Romania is preparing to implement one of Europe’s most ambitious gambling reforms, with a draft bill that would prevent citizens from wagering more than 10% of their previous month’s income on gambling activities. This pioneering approach targets gambling addiction through direct financial restrictions rather than traditional methods focused solely on accessibility.
Comprehensive Oversight System
The proposed legislation creates a sophisticated monitoring framework involving multiple stakeholders:
Financial Institution Responsibility
Banks and payment processors will bear significant responsibility for implementing and enforcing spending caps for gamblers. These institutions must verify that gambling transactions do not exceed the 10% threshold of the customer’s documented monthly income from the previous month. Financial entities that fail to enforce these regulations face severe penalties—up to 1% of their annual turnover—creating strong incentives for compliance.
Real-Time Verification Platform
Romania’s National Agency for Fiscal Administration (ANAF) will develop a centralized verification platform connecting all gambling operators.
The system will allow operators to check a player’s remaining available gambling balance before accepting bets. It will track real-time spending across all gambling venues and platforms, preventing players from circumventing limits by spreading activities across multiple operators. This comprehensive approach ensures consistent enforcement across both digital and physical gambling environments.
The infrastructure represents a significant technical undertaking, requiring seamless integration between tax authorities, financial institutions, and both online and land-based gambling operators.
Dual Enforcement Approach
The legislation implements a two-pronged enforcement strategy:
For Online Gambling
Digital platforms must verify a player’s spending allowance through the ANAF system before processing transactions. Banks serve as a secondary checkpoint, monitoring electronic payments to gambling operators and blocking transactions that would exceed the 10% threshold.
For Land-Based Operations
Physical establishments—including casinos, betting shops, and venues with slot machines—must check patrons’ spending limits through the same verification system. This presents unique implementation challenges for cash-based transactions that traditionally offer greater anonymity.
Escalating Penalties for Non-Compliance
The draft bill establishes a strict progressive penalty system:
- For a first violation, operators will face fines ranging from 200,000 RON ($43,416) to 500,000 RON ($108,540).
- A second violation results in immediate revocation of the gambling license, effectively terminating the operator’s ability to conduct business in Romania.
These severe consequences reflect the government’s determination to ensure universal compliance with the new standards.
Part of a Broader Regulatory Strategy
This income-based spending limit is the latest development in Romania’s comprehensive gambling reform agenda. Previous measures include:
The government implemented a 40% tax on casino withdrawals in 2022, followed by legislation passed in October prohibiting gambling venues in communities with fewer than 15,000 residents. These measures were accompanied by enhanced advertising restrictions for gambling products.
Prime Minister Marcel Ciolacu has framed these efforts as a direct challenge to the gambling industry’s influence, stating: “Right now we are fighting an industry that has a total turnover of €10-12 billion. It is the first law adopted in Parliament in 30 years against this mafia that has controlled the political world until now.”
Setting a European Precedent
If successfully implemented, Romania’s approach could establish a new regulatory paradigm for addressing problem gambling through direct financial controls. Other European nations struggling with gambling-related harm may closely observe Romania’s experience to evaluate the effectiveness of income-based spending limits as a harm reduction strategy.
The draft bill represents a significant shift from traditional gambling regulations focused on venue restrictions and advertising limitations toward a model that directly addresses the financial impact of excessive gambling on individual players.
Macau’s gambling industry saw a significant boost in February 2025, with gross gaming revenue (GGR) reaching MOP19.74 billion (USD 2.46 billion), exceeding analyst expectations and setting a positive tone for the year.
Chinese New Year Drives Growth
The 6.8% year-on-year increase can largely be attributed to the Chinese New Year Golden Week holiday, which ran from January 28 to February 4. This traditional peak tourism period brought a surge of mainland Chinese visitors to Macau’s casinos.
February’s performance represents an 8.1% increase compared to January 2025, marking the highest monthly GGR since October and helping to offset January’s disappointing 5.6% year-on-year decline.
Recovery Still Below Pre-Pandemic Levels
Despite the positive growth, February’s figures reached only 77.8% of pre-COVID February 2019 levels, when GGR was MOP25.37 billion. This highlights the ongoing recovery process in Macau’s gaming sector.
Galaxy Entertainment Group chairman Francis Lui expressed confidence in meeting the government’s annual target: “Although gaming revenue for January’s Lunar New Year may have been lower than expected, the performance in the second half of February has improved and exceeded expectations.”
