Is Stricter Regulation for the iGaming Industry Likely in 2023?

Betting on sport is legal in many parts of the world. However, even in areas where it is legal, there are regulatory bodies and laws that are making it difficult for the gambling industry. As a new year is nearly with us, what lies ahead in 2023?

Since 2018, over 30 US states have made sports betting legal, particularly online. This also includes sports betting in New York where you can legally use mobile wagering apps.

There is regulation of the gambling industry in those states. The body that issues the operating license will be keeping a close eye on areas such as underage gambling and bets being placed on the sites from states where betting is yet to be made legal. 

There’s taxation of course and in New York, that is a rate of 51%, a level higher than in any other American state. One of the fears that the US gambling industry has is that other states may raise their tax levels to try and raise more gambling tax revenue. If the economy struggles then that cannot be ruled out.

Other countries are being a lot stricter when it comes to regulating the gambling industry. They know that it is a flourishing business but there are always concerns about the problems that gambling can cause its customers.

In the UK for example, gambling companies are finding life increasingly difficult. The UK Gambling Commission (UKGC) issues licenses to companies so they can operate in the United Kingdom. 2022 has seen a series of fines being made, including one of £17 million to Entain and £9.3 million to 888. Warnings have been made that further breaches of their licensing conditions could see them losing their ability to operate in the UK.

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Social responsibility and anti-money laundering failures are the main reasons why fines are being issued. This comes at a time when the UK government is preparing to pass laws that will reform the out-of-date 2005 Gambling Act and make their laws fit for the digital age.

The Netherlands has been strict too and has already reduced maximum stakes. One area that is a concern is the offering of bonuses and promotions. If a site member has signed up to receive promotional literature, then that’s acceptable. 

However, placing adverts about bonuses elsewhere and attempting to entice new customers can lead to fines as Unibet discovered soon after they opened up in Ontario, Canada.

Advertising is a thorny subject when it comes to gambling. Having the name of a gambling company on the front of a sports team’s shirt is frowned upon in many countries. Restrictions are also being placed on the times that gambling advertisements can be shown on television.

There is likely to be more regulation of the gambling industry on its way. Germany and Spain continue to be stringent in their attitude towards betting. Israel still hasn’t legalized betting on sport and attempts to block the use of VPNs preventing Israelis from joining overseas sites.

How will this affect the gambling industry in the future? Those in New York and New Jersey for example may find that their flourishing businesses might just see profits reduced in the future if the intention of increasing regulation is intensified in those states and others around the US.