Latest Regulatory News! Read about a UKGC fine, increasing demand for Isle of Man licensing, and more! (Image from qimono at pixabay.com )
The latest regulatory and player protection new stories coming from the iGaming industry across multiple markets include a £620,000 fine issued by the UK Gambling Commission, an increase in demand for Isle of Man licensing, and a claim from the Chief Executive of the UKGC that iGaming has not witnessed the explosion that many others claim.
We bring you those stories plus deliver snippets from other regulatory news that has come out in recent days.
Blue Star Planet Issued with £620,000 UKGC Fine
The UK Gambling Commission has recently announced that Blue Star Planet, the operator of 10Bet, will pay a fine of £620,000 ($742,000) as part of a settlement agreement after an investigation found social responsibility and anti-money laundering failures.
The Commission’s investigation uncovered that between November 2019 and June 2021, the company breached several License Conditions and Codes of Practice. These breaches involved the prevention of money laundering and terrorist financing, the compliance of foreign-based operators with the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017, and the display of licensing and regulatory information on customer screens.
LeoVegas Cites Transaction-Related Costs as Impacting Q4 Performance
LeoVegas faced ongoing struggles throughout the third quarter of the previous year, which persisted throughout the remainder of the year, but saw a slight increase in revenue during the fourth quarter. This marked a shift from the trend of several setbacks that the company had previously faced.
After officially joining the MGM Resorts network, revenue rose by one percentage point in Q4 2021, reaching €99.5m (compared to €98.2m in the previous year). LeoVegas experienced a 9% increase in the Nordics, with Sweden posting “another good quarter” driven by record-breaking figures for the Expekt brand.
LeoVegas reported a significant decrease of 77.5% in EBITDA to €2.6m in Q4 2021 (compared to €11.6m in the previous year) due to various items affecting comparability, including transaction-related costs, provisions for incentive programs, and the sale of a customer database for €500,000. As a result, the adjusted EBITDA fell by 68.1% to €3.7m (compared to €11.6m in the previous year).
The net loss for the year was €25.81m, a swing from the €11.81m profit in the previous year, and adjusted EBITDA fell 40.68% to €19.49m (compared to €32.86m in the previous year). Despite delisting from the Nasdaq Stockholm exchange in September following its takeover by MGM, LeoVegas still has bonds on the market, which led to the company’s decision to publish its quarterly results.
Despite the above, LeoVegas is still one of the iGaming industry’s most popular online casinos. If you’re yet to check it out, why not read our extensive LeoVegas live casino review?
Isle of Man Sees Unprecedented Demand in License Applications from Global Operators
The Isle of Man has seen a surge in applications from global operators keen to secure their licenses on the island. The demand has been fueled by the recent changes in jurisdictional regulation and structure. It is proving to be a compelling location for future-proof industries with a stable political and economic environment, low tax and advanced IT infrastructure.
In 2022, the Isle of Man issued 15% more licenses in 2022 than it handed out in the previous year. In total, there were 75 licenses issued throughout the year which created an additional 1,000 jobs on the island.
UKGC Chief Exec Refutes Claims of an Explosion in iGaming
Performing a keynote speech at the 2023 ICE London exhibition, Andrew Rhodes, the UKGC’s Chief Executive, has refuted claims that there has been an explosion in online gambling since the COVID-19 pandemic. In his “Latest research shaping regulatory decisions in safer gambling in the UK” speech, Rhodes claimed iGaming has not exactly gone through the roof and is now settling into what he described as a new normal.
The statistical stability of overall participation in any form of gambling activity in the last four weeks remained at 44% in September 2022 compared to the same period in 2021. Online gambling’s long-term trend continues to rise and matches land-based gambling, with both reaching 27%. The overall rate of problem gambling remains statistically unchanged as well.
Despite relatively stable participation numbers, some of the largest operator groups have reported a decrease in revenue due to the implementation of safer gaming measures in anticipation of the UK government’s White Paper on gambling. The UKGC has observed a decline in gross gambling yield (GGY) of nearly 16% across larger operators, with the amount of money staked dropping by just over 13%.
Furthermore, there has been a decrease of almost 8% in the number of players losing over £500 per month, and those losing over £200 per month by a little over 2%. Players staking £50 and above per spin for slots have declined by 76%, with some operators experiencing a reduction of over 90%, and the largest drop being over 98%. However, the number of bets has risen by just under 5%, and active users have increased by almost 6%.
Two Other iGaming Regulatory News
The Malta Gaming Authority has revealed a brand new look that includes a brand-new logo and a new website.
The updated logo of the MGA incorporates visual elements of the letter ‘M’ and a play button, symbolizing the gaming industry and its continuous pursuit of advancement and innovation. The MGA’s website has also undergone a revamp, featuring a more modern UX design and an enhanced user interface for seamless navigation. Overall, the brand refresh aligns with the Authority’s core values of competence, excellence, and innovation.
The Institute of Public Health (IPH) recommends a public health approach to tackling gambling addiction in Northern Ireland.
The Institute of Public Health (IPH) has advised the government of Northern Ireland to adopt a public health strategy to minimize gambling harms and safeguard its citizens against gambling addiction. The recommendation was made by doctors, Joanna Purdy and Helen McAvoy at the initial sitting of the Northern Ireland All Party Group (APG) on Reducing Harm Related to Gambling.
The UKGC is widely regarded as the best and also the strictest regulatory authority in iGaming. For that reason, you can always expect a safe experience when playing at online casinos such as those found on our best live dealer casinos portal.
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