Regulators tighten the net as taxes climb and new markets take shape.

Governments are weighing higher taxes, launching new licensing frameworks, and increasing pressure on gray-market operators as the global industry continues to expand. At the same time, enforcement scrutiny and shifting operator strategies highlight a rapidly evolving regulatory landscape.

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

Tax Issues

• South Africa proposes 20% tax on online gambling gross revenue
  
  The National Treasury's new levy aims to curb harm but risks driving players to illegal operators, according to the Free Market Foundation, in Africa's growing iGaming sector.

• US House GOP blocks Rep. Titus’ latest amendment to restore full gambling loss deductions
  
  House Republican leaders prevented the attempt to repeal the 90% cap on gambling losses for 2026 tax filings, leaving bettors facing potential “phantom income” taxation on net losses in North America.

Legislative Hikes

• Virginia House and Senate pass competing iGaming and gambling bills, sending them to conference
  
  Virginia lawmakers advance competing iGaming and gambling bills, sending several key proposals to conference committee negotiations amid ongoing session.

• New Zealand to begin iGaming licensing process in July 2026
  
  The government has released details on the new licensing regime, capping offshore operators at 15 and introducing stricter rules for the Pacific region's online market.

• Brazil President Lula calls for legislative action against online casinos citing family financial harm
  
  President Luiz Inácio Lula da Silva urged legislation to prohibit online casino games, highlighting addiction risks in Latin America's regulated market.

Enforcement and Compliance

• Baltimore sues sweepstakes casino operators over alleged illegal gambling platforms
  
  The city alleges operators like Chumba Casino and Luckyland Slots are violating state gambling laws, seeking injunctions and penalties in North America.

• Major tech AI chatbots found advising on unlicensed casino access in the UK
  
  Chatbots from OpenAI, Google, and Microsoft are providing guidance on accessing illegal sites, raising compliance concerns in Europe's regulated markets.

Emerging Markets

• PrizePicks to exit Canada by April 3 as it shifts focus to U.S. expansion
  
  The DFS operator's withdrawal aligns with strategic shifts toward regulated North American markets, reflecting broader trends in global iGaming consolidation.

• Better Markets says prediction market platforms amount to nationwide unregulated gambling
  
  The watchdog group criticizes platforms like Kalshi for bypassing state laws, influencing debates on emerging event-contract markets worldwide.

• ClickSpin Media: Why traffic quality matters more than traffic volume in iGaming
  
  The affiliate firm's insights emphasize quality leads for sustainable growth in global emerging markets like Latin America and Asia.

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