Compliance Updates
PRIZE DEBT: CALLS TO REVIEW GAMBLING REGULATIONS AS CONSUMERS RACK UP MILLIONS ON CREDIT CARDS
· 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
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.
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The wait is over: The Finnish Parliament has officially approved the new gambling legislation. In a decisive plenary session, MPs voted 158 in favor to 9 opposed, with 32 abstaining. The text remained unchanged from the version presented in previous weeks, solidifying the framework for Finland’s transition from a monopoly to a licensed market.
With the political uncertainty resolved, the focus now shifts to implementation. For operators, this means the race to compliance—and market entry—has effectively begun.
The Confirmed Timeline
With the legislation passed, the roadmap to the market opening is now set. Operators must use the coming months to prepare for a rigorous licensing process.
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Early 2026: The application window is expected to open. The regulator will begin accepting and reviewing license applications.
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2026 (Throughout): The “preparatory year.” This period is dedicated to vetting applicants, ensuring technical compliance, and establishing the new supervisory authority.
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January 1, 2027: The regulated Finnish market officially opens. Licensed operators can go live with betting and online casino services.
Entering the Finnish Market with Nordic Legal
Navigating a new jurisdiction is complex, but it doesn’t have to be inefficient. With extensive experience advising on gaming licences across the Nordic markets, Nordic Legal brings a proven, practical approach to the Finnish process.
Efficiency Through Synergy If you already work with us in Denmark or Sweden, we ensure your Finnish licence application isn’t a “start from scratch” project. We build directly on our existing knowledge of your organisation and systems.
Your usual Nordic Legal contact will coordinate directly with our Helsinki team at no extra cost. This integrated approach saves you time and avoids the frustration of duplicating work you’ve already done for other Nordic licenses.
Our Approach We focus on smart compliance:
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Reusing documentation where regulations overlap.
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Anticipating regulatory questions before they are asked.
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Aligning requirements for technical standards and responsible gambling.
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Engaging constructively with the Finnish authority to ensure a smooth process.
The Finnish Licence Application Package
To support your entry, we offer a comprehensive package designed to handle the heavy lifting:
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Translation of all required documents.
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Guidance and completion of complex application forms.
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Full project management from start to submission.
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Direct communication with the Finnish regulator on your behalf.
Next Steps
The window for preparation is narrowing. Contact your usual Nordic Legal advisor today to discuss the new legislation or our Licence Application Package. Alternatively, reach out to us directly to secure your place in Finland’s upcoming regulated market.
The post Finland’s Gambling Reform Is Official – What Happens Next? appeared first on Gaming and Gambling Industry Newsroom.
Reading Time: < 1 minute
The Danish Gambling Authority has called attention to FATF’s (Financial Action Task Force) updated lists of high-risk jurisdictions: the Grey List (jurisdictions under increased monitoring) and Black List (call for actions). Among other things, gambling operators must include FATF’s lists of high-risk jurisdictions when risk assessing players.
Jurisdictions listed on the Grey List:
Algeria, Angola, Bolivia, Bulgaria, Cameroon, the Ivory Coast, DR Congo, Haiti, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal, South Sudan, Syria, Venezuela, Vietnam, the Virgin Islands and Yemen.
Jurisdictions listed on the Black List:
Democratic People’s Republic of Korea, Iran and Myanmar
Gambling operators are required to conduct enhanced customer due diligence (EDD) pursuant to section 17(1) of the Danish AML Act, if a player is assessed to impose a higher risk of the gambling operator being misused for money laundering or terrorist financing.
Gambling operators shall conduct this risk assessment based on Annex 3 to the AML Act (high-risk factors) which includes the FATF high-risk country lists (the so called black list and grey list)
It is not required that gambling operators perform EDD if a country is listed on the FATF’s list. EDD are only a requirement for players from jurisdictions listed in the EU Regulation of High Risk Third Country list pursuant to. 17(2) of the AML Act.
The post Updated FATF Lists of High-risk Jurisdictions appeared first on European Gaming Industry News.
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Soon it may be possible to play bingo via walkie-talkie and on local radios. A bill is currently being considered by the Danish Parliament to introduce a new type of licence for bingo via walkie-talkie and local radio. The Danish Gambling Authority expects the rules to come into force as early as 1 January 2026.
If the bill is passed, providers of walkie-talkie bingo and local radio will be able to apply for a licence from 1 January 2026. The Danish Gambling Authority will update this news article when the rules are finally adopted.
How to apply for a licence
If you want to offer bingo via walkie-talkie or radio, you need a licence from the Danish Gambling Authority. You can expect to apply as early as 1 January 2026.
When applying for a licence, you must use the form “Apply for a walkie-talkie or radio bingo licence” (no. 1-02). The form will be available on the page “revenue-restricted licenses”.
The application form will also be published in a digital version, but it will not be available on virk.dk until January.
The Danish Gambling Authority strives to process all applications as quickly as possible.
As an applicant, you will be assigned a contact person who can guide you through the legislation during the application process. The contact person will generally remain the same throughout the period of validity of your licence.
Report on the first year of offering games
Licences for radio and walkie-talkie bingo are regulated by the Gambling Act and the Executive Order on Online Casino. The legislation sets out a number of requirements for licensed gambling operators. Among other things, the licence holder must complete a report on the first year of offering gambling.
The report is prepared one year after the licence has been put into use and must be sent to the Danish Gambling Authority no later than 14 months after the date when the licence has been put into use.
The licence holder can fill out the report themselves.
The report must account for how the licence holder has provided gambling in accordance with the conditions of the licence and legislation during the past year.
The report template will be available on the Danish Gambling Authority’s website as form no. 1-04.
The post Spillemyndigheden: New licence type coming soon: Bingo via walkie-talkie and local radio appeared first on European Gaming Industry News.
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