Labour’s gambling pledge
The UK Labour party has published its manifesto for the 2019 General Election. It contains a paragraph on what a Labour government will do on gambling. “A Labour government will curb gambling advertising in sports and introduce a new Gambling Act fit for the digital age, establishing gambling limits, a levy for problem gambling funding and mechanisms for consumer compensations.” Several of these measures are already underway in some form or have been previously stated by various MPs. One element which could be a concern for operators is the mention of “mechanisms for consumer compensations”. There is little detail as to how or for what consumers might be able to claim compensation.
Asia leads global lottery sector
The global lottery sector had a GGY of US$ 138 billion in 2018 and was led by Asia, which commanded a 41% share of the market. By 2022 GBGC forecasts that global lottery GGY will surpass US$ 150 billion. Asia will still be the market leader but its share will have dropped to 39%. North and South America will both have increased their respective shares. The Americas combined share will increase from 29% in 2018 to 31% in 2022. Read more about the world’s lottery markets in GBGC's Global Gambling Report.
Slot stakes in the firing line
Shares in the UK-listed gambling companies took a sharp dive on Monday 4 November 2019 after the release of a report on harm-related gambling from the All-Party Parliamentary Group (APPG).
EU considers new AML Central Authority
The EU is to explore the creation of a new central authority to crack down on money laundering activity, according to the Financial Times.
Government targets winning gamblers
The prospect of a 12% tax on winnings under EUR 500 in Italy was reported by the country’s media in October, having had a preview of the government’s plans for the 2020 Budget. It was also reported that this winnings tax would increase in line with the winnings, up to a rate of 23% for the larger lottery jackpots. But these proposals in Italy are by no means exceptional. Across the world governments are seeking to take money off winning punters.
Increasing regulation, decreasing value
GBGC spoke on a panel at the MannBenham Online Gaming Conference which discussed the topic of international regulatory creep in gambling. Across all gambling sectors in the last 18 months, GBGC has found more than 40 instances of increased regulation, the introduction of a licence ban or increased taxes. The trend for extra regulation shows no sign of slowing down. One particular trend has been that of a tax on players’ winnings. Across the world, from Argentina, to Tanzania, to Russia, gamblers now face the prospect of losing some of their winnings in extra tax, especially for casino gaming and lotteries. All of this regulatory creep has come at considerable cost to shareholder value. Take Bwin as an example. Bwin merged with PartyGaming for GB£ 1.1 billion. PartyGaming was a FTSE 100 company and listed with a market cap of GB£ 4.6 [...]