Industry lobbying falls on deaf ears
Lobbying report, France Ligue 1, Playn’GO at the G7, Flutter job cuts &Co
Hello, on Gaming&Co today:
Friday feature: How much positive change does lobbying drive for the industry?
France Ligue 1, Playn’GO at the G7, Flutter job cuts
News shorts: Partouche, Genius Sports, Brazil
Subscribe to Gaming&Co!
Friday feature: Illegal market alerts fall on deaf ears
Alarms about the rise of black market operators are common in iGaming. Whether they are true or not, lawmakers seldom seem to listen to the industry
Alarm bells: The Betting and Gaming Council (BGC) has launched a fresh warning over the threat of black market gambling in the UK but it remains to be seen whether regulators and policymakers will be swayed by the familiar alarm bells. A YouGov survey, commissioned by the BGC, claims that 65% of “regular punters” would consider using unlicensed betting sites if taxes on the industry were increased as part of plans to introduce a single gambling tax and betting became “more expensive”. No details were provided about the number of players surveyed however.
Grainne Hurst, CEO of the BGC, described the results as “a wake-up call for the government”. “Punters have been loud and clear, hit them with further taxes and they will walk away from sports like racing, straight to the black market, triggering a spiral of decline,” she said.
Pioneer spirit: Responding to the survey, Ciaran O’Brien, Head of Public Affairs at Entain, said the UK had been a regulatory pioneer and, pointing to the rise of crypto gambling as an alternative to licensed operators, warned that viewing the gambling industry as a “free hit” for a tax rise is “not only illusory, it is dangerous”.
The BGC launched the survey in The Sun, a deliberate choice of press outlet aimed at galvanising consumer opposition to potential tax rises. But question marks remain about how effective this line of lobbying will be, particularly given the UK Gambling Commission’s existing focus on tackling illegal gambling and the general health of what is a highly developed and mature market.
Liberal doesn’t mean free-for-all: Speaking at ICE earlier this year, UK Gambling Commission CEO Andrew Rhodes said fighting the illegal market was a “top priority” for the commission, but also made the point that as one of the most liberalised markets in the world, the UK was also one of the most regulated and “highly channelised”.
According to figures from H2 Gambling Capital, less than 3% of online stakes in the UK flow to unlicensed operators, among the lowest black-market penetration rates in Europe.
Compare and contrast: That stands in stark contrast to developments in other countries. In the Netherlands, where a raft of new restrictions and tax hikes have hit the sector, H2 warned that the illegal market will be bigger than the regulated market as early as next year.
In France and Germany, tough regulatory regimes and high taxation levels also prompt sharp warnings from the industry, but few signs of their government rethinking their policies. However, a key difference is that illegal operators enjoy significant shares in those markets.
In France, gambling is often viewed or analysed through a public health lens rather than an economic one. But if that is the case, it is worth wondering why there is no concerted drive to protect the estimated 4 million French consumers who play on illegal websites.
Against that backdrop, the BGC’s latest survey may be as much about shifting public sentiment as influencing Whitehall directly. Whether that tactic will cut through in a post-White Paper political landscape remains open to question.
Lobby questions
More broadly, the issue also calls into question the lobbying tactics of gambling companies and whether they really do influence policy or tax rates. Looking at the US, the recent tax increases that have hit online sportsbooks in Illinois, Maryland and most recently Louisiana have happened despite considerable and lengthy campaigning by industry lobbyists.
Counterweight: At the same time, they are also used to argue for online casino regulation as a way to counterbalance high OSB taxes, as Betclic CEO Nicolas Béraud has also done in France (still, French operators would love to be subjected to GGR taxes of just 20%).
The Maryland and per wager fee in Illinois have been followed in the past few days by Louisiana upping its rate 5% to 21% of GGR and as Steve Ruddock, publisher of the Straight to the Point newsletter, wrote recently, further tax rises could happen in North Carolina, Ohio and New Jersey - and could lead to more forceful calls for online casino regulation beyond the six states where the vertical is currently permitted.
