On October 21, 2024, the UK Gambling Commission (UKGC) announced the launch of its first extensive study of the black market for online gambling in the UK. The research aims to improve the Commission’s ability to monitor illegal gambling activities and is expected to provide key insights by late spring 2025.
A New Approach to Understanding the Black Market
The UKGC hopes this research will help uncover why and how consumers are accessing unlicensed gambling sites. By analyzing this data, the Commission plans to enhance its ability to detect unlicensed platforms and estimate their usage among British consumers. The findings will also form the basis for improving online monitoring efforts to better understand the extent of the illegal gambling market in the UK.
Much like similar studies by other European regulators, the UKGC’s research will combine web traffic data with gambling behavior insights to assess the total financial yield, known as Gross Gambling Yield (GGY), generated by the black market.
Estimating Illegal Market Spend
The study estimates average player spending on illegal gambling platforms using data from over 139,000 online gambling accounts provided by seven major UK operators. This data, collected from July 2018 to June 2019, indicates that the average GGY per minute for online slots is approximately £0.32, as the Commission suspects most unlicensed gambling activity involves slots.
However, the UKGC has acknowledged limitations in its methodology, particularly around accounting for high spenders in other types of gambling, such as sports betting.
Analyzing Web Traffic and Search Trends
To identify unlicensed gambling sites, the Commission is using tools like Google Trends and Similarweb to track popular search terms. The top five Google search results for each term are flagged, and any affiliated websites promoting illegal gambling are reviewed. Data on web traffic and average visit duration are collected for each unlicensed site to gain a clearer picture of their usage.
International Insights on Black Market Spending
The UKGC’s efforts come as regulators in other countries, including the Netherlands and Sweden, report challenges in understanding the scale of black market spending. These countries have found that players may spend more on illegal gambling sites than on licensed ones, a trend the UKGC is considering in its own research.
The Commission also highlighted that its current model does not yet account for time spent on unlicensed platforms where no money is wagered. Updates to the GGY estimates will be made as more recent data becomes available.
Future Studies to Explore Social Media and Streaming Platforms
The UKGC plans to expand its research in the future by examining how social media and encrypted messaging apps like WhatsApp and Telegram, as well as streaming services such as Twitch and Kick, contribute to the black market. The role of these platforms in directing traffic to unlicensed gambling sites will be scrutinized.
Licensed operators are encouraged to provide relevant data to aid the Commission’s research or suggest new detection methods.
Industry Reactions to the Growing Black Market
A separate study commissioned by the Betting and Gaming Council (BGC) released in September 2024 estimates that the UK’s black market for online gambling could be handling as much as £2.7 billion in bets each year. BGC CEO Grainne Hurst described the findings as “deeply concerning” and pointed to the dangerous growth of this unregulated sector.
The UKGC remains committed to tackling the unlicensed market and welcomes feedback from industry stakeholders to refine its approach and ensure a safer gambling environment for all UK consumers.
The Pennsylvania Gaming Control Board (PGCB) recently announced that gaming revenue for September 2024 reached an impressive $505.9 million, marking a year-over-year growth of 6.17%. This increase was largely driven by significant gains in online gaming and sports betting. Let’s delve into the key details, highlighting which sectors performed the best and how brick-and-mortar casinos compared to online platforms.
Steady Growth in Online Gaming and Sports Betting
One of the biggest contributors to Pennsylvania’s gaming revenue growth came from the internet casino sector, with iGaming revenue reaching $176.7 million in September—a notable 10.79% increase compared to the same month in 2023. Despite this, there was a slight dip from the $183.7 million seen in August 2024, representing a 3.8% decrease.
Sports betting also saw significant growth, with revenue climbing by 46.13% to $53.5 million. This rise is attributed to the beginning of the football season, which always boosts betting activity. The total betting handle for sports wagering reached $811.3 million, an 11.71% increase over the previous year.
Record-Breaking Bonuses and Credits
The gaming sector also saw record-setting bonuses and credits, totaling $43 million. This contributed to adjusted gross revenue (AGR) of $53.5 million from a gross revenue of $95.8 million—a 46.1% increase year-over-year, making it the fifth-highest total on record.
The Impact of iGaming and Sportsbooks
Online casinos, led by Hollywood Casino, Valley Forge, and BetRivers, contributed significantly to the state’s revenue. Hollywood Casino, which operates DraftKings, BetMGM, and its internal app, reported $66.9 million in iGaming revenue, up 3.2% year-over-year. Meanwhile, Valley Forge Casino Resort, with its FanDuel sportsbook, saw a 33.03% year-over-year revenue increase, bringing in $47.1 million. BetRivers came in third, surpassing $30 million for the sixth time in seven months with $31.5 million in revenue.
