Gamlinked May 2024
By Thadeus Geodfrey
Welcome to Gamlinked, where we have our finger on the pulse of the gambling industry. We capture the highs, lows, and everything in between, ensuring you’re up to date with industry developments, including the latest trends in top online casinos.
In this issue, we look at Ontario where the regulator raises concerns over World Boxing Association (WBA)-sanctioned boxing matches and potential match-fixing. Then, we discuss Westpac NZ’s new gambling block and GambleAware’s self-assessment tool. In South Africa, a political party is eyeing a gambling bill ahead of the election.
In the UK, the gambling lobby group UK Betting and Gaming Council is in senior leadership restructure. We close the roundup in Indonesia where there’s an impending crackdown on online gambling sites. Let’s look at these developments in detail.
Ontario Regulator Suspends Betting on Boxing Matches
There’s no betting on boxing matches in Ontario, according to the regulator, the Alcohol and Gaming Commission of Ontario (AGCO). It believes World Boxing Association (WBA)-sanctioned matches are too open to manipulation. The Canadian Press reports that the province worries about the risks of match-fixing and insider betting on these boxing matches. As a result, AGCO has asked all registered gaming operators, among them the best online casinos, to stop accepting wagers on WBA events till further notice.
But what has formed this decision? AGCO says they have reviewed the bets on a title fight between Yoenis Tellez and Livan Navarro held in Florida in December and identified suspicious patterns. An Ontario-registered iGaming operator and two independent integrity monitors detected suspicious bet patterns.
Some media reports allege that Tellez’s manager had placed a $110,000 bet that the match would last longer than 5 1/2 rounds.
While AGCO concluded that WBA events don’t meet the Registrar’s Standards for Internet Gaming, they’ve left room to reinstate the events should the regulated operators and online casinos demonstrate the WBA effectively supervises these events.
Perhaps the WBA can borrow a leaf from the Ultimate Fighting Championship (UFC). In December last year, AGCO had asked operators to stop offering bets on UFC events over similar concerns. But the UFC moved with speed to implement new protocols and within a month of the sanction, AGCO had reinstated UFC betting in the province. So, if WBA works cooperatively with AGCO, the matter can be resolved just as quickly.
“We don’t take this kind of action very often,” Registrar and CEO Karin Schnarr was quoted as telling media.
”And so when we do, it really, I think [it] signals the seriousness of this kind of situation,”
Schnarr said AGCO regulates and wants an open gaming market in the province where gamers can trust that the sports games offered by the registered operators are fair for betting.
But will AGCO also take action against the National Basketball Association (NBA) like it did UFC and now WBA?
The 30-team professional basketball league in North America has recently declared a lifetime ban for Jontay Porter, a former Toronto Raptors backup centre following an inquiry into gambling accusations. The investigation revealed that he shared confidential information with sports bettors, manipulating his participation in games for betting reasons, and placing bets on NBA matches. These actions breached league regulations.
In a follow-up statement to the event, Schnarr acknowledged the action taken by the NBA, saying the prompt and decisive action on a serious case of alleged insider betting and match-fixing demonstrated how seriously they take matters related to game integrity.
Schnarr, who is a Laurier Associate Professor, insists that all the registered operators in Ontario must ensure the games they provide are effectively supervised by a sports governing body. These sports bodies have to have and enforce codes of conduct prohibiting betting by insiders.
On the current ban on WBA-sanctioned boxing matches, she said the action by the NBA sharply contrasts those by the WBA, as the latter’s Code of Ethics does not explicitly prohibit betting by insiders. She also added that no evidence demonstrates any effort to curb such fraudulent incidents in the boxing match. WBA has made no effort to the required action concerning the Yoenis Tellez and Livan Navarro fight betting incidents.
If WBA-sanctioned fights lack betting safeguards, would you still trust even the best Canadian online casino to predict Mike Tyson’s retirement bout against Jake Paul?
New Zealand Banks Introduce Credit Card Blocks to Mitigate Gambling
New Zealand financial institution Westpac has introduced a new system to help gambling addiction. Their new online banking account can block debit and credit cards for gambling payments.
“By introducing the gambling block, we’re empowering our customers to stay in control of their finances,” Louisa Brock, Westpac NZ Manager of Financial Inclusion and Vulnerability reportedly told media. “ We know gambling can become an addiction for some people, at which point it can cause significant harm.”
