"I think this pandemic has shown that more needs to be done to address unregulated gambling"

What are your first concepts and insights regarding the impact the coronavirus pandemic is having on the gaming industry globally? What key effects, learnings or trends have you identified so far?

In some jurisdictions, land-based gambling venues led with graduated responses to the escalating pandemic including embracing social distancing measures to enable continued albeit reduced operations, while mitigating risks to their patrons and public health. But most, if not all, either transitioned to complete closures of their own initiative or in response to government requirements. Shutdown measures employed almost universally, combined with stay at home orders, appear to have contributed to suppressing the spread of the virus, however, they have been brutal for business and the economy. I think the human face of the gambling industry and its substantial contribution to local employment, entertainment and social activity and connection has been thrown into stark relief.  

With the land-based sector and sporting events shutdown, and a surge in online gaming, what are the specific new challenges for regulators both in the short and long term? Have you seen any changes in terms of problem gambling issues? How do you think this is affecting / will affect the illegal market? Could you describe some examples or provide recent numbers?

There are mixed reports about the surge in online gambling and exacerbation of problem gambling arising from the closure of venues and isolation. Some reports I’ve read refer to relief for individuals, while others refer to a migration to online gambling to fill the gap and make alarming claims about risks of escalating harm. I think we need to resist alarmism and be informed by the evidence. In short, I think we should rebut sophistic claims that advance a preferred narrative and look to credible research. I’m thrilled to see that research is being progressed to better inform this discussion and policy thinking. I’m familiar with one study being progressed by the Gambling Treatment and Research Clinic within the School of Psychology at the University of Sydney with Associate Professor Sally Gainsbury, Professor Alex Blaszczynski, Co-Director and Thomas Swanton.

How would you assess the measures and approach taken by each of the industry's stakeholders (gaming companies, regulators, governments, associations, etc.) so far to address this new landscape? What would be in your opinion the best approach to this global crisis for them, and to an eventual reopening of land-based operations? What possible solutions and resources can they draw on?

I’m reluctant to distinguish gambling and entertainment venues from other industry as business at large has been devastated and unemployment has surged because of the public health response to the pandemic. There are commentators suggesting that consumer behaviours emerging under the shut down and stay at home orders, such as a move to online casinos, poker and esports, will endure once the restrictions are lifted. That might be correct, but I think while individuals may fill the gap left by the pause in sport and venue shut downs, online gambling, particularly unregulated sites, present risks to player safety and siphon gambling taxation revenue away from jurisdictions that meet the costs of industry supervision, consumer protection and response to gambling harm. I understand that demand for some gambling help counselling services is substantially down and this may be correlated with less gambling activity or could be a perverse outcome of isolation from stay at home orders. Monitoring demand once the restrictions lift will be critical to better understand what has occurred. I think this pandemic has shown that more needs to be done to address unregulated gambling to better safeguard players and recognise that regulated industry supports economic and social activity which means jobs, social connection and resilient communities. Leadership on gambling advertising is also sorely needed and it was great to see the European Gaming and Betting Association publish a pan-European code of conduct on responsible advertising for online gambling.

Do you see the need for further regulatory actions to be taken in some of the main gaming jurisdictions, or examples to follow? From a regulator perspective, could you mention similarities and differences between those gaming jurisdictions?

I’m cautious to make statements on where further regulatory intervention may be appropriate given the dearth of research. Policy development is most effective and carries more weight when carefully informed by evidence. While policy makers need to weigh a range of factors, robust evidence helps ensure informed decision-making and the most appropriate policy levers are considered. As well as unintended consequences avoided, however, it is not always appropriate or necessary to weight and some precautionary action may be appropriate, where the risk of harm is high. I have seen mixed reports about increased advertising and targeting of vulnerable consumers with direct marketing. Purposefully targeting vulnerable consumers in the current environment would be unconscionable if it’s occurring and should be publicly denounced and sanctioned accordingly.

What special actions or strategies is IAGR taking to address and adapt to this new landscape and challenges?

IAGR’s annual conference themed Disrupting the Regulator: Sparking Innovation in Regulatory Practice, was scheduled to be held in Boston 20 – 25 September 2020, however, the current public health and economic challenges mean proceeding with the conference this year is impractical. While profoundly disappointing to have to reschedule the main gambling regulatory event of the year, particularly given the impressive line-up of speakers we have assembled, we have to prioritise the safety and wellbeing of our members and stakeholders. We are discussing alternative dates with our the Marriott Copley Boston as well as our partners the Massachusetts Gaming Commission and the International Masters of Gaming Law and expect to announce new dates shortly. More information about IAGR’s annual conference and exciting theme is available at iagr2020.com

We are also actively considering a couple of policy matters including enlarging IAGR’s membership to encourage industry stakeholders to join and contribute to our dialogue and initiatives to advance effective and efficient gambling regulation. We are also contemplating establishing some form of sponsorship arrangements for our annual conference and ongoing activities to help IAGR bolster its strategic reach and impact. 

While delayed by the current public health crisis, we are continuing to advance our strategic planning to ensure IAGR is best positioned to lead gambling regulation into the future. We are considering a range of initiatives including getting more involved in regulatory education with the International Center for Gaming Regulation (ICGR) as one option. A prestigious five day gambling regulatory program Regulating The Game is being developed with ICGR and will be conducted in Sydney Australia in August 2021 coinciding with the Australasian Gaming Expo.

What are the main demands or concerns you've been receiving from your members and partners since the outbreak began?’

I think there has been some more extreme commentators that are using the current restrictions to make alarming claims about escalating harm without a proper evidence base and perhaps more motivated to advance an anti-gambling agenda than contribute to meaningful discussion about responsible industry. This is unhelpful and I place limited if any weight on such excited claims.

I am more interested in the opportunity to build momentum towards innovation in regulatory practice that can deliver more efficient and effective supervision and deliver more robust responsible gambling outcomes. Hopefully, the inertia around embracing rapidly advancing technology to harvest greater data and enhance the regulatory craft will give way to more curiosity and momentum towards untapped potential to improve player protection while enabling innovative and sustainable industry. I think we can look more closely at the RegTech market and lessons from financial services supervision and bring an appetite for new technology and ways of working to map a more innovative path for gambling regulation into the future.