While worldwide lawmakers want to plug countries’ holes with revenues from online sports betting, they should look beyond the bottom line.
Currently, New York is the latest and largest look at online sports betting since the U.S Supreme Court in 2018 allowed states to decriminalize sports gambling.
The recent pandemic impact on states’ budgets, casino incomes, and the mental health of those facing lockdowns mid pandemic make this a ripe moment for cities like New York and other states to fund and address treatments for problem gamblers.
At this point, New York mirrors other states regarding the organizations that want government officials accountable for expanding gambling opportunities, like online sports betting, to acknowledge the downside of not enacting stable gambling policies. For many, more opportunities to gamble without in-place safeguards means the problem gambling will place them in greater jeopardy. As such, the rise in helpline contacts emphasizes the need for new sports betting laws to include provisions to deal with addictions and problem gambling. Since there was no national financing for gambling addiction services, states must now invest profits from sports betting and other gambling activities to address the rising concern of hard hitters in need of treatment and services.
Not the only U.S but states like Spain, with currently the highest rate of teenage gamblers, must embrace the challenge to fund gambling treatment services and put in place tools to prevent gambling problems.
The stakes are high for Spain’s gambling industry
The Spanish online gambling world has developed considerably over the past few years, but recently there have been demands to accelerate regulation in an effort to prevent the development of problem gambling.
Barley no market has been untouched by the rise of digital technology – gambling is no exception. It only takes you a few seconds to sign up to the betting website, sync your bank account and start gambling. In states where online slots are legal, the popularity has grown considerably in recent years, with the market’s value projected to reach $94.4bn by 2024. According to a recent report, gambling has become an agreeable occupation, approximately 26% of the global population now gambles.
As of recent markets, the online gambling segment has proven more popular than others. In Spain, for instance, the gambling sector has grown 270% since 2014, even as the state’s financial growth has decelerated. The recent hit of the online gambling industry is, without doubt, good news for betting companies, but it brings some tough questions for regulators.
A Lucky Hand
The recent success of online gambling in Spain associates with wider trends. The abundance of smartphones and other mobile gaming gadgets means people are more comfortable with the idea of gambling remotely. On the other hand, sports – which make up a considerable proportion of the gambling sector – are also more quickly consumed on mobile devices. According to the survey, 65% of respondents watched sports content on their smartphones most often. That, plus the luxury of a few clicks to reach a betting platform – not to mention a pop-up ad will take you straight there.
Just as vital as the rise of mobile gambling in Spain is that a few years back, the officials realize that fees on online gambling were too high. They consider that lowering those fees in Spain has had a remarkably positive impact on growth in the industry. There is also a fine line that the authorities must walk with the gambling industry where if it’s overtaxed, it has a lower impact on the country’s revenues when compared with a moderately taxed environment.
Financially speaking, many would say that Spain is the perfect zone at the moment.
Safe If Only Playing By the Rules
The upsurge in the online gambling industry-led Spain to urgent calls to regulate the sector. A few months back, those calls came close to being answered after two of the political parties agreed that “urgent measures” were needed to digital organizations and governed retail. These amendments are likely to focus on advertising restrictions and managing the social effects of gambling addictions.
A major area of concern in Spain seems to be that as the popularity of digital gaming increases, gambling protection issues come to the fore. Basically, the percentage of those experiencing harm remains unchanged, but as online casino slots become more popular, the actual number (of those) affected grows.
How the industry tackles responsible gaming and harm minimization is the single biggest issue across the industry at present. Similar to the U.S, Spain does not ignore it, and the problem has now landed on the desk of the lawmakers and the regulator.
As a reaction to Spain’s proposed new regulations, the EGBA (European Gaming and Betting Association) now attempts to expand consumer protection in the industry but warns against adopting heavy-handed measures that could ultimately push slots hard-hitters towards unregulated operators.
However, nobody in this industry wants problem consumers, so they would probably focus on preventing problem gamblers. Nobody wants problems with underage players either, so the lawmakers believe there is very good technology around both those areas where they can prevent, with 99.9% chances, these individuals from taking part in the industry.
Risky But Necessary
Spain’s government faces a difficult decision over whether to twist or stick. The gambling industry is thriving, exhibiting record revenue. For a country that experienced considerable economic damage in the aftermath of the global financial crisis, there is an urge not to interfere with a sector that is doing so well. What’s more, ethical concerns are mounting, as is the tension to ramp up regulations.
It will surely be interesting to watch how the government tackles this tricky balancing act. Meanwhile, hard hitters will always bet on online slots, but licensing and regulating the sector, they can do so at an online casino platform where they are properly protected. In doing so, regulators and other public bodies can address problems facing individuals and society at large.
