Allwyn Appoints Katie Harbron as Director of Games to Drive National Lottery Innovation

Allwyn has appointed Katie Harbron as its new director of games, signalling its intent to modernise The National Lottery’s product offering and bridge the gap between traditional lottery formats and digital innovation.

Harbron, who previously served as chief product officer at online casino operator MrQ, brings extensive experience from senior product and commercial roles at Flutter, Sky Betting & Gaming, and Tombola. Her appointment underscores Allwyn’s strategic focus on evolving its game portfolio to meet changing player preferences while maximising returns for Good Causes.

Richard Dawkins, managing director of digital at Allwyn, described Harbron’s expertise in product, content, and commercial development as essential to the company’s ambitions. “I am really excited about the impact I know she and her team will have as we further develop our games to meet the evolving needs of our players and to ensure we responsibly generate more money for Good Causes,” he said.

Strategic Priority on Game Innovation

One of Harbron’s key priorities will be spearheading the creation of new game concepts tailored to contemporary player expectations. The National Lottery has historically relied on draw-based games and scratchcards. But the industry is shifting rapidly towards digital-first products, interactive instant-win games, and mobile offerings.

Harbron expressed enthusiasm for the role, citing The National Lottery’s unique cultural position in the UK. “I have always admired The National Lottery and the unique position it holds in the UK, so the opportunity to play a part in innovating the games is incredibly exciting,” she said.

Part of Broader Digital Transformation

The appointment comes as Allwyn continues to invest heavily in modernising the National Lottery’s digital infrastructure. Earlier this year, the operator completed a major upgrade to the lottery’s website and mobile platforms, migrating approximately 11.8 million player accounts to a new account management system.

The upgrade introduced enhanced player protection tools and expanded the digital game offering.

Allwyn, which secured the contract to operate The National Lottery in 2022 and officially took over from Camelot in 2024, has been building out its leadership team to support its growth strategy. Industry veteran Kresimir Spajic was hired as digital CEO in August last year to lead global digital expansion and oversee the integration of acquisitions including PrizePicks in the US and OPAP in Europe. The operator also established a senior retail role in January to champion the role of lottery retailers in local communities.

Harbron’s hire reflects the increasingly blurred lines between traditional lottery products and newer, digital-first offerings. As consumer preferences shift towards mobile and on-demand entertainment, lottery operators are under pressure to innovate while maintaining the integrity and broad appeal that has made The National Lottery a cultural institution for decades.

Colombia Reinstates 16% Online Gambling Deposit Tax Amid Flood Crisis

Colombia has reintroduced a tax on online gambling deposits following severe flooding across eight provinces. It’s the latest chapter in the country’s turbulent fiscal relationship with its licensed gambling sector, and frankly, operators must be getting tired of this.

President Gustavo Petro signed emergency decrees last Thursday establishing a 16% consumption tax on cash deposits made to online games of chance. The levy applies to all operators serving the Colombian market, regardless of where they’re based. It comes as the outgoing administration scrambles to shore up funding for disaster relief.

The move forms part of a broader emergency package aimed at injecting an additional COP8.6 trillion (around $2.3 billion) into the nation’s 2026 budget. According to government statements, the revised budget allocation proved “insufficient for the annual provision for disaster and public calamity relief” following the flooding crisis.

Budget Battles and Emergency Powers

The emergency tax comes against a backdrop of significant political friction over Colombia’s fiscal planning. Petro, whose four-year term ends ahead of May elections, suffered a major setback in late 2025 when his original 2026 budget proposal was rejected outright.

The subsequently approved revision came in COP10 trillion lower than the initial projection. The government now characterises this as a critical funding gap.

For Colombia’s licensed gambling operators, the deposit tax represents another layer of fiscal burden on top of the standard 15% gambling tax. The sector has experienced considerable regulatory whiplash over the past year, with tax policy shifting repeatedly in response to various government emergencies. In practice, operators are dealing with a moving target.