Ms Brock, who leads the bank’s Extra Care team, says customers have been asking for this optional block.
Well, how does this Westpac account block work?
Westpac customers can request a gambling block by calling the bank or visiting the nearest branch to apply the block to all their credit/debit cards. The block stops any online transaction with gambling businesses. And it stays in place for at least three months before you can request the bank to remove it
However, brick-and-mortar players are excluded from this feature. The company targets online transactions, so the block won’t stop transactions at physical locations like a casino or retail outfit selling a lottery ticket.
While supporting their move to only offer gambling blocks for NZ online casinos and gambling platforms, Westpac says its customers spent $136.8 million between 26 June and 25 September 2023 on online gambling. That’s over 40 times what their customers spent at physical gambling locations, which stands at $3.2m, over the same period.
Also, an interesting stat is that nearly $68.4 million of the money spent online went to TAB and Lotto, and the remainder spread across various online gambling platforms.
“Our data shows that the majority of gambling spending does take place online.” Ms Brock says. “We’ve updated our website to let customers know that the block’s available if they’re looking for support with a gambling problem.”
In explaining how account blocks can help, she recounted a story of a customer, who had received an inheritance payment exceeding $100,000. The customer proceeded to gamble more than $15,000 online in 12 days. Ms. Brock states that when the customer was informed about the option of implementing an account block to assist in managing their spending, they eagerly embraced the opportunity.
This customer conveyed to the team at Westpac that they were eager to cease gambling but found it challenging to do so independently.
According to data on responsible gambling from Te Whatu Ora, the government organization tasked with promoting health and wellness among New Zealanders, an estimated 186,000 individuals experience gambling-related harm in the country.
Brock emphasizes the courage required to acknowledge one’s gambling problem. She mentioned that Westpac has trained its customer-facing staff to engage in constructive dialogues with customers. Such customers experiencing gambling difficulties can quickly be identified and assisted in structuring their accounts to control gambling expenditures.
GambleAware Reports Over 100,000 People using its self-assessment tool
In other news, the latest data shows GambleAware initiatives are successfully working. More people are using the tools to prevent gambling-related harm.
GambleAware says in its report that more than 100,000 individuals have used its online self-assessment tool since its launch in April 2023. Among them, approximately 28,000 sought further support from trained advisors, indicating a substantial demand for assistance in managing gambling-related issues.
GambleAware is an independent charity aimed at preventing gambling harm through research, and development of prevention tools and treatment services across the UK. It recently rebuffed its campaign to help more people open up, with the slogan ‘Let’s Open Up About Gambling!’
Through its coordinated efforts to cut barriers to accessing support and treatment services, over 50% of those affected are taking proactive steps to prevent gambling harm. To keep up with the growing numbers, the charity has trained more than 8,000 professionals drawn from other sectors to be part of the team to identify signs of gambling harm.
The report further says there has been a notable increase in individuals accessing support through the GambleAware-commissioned National Gambling Support Network (NGSN). Precisely, there’s a 20% rise in people receiving extended early intervention support.
The GambleAware-commissioned National Gambling Helpline has also seen an increase in calls it receives. The uptake of prevention initiatives corresponds with the surge in the number of new online casinos and the gaming industry’s revenues. With more people engaging in betting activities, there’s an urgency to address gambling harms within society as demonstrated by the growing demand for assistance.
Zoë Osmond, CEO of GambleAware, stressed the critical role of third-sector services in addressing gambling harms, advocating for a comprehensive prevention-led approach.
While explaining the increase in demand for assistance, GambleAware credited its stigma campaign, ‘Let’s Open Up About Gambling,’ for playing a significant role in reducing barriers to accessing support and promoting prevention efforts.
With more than half of the target audience responding by taking proactive steps to address gambling-related concerns, Alexia Clifford, Chief Communications Officer at GambleAware, highlighted the positive impact of the campaign.
Laura Mallis, Project Coordinator for Citizens Advice Scotland Gambling Support Service, on her part, expressed gratitude for the partnership with GambleAware. She emphasized the transformative impact of training and upskilling advisers and volunteers to recognize and address gambling harms effectively.
Well, GambleAware remains committed to combating gambling harm. Other than encouraging responsible gambling, what further actions do you believe are necessary to effectively address this issue?
