Gaming1's latest report warns against the negative impact of stringent regulations in Belgium, linking them to increased illegal gambling activities.
In July 2023, Belgium's gambling industry faced a seismic shift with the introduction of a near-total advertising ban, sparking debate and concern among operators like Gaming1. Gaming1's report sheds light on the counterproductive outcomes of overregulation, including a boost in illegal gaming activities.
Belgium’s recent gambling regulations, particularly the near-total ban on advertising introduced on 1 July 2023, have stirred considerable controversy. Gaming1's analysis comes in the wake of a significant legal challenge by a consortium of sports teams and operators against the royal decree, a challenge that ultimately fell short. Bago, the Belgian gambling trade body, has criticized the government for ignoring the Gambling Commission's advice in imposing the ban.
Gaming1's concerns center around the royal decree's adverse effects on channeling players towards legal operators. Citing studies by Nepa and alarming findings from the Belgian Gaming Commission and Yield Sec, the report notes a notable shift towards illegal gambling websites post-decree, highlighting a 4.4-fold increase in illegal operators in 2023.
With a major sports season on the horizon, Gaming1 emphasizes the critical need to deter illegal gambling. However, the black market's appeal, characterized by higher winnings, accessibility, and lax age restrictions, presents significant challenges. Notably, illegal gambling places players at risk without the safeguards of responsible gaming measures, an issue underscored by IPSOS and BGC surveys revealing the prominence of illegal sites among Belgium's top gaming websites.
Gaming1 scrutinizes the broader regulatory landscape in Belgium, lamenting the shift towards what it perceives as overly restrictive measures. Actions taken since 2020, including the ban on bonuses and weekly deposit limits, coupled with the advertising ban and raised age limits for sports betting, are seen as counterproductive. Gaming1 criticizes the reliance on stigmatization over a science-based regulatory approach, cautioning against the impact on Belgium's significant gambling sector and its economic contribution.
Advocating for a shift in strategy, Gaming1 urges a move away from stigmatization towards a nuanced regulatory framework. The operator suggests embracing self-restriction solutions, self-assessment tests, and targeted messaging based on risk level as practical tools against the black market. Furthermore, Gaming1 calls for a balanced approach to regulation that fosters a competitive sector through enhanced dialogue among stakeholders, including lawmakers and regulators, to reconcile player protection with industry viability.
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