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Third of Swedish players search for ‘unlicensed casinos’, research finds

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Bonusfinder.com data finds ‘channelisation’ strategy failing and growing numbers of players looking for black market sites

– Warning to German regulators to reconsider recent restrictive proposals

 Almost a third of Swedish players are searching online for ‘unlicensed casinos’, with growing numbers turning to black-market brands due to the market’s restrictive gaming regulations, according to data produced by customer-first affiliate brand Bonusfinder.com.

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Research carried out by BonusFinder.com monitoring the Swedish market since it regulated in January 2019 has uncovered a spike in Swedish players searching for a basket of black-market keywords.

Up to 30% of players have searched for terms such as ‘unlicensed casino’ (casino utan licens). This reinforces the theory that aggressive restrictions on licensed operators drives players to search for, and convert to, unlicensed black-market brands.

According to recent official data from the Swedish regulator (SGA), 91% of gambling is carried out by licensed operators in a market worth more than €1.2 billion.

Data from H2 Gambling Capital estimates Sweden’s ‘channelisation’ strategy towards licensed sites to be 85%, however Bonusfinder.com research shows the proportion of Swedish players using legal casinos to be closer to 70% with almost a third being diverted to unlicensed brands.

The findings are a stark warning to other newly regulating markets including Germany that is considering even tougher regulations on online casino products.

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German lawmakers recently approved regulations to legalise online poker and casino from 1 July 2021 with punitive measures including slots subject to a €1 per spin stake limit, no auto play and no jackpots, while casino games must be offered separately to table games.

One large operator in Germany, on condition of anonymity said that future licensed brands there could see casino revenues fall by up to 70% with many players flocking to black market sites if regulators passed restrictive proposals.

“With the 16 Federal States in Germany approving the new gambling regulation everyone was anticipating a regulated and safe gambling environment for online and land-based players in Germany.

“The strict policies in the new Interstate Treaty on Gambling, however, will force players and operators into illegal channels and, if this goes ahead, the market with the biggest potential in Europe will have lost its opportunity. For many operators, revenues will drop by 60 to 70%, and on top of that, taxes and fees will make this licence unattractive.”

Fintan Costello, Managing Director, Bonusfinder.com, said: “Instead of misguidedly declaring phase one of Swedish legislation a “success”, regulators should be focusing on the rising proportion of players searching for ‘unlicensed’ brands.

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Equally concerning is that newly regulating markets such as Germany appear to be ignoring their mistakes. There is no regulated market on earth that is proposing such damaging rules, and we would urge them to take heed of Sweden’s rapid plunge toward encouraging unlicensed activity.

“This should serve as a real warning for German lawmakers who have plenty of time to alter their proposals to benefit and protect players and to ensure their newly regulated framework is commercially successful.

“At Bonusfinder.com we aim to give players more choice, presenting them with all the options before they commit to gambling on specific sites. Our aim is to help people “play with more” in a safe environment. Our core principles are built on a common sense approach to regulation that involve honest and open conversations between regulators, operators, affiliates and players. This is exactly the approach German regulators should be taking.”

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Mohegan Appoints Joseph J. Hasson as Interim COO

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Mohegan Tribal Gaming Authority, known globally for its renowned integrated entertainment resorts, has appointed Joseph J. Hasson as interim Chief Operating Officer. Jody Madigan, the current COO, has resigned effective August 1, 2024, and will be taking a leave of absence pending his departure.

Joseph J. Hasson will serve as interim COO and retain his current role as General Manager of Mohegan Casino at Virgin Hotels Las Vegas, subject to necessary regulatory filings or approvals. Mr. Hasson was an obvious choice for the Management Board, given his prior experience as the former Chief Operating Officer of Station Casinos LLC and Red Rock Resorts Inc. Joe brings considerable expertise to the executive team with a consistent track record of operating excellence and success over more than 40 years’ experience in the gaming and hospitality industry. Mr. Hasson will report to Ray Pineault, President and Chief Executive Officer of Mohegan.

