Compliance Updates
LEC Introduces Sporting Financial Regulations
To support the long-term financial stability and competitive balance of the LEC, the league is going to introduce new financial regulations – known as Sporting Financial Regulations (SFR) – for the start of the 2024 LoL Esports Season.
The LEC SFR will encourage teams to maintain the total sum of its five highest-paid player salaries below a certain threshold, with teams exceeding the threshold having to pay an excess fee (SFR Fee).
In doing so, the LEC seeks to create a financially sustainable environment for its pro players, partnered teams, and the league itself, allowing all parties to grow at a healthy and scalable pace, and protect the ecosystem from unsustainable spending practices. In addition, the framework will support the league by creating a better competitive balance and more engaging competition, further enhancing the experience for players and fans.
“In the current economic climate, we are dedicated more than ever to creating a sustainable future for our players, teams, and the LoL Esports ecosystem in EMEA as a whole. The LEC SFR, which will come into effect from the beginning of the 2024 Season, is one way in which we’re continuing to work towards our goal of long-term financial sustainability. By doing this, we aim to encourage teams to operate more sustainable businesses to provide job security for players and ensure we serve our fans for decades to come,” said Maximilian Peter Schmidt, Director of League of Legends Esports EMEA.
SFR will encourage each team to maintain the total sum of salaries (known as SFR Spend) paid to the top five highest-paid players in a team within a certain range. The range includes both an upper spending threshold (SFR Threshold) and a lower spending threshold (SFR Floor), with the lower spending threshold amounting to 50% of the SFR Threshold. Meanwhile, the SFR Threshold is calculated based on a number of considerations, including LEC player salaries, League Revenue Pool of the current and forecasted years, team financial data – such as revenue and expenses – and other market indicators. Teams that exceed the SFR Threshold will be imposed with an SFR Fee.
An exception will be made to teams if a player enters into a contract with the team either during or before the end of the 2023 LEC Season Finals. In this instance, the SFR Spend will be reduced by one-fifth of the SFR Threshold or the actual salary amount; whichever is lower.
The policy will be introduced starting from the 2024 LEC Global Contract Start Date (21 November 2023), with the first cycle running until the 2024 LEC Global Contract End Date (18 November 2024).
Compliance Updates
KSA Issues Warning to 711 BV
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The Netherlands Gambling Authority (KSA) has issued a warning to 711 BV, an online gambling provider, for using an influencer to advertise online gambling. This violates the ban on using role models to advertise online gambling. The purpose of these rules is to protect vulnerable groups, such as young people and at-risk and problem gamblers, from gambling advertising.
Role model ban
Online gambling providers are prohibited from using role models, such as professional athletes, actors, models and influencers. The Royal Netherlands Gambling Authority (KSA) has informed 711 that all expressions in which the influencer promotes the gambling provider must be removed. This means, among other things, that the expressions may no longer be seen in the videos. 711 has confirmed that the collaboration has ended and has initiated the removal of the content in question.
The KSA emphasized that gambling providers must be careful about who they use for promotion.
In addition, the KSA addressed 711 about offering tournaments in which players were automatically entered, without having to register or agree to the bonus terms. This can lead to inappropriate gaming behaviour. 711 has confirmed that it has stopped this practice.
The post KSA Issues Warning to 711 BV appeared first on European Gaming Industry News.
Compliance Updates
eGaming Integrity Celebrates Two Years of Independent Compliance and Audit Expertise
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eGaming Integrity Ltd marks its two-year anniversary, celebrating a period of growth, trust, and continued delivery of independent regulatory, compliance, and audit expertise to eGaming operators, suppliers, and Corporate Service Providers.
Founded by former regulators and senior compliance leaders, eGaming Integrity was established with a clear mission: to help protect licences and reputations through practical, regulator-ready assurance. Two years on, the firm continues to provide objective, expert support designed to strengthen governance and reduce regulatory risk.
A Trusted Partner for Assurance
In just 24 months, eGaming Integrity has become a trusted partner for organisations seeking confidence in their control environments. The team delivers:
- mock regulatory audits and inspection readiness;
- independent internal audit programmes;
- targeted remediation and advisory support.
Emma Shilling, Director, highlighted the firm’s commitment to meaningful, independent assurance: “Reaching our second anniversary is a proud moment. From day one, our focus has been to provide independent assurance that adds real value. We help embed governance and compliance into everyday operations to protect licences and reputations for the long term.”
Robert Penfold, Head of Internal Audit, highlighted the importance of objective insight in strengthening client operations: “Over the past two years, eGI has shown how truly independent audit and compliance support can reduce risk and give boards confidence that controls are working as they should. Our role is to provide clear, workable solutions that prepare businesses for scrutiny and support their ongoing success.”
Looking Forward
As it enters its third year, eGaming Integrity remains committed to delivering expert,
impartial, and commercially practical assurance. Whether preparing businesses for regulatory engagement, providing independent internal audit services, or supporting targeted remediation, the firm’s goal remains simple: to be the trusted partner that helps protect licenses and reputations.
The post eGaming Integrity Celebrates Two Years of Independent Compliance and Audit Expertise appeared first on European Gaming Industry News.
Compliance Updates
Regulators Call for Stronger Measures Against Illegal Online Gambling
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Regulators of Austria, France, Germany, Great Britain, Italy, Portugal and Spain issued a joint institutional statement.
The fight against illegal online gambling is one of the paramount tasks facing regulated jurisdictions. Its borderless nature and the speed of technological innovation make it easier for illegal operators to evade regulatory oversight. This creates significant risks for consumer and public health protection, endanger public order and harms the activity of legitimate operators. In short, illegal online gambling undermines the entire regulatory framework designed to protect the public interest.
The statement reads: “We express our common concern regarding the increasing proliferation of advertising targeting our jurisdictions by unauthorised operators, particularly through digital channels such as social media, video platforms, and affiliate networks. These activities not only violate our national laws but also expose citizens — including minors and vulnerable individuals — to significant risks associated with illegal gambling.
“We wish to express our strong commitment to consumer protection, market integrity, and compliance with national and international regulations within the respective legal framework by:
• sharing information on illegal operators among us
• calling on digital platforms and social media networks to strengthen their control mechanisms to prevent the dissemination of advertising content from unauthorised operators
• reaffirming our commitment to share knowledge and better practices in identifying, investigating, and sanctioning operators acting outside the law.
This statement marks a renewed and united commitment by our jurisdictions to strengthen the integrity of the regulated gambling sector and to protect citizens from the risks posed by illegal gambling activities.”
The post Regulators Call for Stronger Measures Against Illegal Online Gambling appeared first on European Gaming Industry News.
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