries, such as entertainment and digital services, engage in aggressive marketing to similar audiences. The senator underscored that maintaining some level of engagement between gambling companies and players is vital for keeping the market balanced and preventing an exodus to illegal platforms.

Minister James Browne Faces Pressure from Both Sides

Deputy James Browne, who has been overseeing the bill’s development, finds himself at the center of this heated debate. Browne, who does not support a complete ban on gambling bonuses, reiterated that while restrictions are necessary, completely outlawing promotions would be unrealistic. He acknowledged the difficulties in managing both sides of the argument but remained firm in his decision to allow free bets under the bill’s current framework. “I do not support the complete ban of all promotions in the gambling industry,” Browne stated, rejecting Ruane’s proposed amendment.

Despite ongoing criticisms, Browne has defended the revised approach as a balanced solution, allowing for free bets while avoiding targeted inducements that could exploit vulnerable players. The final wording of the bill will soon be finalized as the legislative process draws to a close.

As Ireland moves closer to passing this significant piece of gambling legislation, the debate highlights the ongoing struggle between player protection and industry competitiveness. Whether the proposed amendments will further shape the bill remains to be seen, but the future of gambling regulation in Ireland hangs in the balance.

Source:

Irish senators push to reintroduce full ban on bonuses, igamingbusiness.com, October 7, 2024.

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New Online Gambling Deposit Rules in the Netherlands Starting October 2024

Online-deposit-limits-come-into-force-in-NetherlandsAs of October 1, 2024, Dutch online gamblers are subject to a new set of stringent deposit rules to promote responsible gambling. The measures are part of the Netherlands’ ongoing efforts to ensure player protection, particularly focusing on deposit limits and encouraging self-awareness among players about their gambling behavior.

The newly introduced rules include strict thresholds on monthly deposits, particularly limiting the net deposit amounts players can make. For adults, the limit is set at €700 per calendar month, while for young adults aged 18 to 25, this threshold is significantly lower at €300. Once a player reaches these limits, they are temporarily barred from making further deposits until the start of the next calendar month. These automatic resets aim to prevent overspending and reduce gambling-related risks.

New Rules on Setting Personal Deposit Limits

In addition to the mandatory deposit thresholds, the new regulations require that players set personal deposit limits when registering with an online casino. If a player attempts to set a limit higher than €350 per month (or €150 for young adults), they must engage in a mandatory contact moment with the operator. This interaction, conducted via phone or chat, serves to inform players about the risks of excessive gambling and to direct them to available resources for support, such as the national self-exclusion system, Crucks.

Players who exceed their deposit limits will also encounter pop-up notifications that provide real-time feedback on their gambling behavior. These messages, appearing every 30 minutes during gameplay, remind them how long they have been playing and indicate when they are halfway to their pre-set limit. The regulations are designed to raise awareness of responsible gaming practices and promote safer gambling experiences for all users.

For those who wish to increase their deposit limits beyond the established threshold, proof of financial stability is required. Players can share income statements with operators to verify their ability to manage higher spending limits, with a general guideline being that players can deposit up to 30% of their net income. However, this is not a mandatory process—players can wait until the start of the next month to reset their limits.

Industry Response and Impact on Operators

The Dutch gambling trade association, VNLOK, has voiced its support for the new measures, emphasizing their role in ensuring a safer gambling environment. “VNLOK members have already taken extra-legal measures to provide additional protection for players,” said VNLOK chair Helma Lodders, pointing to previous efforts such as the Online Gambling Advertising Code and stricter limits for young adults. According to Lodders, these measures align with VNLOK’s goal of maintaining a responsible and regulated market.

However, concerns have been raised by industry experts regarding the potential financial strain these regulations might place on operators. Gambling lawyer Alan Littler warned that the increased operational costs associated with implementing these rules, alongside the anticipated decline in consumer spending, could make it more challenging for companies to do business in the Dutch market.

Adding to this, the Dutch government has approved a series of tax hikes for gambling operators, with the gambling tax rate set to rise from 30.5% to 34.2% in 2025 and reaching 37.3% by January 2026. This additional financial burden, combined with tighter regulations, has raised fears that some players may turn to illegal gambling sites that do not adhere to such strict guidelines. VNLOK also acknowledged this concern, with Lodders stating, “Well-intentioned measures can thus have a counterproductive effect,” pointing out that over-regulation may lead to the unintended consequence of driving consumers to unlicensed platforms.

Future Regulatory Changes on the Horizon

Looking ahead, the current Dutch Remote Gambling Act is undergoing an evaluation by the country’s gaming regulator, Kansspelautoriteit (KSA), which is expected to conclude by the end of October. This review will assess the effectiveness of the existing laws and could lead to further amendments. Depending on the findings, additional regulatory changes may be introduced, raising concerns about their implications for both operators and players.

