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 Coljuegos first on regulate Online gambling in South America

Coljuegos first on regulate Online gambling in South America
Origin: Angel Jimenez
Published: 2016-11-16

Last 25th of july the Regulations of internet operated games in Colombia was published and placed into action by resolution of the President of Coljuegos; which as most of you know is the public company that is in charge of administrating the monopoly of gaming and in such acts as a good medium to regulate such activities.

As well as the regulations the document of Technical requirements for internet operated games and the public data model of the system of inspection (equivalent to the data model of monitoring in spain) were published.

With the publication of these three documents and failing to publish the resolution that would establish the requisites to access the subscription of concessional contracts for internet gaming; COLJUEGOS has completed the process of regulating online gaming and layed the bases for the regulated development of these types of game in the Colombian territory.

The regulation of online gambling has been a long process and one in which COLJUEGOS has had to overcome not only the intrinsic difficulty of any regulatory task, but also the vertigo to place Colombia as the first country in its region to regulate online gambling. By doing so in a way that in my opinion leads to the start of a new market and incorporates ways and solutions that have shown to be successful in other conditions.

Much(and a lot of the good) of the new Colombian norms have como from Spanish regulation which are known to also have come and preceded from European regulations(mainly Italian and French).

As we say, the regulation of a global phenomenon such as online gaming requires study and evaluation of the solutions adopted by other jurisdictions, it requires innovation on issues that were not resolved by the various precedents jurisdictions or that have proven poorly resolved by these and, in any case, the precise adaptation of the measures to the particular circumstances of the country that regulates included.

In this process the new Colombian regulation has taken the best of the Spanish legislation and improved or prevented many measures that hindered or could even affect market development. In addition it has sought the engagement of all these measure in a very different legal and social environment from the Spanish. Only time will show if COLJUEGOS been successful with his work, but I am not mistaken in saying that in the purely regulatory aspect we have a magnificent legislation that is on the right track of a competitive market development, freedom of operators game, not to mention the public control of the activity and the protection of players.

With certainty Colombian rules of online gaming has included from the beginning an extensive catalog of games, of course, much more than that with which we started in spain five years ago and that only a few games were excluded ike, for example, betting on virtual events. It is without doubt more than enough catalog, which provides considerable scope for operators to design their offer and, moreover, if there were to prove insufficient, it is easy to innovate to COLJUEGOS.


The norms help avoid unnecessary authorizations and windows of opportunity for the obtainment concessional contracts, sufficing COLJUEGOS communication and providing the necessary certification for the operation of new games certifications once you have a contract.

The new regulation published by COLJUEGOS has opened the doors to what is sure to be a healthy development of the Colombian market for online gaming and the fact that they have already been made known to operators in other markets (primarily in the Spanish market technical solutions), greatly facilitate entry to many of them in a market that is already in its own right the gateway to online gambling regulated in Latin America.


Colombia is an attractive country with a population slightly under fifty million, with sustained economic growth and outstanding legal certainty. It is an important focus of investor attention in Latin America and, as a result of the new regulations on online gambling as well as the requirements still left to be subscribed for the signing of a contract that allows the operation of this kind of game, is a country where an operator from Spain can move its online operations with ease due to little investment costs and few operational changes.


The economic conditions of the operation are much simpler than in Spain and require much less effort from the operator that is usually required under the Spanish legislation, particularly in regards to guarantees that must be provided and initially placed in the environment of 180,000 euros. If to that we add some exploitment rights (for all practical purposes are the Colombian equivalent to the tax on gambling activities) 15% of net revenues (for games to return to the player over 83%), it is not difficult to see that this is a market that no operator should overlook.

Unfortunately, not everything could be good news and even with the favorable regulation, we find a significant drawback: the subjection of gaming activity to VAT (at a rate of 16%) in addition to the application windfall tax on winnings from games.