A Pattern of Emergency Taxation

This isn’t the first time Colombian authorities have turned to gambling taxation to address urgent funding needs. In February 2025, the government introduced a 19% value-added tax on deposits following civil disturbances in the Catatumbo region.

That measure proved deeply problematic for the sector.

By April 2025, the Colombian Federation of Gambling Entrepreneurs reported that online gross gaming revenue had fallen 30% since the VAT’s introduction. The decline carried wider implications beyond operator balance sheets. The Colombian health sector, which received COP990 billion from gambling taxes in 2024, faced a substantial revenue shortfall.

The government’s subsequent attempts to make that VAT permanent failed when the Senate’s Fourth Committee rejected the related Financing Law in December. An emergency decree shifting the tax from deposits to gross gaming revenue was then suspended by the Constitutional Court in January over concerns about its constitutionality.

Legal and Industry Questions

The new 16% deposit tax now faces potential scrutiny on similar constitutional grounds. The government has pre-emptively defended its position, though, arguing that invoking emergency taxation powers in response to flooding constitutes a legally distinct action from previous measures.

“The adoption of tax measures in a previous emergency does not prevent the national government from using them again in a subsequent exceptional situation to address a different crisis,” the decree states.

Whether this interpretation will satisfy the Constitutional Court remains an open question. For Colombia’s gambling operators, the immediate reality is clear. Another tax layer has been added to an already complex and shifting regulatory landscape, just as the sector was beginning to recover from the impacts of the previous levy.

With Petro’s presidency entering its final months and elections approaching, the long-term stability of Colombia’s gambling tax framework remains uncertain. What is certain is that operators serving the Colombian market will need to factor yet another fiscal variable into their strategic planning for 2026 and beyond.

What the team thinks

Sheena McAllister says:

While emergency taxation during natural disasters is understandable from a fiscal perspective, implementing a 16% deposit tax on such short notice creates significant compliance headaches for operators and risks pushing players toward unlicensed alternatives. The real concern here is whether Colombia’s regulatory framework can maintain market integrity when emergency measures override the stability that licensed operators need to invest in the market long term. This approach of treating gambling as an easy revenue tap during crises, rather than building sustainable tax policy, threatens to undermine the very licensing regime that Colombia worked hard to establish.

Osaka Casino Faces Uphill Battle for Cultural Acceptance, Says Japan Resident Pico Iyer

Acclaimed essayist and longtime Japan resident Pico Iyer has cast doubt on whether Osaka’s forthcoming integrated resort will find enthusiastic local support, despite the city’s reputation as Japan’s most outgoing urban centre. Speaking at the recent Ubud Writers and Readers Festival in Bali, Iyer suggested that casino gambling simply doesn’t align with Japanese cultural sensibilities, even as the country prepares to license two additional integrated resorts in May.

Iyer, who has lived in the Kansai region for 38 years and authored A Beginner’s Guide to Japan, admitted he wasn’t even aware that Osaka had secured approval for an integrated resort on Yumeshima Island. The joint venture between Japanese financial giant Orix and MGM Resorts International received government backing in 2023, following decades of debate over casino legalisation.

Gambling Exists, But Remains Marginalised

The cultural observer acknowledged that Japanese punters wagered approximately $22 billion on horse racing last year. That’s over one-sixth of global totals. Pachinko, the ubiquitous parlour game that blends skill and chance with manga and anime themes, generated player losses exceeding $30 billion in 2024, surpassing Macau’s gross gaming revenue and tripling that of the Las Vegas Strip.

Yet Iyer maintains these activities occupy society’s margins rather than its mainstream. “I think pachinko belongs to the margins of society, and people look down on it or see it as semi-criminal,” he noted. The sector’s contraction supports this assessment. Pachinko outlets have plummeted from 18,000 venues in 1995 to just 6,706 in 2024, according to industry researcher Tsuyoshi Tanaka.

