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Should Crash Games Be Regulated in Portugal?
By Shane Addinall May 29, 2022 IndustryPortugal’s regulatory body minimised thought risks attached to crash games by introducing related laws. Once it comes into effect, other gambling jurisdictions from the continent may follow suit.Portugal is a month away from launching detailed regulations on crash-type games. As announced by the country’s Gambling Inspectorate, SRIJ2, in November last year, the increasingly popular genre will have set out rules, and operators may only offer crash games if the regulator approves it. SRIJ submitted a draft bill for consultation on 19 May 2022.
Once approved, the regulatory framework will be the first of its kind in Europe, and Portugal will become the pioneer in governing these types of games. Crash games involve multipliers that increase on a visible curve, and players must cash out before the multiplier crashes.
The Fastest-Growing Genre
The multiplier games caught the attention of modern gamblers with the crash mechanic that originated from a Bitcoin game. Since it first appeared in the igaming market, crash games have become all the rage and are currently the fastest-growing genre of instant games in online casinos. Certain developers focus solely on this genre, thanks to the substantial demand for it.
Crash games start on a line with a 0.01x multiplier which increases along the curve of the line. In rare cases, players could win x1,000 their stake if they have nerves of steel and a lot of luck. However, the SRIJ feels this type of game presents a risk for compulsive gamblers. The Portuguese regulator seeks to minimise the risks involved.
Many compare crash games to stock-market trades, as it presents gamblers with a similar look, and the payout structure can be as volatile as stock trades are. The crash mechanic runs on RNG-based technology, like video slots, and the multiplier can crash immediately.
Approval and Governance for Crash Games
The Portuguese inspectorate motioned for game-specific rules based on the rise in popularity and concerns relating to responsible gambling. The draft regulations include definitions and 49 detailed technical rules. SRIJ approved the draft, and now stakeholders may submit any contributions as the bill is available for consultation for 30 working days from submission.
The SRIJ proposes that operators must gain special permission from the regulator to supply the new genre of gambling games. Crash games must comply with the set out technical rules before receiving approval. The 49 requirements include bet limits, maximum multipliers, and automatic cash-out features.
Among other things, the regulator specifies that wager limits may not exceed 100x the minimum bet. The rules specify all multipliers must start at x1 and that games must allow players to cash out immediately to minimise their risk. Portugal’s regulator approved that the games may not have multipliers that exceed x100, nor may players bet more than twice in one round.
Once the regulations come into effect, all crash games available in Portugal will have an automatic cash-out feature. This allows players to set predetermined odds where the game automatically cashes out. However, players may manually cash out before this.
The SRIJ also stipulates a minimum theoretical return to the player of 80% for any approved crash game.
SRIJ Hard at Work
This is one of several new regulations set in place by the Portuguese inspectorate in the last few months. Earlier in 2020, it motioned to ban live betting in the country and talks of restricting gambling ads linger in the region.
Portugal is the first European nation to create clear guidelines on the crash genre, and players will soon be able to enjoy safe gambling on approved versions. software providers and casino operators may apply for approval at the SRIJ.
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