Betting Handle and Sportsbook Performance
Valley Forge also led in sports betting revenue, generating $27.4 million from a betting handle of $320.4 million. Hollywood Casino at the Meadows followed with $13.1 million from $237.2 million in wagers. The Hollywood Casino Morgantown and Hollywood Casino at Penn National also posted solid sports betting numbers, with revenue of $2.5 million and $2.46 million, respectively.
Brick-and-Mortar Casinos: Mixed Results
While online gaming and sports betting saw impressive growth, Pennsylvania’s brick-and-mortar casinos had a more mixed performance. Parx Casino remained the top performer with $30.2 million in slot machine revenue, despite a 4.25% decrease year-over-year. Wind Creek Bethlehem, in contrast, posted a 2.1% increase, generating $24.2 million in slot revenue. Rivers Casino Pittsburgh saw a slight decline in slot revenue, down 2.36% to $20.7 million.
Table Games Dip Slightly
Table games across the state brought in $73.4 million in revenue, a 2.33% drop from the previous year. Despite this, the overall impact on the state’s total revenue was minor, thanks to the growth in iGaming and sports betting.
Pennsylvania’s Total Tax Revenue
In total, the state collected $211.2 million in taxes from its various gaming platforms in September 2024. Of this, $51.1 million came directly from internet casino gaming. Pennsylvania’s $6.21 billion wagered through iGaming casinos was the second-highest in the state’s history.
Top-Performing Casinos
- Valley Forge Casino Resort: Valley Forge led the pack in overall revenue, with a massive 29.5% year-over-year increase, bringing in $85.6 million.
- Hollywood Casino at Penn National: This casino saw a 7.10% rise in revenue, generating $82.5 million.
- Parx Casino: Despite leading in slot revenue, Parx experienced a 6.52% decrease in total revenue, reporting $52.2 million.
- Rivers Casino Philadelphia: The casino recorded a 7.84% increase in revenue, reaching $51.1 million.
A Strategic Expansion in the UK Online Casino Market
Spinomenal has significantly bolstered its presence in the UK’s competitive online casino sector through a strategic partnership with Rank Group. This collaboration has enabled Spinomenal to integrate its diverse slot game offerings into Rank Group’s esteemed portfolio of online casino brands. Utilizing Light & Wonder’s OpenGaming aggregation platform, this partnership marks a significant step for Spinomenal in the UK market.
The Malta-based slot developer will now showcase its popular titles, including “Fairytale Beauties,” “Majestic King,” and “Majestic White Rhino,” across Rank Group platforms such as Mecca and Grosvenor. Lior Shvartz, CEO of Spinomenal, expressed excitement about the partnership, noting, “Rank’s esteemed reputation within the British market is well-recognized, and partnering with such a distinguished operator will considerably enhance our market presence.”
Enhancing Gaming Choices for UK Players
This partnership promises to enrich the gaming experiences for UK players by offering access to Spinomenal’s compelling slot games. Nolan Frendo, Casino Games Manager for Rank Group, praised Spinomenal’s commitment to innovation and creativity, aligning perfectly with their goal of providing top-tier gaming experiences to their users. “We are eager to see the fruits of this partnership and anticipate remarkable outcomes that will benefit both our players and our platform growth,” stated Frendo.
The collaboration not only extends Spinomenal’s footprint in the UK market but also continues Rank Group’s pattern of enhancing its online casino offerings. Following a similar recent agreement with Playson, this deal further diversifies the content available to Rank Group’s players, underscoring the group’s commitment to offering varied and high-quality gaming options.
Spinomenal’s European Market Strategy
Furthermore, this move is part of Spinomenal’s broader strategy to expand its influence across European markets, demonstrated by recent partnerships in the Netherlands and Bulgaria. In July 2024, Spinomenal extended its reach to the Dutch market by integrating its gaming titles with Jacks.nl, managed by JVH Gaming & Entertainment Group. Additionally, earlier in the year, Spinomenal made its debut in the Bulgarian market through a collaboration with 8888.bg.
As Spinomenal continues to extend its global reach, this partnership with Rank Group represents a significant milestone in their expansion efforts, promising to deliver innovative gaming experiences to players and solidify their position as a leader in the online casino industry.
Lottery Funding in Jeopardy
South Africa might experience a significant disruption in its National Lottery operations, potentially lasting up to six months. This pause could severely impact numerous charitable and community groups, including old age homes, sports, and arts organisations, which rely heavily on lottery funding for their daily activities.
