Compliance Updates

PRIZE DEBT: CALLS TO REVIEW GAMBLING REGULATIONS AS CONSUMERS RACK UP MILLIONS ON CREDIT CARDS

Published

3 years ago

November 24, 2021

Reading Time: 3 minutes

^·Consumers spent £117m on credit cards entering prize draws and competitions, which are not currently regulated by the Government, in a bid to win dream prizes⁽¹⁾

^·Promise of a charitable donation makes nearly half of participants more likely to enter

· Jumbo Interactive calls on the UK Government to regulate the growing prize draw and competition market and for a clampdown on credit cards use

European Gaming Congress 2024 (Warsaw, Poland)

The UK Government is being urged to review current gambling regulations, as new research reveals consumers are racking up millions on credit cards entering popular prize draws and competitions.

The research from Jumbo Interactive found consumers spent £117m on credit cards entering prize draws and competitions in the last year, which due to a loophole, are not currently regulated in the same way as lotteries and raffles.

The study found nearly one in 10 people who entered ‘big ticket’ prize draws, offering the chance to win multi-million pound houses or luxury cars, or prize competitions, have ended up in debt as a result^.

Using credit cards to gamble was banned in April 2020, but a loophole in regulation means there are currently no restrictions on commercial prize draw or prize competition companies. For prize draws, this is because they offer “free” entry methods, where it’s possible to play by post for the cost of a postage stamp. Yet, despite this ‘free to enter’ route, an estimated £860m was spent on entries into prize draws in the last year^[iii].

Prize draws and competitions that promise a donation to charity also makes 45% of participants more likely to enter, yet over half of players (57%) admit to not checking how much actually goes to good causes.

Jumbo Interactive is now calling for greater regulation of the growing prize draw and competition market, highlighting significant consumer protection concerns over credit card debt, as well as a lack of transparency around prizes and charity donations from entry fees.

It is also urging consumers to check the T&Cs as there is little enforcement of minimum donation percentage for prize draws and competitions. This compares to regulated society lotteries, which give a minimum of 20% of gross ticket sales and often over 50% to good causes.

Nigel Atkinson, UK General Manager, Jumbo Interactive comments: “A huge amount is being spent on credit cards on prize draws, pushing people into debt – despite the free entry option being the reason they are exempt from oversight. With so much money changing hands, the government needs to look at the proper regulation of prize draws and competitions to better protect consumers.

“For many, the fact that some of the cost of entering prize draws and competitions goes to charity is a big part of why they enter. But it remains easy for companies to bury information in the terms and conditions about how much actually goes to charity. Society lotteries on the other hand have minimum donation rates and help raise funds for a wide range of important causes, large and small. Public trust is crucial for society lotteries to operate successfully, and increased regulation of the prize draw and competition market will offer that consistency and transparency.”

Tony Vick, Chair of The Lotteries Council, adds: “The Lotteries Council is increasingly concerned about the use of prize draws operated by commercial gambling companies which are marketing themselves in a similar way to charity lotteries. Lotteries face a series of legislative hurdles that restrict our ability to grow and raise funds for good causes while prize draws face no limits on how many tickets they can sell, what prizes they can offer, and choose whether and how much to give to any charity. We hope the Government looks at this to ensure a fairer playing field.”

Falling foul of scams has also been an issue for 15% of entrants, including paying money for postage on a prize that never arrives, paying a significant amount of money on phone calls or texts to enter a competition without it being clear that it would cost that much, or winning a prize that turned out to be of less value than advertised.

Notably, 72% of those who enter lotteries, draws or competitions think prize competitions and prize draws should be regulated in the same way as gambling.

BacanaPlay.bet.br

PlayUZU.bet.br and BacanaPlay.bet.br and to make a splash in the brand new regulated Brazilian market

Published

9 hours ago

January 7, 2025

GamingAmericas.com

Global gaming powerhouse SkillOnNet is among the first companies to receive provisional authorisation to operate in Brazil. The first SkillOnNet localised brands to launch in the newly regulated market are PlayUZU.bet.br and BacanaPlay.bet.br, two already successful European and Latam casinos but with very different features and USPs providing a wider choice to casino players in Brazil.

The licence represents a new milestone in the Latam market for the Malta-based gaming and entertainment giant. In recent years, SkillOnNet, through its awards winning PlayUZU brand, has made inroads into the regulated markets of Mexico, Peru, and Buenos Airies City in Argentina.

The new licensing regime came into force on January 1, 2025 after Brazil’s president Luiz Inácio Lula da Silva signed a bill into law to regulate and tax online gaming in December 2023. Regulatory intelligence analyst Vixio predicts Brazil’s online gaming and betting will exceed $2.9bn in annual gross revenue in 2025, rising to almost $6.3bn in 2028.

Since its launch in Portugal in 2020, BacanaPlay has become a household brand name. In Portuguese, the world “bacana” means “cool,” which encapsulates the fun, friendly vibe of the brand.

PlayUZU.bet.br is the Portuguese language version of SkillOnNet’s flagship Spanish brand, which has already proved hugely popular in Latin America. PlayUZU is marketed as a “fair” online casino that offers players a unique package of benefits including no wagering requirements and money back on every bet, win or lose.