South African Political Party Announces Online Gambling Bill Ahead of Election
The Democratic Alliance (DA) believes the ANC has failed to provide adequate protection and regulation within the online gambling industry. In response, through its MP Dean Macpherson, the party has officially introduced its Remote Gambling Bill 2024 in Parliament.
In a press release, the MP said the gambling bill has taken more than two years of consultation with industry experts. If successfully passed, the bill will revise the National Gambling Amendment Act 2008.
The bill, which complies with the Financial Intelligence Centre Act (FICA) – the main Anti-Money Laundering (AML) law of South Africa, seeks to regulate the issuing of licenses by provincial authorities, control advertising, and protect minors and vulnerable persons. The legislator says the bill balances protection and regulation with administration.
With the upcoming national and provincial elections potentially reducing the ANC’s majority, the DA sees an opportunity to pass legislation like the Remote Gambling Bill to address critical issues and protect vulnerable populations.
UK Betting and Gaming Council Undergoes Restructure of Senior Leadership
The Betting and Gaming Council (BGC) announced Grainne Hurst as its new Chief Executive Officer, succeeding Michael Dugher, who in turn will replace outgoing board chair Brigid Simmonds. This is part of a broader restructuring of the lobby group’s senior leadership.
“As I step back to become Chair of the BGC,” said Michael Dugher, “I am confident she will work well with our talented staff to make a decisive impact as our new CEO.”
“Driving further progress on safer gambling, whilst ensuring that the tens of thousands of people who work in the industry continue to have their voices heard, will remain at the heart of everything we do,” added Dugher.
According to Dugher, there is no one better than Grainne. So, her appointment was excellent news for BGC and its members. He noted that she had won a very tough, external recruitment process. She had demonstrated that she possessed mission-critical knowledge and experience in the regulated industry, both online and in the land-based sector. Additionally, Dugher highlighted Grainne’s strong vision for continued change and improvement at the BGC.
Grainne is experienced in the regulated betting and gaming sector, currently working as the global betting brand Entain, Group Corporate Affairs Director. Her particular achievement in this role is leading the company’s engagement with the government and overseeing the development of a global safer gambling strategy.
Grainne’s experience comes in handy in promoting responsible gambling and increasing diversity within the industry. With her leadership, the BGC aims to engage constructively with regulators and stakeholders as they continue to champion the industry employees and provide the best possible service to customers.
Her appointment comes at a crucial time as the industry navigates regulatory changes and implements recommendations from the White Paper from a year ago.
The BGC is a lobby group made up of more than 90 per cent of the UK’s regulated betting and gaming sector. Its member companies employ more than 110,000 workers, contribute £4.2 billion in tax revenue, and add £7.1 billion to the economy in gross value.
Indonesian Government Moves to Eradicate Online Gambling Sites
In a decisive move against online gambling, the central government of Indonesia has announced the formation of a multi-agency task force. This task force aims to eradicate online gambling nationwide.
The creation of this task force marks a significant step in the country’s ongoing battle against online gambling, an activity that remains entirely illegal across the nation. They want to remove all online casinos that are operating.
The task force consists of representatives from various government agencies, including the Financial Services Authority (OJK), the Financial Transaction Reports and Analysis Centre (PPATK), and the police.
Recent data from the Center for Financial Transaction Reports and Analysis (PPATK) revealed that the total circulation of money from online gambling in 2023 amounted to Rp327 trillion (approximately US$20.19 billion). Concerningly, there are many low-deposit casinos targeting individuals from low-income backgrounds.
Mahendra Siregar, Chair of the Board of Commissioners of the Financial Services Authority (OJK), disclosed that the OJK has already blocked around 5,000 bank accounts associated with online gambling activities between late 2023 and March 2024. However, he acknowledged that merely eliminating sites and blocking bank accounts may not be sufficient to completely eradicate online gambling, as it is a transnational issue.
Siregar called for comprehensive eradication efforts, considering that some online gambling activities occur across borders and may not involve bank accounts. He emphasized the importance of addressing the root problem to ensure effective solutions.
The formation of the integrated task force reflects the government’s commitment to tackling the widespread issue of online gambling and protecting vulnerable individuals from its harmful effects.
Closing Thoughts
That is a lot of news in the industry, so it’s a wrap from us for now. But don’t worry, we will keep you updated regularly on everything you need to know in the gambling sector.
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