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BGC Urges UK Chancellor to Drop the Proposed New Gambling Tax Simplification Measure

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The Betting and Gaming Council (BGC) has urged the UK Chancellor against using a proposed new gambling tax simplification measure to further raise taxes which will threaten sports including horse racing.

In the Autumn Statement, the Government confirmed it will consult on new proposals to bring remote betting into a single tax, replacing the current three-tax structure.

General betting duty and pool betting duty are set at 15% of operator profits, but remote gaming duty, levied on games of chance such as online casino, is set at 21%.

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Any hike in betting duty would likely lead to lower margins on racing, fewer offers for punters and less funding to sponsor and promote the sport.

The tax threat comes as revenues are already being stretched by so-called affordability checks on customers, plans to replace the current voluntary levy with a new statutory levy to fund Research, Education and Treatment to tackle gambling related harm and spiraling costs for betting operators to support horse racing.

Michael Dugher, Chief Executive of the Betting and Gaming Council, said: “Any further new tax rises could be a hammer blow for horse racing’s finances, which are already threatened thanks to measures proposed by the Government in the recent white paper.

“This is a sport which relies heavily on betting operators for its success and yet the Government appears determined to draft in measures which shrink the industry with huge ramifications for other sectors, like horse racing.

“What’s worse, the Treasury didn’t bother to consult or even inform DCMS, which is the department responsible for betting and racing. It seems they are high on tax but low on joined up government.

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“There are genuine fears that any so-called simplification of the current tax structure will be nothing more than a Trojan Horse to further raise taxes on businesses.

“This has the potential to risk jobs and investment, and undermine the competitiveness of British horse racing on the global stage, placing its rich history and heritage in peril.

“We were promised an Autumn Statement that would deliver growth – the only thing growing is the list of worries for the betting and horse racing industries”.

The proposed new tax simplification plan comes soon after the Government’s White Paper, published in April, which included measures that will cost online operators in excess of £895m in Gross Gambling Yield.

And comes as bookmakers are preparing to make a record contribution to horse racing next year – with the bill for media rights forecast to increase by nearly £30m.

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The Betting and Gaming Council’s five biggest members for horse race betting, Entain, Flutter, bet365, 888/William Hill and Betfred, expect to see a record cost increase to broadcast races.

In 2022, BGC members paid £270.1m for the rights to live stream races for customers and show them in bookmakers.

But that cost is forecast to rise to £285.3m this year, an increase of 5.6%, with members estimating a further increase to £315.2m in 2024, a further bump of 10.5%.

The forecast costs come after the BGC announced their members directly contributed £384m to British horse racing last year in levy, media rights and sponsorship deals.

In addition, bookmakers spent £125m on marketing to promote racing and betting through advertisements and partnerships.

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Horse racing is the second biggest sport in the UK, second only to football, with more than five million people attending around 1400 fixtures annually across 59 racecourses.

However, its popularity is in decline. In 2007, 17% of the population participated in horse race betting in the previous year, but that fell to 10% in 2018.

The Department for Culture, Media and Sport has committed to reviewing the Horseracing Levy by next year.

The Horseracing Levy, which is administered by the Horserace Betting Levy Board, goes towards improving the sport, breeding and boosting veterinary care.

Betting operators are working closely with the British Horseracing Authority and racing stakeholders on much needed reforms to the fixture list and race programme which should increase commercial returns from the levy and media rights.

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Betting shops support 42,000 jobs on the UK’s hard-pressed high streets, generating £800 million a year in tax to the Treasury and another £60m in business rates to local councils.

But this contribution is under threat, the combined impacts of recent regulatory reforms and Covid lockdowns have forced the closure of over 2000 shops with the loss of 10,000 jobs since 2019.

The wider regulated betting and gaming industry contributes £7.1bn to the economy, generates £4.2bn in tax and supports 110,000 jobs.

The BGC has repeatedly warned changes to the regulated betting and gaming sector by the Government must not risk forcing customer to the unsafe gambling black market online.

A study by PWC showed the number of customers using an unlicensed betting website has grown from 210,000 to 460,000 and billions is being staked.

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Each month in Great Britain around 22.5m adults have a bet and the most recent NHS Health Survey for England estimated that 0.4% of the adult population are problem gamblers.

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WA.Technology Announces Membership with AIEJA in Mexico

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WA.Technology has successfully become an official member of AIEJA, the esteemed Mexican Association for Permit Holders, Operators, and Suppliers of the Entertainment and Gambling Industry.

Axel Antillon, Regional Director of LATAM for WA.Technology, expressed his enthusiasm for this new partnership, stating, “Joining AIEJA not only strengthens our foothold in the Mexican market but also aligns us with the top industry leaders dedicated to promoting transparency and innovation. This membership is a testament to our commitment to delivering secure, high-quality gaming experiences.”

AIEJA plays a crucial role as a civil association aimed at fostering a collaborative environment where members can enhance their dialogue capabilities. This association is instrumental in highlighting the entertainment and gaming sectors’ economic, tax, and social contributions to Mexico.

The association’s collective efforts are focused on advocating for responsible practices within the industry, pushing for legislative reforms concerning the General Law of Gaming and Lotteries, safeguarding against potential unfair practices, and endorsing equitable labour conditions for both direct and indirect employment opportunities created by the sector.