Licensing Delays and Allegations of Misconduct
Recent complications have arisen around the National Lottery Commission (NLC), leading to a postponement in awarding a new operating license by the Minister of Trade and Industry, Parks Tau. Allegations of irregularities during the current selection process for a new lottery operator have led to unexpected delays, and if unresolved, could lead to a temporary cessation of the lottery.
A close source revealed, “The licensing process has been marred by accusations and legal concerns, jeopardising the timely selection of a new operator.”
Continued Delays and Legal Challenges
Despite the expectation to name a successful bidder last month, the decision has been deferred following allegations involving board members and bidding entities. The current license holder, Ithuba, whose contract was extended by 18 months last year, is set to expire next May. Preparations for a new operator require a minimum of six months to establish the necessary infrastructure, such as ticket machines nationwide.
Potential Impact on Community Support
The hiatus could have far-reaching effects on various community support initiatives. Funding for early childhood development, sports organisations like athletics and swimming, and even the SA Sports Confederation and Olympic Committee could dry up without the flow of lottery funds.
“Last year alone, R1.2 billion was distributed to support these organisations through the National Lotteries Distribution Trust,” the source added.
Governance and Legal Concerns
In a recent parliamentary session, Tau faced scrutiny over alleged conflicts of interest and questionable legalities concerning the board’s constitution. The Parliamentary portfolio committee on trade, industry, and competition expressed apprehensions that the board might have been improperly constituted and that the selection process lacked transparency.
Implications of a Prolonged Shutdown
Should the lottery operations stall, it could trigger a domino effect, risking over 10,000 jobs and leading to a potential retrenchment within the NLC and related sectors. The absence of a functioning lottery would also pave the way for unregulated operators, further destabilising the industry.
Commitment to Integrity and Governance
Despite these challenges, NLC board chairperson Barney Pityana assured the public of the board’s commitment to transparency and good governance. “We are diligently following all legal protocols and anticipate resolving these issues promptly. The selection process is rigorous, and we are committed to ensuring it remains fair and transparent,” Pityana stated.
As the process drags on, all eyes are on Minister Tau’s next moves and how they will navigate the ongoing controversies to restore stability and trust in the National Lottery’s operations.
Regulatory Oversight and Enforcement Actions
Crown Melbourne has incurred a significant fine of $2 million imposed by the Victorian Gambling and Casino Control Commission (VGCCC). This penalty comes from the casino’s failure to prevent 242 self-excluded individuals from gambling between October 2023 and May 2024. This oversight highlights critical lapses in adherence to established gambling regulations, emphasizing the necessity for more robust protective measures against gambling-related harm.
Legal Obligations and Self-Exclusion Violations
Under the guidelines of the Casino Control Act 1991, casinos are obligated to prevent access to individuals who have self-excluded due to gambling addiction. These regulations aim to support individuals in their recovery by removing their ability to engage in gambling activities. The VGCCC discovered that Crown Melbourne neglected these duties, leading to significant regulatory scrutiny and the imposition of fines.
The Importance of Effective Harm Prevention
Fran Thorn, Chair of the VGCCC, stressed the importance of self-exclusion as a critical harm prevention tool. According to statements made to ABC News, Thorn pointed out the casino’s essential role in safeguarding vulnerable patrons by rigorously implementing these self-exclusion mandates. Despite some excluded individuals’ attempts to evade these measures, the casino’s primary responsibility lies in enhancing its monitoring and enforcement mechanisms.
Investigative Findings and Recommendations
The VGCCC’s investigation pinpointed systemic shortcomings in Crown Melbourne’s operational protocols, including security measures, surveillance processes, and employee training. The regulatory body has now mandated that Crown Melbourne consult with an independent expert to review and enhance its self-exclusion program, ensuring future compliance and effectiveness.
Crown’s Past and Future Regulatory Challenges
This recent fine is part of a broader series of penalties totaling over $250 million previously levied against Crown for various regulatory infractions. These actions stem from extensive evaluations, including those by the Finkelstein Royal Commission, which uncovered widespread operational failures. The commission’s ongoing directives aim to foster substantial organizational reforms within Crown Melbourne.
Crown Melbourne’s Commitment to Compliance and Reform
In response to the VGCCC’s stringent measures, a spokesperson from Crown Melbourne affirmed the casino’s commitment to creating a safe and responsible gaming environment. The casino has pledged to continue collaborating with the VGCCC to enhance its compliance measures significantly. These efforts include bolstered security protocols, better staff training, and improved surveillance to ensure that self-exclusion orders are more effectively enforced.
Through these comprehensive steps, Crown Melbourne aims to restore trust and ensure the integrity of its operations, aligning closely with regulatory expectations and commitments to patron safety.