Belgium’s Gambling Revenue Grows by 16.7% in 2023 Despite Stricter Regulations

Belgium-reports-16.7_-rise-in-2023-GGR-despite-tighter-regulatory-controlsBelgium’s gambling market has shown remarkable resilience, with the Commission des Jeux de Hasard (CJH), the country’s gambling regulator, reporting a 16.7% increase in gross gaming revenue (GGR) for 2023. The total GGR for the year reached €1.7bn (£1.5bn/$1.9bn), a significant rise from €1.5bn in 2022, despite the Belgian government imposing tougher restrictions on the sector.

Growth in Online and Offline Markets

The surge in GGR was driven by robust performance across both online and offline gambling sectors. Online gambling GGR grew by 18% to €944.6m, demonstrating the increasing shift towards digital platforms. Meanwhile, offline gambling also saw substantial growth, with GGR reaching €758m, a 15.2% year-on-year increase.

This growth comes in the face of heightened regulations introduced by the Belgian government. Since 2022, operators have been required to enforce a weekly loss limit for players, which was reduced from €500 to €200. Further tightening occurred in mid-2023, when a ban on all gambling advertising came into effect on July 1, following an unsuccessful attempt by a consortium of Belgian sports teams and operators to overturn the decision.

Casino Sector Leads the Charge

Belgium’s casino sector was a standout performer in 2023, with GGR increasing by 18.7% to €594.9m. This growth was largely fueled by a 20.2% rise in online casino revenue, which reached €455m. Although brick-and-mortar casinos did not match the growth rate of their online counterparts, they still reported a 14.3% increase in GGR, totaling €139.9m.

Among the nine land-based casinos in Belgium, Grand Casino Brussels, operated by Casinos Austria International, led the market with an offline GGR of €52.5m. Circus Casino Resort Namur followed with €22.5m. However, Casino Blankenberge, acquired by Kindred Group in 2020, was the only venue to report a year-on-year decline in GGR.

Mixed Results for Slot Arcades and Sports Betting

Slot arcades also saw strong growth, with GGR rising by 17.3% to €437m. Online activity was a key driver, accounting for 57.7% of slot hall revenue and growing by 19.4% to €252m. In-person slot arcade GGR increased by 14.5% to €184.9m.

In contrast, the sports betting sector experienced more modest growth, with GGR increasing by 8.4% to €390m. Online sports betting remained dominant, contributing 60.9% of the sector’s total GGR and growing by 12.8% to €237.6m. Revenue from betting shops grew at a slower pace, rising by just 2.3% to €152.4m.

The CJH noted that ten of the 24 licensed operators were responsible for 96% of offline bets and 94% of online wagers, highlighting the concentration of the market. Despite there being 30 available licenses, only 24 were in use throughout the year.

Newsagents Hit Hard by New Regulations

The only sector to experience a significant decline was betting at newsagents. New restrictions imposed in 2022 limited betting hours to between 6 AM and 8 PM and capped annual stakes per newsagent at €250,000. These measures led to a 26.3% drop in GGR for newsagents, resulting in 21 refusals of license renewals, 82 licensees not seeking renewal, and 151 ceasing operations altogether. By the end of 2023, only 1,484 newsagents were still active, down from 1,580 at the end of 2022.

Ongoing Regulatory Changes

The Belgian government continues to implement new regulations aimed at tightening control over the gambling industry. From September 1, 2024, the legal gambling age in Belgium will increase from 18 to 21 years old. These changes have raised concerns about the potential impact on channelization towards legal markets, with Belgium-based operator Gaming1 warning in an April report that the ongoing regulatory shifts could drive more players to unregulated platforms.

Source:

Belgium reports 16.7% rise in 2023 GGR despite tighter regulatory controls, igamingbusiness.com, August 12, 2024. 

