A recent report by Belgium-based gambling operator, Gaming1, casts a spotlight on the potential pitfalls of excessive regulatory measures within the gambling industry. This critique comes in the wake of Belgium’s stringent new gambling advertising ban that took effect on July 1, 2023. Despite the opposition from a consortium of sports teams and gaming operators, the near-total prohibition was enacted, disregarding the advice of the country’s own Gambling Commission.
Channelization Impacted by Advertising Ban
The core of Gaming1’s concern lies in the effect of such restrictive policies on channelization—the process of directing players toward legal gambling operations. According to Gaming1’s analysis, backed by surveys from Nepa, there has been a discernible shift towards illegal online gambling platforms following the implementation of the royal decree. Specifically, a 6% increase in players and a 4% uptick in deposits on illegal sites were observed, signaling a move away from licensed operators.
The Rise of Illegal Gambling Sites
Compounding the problem, Gaming1 highlights findings from the Belgian Gaming Commission and Yield Sec that illustrate the burgeoning presence of illegal gambling sites. The Commission has blacklisted as many as 500 sites, while Yield Sec reports a 4.4-fold increase in illegal operators in 2023 alone. These developments underline the growing challenge of curbing unauthorized gambling activities in Belgium.
The Attraction of Illegal Markets
The allure of the black market, as identified by Gaming1, includes larger winnings, easier access, and the lack of age verification, posing significant risks to players, including potential legal consequences and a lack of protective measures against gambling harm. This concern is underscored by an IPSOS survey finding that four of the ten most recognized gambling websites in Belgium operate illegally.
The Debate on Regulation
Gaming1’s report criticizes the current regulatory framework for being overly restrictive and, in some cases, counterproductive. Since 2020, Belgium has seen the introduction of several restrictive measures, including bonus bans, a €200 weekly deposit limit, and an increased age requirement for sports betting. Gaming1 argues that these measures, rather than addressing the root issues of problem gambling, stigmatize the industry and could inadvertently fuel the growth of the illegal market.
The Need for a Balanced Approach
Advocating for a more nuanced regulatory strategy, Gaming1 suggests the adoption of measures like self-restriction solutions, risk-based personalized messaging, and self-assessment tests. These, according to the operator, could offer a more effective means of promoting responsible gambling without stifling the industry. The report emphasizes the importance of dialogue between industry stakeholders and regulators to achieve a regulatory balance that protects consumers while ensuring the competitiveness of the legal gambling market.
Conclusion
Gaming1’s analysis presents a critical view of the current regulatory landscape in Belgium, warning against the unintended consequences of over-regulation. By highlighting the shift towards illegal gambling platforms and calling for a more reasoned approach to regulation, the report seeks to prompt a reconsideration of how best to achieve a safe and thriving gambling industry that benefits all stakeholders.
