A Belgian gaming firm, Gaming1, has published a study examining the impact of stringent regulations on the authorized gambling sector.
Belgium prohibited all gambling advertisements on July 1st, 2023. Despite efforts from certain athletic organizations and gaming enterprises to prevent it, the prohibition was implemented.
Many individuals are dissatisfied with the ban. The Belgian gambling industry association, Bago, asserts that the government disregarded the recommendations of the nation’s gambling commission when enacting the prohibition.
Gaming1’s study suggests that the ban is driving individuals towards illicit gambling platforms. A 2023 survey conducted by Nepa revealed a 6% increase in the use of illegal websites and a 4% rise in financial contributions to these sites since the ban’s implementation.
Gaming1 also cites two studies in its report. The first, from the Belgian Gambling Commission, has blocked over 500 unauthorized websites. The second, from Yield Sec, indicates a 4.4-fold increase in the number of illegal gambling websites compared to pre-ban levels, with Yield Sec identifying 2,214 websites.
## The Perils of the Unlawful Market
As the pinnacle season for summer sporting events draws near, Gaming1 underscores the significance of clamping down on illicit gambling more than ever before.
However, this can be a daunting task. Gaming1 highlights that larger payouts, simpler access, and the possibility of participating under the legal age of 21 are significant enticements for the underground market.
Consequently, participants face the danger of being pursued by law enforcement when engaging with illicit operators. Furthermore, they lack access to safety assurances or responsible gaming frameworks to shield them from harm.
Unlawful websites are also prevalent. A survey conducted by IPSOS and the Belgian Gaming Commission (BGC) revealed that 4 out of the 10 most prominent gambling websites in Belgium are illegal.
## Excessive Regulation Viewed as a Challenge
Gaming1’s report expresses apprehension regarding the impact of excessive regulation on legitimate channels. In recent years, Belgium has undergone a series of reforms to the gambling market aimed at safeguarding players.
However, Gaming1 believes these reforms are becoming “increasingly rigorous” and occasionally counterproductive when it comes to online gambling.
Since 2020, Belgium has prohibited bonuses and free bets, while also implementing a €200 ($171.48/£216.54) weekly deposit limit. Following a royal decree that nearly completely banned advertising in 2023, the age limit for sports betting was subsequently raised to 21, a change that will take effect this September.
Gaming1 contends that these alterations fall short of adequately addressing the concerns and accuses regulatory bodies of employing a strategy of demonization instead of a scientific method.
Gaming1 asserts that the modifications have not effectively resolved the issue. The company believes the regulation appears to be founded on the stigmatization of the industry rather than on a scientific approach. The sector provides employment for approximately 16,000 individuals in Belgium. According to BGC 2022 data, the industry contributes roughly €1.17 billion in taxes to the economy annually.
Gaming1 advocates for a more nuanced approach to combating the illicit market, rather than what it perceives as a strategy of demonizing the gambling industry.
The operator highlights that self-limitation solutions, self-assessment tests, and the transmission of personalized messages based on risk levels are three potential strategies that should be more effectively implemented.
Gaming1 also underscores the necessity of achieving a “balance” between regulation and the establishment of a competitive sector. To this end, Gaming1 points out that fostering improved communication between stakeholders, such as lawmakers and regulators, is essential.
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