market – Page 2

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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Filed Under: Gambling News Tagged With: Black, combat, commission, first, Gambling, market, Online, prepares, study

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.

Source:

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

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Filed Under: Gambling News Tagged With: channelisation, concerns, dutch, Gambling, growth, market

Pragmatic Play Strengthens Ontario Market Reach with Caesars Digital Launch

PRAGMATIC-PLAY-STRENGTHENS-ONTARIO-OFFERING-WITH-CAESARS-DIGITAL-ROLLOUT Pragmatic Play has further extended its influence in the North American iGaming market by launching its captivating slots portfolio with Caesars Digital in Ontario. This strategic partnership will initially feature Pragmatic Play’s extensive range of slots on Caesars Palace Online Casino and Caesars Sportsbook & Casino, with the company’s live casino suite set to be rolled out in the near future.

The agreement also underscores Pragmatic Play’s strategy of expanding its product offering in regulated markets like Ontario. The company’s ability to continuously innovate and develop new content, while ensuring compliance with local regulations, has allowed it to gain traction quickly in Canada’s competitive market.

Lots of Surprises for Ontarian Players

The integration brings top-performing titles like Gates of Olympus and Sugar Rush to Ontario’s players, alongside newer offerings such as Forging Wilds and Mustang Gold Megaways. This collaboration is a testament to Pragmatic Play’s growing presence in Canada and highlights the strong demand for their innovative and engaging content.

Pragmatic Play’s Chief Operating Officer, Irina Cornides, emphasized the significance of the deal, stating:

“Caesars Sportsbook and Casino is a prestigious gaming and entertainment brand. Pragmatic Play’s partnership with them reinforces our commitment to delivering player-favourite content to the world’s leading casino operators.”

Echoing Cornides’ sentiments, Ricardo Cornejo Rivas, Vice President of Online Gaming at Caesars Digital remarked that Pragmatic Play’s award-winning portfolio of gaming titles represents an exciting addition to the company’s fast developing platforms. Having in mind that ten studio’s games have already proven popular with players across Ontario, he’s positive that this deal will result in numerous benefits.

The partnership with Caesars Digital is just the latest in a series of successful collaborations that have helped Pragmatic Play strengthen its position in North America. In recent years, the company has made significant strides in expanding its reach, not only in Canada but also in the U.S. and Latin America.

Firm Position on Global Level

Pragmatic Play has become well-known for its ability to produce high-quality gaming content at a rapid pace. The company currently releases up to eight new slot titles per month, in addition to providing Live Casino and Bingo products. These offerings are available through a single API, making integration smooth for operators.

Looking ahead, Pragmatic Play’s continued expansion in Ontario and other regions is expected to drive further growth for the company. The partnership with Caesars Digital, a leading operator in North America, is a crucial component of this strategy. With both companies committed to providing high-quality gaming experiences, players can look forward to even more exciting developments in the near future.

At the beginning of the current month, the supplier attended GAT Showcase Bogotá in Colombia. Held at the Sheraton Bogota Hotel, this event gathered numerous iGaming professionals.

In second half of September, Pragmatic Play will take part in another GAT event, this time to be hosted in the Renaissance Santo Domingo Jaragua Hotel & Casino in the Dominican Republic. Welcoming more than 300 delegates, this event will be crowded with informative presentations on new regulations and innovations withing online platforms.

Source:

“Pragmatic Play Strengthens Ontario Offering with Caesars Digital Rollout”, pragmaticplay.com, September 10, 2024

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Play’n GO Continues Rapid Expansion in the US Market with Successful Game Launches

Playn-GO-Continues-Rapid-Expansion-in-the-US-Market Play’n GO’s footprint in the US has been steadily expanding, with the company experiencing strong growth and game success in key markets. From exclusive partnerships to the release of engaging new online slot titles, Play’n GO is making waves across the country’s iGaming landscape.

George Olekszy, Head of Game Retention at Play’n GO, recently shared insights into the company’s journey and its future plans in the US. At the upcoming G2E Las Vegas event, Play’n GO will be showcasing its games to industry professionals, offering a glimpse into what’s next for the company in the US market.

Looking ahead, Play’n GO is preparing to launch several new titles in the US, including Midnight Princess 100 and Oasis of Dead. Additionally, Rise of Olympus Origins is set to be released around Halloween, building on the success of its predecessor.

Piggy Blitz: A Breakout Success in 2024

One of Play’n GO’s most successful US launches to date has been Piggy Blitz, which was introduced as a BetMGM exclusive in late December 2023 before going live in other licensed states in January 2024.

The game quickly became a hit, achieving the number one spot among newly released games in New Jersey and the second spot across all new US releases within its first month. By February, Piggy Blitz had secured a spot in the top five games overall, speaking volumes about the quality and appeal of the studio’s content among players from the United States.

Colt Lightning Firestorm: Another Hit in the Making

Following the success of Piggy Blitz, Play’n GO has seen another title gaining momentum: Colt Lightning Firestorm. Launched as an exclusive with BetRivers in August 2024, the game has already delivered remarkable results, despite being available exclusively for half of its release period.

Olekszy shared his optimism about the game’s future, stating:

“It’s fair to say the performance has been pretty staggering, made all the more remarkable when you consider it was a single-operator exclusive for half of its US lifespan. We’ll have more firm facts and figures to share in the coming weeks, but it wouldn’t surprise me if Colt Lightning Firestorm became one of our best performing games in the US in the very near future.”

Play’n GO’s Grid Slots Make an Impact with Midnight Princess Power of Love

The Midnight Princess Power of Love release marks Play’n GO’s expansion of its popular Moon Princess series in the US.

Known for pioneering grid slots, Play’n GO has seen great success with titles like Reactoonz and Rise of Olympus 100 in the US market. The company is now seeing similar results with Midnight Princess Power of Love, as it quickly gains traction among players.

A Bright Future for Play’n GO in the US

Since entering the US market in 2022, Play’n GO has expanded its operations to five states-West Virginia, New Jersey, Pennsylvania, Michigan, and Connecticut, entering partnerships with major operators like Rush Street Interactive and BetMGM. With plans for continued growth, the company is positioning itself for long-term success.

As Olekszy pointed out:

“Our hope, like everyone else in the industry, is that more individual states will continue to open up over the coming months and years, and when they do, we’ll be ready. We have a publicly stated goal of being active in every regulated market in the world, and we plan to keep that promise.”