GAMING1 CEO on regulators trying to “take the fun out of betting”

  • UM News
  • Posted 4 months ago
00:00 / 00:00

The state of Belgium’s gambling market has changed drastically since Emmanuel Mewissen, who is entering his 33rd year as GAMING1 CEO, last spoke to EGR in 2023.

Firstly, a Royal Decree signed into law brought about a countrywide ban on gambling advertising from July 2023 onwards, outlawing any promotion across TV, radio, cinema, magazines and newspapers. Then came the raising of the legal gambling age from 18 to 21 in September 2024, alongside a €200 weekly deposit limit for players, as well as a stipulation that customers must open separate online accounts per vertical on a given operator’s website.

Despite the new regulations, the Circus and 777 parent company has continued to thrive. In addition to ranking on EGR’s Power 50 list in 2024, GAMING1 was also named by the Top Employers Institute as one of the best employers in Belgium for a fourth consecutive year.

With new regulations comes new challenges. The black market in Belgium is pertinent as it is elsewhere across Europe. The effect as a result of politicians efforts to reduce gambling-related harm is not the correct approach, according to the CEO.

EGR: You’re approaching the 33-year mark as CEO. What do you believe has been the key element to keeping GAMING1 one of the country’s leading operators for so long?

Emmanuel Mewissen (EM): We feel GAMING1 isn’t just about gambling, it’s about entertaining – that we are a part of the entertainment industry. We want people to come to our land-based locations and have fun, and with regard to our online casino, we also have it in mind to create entertainment. We are an entertainment company, and while gambling is at the centre of that, we do more than that.

It has been a wonderful journey. I’m an entrepreneur and I’m in a team with different people who have the same minds and same spirit. Thirty-three years ago I was operating electronic gambling machines, and the digital boom came from that. I’ve seen a huge evolution when it comes to technology. While it’s very important to have experience, you need to reinvent. People will always have fun and will always bet or gamble, but you need to reinvent with a new technology.

Emmanuel Mewissen, CEO of GAMING1

EGR: How much of an adjustment were the advertising restrictions introduced in July 2023?

EM: The adjustment wasn’t just with advertising. Advertising happens in most white markets, and bans are designed to achieve one thing – to avoid people getting addicted. It’s not an addiction that is linked solely to gambling, but rather it’s to do with the fact we consume everything digitally now.

Generally speaking, while we’ve normalised e-consumption – including some excessive or problematic behaviours (such as impulsive shopping) – we tend to focus too much on gambling. Digital behaviour is a general phenomenon, not a sector-specific one. The answer the politicians came up with is to ban advertising, but the main problem they’re trying to tackle is how to take the fun out of betting.

We don’t want people to risk their lives when they bet with us, and 20 years ago it wouldn’t have been a problem. However today, because of the way we consume digitally, it’s a public health issue. The industry’s answer is to create a fun rather than an addictive product, and the first response from the politicians are playing limits, advertising bans and measures like that. So it’s nothing surprising. We need to adapt, and this is what we do.

EGR: Have the new advertising measures had any success with regard to reducing problem gambling rates in Belgium?

EM: We can clearly see that since the advertising ban came into effect, there has been a huge push from the illegal sector. [Consumers] receive an unlimited flow of advertising on social media. We want to protect the young population, but they have unlimited access to websites which don’t carry the same protection as the legal sector. We aren’t at the end of regulation as there’s still progress to be done on that level.

EGR: If the current system is struggling, what do you think is the best way to stem the flow of customers to the illegal market?

EM: We need collaboration with different stakeholders in order to adapt the legal market in the best way so it can achieve its goal – ban excessive gaming . This is a very specific category of people because you don’t want to ban someone who simply wants to have a lot of fun with gambling and can afford it.

We don’t want to interfere with the principal of freedom, but we need to protect people. If we ban these people from gambling, we can’t monitor the people we want to protect. Let’s keep the players inside the legal system and create true collaboration, finding the most appropriate way to connect with these people.

EGR: What advice would you give to other countries looking to implement an advertising ban?

EM: To ban advertising from traditional media, you must respect two rules. The first is online visibility. The legal sector should be able to advertise anywhere where the illegal sector is visible. The second is competitiveness. We need to be allowed to be as competitive as the illegal sector. Competition comes down to two factors. The first is the product itself, the second is having a competitive taxation. When taxes and regulation make legal betting costly, illegal operators with fewer constraints become more competitive and appealing.

EGR: What was the impact of raising the legal gambling age from 18 to 21?

EM: On the business itself, the impact was very low, maybe around 2%-3%. The problems arise due to the health policy challenge. I don’t see young people betting any less, which means we’re losing them to illegal websites. It’s tricky because as a father, I think it’s fine not to gamble when under the age of 21, but the reality is that it doesn’t work. I think a solution could be to allow people under 21 to gamble, but with a playing limit. In Europe, everyone’s trying to address the gambling problem rather than the digital problem. We need clear directions on how to address that issue.

EGR: How is the company progressing in markets outside of Belgium?

EM: One of the countries we operate in is the Netherlands, and the situation there is very problematic. Since they’ve implemented these new regulations, we can see today that most of the business is escaping the Netherlands. Although most of the players are still inside the legal environment, most of the money is escaping the market. I feel worried that on top of that now they even want to consider higher levels of taxation. It makes the legal market very challenging. Some firms have left already. Some more could do in the next three years.

We are really pushed in our limits as legal operators. I hope in the future the situation for operators is considered even more. We face huge penalties with huge responsibility, and that’s fine because we need to be responsible for our action. I’m positive for the future because the Dutch regulator is working hard. At the end, I want to believe we will have a system where the legal sector can be efficient and keep the players inside the legal environment, but it’s hard.

In Spain, they’re discussing new rules so let’s see what will happen. In Portugal, maybe the fight against illegal operators is not effective enough.Again, I think regulators must talk to each other, which I believe they do, and we need, at the end, some European guidance on the digital consumption to help create a safe environment for everyone.

EGR: Last time you spoke to EGR, you described the US as the “cherry on the cake”. But the deal with Delaware North has since come to a close. What is the thinking in the market?

EM: We took the decision, and I believe it’s the right decision, to focus on our core market which is Western Europe. When we’re ready, maybe we can have a fresh look at some new markets, but for now we have to focus on our technology and our core market.

The post GAMING1 CEO on regulators trying to “take the fun out of betting” first appeared on EGR Intel.

 Emmanuel Mewissen discusses how the Circus and 777 parent company has adapted to a series of significant changes to Belgium’s gambling market
The post GAMING1 CEO on regulators trying to “take the fun out of betting” first appeared on EGR Intel. 

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