Regulation round-up 7 October 2014
The biggest regulatory news from the egaming industry in the last seven days (1 October to 7 October 2014)
GBGA unlikely to mount separate PoC tax challenge
Industry body plays down talk of legal action over 15% gross profits tax rate
The Gibraltar Betting and Gaming Association (GBGA) says it remains “entirely focused” on its judicial review of Great Britain’s new licensing framework amid reports the industry body is preparing a fresh legal challenge to its associated Point of Consumption (PoC) tax regime.
Last month London’s Royal Courts of Justice heard the GBGA’s case against the government’s new regulatory regime, which has so far seen the implementation of the framework delayed until 1 November in order to give the judge sufficient time to reach a final decision on the legality of the policy.
And it has since emerged that ahead of the court case the GBGA had sent a letter before action (LBA) to the UK Treasury in relation to its planned introduction of a 15% PoC tax from 1 December, raising the prospect of an additional legal challenge.
However, eGaming Review understands the chances of separate legal action against the tax are remote.
New Paddy Power boss targets Aus in-play changes
The newly-appointed CEO designate of Paddy Power, which owns Australian online bookmaker Sportsbet, will be backing lobbying efforts for changes to online gaming law ahead of two major sporting events taking place Down Under next year.
Andy McCue, who will replace outgoing CEO Patrick Kennedy at the Irish bookmaker on 1 January, said Australia was falling behind progressive regulatory regimes and highlighted the ban on online operators offering in-play wagering.
“One of the clear observations from the Australian market is you can’t bet in-play digitally, which is something of an oddity,” he told The Australian Financial Review Weekend.
Seven days in regulation:
Gibraltar Commissioner hits out at Gambling Commission guidance
Gibraltar Commissioner Phill Brear says he is “deeply concerned” after the Gambling Commission released an advice note last month that he claims “unambiguously states that some new licensees may be established in, and/or locate gambling equipment in jurisdictions where remote gambling services are prohibited”.
Within the note, the Gambling Commission offered reporting advice to those licensed by the Commission but located in areas where remote gambling is illegal, while an accompanying table also outlines the requirements expected of licensees based in countries where the act is prohibited.
“We shall be reminding licence holders that they cannot locate Gibraltar-licensed key equipment in territories where such activities are illegal, and they must adhere to any local money laundering obligations they are exposed to,” Brear said.
Svenska Spel “dumbfounded” by advertising report
Svenska Spel has said it is “dumbfounded” by a report published by the Swedish Gambling Authority into its advertising efforts and has called for more dialogue with the regulator.
The Lotteriinspektionen published a report last month which investigated 121 pieces of Svenska Spel marketing and found more than 60% of them to have“clearly violated” new marketing conditions published last year.
Speaking to eGaming Review, Svenska Spel spokesperson Johan Tisell challenged some of the findings of the report and said it had been difficult to receive clarification from the Authority on some of the restrictions.
GB regulator green lights poker auto-rebuy
Great Britain’s Gambling Commission (GC) has clarified its position on auto-rebuy for online poker sites within its new regulatory framework after a number of operators said they were to withdraw the function due to regulatory requirements.
PokerStars and Sky Poker are among those that have or are considering removing auto-rebuy from their UK-facing platforms citing remote technical standard (RTS) 14, which aims to ensure that poker sites are designed to minimise the risk of exploiting or encouraging problem gambling behaviour.
“Gambling products must not actively encourage customers to chase their losses, increase their stake or increase the amount they have decided to gamble, or continue to gamble after they have indicated that they wish to stop,” RTS 14 states.
New Jersey one step closer to legalising sports betting
New Jersey politicans have approved a bill seeking to repeal prohibitions on sports betting at the state’s casinos and racetracks.
The news comes just weeks after Governor Christ Christie issued a directive saying the state’s casino and racetracks would not be prosecuted for offering sportsbooks.
Bill A3711 – sponsored by Assemblyman Ralph Caputo – passed through the Assembly Tourism, Gaming and Arts Committee unanimously, with a 7-0 vote yesterday.
OPAP monopoly deemed legal by Greek court
Greece’s Council of State last week delivered a blow to foreign operators hoping to enter the Greek online gambling market after judging OPAP’s betting monopoly to be compliant with European law.
