Is the US online casino market being overlooked?

In Indonesia, the Ministry of Communication and Information Technology (Kominfo) is gearing up to use Artificial Intelligence (AI) to win the war on illegal online gambling.

Teguh Arifiyadi, Director of Application Control at the Directorate General of Informatics Applications, is a strong advocate for using AI to eliminate illegal gambling websites and apps. He explained how AI enables the rapid detection and blocking of online gambling sites at a rate that would be impossible otherwise.

"We are harnessing the latest technology to detect and block online gambling sites. With machine learning, our systems can learn from existing patterns and continuously update blocking methods in line with the technological advancements used by perpetrators," he stated.

The AI-driven system not only prevents access to these sites but also helps to suppress the emergence of new sites, which often appear within hours of older ones being blocked.

Arifiyadi acknowledges, however, that while advanced technology is crucial, it is not sufficient on its own due to the enormous financial turnover involved in online gambling activities.

Kominfo has recently strengthened its partnership with several key agencies, including the Indonesian National Police, the Financial Services Authority (OJK), and the Financial Transaction Reports and Analysis Center (PPATK).

Kominfo’s partnership with OJK focuses on blocking bank accounts used for online gambling transactions, while the Indonesian National Police ensures that those involved in illegal gambling are prosecuted. As part of these efforts, PPATK has already blocked 4,548 accounts suspected of being used for gambling deposits in 2024.

The turnover of online gambling in Indonesia is expected to exceed $20 billion by the end of the year. The government, led by Kominfo, has vowed to eradicate illegal gambling, which is viewed by authorities as a threat to the population, particularly to lower-income groups, who make up the majority of the estimated three million participants.

In recent years, the Financial Transaction Reports and Analysis Center (PPATK) has revealed an exponential increase in the flow of money within the illegal online gambling sector. From $129 million in 2017 to $323 million in 2020, the turnover surged to $21 billion by 2023, according to official figures.

The sports betting industry is growing in the United States, reflecting one of the most popular trends in the global gaming scene. Since the legalization of sports betting in 2018, when the US Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA), the American market has seen a lot of growth. In just five years, annual gross gaming revenue (GGR) skyrocketed from $400 million to $11 billion in 2023, highlighting the country as one of the leading global players in this sector.

The GGR, an acronym for Gross Gaming Revenue, is a key indicator to understand the performance of the sports betting sector. It represents the total amount of money wagered minus the winnings distributed to players. For example, if in a casino a player bets $1 million and wins $900,000, the resulting GGR would be $100,000. This concept is essential for measuring the profitability and financial health of the gaming marketplace.

Gross gaming revenue in the United States has increased  very rapidly from $0.4 billion in 2018 to $0.9 billion in 2019, $1.5 billion in 2020, $4.3 billion in 2021, $7.5 billion in 2022, to reach the current figure of $11.0 billion in 2023.

Since the 2018 decision, states such as Nevada, New Jersey, and Pennsylvania have led the growth of sports betting in the US. Nevada, driven by Las Vegas, is one example. In the first four months of 2024, the state generated more than $5 billion in commercial gaming revenue, which includes sources other than sports betting. New Jersey and Pennsylvania also stood out, each generating more than $2 billion over the same period. These numbers reflect the strong sports culture, regulatory frameworks, and early adoption of legalisation in these states.

The impact of legalisation is evident in both the numbers and the geographic expansion of the market. To date, 38 states and the District of Columbia have legalised sports betting.

The future of sports betting in the United States is positive, with economic, cultural, and legal factors driving the industry. With more states legalizing and revenues on the rise, the country is establishing itself as one of the largest sports betting markets in the world.

PlayUp Interactive, trading as Draftstars, has been handed a record fine of $586,000 for breaching New South Wales' stringent gambling advertising regulations as reported by The Guardian earlier today. The Sydney-based operator, known as Australia's largest daily fantasy sports provider, was penalised after being found guilty of 33 offences related to illegal advertisements. These ads, prominently displayed on its website, offered free bets and other inducements to potential customers—a practice explicitly outlawed in the state.

The fine was issued by Sydney’s Downing Centre local court, marking the most substantial financial penalty ever imposed for such violations in New South Wales. Under state law, it is illegal to offer any incentives to open, maintain, or refer others to betting accounts. These regulations, which are similarly enforced across other Australian states and territories, aim to curb the aggressive marketing tactics that can lead to problem gambling.

Dimitri Argeres, Director of Compliance and Enforcement at Liquor and Gaming NSW, drew attention to the gravity of the offences and the company’s responsibility to adhere to the legal framework governing gambling advertising. "It is the responsibility of the betting service provider to ensure prohibited gambling advertising is not published or communicated in NSW," Argeres stated, reflecting the regulator’s unwavering commitment to enforcing these laws. He further emphasised that Liquor and Gaming NSW will continue to adopt a zero-tolerance approach, with the hefty fine serving as a stark reminder of the consequences of non-compliance.

This record-breaking penalty comes at a time of intense national debate over the future of gambling advertising in Australia. Amid growing concerns about the impact of such ads on vulnerable populations, there has been a push for federal legislation that would impose a blanket ban on gambling promotions across all media platforms, including television, streaming services, and radio. The debate has also highlighted the reliance of Australian media companies on gambling ad revenue, prompting discussions about alternative funding models.

PlayUp Interactive, which operates not only in Australia but also in New Zealand, India, and the United States, has yet to publicly comment on the ruling. The company acquired Draftstars in 2018 from CrownBet, which later merged with Sportsbet. The penalty imposed on PlayUp far exceeds the previous record fine of $210,000 levied against Betr in 2023 for similar offences. As the largest daily fantasy sports operator in the country, PlayUp’s compliance with gambling laws will likely continue to be scrutinised closely by regulators.

The Esports Integrity Commission (ESIC) has announced that the ESIC Global Esports Summit (EGES) will make its U.S. debut on 3-4 October, 2024, at the Georgia World Congress Centre in Atlanta, Georgia. This prestigious event marks a significant milestone as the summit, renowned for being a key platform for discussing integrity and transparency in esports, is hosted in the U.S. for the first time.

The EGES 2024 will be held alongside DreamHack Atlanta, a globally recognized gaming festival, offering attendees an exclusive opportunity to participate in both events. The collaboration with DreamHack highlights the summit's focus on bringing together various stakeholders from the esports industry, including publishers, tournament organizers, and media professionals, to address the challenges and opportunities in the rapidly growing esports sector.

ESIC CEO Stephen Hanna (pictured above), emphasised the importance of this gathering, noting, "As the esports industry continues to evolve at an unprecedented pace, it is crucial for industry leaders to convene and collaborate on maintaining the integrity that is fundamental to the success of esports worldwide." The summit will feature a carefully curated agenda of keynote presentations, expert panels, and workshops, fostering deep discussions on the future of esports.

David Neichel, Senior Vice President of Public & International Affairs at ESL FACEIT Group (EFG), which is presenting the event, expressed enthusiasm about hosting the summit in Atlanta. "This prestigious global event, combined with the DreamHack festival and Georgia Games Week, will provide a unique immersion into the thriving esports and video games community," Neichel said.

The EGES 2024 is designed for industry executives and decision-makers, offering strategic insights and networking opportunities essential for navigating the complexities of the esports landscape. With a focus on upholding the integrity of esports competitions, the summit is set to be a pivotal event in the global esports calendar.