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Betting and Gaming Council Warn Further Tax Increases Will Hit Customers, Prevent Growth, Cost Jobs and Bolster Black Market Gambling

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STANDARDS body the Betting and Gaming Council have warned further tax rises threaten to bolster the illegal gambling black market while undermining the regulated sector’s significant economic contributions.

Ahead of the Budget, new figures compiled by leading consultants EY confirm BGC members generate £6.8bn for the economy in Gross Value Added, raise a further £4bn in tax to the Treasury, while supporting 109,000 jobs.

The regulated betting and gaming sector supports the UK’s hard-pressed high streets through bookmakers, provides a vital pillar to the leisure and tourism sector through casinos, and a growing number of high value jobs in bases like Stoke, Leeds, Sunderland, Warrington, Nottingham and Newcastle Under Lyme.

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They also pour millions into sports including horseracing, rugby league, football, snooker, darts and boxing.

But tax increases, combined with the impacts of last year’s White Paper on gambling reform, and the threat of the growing unsafe, unregulated gambling black market, could undermine that continued investment while threatening growth and jobs.

According to previous Government figures, the White Paper measures, many of which the BGC called for to raise standards, will cost the sector around £1bn.

While comparable markets in Europe which have increased taxes on regulated operators, have seen an immediate rise in black market gambling, which pays zero tax, does not contribute to sport and makes no effort on player protection, leading these markets to also have higher rates of problem gambling.

A recent study commissioned by the BGC found 1.5m Brits are annually staking up to £4.3bn on the illegal, unregulated gambling black market.

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Meanwhile, the current economic headwinds – which are set to continue – have also hit customer’s pockets hard, including their financial freedom to spend on hobbies like betting.

BGC CEO Grainne Hurst said: “Our sector is at a crossroads as we seek to implement the measures contained in the White Paper and deliver a new era of stability and growth so we can continue making significant economic contributions to the country.

“After so many years of uncertainty, this sector needs stability to deliver sustainable investment, not further change which threatens to undo that contribution.

“Any new taxes now, at any scale, at this critical juncture risks undermining that good work while giving a leg-up to the lurking menace of the black market, which is ready to hoover up disaffected customers sensitive to any degrading of the offer they get in the regulated sector.

“Customers have been hit hard for years, with extreme pressure on the cash they have left in their pockets, once bills and taxes are paid, to enjoy their hobbies including having a flutter. We don’t want to see the pressure on working people ramped up.

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“Regulated betting and gaming remains a hugely popular pastime in this country, enjoyed safely by the overwhelming majority, while our members are a Great British export and genuine global leaders, delivering enormous economic good in city centers, on high streets and in the growing online sector. That investment positively impacts other sectors too, with BGC members pouring millions into Britain’s world leading sports.

“We want to partner with Government to see the right, proportionate regulations, and a stable tax regime, which doesn’t hit customers, doesn’t raise the attraction of illegal operators, won’t risk jobs, but instead delivers on the Government’s new growth agenda.”

The White Paper – billed as a “once in a generation” moment for reform – announced measures including an Ombudsman to improve consumer redress, new online stake limits, modest casino modernisation plans and a new levy to fund Research Prevention and Treatment (RPT) services to tackle problem gambling and gambling related harm.

BGC members voluntarily donated over £170m to this work over the last four years – supporting a mature network of independent charity providers – including £50m last year alone.

The new statutory RPT Levy is expected to raise £100m a year when introduced.

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BGC members also contribute around £100m a year to the Horserace Betting Levy to improve breeding, advance veterinary science in the sport and contribute to the wider improvement of horseracing.

The new research by EY also tracked trends in the sector, confirming Gross Gambling Yield from online betting and gaming has remained steady, while marking the significant pressures facing land-based bookmakers and casinos.

The number of casinos has fallen in recent years, from 156 in 2019 to 117 now, including the loss of five high-end casinos.

There are also currently 5870 bookmakers in the UK, with 2485 closures since 2019, a 28% reduction, prompted by regulatory changes and the lingering effects of the Covid pandemic.