When Japanese friends visit California, Las Vegas attracts them for spectacle rather than wagering, the essayist observed. “They’re going for the shows and for the glitter, whereas I think people from other communities are eager to go to Las Vegas only for one reason,” he said.

Osaka’s Character May Not Guarantee Success

MGM Japan’s president Ed Bowers has described Osaka as “the most Chinese” city in Japan, referencing its boisterous character. Iyer agreed that Osaka differs markedly from nearby Kyoto’s refined restraint, calling it “Kyoto turned on its head in some ways.” The city’s proximity to major Chinese tourist markets appears central to the integrated resort strategy. Visitors from mainland China, Taiwan and Hong Kong accounted for 43 per cent of Japan’s 43 million arrivals last year.

Still, Iyer suggested that rapid tourism growth has created friction in a society built on shared assumptions, silence and order. “The presence of foreigners in Japan is much more disruptive than it would be anywhere else, especially Singapore or Macau, because Japan is based not only on the notion of everybody sharing the same assumptions, but on the notion of everybody being silent, orderly and obedient,” he explained.

Long-Term Cultural Shift Required

The author believes Japan’s deep roots in traditional customs mean societal change occurs slowly and collectively. “I can see that it might take a long time for the society as a whole, which often thinks as a whole, to change its views about casinos and gambling and to get over whatever reservations it may have,” Iyer said.

This cultural conservatism already shaped Japan’s integrated resort programme. After the government approved licensing up to three casinos in 2018, only two of 47 eligible jurisdictions submitted bids, primarily due to vocal public opposition. That reluctance may prove the integrated resort sector’s most significant challenge, regardless of Osaka’s distinctive character or the tourism industry’s explosive growth.

Genting Bhd Closes in on 75% Control Threshold for Genting Malaysia Delisting

Genting Bhd has continued acquiring shares in its listed subsidiary Genting Malaysia, lifting its stake to 73.838% and moving within striking distance of the 75% threshold that would unlock statutory control and trigger a potential delisting process. The incremental purchases, conducted on the open market since the parent company’s mandatory takeover offer closed in early December, represent a methodical push toward a goal Genting Bhd first articulated during its October takeover campaign.

The corporate mechanics are straightforward. At 75%, Malaysian listing rules would require Genting Bhd to convene a shareholder meeting and present a reasonable cash or alternative offer to remaining minority investors.

This would mark the formal start of a delisting procedure, though not its guaranteed conclusion. Opposition from more than 10% of shareholders could still block the exit from public markets, leaving the final outcome dependent on how the remaining investor base responds.

Strategic Context Behind the Acquisition

Genting Malaysia is far from a peripheral asset. The company sits at the operational heart of the group’s global gaming portfolio, controlling Resorts World Genting in Malaysia, casino properties in the UK including Resorts World Birmingham, and the group’s US operations through Empire Resorts. The crown jewel in this collection is Resorts World New York City, which recently secured a full commercial casino license permitting table games and opening the door to a potential integrated resort development. That upgrade carries real implications for future earnings and justifies the parent company’s desire for tighter control over strategic direction.

Tighter ownership also simplifies capital allocation decisions and reduces the complexity of managing expansion projects across multiple jurisdictions when minority shareholders have a say in subsidiary governance. For a group with assets spanning three continents, streamlining the corporate structure makes operational sense.

Regulatory Constraints and Tactical Buying

Malaysian listing regulations impose a brake on the pace of accumulation. Companies cannot purchase more than 2% of another listed entity’s shares in the 12 months following a lapsed takeover offer. Genting Bhd required only an additional 1.87% after its December offer closed to reach the 75% mark, leaving sufficient headroom to continue acquiring shares within the regulatory limit.

The buying activity since then suggests a calibrated approach, staying compliant while maintaining upward momentum toward the target.

During the takeover offer period, Genting Bhd outlined two possible routes to delisting: reaching 75% for statutory control or hitting 94.94% to trigger compulsory acquisition powers. The latter scenario did not materialise, with the offer closing at 73.13%, but the subsequent purchases indicate the parent remains committed to pursuing the first pathway.

