New Zealand Government to Regulate Online Casinos

New-Zealand-launches-process-to-regulate-online-casino__The New Zealand government has announced its plan to regulate online casinos through a comprehensive licensing framework designed to minimize harm, support tax collection, and ensure robust consumer protections. This significant move marks the first time New Zealand will regulate online casino activities, with the new system expected to be in place by 2026.

Comprehensive Licensing System

Minister of Internal Affairs, Brooke van Velden, outlined the high-level approach the government will take in regulating online casinos. “There will be a licensing system for online casinos, where operators will need to comply with a set of criteria before they will be able to offer services to New Zealanders. It will be illegal for unlicensed operators to offer services to New Zealanders,” stated Ms. van Velden.

The government’s approach ensures that the new regulations do not aim to increase gambling activity among New Zealanders but rather to ensure that operators meet essential requirements for consumer protection and harm minimization, along with paying taxes. A limited number of licenses will be available, allocated through an auction process, and will last for three years, conditional on meeting regulatory standards. The minimum age for online gambling will be set at 18 years, and licensed operators will be restricted to offering online casino games, excluding sports betting and lottery products.

Controlled Advertising and Sponsorship Regulations

Licensed operators will be permitted to advertise their services under strict limits, a significant shift from the current prohibition. However, sponsorship by online casinos will remain illegal to further minimize harm. Minister van Velden expressed her expectations for the new system: “I expect the new regulatory system to be in place from early 2026 and the public will have the opportunity to provide feedback during the Select Committee process. Once established, the Department of Internal Affairs will be the regulator.”

Industry Response and Future Prospects

The New Zealand government’s decision to regulate online casinos has garnered support from various stakeholders in the industry. SkyCity Entertainment Group, a major player in the local casino market, voiced its support for the new regulations. “We remain supportive of the regulation of online casino gaming in New Zealand, with an emphasis on strong host responsibility and delivering community benefits in New Zealand,” stated SkyCity. The company’s CEO, Jason Walbridge, welcomed the plans to restrict license numbers and advertising, noting the importance of minimizing harm and protecting consumers.

SkyCity has long advocated for a regulated online casino market to compete with offshore operators. The company set up its online business through a Malta-based subsidiary in 2019 and has called for a level playing field where all operators contribute their fair share of taxes. “SkyCity looks forward to a regulated market, where harm minimisation is one of the primary objectives,” the company said in a previous statement.

Impact on the Market and Next Steps

This regulatory overhaul represents the first major change to New Zealand’s gambling landscape under the new government, which came into power following the National Party’s victory in last year’s election. The party had previously highlighted the potential to raise significant revenue from taxing offshore operators and criticized the lack of goods and services tax (GST) collection from the black market.

As the government moves forward with the implementation of the new framework, public consultations during the Select Committee process will allow stakeholders and citizens to provide feedback. The regulatory details, including the specifics of the offshore gambling tax, are expected to be announced later this year.

Source:

Regulating online casinos approach, beehive.govt.nz, July 30, 2024.

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Future of US Online Gambling: 2025 Framework Revealed

US-legislators-crafting-model-legislation-to-create-pathway-to-legal-igamingIn a pivotal moment for online gambling legislation, stakeholders and legislators are now poised to embrace a comprehensive framework that will shape the future of internet gambling across the United States from 2025 onwards. This initiative was detailed at the recent National Council of Legislators from Gaming States (NCLGS) conference in Pittsburgh.

Drafting the New Framework

Former Florida State Senator Steve Geller played a central role at the NCLGS conference, detailing anticipated components of upcoming legal iGaming legislation and moderating a robust discussion with a diverse panel of regulators and industry stakeholders.

This group vigorously debated the priorities and strategies essential for the successful implementation of the legislation. According to Geller, the proposal suggests a tax rate of 15%-25%, which aligns with the current average of 19% observed across the seven states where online gambling is legal.

The proposed legislation is ambitious, covering a range of critical areas including:

  • Revenue generation
  • Responsible gaming
  • Addressing the cannibalization debate
  • Establishing advertising standards
  • Licensing frameworks
  • Setting age restrictions
  • Enhancing data sharing mechanisms

Timeline for Legislation

Shawn Fluharty, NCLGS president and a West Virginia state representative, announced plans to circulate a draft of this legislation among NCLGS members by August 1st. This will kickstart a 30-day public commentary period. Subsequent revisions will be informed by this feedback, with a final draft expected to be presented at the NCLGS winter meeting in New Orleans from December 12-15.

