2022 Global Casino Industry Fines Reached $128M – Up 166%
Gambling regulators in the United States, Australia, United Kingdom, Sweden and the Netherlands had a busy year in 2022 – issuing financial sanctions to numerous online and land-based casino & gambling operators – which included record penalties, warnings & even gambling license suspension. Casino Industry
Analysis by USA-Casino.com has revealed that global gambling-industry financial penalties were issued to companies on 36 occasions in 2022 – totaling approximately $128,913,840 – a huge increase of 166% compared to 2021’s total of $48,642,992.
Brands that suffered regulatory wrath include Betr, Betway, Draftkings, BetMGM, Unibet, LeoVegas, 888, PointsBet & more.
Key failings by gambling companies identified by regulators in 2022 included: Casino Industry
- Accepting wagers before being 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.
- 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.
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”.
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.
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:
“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 toward consumer protection.
