Compliance Updates
UK Gambling Operators Face £100M Tax in Harm Reduction Push
Gambling operators in the UK face a tax of as much as 1.1% of profits on some types of games as the government seeks £100 million ($126 million) a year to invest in harm reduction and research.
The planned statutory levy on all licensed operators will range from 0.1% to 1.1% of the gross gambling yield, depending on the sector and nature of the gambling, according to a statement Wednesday from the UK’s Department of Culture, Media and Sport.
The UK has over the last few years introduced stricter regulation of gambling, including requiring operators to reduce the intensity of online games, carry out financial vulnerability checks of players and provide customers with better control over the types of marketing they receive. Many of the measures were announced under a Conservative government, which lost to the Labour Party in July’s General Election.
The government will review the charge within five years of its introduction, with the first formal review expected by 2030, according to the statement.
UK gambling stocks soared last month after UK Chancellor Rachel Reeves’ budget did not include much-speculated tax hikes on the sector.
The statutory levy is a separate initiative, proposed under the Conservative government in a 2023 white paper on gambling reform.
The announcement was welcomed by anti-gambling campaigner Matt Zarb-Cousin, who said that he was “really pleased” that it is being introduced. “It will totally transform the research, prevention and treatment of gambling harm,” Zarb-Cousin said.
The four biggest gambling operators – Entain Plc, Flutter Entertainment Plc, William Hill-owner Evoke Plc and Bet365 – previously pledged to pay 1% of their gross gambling yield to an industry-funded charity GambleAware in anticipation of the levy.
In the year ending in March, the charity said it received donations of £49.5 million, £46.6 million of which came from the top four operators.
“This represents a significant step towards protecting people from gambling harm. The levy is also a crucial step towards ensuring continued support through a statutory system and is something we have been calling for since 2017,” GambleAware CEO Zoë Osmond said of the plans in a statement.
The Betting and Gaming Council, which lobbies for the industry, said that it supports plans for the levy outlined in last year’s proposal.
“Ministers must not lose sight of the fact the vast majority of the 22.5 million people who enjoy a bet each month, on the lottery, in bookmakers, casinos, bingo halls and online do so safely,” Betting and Gaming Council Chief Executive Officer Grainne Hurst said in a statement.
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Compliance Updates
Turkish Football Federation Suspends 149 Referees and Assistants After Betting Probe
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The Turkish Football Federation (TFF) has suspended 149 referees and assistant referees after an investigation found hundreds of professional match officials in the country had betting accounts.
Bans ranging from eight to 12 months, based on the severity of the act, have been imposed for involvement in betting activity, with investigations into three other officials still ongoing.
The full list of the penalised officials was published on the TFF website.
Last week, it was revealed a five-year probe had found 371 of 571 match officials have betting accounts, with 152 of those actively gambling.
While some had only bet once, 42 had bet on more than 1000 football matches – with one official found to have placed 18,227 bets.
Like players and coaches, match officials are forbidden from participating in betting activities by TFF disciplinary regulations, as well as those of world governing body Fifa and European governing body Uefa.
“There is a moral crisis in Turkish football. There is no such thing as structure. The fundamental problem at the core of Turkish football is an ethical one,” TFF president Ibrahim Haciosmanoglu said.
“Ask any referee, if there is even one who has not received his pay, I will resign as federation president. In fact, we improved their salaries last year, and again this year.”
No further details of the cases or ongoing investigations were provided.
After the investigation’s findings were announced, a number of Turkey’s top clubs responded.
Besiktas said it “could mark a new beginning for clean football” while Trabzonspor called the development “an historic opportunity to rebuild justice in Turkish football”.
Fenerbahce president Sadettin Saran said: “This is both shocking and deeply saddening for Turkish football.
“But the fact that it is coming to light is a hopeful development.”
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Compliance Updates
UKGC Suspends Operating Licence of VGC Leeds Limited
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The UK Gambling Commission has suspended the operating licence of VGC Leeds Limited as it carries out a review under section 116 of the Gambling Act 2005.
The review and consequent suspension follow concerns that activities may have been carried out contrary to the Act, not in accordance with conditions of their licence and that the Licensee may be unsuitable to carry on the licensed activities.
During a recent Compliance Assessment, VGC Leeds Limited are reasonably believed to have failed to maintain and implement effective anti-money laundering policies, procedures and controls, as required under the conditions of their licence.
In addition, serious concerns were identified regarding the adequacy of decision-making processes and the Licensee’s response to identified anti-money laundering and counter-terrorist financing risks, raising questions about the overall effectiveness of its governance and risk management arrangements.
These failings are considered significant and represent a serious threat to the licensing objectives, in particular keeping crime out of gambling.
“We have made it clear to the operator that during the suspension, we expect it to focus on treating consumers fairly and keeping them fully informed of any developments which impact them,” UKGC said.
The suspension takes place immediately.
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Compliance Updates
Romania Bans Polymarket Over Illegal Cryptocurrency Betting Activities
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Romania’s National Office for Gambling (ONJN) has officially blacklisted Polymarket, a prominent prediction market that allows users to bet on future events, citing its operation as an unlicensed gambling platform. The decision comes amid heightened concerns over crypto-based betting during recent election cycles, where Polymarket reportedly saw trading volumes surpassing $600 million.
ONJN asserts that Polymarket’s “counterpart betting” model – where users wager against each other on future outcomes – falls squarely within the scope of Romanian gambling regulations. The regulator clarified that regardless of whether bets are placed using fiat currency or cryptocurrencies, they are legal gambling activities that require appropriate licensing. ONJN President Vlad-Cristian Soare emphasised that the issue is about compliance with the law, not technology, stating, “It’s about the law, not the platform’s blockchain foundation.”
Although Polymarket promotes itself as an “event trading” platform, ONJN concluded that its operational structure – where users place bets on the outcomes of unpredictable events and the platform earns commissions – meets the legal criteria of gambling. Consequently, Romanian internet providers are now mandated to block access to the platform.
The post Romania Bans Polymarket Over Illegal Cryptocurrency Betting Activities appeared first on European Gaming Industry News.
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