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Compliance Updates

Videoslots disputes €10m fine and accuses Dutch regulator of acting unlawfully

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Videoslots disputes €10m fine and accuses Dutch regulator of acting unlawfully
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Casino believes KSA’s largest ever sanction is absurd

Videoslots is to challenge the largest fine in the history of the Kansspelautoriteit (KSA) after accusing the Dutch regulator of abusing the mystery shopping regime.

In preparation for a KSa application in April 2022 the regulator’s logo was mistakenly visible for a short period of time on Videoslots’ website before being quickly removed.

When the KSA became aware of the mistake, it tried to sign up as a Dutch customer and failed because of the effective measures in place. The KSA then gained unauthorised access by pretending to be a German customer, managing to make a deposit and a single bet of 20 cents.

As soon as Videoslots learned that a KSA official had unlawfully accessed its site it implemented further measures to prevent this happening again.

The KSA has now issued a fine of €9,874,000, which will be the largest sanction in its history, after claiming Videoslots violated the Dutch Gaming Act. Videoslots denies the allegation and has objected to the fine.

Ulle Skottling, Deputy CEO at Videoslots, said: “Videoslots does not target but restrict the Netherlands, so the Dutch Gaming Act does not apply to its services. No Dutch players were able to access our site during the disputed period and there was no violation as a result.

“It is absurd that the KSA should fine us after gaining unauthorised access. It is simply not possible to protect fully against unauthorised access, and the KSA has no guidelines on what measures are sufficient.

“Furthermore, there was no demonstrable damage, and the interests of Dutch consumers were never compromised at any point. The KSA calculated the fine based on several guesstimates. There is no basis for it and all sense of proportionality is missing.

“Videoslots takes its legal and regulatory obligations extremely seriously, but we dispute the KSA’s actions and conclusions, which we believe are unlawful. We are confident of a positive outcome in this case.”

Compliance Updates

New Gambling Minister “welcome with so many changes afoot”

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New Gambling Minister "welcome with so many changes afoot"
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The gambling industry has welcomed a new Gambling Minister, Baroness Fiona Twycross, whose sole responsibility will be oversight of the gambling sector. She joins Stephanie Peacock and Chris Bryant, who will oversee other parts of the ministry.

Andrew Lee, Chief Operating Officer at marketing affiliate QiH Group, said that the move shows the Labour government is taking its responsibility to both the sector and to consumers seriously.

“While it was widely assumed that Stephanie Peacock, as part of her remit as DCMS Under Secretary, would be appointed Gambling Minister, it shows a true commitment to the sector that Lisa Nandy has chosen to appoint a minister solely responsible for the gambling sector.

“Particularly as we’re reaching a crucial part of the implementation of the Gambling White Paper at the end of August, it would be a shame to see whomever is in charge be unable to dedicate a good amount of time to the changes afoot in the industry.

“QiH Group wishes Baroness Twycross all the luck in her new role, and we look forward to seeing the good work the department does to keep the industry safe and compliant.”

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Compliance Updates

The GCGRA Awards License for UAE Lottery

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The General Commercial Gaming Regulatory Authority (GCGRA), the federal entity overseeing commercial gaming activities in the United Arab Emirates, announced the award of a license to operate the UAE’s first authorised lottery operation. The announcement marks a new milestone in the GCGRA’s endeavour to establish a well-regulated commercial gaming sector in the UAE, built on the principles of transparency, accountability, consumer protection and responsible gaming practices.

The lottery license was awarded to The Game LLC, a commercial gaming operator specialising in game development, lottery operations and gaming-related content. Operating under the banner of the “UAE Lottery”, the GCGRA’s first licensee will offer a diverse range of lottery games and other games designed to cater to players’ variety of interests and financial preferences.

Jim Murren, the Chairman of the GCGRA, said: “The launch of the UAE Lottery is a pivotal event that not only marks the establishment of a disciplined world-class regulatory framework for lottery activities but also underscores our commitment to nurturing a secure and enriched commercial gaming environment in the UAE.”

Kevin Mullally, CEO of the GCGRA, said: “The GCGRA is steadfast in its commitment to global best practices in consumer protection and regulatory oversight. Our regulatory framework is designed to ensure the integrity, fairness, and transparency of commercial gaming activities in the UAE, which include lottery games. It also provides consumers with a comprehensive set of tools to monitor and manage their gaming activity. Additionally, we are leveraging new technologies to foster the creation of safe, entertaining games and drive consumer-focused innovation.”

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PAGCOR SLAMS DISINFORMATION ON POGO CLOSURE ORDER

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The Philippine Amusement and Gaming Corporation (PAGCOR) today flagged a disinformation campaign through a memorandum purportedly ordering local government units to immediately terminate the operations of Philippine Offshore Gaming Operators or POGOs by August, saying that the memo was fake.

Atty. Jessa Mariz Fernandez, head of PAGCOR’s Offshore Gaming Licensing Department, said the supposed memo to LGUs in Metro Manila dated July 26 was a forged version of an earlier memorandum she issued last July 23, a day after the President’s State of the Nation Address.

“We have not issued a memorandum ordering LGUs to immediately close down POGO operations in their jurisdiction because the President’s order is very clear: We have until the end of the year to wind down POGO operations, and we will follow that,” Atty. Fernandez said.

The fake memo was telling select LGUs in Metro Manila to terminate POGO operations “within the first week of August”.

“This is a clear disinformation intended to create chaos and confusion,” she said. “Whoever is behind this clearly has ulterior motives, and we shall ask the National Bureau of Investigation to investigate and unmask them to determine their motives.”

She said the spurious memo used her earlier letter to Internet Gaming Licensees and service providers last July 23 advising them that, “pending finalization of the details and process of winding down, operations may remain in the status quo”, referring to the President’s order to close down POGOs during his State of the Nation Address last July 22.

“We reiterate, and we advise our LGUs, that licensed IGLs can continue operating until we have determined the process of winding down their operations, which we currently have not yet finalized,” Atty. Fernandez said.

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