A study from Belgium has cautioned that overbearing rules could have a detrimental effect on directing.
A study released by Belgian operator Gaming1 emphasized concerns about the influence of excessive regulation on directing.
A Belgian study has cautioned that overbearing rules could have a detrimental effect on directing.
On July 1st, 2023, Belgium enacted a near-complete prohibition on gambling advertising. This followed a last-minute legal challenge by a group of sports teams and gaming operators that failed to overturn the Royal Decree.
The prohibition has been met with strong opposition, with Belgium’s gambling industry association Bago emphasizing that the government disregarded the advice of the country’s gambling commission in implementing the prohibition.
Gaming1’s study has now outlined the influence of the Royal Decree on directing for legal operators in Belgium.
Gaming1 pointed to a 2023 survey conducted by Nepa. The study found that in the three months following the enactment of the Royal Decree, there was a 6% rise in online players using illicit websites and a 4% increase in deposits made to illicit gambling sites.
Gaming1 highlighted the findings of two primary studies in its report. The first came from the Belgian Gaming Commission (BGC), which has so far blacklisted 500 illicit websites. The second report, from Yield Sec, showed that the number of illicit operators increased by 4.4 times in 2023, with Yield Sec identifying 2,214 websites.
The perils of the illicit market
With summer athletic events just around the corner, Gaming1 stresses that suppressing illegal wagering is more crucial than ever.
However, this can be a challenging task. Gaming1 points out that larger payouts, simpler access, and the possibility of participating under the legal age of 21 are major enticements of the underground market.
As a consequence, players face the risk of being prosecuted when engaging with illicit operators. Moreover, they lack the safety assurances or responsible gaming systems to safeguard them from potential harm.
Illicit websites are also prevalent. A study by IPSOS and the Belgian Gaming Commission (BGC) discovered that 4 out of the 10 most popular gambling websites in Belgium are unlawful.
Excessive regulation viewed as an issue
Gaming1’s report emphasizes concerns about the impact of over-regulation on legitimate channels. In recent years, Belgium has implemented a series of reforms to the gambling market aimed at protecting players.
However, Gaming1 contends that these reforms are becoming “too strict” and are sometimes counterproductive when it comes to online gambling.
Since 2020, Belgium has prohibited bonuses and free bets while also introducing a weekly deposit limit of €200 (£171.48/$216.54). The age limit for sports betting was subsequently raised to 21 after a royal decree almost entirely prohibited advertising in 2023, a change that will take effect this September.
Gaming1 contends that these modifications fall short of effectively tackling the problem, and that the strategy relies on stigmatization rather than a scientific method.
Gaming1 believes the alterations do not adequately address the issue. The company argues that the regulation appears to be grounded in the stigmatization of the sector rather than a scientific approach. The industry employs roughly 16,000 individuals in Belgium. Information from BGC 2022 also reveals that the industry contributes about €1.17 billion in taxes to the economy annually.
Gaming1 advocates for more measured actions, rather than what it perceives as a stigmatization tactic of the gambling industry, to address the illicit market.
The operator highlights that self-limitation solutions, self-assessment tests, and personalized messages delivered based on risk levels are three potential strategies that should be more effectively implemented.
Gaming1 also emphasizes the need to achieve a “balance” between regulation and fostering a competitive industry. To this end, Gaming1 points out that establishing better communication between interested parties, such as policymakers and regulators, is essential.
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