The BGC has previously called on Government to introduce the modest but mission critical modernisation plans needed for the land-based sector to compete and offer the experience their customers expect.

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The post Betting and Gaming Council Warn Further Tax Increases Will Hit Customers, Prevent Growth, Cost Jobs and Bolster Black Market Gambling appeared first on European Gaming Industry News.

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Flows welcomes Opti-X to its client Marketplace

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Flows, the no code automation platform driving faster product delivery for businesses globally, has added Opti-X, Optimove’s Digital Experience Platform for faster time-to-conversion and higher customer lifetime value, to its Marketplace. Optimove is the creator of Positionless Marketing, and the and the #1 Player Engagement Platform in iGaming.

The marketplace addition highlights the next chapter in the partnership between the two companies, giving operators more ways to deliver real-time, personalised experiences that adapt to the needs of every player. Opti-X helps operators tailor content and experiences to reflect the preferences, behaviours and needs of each individual player. Powered by AI, it supports marketing teams in delivering more relevant messaging based on where a player is in their journey.

The strengthened partnership between Flows and Optimove unlocks enhanced ways for operators to connect systems that don’t naturally work together. Through Flows’ orchestration and integration layer, clients utilising Optimove can now gain instant access to Opti-X, enabling their teams to trigger personalised campaigns using real-time behaviours, internal logic or enriched data from across their tech stack. The result is a faster, more flexible way to build and launch new features and experiences without dependency on developers.

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Daniel de Souza, VP Commercial at Flows, said: “Having worked at both Optimove and Flows, I can see the tangible benefits of connecting these tools. Operators gain greater flexibility to create personalised, fully connected experiences, driven by the power of Opti-X within the Flows ecosystem. The Opti-X platform is a powerful system, but when combined with Flows spin by spin level of data, operators can activate different strategies in real-time data. This will give the product teams freedom to move faster, smarter and bring more meaningful experiences to the end customer.”

Matthew Gilbery, Director of Personalisation, said: “The real winners are iGaming operator marketing teams. Flows adds a powerful layer of agility to personalisation by connecting data, systems, and logic in real-time. Through its integration with Opti-X, marketing teams can launch hyper-personalised player experiences instantly, without relying on developers. This collaboration brings the power of Positionless Marketing to life enabling teams to move faster, adapt quickly, and deliver campaigns that truly reflect each player’s needs. We’re truly excited about the possibilities this partnership unlocks.”

The post Flows welcomes Opti-X to its client Marketplace appeared first on European Gaming Industry News.

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Compliance Updates

New ESRI Research Commissioned by the GRAI Suggests Gambling Offers Lure People to Bet More, Particularly People at Risk of Problem Gambling

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A new study commissioned by the Gambling Regulatory Authority of Ireland (GRAI) /Department of Justice, Home Affairs and Migration and undertaken by the Economic and Social Research Institute (ESRI) shows that betting and gambling companies offering special offers or inducements encourages people to gamble more than they would otherwise, even when the odds offered are “bad”.

Special offers or inducements, such as free bets and moneyback guarantees are regularly used by gambling companies in their marketing campaigns. The study found that vulnerable people such as those at higher risk of becoming problem gamblers, were most at risk of gambling more, and losing more, as a result of being offered inducements.

In a controlled experiment run with a sample of 622 men under 40, participants, were given money to place up to six realistic bets on the Euro 2024 football tournament.

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Half of the participants were randomly selected and shown offers of free bets and moneyback guarantees on some bets. which caused these participants to spend over 10% more than those who were not given inducements. The inducements also reduced the number of participants opting not to bet by nearly half. Even inducement bets that were designed as “bad”, showing odds far below market rates, were undertaken by participants in this group, who were three times more likely to spend money on “bad” bets.

These findings illustrate the harm inducements cause, particularly to those who are susceptible to gambling harm.

Under the Gambling Regulation Act 2024, the legislation which underpins the work of the GRAI, inducements or encouragement to gamble further will soon be an offence and licensed operators will no longer be allowed to offer free bets which are targeted at individuals and specific groups. Multiple European countries have also begun to regulate inducements.