“Joseph J. Hasson’s deep understanding of the gaming and hospitality industry makes him exceptionally qualified to maintain our high service and operational excellence standards. We are confident that Joe’s extensive experience and proven leadership will ensure continuity in our operations and guest experience,” Ray Pineault, President and CEO of Mohegan, said.

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Jennifer Shatley Joins ROGA as Executive Director

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Jennifer Shatley, a recognized expert in the field and a highly sought speaker and advisor, has joined the Responsible Online Gaming Association (ROGA) as Executive Director.

Shatley has had 25+ years worth of experience, working closely with the treatment community, academics, researchers, government bodies, state councils, and gaming industry representatives to promote responsible gaming.

“Many of America’s largest legal mobile gaming operators will be establishing a framework that helps to aid in responsible gaming education and awareness. By coming together with a clear set of objectives, ROGA and our members will work to enhance consumer protections and help provide easier and more efficient access to responsible gaming tools for consumers to enjoy the entertainment of online gaming,” Shatley said.

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IDnow Bridges the AI-human Divide with New Expert-led Video Verification Solution

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IDnow, a leading identity verification provider in Europe, has unveiled VideoIdent Flex, a new version of its expert-led video verification service that blends advanced AI technology with human interaction. The human-based video call solution, supported by AI, has been designed and built to boost customer conversion rates, reduce rising fraud attempts, increase inclusivity, and tackle an array of complex online verification scenarios, while offering a high-end service experience to end customers.

The company’s original expert-led product, VideoIdent, has been a cornerstone in identity verification for over a decade, serving the strictest requirements in highly regulated industries across Europe. VideoIdent Flex, re-engineered specifically for the UK market, represents a significant evolution, addressing the growing challenges of identity fraud, compliance related to Know-Your-Customer (KYC) and Anti-Money Laundering (AML) processes and ensuring fair access and inclusivity in today’s digital world outside of fully automated processes.

As remote identity verification becomes more crucial yet more challenging, VideoIdent Flex combines high-quality live video identity verification with hundreds of trained verification experts, thus ensuring that genuine customers gain equal access to digital services while effectively deterring fraudsters and money mules. Unlike fully automated solutions based on document liveness and biometric liveness features, this human-machine collaboration not only boosts onboarding rates and prevents fraud but also strengthens trust and confidence in both end users and organisations. VideoIdent Flex can also serve as a fallback service in case a fully automated solution fails.

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Bertrand Bouteloup, Chief Commercial Officer at IDnow, said: “VideoIdent Flex marks a groundbreaking advancement in identity verification, merging AI-based technology with human intuition. In a landscape of evolving fraud tactics and steady UK bank branch closures, our solution draws on our decade’s worth of video verification experience and fraud insights, empowering UK businesses to maintain a competitive edge by offering a white glove service for VIP onboarding. With its unique combination of KYC-compliant identity verification, real-time fraud prevention solutions, and expert support, VideoIdent Flex is a powerful tool for the UK market.”

Whereas previously firms may have found video identification solutions to be excessive for their compliance requirement or out of reach due to costs, VideoIdent Flex opens up this option by customising checks as required by the respective regulatory bodies in financial services, mobility, telecommunications or gaming, to offer a streamlined solution fit for every industry and geography.

Bouteloup added: “Identity verification is incredibly nuanced; it’s as intricate as we are as human beings. This really compounds the importance of adopting a hybrid approach to identity – capitalising on the dual benefits of advanced technology when combined with human knowledge and awareness of social cues. With bank branches in the UK closing down, especially in the countryside, and interactions becoming more and more digital, our solution offers a means to maintain a human relationship between businesses and their end customers, no matter their age, disability or neurodiversity.

“VideoIdent Flex is designed from the ground up for organisations that cannot depend on a one-size-fits-all approach to ensuring their customers are who they say they are. In a world where fraud is consistently increasing, our video capability paired with our experts adds a powerful layer of security, especially for those businesses and customers that require a face-to-face interaction.”

The post IDnow Bridges the AI-human Divide with New Expert-led Video Verification Solution appeared first on European Gaming Industry News.

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