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One concern for operators is “the short duration of licences and renewal of licences”, notes Leckert. For operators, the casino business licence is renewable every three years, while the IR development-plan authorisation runs for 10 years, in contrast to the 18-year IR licence term in the Philippines, for instance.
Limiting the duration of licence validity “puts the entire capital investment at risk”, says Klebanow. Further regulations, including limiting residents to 10 visits per month and requiring them to present a ‘My Number Card’ when gambling, further erodes project viability. “Ultimately, casino developers individually concluded that developing an IR was too risky, and they took their billions of dollars in potential capital investment and walked away,” observes Klebanow.
Online betting on sports in Japan is in general is not permitted, with the exception of four sports – horse racing, bicycle racing (keirin), motorboat racing and motorcycle racing – each rigidly controlled and regulated directly by the government or government-affiliated public corporations.
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“I’m trying to address every stage: prevention, support for people who are already struggling, and then action against the illegal sites.”
He does not believe illegal gambling can simply be eliminated. But he believes it can be made harder to operate. That may be the more realistic role for companies such as Trace2Trace as the illegal market evolves: not replacing regulators or enforcement agencies, but providing the intelligence needed to see beyond the individual URL. For Madsen, the motivation remains deeply personal: “I know very well what gambling addiction can do to people.”
The emergence of his company along with a string of others reflects a growing need in the industry: as illegal operators become more adept at moving, cloning and disguising their online presence, enforcement may increasingly depend on understanding the deep workings of the networks behind the screen.
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Midnite’s operator, Dribble Media Ltd, stated that the ad had not been authorised by their company. They cited discrepancies in branding and asserted that it was created and disseminated by an affiliate, Limay Media Ltd, without Midnite’s approval.
Midnite confirmed it had terminated its contract with Limay and would reinforce compliance reminders to its partners.
Limay Media acknowledged that the person depicted was an AI-generated fictional character rather than a real individual and claimed the design was intended to appear as an adult.
