Record fines and warnings issued
As the news portal “Wallstreet-online.de” reported, a new study was carried out “USA-Casino.com” highlighted that many international gambling regulators imposed massive penalties against online casinos and land-based casinos last year. According to “Wallstreet-online.de”, it wasn’t just about record fines and warnings, but even about the suspension of gambling licenses.
Massive increase in fines
The analysis of the data set collected by “USA-Casino.com” showed that 36 gambling providers worldwide were fined in 2022, with a total of an average of $128,913,840 per case lay. This corresponds to an increase of 166 percent compared to the previous year. In 2021, the penalties imposed were around $48,642,992. The providers that were held accountable include Betr, Betway, Draftkings, BetMGM, Unibet, LeoVegas, 888 and PointsBet.
Reasons for the sanctions
The reasons for the penalties imposed could hardly be more different. Gambling operators had to justify, among other things, accepting bets before obtaining a valid license or granting promotions to unqualified players. Added to this were inadequate protection of minors, spam, violations of advertising regulations, inadequate combating of money laundering, accepting illegal bets, offering bonuses and promotions that violate applicable gambling laws, errors in setting limits and the exclusion of players who are at risk of gambling addiction.
Sanctions running into millions
One of the biggest penalties went to Australia's Star Entertainment Group, which was fined around A$100,000 by authorities Down Under for licensing violations. Allegedly it was also about the allegations of money laundering in a casino in Sydney, which led to the license being revoked. Entain was also fined $21 million by the UK gambling regulator after the commission found anti-money laundering irregularities at Entain-owned Coral and Ladbrokes.
High penalties in Great Britain
The punishment against Entain was the largest that the UKGC (United Kingdom Gambling Commission) has ever had to impose. As of November 2022, the regulator had already hit 16 operators with penalties totaling $48 million. There have also recently been warnings in Europe, which primarily involved violations of the Youth Protection Act. However, Andrew Rhodes, CEO of the British regulator, explained that the penalties have already had an effect.
More punishments in the future?
Changes are already noticeable in the USA. What is also important here is the attention and critical reporting from the media, such as the New York Times or the Wall Street Journal, which more than clearly highlighted the shortcomings of the gaming industry. The former US gaming regulator Richard Schuetz therefore sees further fines, sanctions and regulations facing operators of online and land-based casinos in 2023 if they do not comply with applicable laws. The forecast also calls for further advancement of global marketing and licensing regulations for online casinos.
"Many regulators are overwhelmed and underprepared for the challenges that come with gambling regulation. It is essential for gambling regulators to find the right people for the job - people with first-hand experience and understanding of the gambling industry - and whose first priority is consumer protection, not quick and easy tax profits." - Richard Schuetz, former US gaming regulator, Statement to “USA-Casino.com”
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