What Happens Next

Investment bank Nomura previously detailed the procedural steps that would follow once Genting Bhd crosses the 75% line. The shareholder meeting and formal offer requirement are non-negotiable under Malaysian law, but the response from minority holders will determine whether delisting actually proceeds. A bloc representing just over 10% of the outstanding shares could derail the entire effort, making the composition and sentiment of the remaining investor base a critical variable.

For now, Genting Bhd is executing a patient strategy, adding to its position in measured increments while regulatory constraints remain in place. Minority shareholders in Genting Malaysia would be wise to monitor the parent company’s disclosures closely. The gap between 73.838% and 75% is narrow, and once crossed, the corporate machinery moves quickly.

Whether that ultimately results in a delisting depends on how persuasive the eventual offer proves to be, but the direction of travel is clear enough.

Brazil Considers Sweeping Ban on Cashback, VIP Schemes and Gamification

Brazil’s fledgling regulated betting market faces potential upheaval as Senator Eduardo Girão introduces legislation that would fundamentally reshape how operators engage with customers. Bill 1018/2026 proposes amendments to Law No. 14.790/2023 that would eliminate cashback programmes, loyalty schemes, and gamification mechanics across licensed platforms.

The proposal arrives barely a year into Brazil’s formal regulatory framework, targeting retention strategies that have become standard practice across mature iGaming markets.

If enacted, operators would face a comprehensive reworking of their customer relationship management infrastructure.

Scope of Proposed Restrictions

The legislation introduces Article 29-A, which would prohibit fixed and variable cashback offers, points-based loyalty programmes, and any rewards calculated from player losses. Equally significant are restrictions on gamification elements, think promotional missions, challenges, leaderboards, and tiered VIP structures that encourage progression through increased play.

Communications would face strict limitations. Operators could no longer deploy personalised marketing based on individual betting history, a cornerstone of modern digital customer engagement. Email campaigns, push notifications, and targeted messages referencing past wagers would be prohibited outright.

The bill also mandates transparency requirements around recommendation algorithms, compelling operators to disclose how their platforms influence betting behaviour.

Regulatory Rationale

Senator Girão’s justification centres on what he characterises as operators circumventing the existing ban on welcome bonuses through indirect incentive structures. The proposal argues that cashback, gamification, and loyalty mechanics create a system of continuous behavioural conditioning. Vulnerable users are particularly affected, he claims.

The legislation calls for the Ministry of Finance to establish technical criteria identifying compulsive betting patterns, positioning consumer protection as the primary policy objective.

Market Implications

Should the National Congress approve the measure, operators would face a 90-day compliance window from publication. This compressed timeline would force rapid operational changes across an industry still establishing itself in the Brazilian market.

The proposal represents one of the most restrictive regulatory approaches globally. Whilst European markets have introduced controls on bonus structures and advertising, few jurisdictions have attempted such comprehensive elimination of retention mechanics. We’re talking about uncharted territory here.

For operators, the commercial calculation becomes stark. Brazil’s enormous market potential must be weighed against a regulatory environment that would prohibit fundamental tools for customer acquisition and lifetime value optimisation. The legislation effectively challenges whether a commercially viable business model remains possible under such constraints.

The bill’s progress through Brazil’s legislative process will be closely watched across the global industry. Its outcome may signal whether Latin America’s largest market proves welcoming to international operators, or whether regulatory overreach creates an environment where sustainable business becomes untenable.

Wicked Games Launches Lucked: Expanding Grid Slot Targets Casual Market

Wicked Games has released Lucked, a medium-volatility Irish-themed slot that employs an expanding grid mechanic to deliver up to 3,125 ways to win. The title represents a calculated play for the casual segment, offering mechanical depth without the high-variance mathematics that dominate much of today’s slots market.

