Compliance Updates
The Finnish Supreme Administrative Court rules that skill-based fantasy sports games belong to Veikkaus monopoly
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.
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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As the UK Gambling Commission announces the launch of its consultation on proposed new rules for gaming machines, Nick Arron, lead partner for the Gambling Team at Poppleston Allen urges stakeholders to ensure they are heard
The UK Gambling Commission this week announced the launch of a 16-week consultation, seeking input on proposed new rules for gaming machines in retail venues.
The consultation focuses on technical standards and related testing strategy and aims to improve consumer protection through a number of proposed changes. The consultation is due to end on May 20.
Nick Arron, lead partner for the Betting and Gambling Team at Poppleston Allen, encouraged stakeholders such as operators and licensees to have their say on what impact these proposed changes will have, including the potential costs.
He said: “Robust stakeholder engagement is an important part of this progress. It’s important that operators have their say so that the regulatory framework balances both consumer safety and industry sustainability.
“Changes will require affected businesses to update their processes and technologies to ensure that any changes are not only implemented by the required date but also properly enforced.
“As this consultation progresses, operators will need to weigh the implications of adopting these new standards, not least the cost. While the intention is to enhance consumer protection, businesses must carefully assess the operational and financial implications of the proposed changes.
“While the Gambling Commission’s initiative is a positive step in prioritising consumer safety, the real challenge will be ensuring that the proposed regulatory adjustments are manageable for businesses already operating under thin margins.”
Tim Miller, Gambling Commission executive director for research and policy, said: “We recognise that regulatory changes that impact the design of machines can come with considerable costs.
“We are encouraging consumers, gambling businesses and other interested groups to share evidence that will assist us in measuring both the likely regulatory impacts of the proposed changes and the likely costs of implementing them.
“This evidence will be invaluable to helping make a robust assessment on whether the benefits to consumers are proportionate to the costs involved.”
The post Why stakeholders must be vocal as part of UKGC consultation on gaming machines appeared first on European Gaming Industry News.
GoldenRace, leading provider of award-winning Virtual Sports and betting solutions, is thrilled to announce the renewal of its Maltese certification, successfully tested by BMM lab and approved by the Malta Gaming Authority (MGA). This renewed certification keeps unlocking opportunities in Romania, Poland, Serbia and other MGA-regulated territories, giving operators a golden ticket to tap into new revenue streams in highly regulated markets.
In Romania, where 88% of the population has internet access, the online gambling market is thriving, offering significant opportunities for operators to attract a tech-savvy audience. Serbia, ranked 8th in Europe for gambling revenue, continues its rapid expansion with over 2,200 betting shops and a flourishing online gambling sector. Meanwhile, Poland’s well-regulated and mature market is a compelling destination for operators seeking sustainable growth.
Any games that have been approved under its newly recertified license in Malta, are also eligible for inclusion under its Class II license in Romania, upon the successful completion of the ONJN approval process. While this certification eases the path in these markets, local regulators may require additional approvals. Operators are advised to present these certifications to their respective regulatory authorities to ensure seamless compliance.
Markets on the rise demand winning content
Compliance may open the door, but content is what keeps players loyal. GoldenRace is helping operators target new demographics and grow market share by offering an incredible portfolio of certified games.
In markets such as Romania and Serbia, football is the main revenue force. GoldenRace continues to dominate this space with its newly certified football games, including its most new football format and games such as Football League, World Cup, Euro tournaments (Champions League & Euro League), La Libertadores and Single Soccer.
With online sports betting making up 58% of Romania’s gambling market and Serbia’s sports betting sector projected to grow by 4.93% between 2025 and 2029, GoldenRace has certified games such as Penalt2Win, Basketball 3×3, Horse and Greyhound racing, MMA (Single & Tournament) and several thrilling motor racing titles, such as Grand Prix Indianapolis 60, Motorbike and Speedway racing.
Eastern Europe’s enduring love for number-based games creates another profitable avenue for operators. Certified games such as Keno & Keno Deluxe, Spin2Win (Royale & American) and Perfect6 are designed to meet the unique preferences of players in these regions.
Insights show that players in Poland and neighboring regions prioritise financial rewards, with 56% listing it as their top motivator for gambling. For those players seeking big payouts potential, Crash Games are leading the charge. After a stellar debut in GoldenRace’s Crashmas campaign, games like Jet Escape, Boom Ball Juggle, Fire Crash, Bank Run and Meteoroid are now part of the certified portfolio.
The post GoldenRace fuels growth in Europe with renewed MGA certification appeared first on European Gaming Industry News.
Sitebee is proud to announce the renewal of its long-standing partnership withleading online global betting and gaming brand, Betway. For over six years, Betway has utilised Sitebee’s compliance solutions to ensure regulatory alignment across all its regulated markets.
A partnership built on trust and innovation
Powered by Sitebee’s advanced compliance tool, Betway can seamlessly adapt to market-specific requirements, ensuring that every affiliate campaign is not only effective but also fully aligned with industry standards for transparency and responsibility.
Betway’s decision to extend its partnership with Sitebee reinforces the trust that the world’s leading operators place in our solutions to meet compliance demands and elevate their global reputation. Our dynamic rules engine, tailored to meet the unique demands of each market, has been instrumental in helping Betway maintain its reputation as a responsible and transparent operator on a global scale.
Driving responsible gaming across regulated markets
As an industry leader, Betway prioritises brand protection and player trust. By collaborating with Sitebee, they continue to set the standard for responsible gaming practices, ensuring that their affiliate activities meet the highest levels of compliance in every jurisdiction.
Supporting the future of compliance
The extended partnership with Betway highlights Sitebee’s role as the compliance solution of choice, empowering operators to meet regulatory requirements with precision.
The post Betway extends with Sitebee to uphold compliance excellence across markets appeared first on European Gaming Industry News.
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