As the global Forex market continues to grow, the implications of betting legislation need to be taken into consideration. From the way Forex traders are taxed to gaming regulations, this article will explore the various regulatory implications, of betting in the Forex market.
Review of the Impact of Betting Legislation on Sports Betting
As the prevalence of sports betting has grown, countries from around the world have implemented various forms of legislation to protect vulnerable individuals, control the amount of money bet, and regulate the industry. This review looks at two Parliamentary Inquiries that considered the scope of existing betting regulation in the United Kingdom and Australia, and how it should be modified in the future. In particular, the topics of cash-out options, integrity fees, and brand exposure to the public are examined.
Application of Regulation in the UK and Australia
The UK Gambling Commission (UKGC) and the Australian State of Victoria Gambling and Betting Commission (MGCB) provide application forms for online sports betting and internet gaming. They define restrictions and requirements for operators in areas such as age limits, responsible marketing, game safety and protecting player funds. The investigation of these Inquiries focused in particular on fixed-odds betting products, such as electronic gaming machines (EGMs), and the external factors that influence consumers.
Impact of Advertising and Branding
The Inquiries found that exposure to company advertising, websites and in-game commentary lead to a greater likelihood of betting. This may be enhanced when brands are associated with sports teams and events, influencing betting behaviour. It was observed that cash-out options, which make gambling more continuous, are likely to increase financial expenditure and increase the risk of players making irrational decisions.
Stricter Regulation and the “Black Market”
The reviews also sought to address the impacts of stricter regulation on the “black market” for gambling, or those who engage in gambling that operates illegally outside the scope of regulatory frameworks. However, it was observed that without clear regulation, it can be difficult to distinguish between legal and illegal services, and this can have a detrimental effect on responsible gambling.
Integrity Fees and Legislation
In many countries, sports leagues have requested legislation to pass ‘integrity fees’, or taxes on the amount bet on their games. This was supported by the Inquiries as a way to incentivize the leagues to put in place measures that protect integrity, such as player education and improved regulation. A final, important factor that was discussed is the role of sports betting operators in promoting safe and responsible gambling via website messages and customer support.
The evidence from the Inquiries demonstrates the need for a comprehensive and up-to-date framework for legislation surrounding sports and online betting. In particular, consideration needs to be given to the taxation levels, protection of vulnerable persons, and the provision of customer support and education. It is also important to ensure that the enforcement of such laws monitor and clampdown on illegal activities, such as the ‘black market’ for gambling.