Gambling regulators in the United States, Australia, United Kingdom, Sweden and the Netherlands had a busy year in 2022 – issuing sanctions to numerous online and land-based casino & gambling operators – which included record financial penalties, warnings & even gambling-license suspension.
Analysis by USA-Casino.com has revealed that global gambling-industry financial penalties were issued to companies on 38 occasions in 2022 – totaling approximately $264,578,390 – a huge increase of 443.9% compared to 2021’s total of $48,642,992.
Brands which suffered regulatory wrath include Betr, Betway, Draftkings, BetMGM, Unibet, LeoVegas, 888, PointsBet & more.
Key failings by gambling companies identified by regulators in 2022 included:
- Accepting wagers before licensed to do so.
- Contacting & offering promotions to self-excluding gamblers.
- Marketing to young adults.
- Spamming.
- Breaking advertising rules / inducement infractions.
- Anti money-laundering failings.
- Social responsibility failing.
- Accepting Prohibited Wagers.
- Offering bonuses in breach of local gaming laws.
- Failure to prevent Overspending & placing limits on accounts.
- Failing in identifying customers at risk of gambling related harm.
- Not having appropriate Anti-Money Laundering (AML) measures.
Gambling Industry Fines in 2022 increased by 443.919% compared to 2021
The largest gambling industry financial penalties of 2022 went to Star Entertainment Group (fined AU$100,000,000 by Australian regulators for license breaches that included allowing money laundering to take place at its Sydney casino – also losing its license), and Entain – fined US$21 million (£17,000,000) – the largest fine in UKGC history, after the Commission found anti money laundering (AML) irregularities at Entain’s Coral and Ladbrokes online businesses as well as several land-based betting shops.
As of October 2022, the UK’s gambling regulator had charged 16 operators a total of $48m (£45m), with CEO, Andrew Rhodes, stating that “the message is starting to get through”.
50 states in the US are already offering some kind of gambling products like sports betting, casinos and lotteries to consumers. Online casinos are legal and regulated in several US states, with more planning to bring legal online casinos to consumers in their states 2023.
In the US, in a 2021 forecast the BIA predicted total nationwide gambling advertising spend of close to $1.8 billion. With gambling advertising permeating TV, Radio, and the media, gambling companies are “all in” on America. Regulators are tasked with ensuring that games are fair for consumers, as well as ensuring that no money-laundering or other criminal activity takes place at regulated gambling premises or via their associated online apps.
Given the inevitable increase of proliferation of online gambling in 2023, one can expect more regulations, and of course more casino and gambling industry fines” – Richard Schuetz
Former US gambling-regulator Richard Schuetz spoke with USA-Casino.com and said that in the future he expects more fines, and more gambling-regulation in the US in 2023:
“The narrative around gambling in the US has shifted dramatically recently, with critical coverage from the New York Times, Wall St Journal and other major media outlets highlighting the shortcomings of the industry. Regulated gambling brands would be advised to be proactive about addressing any of their own deficiencies before the media and consumers do so, rather than expending their collective lobby efforts on “The Straw Man” which they focus efforts on burning down – offshore, international gambling operators.
Many regulatory agencies are overwhelmed, and under-prepared for the challenges that come with regulating in the gambling space. It is imperative for gambling regulatory agencies to find the right people for the job – people with first-hand experience and understanding of the gambling industry – and whose prime directive is consumer protection, not quick and easy tax-profits.”
With increased scrutiny and likely increases in cases of problem gambling it’s quite likely that the global gambling industry will see a wave of new marketing and licensing regulations in 2023 – geared towards consumer protection and AML.
Dataset
- 2022 Gambling Industry Fines Dataset (CSV) – (c) USA-Casino.com
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Global iGaming Analyst based in New York City. Jenny's work can also be found at GamblingIndustryNews.com & PokerIndustryNews.com.
