Gamlinked October 2024
By Thadeus Geodfrey
Welcome to this month’s Gamlinked news roundup. We are your go-to source for the latest updates in the gambling industry whether you’re a seasoned pro, an industry insider, or simply curious about the industry.
We’ve been tracking the biggest stories shaking up these online casinos this month – from major legislative moves to rapid market expansions, the global scene has been busy. Here’s a quick dive into the headlines that has everyone talking.
In the UK, an advertising watchdog is sniffing memes for possible rule breaches, while Ireland welcomes the EmpowerHER Recovery Network for women with gambling addiction. On the legislative front, Ohio’s Senate Bill 312 could legalize online casinos, while across the ocean in India, the Allahabad High Court has ruled that poker and rummy are skill-based games, not gambling. In this edition, you will also find out why poker winnings in Canada could be taxed. Lastly, in Norway, calls to open the gambling market and end the state monopoly get a big boost.
Stay with us as we explore and examine these stories in detail.
Advertising regulator in UK launches first probe into gambling memes
Some memes by gambling firms may have breached advertising laws. The UK’s Advertising Standards Authority (ASA) is investigating gambling firms’ use of memes on social media. This follows growing concerns that these advertisements appeal to teenagers. A debate in the House of Lords highlighted alleged breaches of advertising rules designed to protect children.
But what are memes? Memes are humorous images, videos, or text that reference to some aspect of life. In gambling, they reflect winning, losing, the thrill of the game, or the absurdities of betting behavior.
While they seem lighthearted taking on the highs and lows associated with gambling, some people are concerned.
Many companies today use memes as a form of content marketing, and the best UK online casino companies are no exception. Studies show that memes are four times more attractive to individuals under 18 than adults.
The main critics of memes include academics and campaigners. They have pointed this out and have argued against gambling firms using them. They say that these memes draw young people to follow gambling accounts. They say it exposes kids to direct gambling promotions.
Lord Foster of Bath, a member of the House of Lords in the UK, called for gambling reforms. He is concerned about the ASA’s inaction. Referencing 11 complaints submitted to the ASA since 2019, he argued that the agency is unable to effectively control social media advertising by online casinos.
Some memes appear as editorial content and may miss the ASA’s attention. The agency is examining several cases, including the 11 cases and complaints from the University of Bristol.
Raffaello Rossi, a marketing lecturer, noted that such ads could mask the addictive nature of gambling. They do so behind humor, posing a risk to young audiences. He indicated that investigating a few posts is unlikely to impact the issue. Further, he criticized the ASA for its slow response.
Also of concern are regulatory challenges, especially handling non-paid promotions by international companies. Some minimum bet sportsbooks operating from other regions have been sited. Lord Foster argues that the ASA should regulate these firms more effectively. He emphasizes the need for stronger protections for children and teenagers.
But, ASA reaffirmed its commitment to protecting children from harmful advertising. At the same time, representatives from gambling firms maintain they do not target young audiences.
In Canada, poker winnings may soon be taxable
Recently, the Tax Court of Canada has been at the forefront of discussions on the taxability of poker winnings. Key outcomes of four significant cases have left Canadian taxpayers confused. But David J. Rotfleisch, founding tax lawyer of Taxpage.com, highlights the nuances of gambling income tax regulations.
Typically, poker winnings are not considered taxable income in Canada. The Tax Court, along with the Canada Revenue Agency (CRA), don’t view casual gambling activities as personal pursuits. They don’t qualify as a source of income. But, exceptions do arise, as shown by the recent rulings in Duhamel v. The Queen and Fournier Giguère v. The King, among others.
In the Duhamel case, the court ruled that the taxpayer’s over $4.8 million poker winnings, were not taxable. The primary reason was that the player relied on personal savings to support his lifestyle while playing poker.