SkillOnNet operates more than 40 brands in multiple regulated markets, globally. It also boasts one of the richest and most diverse gaming platforms in the world, with premium casino content from top software providers and a host of exclusive slots and dedicated Live casino tables.

Pedro Garcia Country Manager for Brazil at SkillOnNet said: “We believe Brazil will quickly become one of the biggest online gaming markets in the world. Our goal is to be a tier-one casino operator in this hugely significant new market by investing aggressively in marketing and brand development and establishing a strong local team. Our licensing in Brazil is a reflection of our commitment to regulatory compliance and to fair and responsible gaming, and we’re excited to showcase our specially localized high-quality content to a massive new audience.”

Brazil

Play’n GO games now live in Brazil

Published

1 day ago

January 6, 2025

GamingAmericas.com

Play’n GO, the world’s leading casino entertainment provider, has today announced that its industry-leading games are now live in Brazil.

Players in the world’s newest regulated market can now enjoy an initial suite of more than 50 titles including Play’n GO’s all conquering Rich Wilde and the Book of Dead, multiple games from the fan favourite ‘Toonz and Moon Princess series, as well as Sweet Alchemy Bingo and Rainforest Magic Bingo that are expected to be hits in the South American market.

As of January 2025, Play’n GO offers a portfolio of close to 400 premium titles in over 35 regulated jurisdictions worldwide.

Magnus Olsson, Chief Commercial Officer at Play’n GO, said:

“The industry has been waiting for more than a decade for Brazil to open a regulated market and it’s fantastic to see what was once just a pipe dream now become reality.

“As is the Play’n GO way, we’re excited to be among of the first in the new market with a wide range of games certified and ready to go. Our customers know they can launch Play’n GO games with confidence, and we’ve seen that pay dividends time and again when new markets open like now in Brazil or markets re-regulate.”

Michele Stefanelli, Sales Leader for Southern Europe and LATAM at Play’n GO, added: “The Brazilian market has proven itself in the pre-regulated phase and we’re excited to see our games launch with some of the biggest operators in the world who are committed to making the regulated Brazilian market a success.”

Bureau of Gambling Control

Comprehensive Guide to California’s Gambling Laws and Regulations Released

Published

1 day ago

January 6, 2025

GamingAmericas.com

comprehensive-guide-to-california’s-gambling-laws-and-regulations-released

The California Gambling Control Commission and the Bureau of Gambling Control have published the 2025 Edition of “California Gambling Law, Regulations, and Resource Information“, offering a detailed and updated overview of the state’s gambling-related statutes, regulations, and guidelines. This annual publication serves as an essential resource for industry stakeholders, legal professionals, and regulators.

Key Features of the 2025 Edition

The resource consolidates relevant sections from multiple codes, including the California Business and Professions Code, Penal Code, Government Code, and Welfare and Institutions Code, as well as pertinent federal statutes. It addresses updates made as of January 1, 2025, reflecting the latest legislative changes and newly adopted regulations.

Highlights from the Publication

Regulatory Updates:
- The Gambling Law Resource book incorporates changes in regulations from the California Gambling Control Commission and the Bureau of Gambling Control.
- Newly adopted emergency measures and updates to compliance guidelines are included.
Enforcement and Compliance Guidelines:
- Comprehensive sections detail enforcement responsibilities, licensing requirements, and disciplinary actions for non-compliance.
- Specific focus on statewide involuntary exclusion lists and emergency preparedness plans for gambling establishments.
Licensing and Permitting:
- Detailed criteria for obtaining state gambling licenses, key employee licenses, and work permits are provided.
- The guide includes step-by-step procedures for applying, renewing, and maintaining licenses in compliance with state and local laws.
Tribal and Local Government Relations:
- A thorough discussion of tribal-state gaming compacts and their alignment with the Indian Gaming Regulatory Act (IGRA).
- Analysis of local government ordinances and their impact on gambling enterprises.
Responsible Gambling Programs:
- Updated requirements for self-exclusion programs and training standards for employees in licensed establishments.
- An expanded section on responsible gambling awareness initiatives and referral services.
Key Contacts and Resources:
- Listings for state offices, including regional compliance and enforcement offices in Sacramento, Los Angeles, Fresno, and San Diego.
- Direct links to the California Gambling Control Commission and Bureau of Gambling Control websites for accessing additional resources.

Accessibility and Applications

This essential resource is available for review on the websites of the Bureau of Gambling Control (oag.ca.gov/gambling) and the California Gambling Control Commission (cgcc.ca.gov). It is particularly valuable for:

Legal professionals seeking to navigate the complexities of gambling law.
Operators ensuring compliance with licensing and operational requirements.
Regulators and policymakers shaping the future of California’s gambling industry.

Future Outlook

As California’s gambling landscape evolves, particularly with advances in technology and the growth of online and tribal gaming, this resource serves as a critical foundation for understanding the legal and regulatory framework. Stakeholders are encouraged to consult the guide regularly for insights into maintaining compliance and adapting to new legal standards.

For further inquiries, readers can contact the Bureau of Gambling Control directly at [email protected] or visit their offices statewide.