Compliance Updates
PRIZE DEBT: CALLS TO REVIEW GAMBLING REGULATIONS AS CONSUMERS RACK UP MILLIONS ON CREDIT CARDS
· Consumers spent £117m on credit cards entering prize draws and competitions, which are not currently regulated by the Government, in a bid to win dream prizes(1)
· Promise of a charitable donation makes nearly half of participants more likely to enter
· Jumbo Interactive calls on the UK Government to regulate the growing prize draw and competition market and for a clampdown on credit cards use
The UK Government is being urged to review current gambling regulations, as new research reveals consumers are racking up millions on credit cards entering popular prize draws and competitions.
The research from Jumbo Interactive found consumers spent £117m on credit cards entering prize draws and competitions in the last year, which due to a loophole, are not currently regulated in the same way as lotteries and raffles.
The study found nearly one in 10 people who entered ‘big ticket’ prize draws, offering the chance to win multi-million pound houses or luxury cars, or prize competitions, have ended up in debt as a result.
Using credit cards to gamble was banned in April 2020, but a loophole in regulation means there are currently no restrictions on commercial prize draw or prize competition companies. For prize draws, this is because they offer “free” entry methods, where it’s possible to play by post for the cost of a postage stamp. Yet, despite this ‘free to enter’ route, an estimated £860m was spent on entries into prize draws in the last year[iii].
Prize draws and competitions that promise a donation to charity also makes 45% of participants more likely to enter, yet over half of players (57%) admit to not checking how much actually goes to good causes.
Jumbo Interactive is now calling for greater regulation of the growing prize draw and competition market, highlighting significant consumer protection concerns over credit card debt, as well as a lack of transparency around prizes and charity donations from entry fees.
It is also urging consumers to check the T&Cs as there is little enforcement of minimum donation percentage for prize draws and competitions. This compares to regulated society lotteries, which give a minimum of 20% of gross ticket sales and often over 50% to good causes.
Nigel Atkinson, UK General Manager, Jumbo Interactive comments: “A huge amount is being spent on credit cards on prize draws, pushing people into debt – despite the free entry option being the reason they are exempt from oversight. With so much money changing hands, the government needs to look at the proper regulation of prize draws and competitions to better protect consumers.
“For many, the fact that some of the cost of entering prize draws and competitions goes to charity is a big part of why they enter. But it remains easy for companies to bury information in the terms and conditions about how much actually goes to charity. Society lotteries on the other hand have minimum donation rates and help raise funds for a wide range of important causes, large and small. Public trust is crucial for society lotteries to operate successfully, and increased regulation of the prize draw and competition market will offer that consistency and transparency.”
Tony Vick, Chair of The Lotteries Council, adds: “The Lotteries Council is increasingly concerned about the use of prize draws operated by commercial gambling companies which are marketing themselves in a similar way to charity lotteries. Lotteries face a series of legislative hurdles that restrict our ability to grow and raise funds for good causes while prize draws face no limits on how many tickets they can sell, what prizes they can offer, and choose whether and how much to give to any charity. We hope the Government looks at this to ensure a fairer playing field.”
Falling foul of scams has also been an issue for 15% of entrants, including paying money for postage on a prize that never arrives, paying a significant amount of money on phone calls or texts to enter a competition without it being clear that it would cost that much, or winning a prize that turned out to be of less value than advertised.
Notably, 72% of those who enter lotteries, draws or competitions think prize competitions and prize draws should be regulated in the same way as gambling.
Alex Lieblong
Arkansas Casino Seeks iGaming Approval
An Arkansas casino is seeking approval to operate an iGaming app, allowing people within the state to go online to play casino games such as slots, blackjack, craps and more.
On March 13, Carlton Saffa, Chief Market Officer for the Saracen Casino Resort in Pine Bluff, wrote to Arkansas Racing Commission Chairman Alex Lieblong asking for a change in the rules to allow Internet casino gambling, which is often referred to as iGaming or iCasino platforms.
On Monday, Saffa told Gambling.com he hopes to appear before the Arkansas Racing Commission on May 6 seeking approval to offer iGaming. The Arkansas Racing Commission regulates all gambling matters in the state including horse racing and casino games.
iGaming Doesn’t Hurt Bricks-And-Mortar Casinos: Saffa
Nationwide, only a half dozen states from Michigan to Connecticut offer Internet casino gambling. Arkansas would be the first in its region with iGaming, permitting users who want to log onto a computer or download an app to play traditional casino games for money. Other states in the region already offer sports betting.