But in the other cases (Fournier Giguère, Bérubé, and D’Auteuil), the court determined that the taxpayers’ winnings were taxable. The key difference was that each of these individuals depended on their poker earnings to maintain their lifestyles. The big question then is does poker qualify as a source of income under Section 3 of Canada’s Income Tax Act?
Rotfleisch notes that these rulings may appear contradictory at first glance. But, the key differentiator lies in the extent to which the taxpayers relied on their poker winnings for sustenance.
“When a taxpayer relies on other means to sustain their lifestyle, poker-playing activities fail to comprise a source of income,”
Rotfleisch explained
These cases are confusing. But they clearly lay bare the complexities of the tax treatment of gambling activities in Canada. Ultimately, to avoid paying tax on winnings, a player should prove they don’t depend on their poker winnings as a primary income source.
Iggy Azalea announces new online casino ‘Motherland’
Celebrity Iggy Azalea has announced a new online casino ‘Motherland’. The project was unveiled with her business partner Joe McCann in Singapore. From November, Motherland Casino intends to utilise the MOTHER token and players will access various casino games, including casino crash games, blackjack, slot games, roulette, and sports betting.
“Motherland is a digital homeland for the crypto community unlike any other. This is all about merging culture and entertainment beyond hype cycles to create long-term value.”
Azalea said in a press statement.
The token differentiates itself by allowing users to wager with popular meme coins like Dogecoin and Shiba Inu. The platform will operate without KYC requirements, offering various options and bonuses for token holders. If you are a token holder, you’ll get exclusive bonuses and access to a VIP community.
However, investors should be aware of the high-risk nature of these tokens. Unlike the main cryptocurrencies, they can lose their entire value.
The token is currently priced at $0.0253, with no minimum investment. You can buy it using various cryptocurrencies or credit/debit cards.
Ohio gambling bill introduced proposing legalization of igaming
A new bill seeking to legalize online gambling, Senate Bill 312, sponsored by District 6 Senator Niraj Antani, is being reviewed. The bill mandates the Ohio Casino Control Commission to work with licensed casinos to determine games that will be legally available online.
If passed, games like poker, roulette, slot machines, and blackjack, will be available online in Ohio.
The proposal has garnered bipartisan support, but the hospitality industry remains concerned. David Corey, executive vice president of the Bowling Centers Association of Ohio, didn’t hide this. He expressed worry that online casinos could detract from brick-and-mortar businesses. That means jobs hang in balance as customers could resort to playing their favorite games at home on their devices.
The bill proposes a 15% tax rate on iGaming, which is 5% lower than the current online sports betting tax rate in Ohio.
Discussions about legalizing top-rated online casinos have been ongoing in Ohio. The bill still has a long way to go since it has just been introduced. It is not expected to have its first hearing until November.
High Court in India rules that Poker and rummy are not gambling
Poker and rummy are games of skill, not gambling, the Allahabad High Court in India has ruled. The court has further directed authorities to reconsider their denial of a gaming license to M/S Dm Gaming Pvt Ltd.
It made this determination in a petition filed by M/S Dm Gaming Pvt Ltd after it was denied a license on January 24, 2024, by the Agra deputy commissioner of police.
The court found that the denial of the license lacked a thorough examination. It emphasized the need for substantial evidence when making such determinations. It blamed the deputy commissioner of police for making a decision based on unfounded assumptions.
The court ordered the concerned authorities to revisit the license application. It expects a reasoned decision within six weeks to ensure the petitioner has the opportunity for a hearing. The court also clarified that granting permission does not exempt authorities from monitoring potential gambling activities, and appropriate actions can still be taken if necessary.
Gambling is governed by the Public Gambling Act of 1867 and influenced by state regulations that vary widely. It has a fragmented legal environment. While some states like Goa and Sikkim have embraced both land-based and online gambling, others impose strict bans. India hinges significantly on the distinction between games of skill and chance. This distinction influences the legal status of various forms of gambling. Skill-based games, such as poker, are widely accepted and legally recognized in many regions.
