Dg Grow Gambling
We would like to show you a description here but the site won’t allow us. 2014 - 2016: European Commission; DG Grow (Brussels) Member of the EU intellectual property rights expert group 2009 - 2011: Ministerio del Interior - Home Office (Spain) Member of the online gambling consultancy experts group PRIVATE INDUSTRY: 2014 - 2016: Webshield (Munich) Member of the European permanent advisory board NON-PROFIT. Part-time economist and full-time curmudgeon Andy Rooney trashed the gambling business in a recent 60 Minutes piece. The thing that bothers me most about gambling is that people fritter away money so they don’t get to spend it on things that someone else has been paid to produce. The National Lottery Regulatory Commission (NLRC) was established through the National Lottery Act of 2005. The Commission was primarily born out of the need to regulate the operations of lottery business, promote transparency and accountability in lottery; and protect the interests of players, stakeholders and the general public.
The 2019 Gambling Industry Report from iovation provides an alternative perspective on the state of the online gambling industry.
The report is based on an analysis of over 518 million transactions from more than 100 gambling operators and platforms. All are customers of iovation’s financial transaction security services.
“Following the money” offers insights that other gambling studies don’t have the granularity to see.
Diving into iovation study results
The report identifies three key themes for it findings:
- Mobile transactions skyrocket
- Game abuse and cheating increase but level out
- Credit card fraud continues steady climb
Iovation makes the case that using its services can:
- Provide a superior player experience as a market differentiator
- Assist operators to manage regulatory risk
- Integrate customer authentication with next-generation fraud prevention, to protect against both existing and emerging threats
Jon Karl, iovation EVP of Corporate Development and co-founder:
“… there are still some constants we can rely on. While fraudsters may have adapted their tactics over the years, at the heart of every online fraud attempt — whether through the web, an application or via a mobile browser — is a customer device.”
Mobile now 70 percent of online gambling transactions
The last five years are marked by the continuing expansion of mobile gambling. Not only are players using their mobile devices to gamble, they are using them to pay for their online gambling.
Back in 2012, the growth rate for mobile financial transactions compared to 2011 was just 6 percent. In 2018 the growth rate had soared to 95 percent.
Iovation found that 70 percent of all online gambling transactions are now made using mobile devices.
Growth rate for game abuse, cheating falls steeply
Game abuse and cheated are perennial problems for gambling operators.
The most prevalent problem is bonus abuse. In the past three years, iovation records bonus abuse rising by 287 percent. Operators are responding to the threat by enhancing their Know Your Customer (KYC) processes with predictive analytics.
This new technology not only helps operators monitor and forecast potential fraud. It also provides “better targeting for upsell opportunities and premium promotions.”
The report also notes that cheating continues to grow. In 2018, the growth rate was 12 percent. That’s still a high number, but much less than the 55 percent recorded in 2017.
Where iovation sees fraud potential
A particular risk that iovation identifies is organized fraud rings:
“Lone bad actors and serial cheaters aren’t going away, but a new class of organized fraud rings that are working collaboratively across the globe poses a major threat.”
Iovation concludes:
“iGaming businesses must evolve their response to such threats. Innovative technologies such as device intelligence, device-based authentication and data analytics have proven essential in helping operators to distinguish threats from the mass of legitimate players.
In an environment where players expect payouts immediately, risk signals will have to be interpreted even faster with intelligence from disparate data sources integrated into dynamic decisioning rules.”
Iovation measures regulatory risk by growth of fines
Going outside its transaction data to provide context, iovation calculated that in the UK, regulatory fines against gambling operators rose from £1.6 million ($2.1 million) to £18 million ($23.6 million) between April 2017 and 2018.
A further round of fines in November 2018 totaled £14 million ($18.4 million).
One of the regulatory risks that can easily lead to fines is self-exclusion. The report found some disturbing statistics.
“During 2018, we saw nearly a million attempts by devices associated with self exclusion to access one or more of the digital properties in our network of iGaming clients — more than four times the 223,000 self-exclusion reports placed that year.”