Gaming&Co asked Ruddock if the rises could really act as a spur to regulate online casino in the US and, just as importantly, how receptive are lawmakers to the arguments for further liberalisation put forward by the industry?
Dissipation effort: The Illinois, Maryland and Louisiana tax increases may “see the industry prioritise online casino regulation”, said Ruddock, but it may also “shift its lobbying efforts away from online casinos to resist the proposed tax rate increases elsewhere”.
No echo: As for the industry’s arguments about balancing OSB taxes with iCasino revenues, potential tax revenues and offering a safe alternative to the black market, these haven’t resonated in the US.
“There are a dozen ways a legislative body could raise the same or more tax revenue than online casinos,” he explained, “so unless the arguments you are making are landing, lawmakers are going to cast a very skeptical eye at your true motivations. The industry tends to portray legalisation (of iCasino) as the perfect option, but lawmakers often adopt a more skeptical “what’s the catch” perspective.”
As far as the black market is concerned, Ruddock says the illegal sector “is the bogeyman the industry cites far too frequently, so lawmakers often tune out whenever they hear the words”.
Still, across many European markets it is now impossible to ignore the impact of the illegal sector. And even if lawmakers and some stakeholders often counter that regulation is not a magic solution for resolving low channelisation rates, one industry observer told G&Co that “it should not be a reason to disregard an issue that remains highly relevant to the discussion”.
Lawmakers and operators, no love lost: In the meantime, from July French sportsbooks will contend with overall taxes of close to 70% of GGR (once VAT, marketing tax of 15% or right to bet dues of 1% on stakes are included) and when it comes to lobbying, it seems to be as hard as ever for the online industry to have its arguments heard or win political support.
Founded in 2005, Play’n GO is a global leader in casino entertainment, known for iconic games like Book of Dead and Reactoonz. A pioneer in mobile gaming, the company delivers 350+ premium titles across 30+ regulated jurisdictions. Committed to a fun, responsible iGaming industry, Play’n GO collaborates with operator partners, regulators, and researchers to provide the world’s greatest casino gaming experience. Having expanded into music via its Play’n GO Music brand, Play’n GO is also a proud partner of MoneyGram Haas F1 Team. For more info, visit www.playngo.com.
News roundup: France L1, Playn’GO at G7, Flutter job cuts
New broadcaster will be ready for 2025-26 season, says LFP Media boss
Ready to roll: France’s Ligue de Football Professional will have its own broadcasting channel ready by 15 August when the country’s football league restarts for the 2025-26 season, Nicolas de Tavernost, CEO of LFP Media, told French media this week.
Charged with finding a new broadcast partner that can guarantee the long term viability of Ligue 1 following DAZN’s cancelation of its agreement with LFP after just one season, de Tavernost promised that a Ligue 1-owned channel will be operational for mid-August and has been leading negotiations to determine who will produce the content and who will distribute it.
Contenders include Canal+, Orange, DAZN (althgouh he did not mention DAZN in his comments) and beIN Sports, which has the rights to one match per week for a further 12 months. DAZN meanwhile is hoping that it has a chance of winning the production contract even though its Ligue 1 contract this past year encountered numerous problems.
Despite Ligue 1’s travails impacting the French betting industry this year, the new Champions League format and Paris Saint-Germain winning the competition have helped bookmakers enjoy a productive start to the summer, with audiences and stakes all rising as PSG progressed through the rounds and beat Inter Milan 5-0 to win the Champions League.
Pricing was a major issue for DAZN from the start and de Tavernost promised subscriptions would be below €20 a month and that there would be packages for young people.
Play’n GO to debate policy at G7, G20 and UN meetings
G force: Play’n GO will be taking part in the Global Forum on Responsible Gaming and Gambling Policy at the G7 Leader Summit this week. The company (a Gaming&Co sponsor), will also be taking part in the G20 Summit and the United Nations General Assembly later this year as part of the ‘Global Forum’ project.
Play’n GO’s Head of Government Affairs, Shawn Fluharty, will moderate a session on the opening day of the G7 Summit in Calgary, Calgary, later today and will engage directly with global leaders, regulators, neuroscientists, and public health experts on the critical intersection of gambling, mental wellness, and policy development.
