Gambling tycoons at top of UK tax list

Welcome to this week’s Weekend Report, where we dive into the latest developments in the gambling sector from Friday to Sunday. In today’s edition: leading gambling executives topping the tax charts, a French operator facing penalties for compliance failures, and a Canadian investigation linking online gambling to illicit fentanyl activities.

Betfred and Bet365 Founders Among UK’s Top Tax Contributors

In a notable indication of their financial triumph, Fred and Peter Done, owners of Betfred, have secured the second position on The Times’ esteemed list of the highest taxpayers in the UK for the past fiscal year. Their impressive tax contribution of £273.4 million (€324.7 million/$341.2 million) marks a substantial increase from the £204.6 million paid in 2023, reflecting their ongoing commitment to corporate responsibility. Topping this year’s Tax List is Chris Hohn, founder of Children’s Investment Fund Management, who contributed £339.5 million.

The Coates family, owners of Bet365, has also made a significant impact by landing in third place with a tax contribution of £265 million to the public treasury. These figures underscore not only the financial strength of these operators but also their important roles in the UK’s economy through substantial tax payments.

French Regulatory Authority Enforces Penalty on Non-Compliant Operator

In a recent move to uphold consumer protection, France’s gambling regulator, the l’Autorité Nationale des Jeux (ANJ), has taken action against an unnamed gambling operator for failing to adhere to player withdrawal regulations. The ANJ’s sanctions committee received the case, alleging that the operator neglected its duty to validate withdrawal requests promptly, a requirement in place since 2010.

The committee ultimately imposed a financial penalty of €5,000, stopping short of publicizing the violation. This case highlights the critical importance of compliance in the gambling industry and reflects the ANJ’s commitment to holding operators accountable for their operational practices.

Canada’s FINTRAC Links Online Gambling Transactions to Illicit Drug Trafficking

A recent report released by FINTRAC, Canada’s national financial intelligence agency, has spotlighted online gambling as a significant avenue for laundering money linked to fentanyl trafficking and production. The agency emphasizes that drug traffickers often utilize online gambling platforms to obscure the origins of their funds, receiving payments through various channels, including payment processors in Malta, Canada, and the UK.

The report, titled ‘Operational Alert: Laundering the Proceeds of Illicit Synthetic Opioids’, aims to equip businesses with the necessary tools to identify and report suspicious financial transactions related to the production and distribution of dangerous synthetic opioids. This revelation underscores the urgent need for robust regulatory frameworks and enhanced measures within the online gambling sector to prevent abuse and illegal activities.

NFL Introduces Responsible Gambling Initiative for Student-Athletes

In a proactive step towards promoting responsible gambling, the National Football League (NFL) has announced the launch of a dedicated training program for college and university student-athletes. Collaborating with the Responsible Gambling Council (RGC), the initiative targets this demographic known to be particularly vulnerable to gambling-related risks.

The program is set to commence in the spring semester of 2025 at eight selected institutions, marking a significant effort by the NFL to raise awareness and provide crucial insights into responsible gambling practices. This initiative exemplifies the importance of education and prevention within the context of evolving gambling landscapes, particularly among younger audiences.

Lotto-Berlin Partner with Scientific Games for Revolutionary Gaming System

In a significant technological advancement, Deutsche Klassenlotterie Berlin (DKLB) has entered into a seven-year contract with Scientific Games to implement the Symphony omnichannel gaming system, positioning it as the first German lottery provider to adopt this innovative platform. This strategic decision reinforces the long-standing partnership between the two entities, with Scientific Games having provided technology to Lotto-Berlin for over two decades.

The Symphony system is designed to facilitate seamless gaming experiences across retail, digital, and mobile platforms while integrating third-party content and future entertainment options. Hansjörg Höltkemeier, CEO of Lotto-Berlin, lauded the strategic selection of Scientific Games, emphasizing the user-focused enhancements in operational safety and cybersecurity. This transition is poised to set new industry standards and enhance consumer engagement in the gaming sector.