CEOs of Major Gambling Firms Highlight Risks of Stringent European Regulations
CEOs from major gambling operators, including Bet365, Flutter, Entain, Evoke, Kindred, and Betsson, have raised alarms about the impact of stringent regulations on Europe’s gambling industry. In the European Gaming and Betting Association’s (EGBA) 2024 Sustainability Report, these leaders warn that tougher controls are inadvertently driving players towards black market gambling.
The Push for Balanced Regulations
The EGBA report features a collective call from CEOs for a more balanced regulatory approach. Countries such as the Netherlands, Italy, Spain, and Sweden have imposed stricter rules on how licensees can advertise and set betting limits.
These changes, along with modifications in the core gambling products in Great Britain and Germany, have led to a surge in illegal gambling activities, according to the CEOs.
Major Operators Speak Out
The signatories of the report include key figures from the continent’s largest gambling firms: Peter Jackson from Flutter Entertainment, Niels Andén from Kindred Group, Per Widerström of Evoke, Jesper Svensson from Betsson, John Coates of Bet365, and Stella David from Entain Group.
They emphasize their commitment to responsible gambling (RG) practices, highlighting that nearly 40% of their European players use safety tools voluntarily.
The Rise of Offshore Markets
Despite these efforts, the CEOs note that they face increasing competition from offshore markets, where player safety is often neglected.
They argue that strict regulations in various European countries limit the attractiveness and competitiveness of legal operators, pushing players towards illegal websites.
Offshore operators lure players with bonuses and offers that regulated entities cannot match, diverting traffic from the legal market.
Urgent Call for Action
“The time to act is now,” the CEOs state, advocating for competitive, regulated online gambling markets as the only effective solution.
They support enforcement measures against black market sites but stress the need for regulatory frameworks that do not stifle legal operators.
The Situation in France and Germany
The EGBA report aligns with recent findings from France’s l’Association Française des Jeux En Ligne (AFJEL), which revealed that the country’s illegal gambling market surpassed the legal one, with four million illegal players compared to 3.6 million legal bettors in 2023.
In Germany, a University of Leipzig report estimated that only 50.7% of online gambling revenue came from legal operators, with the majority being generated by the black market, resulting in significant tax revenue losses.
Progress in Responsible Gambling
Despite these challenges, the EGBA report highlights positive trends in the legal market’s approach to responsible gambling. In 2023, 65% of European gamblers used safer gambling tools, up from 60% in 2022, with 37% doing so voluntarily.
A total of 21 million bettors used tools to control their gambling, a 14% increase from the previous year. The rise in usage was driven by a 49% increase in safety messages sent to players, with personalized messages leading to improved gambling behaviors for at-risk customers.