The game launches with a compressed 1-3-5-3-1 grid configuration that expands through consecutive wins, ultimately revealing a full 5×5 play area. It’s a familiar progression system, reminiscent of mechanics popularised by competitors, but executed with enough polish to stand on its own merits.

Maximum exposure sits at 5,000x stake. This positions Lucked firmly in accessible territory rather than chasing the headline-grabbing potential of some recent releases.

Mechanics Built for Retention

The core loop revolves around grid expansion through re-spins. Each winning combination triggers another spin while unlocking additional positions, with the full 3,125-way configuration serving as the gateway to the Free Spins feature. Once triggered, the bonus round introduces a symbol-removal progression system where collecting coin symbols eliminates low-paying icons and awards additional spins.

It’s a layered approach that rewards extended play sessions. The kind of feature set designed to keep players engaged through visible progression rather than pure volatility. The Coin Meter mechanic carries over from base game to bonus, creating continuity between game states that should appeal to operators looking for strong time-on-device metrics.

Wild symbols appear on reels two through five, substituting across all pay combinations. The game also includes banked Clover symbols that convert into additional Free Spins, adding another retention hook to the base gameplay.

Commercial Positioning

Wicked Games has priced the feature buy at 90x stake with a 96.19% RTP. An Ante Bet option doubles the base wager to triple Free Spins trigger probability at 96.14% RTP. The standard game mode sits at 96.11%, all clustering around industry averages.

Betting ranges from 0.25 to 500 per spin, accommodating recreational players without stretching into true high-roller territory. The medium-volatility profile and modest maximum win suggest this is targeted squarely at the mass market rather than bonus hunters or streamers chasing viral moments.

That’s not a criticism, to be clear. It’s strategic positioning in an increasingly segmented marketplace.

Visual Execution

The Irish mythology theme has been executed countless times across the slots landscape, but Wicked Games has delivered competent visual production. The expanding grid provides satisfying visual feedback as blocks break away, while Celtic-inspired audio reinforces the thematic framework without becoming intrusive.

Standard iconography includes horseshoes, clovers, harps, and other luck-adjacent symbols. The resident Leprechaun character adds personality without dominating the screen real estate.

Professional work that won’t win design awards but should perform adequately across diverse player demographics.

Market Implications

Lucked enters a crowded Irish slots category with solid fundamentals rather than revolutionary innovation. The expanding grid mechanic has proven its commercial viability through multiple successful implementations across the industry. The symbol-removal progression adds enough differentiation to justify shelf space.

For operators, this represents a safe addition to the casual gaming mix. The kind of title that generates steady play without the volatility concerns that come with extreme mathematics. The feature buy options provide flexibility for different player preferences while maintaining competitive RTP positioning.

Wicked Games appears to be building a portfolio around accessible gameplay with layered mechanics. A sensible approach as the market continues fragmenting between high-volatility thrill-seekers and recreational players seeking entertainment value over pure win potential.

Cheltenham Festival Sees £60 Million Flow to Illegal Operators, Says BGC

The Betting and Gaming Council has warned that illegal operators captured approximately £60 million in wagers during this year’s Cheltenham Festival. That works out at roughly £2 million per race across the four-day meeting. The figure underscores growing concerns about the scale of Britain’s unlicensed betting market, and it comes at a time when regulatory pressure on legitimate operators continues to intensify.

Cheltenham attracts close to £1 billion in total stakes during Festival week, making it the crown jewel of Britain’s £11 billion annual horse racing betting market. The BGC estimates that around 6% of all British betting now flows through illegal channels. During racing’s biggest week, that share translates into tens of millions disappearing from the regulated sector.

Regulatory Pressure Creating Space for Black Market Growth

Grainne Hurst, Chief Executive of the Betting and Gaming Council, acknowledged that millions of punters placed bets safely with licensed operators. But she warned that the criminal black market is exploiting gaps left by increasingly restrictive regulation. “Rising taxes and increasingly intrusive checks will only make it harder for legitimate operators to compete,” Hurst said. “The priority must be keeping punters in the regulated market where protections are in place, rather than driving them towards harmful unregulated operators.”