In both cases the problems come from the judicial-regulatory branches of Colombia, which through COLJUEGOS there have been several attempts at a solution, but without a doubt still remain troubling for any interested operator trying to partake in the new market. Due to this and without trying to minimize the impact both taxes present on the development of the game activities. Also it cant be said enough that its not a question about a novelty for Colombian citizens but a measure of the same nature would not have the same effects as it would in Europe. Although the VAT exemption would demonstrate a perfectly traced regulation it is still a great reglation that turns Colombia into the ideal place to start a future expansion for the operators currently in spain.


In short, Colombia is already the first Latin American country to regulate online gambling. It is the first that regulates and moreover, in this I personally express my opinion, the first country to correctly decide the path to follow. Only time will tell if, in addition to being a pioneer in online gaming regulation in Latin America, Colombia will also be the source of inspiration for future regulations in their environment.

I have no doubt that for technical and legal quality deserves it, but I am aware that taking the right path, the one that favors the citizens and the market is not always easy in the regulatory environment and much less in the framework of regulation play.

That has been the merit of COLJUEGOS

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Why changing the Online Casino system in Colombia is a bad idea for Coljuegos 

Coljuegos first on regulate Online gambling in South America

The 393 entrepreneurs of games of luck and chance located legally in Colombia since the regulation of Resolution 1400 of 2014, have been complying with the technical conditions of Connectivity of the MET electronic slot machines; these Concession Contracts daily report online the activity of the number of machines that are legal and connected, thus allowing Coljuegos, as a regulatory entity, to review the movements of each game element and of the entirety of each contract, and therefore, be able to Calculate the payment of the exploitation rights of the same.


The online connection reaffirms the standards of transparency and reliability of this industry; and, it strengthens the commitment of these businessmen to continue working within the framework of Legality.

Currently, this type of game is on the brink of having to comply with a recertification process for each of the software that the MET online connection system providers have for the Colombian Jurisdiction. Said task oversees the supplier companies, who must comply with said process in order to ensure the execution of the new technical characteristics, procedures, and requirements that the SCLM+ brings and also, continue consolidating compliance with the transmission for all the 393 companies, ensuring the benefit of the calculation of the rights of exploitation of 12%.


It is of great concern to the localized gaming operators that within the framework of the new project, some observations submitted by unions and businessmen have not been taken into account, in order to add some important aspects in the transmission, and also to correct errors that presented in the current SCLM, which will continue to be presented in the SCLM+, with a rigorous increase in the requirements.


Several months ago with the Cornazar and Fecoljuegos unions, workshops were requested by the same associations, which represent a large number of localized companies, which presented observations and concerns regarding said project, what's more, last week After each of the associations, they filed petition rights, making it clear that the compliance times of said resolution must be extended, in which the document of technical requirements of the Online Connection System, SCLM+, is issued, and also, they argued important aspects for consider how are the information delivery schedules, contingency plan, 24/7 permanent help center, recertification validity, computer risks, among others.


A few days after completing the current stage, there are still many gaps in the project, Coljuegos itself does not have the capacity to react, with the lack of a Presidency many of the projects sleep the sleep of the just and many of the suppliers, not to mention Most of them still do not comply with the recertification requirement due to the change of the protocols at the last minute by the entity that, although they did it at the time, they will have to do it again; These companies, for the most part, are willing to support and accompany the operator entrepreneurs, but definitely this lack of execution would lead to the localized operators being at the gates of processes and breaches, and furthermore, they end up forced to liquidate and pay with the fixed rate base to the detriment of their interests.

In the second article of resolution 20221200013634, there is talk of a term for implementation where authorized operators with a current contract will have a period of up to twelve (12) months, counted from the entry into force of this resolution, to implement the conditions of the new SCLM+


For the purposes of the system and the implementation of the settlement protocol, it will be applied from the first day of the month following the end of the twelve (12) month period provided for in this resolution 20221200013634 of 2022-06-09.