However, with legal challenges, India’s online gaming sector is experiencing significant growth. Statista projects the industry to reach USD 300 billion by 2026-2027. It would help if the country could adopt clearer regulations to address consumer protection and issues like addiction. Ongoing discussions in Parliament on the Online Gaming (Regulation) Bill highlight the need for a comprehensive framework to govern this burgeoning industry
New network launched for women in Ireland treating gambling-related harm
Ireland has its first network for women harmed by gambling. Dubbed EmpowerHER Recovery Network, it was launched by Extern Problem Gambling. It offers confidential and free services for women to seek help without fear of judgment.
Claire Donegan, the project’s lead, is both an expert by experience and a cognitive behavioural hypnotherapist. She understands firsthand the difficulties women face when recovering from gambling addiction. Donegan expressed her hope to break down the stigma around female gambling addiction, saying, “Women are often afraid to come forward… My hope is that by providing this free, safe space, we can help break down barriers.”
The network offers one-on-one peer coaching, group meetings, and skills workshops to aid recovery. It also provides a recovery toolkit and confidential spaces, empowering women to regain control over their lives.
Data from the Economic and Social Research Institute (ESRI) show that harmful gambling affects 2.9% of the adult female population in Ireland. The figure has risen significantly since 2019.
Barry Grant, a counsellor with Extern Problem Gambling, emphasizes the importance of such services, stating,
“Help-seeking by women in Ireland has always been at disproportionately low rates. We must create a safe space for women to share their experiences.”
said Barry Grant.
The network hopes to address these needs, reduce stigma, and offer a pathway to recovery for affected women. The service is now available across Ireland, providing vital support for women north and south of the border.
New gambling regulations for Norway on the cards
Norway’s Conservative Party (Høyre) is calling to end the country’s state-run gambling monopoly. The party’s latest election manifesto supports opening up the gambling sector. This change could pave the way for a more liberalized market.
Currently, the gambling sector in Norway is only run by state monopolies, Norsk Tipping and Norsk Rikstoto. They offer online gambling, sports betting, lotteries, and horseracing. But, the Conservative Party now advocates for replacing these exclusive rights. Instead, it calls for a licensed system. Such a system, it argues, could boost state revenues and provide better mechanisms to address problem gambling.
This change comes in the wake of Finland’s decision to liberalize its online gambling market in July. The move has spurred political interest in Norway. The manifesto points to the successes of neighbouring Scandinavian countries. It is obviously well-thought, otherwise, Norway risks being left behind.
Høyre’s manifesto was crafted by a committee of Conservative candidates.
The Conservative Party is currently the second largest in parliament. The success of their push will depend on other parties, which have expressed mixed views. Also supporting abolishing the monopoly and implementing a licensing scheme, is the Progress Party.
The Progress Party holds 21 parliamentary seats and has long called for an end to the monopoly. The Liberal Party has also said it will review current gambling regulations in its 2025 manifesto to address concerns about gambling addiction. Meanwhile, the Labour Party, which governs in coalition with the Centre Party, supports the monopoly system.
As the 2025 general election approaches, the debate around gambling reform is expected to intensify. The Conservative Party’s new policy will likely spark discussions among voters and legislators.
This political shift could reshape Norway’s gambling landscape. It may pave the way for casinos with a minimum deposit, better consumer protections, and increased regulation in this growing industry.
Closing Remarks
The gambling industry is undergoing significant change. There’s a growing focus on regulation, innovation, inclusivity and responsible gambling. As discussions about the future of gambling unfold worldwide, we are on the brink of transformation.
At Gamlinked, we make it our business to track these developments. Whether you’re a casual player or a seasoned expert, knowledge is your best tool. So, we bring you updates and insights to keep you informed and engaged in the evolution. That wraps up this month’s Gamlinked news roundup. Stay tuned for next month’s edition!
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