Stricter Regulation Ahead for Gaming Industry
2022 is nearly at its end and has been another good year for the gambling industry but the threat of stricter regulation could cause more problems as 2023 begins.
Gambling remains an industry that needs to be regulated. There are always going to be fears of rogue companies who care little for their customers. This is why there has to be a strict set of tests before a license is granted.
Once that license has been granted, there is the need to continue to pay close attention to how gambling companies operate.
Countries such as Spain, the Netherlands and Germany are becoming increasingly stricter in their regulation of the gambling industry. This includes actions being taken regarding the amounts that can be gambled, advertising of their product and affordability checks.
The United Kingdom has seen several gambling companies receiving fines this year. The UK Gambling Commission have been setting new rules that they want those who have been granted licenses by them to follow.
Social responsibility and anti-money laundering are two areas where they want quick and strong actions to be taken. 2023 is likely to see the UK government take action, especially in the area of online gambling.
The level of regulation does vary around the world. In the US, an increasing number of states have been making sports betting legal. This includes New York. Companies are licensed and need to act in a manner that will allow them to keep their licenses.
The stricter regulation is a major worry for gambling companies in NY. They fear that their profits may be seriously reduced if an increasing amount of regulation is imposed on the industry.
Advertising is a key weapon for gambling companies in their attempt to attract new customers. Restrictions are already being placed and fines for breaking the rules are commonplace. In the Netherlands, companies can only send out promotional material to those who are members and have signed up to receive them. If more restrictions are placed on gambling advertising then this won’t be helpful.
The use of free bets and bonuses is another controversial area. Many opponents of gambling see their offering as just a way to attract new customers and ensure their members continue to keep placing bets. This is absolutently understandable from the business point of view, NJ Bet spokesperson said, and added that new customer bonuses offered by legal online sportsbooks in New York significantly decreased in 2022 compared to 2021 offers. Some bookies like BetMGM does not offer anything at all to new signups, whereas if you use current BetRivers bonus code for New York, you can get up to $100 in free bet. Low value incentives are explained by 51% NY tax imposed on gambling companies operating in the state.
There are strong links between gambling and sports teams/events. Many football clubs have gambling companies as their sponsors and again this is an area that is likely to be clamped down on in 2023.
The increased regulation that has been seen in 2022 was not totally unexpected. The UK for example, has a gambling act that is 17 years old. A lot has changed in that time of course, particularly the arrival of the internet and its use for gambling.
Online gambling is an area that will face stricter regulation in the future. It is seen as too accessible, far more than the land-based betting shops. When they close, gamblers can just continue to bet online. Being able to bet on mobile devices also makes gambling easier, so critics want to see stricter regulations being put in place.
Can someone afford to gamble the amounts they are wagering is a question often asked. Stricter affordability checks are anticipated but it’s feared this will simply drive gamblers ino the underground, unregulated gambling market. 2023 promises to be an interesting time for the gambling industry.
