SBC CIS Weekly Digest: 31 October — 04 November

Each week, SBC CIS editors look back at the events of the previous week to highlight the most interesting and resonant ones for you.

Ukrainian Gambling Council advocates for the implementation of the State Online Monitoring System, Ukraine’s Minister of the Digital Transformation threatens to liquidate the state gambling regulator, Financial Action Task Force updates their recommendations on anti-money laundering policies, Australian Communications and Media Authority publishes report condemning the affiliate services working in the country, Parimatch signs partnership agreement with eSports Team Secret, Evoplay enters content partnership with Italy’s Sportsbet, and 4H Agency’s CEO interviews Playtech’s Head of Regulatory Affairs.

Read about these news in detail in our digest below.

Ukrainian Gambling Council (UGC) published an article emphasizing the importance of the State Online Monitoring System implementation for national gambling regulators, state bodies and professional gambling community.

The State Online Monitoring System represents a set of  hardware and software solutions that allows the regulator to monitor the economic activities of gambling operators, ensure information security, comply with license conditions, uphold technical standards, etc. 

The introduction of the State Online Monitoring System is another step towards Ukraine’s becoming a civilized global entertainment market and a good reason to once again remind international operators about the advantages of moving into the Ukrainian gambling market.

The Ministry of Digital Transformation of Ukraine will submit an application to the Verkhovna Rada (Ukraine’s legislative body) suggesting to abolish the Commission on the Regulation of Gambling and Lotteries (CRGL). This was stated by Myhajlo Fedorov, the Minister of Digital Transformation, in an interview with Forbes.

According to the minister, the analysis of the gambling industry has shown that it can comfortably live without CRGL. Moreover, Fedorov believes that the ministry is capable of setting up automated procedures to issue gambling licenses and collect taxes.

In his interview, Fedorov noted that the task of the Ministry of Digital Transformation is to completely eradicate corruption in the gambling sector, make the sector transparent and attract world-class companies to Ukraine.

Financial Action Task Force (FATF) has updated its recommendations on how EU Member States should conduct risk assessments against money laundering (AML) and threats connected to the finaincing of terrorism.

The new industry guidance is set out in the European Commission Supranational Risk Assessment Report, which was last updated in 2019. In accordance with the EU Anti-Money Laundering Directive (AMLD), the SNRA report must be updated every two years. However, due to the COVID-19 pandemic, the report was delayed until 2022.

The report cites online gambling along with crypto assets as two sectors in need of a risk recalculation. The FATF is also aware of the ongoing conflict affecting European business as member states rebuild amid Russia’s intensifying war of aggression against Ukraine.

Gambling industry is noted as a sector with a particular deficit in reporting suspicious transactions. The European FIU is recommended to improve the quality of industry reporting and the use of the information provided.

Australian Communications and Media Authority (ACMA)  has published a report on interactive gambling for the July—September period of 2022. The focus is on affiliate services that promote and direct traffic to illegal online casinos. These sites often act as independent reviewers of gambling services. They provide direct links to illegal gambling services and regularly receive commissions for clicks.

ACMA researched 20 affiliated services. These services have been found to violate the Interactive Gambling Act (IGA) prohibition against advertising illegal gambling services and facilitate the provision of illegal gambling services.

In Australia, it is a crime to offer or advertise such services to clients. A total of 96 sites were blocked. 

Parimatch, a global eSports betting brand, has entered into a major new partnership with The International 11 runner-up Team Secret. This is Parimatch’s second major partnership in the eSports ecosystem in recent months, having previously signed a partnership with 00Nation in early October.

The one-year agreement makes Parimatch the official betting partner of Team Secret. The bookmaker’s logo will appear on the team’s t-shirts and sweatshirts. The Parimatch branding will be visible both in-game during Team Secret games and through their official social media channels.

Evoplay, a Ukraine-based game development studio, has entered into a partnership with the Italian betting operator Sportsbet to gain certification for the booming Italian market.

With this partnership, Evoplay is bringing its portfolio of 65 exciting games certified in Italy to the Sportbet online platform.

The integration of the famous Evoplay product series will significantly increase Sportbet’s product offering, drive new traffic to the site and increase player engagement.

Charmaine Hogan, Head of Regulatory Affairs at Playtech, in a recent interview with Ilya Machavariani, Senior Partner/CEO at 4H Agency, spoke about regulated markets, sustainable and responsible gambling, consumer protection, and new technologies in the industry. 

Mrs. Hogan has been working in the gambling industry for several years. Before moving to the UK in 2016, she resided in Brussels where she worked on EU legislation and policy development, and led discussions with European gambling regulatory authorities on national regulations and EU policy development such as consumer protection, as well as with industry. A super insightful interview that would be a shame to miss for anyone interested in regulatory affairs in the gambling industry.

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