Can online gaming regulation protect consumers, attract reputable operators and generate tax revenues while providing government agencies with a playbook to effectively police the industry? If you were able to boil down all queries,
Not only is it possible for regulation to ensure that citizens are well protected, that companies are actively encouraged to act responsibly and that a stable revenue stream feeds back into state coffers, but a vacuum of oversight can create a situation where the inverse is true. We strongly believe in the positive message of safe and sensible regulation, but to be blinkered to the impact of having no active legislation in today’s global online environment is a naivety that should be dismissed with clear and progressive debate, especially when online gaming offers the opportunity for an immediate boost to public funds.
Regulating online gaming is proven to be an extremely effective way to generate revenues at the state level. The structure for a robust and regulated online industry can be put in place significantly quicker than live bricks and mortar gaming, which can take a couple of years or more to even start generating the same revenues. For example, New Jersey has generated over US$ 100 million in tax revenues since it introduced regulation in 2013.
Many jurisdictions, including the United Kingdom, Portugal, Italy, Denmark, France, Spain, New Jersey and Nevada, have proved that regulation can and does work. The correct legislation can ensure that a healthy consumer-operator-regulator relationship promotes best practice across áreas such as AML (anti-money laundering), responsible gaming and fund protection by putting real regulatory oversight at the heart of the industry.
Put simply, a licensed gaming environment doesn’t just generate revenue for the country but also creates a structure where operators are awarded licenses on the strength of their products, policies and protocols, all screened to make sure customers are being treated fairly and are being offered the quality and service that protects the sector long term. The regulator ensures this is the case and has the ultimate sanction of removing the right of operators to offer service in their jurisdiction. All this helps the industry to grow.
Encouraging a Wild West scenario through inaction allows all operators to thrive, not just those that act responsibly, with no contribution back to the state. Public companies, such as ours which owns and operates the PokerStars brand, not only feel a moral authority to do right by our customers (now counting at more than 111 million worldwide) but we know that it makes business sense, too. Smaller fly-by-night operators can often use a different business model, one that can leave players out of pocket and critics accusing the industry at large. Clearly that’s a situation that no one wants.
Momentum for regulation continues to grow across Latin America. There is the opportunity for Brazil to take control and lead from the front; producing and growing sustainable tax revenues that can be ploughed back into the future of Brazil, while shielding its citizens from unprincipled operators by putting a stop to the unregulated market. The industry is here to help. It is in our best interests, that’s true, but we know that the best thing for us is to do right by citizen and state.
Amaya strongly supports the adoption of regulatory regimes and as the most licensed online póker operator in the
Eric Hollreiser, Vice President of Corporate Communications
Amaya Inc and PokerStars
