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The Finnish Supreme Administrative Court rules that skill-based fantasy sports games belong to Veikkaus monopoly

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Article written by Antti Koivula, consulting legal advisor at Legal Gaming

On May 24, 2022 the Finnish Supreme Administrative Court delivered its judgment on IS-Liigapörssi-case (KHO:2022:60), in which the Supreme Administrative Court analysed whether skill-based fantasy sports games are within the scope of the Finnish Lotteries Act (1047/2001) (“Lotteries Act”) and thus belong to the state-owned gambling operator Veikkaus Oy’s (“Veikkaus”) monopoly.

Finland has a statutory gambling monopoly in place, under which Veikkaus has exclusive rights to operate and market gambling. According to the Lotteries Act, all games which include a participation fee, prizes of monetary value and the result is based on chance, are within Veikkaus monopoly.  The main question in the case was if it is enough the game to be even remotely based on chance to be within the scope of the Lotteries Act and thus belong to Veikkaus monopoly, and if that was the case, whether the element of chance was present in the skill-based fantasy sports games in question.

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IS-Liigapörssi-case concerned popular fantasy sports games in Finland, in which participants form virtual ice hockey teams from real ice hockey players and points were awarded based on the ice hockey players performance on real ice hockey matches. The fantasy sports games included entry fees and prizes and they had been run since 1995 by a Finnish media giant Sanoma Media Finland Oy (“Sanoma”). It was an undeniable fact that skilled and analytical participants who invested a considerable amount of time to the fantasy sports games outperformed participants who picked the players randomly.

The background of the case is lengthy, as the national authorities had tried to shut down the fantasy sports games run by Sanoma for more than a decade. In 2008 the Ministry of the Interior made a request for investigation for the police, which carried out a preliminary investigation. However, in 2010 the National Prosecution Authority (“NPA”) made a non-prosecution decision stating that it was left unresolved whether the Fantasy Sports games in question are within the scope of the Lotteries Act.

In 2017 the gambling enforcement authority, the National Police Board (“NPB”) started administrative proceedings against Sanoma regarding the fantasy sports games and two years later in 2019 the process had reached the point in which the NPB imposed a prohibition order and a conditional fine of EUR 300,000 for Sanoma on the basis that Sanoma was not allowed to run the fantasy sports games as they qualified as gambling. Sanoma appealed to the Helsinki Administrative Court arguing that the fantasy sports games in question were skill-games with which chance had no effect on the results and thus outside the scope of the Lotteries Act, but in 2021 the Helsinki Administrative Court ruled in favour of the NPB. Sanoma appealed to the Supreme Administrative Court.

The Supreme Administrative Court acknowledged that participants knowledge and skills were meaningful in the context of success, but reminded that at the same time random factors outside the participant’s control had a significant importance too. Thus, the chance of winning was at least partially based on luck. As the fantasy sports games also included entry fees and prize money, only Veikkaus was allowed to run them in Finland.

The Supreme Administrative Court’s decision hardly came as a surprise. The Lotteries Act’s definition of gambling is extremely broad, from which a good example is that even an ice fishing competition and an auction were previously deemed to fall within it. Nevertheless, the decision yet further strengthened the NPB’s authority and it remains to be seen what is the next competition or event after which they’ll go next.

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Compliance Updates

New Report Details Current Situation of Online Gambling Outside the Licensed Market in Sweden

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The Swedish Gambling Authority, Spelinspektionen, has released a new report detailing the current situation of online gambling that takes place outside the licensed market in Sweden. It contains a survey of the key players who engage in illegal gambling and their methods of reaching Swedish players.

The assessment is that the supply of unlicensed online gambling is large and relatively easily accessible. The Swedish Gambling Authority has developed methods to identify unlicensed gambling sites where Swedes play. It is a relatively small group of players, probably fewer than 5% of the total number of players, who demand games that do not have a Swedish gaming license.