States Embracing Online Gambling

While nearly 40 states have legalized some form of sports betting following the 2018 Supreme Court decision, only a handful, including West Virginia, Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and Rhode Island, currently allow comprehensive online gambling. The distinctions between sports betting and casino gaming are significant, as noted by Lee Copella, iGaming compliance director at the Pennsylvania Gaming Control Board. Copella emphasized the more stable and predictable revenue stream from casino gaming compared to the fluctuating nature of sports betting.

Maryland’s Legislative Journey

In Maryland, State Senator Ronald Watson has been a prominent advocate for legalizing online gambling, underscoring the necessity of treating the legislative process akin to a campaign. He highlighted the importance of extensive educational efforts aimed at both legislators and the public. Maryland’s approach involves putting gaming expansion decisions directly to voters, with the next opportunity slated for 2026.

Economic Considerations and Technology Implications

The financial implications of online gambling are significant, with tax revenues from digital gaming outpacing those from sports betting by a substantial margin. This revenue potential is crucial, especially as states begin to feel the economic pinch from depleted COVID relief funds. The importance of technological standards and anti-money laundering measures was also a key focus of the discussions, with David Rebuck, former head of the New Jersey Division of Gaming Enforcement, advocating for high regulatory standards to ensure a secure and reliable gaming environment.

Overcoming the Cannibalization Myth

The debate over the potential cannibalization of physical casinos by online platforms continues, but as Bill Pascrell III of the Princeton Group argued, this concern has been largely debunked by data from states like New Jersey, which shows minimal impact on traditional casino revenues and employment.

Source:

US legislators crafting model legislation to create pathway to legal igaming, igamingbusiness.com, July 22, 2024.

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What To Look For In an Online Slot; Special Features, Volatility & RTP

Ask almost anyone who gambles at online casinos what their favorite games to play are and they will likely say slots. If you’re like me, you look for online slots with bonus rounds, innovative game mechanics, and high RTPs (return to player). The higher the playback percentage, the better your chances of winning, i.e., you’ll get back more money over time. Just a few player favorites that fit those criteria include Reactoonz, Money Cart 2, and Book of 99. It’s important to note that there are a variety of factors to consider, and a high RTP doesn’t necessarily guarantee the best experience for the type of game that you’re partial to.

How to Pick the Right Online Slot

The best way to determine what you like the most is to try different types of online slots. Choose from classic, reel, video, progressive, 3D, Megaways, fruit machines, etc., and titles from a range of software providers. Fortunately, you don’t always have to play for real money. During your search to find your “perfect” game, you have the option to play in demo mode. Any online casino worth its salt has a selection of free demo slots available. Slot sites that offer these free-to-play games do not require that you make a deposit or spend any money, and provide a great skill-building opportunity. However, when and if you do play for real money, you’ll have many more titles and game variants to choose from, as well as progressive jackpots.

Selecting the right online slot can have a significant impact on your gaming experience and potential for big wins. With so many options available, it’s important that you consider several factors when making your decision. What follows are a few suggestions, in no particular order, to help you make an informed decision and choose the right online slot for you.

Special Features & Bonuses

If you’re like me, the more bells and whistles there are during gameplay, the better. You’ll want to consider game mechanics, special symbols and bonus features. When you make your list of possibles, look for casino games that have special features like multipliers, free spins, and bonus rounds that will have you on the edge of your seat! Elements such as these ramp up the level of excitement and also boost your chances of scoring big prizes. It’s also a good idea to pay attention to scatters, wilds and any other special symbols that can increase your winnings considerably and unlock more rewards.

Volatility

One of the great things about slots is whether traditional or virtual you don’t have to possess a certain skill-set to be able to play and win money. However, one area where you can be strategic is volatility. Also known as variance, determining the volatility of a slot you’re interested in can give you some idea of what kind of gaming experience you might have and the resources you’ll need to enjoy the game to the fullest. The term volatility can be applied to everything from online slots and video poker to classic casino table games like roulette, craps and blackjack. A game’s volatility or level of variance will give you a reasonable indication of how frequently (hit frequency) you can expect to win and the size of the prizes (payout ratio).

Regarding slot volatility, the three main categories are low, medium, and high.