Analyst Forecasts Exceeded
The market significantly outperformed analyst forecasts, which had predicted only a 0.8% year-on-year increase. JP Morgan analysts had accurately forecast February GGR of about MOP19 billion.
Combined Performance for Early 2025
Looking at the first two months of 2025 combined, GGR was up marginally over 2024, at just 0.5%. This modest growth reflects the mixed performance between January’s decline and February’s stronger results.
Premium Mass Segment Contribution
According to Jefferies, operators including Galaxy and Melco indicated they experienced a “long tail effect” from the Chinese New Year holiday, primarily driven by the premium mass segment of players.
Outlook for 2025
Analysts have adjusted their forecasts for Macau’s annual GGR growth to between 4% and 9% for 2025. Jefferies Equity Research noted the industry is “making up lost ground after a weak performance” in January.
To reach the government’s MOP240 billion target for 2025, the sector would need approximately 6.9% growth each month for the rest of the year.
Cautious Industry Perspectives
Some industry analysts remain cautious. CreditSights Inc pointed out that while visits from lower-GDP provinces could rise, they may not substantially accelerate the post-pandemic recovery to pre-crisis levels.
Seaport Research Partners shared a similar view, highlighting that despite February’s overall positive performance, Golden Week GGR declined compared to previous years.
Merkur Slots UK Limited, overseeing more than 200 adult gaming centres (AGCs) across the United Kingdom, has been fined £95,450 by the UK Gambling Commission. This financial penalty was imposed after an investigation into how a customer was managed at a Merkur venue in Stockport, where the patron lost nearly £2,000 over several extended gambling sessions spanning a couple of days.
Details of the Gambling Sessions
The investigation by the Gambling Commission revealed that between November 1 and November 3, 2023, the customer engaged in lengthy gambling sessions with no recorded staff interactions. On November 1, the customer gambled from 1:50 PM to 6:43 PM and resumed the next day at 1:28 PM, continuing until just before 1:00 AM on November 3. These sessions resulted in total losses amounting to £1,981, raising serious concerns about the lack of intervention by the venue’s staff despite clear signs of potential gambling harm.
Regulatory Oversight and Failings
This incident highlights significant shortcomings in Merkur’s implementation of the Licence Conditions and Codes of Practice (LCCP). These regulations mandate that operators must proactively engage with customers showing signs of distress or excessive gambling to minimize risks associated with gambling harms. The failure at the Stockport gaming centre was attributed to a lack of effective training and the proper implementation of established harm-prevention protocols.
Andrew Rhodes, CEO of the Gambling Commission, emphasized the broader implications of the failure, stating, “This case underlines the need for all land-based gambling operators to not only establish but also rigorously enforce policies aimed at protecting consumers.” Rhodes further noted that both online and physical venues must ensure that their staff are equipped and willing to intervene when necessary.
Conclusion and Industry Implications
The fine and the circumstances leading to it serve as a stark reminder to the gambling industry of the critical importance of social responsibility. The Gambling Commission’s action against Merkur underscores the need for continuous vigilance and strict adherence to customer protection standards. It also stresses the importance of training staff adequately to recognize and act upon signs of gambling harm effectively.
This regulatory action is a clear message to all gambling operators about the serious consequences of neglecting their duties under UK law, particularly those designed to safeguard consumers from the potential harms of gambling. As the industry evolves, the commitment to social responsibility remains a paramount concern, with regulators keenly observing and ready to act on any breaches that compromise customer safety.
In 2024, New Jersey’s gaming industry soared to unprecedented heights, with its Gross Gaming Revenue (GGR) touching nearly $6.3 billion, showing a robust growth of 9% compared to the previous year. This remarkable growth was primarily propelled by the state’s thriving online gaming sector. Online gambling, encompassing virtual slots and table games, alone fetched $2.38 billion—a significant 24% jump from the previous year, adding an impressive $463.4 million to the revenue pool.
Sports Betting Surges Forward
The sports betting arena also witnessed substantial gains, with the revenue breaching the billion-dollar mark for the second year in a row. By the close of 2024, sports wagering had amassed $1.094 billion, up by 8.7% from 2023’s figures. However, the sportsbooks faced a tough December, experiencing a 43% plunge in revenue, despite strong performances in football betting, particularly with bets placed on the Philadelphia Eagles.