In his March 13 letter to state regulators, Saffa said estimates indicate Internet casino gambling from the Saracen Casino Resort alone would generate an additional $12 million in taxes annually for the state. Internet casino gambling, or iGaming, generally raises more tax revenue than sports betting in states that have both.
However, in some states without iGaming, casino operators have fought legalization, contending customers won’t visit a bricks-and-mortar casinos and spend money at restaurants and on other amenities including entertainment and lodging if they can log onto cellphones or computers and gamble from anywhere. In his letter to state regulators, Saffa pointed to research showing iGaming doesn’t cannibalize bricks-and-mortar casinos but instead gives them ‘a lift’.
State Rule Change Required
Arkansas already allows online poker, though that has not been made available to consumers, Saffa said. He said the ability to allow iGaming would require the Arkansas Racing Commission to amend a rule to include Internet casino games in addition to the currently legal online card games such as poker.
“A solution exists by amending ARC Rule 5, which already authorizes online poker, to include other types of table games and slots,” Saffa told Gambling.com on Monday. “Doing so would provide significant tax revenues to government and, just as important, ensure that operators be held accountable by the government. Given that we have seen online operators in the fantasy sports space ignore cease and desist demands from the state, merely attempting to police the matter is not a workable solution.”
Saffa recently made a similar argument on the topic of unregulated gambling, telling Gambling.com on The Edge he opposes a ban on college player props bets, saying, “Sunlight is the best disinfectant.”
“People in Arkansas are already gambling in online casinos and those companies are not regulated or taxed by the Arkansas Racing Commission,” Saffa said Monday. “Those companies are not held to the standards the people of Arkansas set forth for operators to include that a customer must be 21.”
Australia
Venues Warned to Play by the Rules on ANZAC Day
Liquor & Gaming NSW is urging licensed venues across the state to plan ahead and have proper measures in place to ensure safe and responsible ANZAC Day commemorations.
Pubs and clubs can face additional challenges on April 25 that come with managing larger than normal crowds and the playing of two-up.
Two-up was a popular game among World War I veterans and, while illegal as an unregulated form of gambling most of the year, is legally played every ANZAC Day, Remembrance Day and Victory in the Pacific Day in their memory.
Liquor & Gaming NSW Executive Director Regulatory Operations, Jane Lin, said inspectors would carry out checks of licensed premises in Sydney and regional areas on ANZAC Day to ensure compliance with the state’s liquor and gaming laws.
“Two-up is a great Australian tradition and a way for people to come together at pubs and clubs to enjoy the ANZAC spirit,” Lin said. “While venues do not need a permit to host two-up, they are encouraged to fully understand and observe the traditional rules of the coin-tossing game.
“Licensed venues are reminded to properly manage potential risks linked to larger crowds, increased rates of intoxication, gambling disputes, extended high volume trading and special ANZAC Day liquor promotions.”
Venues’ advertising and promotions must align with liquor promotion guidelines.
More information about ANZAC Day in New South Wales is available at https:/ /www.NSM.gov. au/about-nsw/anzac-day-nsw. Two-up rules can be found at https:/ /www.LiquorAndGaming.nsw. gov. au/__data/assets/pdf_file/0007/858562/fs3098-two-up-factsheet. pdf.
The post Venues Warned to Play by the Rules on ANZAC Day appeared first on European Gaming Industry News.
Compliance Updates
Boldplay Awarded UKGC Licence
Boldplay, the renowned provider of premium casino games, has been awarded a remote operating licence from the UK Gambling Commission, to sit alongside their existing licenses in Gibraltar, Malta, Romania, Argentina, and Peru.
This latest development marks a significant step for the company and further solidifies Boldplay’s position as a trusted provider within the iGaming industry. The UKGC licence will allow the company to further expand in regulated territories, a key element of their growth plan, and establish new partnerships within the vibrant UK market.
Having fulfilled the criteria to provide services to UK players Boldplay is well-positioned for success. With a diverse catalogue of over 100 titles, ranging from slots and table games to bingo, keno, and virtual scratch cards, the company is well-known for its innovative features, including their trademark Boldplay Spins.
Speaking of the UK Gambling Commission’s decision to grant the operating licence, Boldplay CEO, Valli Fragoso, said: “We are proud to receive our remote software supplier licence from the UK Gambling Commission. This milestone reflects our commitment to providing high-quality, engaging casino games to licensed operators while upholding responsible gaming standards. We can’t wait for UK players to try our games.”
The post Boldplay Awarded UKGC Licence appeared first on European Gaming Industry News.
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