Latest Gambling News: New Zealand Raises Online Gambling Levy By One Third, Flags Review, and more

Catch up on some of the stories our gambling compliance analysts have covered lately, and stay up-to-date on the latest news.

New Zealand Raises Online Gambling Levy By One Third, Flags Review

The New Zealand government will raise a duty on future online gambling operations from 12 percent to 16 percent, or by one third, in response to community demands for grassroots funding.

Internal affairs minister Brooke van Velden said on Wednesday (October 29) that the 4 percentage-point increase in the Offshore Gambling Duty to 16 percent will be “ringfenced specifically for community returns – creating an entirely new funding stream for New Zealand communities”.

Introduced in late June, the Online Casino Gambling Bill is currently before a parliamentary select committee, which solicited public feedback until mid-August.

The New Zealand parliamentary website shows that thousands of individuals and community groups responded to the committee in writing, pointing to a well-organised campaign among sports groups and other civic organisations.

“The message from communities was loud and clear,” van Velden said in her statement.

“If we’re regulating online gambling, they want to see benefits flow back to local sports clubs, community groups and grassroots organisations.

“I have listened, and now as a government, we are delivering on what matters most to communities across the country.

“Problem gambling prevention and harm minimisation standards are non-negotiable and unchanged. Protecting Kiwis from gambling harm is still my number one objective,” she said.

A common argument in the submissions is the need to protect existing lines of community funding from slot machine revenue, which many organisations and individuals fear would be cannibalised by the start-up online gambling sector.

In a further example of government caution and a concession to this argument, van Velden said Cabinet will hold a “two-year review” after the community funding policy is implemented to “assess the impact of online casino gambling on other forms of gambling and community returns”.

Betclic Parent Company Buys Majority Stake In Tipico

Banijay Group has acquired a majority stake of 65 percent in Tipico Group to become the “fourth largest sports betting and gaming European player”.

The Betclic parent company signed a binding agreement with CVC and Tipico’s founders on Tuesday (October 28) to buy a majority stake in the German operator in cash, with all shareholders of Betclic and Tipico becoming shareholders of the combined company.

From January 1, Betclic CEO Nicolas Béraud will become chairman of the board of Banijay Gaming, while Stéphane Courbit will remain as president of Lov Group Invest. Julien Brun, currently COO of Betclic, will replace Béraud as Betclic CEO. On completion of the deal, Joachim Baca, former CEO of Tipico, will become vice-chairman of the board of Banijay Gaming, while Axel Hefer will remain as CEO of Tipico.

The French operator will be the controlling shareholder of Tipico with 65 percent of the capital at closing, but expected to reach a minimum of 72 percent through call options agreed on the shares held by CVC and Tipico management.  

Betclic will divest its 53.9 percent stake in German online gaming and sports betting operator Bet-at-home.com.

Through the transaction, Banijay Gaming is expected to double in revenue, adjusted EBITDA and free cash-flow. The addition of Tipico Group would bring Banijay Group’s revenue on a pro forma basis to €6.4bn and adjusted EBITDA to €1.4bn in 2024. The deal values Betclic at €4.8bn and Tipico at €4.6bn.

Collectively, through the brands of Betclic, Tipico and Admiral, the merged entity serves almost 6.5m unique active players annually, operates more than 1,250 betting shops in Germany and Austria and boasts 5,300 staff.

The transaction, which is expected to complete in mid-2026, will be fully backed by an unnamed fund’s financing package for a principal amount of €3bn, including the refinancing of Tipico Group’s existing debt.

Tipico CEO Axel Hefer said: “Joining forces with Betclic represents a pivotal milestone in Tipico’s growth journey. It is the deal we have been working towards – from refocusing on Europe after the sale of our US business, to last year’s expansion in Austria, and now building a broader European platform.

“This partnership provides the scale and resources to accelerate product innovation, make bold investments in technology and set new standards for our customers,” Hefer said.