Traditional Casinos Face Challenges
Contrary to the digital success, Atlantic City’s land-based casinos encountered slight setbacks. The nine casinos in the city collectively generated $2.81 billion from physical gaming—a slight decline of 1.1% from the previous year. Despite this, New Jersey’s Casino Control Commission Chairman, James Plousis, pointed out the silver lining—2024’s casino win was the second-best since 2013, contributing $602.6 million in state taxes, benefiting seniors and disabled residents.
Individual Casino Performances Vary
Among the casinos, Borgata led with a revenue of $738.1 million from in-person games, marking a modest increase. On the other hand, Harrah’s and Bally’s saw significant drops in their revenues. The online segment, however, closed the year on a high note with December 2024 raking in $228 million from online gaming alone—a 26.5% increase from December 2023.
The Ongoing Debate: Cannibalization vs. Synergy
The debate continues over whether online casinos are eating into the market share of land-based casinos. Studies by entities like Eilers & Krejcik Gaming and the iDevelopment and Economic Association suggest a synergy between online and retail casinos, proposing that digital gaming could spur better results even for physical casinos.
Looking Ahead: Positive Outlook for Atlantic City
Despite the mixed results in 2024, there is optimism for a rebound. Stakeholders are being urged to collaboratively address the challenges facing Atlantic City to rejuvenate its image and boost tourism and gaming revenues. The potential for growth remains significant, especially with the continued rise of innovative gaming products and the steady performance of online gaming that complements the traditional casino experience.
In conclusion, while Atlantic City faces its set of challenges, the overall health of New Jersey’s gaming industry looks promising, especially with the digital sector driving substantial growth. The future holds potential for sustained growth in online gambling and a revival of Atlantic City’s storied gaming halls.
MGM China is on track to deliver significant financial results for the final quarter of 2024, with analysts predicting an adjusted EBITDA of approximately HK$2 billion (US$250 million). This reflects a 5% quarter-on-quarter increase, showcasing the company’s strong post-pandemic recovery trajectory. Investment bank Jefferies estimates MGM China’s gross gaming revenue (GGR) will rise by 7% to HK$8.5 billion (US$1.1 billion), outpacing the broader Macau gaming industry, which is forecasted to grow by only 3% in the same period. This growth positions MGM China as a leader in the market, with its share expected to climb to 15.8%, up from 14.8% in Q3.
VIP Segment Fuels Success
A key driver of MGM China’s success lies in its strong VIP segment performance. Analysts Anne Ling and Jingjue Pei from Jefferies highlight that MGM’s strategic focus on attracting high-value customers has bolstered its market share. Despite this, rising operating expenses, including the launch of the Poly MGM Museum and the Macau 2049 residency show, are expected to temper EBITDA margin growth, which is projected to hold steady at 27%.
Nevertheless, the company’s investment in enhancing its Macau properties is seen as essential for sustaining its competitive edge. Combined property EBITDA for MGM Macau and MGM Cotai is forecasted to reach HK$2.1 billion (US$269.6 million), marking a 5% increase from the previous quarter.
Diversification Beyond Gaming
MGM China is prioritizing non-gaming attractions to diversify its revenue streams and appeal to a broader audience. The Poly MGM Museum, which opened in November 2024, and the Macau 2049 show, launched in December 2024, are central to this strategy. These initiatives aim to elevate MGM Cotai’s entertainment offerings and drive foot traffic from non-gaming visitors.
Kenneth Feng, MGM China’s president, has credited the company’s understanding of premium mass gamblers for its record-breaking revenue in 2023. This insight continues to guide the company’s long-term strategy of balancing gaming and non-gaming investments.
Challenges Ahead in 2025
While 2024 has been a year of strong recovery, MGM China faces a more competitive landscape in 2025. Rivals in the Macau gaming industry are expected to ramp up premium offerings and smart table technology, intensifying market competition. Despite this, Jefferies analysts believe MGM China’s focus on premium mass customers and property upgrades will help it maintain its market position.
The broader Macau gaming market is projected to see slower growth in Q4 2024, with only a 3% rise in GGR quarter-on-quarter. Still, MGM China’s robust VIP segment and non-gaming investments are anticipated to ensure its growth surpasses the industry average.
A Positive Outlook for MGM China
In summary, MGM China is expected to close 2024 on a high note, leveraging its VIP segment strength, market-leading strategies, and diversification efforts. As competition heats up in 2025, the company’s continued focus on premium mass customers and innovative non-gaming attractions will be critical to its sustained success.
