SBC Digital Summit: iGaming risks greater oversight by regulators

April 29, 2020 11:00 AM
  • Buck Wargo, CDC Gaming Reports
April 29, 2020 11:00 AM
  • Buck Wargo, CDC Gaming Reports

The keynote speaker at the SBC Digital Summit today said iGaming is in danger of becoming a victim of its own success during the COVID-19 pandemic, which has shuttered brick-and-mortar casinos across the globe.

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Jesper Kärrbrink, chairman and creative director of Green Jade GAMES, a Malta-based developer of slot and skill-based games for online casinos, said that success shouldn’t be taken for granted and urged operators to take responsible-gaming measures seriously or regulators will do it for them.

Some regulators are expressing concern about a link between problem gambling and increased use of online casino games.

Last week, Sweden announced a plan for a weekly deposit limit of $500 for online gaming. Spain and Belgium have moved to limit online gaming and Latvia has imposed a total ban. The British government has urged online-gambling operators to increase player protections during COVID-19.

“We know there are always people looking at the industry,” Kärrbrink said. “We saw what happened in Latvia where they temporarily banned all the gaming licenses, and we are seeing (what’s happening in other countries). The more money we make, the more profitability we have, and the more we are growing, the easier it will be for them to have restrictions like this. This is the perfect opportunity to put responsible gaming on top of the agenda and show that we care and take our responsibility.”

SBC also hosted a panel discussion Tuesday on safer gambling during self-isolation.

Andy Danson, head of the international gaming group at Bird & Bird law firm in London, said there have been “less significant changes” in customer behavior than have been reported. There’s been a movement from sports to other products and a little more time on sessions, he said.

On Monday, the UK’s Betting and Gaming Council announced major operators will cease gaming-product broadcast advertising in the UK for the duration of the nation’s COVID-19 lockdown.

On Tuesday, the first pan-European code of conduct for responsible advertising for online gambling was published by the European Gaming and Betting Association.

GVC Holdings CEO Kenny Alexander has called for a ban on betting advertisements during sports broadcasts in the UK.

“I truly believe this is a significant step in the right direction and there will be even more responsible-related messages,” said Tuesday’s panel member Martin Lycka, the director of regulatory affairs for GVC Holdings, owner of Ladbrokes Coral, which has a joint venture with MGM Resorts International.

David Williams, director of regulatory affairs for the Rank Group, a multi-channel gaming operator in Europe, said any narratives of a surge of customers or an out-of-control industry are incorrect. “The changes taking place (in customer behavior) are largely what you expect and pretty modest,” Williams said. “The industry has a lot more to do and is trying to do it.”

Williams admits that there’s an elevated risk, but that does not equate to elevated levels of gambling-related harm.

“There’s an appetite to get ahead of it and to reason with people who have legitimate concerns, whether bounded by data or anxiety,” Williams said. “If we can meet with those people and put in place things that might address that for this area, that’s a fair place to meet.”