Taxes tighten, regulation blurs, and prediction markets push the boundaries.

This week’s roundup tracks how fiscal pressure, legislative uncertainty, and enforcement gaps are reshaping gambling markets worldwide. From tax-driven market exits and aggressive revenue plays to intensifying debates around prediction markets and cross-border compliance, the balance between innovation, control, and growth is being tested across mature and emerging regions alike.

Let’s dive into this week’s Regulation Roundup!

Tax Issues

• UK tax hikes trigger LiveScore Bet's exit from Bulgarian market
  
  LiveScore Bet has withdrawn from Bulgaria after just ten months, citing the cascading effects of the UK's 40% gambling tax increase as a key factor in strategic market consolidation across Europe.

• Turkey surpasses 2024 gambling tax revenue with 50B lira in 2025
  
  Turkey's aggressive tax policies and enforcement against illegal markets have driven record gambling tax collections exceeding 50 billion lira for 2025, highlighting rapid fiscal growth in the region.

• Eastern Europe's tax reforms balance revenue and player safeguards
  
  Bulgaria, Slovakia, and Czechia have implemented 2025 tax adjustments, including Slovakia's proposed 30% harmonized rate and Czechia's protective measures, to adapt to digital gambling shifts.

• Trump's tax bill poised to favor blockchain prediction markets over traditional bets
  
  Coinbase highlights how proposed U.S. tax changes could accelerate blockchain-based prediction markets by offering better tax treatment compared to conventional gambling activities.

Legislative Hikes

• Republicans resist rollback of gambling loss deductions in tax overhaul
  
  Senate GOP maintains the 90% cap on gambling loss deductions, prioritizing fiscal measures despite industry pushback on prediction markets' tax treatment.

• Prediction markets exploit regulatory loopholes to evade gambling laws
  
  Operators are leveraging p2p futures contract classifications to position prediction markets outside traditional gambling regulations, potentially facing future legislative scrutiny worldwide.

• Coinbase challenges state gambling regulations for prediction markets
  
  Coinbase is pushing back against state-level gambling laws, arguing that prediction markets should be exempt to promote innovation and economic opportunities under federal oversight.

• Debate intensifies over prediction markets' classification as investments
  
  Critics argue that prediction markets are essentially gambling disguised as financial instruments, calling for updated legislation to address tax advantages and regulatory gaps.

Enforcement and Compliance

• LA authorities dismantle illegal gambling operations in major sweep
  
  A coast-to-coast enforcement action in Los Angeles resulted in 130 detentions and the shutdown of unlicensed casitas, signaling intensified crackdowns on illicit gambling amid legal market growth.

• FBI renews enforcement against offshore gambling with limited impact
  
  U.S. authorities emphasize offshore gambling threats, but gray markets persist, leaving operators largely unaffected due to inconsistent enforcement strategies.

• Myanmar seeks international aid for illegal gambling suspect repatriation
  
  Myanmar's government calls for global cooperation to repatriate foreigners involved in online gambling scams, underscoring cross-border enforcement challenges in Asia.

Emerging Markets

• AI-driven hyper-personalization reshapes iGaming in emerging regions
  
  In markets like Asia and Africa, hyper-personalization emerges as the 2025 trend, overtaking AI hype to redefine player engagement and market expansion.

• Brazil's prediction markets trend signals regulatory evolution in Latin America
  
  Experts predict a 2026 reality check for Brazil's booming prediction markets, as explosive growth prompts discussions on balancing innovation with regulatory oversight.

• Ontario advances casino integration in Niagara tourism strategy
  
  Billion-dollar investments aim to expand casinos in Niagara Falls, combining gaming with hospitality to drive economic growth in Canada's emerging entertainment hubs.

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