Australia prominent in global regulatory gambling fines in 2022

Last year was eventful for gambling watchdogs in countries like Australia, the United States, the United Kingdom, the Netherlands and Sweden.

The penalties were dealt to both online and brick-and-mortar casino and gambling operators in the countries. Besides fines, warnings and gambling license suspensions were issued, as in the case of Australian-based Star Entertainment Group.

A recent report revealed in 2022, the financial penalties issued to the gambling industry on a global scale were approximately $128,913,840 in total.

The fines were given to the operators on 36 separate occasions and is significantly higher than the amount recorded in the prior year. Compared to 2021’s $48,642,992, the total fines for 2022 increased by 166%.

Richard Schuetz, the previous US gambling regulator, revealed that he expected the regulators to issue more fines in the future. He also said that as the year progresses, more gambling regulations would likely be implemented in the US.

“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,” Schuetz said.

“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.”

Some companies that received fines after breaching regulations in 2022 include BetMGM, Betway, LeoVegas, Betr, 888, DraftKings, PointsBet and several others.

According to the gaming regulators, the affected operators were penalized for a number of reasons, including accepting prohibited bets and receiving wagers before license issuance. They were also accused of contacting self-excluding gamblers to offer promotions or bonuses and not identifying patrons at risk of gambling-related problems.

The regulators claimed the companies spammed and marketed their products to minors as well as violated advertisement regulations. Anti-money laundering and social responsibility neglect were also mentioned, and the failure to place limits on accounts to curb overspending.

Australia’s biggest casino operator, Star Entertainment Group, significantly contributed to the total fines issued in 2022. The company broke the record for the largest financial penalty in the gambling industry after receiving an AU$100,000,000 fine from the country’s regulators.

The casino’s Sydney subsidiary was found to be heavily involved in several regulatory breaches, including allowing money laundering to occur within its grounds. Besides the fine, Star Entertainment also had its gaming license suspended and an external manager appointed to take control of the company temporarily.

UK-based Entain also received a sizable fine of US$21 million, which is the highest in the United Kingdom Gambling Commission (UKGC)’s history. The penalty was issued after anti-money laundering (AML) irregularities were discovered by the regulator at the company’s Coral and Ladbrokes online businesses in addition to various land-based betting venues.

Around 16 gaming operators were fined $43 million in total by the UKGC by October 2022. The organization’s CEO, Andrew Rhodes, previously revealed that the message the regulator needed to pass on was finally “starting to get through.”

More gambling news

Subscribe

Login

Notify of

new follow-up comments new replies to my comments

Label

{} [+]

Name*

Email*

Website

Label

{} [+]

Name*

Email*

Website

0 Comments

Inline Feedbacks

View all comments