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Brazil’s Senate Delays Gambling Bill Vote Until After Elections

Brazil-casinos-and-gaming-Senate-vote-could-be-delayed-until-OctoberThe push to legalize gambling in Brazil faces another delay as Senate President Rodrigo Pacheco (PSD-MG) signals he is in no rush to bring the bill to the plenary. The legislation, which seeks to legalize casinos, bingo, jogo de bicho, and betting on horseracing, will likely be postponed until after the first round of municipal elections in October.

Prioritizing State Debt and Tax Relief

Allies of Pacheco have confirmed that his immediate priorities are the renegotiation of state debts and compensation for payroll tax relief. These issues were highlighted as top priorities by President Luiz Inácio Lula da Silva (PT) during a recent meeting with the senator. Consequently, the gambling bill, already approved by the Chamber of Deputies, will take a backseat until these fiscal matters are addressed.

The delay is also influenced by significant pressure from the evangelical bench, which has prepared studies to dissuade senators from supporting the legalization of gambling. The evangelical group argues that gambling could increase addiction rates in the country and raise moral concerns. Additionally, the Ministry of Justice has expressed fears that the measure could facilitate money laundering activities.

Despite these concerns, President Lula has shown a favorable stance towards the bill, indicating his readiness to sanction it if passed by the Senate. The bill is supported by both the economic team and the political wing, with long-term projections suggesting that the legalization of gambling could generate up to R$22 billion in revenue for the federal government.

Upcoming Thematic Debate

A thematic debate on the gambling bill is scheduled for Thursday, August 8, chaired by Senator Irajá Abreu. This session aims to address remaining points of contention, including the strengthening of measures to prevent organized crime and money laundering. If the debate results in a decision to proceed, the bill could be voted on the following week. Otherwise, the vote will be deferred to after the municipal elections on October 6.

This delay occurs as Brazil progresses towards launching its regulated sports betting and iGaming market, expected to commence on January 1, 2025. The Ministry of Finance’s Secretariat of Prizes and Bets (SPA) has published final regulations clarifying which online games will be allowed and detailing monitoring, inspection, state allocations, responsible gambling, and sanctions.

While some see the postponement of the gambling bill vote as a setback, it underscores Brazil’s legislative bodies’ cautious approach to balancing economic benefits with social responsibility.

Sources:

Pacheco não tem pressa para pautar PL dos jogos de azar.”, cnnbrasil.com.br, August 7, 2024.

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Denmark’s Gambling Revenue Grows by 37% in June 2024, Boosted by Sports Betting

Euros-and-icasino-drive-Denmark-gambling-revenue-up-37_-in-JuneDenmark’s gambling market experienced a significant boost in June 2024, with total revenue increasing by 37.0% year-on-year to DKK703m (£81.1m/€94.2m/$103.0m), according to the latest figures from the Danish Gambling Authority, Spillemyndigheden. This growth was largely driven by a substantial rise in sports betting, which saw a notable increase during the Euro 2024 football tournament.

Sports Betting Leads the Growth

Sports betting emerged as the standout performer in Denmark’s gambling sector for June, with revenue soaring by 75.7% year-on-year to DKK271m. A significant portion of this, 64.1%, came from mobile betting, reflecting the growing trend of wagering via smartphones and other mobile devices. The Euro 2024 tournament, which began on 14 June and ran into mid-July, was a major driver of this increase. Although Denmark’s national team was eliminated in the round of 16 after a 2-0 loss to hosts Germany, the tournament still generated significant betting activity.

Online Casino Revenue Nears Record Levels

While sports betting was the highlight of June, online casinos remained the largest contributor to Denmark’s overall gambling revenue. Online casino revenue reached DKK303m, marking a 27.2% increase from the previous year. This figure was just shy of the record DKK310m reported in March 2024.

Slots continued to dominate the online casino segment, accounting for 76.4% of the total online casino revenue in June. Roulette contributed 6.7%, while blackjack accounted for 6.6%. Bingo also made a contribution, generating 3.9% of the gross gaming revenue (GGR) for the online casino vertical.