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WA.Technology’s deepening commitment to the Mexican iGaming market is reflected in its decision to join AIEJA. This membership assures operators of robust support in their market entry decisions, offering them a secure, efficient, and compliant integration into the Mexican market. Membership also verifies that WA.Technology adheres to all necessary security measures, cyber protection, and development protocols, ensuring their products meet the highest quality standards.

As a key supplier in the region, WA.Technology reinforces investor confidence and consumer trust by aligning with local regulations, best practices, and control measures.

 

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XSOLLA RELEASES QUARTERLY ​ INSIGHTS REPORT ON THE FUTURE OF GAMING AND GAME DEVELOPMENT: A PRELIMINARY ANALYSIS OF SPRING 2024 METRICS AND UPCOMING TRENDS

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Key trends include the fast-growing mobile gaming segment, the impact of recent regulations, the integration of blockchain and AI, and the investments in equity and inclusion across the gaming industry.

Xsolla, a global video game commerce company, published the Spring 2024 edition of “The Xsolla Report: The State of Play” today. Launched on the heels of the Game Developers Conference (GDC) 2024, this extensive report provides invaluable insights into the emerging trends and pivotal shifts impacting the gaming industry in the short and long term. ​ It sets the stage to significantly shape the future of mobile gaming, deepen academic connections within the gaming ecosystem, and redefine investment patterns.

In an era where mobile gaming commanded a 49% share of the global market in 2023, this edition of “The State of Play” sheds light on the evolving landscape of mobile gaming. The report navigates through the advancements in global compliance and regulation, including the Digital Markets Act in Europe’s new player engagement strategies, offering a glimpse into the potential future of mobile gaming monetization and distribution. It discusses the impact of cross-platform play and the importance of innovative monetization models, providing actionable insights for developers and industry stakeholders.

“The State of Play” emphasizes the importance of academia in the growth and diversification of the gaming industry. It explores how educational programs and initiatives develop talent and promote diversity and inclusivity within the gaming community. This edition underlines the symbiotic relationship between the gaming industry and academic institutions, highlighting programs that significantly impact students and the industry.

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Berkley Egenes, Chief Marketing and Growth Officer at Xsolla, comments: “As we introduce the latest edition of ‘The State of Play,’ we’re not merely sharing industry insights but advocating for a transformative vision: Equal Access for Everyone. This initiative goes beyond our commitment to innovation and growth within the gaming industry. It’s about breaking down barriers to ensure that every developer, regardless of company size, has the opportunity to showcase their creativity and reach a global audience. Our focus is on providing platforms and tools that foster creative opportunities, international exposure, and the development of unique projects, ensuring that the future of gaming is accessible to all. We aim to empower every player and developer worldwide, ensuring the gaming landscape is as diverse and dynamic as its community.”

The report offers an in-depth analysis of the gaming industry’s current investment climate, including funding trends, mergers, and acquisitions. It outlines the shifts in investment patterns, from the heights of the pandemic-induced boom to a more measured approach in 2024. “The State of Play” provides a roadmap for navigating the industry’s financial aspects, offering insights into strategic investment opportunities and forecasting future trends.

Featuring expert commentary from industry voices like:

  • Mukul Aurora, Co-founder of Appsoleut Games;
  • Mariusz Gasiewski, CEO of Mobile Gaming and Apps Lead at Google;
  • Karla Reyes, Founder and Studio Director,

Anima Interactive, the Xsolla Report: The State of Play is now available for complimentary download. To secure your copy and gain invaluable insights into the gaming industry, visit our website.

 

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TIPICO CROWNED 2024 SBC RISING STAR OF THE YEAR

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Tipico, a leading sports betting and iGaming operator, has been named the 2024 SBC Rising Star of the Year. The honor was announced and presented to Tipico at the fourth annual SBC Awards North America, held at the Hilton Midtown in New York City on May 9, 2024.

Tipico was selected for its pace of growth and innovation, differentiating with proprietary technology built entirely in-house to personalize the online sports betting experience. Since January 2023, the brand has increased app processing speeds by 56% and increased app withdrawal speeds by 733%.

Since its US market entry in 2020, Tipico has leveraged its operational advantages to launch several new product features, promotions, and strategic partnerships across its operating states. Additionally, the company recently revamped its New Jersey-based proprietary casino platform to complement its sportsbook offerings with a focus on customer retention and cross-promotion.

“I am so proud to see Tipico recognized at one of the industry’s most prestigious events,” said Adrian Vella, Tipico US CEO. “Our team’s collective vision since we entered the US market four years ago was to disrupt the online gambling landscape with tech-powered, customer-first solutions. We’ve grown into a resilient organization with passionate colleagues, and so many of them helped us reach this milestone. With this achievement, we’re reminded of the remarkable journey we’ve undertaken together.”

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The SBC Rising Star of the Year award is judged based on rigorous criteria, including operational efficiency, market growth, innovative marketing strategies, the introduction of unique features, commitment to responsible gambling, and customer satisfaction.

Tipico has also been recognized by Eilers and Krejcik Gaming (EKG) for its sportsbook and casino platform operations. Tipico Sportsbook ranked fourth in the nation in In-Play Betting in EKG’s July 2023 Product Analysis Report. Additionally, EKG tested and ranked Tipico Casino as the top casino app in the nation in September 2023, recognized for its clean, intuitive, and fast UX.

For more information on Tipico, please visit the website.

 

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