Participants were surveyed after the study on their knowledge and understanding of inducements. Even amongst regular betters, most did not know that there were restrictions on free bets and that they would not receive their stake back if they won a free bet.

Paul Quinn, Chairperson of the GRAI, said: “I very much welcome this research from the ESRI examining the impact of inducements to gamble on gambling behaviours. Having a clear evidence base is critically important to the GRAI as we commence our work in regulating the gambling industry. This latest research will help inform that work and in educating the public on this matter.

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“This study clearly indicates the damaging effect of certain practices around inducements. It underlines the importance of the provisions of the Gambling Regulation Act in limiting a person’s exposure to inducements to gamble. We look forward to working with Minister O’Callaghan in addressing the issue as we implement the new regulations.”

Anne Marie Caulfield, CEO of the GRAI, said: “The ESRI’s findings confirm that not only is the general public not aware of the dangers associated with inducements to bet, but also that the impact of these inducements go beyond simple marketing by betting companies.

“It is our responsibility to ensure that gambling operators do not encourage excessive or compulsive gambling behaviour, and that we protect vulnerable people in our society, such as children and young people and those more likely to experience gambling harm.

“The Gambling Regulation Act 2024 sets out obligations for licensees in the way in which inducements can be offered, including a ban on targeted inducements, and the findings of this study affirm these measures.”

Diarmaid Ó Ceallaigh, Postdoctoral Research Fellow, Behavioural Research Unit, ESRI, said: “Our findings imply that gambling offers aren’t merely marketing tools, but pose a real risk of financial harm, particularly among vulnerable groups.

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“The results support the case for stricter regulation of gambling offers in Ireland, following steps already taken in other European countries, such as banning sign-up bonuses, restricting offers to at-risk individuals, and capping their value.”

The post New ESRI Research Commissioned by the GRAI Suggests Gambling Offers Lure People to Bet More, Particularly People at Risk of Problem Gambling appeared first on European Gaming Industry News.

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Compliance Updates

VNLOK Calls for Strict Action Against Illegal Providers and Balanced Approach to Gambling Regulation

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The latest impact assessment by the Dutch Gaming Authority (KSA) shows that players on the legal market are increasingly being protected. Since the introduction of new playing limits and duty of care rules on 1 October 2024, fewer players are setting high limits and losing smaller amounts.

The number of accounts losing €1000 or more has dropped by over 75% to 0.9%. At the same time, the number of accounts per player remains stable (an average of 2.4 accounts per player). The so-called “hopping” behaviour between legal providers is therefore absent.

There are, however, worrying signals about a further growing illegal market. The previous report of the KSA already showed that for every euro gambled online, Dutch people spend €0.50 on illegal gambling sites. Now it appears that since the introduction of the new rules, the average monthly search volumes for illegal gambling sites have increased by 23% to almost 1 million. VNLOK warns: the control and protection of vulnerable players will be lost in this way. While the legal market is strictly regulated, the illegal supply remains too easily accessible for vulnerable players.

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Björn Fuchs, chairman of VNLOKs, said: “It is good that the new rules for players who gamble legally are effective. At the same time, we cannot close our eyes to the other half: the illegal market. It is precisely the players who wager the most money and vulnerable groups, such as minors and young adults, who seem to continue to find their way to the illegal supply. That is precisely the group that is most at risk.”

VNLOK emphasized that an excess of new regulations will have undesirable effects. Fuchs added: “If well-intentioned regulation is piled on top of regulation, this will drive more players to the illegal supply. That is where – without any form of supervision or protection – major problems arise.”

VNLOK has called for strict action against illegal providers and for a balanced approach to regulation: effective where necessary, but without unnecessarily hindering the player and the legal supply. VNLOK urges that all findings from the latest impact assessment must be taken into account when creating new rules.

The post VNLOK Calls for Strict Action Against Illegal Providers and Balanced Approach to Gambling Regulation appeared first on European Gaming Industry News.

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