Retail Gambling Sees Modest Gains

Denmark’s retail gambling sector also saw growth in June 2024. Revenue from physical slot machines rose by 6.6% to DKK97m. Of this total, 79.2% came from gambling halls, with the remaining 20.8% generated by slot machines in restaurants.

Land-based casinos, another key component of Denmark’s gambling market, reported DKK32m in revenue for June, representing a 7.1% year-on-year increase.

Self-Exclusion Statistics Highlight Responsible Gambling Efforts

In addition to the revenue figures, Spillemyndigheden released data on self-exclusion through the Rofus platform. As of June 2024, a total of 50,403 individuals in Denmark have self-excluded from gambling. This includes 33,511 people who have opted for lifetime exclusion and 16,892 who have chosen temporary exclusion. The country’s gambling support helpline, StopSpillet, also recorded 32 calls in June, primarily from men aged between 26 and 35.

Source:

Euros and icasino drive Denmark gambling revenue up 37% in June, igamingbusiness.com, August 8, 2024.

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Is Australia Considering Adjustments to Proposed Gambling Ad Ban?

Australian-government-expected-to-water-down-Murphys-law-gambling-ad-banA series of media reports have indicated that the Australian government is preparing to announce its response to the 2023 Murphy Report. However, it appears that the comprehensive ban on gambling advertisements recommended by the report is unlikely to be fully implemented. The government is expected to introduce a less stringent version of the ban, informally known as “Murphy’s law,” in memory of the late MP Peta Murphy, who championed these reforms.

The proposed restrictions include a cap of two gambling ads per hour until 10 p.m. and a prohibition on gambling advertisements one hour before and after live sports broadcasts. These measures reflect a compromise intended to balance public concern over gambling promotions with the interests of the media industry.

Current Status of the Proposal

Jamie Nettleton, a partner at the gaming law firm Addisons, shared his insights with iGaming Business, suggesting that the government may be cautious about alienating media organizations. “The government’s final stance on the issue remains uncertain,” Nettleton noted. “These proposed restrictions are currently in the draft stage and have not yet gone to cabinet, so there is no clear timeline for implementation.” The government is expected to release its response in the coming weeks, with the understanding that any changes would need to be enacted through legislation filed in parliament.

Focus Shifts to Online Gambling Ads

The initial report by the House of Representatives Committee on Social Policy and Legal Affairs, published in June 2023, called for a complete ban on all gambling advertisements within three years. This would cover both broadcast media and online platforms. The report was authored by MP Peta Murphy, who sadly passed away in December last year.

As it stands, online gambling ads might also face restrictions, particularly on commercial radio, where ads could be banned during specific time slots, such as from 8:30 a.m. to 9 a.m. and from 3:30 p.m. to 4 p.m. A full ban on online advertising is still a strong possibility, which Nettleton believes could significantly impact affiliates and influencer marketing. “The sector has known this was coming and has been working to put restrictions in place for some time,” Nettleton explained.

Meetings between the government, sports organizations, gambling stakeholders, and media entities have been ongoing. However, there is still uncertainty surrounding the implications for sports advertising, including jersey sponsorships and on-field promotions. According to Nettleton, these aspects have not yet been clearly addressed.

Reactions to the Proposed Restrictions

The government’s revised approach has sparked reactions from various quarters. Independent senator David Pocock criticized the watered-down version of the restrictions on August 6. Pocock questioned why there had been a shift from the initial support for a total ban to the current, more lenient proposals.

“A phased-in gambling ad ban would destroy sport – where have we heard that before?” Pocock expressed in a post on X. “What a total cop-out & betrayal of the late Peta Murphy’s legacy. There is support in the parliament to implement the Murphy Review recommendations in full – not some watered-down policy to appease the gambling industry.”

