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Undercover Audits Reflect Enhanced Regulatory Oversight In Betting

Stepped-Up Regulatory Enforcement

The National Betting Authority (NBA) has launched a series of undercover audits as part of a rigorous initiative to ensure strict adherence to betting regulations. Utilizing 150 covert agents recruited from the private sector, the NBA’s proactive approach involves unannounced visits to betting establishments, where operatives pose as customers to observe compliance with legal standards.

Ensuring Compliance on Multiple Fronts

During these operations, undercover agents focus on monitoring staff behavior, detecting any facilitation of unauthorized bets, and verifying that betting venues strictly prohibit the presence of minors. In parallel with these covert checks, NBA field officers undertake direct site inspections, continuously monitor online betting platforms, and scrutinize transactions for potential money-laundering activities. This multi-layered approach underscores the Authority’s commitment to enforcing the law comprehensively.

Financial Implications and Revenue Growth

In a recent House Finance Committee meeting, an NBA representative disclosed that fines totaling €46,000 were imposed over the past year. Of these fines, €26,000 stemmed from breaches related to licensing requirements, while the remaining penalties addressed issues such as the involvement of minors and other infractions. Simultaneously, data presented to parliament highlighted that nearly €1.3 billion in bets were placed last year, with winnings reaching €1.17 billion. An increase in the betting tax has significantly boosted state revenue from betting, soaring from €3.2 million to €6 million year over year.

Future Projections and Legislative Developments

Looking ahead, projected revenue from betting activity is set to rise to €71.85 million this year—a 28.03% increase over 2025—before reaching €75.27 million in 2027 and €78.59 million in 2028. Detailed forecasts breakdown future collections into €53 million from betting tax, €8.2 million from licence fees, and €10 million from betting activity contributions. The regulatory framework distinguishes between Class A and Class B licence holders, taxing their net betting earnings at 10%, with the former covering land-based venues and the latter online platforms.

New Initiatives in Regulatory Policy

Amid these developments, a draft bill pending at the Ministry of Finance for approximately one year promises to introduce new products and services while incorporating enhanced safeguards for responsible gaming and the protection of minors. Notably, ministry representatives confirmed that there are no plans to introduce online casino games under the current agenda. Additional provisions also include revised contractual terms for operators like Opap Cyprus, addressing gross profits, licence fees, and supervisory contributions.

Overall, this comprehensive enforcement initiative, combined with evolving legislative frameworks, signals a clear message: the regulatory environment for betting is tightening, reflecting a concerted effort to balance industry innovation with consumer and societal protections.

Copyright Law Struggles To Keep Up With AI Training

Courts Are Still Applying Old Copyright Rules To AI

AI companies train models on enormous amounts of published material, including books, articles and academic research. Whether using that content without authors’ permission violates copyright law remains unresolved.

Much of the debate centres on fair use, which allows copyrighted material to be used without permission in certain circumstances. Courts consider factors such as the purpose of the use, how much material was involved and its impact on the original market.

Anthropic Case Sets An Important Precedent

A major case involving Anthropic and a group of authors provided one of the clearest rulings so far. Judge William Alsup found that using copyrighted books to train AI models was lawful, comparing the process to people reading and studying literature before creating something new.

Anthropic was nevertheless ordered to pay $1.5 billion in a settlement. The penalty concerned books the company had obtained from illegal online libraries rather than the AI training itself.

For AI companies, that distinction could prove significant because it separates studying copyrighted material from directly copying it.

Competition Could Be The Key Issue

A case involving Thomson Reuters and Ross Intelligence offers a different perspective. A court ruled that Ross could not claim fair use after using Reuters’ copyrighted material to develop a competing AI-powered legal research platform.

The decision suggests courts may be less willing to consider AI training fair use when copyrighted content is used to build a product that directly competes with the original.

For authors, an unresolved question is whether AI-generated content should be considered competition for the works used to train these models.

The Law Has Yet To Catch Up

US copyright law predates generative AI by decades, leaving courts to apply old principles to new technology. Questions also remain over copyright protection for AI-generated works. In Thaler v. Perlmutter, a court ruled that material created entirely by AI cannot receive copyright protection.

Major AI companies remain involved in copyright litigation, and different courts could reach different conclusions. For now, there is no universal rule: the legality of AI training will depend on the circumstances of each case and how courts ultimately interpret copyright and fair use.

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