Syndicates, algorithms, and beating the horses in Hong Kong

By Andrew Tottenham

Managing Director, Tottenham & Co

In news articles, we occasionally hear about betting syndicates making large bets on races and sporting events, along with accompanying expressions of concern that they bring corruption to sports. But is this true? Are syndicates a malign influence? Do they bring the risk that players will throw matches or that jockeys will pull a horse to make sure it loses?

We need to be clear here that there are two types of syndicates: one a criminal enterprise that does seek to influence the outcome of matches or races so that their bets win, the other a group that uses mathematical methods to determine whether the odds offered reflect the “true” (or as near to true as possible) probabilities of the outcome of that event, and whether a bet placed has a better chance of winning than the odds would suggest.

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Italy's first move towards the regulation of remote gambling B2B operators

By Val é rie Peano

Attorney-at-Law, EGLA - European Gambling Lawyers & Advisors

The Italian Government has just issued the Fiscal Law Decree, which is intended to introduce new fiscal measures jointly with the Budget bill for 2020.

Not surprisingly, fiscal measures on gambling have also been introduced. One of these has, however, attracted greater attention since it introduces compulsory registration into an official unique Register for all gambling operators active in Italy. This registration is compulsory not only for all gambling licensees but also for any other related operators active in the offline and online gambling offer, including the holders of remote gambling accounts toping-up points of sales and the producers of remote gambling platforms.

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Madrid suspends gambling authorisation

iNTERGAME - 19 November 2019

In another manifestation of the push back against gambling that is spreading throughout Europe, the Madrid Regional Government has decided to suspend all new authorisations of betting venues within the region. Regional Minister of Justice Enrique Lopez has said the region has “declared war” on gambling and is looking into ways to reform the licensing process for the existing venues. What is clear, and we are seeing it in jurisdictions all over the world, is when there is a perception of too much gambling around, including online, there will be a backlash. (AT)

Spanish betting operators reach consensus on advertising controls

SBC News - 15 November 2019

The Spanish online gambling trade association, jdigital, is trying to get ahead of the curve by offering to follow a voluntary code of practise before the implementation of Royal Decree that would ban all advertising of gambling products, except lotteries. Spain’s government has been frozen due to no party having overall control, but elections earlier this month allowed the socialist party, PSOE, and Podemos, a far leftist party, to agree to form a coalition. Time will tell if the code of practise will be sufficient to ward off further curbs on the industry. (AT)

Latvian Parliament approves higher gambling taxes

iGaming Business - 15 November 2019

Land-based gaming in Latvia will be subject to higher taxation from January 2020 after the country’s parliament approved proposals to increase the levy on slot machines, roulette, cards, and dice games. The tax on slots machines will take a sizeable 25% leap from €4,164 to €5,172, while casinos will see the levy on each gaming table increased by 20%, from €23,400 to €28,080. Where currently three-quarters of the tax income is claimed by the state, with the rest going to the local government in the corresponding regions, from January the central government will claim 95%. But despite its rapid growth in recent years, igaming has been excluded from the tax overhaul. (HGS)

Whistle-to-whistle ban needs further consideration

Gaming Insider - 15 November 2019

This month Gambling Insider takes a critical look at the voluntary ban in the UK on TV advertising during big sporting tournaments. While the ban has led to fewer gambling-related complaints to the Advertising Standards Agency (ASA), the magazine highlights pitfalls in the plan; such as major tournaments recently being screened outside of watershed hours (5.30am-9pm). Operators claim not to have seen a reduction in revenue as a result of the ban. Indeed, the magazine says they have just moved their ad spend online. This may be a far riskier environment for customers, because while the ASA does have jurisdiction, enforcement is more difficult. (HGS)

Halifax joins HSBC in letting customers block cards from gambling

The Guardian - 15 November 2019

The Guardian reports that Halifax has become the latest British high street bank to enable its customers to block gambling operators. It’s a trend that has gained traction since mobile-only banks Starling and Monzo introduced the feature last year. And the bank’s self-exclusion feature stays in place for 48 hours after the customer has requested it to be lifted to prevent an unintentional return to problem gambling. HSBC also announced a similar move this month. While there is a take up of these facilities by banking customers, some may question whether banks are the appropriate place for such intervention to occur. (HGS)

Czech Minister pledges exclusion scheme launch in mid-2020

iGaming Business - 14 November 2019

Following on from the regulation of online gambling in the Czech Republic in 2017, the country’s finance minister has announced that a self-exclusion scheme will go live next year. The national register will include those that have self-excluded from gambling, as well as those on welfare or who are bankrupt, plus people who have received treatment for gambling addiction. Finance minister Alena Schillerová has said that the details will be published in the new year and tested before a full roll out in mid-2020. Speaking at a national gambling conference in Prague on 5 November, Schillerová hinted at an evolving legislative environment as the Czech Republic adapts to its growing regulated market. (HGS)

Dutch regulator must avoid Spelinspektionen's mistakes

Gambling Insider - 12 November 2019

Gambling Insider has hinted that the Dutch regulator Kansspelautoriteit (KSA) should learn from teething problems experienced by its counterpart in Sweden during its first year as the watchdog for a liberalised gambling market. Pointing to Spelinspektionen’s decision to revoke the license of Global Gaming subsidiary SafeEnt in August, the magazine says CEO Tobias Fagerlund was made aware of the decision eight minutes prior to a press release making the decision public. Dubbing it a “difficult year” for the Swedish regulator, the magazine urges KSA to learn lessons from existing regulators before it launches its first licensing process for online operations on 1 July 2020. (HGS)

Italy seeks to shrink its online gambling field by 2023

SBC News - 14 November 2019

Gambling companies, as well as tobacco and alcohol firms, have been ruled out of sponsoring West Ham United Football Club’s home ground, London Stadium, despite it suffering mounting losses of between £25m and £30m per year for lack of a sponsor. As part of the London 2012 Olympic site, the stadium is owned by the London Legacy Development Corporation. Vodafone had been lined up for a £20m six-year naming deal but pulled out in 2017. Weirdly, given the prominence of the site and its tenant, the stadium has remained unsponsored ever since. Meanwhile, this summer, Betway signed a six-year shirt sponsorship deal with West Ham. (HGS)

Gaming Commission rejects MPs' unfit accusations

Gambling Insider - 4 November 2019

One of the problems facing regulators that crack down hard on an industry for past transgressions is that they can then be perceived as having been ineffective because operators were “getting away with it” for so long. The British parliament’s All-Party Parliamentary Group on Gambling Related Harm (APPGRH) has said exactly that in its recent report. The report described the UK Gambling Commission as “not fit for purpose” and that the Commission’s lack of action allowed operators to “prey on vulnerable gamblers.” The UKGC has publicly rejected these charges and said it acts when it finds wrongdoing and continuously updates its regulations to maintain the right level of control.

It should be noted that the APPGRH is hardly a group of open-minded thinkers. At a hearing in September, the group’s Chair, Carolyn Harris, MP, proposed that the industry executives who had come to give evidence apologise to those who had experienced gambling-related harm! I’m not sure why she thought that would be a good idea, but nobody took her up on the suggestion. (AT)