The concern centres on two big regulatory shifts. The government’s 2023 white paper introduced affordability checks that require some bettors to hand over personal financial details before placing larger wagers. Worth knowing: the Jockey Club has warned these measures could drain £250 million from horse racing over five years, as customers migrate to unlicensed sites to avoid disclosure requirements.

Tax Increases Add Further Competitive Strain

Tax policy is compounding the challenge. From April, remote gaming duty will double from 21% to 40%. Remote sports betting duty is scheduled to climb from 15% to 25% in 2027. These increases create a real cost disadvantage for licensed UK operators competing against offshore sites that operate outside the tax net and without the compliance burden of British regulation.

The BGC argues that this combination of higher taxes and intrusive customer checks makes the regulated market less competitive precisely when government policy should be focused on keeping punters within licensed channels. The trade body has called for stronger enforcement action against criminal operators. Plus, they want a regulatory approach that balances consumer protection with the commercial viability of legitimate firms.

With £8 billion placed legally online each year, the Cheltenham figures show how much revenue is at stake. The Festival serves as an annual stress test for Britain’s betting market structure. This year’s results suggest the regulatory environment is creating opportunities for unlicensed operators to expand their foothold in a market that should be among the most tightly controlled in the world.

What the team thinks

Sheena McAllister says:

The £60 million figure is alarming but highlights what we’ve been saying for years: heavy restrictions on licensed operators don’t eliminate gambling demand, they simply push punters toward unregulated alternatives with zero consumer protections. While the UKGC intensifies compliance requirements on legitimate businesses, these illegal operators face no affordability checks, no safer gambling interventions, and pay no tax to support research and treatment. If we’re serious about protecting consumers, we need enforcement resources diverted toward shutting down black market operators rather than continuously tightening the noose on compliant businesses already operating under the world’s strictest regime.

BGC estimates £60m in illegal bets at Cheltenham Festival as regulatory squeeze fuels black market

The Betting and Gaming Council has put a stark figure on the scale of illegal gambling at last week’s Cheltenham Festival, estimating that up to £60 million was staked with unregulated operators during the four-day event.

Using recent market intelligence suggesting the illegal sector now accounts for approximately 6% of total wagering in Great Britain, the BGC calculated that around £2 million per race was flowing to criminal operators during the Festival. That’s significant when you consider the event typically generates close to £1 billion in total stakes across regulated channels.

BGC chief executive Grainne Hurst framed the estimate as evidence of a growing problem that threatens both consumer protection and the economic foundations of British racing. “Cheltenham is the biggest week of the year for racing fans and millions placed bets safely with regulated operators,” Hurst said. “But the criminal harmful black market also tried to cash in, targeting punters with illegal betting that offers none of the protections provided in the regulated sector.”

Regulatory pressures driving market leakage

The BGC’s intervention comes amid mounting industry concern that tightening regulation is inadvertently channelling customers towards unlicensed alternatives.

The trade body pointed specifically to affordability checks introduced following the 2023 white paper, which require operators to conduct financial assessments of customers exceeding certain loss thresholds. The Jockey Club warned in 2024 that these measures could cost the racing industry £250 million over five years as players migrate to black market operators that impose no such requirements. The checks can involve submission of payslips and bank statements. Recreational punters, unsurprisingly, view them as intrusive.

On top of that, there’s a substantial increase in gambling taxation. Remote gaming duty will rise from 21% to 40% next month, while remote sports betting duty is scheduled to climb from 15% to 25% in 2027. These tax hikes create a widening competitive advantage for illegal operators who face no such costs.

Market structure at inflection point

Hurst argued that the combined effect of these regulatory changes is fundamentally reshaping the market in ways policymakers may not have anticipated. “Rising taxes and increasingly intrusive checks will only make it harder for legitimate operators to compete,” she said. “The priority must be keeping punters in the regulated market where protections are in place, rather than driving them towards harmful unregulated operators.”

