market

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

paraguay_moves_to_end_gambling_monopoly_as_bill_to_amend_law_partially_approved Paraguay 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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Filed Under: Gambling News Tagged With: advances,, competition, Gambling, market, monopoly, paraguay

Aviatrix Enters Italian Market with New Certificate, Set to Partner with Leading Operators

Aviatrix-flying-in-Italy-following-certificate-approval Aviatrix, the innovative crash game known for its player-centric engagement features, is making its way into the Italian iGaming market following the recent approval of its Italian gaming certificate. This certification, granted by the Agenzia delle Dogane e dei Monopoli (ADM), enables Aviatrix to partner with licensed operators across Italy, bringing a fresh and engaging experience to Italian casino enthusiasts. The game’s launch represents a significant milestone, as it introduces Italian players to Aviatrix’s distinctive combination of NFT-based mechanics and customizable features tailored to enhance player interaction and retention.

Anastasia Rimskaya, Chief Account Officer at Aviatrix, expressed her excitement about the expansion, stating, “We are excited to be bringing Aviatrix to players in Italy for the first time. This is a market where innovation and player engagement are highly valued, so we’re certain our product will be a great fit. And more than that, we have an opportunity to play a central role in one of Europe’s most vibrant online gaming cultures. We can’t wait to get started with operators in the country.”

A New Kind of Game for the Italian Market

Aviatrix has quickly gained traction in various regulated markets, thanks to its unique approach that combines crash game mechanics with NFT-based features. This allows players to engage more deeply, with options for customization that make each game session unique. By tapping into Italy’s structured and transparent gaming environment, Aviatrix hopes to capture the interest of a market known for its high standards in online gaming experiences. Italian operators, who prioritize games that offer both innovation and compliance, are likely to benefit from Aviatrix’s arrival, as it adds to the growing diversity in the country’s online casino offerings.

The Italian online gaming industry has a longstanding reputation for strong regulation, fostering player trust and attracting reputable international operators. With a solid framework designed to ensure fairness and security, Italy has become a leading market for regulated online casinos. This environment is expected to make Aviatrix’s innovative features particularly appealing to Italian players who appreciate new and interactive gaming experiences.

Recognized for Excellence in the iGaming Industry

Aviatrix’s entry into Italy comes on the heels of several prestigious awards, underscoring the game’s growing reputation in the iGaming industry. Among its achievements, Aviatrix earned the title of “Hackathon Winner” at Binance Smart Chain, “Unique Selling Point” at the SiGMA Awards, and “Emerging Startup of the Year” at the SPiCE India Awards. These accolades reflect Aviatrix’s dedication to creating a distinctive and enjoyable gaming experience for players, as well as its commitment to technological innovation in the online gaming sector.

With this strong foundation, Aviatrix’s debut in Italy marks an exciting chapter for both the game and the Italian gaming community. By partnering with respected operators in a market that values regulatory compliance and innovation, Aviatrix aims to make a lasting impact on Italy’s online gaming culture.

Sources:

LinkedIn, November 6, 2024.

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Filed Under: Gambling News Tagged With: aviatrix, certificate,, enters, italian, leading, market, operators?, partner

Finland Advances Gambling Reform, Adding Horse Racing to Competitive License Market

Finland-sends-gambling-regulation-to-EC-licensed-operators-can-offer-horseracing-betting The Finnish government has approved a significant reform to its gambling system, marking a shift away from the state monopoly model as it prepares to introduce a competitive licensing structure. Announced on November 1 by Finland’s Economic Policy Committee, this reform includes the addition of horse racing betting to the competitive market, aligning it with other forms of licensed sports betting. Under this new framework, the state-run Veikkaus Oy will maintain its monopoly over lotteries and physical gaming machines, while a license-based system will govern betting, online casino games, and digital bingo starting January 1, 2026.

