Last week, the IBIA and H2 released a new report that evaluates and ranks 20 regulatory markets in terms of legal compliance. The top six markets included Great Britain, Malta, the US, and Europe. The next set of rankings, from seventh to joint-twelfth, highlighted markets with strong overall scores but limited by strict restrictions in certain areas such as Spain or Italy. The report also provides insights into the global betting market and reveals the annual cost of match-fixing. In this article, we will focus on the rankings of four specific countries: Kenya, Mexico, Australia, Portugal, Argentina, Canada, and India.
#14 Kenya (provisional)- 71 Points: Kenya is the only African market on the list and received a provisional score due to anticipated major regulatory changes. The country currently offers unlimited licenses, but plans are underway to implement a new Gaming Bill that would introduce stricter regulations, including higher license fees and a ban on credit card gambling. However, the initial ban on mobile payments, which is a popular payment method in Kenya, was removed through amendments to the bill. Taxation is a contentious issue in Kenya, with the imposition of a 20% excise tax on betting turnover leading to the departure of operators Sportpesa and Betin from the market in 2019. Currently, operators are subject to a 15% tax on GGR, which is considered globally competitive. However, there are concerns that the excise tax may be reintroduced in the upcoming finance bill.
#15 Mexico – 70 points: Mexico has unlimited licenses available and boasts a high channelization rate of 90%. However, the legislation governing gambling is considered dated, and a new federal framework proposed in 2014 has yet to be implemented. Mexico employs a GGR betting tax, which can be challenging for operators due to the additional license charge based on turnover. The tax rate stands at 30% of GGR, and individual states can impose their own taxes. Product availability is broad in Mexico, but integrity measures are lacking, as operators are not required to connect to any monitoring platforms. Advertising regulations are relatively lenient in Mexico, with certain conditions to be met and warning messages about excessive gambling.
#16 Australia – 69 points: Australia’s regulatory landscape varies between states, with the Northern Territory serving as the main licensee for online betting. Retail betting, on the other hand, is dominated by Tabcorp, resulting in an effective monopoly. The country receives a low score primarily due to additional product fees set at 2.5% of turnover, which hampers the interest of private operators. Live betting can only be conducted over the telephone or at retail locations, and operators must obtain approval to offer bets on Australian sports by paying fees. Australia scores well in terms of integrity, being a signatory to the Macolin Convention on sports manipulation and having Sports Integrity Australia as a dedicated national body. Advertising restrictions in Australia are not overly stringent, although certain limitations exist for live sport and specific sports competitions banning gambling sponsorship.
#17 Portugal – 68 points: Portugal, like Australia, has a land-based betting monopoly, but unlimited online licenses are available. However, only 10 online fixed-odds betting licenses have been issued. The country imposes an 8% tax on fixed-odds sports and racing bets, as well as a 35% tax on exchange betting commission. Previously, the fixed-odds betting tax was even higher at 8-16% of turnover. The high turnover tax system has led to Portuguese citizens seeking more fiscally competitive offshore online operators, resulting in low channelization. Portugal excels in integrity, having signed and ratified the Macolin sports manipulation convention. Advertising regulations exist both at the national and provincial level, prohibiting any suggestion that gambling leads to financial gain and restricting advertising near schools.
#18 Argentina (provisional) – 61 points: Argentina receives a provisional score as its regulatory regime is set to undergo significant changes. Approvals have been granted by several provinces to permit online gambling, and the city and province of Buenos Aires have already issued licenses. The fragmented market, limited license availability, and lack of integrity measures pose challenges, but there is growing interest from local and international operators. Taxes vary between provinces, with Buenos Aires taxing gambling at 25% of GGR and the city setting a 10% rate. Additionally, there is a federal 5% turnover tax rate that can rise to 10% for operators based in tax havens. Product availability varies, and the province of Buenos Aires must individually approve every betting event. Argentina receives a low integrity score due to a lack of connection to national monitoring platforms. Advertising regulations permit ads within defined parameters.
#19 Canada – 47 points: Canada also receives a provisional score as legislation regarding single-event sports wagering is currently under consideration. Sports betting is conducted under provincial monopolies, and plans are underway in Ontario to introduce a licensing process. The country’s monopoly system and the ban on single-event betting contribute to low channelization. Canada lacks match-fixing laws and has not signed the international convention against sports manipulation. Advertising of online gambling is prohibited, resulting in a low advertising score.
#20 India – 9 points: India has the lowest score among all countries assessed in the report due to widespread prohibition of betting, limited product availability, and lack of player protection and market oversight. Betting is only active in six states in India, mainly limited to racing. The federal government permits states to regulate betting, but there has been no progress in passing legislation. Match-fixing concerns persist, and the unregulated market continues to thrive. Most forms of gambling are prohibited in India, resulting in strict advertising regulations.
