Latest Gambling News: Swedish Regulator Wants More Powers To Go After Illegal Operators, and more

Catch up on some of the stories our gambling compliance analysts have covered lately, and stay up-to-date on the latest news.

Swedish Regulator Wants More Powers To Go After Illegal Operators

Sweden’s gambling regulator has joined trade groups in calling for expanding the scope of its powers under the Gambling Act to stop unlicensed operators that are not just directly targeting Swedish players, after reviewing the illegal market.

The Swedish Gambling Authority (SGA) published its analysis on unlicensed gambling on April 9, which details unlicensed gambling, contains a survey of key unlicensed operators targeting the market and their methods, as well as an overview of how other countries tackle illegal gambling effectively, something the SGA believes “other authorities and players in the gambling market can also benefit from”.

SGA director general Camilla Rosenberg said an ongoing investigation into expanding the scope of its powers will be completed by September 17, adding that current interventions are still important and have an effect.

“It is therefore important that we continue our work to combat illegal gambling even during the ongoing investigation of the regulations,” Rosenberg said.

Gustaf Hoffstedt, the secretary general of the Swedish trade group for online gambling (BOS), said the report “plays an important role” in addressing the unlicensed market.

“We also note that the SGA in the report promises a new channelization measurement during Q2. It is very likely that the upcoming measurement will show lower channelization than the last one presented, given that the same sources are used again. At least one of these sources has recently significantly lowered its channelization estimate for Sweden, in their case from 91 percent to 72 percent,” Hoffstedt told Vixio GamblingCompliance.

The Swedish Gaming Industry Association, Sper, which represents land-based and online operators as well as suppliers, similarly welcomed the news and reiterated its demand for the government to implement five measures to tackle unlicensed gambling.

Pennsylvania Cracks Down on Sweepstakes Sites

After the Pennsylvania Gaming Control Board (PGCB) revealed that it has issued 18 cease-and-desist letters to online sweepstakes casino operators, an industry trade group on Thursday (April 10) described it as “regulatory overreach.”

“This broad regulatory action is out of step with legal precedent and industry standards,” the Social and Promotional Games Association (SPGA) said in a statement. The SPGA noted that Mississippi, Arkansas and Maryland had rejected similar proposals.

“These games are not gambling and do not compete with it,” the SPGA said.

On Monday, the PGCB testified before the House Gaming Oversight Committee that none of the 18 companies held interactive gaming licenses issued by the agency and considered them to be offering illegal gambling.

The PGCB, which does not have the authority to take legal action or act against the companies, said all 18 recipients had complied with the orders.

Techno Offshore Limited Fined €1.2m In Netherlands For Illegal Gambling

The Netherlands Gambling Authority (KSA) has issued a €1.2m fine to Kahnawake-licensed Techno Offshore Limited for offering illegal gambling.

Techno Offshore Limited operates several websites, including the nolimitbet.com and simplecasino.com websites, which did not take sufficient measures to prevent Dutch players from gambling on its sites.

Additionally, the operator had no apparent age verification process, and several banned features, such as autoplay and turboplay, were available, according to the KSA’s update on April 9.

Michel Groothuizen, chair of the KSA’s executive board, said the regulator has found illegal operators often do not implement measures to reduce risky gambling behaviour, “for example by not using age verification, enabling payments with crypto, or a lack of gaming limits”.

“We take tough action against these types of parties, because they attract players to illegal offerings and players are insufficiently protected there,” he said.

Debate Delayed On Thai Integrated Resort Bill

The Thai government has held off on its bill legalising casino gambling until the next parliamentary session after cancelling a debate scheduled for Wednesday (April 9) amid growing opposition to the bill and wider fallout from punitive US tariffs.

Prime Minister Paetongtarn Shinawatra said on Tuesday that responding to a 36 percent US government tariff on all Thai products in force from Wednesday has replaced the bill as a priority, along with handling the impacts of a severe earthquake in neighbouring Myanmar in March.

“We will continue to communicate so that people will have a better understanding” of the bill, the Bangkok Post quoted Paetongtarn as saying.

Political, religious and community opposition to the integrated resort bill has steadily increased in recent months, despite it containing an additional and potentially self-defeating ban on casino entry for all but the wealthiest of Thai nationals.

Bally's Buy-In To Star Entertainment Reduced To A$200m

The A$300m ($181m) takeover package committed by Bally’s Corp to save Australian casino operator The Star Entertainment Group from liquidation has fallen by A$100m after Star’s leading shareholder exercised an option to invest that amount.

The subscription for A$100m by Investment Holdings, a vehicle controlled by billionaire Australian pub owner Bruce Mathieson, means that Bally’s stake in the company after closure will fall from 56.7 percent to likely below 50 percent.

However, the binding term sheet for the agreement and statements by the three parties have not identified resulting shareholdings in the event of a Mathieson funds injection. Mathieson currently owns a little under 9.6 percent of the company.

In a filing to the Australian Securities Exchange on Tuesday (April 8), Star Entertainment said it “has now entered into a commitment letter with Investment Holdings under which [it] will subscribe for A$100m” out of the A$300m package, or the limit available to Mathieson.

The Investment Holdings funds and Mathieson’s elevated influence over the embattled casino operator are subject to the same terms that Bally’s and Star agreed to.

When contacted by Vixio GamblingCompliance on Wednesday, Star Entertainment’s media spokesperson Helen Karlis was unable to identify the revised Bally’s shareholding if the deal proceeds. Bally’s and Investment Holdings could not be contacted for comment.

Nevada Bill Increasing Illegal Gaming Penalties Passes Senate

A bill to strengthen enforcement measures to crack down on illegal, unregulated gambling in Nevada has passed the Senate, sending the measure to the Assembly for its approval with less than two months left in this year's session.

Senate Bill 256, authored by Democratic Senator Rochelle Nguyen, would require any operators found to have operated illegally in the state to disgorge all earnings, with the funds directed to Nevada’s general fund.

Nguyen’s bill also proposes upgrading some offenses from misdemeanors to felonies, increasing the legal consequences for participating in illegal gambling. A prison sentence could range from one to ten years, with fines from $10,000 to $50,000, according to the proposal.

Nguyen’s bill also would allow Nevada to prosecute illegal gambling operators even if they are based outside the state, as long as they accept bets from Nevada residents.

The bill has garnered support from the American Gaming Association (AGA), Association of Gaming Equipment Manufacturers (AGEM) and the Nevada Resort Association. The Nevada Gaming Control Board (NGCB) does not have an official position and is neutral on SB 256 because it’s not an agency bill.

The Senate voted 20-0 with one member excused to pass the measure on Monday (April 7).

The Assembly Judiciary Committee unanimously passed Assembly Bill 58 on Monday, which would allow the NGCB to administratively approve new casino games without additional approval from the Nevada Gaming Commission. The bill heads to the Assembly floor for consideration.

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