It is important to highlight that it is the localized gaming operator with whom the regulatory entity, Coljuegos, has a contractual relationship; In this sense, it is the operator who must carry out the management required for the delivery of the documentation with their online connection system provider. The Concessionaire Company is the one that must comply with these guidelines to send the detailed information of each MET online and in real time to the SCLM+, this being the "solely responsible" for this requirement, which will have to ensure the implementation of necessary redundant systems.


Let's hope that Coljuegos, this time, listens to the call of the industry, and that it issues a response extending the times for compliance with the resolution and carries out an exhaustive review of all the union concerns, which are of great importance for this sector to continue. providing important resources for health and the large number of jobs that are generated in the country "and it is not as usual that the employer ends up paying the piper".


Gaming Problems, Industry Wide Problems 

Coljuegos first on regulate Online gambling in South America

Problem gambling is about much more than money. What the person with a gambling problem has become addicted to is the way he feels when he gambles. A win provides a high for anyone, but for some it's very tempting to want more and more of that feeling, especially if life outside of the sportsbook, casino or online world feels like a bad place to be. Be: Life crises can often trigger a Gambling Addiction.


Many women use the absorption of slots and online games to self-medicate stress, depression and anxiety. Whatever the original trigger for gambling addiction, the nature of gambling is, of course, that sooner or later they will lose.


So it's not just the loss of money that drives the loss-chasing cycle, but the loss of the in-game absorption or high. The high is replaced by a drop in a very low mood and thus begins a cycle of craving to play more, to repeat the feeling of the high and thus escape the problems of life.

The client's expressed anger with a gambling problem often masks his embarrassment and embarrassment that her gambling has gotten out of control.


If it's not just about money, why are some customers so obsessed with demanding their money back? When unaffordable amounts of money have been spent, that is when gambling addiction becomes a matter of money.


Deep in debt, the bills are piling up and perhaps his gambling addiction remains a secret to family and partners, getting back enough money to pay the bills and cover his tracks becomes an obsession.


If we stop to think for a moment, isn't it true for all of us that we feel stronger when we're angry and more vulnerable when we're sad or scared? The anger expressed by the client with a gambling problem often covers up their embarrassment and embarrassment that their gambling has gotten out of control and also masks a deep-seated fear of facing the mess their gambling addiction has created.


Currently there are many forms of Gambling, as well as a general awareness that this problem must be addressed and supported by the Gaming industry, both regulators and operators are and must continue to be in tune to support the (as) gamblers after all is collateral damage to repair.


Is it going to be possible to silence the advertising of Sports Betting? 

Coljuegos first on regulate Online gambling in South America

One doesn't have to look far to see that sports betting is now legal in much of the country. Turn on just about any sporting event (even in states that haven't yet become legal in a post-Murphy universe), you're likely to see sports betting advertising. Of course, this isn't America's first rodeo with the ubiquity of gambling or gambling-adjacent ads. The daily fantasy sports hype blitz of 2015 stands out as probably the most prominent example.


In an episode of deja vu again, it seems the industry is going down a very similar path to the 2015 experience. Ad spending in 2015 undoubtedly contributed to daily fantasy companies facing increased scrutiny from regulators, and current sports betting spending is likely to have a similar result. The simple solution would be for everyone in the industry to tone it down, be very careful with promotions, make sure that each promotion has clear terms and is only directed at the people who should receive the information. But that seems unlikely to happen. Fines for sports betting ads are here In response to violations of state (and provincial) regulations, some states have penalized carriers for failing to comply with advertising regulations. An example would be sending promotional materials to excluded or prohibited persons.


There has been a significant disparity in the fines imposed. They range from four figures, which seems unlikely to have much of a deterrent effect, to six-figure penalties, with Ohio and Ontario apparently being the most aggressive in slapping wrists. But, at the end of the day, we keep seeing violations over and over again.


Do the fines matter?


With businesses receiving fines in all jurisdictions, the question is: do the fines have any effect? It appeared that Massachusetts was taking a close look at the behavior and penalties of companies in other jurisdictions. At the end of the day, state regulators still approved even the companies they vetted the most, if only temporarily.


