IBIA study: Great Britain ranked as toughest gambling jurisdiction

Great Britain has the most robust gambling regulatory framework, according to an unprecedented study published by the International Betting Integrity Association (IBIA) after research was carried out in 20 jurisdictions across six continents.

Leading global gambling data and intelligence company H2 Gambling Capital was commissioned to conduct the study which assessed the strengths and weaknesses of regulations and fiscal structure for both land-based and online betting.

A points system was introduced where the assessment focused on five key criteria: regulation, taxation, product, integrity and advertising, and Great Britain came out on top with 91 points.

The study concluded that Great Britain had vigorous gambling regulation in place, alongside moderate operator costs and taxation.

It was also forecast that the UK would retain high operator numbers and a high rate of channelisation.

Malta, well known to be an international hub of gambling, finished second with a total of 88 points, where a wide betting product range was permitted and integrity measures have been strengthened.

Denmark finished just two points behind in third, and was praised for a robust but balanced framework that has created one of Europe’s most successful markets.

Yet the report criticised the country’s move away from a moderate gross gaming revenue tax (GGR) that could see onshore channelisation fall, as its government has admitted this might happen.

Nevada was the highest US jurisdiction in fourth with 85 points, due to its long established regulatory regime, and an extremely attractive GGR tax, as well as varied product offerings.

New Jersey, which played an integral part in the repeal of PASPA, finished sixth after its good GGR tax base and strength on integrity was highlighted.

India’s gambling industry finished last out of the 20 jurisdictions reviewed scoring just nine points. The report blamed its unregulated and unlicensed market as gambling is widespread but also prohibited.

As a result, player protections and fiscal returns are absent from the Indian market.

It was also alluded to in the report that the criminal element in the Indian gambling market due to the lack of licensing will continue to flourish.

Canada was next from bottom of the pile on 47 points despite the repeal of the federal single sports betting prohibition and the fact Ontario has signalled that online licences will be available for private operators.

Yet the study found that Canada’s integrity challenges and provincial monopolies are still in tact and offshore channelling is likely to continue.

David Henwood, director of H2 Gambling Capital, said: “Our assessment of the various regulatory models in operation around the world has determined the key factors that are most likely to generate a successful well-regulated betting market: unlimited licensing, competitive GGR tax, wide product offering, integrity provisions and balanced advertising parameters.

“That position and our betting product and integrity evaluation is based on the most extensive and detailed collection of market data that has ever been assembled. The report’s findings are therefore unique and illuminating,” he enthused.

Trade associations including the Betting and Gaming Council, SPER, the European Gaming and Betting Association, Jdigital and the Netherlands Online Gambling Association were all listed as project partners in the study.