Meanwhile, several companies in the Netherlands gambling sector are developing solutions to help operators comply with these new rules. For example, I-Finance Services has introduced an Affordability Check tool to verify players’ income data, and Bluem launched its Budget Check system, which allows for income verification without giving casinos full access to players’ financial accounts. Trustly has also announced plans for a KYC solution to assist online casinos in adhering to the new regulations.

Source:
VNLOK, vnlok.nl, October 1, 2024.

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Sweden’s Online Gambling Channelization Rate Reaches 86% in 2023

Sweden-channelisation-rate-at-86_-according-to-Spelinspektionen-reportThe Swedish gambling regulator Spelinspektionen has announced that the country’s channelization rate for the online gambling market has reached 86% for 2023, reflecting an improvement over the 77% recorded the previous year. This figure exceeds the forecasts made by several operators, including Aktiebolaget Trav och Galopp (ATG), which had predicted the rate would fall between 69% and 82%.

Channelization: Progress and Challenges

Channelization refers to the percentage of players who participate in gambling through licensed, regulated operators. A high channelization rate indicates more players opting for legal platforms over unlicensed, offshore options. However, even with the rise to 86%, Spelinspektionen faces challenges from unregulated markets. The regulator estimates that unlicensed sites generated SEK2.5 billion (€220.2 million) in 2023 compared to SEK17.3 billion for licensed operators. This figure, however, assumes equal betting amounts on licensed and unlicensed platforms, a variable Spelinspektionen admits could differ.

Data gathered from surveys of 4,000 Swedish players between June and July 2023 was instrumental in determining the channelization rate. Among the respondents, 97% reported gambling with a licensed operator in their most recent session, while 83% of total wagers were placed on regulated websites.

Licensed platforms dominated the sports betting sector, attracting 99% of players and 97% of wagers. However, the online casino sector saw lower rates, with 96% of players using licensed websites and 79% of total wagers placed on these platforms.

Skin Betting and the Black Market

While overall channelization improved, the growing issue of skin betting—using in-game virtual items as currency for illegal gambling—remains a concern for Spelinspektionen. When including skin betting in the data, licensed gambling visits represented only 73%, a drop from 84% when excluding this form of betting. In fact, 49% of all visits to unlicensed websites involved skin betting.

Efforts to curb black market activity remain critical, as Spelinspektionen reported that 24% of visits to unlicensed gambling sites were tied to commercial online gaming, while 20% were related to online gambling. The regulator aims to further understand the factors driving players to these platforms.

Mixed Estimates from Operators and External Data

Other figures have also provided varying estimates of Sweden’s channelization. For instance, data from H2 Gambling Capital suggested a higher rate of 92% for 2023. H2 also reported that 93% of online betting turnover came from licensed platforms, with online casinos recording a slightly lower rate of 87%. This data offers a more optimistic outlook compared to the regulator’s figures, but it underscores the complexity of assessing channelization due to differing methodologies.

Meanwhile, reports from the Swedish Trade Association for Online Gambling (BOS) have been critical of the country’s current regulatory framework, which they argue limits the competitiveness of licensed operators. According to BOS, channelization for the overall market stood at 77%, and even lower—at 72%—for the online gambling sector. Some operators, including ATG, believe the actual channelization rate may be even lower, suggesting it could be between 57% and 72% for certain segments of the market.

Regulatory Response and Looking Ahead

Despite the ongoing challenges, Spelinspektionen remains focused on ensuring that Sweden’s licensed gambling market continues to capture a larger share of activity. However, the regulator acknowledged that the 86% rate could potentially be lower, depending on differences in player spending on licensed versus unlicensed sites. If turnover per visit is significantly higher on unlicensed platforms, the rate could drop as low as 78%.

Camilla Rosenberg, Spelinspektionen’s director general, emphasized the importance of diverse methodologies in assessing channelization. In a translated statement, she noted, “The results show that the degree of channeling varies depending on the method and form of play. The SGA believes there are four different indicators that together can give a picture of the degree of channelization.”

Spelinspektionen continues to monitor the impact of unlicensed operators and hopes to study the black market further to understand its growing influence. As the regulator collects more data for 2024, it aims to solidify the progress made in channeling Sweden’s gambling market and reducing the reach of unregulated platforms.

Source:

Redovisning Av Uppdrag Fi2023_03130: Den Offentliga Kontrollen Over Spelmarknaden, Spelinspektionen [pdf], October 2024.

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