The BGC called for intensified enforcement action against criminal gambling operations, positioning this as essential both for consumer protection and for preserving revenue flows to British racing, which depends heavily on betting levy contributions and media rights income from licensed operators.

Worth knowing: the £60 million estimate is based on modelling rather than direct measurement. Still, it provides a concrete illustration of the market dynamics that have concerned regulated operators for the past year. As affordability requirements tighten further and tax burdens increase, the financial incentive structure increasingly favours operators willing to work outside the regulatory perimeter.

For racing specifically, the timing is particularly acute. The sport’s funding model relies on regulated betting turnover. Each pound diverted to the black market represents a double loss, both in immediate revenue and in the long-term sustainability of the industry’s economic foundation.

What the team thinks

Carl Mitchell says:

Philippa’s hit on something crucial here, but let’s be honest, when you’ve got punters facing stake limits and enhanced checks that can take days to clear, some are always going to drift to the easy option. I’ve been tracking this from the high street level for years and the real kicker is that these unlicensed sites offer none of the safer gambling tools or self-exclusion protections that brought in the regulations in the first place. The answer isn’t rolling back player safety, but the industry needs to work with regulators to make compliance feel less like punishment for legitimate customers who just want a flutter on the horses.

EU Gambling Tax Proposal Faces Political Appeal, Legal Reality

A proposal to introduce a coordinated European tax on online gambling operators has emerged from Brussels, promising billions in revenue for education and youth programmes. But the idea, however well-intentioned politically, appears to collide with both the legal structure of Europe’s gambling market and the fiscal realities already facing operators in some member states.

Victor Negrescu, vice-president of the European Parliament and a Romanian MEP from the Socialists and Democrats group, has floated the concept as part of discussions around the EU’s multiannual budget framework. The proposed levy, set at 1% of gross gaming revenue, could raise between €2 billion and €4 billion annually, according to Negrescu’s estimates. Over the lifetime of the EU’s long-term budget, that could total €28 billion.

More than 20 MEPs have signed an amendment backing the proposal.

Negrescu frames it as a proportionate contribution from a sector that benefits from the Single Market and shared digital infrastructure. “Online gambling is an inherently digital, cross-border sector,” he told iGB. “It makes sense to ask for a small, proportionate contribution to help manage the societal costs of the digital transition.”

The proceeds would fund education and training initiatives, alongside addiction treatment and prevention programmes. Negrescu also suggests the levy could help regularise contributions across a fragmented landscape where national tax rates range from 5% to nearly 40%.

Fiscal Sovereignty and Market Fragmentation

The challenge is structural. Unlike telecoms or banking, gambling regulation remains firmly within national competence, reflecting its moral, social, and cultural sensitivities. Member states set their own licensing regimes, consumer protections, and tax structures. The result? A patchwork of vastly different systems. Some jurisdictions tax gross gaming revenue at high rates, others apply product-specific levies, and still others use turnover-based models.

For critics, that diversity is precisely why a common European levy would be problematic. Claus Hambach, founding partner of German legal firm Hambach & Hambach and a specialist in gambling regulation, argues the proposal has been framed misleadingly. “This has nothing to do with harmonisation,” he says. “It’s just an additional way to collect more money from a specific sector.”

Hambach points to the economic logic underpinning gambling regulation: channelisation, the process of steering players toward regulated operators. Excessive taxation can undermine that objective entirely.

“If taxation and regulation become too heavy, you simply grow the black market,” he says. “An additional tax like this would, in Germany at least, just increase the size of the black market.”

Germany’s Cautionary Tale

Germany provides a striking case study. The country taxes online slots and poker through a turnover-based stake tax rather than a gross gaming revenue levy, which dramatically alters the economics of the games. The 5% stake tax has already put licensed operators at a disadvantage compared to unlicensed competitors.

