Belgium (Brussels Morning Newspaper), The Kazakh parliament is currently considering a shake-up of gambling industry regulation.
The move is particularly timely as it also comes with efforts in the European Union and its EU Member States to introduce more robust anti-money laundering guidelines for Europe’s online gambling sector.
One aim of the European Gaming and Betting Association (EGBA), the EU-wide body representing Europe’s leading online gaming and betting companies, is to help foster higher industry standards.
Separately, the proposed Kazak law plans for establishing a third-party regulatory agency referred to as the ‘Betting Accounting Centre,’ (BAC). Oddly, the duties of BAC are seemingly the same as the Financial Monitoring Agency, the current regulator of the gambling industry in Kazakhstan. Replicating the government’s responsibilities, BAC will share the power as to which market participants have a right to operate in Kazakhstan.
Surprisingly, despite BAC being granted such great responsibility, the law currently refrains from explaining how it will be regulated and monitored. This suggests that whoever wins the tender will be given free rein and somewhat of a ‘roof’ from the authorities.
If history serves as a preview, such practices could make BAC vulnerable to potential corruption. If it is argued that if the Kazakhstan President, Kassym-Jomart Tokayev, genuinely wants to see a change in Kazakhstan that breaks away from the legacy of his predecessor, he needs to consider the repercussions and the scale of the potential damage that such agencies like BAC could have on the Kazakh gambling industry. Can we really say that this will have a positive impact?
The general reaction from other Kazakh companies in the gambling sector appears to be one of fear and worry. The fear is that the BAC could choke off market competition centralize the gambling industry and extract income from the profits of the other betting agencies and casinos.
According to speculation in Kazakh news outlets, in April, Kazakh media began to circulate rumors, albeit unsubstantiated, that Timur Turlov, a prominent Kazakh businessman, was behind the revival of the draft legislation.
However, the instigator could also have been a number of other high-profile tech providers in Kazakhstan that may also have the opportunity to compete for the tender. By way of background, the BAC was first proposed back in 2020 but temporarily paused.
Now BAC appears to be having a renaissance in parliament.
The parliament needs to carefully consider and re-evaluate the role of BAC and whether it even serves to address the ‘gambling addiction’ problem that they seeks to resolve.
The repercussions can be significant.
And if lessons were to be learned, the effect this can have on the gambling sector and Kazakh society in general can be possibly devastating. This cannot be brushed off lightly and can be harmful to the trajectory of Kazakhstan.
Meanwhile and totally separately, the European Gaming and Betting Association (EGBA) has published its Annual Activity Report for 2023.
It showcases EGBA’s recent efforts to raise standards in areas such as anti-money laundering, safer gambling, and collaboration.
Notable initiatives from EGBA in the past twelve months include its introduction of robust anti-money laundering guidelines for Europe’s online gambling sector, the association’s work towards the standardization of markers of harm at the European level, and its initiatives to foster collaboration within the sector on crucial topics such as cyber security.
The report reveals an 8% decrease in the combined online gross gaming revenues of EGBA members to €10.7 billion in 2022.
Additionally, for the first time, casino revenue surpassed sports betting, accounting for 48% of EGBA members’ online revenues.
Maarten Haijer, Secretary General, EGBA, said, “Over the past year, we have focused our efforts on raising industry standards and driving positive change within the sector.
“We are grateful for the trust and support of our members, who push progress forward and regularly demonstrate their commitment to being open and transparent, including by sharing their valuable industry data.”
He added, “The recent decrease in revenues could be attributed to a combination of factors, including the impact of the cost-of-living crisis on customer gambling habits and a streak of customer-friendly sports results.”
The two issues are entirely separate but do reflect growing attention, not least among policymakers, being given to the gambling and betting sector both in Europe and further afield.
