Publication date: 03 Jul 2023
June 2023 was full of momentous events in the world of gambling and betting! Two landmark jurisdictions, Malta and Curacao, are about to undergo important changes. South America is rapidly adopting laws governing gambling. 3S.INFO has all the news that may affect IGaming in the near future!
- Incidentally, analysts have estimated that the global iGaming market will grow significantly by 2027, by 11% to $150.5 billion. Technavio estimates that the Asia-Pacific region will account for the most – 39% of the market. The second most promising GEO will be North America, where growth will be driven by the increasing popularity of mobile betting apps.
Undoubtedly, the brightest news of June is from Malta. On 23 June 2023, many sources published news with the message “Malta has started an iGaming war against the European Union”.
So, what happened? The island’s authorities have passed Act 55, enabling operators with a Maltese license to accept players from EU countries.
What does this mean? Recall that many European states issue their own gambling licenses and reasonably assume that in order to attract players from their country, a local license must be obtained. Malta, on the other hand, refers to EU legislation and the principle of free movement of goods and services, so brands with its license are legal throughout the EU. However, the European states considered iGaming to be neither a product nor a service, so taxes should remain in the country where the players generate revenue. After a series of lawsuits and fines, the Maltese authorities addressed the issue drastically. Today the new law N55 simply removes responsibility from Maltese gambling companies for violating iGaming laws of other EU countries. What will come of this is still unknown. We will certainly be keeping an eye on developments though!
Another important jurisdiction, Curacao, is also not far behind in terms of news importance. A stricter regulatory regime for the gambling industry will come into effect here from 1 September 2023.
The country’s Parliament is currently considering a new law, the National Ordinance on Games of Chance Curacao gaming license (LOK).
There are plans to introduce an entirely new regulatory body, the Curaçao Gaming Authority (CGA), to prevent any undesirable and illegal activities. The current system of master and sub-licenses will be abolished and Curaçao will start issuing direct licenses to gambling operators. Doing so will help the CGA monitor operators with a Curaçao license and prosecute them according to internationally acknowledged standards.
“We demand transparency on the sources of funds coming into our country. We insist that operators adhere to legislation complying with reputable jurisdictions as well as at least the minimum requirements of international anti-money laundering laws and guidelines,” said Curaçao Finance Minister Javier Silvania.
In June, the most exciting news from the world of gambling and betting is from South America!
Three states at once – Brazil, Peru and Chile – have delighted us with the latest news.
Seems like we’ve finally got the positive news! The Brazilian government has announced that a law to regulate online gambling will soon be passed. José Mansur, advisor to the Brazilian Ministry of Finance, even named the date of July 17!
Interestingly too, the official said at the same time that AI tools would be used to control sports betting and prevent fraud! “Investment and agreement on the use of technology and artificial intelligence will be key to regulate and prevent possible dubious betting,” Mansur clarified in a statement.
As a reminder, Brazil aims to receive 16% of gambling companies’ revenues. This will provide about 300 million dollars to the budget each year.
And on 18 July 2023, Peru’s new Law No. 31,806 on gambling, passed in June, will come into force. This is an amendment to the current law, which was imperfect and actually exempted foreign operators from paying taxes. Therefore, gambling operators must now pay a license fee of $814,000 (the cost has tripled!) or 3% of net profits as well as pay a 12% tax to operate with an audience from Peru.
Gamblers in Peru will now only be able to bet on sports events that are part of national or international sports associations, federations or leagues.
- The amendments establish a “point consumption” regime: all online casinos are now required to use a Peruvian domain address: (.bet.pe / .bet/ .bet/ .com/ . pe/.com.pe).
- Under the new rules, operators must implement “know your customer” (KYC) requirements. This includes verifying the identity, age and nationality of consumers accessing gambling services.
A bill on gambling has been approved in Chile. The new document, proposed by the Ministry of Finance in June 2023, would make online gambling and betting on the internet legal. Five-year gambling licences in Chile will be issued on the basis of a tender. Both foreign and local companies can participate, as long as they meet the legal and financial requirements.
Gambling regulation is expected to bring in $50 million a year to Chile’s budget.
Legalization of gambling and betting: new regulation
Sri Lanka is keen to develop gambling! As part of the new bill, a new regulator, the Gambling Regulatory Authority (GRA), will be created in the country.
The new agency will control the gambling industry in the country, deal with its development, collect taxes and counter illegal gambling.
Sri Lanka’s gambling license is planned to cost operators $1.3 million. The country will receive 40% of casino and bookmaker revenues.
Australia also plans to introduce a new national regulator. The country’s parliamentary commission has published more than 30 recommendations as part of an investigation into the effects of online gambling. One of them is to bring online gambling regulation and licensing under state control. Meanwhile, Australian states and territories would retain the right to levy taxes on online casinos.
As well, lawmakers intend to impose a 3-year total (media and social networks) ban on advertising.
More good news! By 2026, Finland plans to abolish its monopoly on online gambling. By that time, the authorities are going to introduce a new licensing system for online casino operators and online sports betting.
At the moment, only Veikkaus operator provides gambling services in Finland. The drafters of the new bill specify that “the existing gambling policy has been flawed. Unregulated operators have an edge over Veikkaus since they can generate income without paying licensing fees and taxes”.
Finland’s new gambling licensing system will provide more funds and resources to ensure effective supervision, with a particular emphasis on combating money laundering.
Restrictions on gambling advertising: where to wait?
France is also developing new requirements for gambling advertising. The new draft stipulates that any advertising message on the Internet must contain at least 15% information on the impact of gambling addiction and available help for addicts. For video ads, the requirement is at least 5 seconds at the end of each clip.
In Canada, they are thinking about strict regulation of gambling advertising. Local lawmakers are drafting a bill that would prevent famous athletes from participating in commercials. There will also be limits on advertising unrelated to the broadcasting of an event, as well as tighter controls on the quantity and placement of such advertising. These measures are expected to help counter the development of gambling addiction among the country’s residents.