Studies: over -regulation as a danger to licensed gambling

The area of sports betting has not been quiet for years. But while he was able to grow without state steering for years, more and more regulatory interventions are now coming up. In USA, the new State Treaty has now been stopped after many years and regulates the market. New rules are also being considered in the Netherlands, Ireland and Great Britain. Studies from the Belgian European Organization for Gaming Law (EOGL) and the betting provider BTOBET have now shown that excessive regulation has a negative impact on the market for gambling.

Study sees the risk of over -regulation in USA

In its study, the EOGL clearly warns of a sprawling black market. According to this, limited advertising rights, player limits and high taxation are not very beneficial for the market. The data comes from the market research institute H2 Gambling Capital and Regulus Partners. This clearly shows that the possibility of over -regulation is not unlikely on the American market. However, this is not necessary, for example, since 79 percent of the slot players already set fewer than 100 markets per month. 99.5 The player remained below the application limit of 1000 euros. This shows that only a small proportion of the players exceeded the border before regulation. Nevertheless, the development on the American market is classified as positive. It can be assumed that the American market will increase from EUR 13.3 billion to EUR 15.6 billion by 2024.

New law in Great Britain?

In the UK, sports betting has long since become a popular sport. Betting agencies have been out of the ground in recent years. Football bets have even replaced the horse bets in the ranking in the UK. But the call for regulation is getting louder. In particular, the criticism that betting providers invest huge sums in football clubs on the island and at the same time hardly throw money into the pot for game addiction prevention causes political and media criticism.

Although a new version of the Gambling Act is still in the room, Btobet’s study has already criticized the high fines. According to this, an average of 23.7 million $ have been paid for by licensed providers in the past few years. Further restrictions would harm the market.

Black market could benefit

Due to increasing restrictions, Eogl sees migration to the black market as likely. Thus, the game and youth protection would ultimately be neglected. Dubious providers would increase more, but at the same time payments could not be made. The black market would also have a negative signal for the tax authorities, since tax money would not flow to the state, but into the hands of the betting providers. The EOGL also sees it incorrectly that money laundering is reproached to the unregulated market. The study points out that money laundering in other areas is much more pronounced and the market for sports betting is hardly susceptible to this.

Criticism of tax reform

The American Sports Betting Association (DSWV) had already sharply criticized the law to change the racing and lottery law. A deployment tax of 5.3 % is to be collected on online machine games and poker. The DSWV draws a taxation as justified, but it is wrong to tax the individual missions of the players. The DSWV sees a yield tax as much more efficient and also emphasized the risk of migration of customers on the black market.