The month in regulation: deposits, departures and database management

Opposition grows to Swedish deposit and bonus cap restrictions as firms warn of exodus

Sweden’s largest regulated gambling firms have criticised the government’s proposal to introduce deposit and bonus restrictions, claiming it could eventually lead to operators exiting the market.

In a letter authored alongside trade association BOS, the bosses of Betsson, Kindred, LeoVegas, William Hill and NetEnt claim the new regulations are out of step with the initial aims of creating a safer gambling environment through regulation and will instead fuel the black market.

The CEOs of Betway, Casumo, ComeOn Group, Hero Gaming, Quickspin, Supranation and Videoslots also joined in opposing the new proposals later on in May.

Regulations imposing a SEK5,000 weekly cap on player deposits as well as a SEK100 cap on operator bonuses were unveiled by Swedish authorities in April. However this has since been amended to apply to online casino operators only, not to sports betting firms.

In its consultation response to Swedish government proposals, the SGA questioned the SEK5,000 a week deposit limit threshold, insisting most Swedish players do not gamble to that level.

The SGA further stated that between 5-25% of all Swedish players accounted for between 80-90% of total sales, meaning the larger proportion of players would be unaffected by the proposed changes.

Spain appoints new gambling regulation chief amid reshuffle

Spain’s council of ministers has appointed Mikel Arana as the new director general of the General Directorate for the Regulation of Gambling (DGOJ).

Arana replaces long-standing DGOJ director general Juan Espinosa Garcia, who resigned earlier in May after four years at the helm of the regulator.

Espinosa revealed he had resigned in an email seen by EGR, in which he said his time at the DGOJ had been a “challenging yet incredibly rewarding time”.

“With all the transformation that the betting and gambling industry and society itself have gone through all these past years, one can only hope that our delivery here has contributed to the public interest of society being reinforced,” said Espinosa.

Gambling Commission urges reverse withdrawal block in new Covid-19 standards

The Gambling Commission (UKGC) has published new Covid-19 guidance for operators which includes the cancellation of reverse withdrawals and the cessation of bonus offers to at-risk players.

Under the new guidance, licensed operators are advised to block reverse withdrawals for customers until further notice and must not offer bonuses or promotions to customers displaying any indicators of harm.

Several other measures, including a review of existing harm triggers for new customers, are included in the guidance while the UKGC has also called on operators to increase monitoring of players to ascertain a greater understanding of how player habits have changed during the coronavirus lockdown.

In addition to the main changes on bonusing and withdrawals, the UKGC has further called on operators to interact with players who have gambled for more than one hour in a single session to mitigate any potential gambling-related harm which may occur.

Dutch government to outlaw use of existing player databases

Operators seeking a licence in the Netherland’s regulated online gambling market will be banned from utilising player databases acquired during the unregulated era, according to the Dutch government.

Responding to questions in parliament, Minister of Justice and Security Sander Dekker confirmed all prospective licensees would only be allowed to offer licensed gambling to newly acquired customers.

Justifying his stance, Dekker claimed existing operator databases would not be compliant with new Dutch standards.

“The old database therefore does not meet the requirements of the new regulations and should therefore not be used,” Dekker added.

Dekker said while there may be “consequences” for channelisation in the new Dutch market, the objective of protecting consumers superseded any other concerns.

In enforcing this, Dekker added the Dutch government would introduce licensing requirements to prohibit prior database use, with the aim of introducing a level playing field for all prospective operators.

Kindred Group to fight new Norway banning order

Kindred Group will continue to accept Norwegian consumers despite being dealt another blow by the country’s online gambling regulators.

The operator’s 2019 Norwegian gambling ban was upheld this month by the lottery authority (Lotterinemnda), which adjudicates on complaints and operates under the Ministry of Culture.

Kindred Group offers betting and gaming services to Norwegian customers via its Trannel International subsidiary and Maria Casino, Unibet and Storspelare brands.

Kindred had previously appealed the decision on the grounds it is headquartered in Malta and that its Malta Gaming Authority (MGA) licence grants it the right to offer gambling in Norway.

But the appeal was quashed after the lottery authority suggested Kindred offered deposits and prizes in Norwegian currency, as well as Norwegian linguistic support and the use of Norwegian brand ambassadors, including chess maestro Magnus Carlsen.