Low Volatility

Online slots that are low volatility are perfect for casual gamers. Wins will be small but steady and the minimum bet is typically low. And while the top payouts are on the smaller side, you aren’t likely to burn through your bankroll playing low volatility slots.

Medium Volatility

Medium volatility slots appeal to a wide range of players as they usually provide a balance between modest wins and the possibility of an occasional big win. There is a bit more risk playing medium volatility slots than with low, but there is also the potential for more reward.

High Volatility

If you’re hoping for big payouts, you’ll want to look for slots that are highly volatile. The hit rate is lower for these games, usually around 20%, and they pay out less frequently than lower volatility games, but when they do hit you could be in for a monumental win. A perfect example of a high variance slot is Book of 99 from casino software developer Relax Gaming. Released in May 2021, this “book-of” style game is set in Ancient Greece and 99% RTP! Like most high-volatility slots, this game is packed with special features including wilds, free spins, a special expanding symbol and more. If you’re lucky enough to line up 5 premium symbols in this game, you would collect a win worth 75 to 500X the stake!

Big win potential like that requires a sizeable bankroll to be able to play through dry spells that you can expect to experience.

RTP

Do not confuse volatility or variance with a game’s return to player (RTP) percentage. Where volatility indicates how often you’ll hit and the size of the prize, RTP refers to the amount of money paid out over time. Take a slot with an RTP value of 95%. What this means is if you wager $100, you can expect to win $95 back, theoretically, of course. Because the figure is calculated over such a large number of plays, batches of spins that diverge quite a bit from the average are possible.

Other factors you’ll want to consider are game theme and graphics, jackpots and progressive prizes, and reviews and recommendations. The latter especially will give you a good idea of the overall gameplay experience of a particular slot, as well as the frequency of payout and fairness. The more time you spend playing slots for fun, the more valuable such online forums will become.

Final Thoughts

You may have to put in a bit of time and effort reading reviews and taking advantage of demo play, but it just might make the difference between having an average gameplay experience and an exceptional one. One thing is for certain, with such a wide array of options to choose from, you’re sure to find an online slot that satisfies your thirst for excitement and rewards, whether big or small.

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Spanish Online Gambling Market Sees Strong Growth in Q1 2024

The Spanish online gambling market has shown robust growth in the first quarter of 2024, as reported by the Directorate General for the Regulation of Gambling (DGOJ). The Gross Gaming Revenue (GGR) for the quarter reached €350.69 million, marking an 11.23% increase quarter-over-quarter and a 15.14% increase year-over-year. This significant rise underscores the market’s resilience and recovery from previous fluctuations.

Growth Across Key Segments

spanish_online_gambling_report_q1_2024_ggr_up_15_1pctIn terms of player transactions, both deposits and withdrawals showed notable increases compared to the previous year, rising by 15.85% and 13.90%, respectively. Quarter-over-quarter, deposits grew by 5.61% while withdrawals saw a modest increase of 0.72%. Despite the overall growth, marketing expenditure saw a slight decrease of 1.0% quarter-over-quarter, while the number of new accounts surged by 15.21%.

The GGR is distributed across various gaming segments, with betting, casino, bingo, contests, and poker all contributing to the total. Betting accounted for €150.28 million (42.85% of the total GGR), followed by the casino segment with €167.76 million (47.84%). Bingo contributed €4.19 million (1.19%), contests €0.002 million (0.00%), and poker €28.45 million (8.11%).

Betting and Casino Drive Growth

The betting segment experienced a significant positive variation rate of 30.99% quarter-over-quarter and 15.37% year-over-year. This growth was largely driven by a remarkable 588.84% increase in pre-match betting, although in-play sports betting saw a decline of 31.69%. Other betting categories also grew by 1.57% this quarter, whereas horse betting decreased by 28.36%.

The casino segment, despite a slight quarter-over-quarter decline of 2.05%, showed a strong annual growth rate of 17.02%. Within the casino segment, slots increased by 14.98% year-over-year, and live roulette saw an impressive 22.19% growth. Quarter-over-quarter, Blackjack, conventional roulette, and live roulette grew by 7.32%, 9.69%, and 6.37%, respectively, while slots fell by 7.51%.

Other Segments Show Mixed Results

Bingo showed steady growth, with a 9.18% increase quarter-over-quarter and 24.93% year-over-year. Conversely, the contests segment continued its irregular performance, experiencing a dramatic fall of 96.79% quarter-over-quarter and 99.38% year-over-year.