Is it the same everywhere?


Stripping a license or authorization to operate is extreme. Even the UK, which has much more experience regulating sports betting and stricter regulations related to advertising, has avoided extreme punishment. While it's unclear what recommendations will come if the UK white paper detailing a suggested advertising overhaul is published, if the North American market continues on its current path, they are likely to face calls for intervention as well. The elephant in the room in sports betting advertising In the US, the First Amendment presents a challenge to regulators seeking to control sports betting advertising. But while the First Amendment might remove a blanket ban from the table, it doesn't present a blanket ban for custom restrictions.


The Supreme Court struck down restrictions on gambling advertising that went too far, but the government still has some pretty significant leeway to restrict commercial speech, as long as:

The first step is to establish that the speech is legal, the illegal speech is not protected; Advance a government interest; and, Be closely tailored to the promotion of that government interest.


How decisions are translated into states

What this translates to is a significant ability to control certain types of advertising. At the state level, regulators may have even greater authority to impose restrictions given the permissive nature of sports betting licences. We already see state regulators imposing various requirements around sports betting advertising and penalties for violations. Through the licensing process, states may have more ability to impose advertising restrictions than the federal government. While the First Amendment will mean that there likely won't be a federal ban on sports betting advertising in the future, it doesn't rule out the possibility that the federal government might try to regulate sports betting. The reality is that states could probably (without even addressing the federal issues of doing anything) much more easily come up with stricter guidelines around advertising to better protect vulnerable groups.


Alcohol and tobacco as an advertising model for sports betting?


While many in the gaming industry cringe at comparisons to the alcohol industry, and even more so to the tobacco industry, it is unlikely that lawmakers would have serious qualms about treating gambling in a similar way to how gambling is restricted. publicity, in case there is finally a legislative consensus.

Many restrictions on tobacco advertising have come about as a result of most states signing the master settlement agreement with the tobacco companies, which, as one of the terms, caused the companies to agree to significant restrictions on advertising. The Federal Trade Commission (FTC) has fairly broad power to control advertising it deems unfair or misleading, which, as former commissioner Roscoe Starek III described in 1997, “an unfair act

The ministers come and go, but the reform of the game will continue with the change. 

Coljuegos first on regulate Online gambling in South America

After six Ministers, four Secretaries of State and nearly two and half years, the long-awaited Government White Paper on future changes to betting and gaming regulations is finally to be announced. The constant delay has been frustrating for everybody, not least for the 110,000 people across the country whose jobs depend on the regulated industry and the 22.5m who enjoy a regular bet.

When the Government first launched the Gambling Review, back in December 2020, Ministers said they would take a strictly “evidence-led approach”. Recognising that parts of this sector needed to reform, the BGC was established. Fast forward to today and you see a different industry. One that has not only come together but got its act together.

With the creation of the BGC, change had been embraced, not resisted. Whilst ministers have come and gone, the BGC has announced over 80 new measures driving significant improvements on safer gambling. Whether it’s enhanced and independent funding for Research, Education and Treatment, or the ‘Whistle-to-Whistle’ ban on advertising and the huge increased take up of safer gambling tools, the regulated industry has been getting on with big change.

And of course, all of this is in marked contrast to the dangers posed by the growing unsafe and unregulated black market online. The current Secretary of State has outlined the impact the smartphone has had on the way punters like to bet, but this has not triggered an exponential rise in betting many assume. Fewer people are betting in the UK now than they were in 2019. Instead, independent figures from the regulator show participation in betting is stable, and problem gambling rates are low, and have actually been falling.

What the smartphone has enabled is unfettered access to unregulated black-market gambling online. So much so, the numbers visiting these sites tripled during the World Cup. These are rogue gambling operators that prey on problem gamblers, the vulnerable and young people”

Now I know some people don’t like betting. But in the end, it’s about freedom of choice. Millions of us enjoy a bet every month, on sports, bingo, the National Lottery or gaming - and the overwhelming majority do so perfectly safely and responsibly.

