Guarding against the escalating issue of unlawful betting beyond mere rhetoric, assert gambling institutions.
The European Gaming and Betting Association (EGBA) has previously highlighted the escalating illicit gambling market in Europe. Last Thursday, the heads of the major gambling corporations within the EGBA put forth an open statement to emphasize this concern.
Sustainability Report with Cautionary Note
The EGBA published a sustainability report last Thursday [report in English], revealing various positive developments. For instance, the use of player protection tools has skyrocketed, and employee training and finance allocation for player protection and research purposes have significantly improved.
The report also included a public statement signed by the CEOs of the prominent European gambling companies, expressing worry that the recent progress could be threatened by the expanding illicit gambling market in Europe.
The CEOs who lent their signatures to the open statement were:
- John Coates (bet365)
- Jesper Svensson (Betsson)
- Stella David (Entain)
- Peter Jackson (Flutter)
- Per Widerström (Evoke)
- Nils Andén (Kindred)
Is the Europe's Illicit Gambling Market Overpowering the Regulated One?
Approximately 32.5 million players are registered with legal gambling platforms across Europe. Although the legal market is expanding, there's concern that the illicit market is also growing.
The CEOs of the aforementioned gambling companies also bring up recent data from France, where the illicit market is reportedly outpacing the legal sector in certain areas. Additionally, a study conducted by the University of Leipzig confirms that the illicit market is far from being a fringe issue.
In the view of the signatories, it's concerning that a majority of the unlicensed providers fail to conduct age checks. Moreover, illegal providers could lure players with more enticing offers due to lower operational costs, such as the absence of license fees and unpaid taxes.
A History of Treading on the Grey Area
It's essential to note that not all of these companies started their operations in regulated markets, and several continue to operate in unregulated areas.
These companies have been in the headlines for offering unregulated gambling services, with penalties reaching millions of dollars due to violations of gambling laws.
Apparently, some industry heavyweights seem to have their unique take on legality: Entain, for instance, claims it operates exclusively on regulated markets. However, it also admits that it is active in markets that are supposedly on the brink of regulation, including Brazil and Austria.
Time for Action – But What Action?
In conclusion, the CEOs affirmed that "the time for action" is now. However, they haven't specified what exact measures could counteract the proliferating black market and tackle the fundamental issue of new providers continually entering the market.
The sustainability report also included a public statement signed by the CEOs, expressing their concern that the recent progress in player protection and financial allocation could be undermined by the growing illicit gambling market in Europe.
The CEOs further highlighted that the expanding illicit market, as seen in France, threatens to overshadow the legal gambling sector due to its enticing offers and lower operational costs.
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