Poker presented a positive outlook with an 11.98% quarter-over-quarter increase and a 3.99% year-over-year rise. Poker tournaments grew by 11.19% quarter-over-quarter and 2.04% year-over-year, while poker cash games increased by 13.91% compared to the previous quarter and 8.91% compared to the same quarter of the previous year.

Player Engagement and Market Dynamics

The average number of active game accounts per month reached 1,327,575, reflecting a 4.57% increase quarter-over-quarter and a 14.58% increase year-over-year. The average number of new game accounts per month stood at 148,862, with a growth of 15.21% quarter-over-quarter and 33.64% year-over-year.

For this quarter, there were 78 licensed operators in the market. The number of active operators by segment included 41 for betting, 4 for bingo, 50 for casino, 2 for contests, and 9 for poker.

Marketing Expenses

Marketing expenses for the last quarter totaled €112.79 million, broken down into €14.27 million for affiliation expenses, €1.07 million for sponsorship, €55.67 million for promotions, and €41.78 million for advertising. Compared to the previous quarter, marketing expenses declined by 1.00% but increased by 14.86% year-over-year. Specifically, sponsorship decreased by 12.55%, affiliates by 0.87%, advertising by 7.68%, while promotions increased by 4.93% quarter-over-quarter. Year-over-year, sponsorship fell by 27.23%, affiliates increased by 14.82%, advertising by 22.49%, and promotions by 10.92%.

Source: “1st Quarterly Report 2024”. Directorate General for the Regulation of Gambling. June 4, 2024.

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DraftKings, MGM, Hard Rock Mull Entering Brazil Online Betting Market

Last year, Brazil established regulatory guidelines for its online wagering market — a move that’s expected to lure some of the industry’s biggest players to Latin America’s largest economies.

The Brazilian flag flying against a backdrop of the sun
The Brazilian flag flying against a backdrop of the sun. DraftKings and MGM are among the US companies that could pursue online wagering licenses there. (Image: Pixabay)

It’s rumored that US-based betting behemoths DraftKings (NASDAQ: DKNG), MGM Resorts International (NYSE: MGM), and Hard Rock International are examining avenues for entering the most populous country in the region.

The list of nearly 135 pre-registrants for Brazilian online wagering permits reads like a who’s who of the gaming industry and includes US-based firms such as Bally’s (NYSE: BALY), DraftKings, and MGM as well  as entities tied to European sportsbook giants Entain and Flutter Entertainment (NYSE: FLUT), among many more.

For domestic iGaming and sportsbook operators, the allure of Brazil is easy to understand. State-level legalization in the US is slowing with widespread belief that it could be years before California and Texas permit mobile sports betting. Conversely, Brazil has the framework in place and is home to more than 209 million people, making it the sixth-largest country in the world.

Brazil Could Increase Allure of Rush Street Interactive

Already rumored to be a takeover target, Rush Street Interactive (NYSE: RSI)could draw increased interest from potential suitors as Brazil liberalizes its online wagering market.

The reasoning is simple. It’s widely believed Brazilian regulators will be partial home-grown companies and those with established footprints in Latin America when awarding licenses. With sports betting operations in Colombia and Mexico, Rush Street Interactive is the only US-based gaming company that checks the latter box.

There has also been talk the operator could eventually enter Argentina and Peru. Should RSI prove successful in procuring a Brazilian license, it could make the firm an attractive target for another US-based operator that sees opportunity in Latin America.

Last month, Bloomberg reported that RSI approached multiple prospective buyers, including DraftKings, but the company has yet to publicly confirm such talks.

Brazil Could Be Next Great Sports Wagering Frontier

Alone, Brazil’s status as the region’s largest economy and most populous nation make it alluring for gaming companies, but there’s more to the story.

The country doesn’t have Las Vegas-style, land-based casinos and there’s little indication that policy will change anytime soon, indicating iGaming could be a hit among Brazilian bettors that want access to table games.

On the sports wagering front, Brazil is famously one of the most soccer-rabid countries in the world. It has five World Cup titles, is the only country to compete in all 21 editions of the tournament, and holds several other records, including games played, matches won, and goals scored.

Still, the NFL is increasingly popular there and Sao Paulo will host the league’s first game in South America in 2024. The NBA is also popular among residents in what is the world’s tenth-largest economy.

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