In a statement, the company said it was the only supplier to be invited to take part in the forum and “its presence underscores its unwavering commitment to responsible play”. The company recently announced that it would never supply its casino content portfolio to sweepstakes casinos.
Flutter to cut 200 jobs in UK&I
Tech unification: Paddy Power, Sky Bet and Fan Duel parent company Flutter Entertainment is set to axe around 220 jobs in the UK and Ireland. The move is part of a corporate strategy to unify its brands under a single tech platform and address regulatory pressures that are driving up costs.
It has not yet confirmed where the redundancies will take place and is consulting with staff over the matter, but most of the roles at risk are understood to be at its Leeds office, where many of the Sky Bet tech and product teams are based.
The group told the Irish Times that it is “working with those affected to explore redeployment opportunities wherever possible, it is likely that some roles will regrettably become redundant later this year”.
In the US, market leaders like FanDuel and DraftKings have recently been hit with a ‘per wager’ fee in Illinois and tax rises in Louisiana and Maryland. Flutter announced that it will pass on the Illinois fee on to customers by introducing a new $0.50 transaction fee on each bet placed on its platform in the state from September.
The Conexus Group is dedicated to driving growth and success across the global iGaming industry, including helping land-based and retail casinos transition online. Our key brands — Pentasia, Partis, iGaming Academy, and Incline — deliver specialised human capital solutions, M&A advisory, strategic consulting, training and managed services.
Conexus builds long-term relationships and provides deep sector knowledge, including expertise in the French market, to solve complex challenges. By orchestrating these services under one group, Conexus offers clients a streamlined partnership for enhanced performance and sustainable success.
Contact us for more information.
News shorts
Partouche’s preliminary results for H1 showed that the group enjoyed a 5.7% rise in turnover to €233m, with NGR 3% to €185m as Q2 performed strongly, rising +5% to record revenues of €107m. Group GGR was up nearly 3% to €179m during the quarter.
France was up 3.7% to €160.6m, with footfall up 2.7% and slot machine GGR up 2.8% to €128m, but international revenues were down 4.3% to €18m, although Partouche said revenues from its online gaming partnership with the Middelkerke casino in Belgium were up 72.5%.
Post-tax NGR was up 2% to €283m and non-gaming revenues rose 16% to €24.5m in Q2.
Touchdown for Genius Sports as it agreed a multi-year extension and expansion of its technology partnership with the NFL, running through to the end of the 2029 season. Under the terms of the deal, announced on Wednesday, Genius will continue as the NFL’s exclusive distributor of official data feeds and ‘watch & bet’ offerings to media companies and betting operators, through its BetVision product.
A new addition to the partnership will see the delivery of global digital advertising within BetVision as well as the NFL’s owned and operated digital platform.
Going for a (tax) hike: Brazil’s Ministry of Finance has approved a Provisional Measure raising the GGR tax on betting operators from 12% to 18%. The move, which replaces a proposed hike in the Financial Transactions Tax, is designed to ease inflationary concerns with the government viewing Brazil’s €440m-a-month betting sector as key to fiscal recovery. But industry bodies criticised the decision, warning it could push the total tax burden beyond 35% and risk driving players back to illegal markets.
In related news, the country’s Senate’s Commission Inquiry has proposed a series of radical reforms, penalties and criminal enforcements to crack down on illegal activity in the newly licensed gambling regime.
The 2025 Gaming in Spain Conference, which will take place June 26 in Madrid, is THE event where international and domestic stakeholders in Spain's regulated online gambling market meet.
This year's edition will feature Mikel Arana, Director General of the DGOJ, as the event's keynote speaker. In addition to our usual focus on the Spanish market, the 2025 Gaming in Spain Conference will also feature sessions and speakers from the most promising LATAM markets.
Don't miss it! Register now
Calendar
Events: 26 Jun: Gaming in Spain, Madrid
Contact
Get in touch with Jake Pollard to find out more about Gaming&Co: jake@gamingandco.info