The updated gambling legislation, spearheaded by the Ministry of the Interior, aims to reduce gambling-related harms while increasing the market’s channelization rate. Channelization refers to directing players to regulated services rather than unregulated ones, thus enhancing consumer protection and responsible gambling practices. With the inclusion of horse racing in this competitive market, state funds previously allocated to horse racing will now focus on other industry needs, such as supporting breeding and advising horse-related businesses.

Competitive Licensing Model and Regulatory Review

The proposed law grants licenses for online sports betting, digital casino games, electronic bingo, and virtual slot machines. Meanwhile, Veikkaus will retain its exclusivity over lottery operations and physical gaming venues. In addition to moving horse racing under the license model, Finland’s new legislation will undergo a review by the European Commission (EC) and other EU member states to ensure compliance with EU principles of free movement and competition. This three-month evaluation will gather feedback to refine the proposal before it is submitted to Finland’s parliament in spring 2025.

According to Jari Vähänen, a local gaming consultant, this regulatory shift aligns with heavy lobbying efforts from the Finnish horse racing industry, which had advocated for a more flexible licensing environment. Industry observers expect horse racing betting to potentially expand into retail outlets under the new regulations, providing broader accessibility for bettors.

Revised Draft Eases Business Restrictions

The latest version of the proposed law has introduced several business-friendly changes compared to its initial draft in July. Marketing restrictions have been relaxed, allowing offline brand marketing, and certain bonus offerings will now be permitted under specific conditions for existing customers. Legal Gaming’s Finnish advisor Antti Koivula noted that while the Gross Gaming Revenue (GGR) tax rate remains at 22%, an increased supervision fee based on GGR levels could add a tax burden exceeding 2% for some operators. Koivula called the revised law “significantly more business-friendly” while recognizing that not all stakeholders are satisfied.

With the law’s emphasis on consumer protection, the updated regulations also limit certain advertising methods. Veikkaus Oy, Finland’s state-owned gambling operator, will be restricted from using influencer marketing. This ban prevents public figures from promoting Veikkaus products on personal platforms, even without monetary compensation, though they may appear in Veikkaus’ official advertisements. Further restrictions will curb affiliate marketing that directs users to gambling websites, with the intent to shield minors from exposure to gambling content.

Nordic Gambling partner Morten Ronde noted that Finland’s reform resembles the regulatory models in Denmark and Sweden, providing familiarity for operators active in the Nordic region. Ronde lauded the moderate allowance for bonuses and the 22% tax rate as positive steps, though he highlighted the need for clarity on what constitutes a “moderate” bonus.

Timeline and Industry Reactions

Finland plans to introduce the final version of the law to parliament by early 2025, with a target date of mid-2025 for its passage. This reform not only paves the way for competitive licensing but also expedites the timeline, allowing licensed operators to potentially begin operations by July 1, 2026. As noted by Finnish iGaming consultant Pasi Koskela, while some advertising limitations may redirect traffic from regulated sites to unlicensed ones, the overall impact remains to be seen. Koskela suggested that without established guidelines for affiliate marketing, consumer interest may shift to less reputable platforms, creating challenges for consumer protection.

Incorporating both traditional and modern business concerns, Finland’s evolving gambling system signals a new era for the country’s betting landscape. The balance of consumer safety with industry flexibility aims to foster a responsible and competitive environment, strengthening Finland’s role in the broader European gambling market.

Sources:

“Gambling Reform in Finland Advances, Adding Horse Racing to Competitive Market,“ valtioneuvosto.fi, November 1, 2024.

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Filed Under: Gambling News Tagged With: adding, advances,, competitive, finland, Gambling, horse, license, market, racing, reform,

UK Gambling Commission Prepares First Study to Combat Online Black Market

Gambling-Commission-embarks-on-black-market-study-to-improve-monitoring In 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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Dutch Gambling Market Sees Growth Amid Channelisation Concerns

Dutch-gaming-revenue-up-21_-in-2023-as-regulator-claims-95_-channelization The 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.