Under current legislation, the Swedish Gambling Authority cannot intervene against all gambling sites that do not have a Swedish gambling license. According to the so-called targeting criterion, the authority can currently only intervene against gambling sites that target gambling customers in Sweden through, for example, marketing or that have gambling sites that are designed for the Swedish market.

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“We welcome the ongoing investigation into the expanded scope of application, which is to be reported no later than 17 September this year. Despite the problems with the current scope of application, we believe that our interventions, where possible, are important and have an effect. It is therefore important that we continue our work to combat illegal gambling even during the ongoing investigation of the regulations,” said Spelinspektionen’s Director General Camilla Rosenberg.

The post New Report Details Current Situation of Online Gambling Outside the Licensed Market in Sweden appeared first on European Gaming Industry News.

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Karnataka Govt to Introduce New Law to Regulate Online Betting and Gaming

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The Karnataka government has announced that it will introduce a new law to regulate online betting and gaming.

Home Minister G Parameshwara said a committee of senior officials and industry representatives has been constituted and it has been given a month’s time to submit a draft of the proposed bill.

“I chaired a meeting regarding online betting and gambling yesterday along with the IT Minister. Representatives from the industry were called. There is nothing to regulate them so far. They have agreed to the introduction of a licence system and a regulation as per law,” he said.

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The state government held a high-level meeting to discuss a legal framework for regulating online gaming.

IT-BT Minister Priyank Kharge said that the intent of the legislation is to curb online gambling, betting and games of chance, and protect consumers from fraud while supporting innovation and the sustainable growth of the skill-based gaming industry.

Karnataka is set to introduce a legal framework to ban gambling while permitting skill-based games following a model similar to that of Chhattisgarh.

Kharge said he held a detailed meeting with the state home minister, senior government officials, members of online gaming federations, and industry experts to discuss the proposed framework.

“The legitimate online skill-based gaming industry in India is a sunrise sector worth USD 4 billion, contributing Rs 12,000 crore in taxes and creating over 1.5 lakh jobs. Karnataka alone accounts for 25 percent of the market and contributes Rs 1350 crore annually in taxes, making it a key hub,” he said.

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The minister also raised concerns over the growing underground market of offshore gambling and illegal betting.

“Alongside the legitimate sector, there is a parallel underground market that is expanding rapidly, posing risks such as predatory money collection practices, dubious shell companies, financial fraud, data breaches, and cybercrimes,” he said.

Kharge also held discussions with representatives of the E-Gaming Federation (EGF), the All India Gaming Federation (AIGF) and the Federation of Indian Fantasy Sports (FIFS) regarding their collaborative “Code of Ethics” for the industry.

The post Karnataka Govt to Introduce New Law to Regulate Online Betting and Gaming appeared first on European Gaming Industry News.

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Compliance Updates

BC.GAME Upgrades to @bcgame Telegram Link for Unified Access and Increased Security

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BC.GAME, a prominent cryptocurrency entertainment platform, announced the official upgrade of its Telegram group with a new link: https://t.me/bcgame. This shift represents an important step forward for the platform in terms of brand unification, community operations and user identification paths.

BC.GAME, one of the most active platforms in the crypto entertainment market, has a sizable user base spread across channels such as Telegram, Discord and Twitter. The Telegram community alone has millions of members from many critical areas. Behind each time zone, a committed group of gamers and community administrators keeps the community alive by sharing gaming experiences, uploading the most recent event announcements and assisting new users in swiftly integrating into the distinctive “BC community culture”.

Unifying the group link is both a way to make the platform’s design more consistent and a way to improve the user experience. It’s easier and faster for new players to remember t.me/bcgame than any of the other subdomain names. For current players, it means a clearer official entry point, which makes it less likely that they will run into fake groups.

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The post BC.GAME Upgrades to @bcgame Telegram Link for Unified Access and Increased Security appeared first on European Gaming Industry News.

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