If anything, US state regulators are even more sensitive to this issue than in the rest of the world.
2019 Gambling Industry Report free download
The report covers interesting areas such as GDPRcompliance in Europe, and player privacy as well as a number of other areas of interest to operators and regulators.
A free copy of the report is available on the iovation website.
Part-time economist and full-time curmudgeon Andy Rooney trashed the gambling business in a recent 60 Minutes piece:
The thing that bothers me most about gambling is that people fritter away money so they don’t get to spend it on things that someone else has been paid to produce. Gambling produces nothing.
Dg Grow Gambling Products
There’s only so much money in the world and if it’;s lost at a gambling table, it’s money that isn’t spent on things America makes. I mean who’s best for this country – a machinist at an automobile plant in Detroit or a blackjack dealer in Las Vegas?
The gambling casinos keep something like 20 percent of everything bet for themselves, so there’s no chance of anyone but the casinos winning over a period of time. They make billions – and where do the billions come from? They come from all of us because we’re the losers. I mean, suckers is what we are.
via Andy Rooney and the Gambling Business – 60 Minutes – CBS News.
The whole thing is weak; I’d like to see a debate between Rooney and, say Peter Collins on the subject. I thought I’d refute the three paragraphs I quoted just for fun, and to set the record straight.
1. “…people fritter away money so they don’t get to spend it on things that someone else has been paid to produce. Gambling produces nothing.”
Ever heard of a post-industrial economy? Since at least the 1960s, less and less “stuff” is being made in America as the country, for better or worse, shifts towards a service-based economy. More than two-thirds of the United States’ gross domestic product (67.8%) is produced by services; less than 20% comes from “things that someone else has been paid to produce.” Gambling “produces” as much as a movie theater or dog-walking service–Rooney, I assume, has no problem with either of those. The funny thing is that Rooney’s worked in television for decades, providing a service to millions of Sunday viewers. Does he think his life has been wasted because he wasn’t hammering steel ingots?
2. “There’s only so much money in the world and if it’s lost at a gambling table, it’s money that isn’t spent on things America makes. I mean who’s best for this country – a machinist at an automobile plant in Detroit or a blackjack dealer in Las Vegas?”
See point (1), with the added point that most of the “stuff” we buy isn’t made in America. By attracting about 5 million foreign tourists to Las Vegas, who left more than $840 million in gambling losses here (estimate based on 2009 LVCVA stats; probably lower than real number), I’d say that gambling is doing its part to lessen the trade deficit.
Dg Grow Gambling Money
Rooney suggesting that a Detroit machinist is intrinsically better for America than a Las Vegas blackjack dealer is curious. Why does he think this? Is there something morally superior in making cars?
3. “The gambling casinos keep something like 20 percent of everything bet for themselves, so there’s no chance of anyone but the casinos winning over a period of time.”
Second half of the statement is true, but the first is wrong: casinos keep, on average, nowhere near 20 percent. If Rooney has a research staff, he should fire them, because they could have gotten the right number from the Center for Gaming Research’s website’s 2009 Nevada Gaming Win Summary.
The real totals for Nevada’s casinos in 2009 were:
Slot Machines: $6.8 billion revenue, with casinos keeping 6.10% of all money bet.
Table Games: $3.4 billion revenue, with casinos keeping 12.04% of all money bet.
Total gambling win was $10.3 billion, with casinos keeping 7.37% of all money bet.
Nevada casinos actually kept less than eight percent of everything bet, less than half of Rooney’s estimate.
I don’t have the data to back this up, but I’d suggest that Americans lost more than eight percent of what they’d “invested” in their financial portfolio’s last year. I can definitively say that if you took the money you paid for an investment property in Las Vegas in 2006 and put into video poker instead, you’d probably have done much better.
Dg Grow Gambling Meaning
So there’s more emotion than reason in this outburst from Rooney. Not that you’d expect more from a guy who makes his living complaining about Lady Gaga and the decline in the quality of the funny papers, but like I said on Friday, if you don’t point out the real facts, bad facts become accepted as the truth.