Industry Adjustments to Advertising Practices

In response to the evolving regulatory landscape, some Australian gambling operators have begun to adjust their advertising strategies. Betting operator Tabcorp, for instance, had initially backed the reduction of gambling advertising in its submission to the Murphy Report last year.

Similarly, PointsBet has taken steps to curtail its gambling advertising. The company no longer displays ads on free-to-air television between 6 p.m. and 9:30 p.m. Additionally, PointsBet is withdrawing its branding from stadiums and sports team jerseys, meaning sponsorship agreements with teams like the Manly Sea Eagles and Cronulla Sharks will be terminated by 2025.

As the Australian government continues to deliberate on its final response to the Murphy Report, the gambling industry awaits a clear direction on how these proposed changes will reshape the landscape of gambling advertising in the country.

Source:

Australian government expected to water down “Murphy’s law” gambling ad ban, igamingbusiness.com, August 6, 2024.

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New Study Reveals Gambling as Coping Mechanism in Marginalized Communities

GambleAware-analyses-links-between-gambling-and-marginalised-groupsA recent study funded by GambleAware has shed light on the troubling trend of marginalized and socially excluded communities in the UK using gambling as a means to cope with their difficult circumstances and loneliness. Conducted by The National Centre for Social Research (NatCen), the analysis reviewed 138 previous studies to understand the impact of gambling on these vulnerable groups.

The study focused on several groups, including those experiencing or at risk of homelessness, older individuals, people living with disabilities, neurodiversity or mental health challenges, criminalized communities, and migrants in vulnerable situations like asylum seekers. Despite their varied backgrounds, these groups share a common thread: the use of gambling to alleviate stressors caused by social exclusion and discrimination.

Underlying Issues and Coping Mechanisms

The research highlighted that individuals from these marginalized communities often turn to gambling to escape from issues such as loneliness, mental health struggles, stress from migration and assimilation, unemployment, job insecurity, and poverty. Gambling was perceived as a temporary distraction or a potential way to escape financial hardships.

Another significant finding was the disproportionate number of gambling venues located in deprived areas of Great Britain. People from marginalized and isolated communities are more likely to reside in these areas due to socioeconomic disenfranchisement, thus increasing their exposure to gambling opportunities.

Stigma emerged as a crucial factor affecting these communities’ gambling behaviors and their willingness to seek support. Many already face stigma related to drug use, homelessness, or mental health issues, which intersects with the stigma associated with gambling harms. This compounded stigma often prevents individuals from seeking necessary help.

Calls for Accessible and Inclusive Treatment Services

The report calls for gambling treatment services to be more accessible, inclusive, and adaptive to meet the needs of marginalized communities. It also emphasizes the need for further research to understand the specific gambling harms experienced by these groups better and to develop effective support mechanisms.

GambleAware has been proactive in addressing these issues, launching initiatives like the “Improving Outcomes for Women and Minority Communities Affected by Gambling Harm” fund. This £4 million program supports 25 organizations across Great Britain, such as Investing in People and Culture and the Flowhesion Foundation, to help ethnically diverse and vulnerable communities tackle gambling harms.

Natalie, an individual who has experienced gambling harm and homelessness, highlighted the challenges faced by those without stable housing. “To break free from gambling harm, you need to have a safe place to live. If you don’t have shelter, it makes trying to recover so much harder, and it can be difficult to access support without a permanent address. We need improved ease of access for accommodation and support, and to ensure sufficient housing options are available for people experiencing disadvantage from addiction.”

Expert Insights

Dr. Sokratis Dinos from NatCen’s Centre for Gambling Research emphasized the findings’ significance: “The results show how vulnerability to gambling harms for some people in these communities will be driven by compounding inequalities, stigma, exclusion, and discrimination.” He added that the report critically appraises existing evidence on gambling harms among marginalized communities, underlining the urgent need for targeted interventions and further research.

Sources:

New study finds that socially excluded communities use gambling to cope with discrimination, loneliness and other problems, gambleaware.org, July 30, 2024.

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