Pennsylvania Supreme Court To Hear Skill Games Case

The Pennsylvania Supreme Court has scheduled oral arguments for November 20 to determine the legality of thousands of so-called skill games state-wide.

It has been 16 months since the state’s high court accepted an appeal by Pennsylvania’s former attorney general Michelle Henry of a decision last year based on a case involving machines that were seized in Dauphin County.

A Commonwealth Court decision last year found the games were based on a player’s ability, not solely chance. The Supreme Court had declined an appeal of a separate ruling that found the machines are not illegal gambling.

Pace-O-Matic (POM), a Georgia-based skill games manufacturer, which has distributed machines throughout the state, has argued that its machines are legal and predominantly games of skill.

Estimates of the number of machines vary widely from 70,000 to 100,000 in Pennsylvania. Skill games are not regulated or taxed in the state, which has angered the regulated gaming industry.

POM has supported efforts to regulate its machines, as long as the tax rate levied on its terminals is reasonable. Several lawmakers have suggested a tax rate of 16 percent, while Governor Josh Shapiro has suggested a 52 percent rate, two percent less than the rate paid by casinos on their slot machines.

Gaming companies that operate in Pennsylvania have supported a ban on skill games, but believe if lawmakers regulate and tax the machines, POM and other manufacturers should be taxed 54 percent on gross revenue from slot machines.

BGC Warns Tax Hike Could Wipe £3.1bn Off UK Economy

Proposals backing a tax hike on Britain’s gambling sector could lead to a £3.1bn hit to the economy, as highlighted in independent analysis from accountancy and consultancy firm EY.

The study, commissioned by trade body the Betting and Gaming Council (BGC), found that plans put forward by think tanks Institute for Public Policy Research (IPPR) and Social Market Foundation (SMF) to increase gambling taxes would risk over 40,000 jobs, channel £8.4bn in stakes to the black market and lead to a £3bn blow to the UK economy, raising only a fraction of the amount of money claimed by the think tanks.

The BGC believes the tax hike could have a detrimental impact on workers, the Treasury and gambling’s retail sector in Great Britain.

BGC CEO Grainne Hurst said: “It is now clear these further tax rises are a direct threat to British jobs and economic growth. The figures speak for themselves – tens of thousands of jobs lost, billions diverted to the black market and a possible £3bn hit to the economy.

“Tax raids like those proposed would mean fewer betting shops, casinos and bingo halls, fewer jobs and a huge boost to the growing, unsafe black market, while not raising anywhere near the tax claimed.”

The recommendations from the SMF and IPPR are to increase, or in some cases, double taxes on betting and gaming. Both think tanks have previously proposed to hike remote gaming duty from 21 percent to 50 percent.

Canada Sports-Betting Advertising Bill Passes Senate

The Canadian Senate has again approved without opposition an attempt to establish national regulatory guidelines for online sports-betting advertising.

Senator Mary Deacon’s S-211has been sent to the House of Commons after the Senate approved the measure last week. A similar effort under a different bill, S-269, introduced last year by Deacon was sidelined by the resignation of Prime Minister Justin Trudeau.

Deacon’s bill would create the National Framework on Sports Betting Advertising that would focus on identifying ways to regulate sports-betting ads in Canada, with a proposal to restrict their use, number, scope, or location.

The measure would also require the federal government to identify measures to promote research and intergovernmental information sharing and form national standards for the prevention and diagnosis of harmful gambling and addiction.

Canada fully legalized sports betting in 2021 via a federal bill that gave Canadian provinces the ability to develop their own markets for single-event sports wagering. Ontario's sports betting and online gaming opened to commercial operators in 2022, while other provinces operate sports wagering via their provincial lottery corporations.

The Canadian Senate passed S-269 in November, but it was never introduced in the House of Commons. As of Friday (October 24), the fate of Deacon’s S-211 in the House of Commons was still unclear.

The Canadian Gaming Association has long opposed Deacon’s proposed advertising restrictions, arguing that the bills aim to do what is currently in place via standards imposed by provincial regulators.

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