Operators have responded by redesigning products, lowering payout rates, and altering game mechanics to remain viable. Even so, profitability remains uncertain for many. “Some operators manage to make a little money, but many have already exited the market,” Hambach notes. “The black market in Germany is growing and growing because nobody can realistically pay that level of tax.”

If an additional European levy were layered on top of existing national taxes, he argues, the outcome would be predictable. “If you now add another tax on top, you’ll simply accelerate the growth of the black market. That’s the only outcome.”

Political Ambition Meets Industry Economics

Negrescu and his backers acknowledge the need for stronger enforcement against illegal operators. “By upgrading cross-border enforcement and disruption tools for payments and advertising, we intend to shrink the illegal market,” he says. Whether such measures could actually keep pace with the economic incentives created by higher taxation remains an open question.

The proposal fits neatly into a broader political narrative in Brussels: identifying sectors perceived to generate social costs and redirecting their revenues toward public good. But the gambling industry’s cross-border nature doesn’t necessarily make it suitable for EU-level taxation. The sector operates within a framework where fiscal sovereignty remains jealously guarded by member states. Regulatory success depends on maintaining a delicate balance between tax revenue and market channelisation.

For now, the proposal remains an amendment under discussion. Its political appeal is clear. Its legal and economic viability, rather less so.

Brazil’s Regulator Opposes Advertising Ban, Warns It Could Drive Players to Black Market

Brazil’s Secretariat of Prizes and Bets has mounted a robust defence of betting advertising, warning that proposed restrictions could undermine the country’s fledgling regulated market by making it harder for consumers to tell licensed operators from illegal competitors.

The SPA, which operates under Brazil’s Ministry of Finance, has publicly opposed Bill 3563/2024, legislation that would impose a blanket ban on advertising and sponsorship by betting companies operating in Brazil. Deputy Secretary Daniele Correa Cardoso told news portal Jota that such restrictions could prove counterproductive during the critical transition period to a regulated market.

Advertising as Consumer Protection

The regulator’s position represents a pragmatic view of advertising’s role in market formation. Cardoso argued that commercial communication from licensed platforms serves as the main way for consumers to identify legitimate operators. Restrict that communication, she suggested, and you risk pushing bettors toward unlicensed alternatives that face no such limitations.

It’s a tension familiar to emerging regulated markets worldwide. Advertising bans designed to limit exposure can inadvertently benefit black market operators who continue marketing with impunity.

Brazil’s approach appears to favour transparency over prohibition, using visibility of licensed brands as a regulatory tool rather than treating it as a problem to be solved.

Enforcement Measures Gaining Traction

The SPA’s strategy extends well beyond advertising policy. The regulator has reported blocking over 25,000 illegal online betting sites in coordination with the National Telecommunications Agency, while the Central Bank has been enlisted to cut off payment processing for unauthorized operators.

The regulatory infrastructure is maturing quickly. Brazil has established comprehensive demographic data collection on online bettors and put in place a centralized self-exclusion system, both fundamental components of a functioning regulated market. These measures suggest a government serious about building a sustainable framework rather than simply issuing licenses and hoping for compliance.

World Cup Preparations

The 2026 FIFA World Cup presents both opportunity and challenge for Brazil’s market. Worth knowing: the SPA has identified a specific risk. Operators licensed in host nations but not in Brazil may attempt to target Brazilian consumers through digital advertising, exploiting the tournament’s massive audience.

In response, the regulator plans enhanced monitoring of digital influencers and affiliate marketers, establishing technical cooperation agreements with the Brazilian National Advertising Self-Regulation Council and the Digital Council. The goal is automated detection and removal of irregular advertising, protecting the licensed market’s integrity ahead of one of sport’s premier global events.

The approach reflects a regulator walking a careful line, balancing consumer access to legitimate operators against the need to prevent unlicensed market participation. Whether this strategy proves more effective than outright advertising restrictions will likely influence regulatory thinking across Latin America’s rapidly developing betting markets.