It’s also worth remembering that the industry generates £7.1bn for the economy and £4.2bn in taxes for the Exchequer, while sustaining tens of thousands of jobs. It also drives investment into the sports we love, including horseracing which receives £350m through the betting levy, sponsorship and media rights, £40m for the English Football League and its clubs, plus millions more for rugby, darts and snooker. As the economy continues to struggle, I’m confident Ministers recognise this vital contribution.

The truth is, throughout all the changes and constant delay, we have worked extremely hard and closely with the Government to help produce a wide-ranging package of reforms which builds on the significant changes and improvements made in recent years by our members.

From the start, we wanted to see balanced, proportionate and effective reforms that were genuinely evidence-led. Reforms which would further protect the vulnerable and young people, while continuing to use technology to target the 0.2 per cent of adults who are problem gamblers, whilst not (as the Secretary of State Lucy Frazer rightly says) spoiling the enjoyment of the many millions who bet perfectly safely and responsibly.

A particular focus of our work has been to secure genuinely ‘frictionless’ enhanced spending checks which further protect the vulnerable, a new Ombudsman to improve consumer redress, and overdue plans to modernise the regulation of UK casinos - all issues we at the BGC have campaigned for.

Given our previous support for enhanced and mandatory funding for Research, Education and Treatment to tackle gambling related harm, we also stand ready to deliver a new mandatory levy, as well as consult on new stake limits for online slots, welcoming in particular further protections for young people.

We also remain confident Ministers will reject key proposals from anti-gambling prohibitionists who have called for blanket, low level and intrusive affordability checks, plus bans on advertising, sports sponsorship and consumer promotions, all of which would harm our best-loved sports, threaten jobs and drive customers to the unsafe, unregulated gambling black market online.

This White Paper is a once in a generation moment for change. Its publication must draw a line under the lengthy and often polarised debates on gambling. It is evidence, not emotion, which must drive effective policy reform. That’s why going forward there will be a whole host of consultations as to how we best deliver that change.

Politicians (like me) come and go. But whatever happens over the next year or so, whatever ministerial changes or even a change of Government that could come our way, our focus will remain the business of change - driving higher standards in safer gambling, championing the businesses which support so many jobs and growth, and delivering for millions of customers who do enjoy a flutter.

Everyone wants with Brazil, almost! 

Coljuegos first on regulate Online gambling in South America

The government is finalizing an interim measure aimed at regulating and taxing companies and bettors on sports websites as one of the measures to increase revenue and sustain the objectives of the new tax framework


Taxation will form part of a PM prepared by the Ministry of Finance. The regulation of the measure involves addressing sensitive issues, such as the manipulation of betting sites on the results of soccer matches, and the easy access of children and adolescents to betting.


We went through the entire government of Jair Bolsonaro without the measure being regulated by the Ministry of Finance. The State cannot stop regulating a law approved by Congress. bets”


Based on the regulation, the government will not only tax the activity, but will start collecting money from the activity, which I think is very fair. But the government will create rules, rules so that the player feels protected by the State. Example: you are going to create advertising rules, what types of sponsorships can be made, responsible gaming rules, that is, people will be able to set limits that they can bet daily, weekly and monthly; In addition, the government may create a public policy to minimize or mitigate the social impacts that this activity will generate or may generate, which it has been generating and without any compensation.


Based on the regulation, the government will not only tax the activity, but will start collecting money from the activity, which I think is very fair. But the government will create rules, rules so that the player feels protected by the State. Example: you are going to create advertising rules, what types of sponsorships can be made, responsible gaming rules, that is, people will be able to set limits that they can bet daily, weekly and monthly; In addition, the government may create a public policy to minimize or mitigate the social impacts that this activity will generate or may generate, which it has been generating and without any compensation.


Party manipulation has existed for many years, it is observed in various countries around the world. Sports federations and bookmakers have agreements with risk companies, these companies point out exactly when there is suspicion of manipulation in that match

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