European Gambling Regulation Heats Up
The landscape of European gambling is shifting, with governments and operators taking distinct paths toward reform and responsibility. This latest Gambling Regulation News highlights three significant developments: a proposal for new tax hikes in the United Kingdom, a major reallocation of gambling revenue in Croatia, and a new corporate initiative focused on player safety.
These events show a clear trend towards increased scrutiny and a focus on the social impact of gambling. From fiscal policy debates to proactive corporate governance, the industry is navigating a period of significant change.
Croatia to Double Social Funding from Gambling Revenue
The Croatian government has announced a major reform that will see funds from the gambling sector for social and public programs double starting in 2026. Chief State Treasurer Danijela Stepić confirmed that her office will distribute an allocated €214 million, a substantial increase from the previous cycle's €130 million.
This initiative is a core component of the Games of Chance Act overhaul led by Prime Minister Andrej Plenković’s HDZ government. The reforms are a direct response to a growing gambling addiction crisis in the country, with an estimated 40,000 adults suffering from severe gambling disorders and high rates of problem gambling among teenagers.
Key Reforms in the Games of Chance Act
- A complete ban on self-service gambling terminals in non-dedicated venues like cafés and bars.
- New restrictions preventing betting shops from serving alcohol.
- A 50% increase in license fees for all gambling operators.
- A revised tiered tax structure on player winnings, ranging from 10% to 30%.
Prime Minister Plenković has described these measures as a “civic approach” to regulation. The funds will be channeled into programs that support civil society development, addiction prevention, sports, culture, and support for people with disabilities.
UK Industry Faces New Tax Hike Proposal
In the United Kingdom, the Social Market Foundation (SMF) think tank has proposed another significant tax increase, this time targeting Machine Games Duty (MGD) on Category B slot machines. This follows recent tax hikes that saw online gaming duty rise to 40% and a planned increase of General Betting Duty (GBD) to 25% next year.
The SMF suggests a “targeted” raise of MGD up to 40% on Category B machines, which are common in betting shops and gaming arcades. The foundation estimates this could generate an additional £275 million to £458 million in tax revenue.
“Our modelling shows that raising Machine Games Duty is one of the few tax rises that would actually improve the public finances twice over,” stated Gideon Salutin, Chief Economist at the SMF.
Industry Responds with Strong Opposition
The proposal has been met with sharp criticism from industry stakeholders. The Betting and Gaming Council (BGC) voiced its opposition, stating that a further increase in MGD would put venues and jobs at risk and push customers toward the illegal market.
Dan Waugh, a partner at Regulus Partners, questioned the SMF's methodology. He noted that the SMF's reliance on a Survation poll of just over 2,000 people was a “fairly thin basis for enacting policy.” Waugh also highlighted that the Office for Statistics Regulation had previously warned the SMF for mischaracterizing cost estimates from the Office for Health Improvement and Disparities (OHID) as direct results of problem gambling.
| Machine Type / Stake | Current MGD Rate | SMF Proposed Rate |
|---|---|---|
| Category B (Stakes > £5) | 25% | Up to 40% |
| Category C (Pub Machines) | 20% | Unchanged (20%) |
| Lower-Stake Devices | 5% | Unchanged (5%) |
1xBet Launches '1xCare' Responsible Gambling Division
On the corporate front, international operator 1xBet has launched 1xCare, a new business arm dedicated to responsible gambling. This move is part of the company's strategic pivot toward regulated markets and aims to establish an international hub for player protection and best practices.
Chaired by Simon Westbury, 1xCare is built on four key pillars:
- Research Hub: Supporting evidence-based studies on gambling behavior and risks.
- EduCare: Promoting education and awareness on responsible gambling.
- TechShield: Advancing technologies for early risk detection.
- Support and Wellbeing: Improving access to counseling and support services.
“Responsible gambling is not a slogan; it is a duty,” said Westbury. The initiative aims to collaborate with existing organizations to enhance player safety and build greater trust across the gambling industry.