The Council of State, Greece’s highest court, rejected challenges by several egaming operators who questioned the legality of the gambling monopoly awarded to OPAP, claiming the decision violated European Union laws relating to the freedom of services.
Instead the court ruled that OPAP’s monopoly and gambling reforms were designed to combat illegal betting and criminal activities and therefore should continue to hold exclusive rights to operate gambling services.
Mr Green challenges Austrian law over £8m tax bill
Online casino operator Mr Green has initiated legal proceedings in Austria in a bid to avoid being hit with a SEK100m (£8.6m) tax bill.
The Stockholm-listed firm is contesting Austrian law implemented in 2011, which requires all online casino companies to pay a 40% tax on gross gaming revenues generated in the country.
The law applies to operators regardless of whether they hold an Austrian licence, or whether they are based in the country or elsewhere.
India poker case to resume in November
The case set to decide on the legality of poker in India has been suspended until mid-November in order to enable the government to carry out a consultation into the implications of potential regulatory reform.
The country’s Supreme Court has been tasked with passing judgment on whether card games such as poker and rummy are determined by chance and therefore constitute gambling, or are based on ‘mere skill’ and should be deemed legal.
However, following a short hearing late last week, the case has now been adjourned until 12 November while the government looks at how change to current laws would impact wider constitutional matters.
Opinion: ECJ Danish tax decision leaves unanswered questions
Last month the European Court of Justice (ECJ) dismissed the case brought against the EU Commission by a land-based casino in Denmark and the trade organisation for Danish slot machine operators (the Applicant).
The Applicant filed a complaint with the EU Commission in the fall of 2011 claiming that the huge difference in the gambling duty for online and land based gambling operation constituted state aid in violation of European Law.
However, the EU Commission reached a decision that such state aid was justified as the liberalisation of the Danish online market had subjected both national and foreign online operators to the control and supervision of the Danish authorities and served a well-defined objective of common interest.
GBGA unlikely to mount separate PoC tax challenge
Industry body plays down talk of legal action over 15% gross profits tax rate
The Gibraltar Betting and Gaming Association (GBGA) says it remains “entirely focused” on its judicial review of Great Britain’s new licensing framework amid reports the industry body is preparing a fresh legal challenge to its associated Point of Consumption (PoC) tax regime.
Last month London’s Royal Courts of Justice heard the GBGA’s case against the government’s new regulatory regime, which has so far seen the implementation of the framework delayed until 1 November in order to give the judge sufficient time to reach a final decision on the legality of the policy.
And it has since emerged that ahead of the court case the GBGA had sent a letter before action (LBA) to the UK Treasury in relation to its planned introduction of a 15% PoC tax from 1 December, raising the prospect of an additional legal challenge.
However, eGaming Review understands the chances of separate legal action against the tax are remote.
New Paddy Power boss targets Aus in-play changes
The newly-appointed CEO designate of Paddy Power, which owns Australian online bookmaker Sportsbet, will be backing lobbying efforts for changes to online gaming law ahead of two major sporting events taking place Down Under next year.
Andy McCue, who will replace outgoing CEO Patrick Kennedy at the Irish bookmaker on 1 January, said Australia was falling behind progressive regulatory regimes and highlighted the ban on online operators offering in-play wagering.
“One of the clear observations from the Australian market is you can’t bet in-play digitally, which is something of an oddity,” he told The Australian Financial Review Weekend.
Seven days in regulation:
Gibraltar Commissioner hits out at Gambling Commission guidance
Gibraltar Commissioner Phill Brear says he is “deeply concerned” after the Gambling Commission released an advice note last month that he claims “unambiguously states that some new licensees may be established in, and/or locate gambling equipment in jurisdictions where remote gambling services are prohibited”.
Within the note, the Gambling Commission offered reporting advice to those licensed by the Commission but located in areas where remote gambling is illegal, while an accompanying table also outlines the requirements expected of licensees based in countries where the act is prohibited.
“We shall be reminding licence holders that they cannot locate Gibraltar-licensed key equipment in territories where such activities are illegal, and they must adhere to any local money laundering obligations they are exposed to,” Brear said.
Svenska Spel “dumbfounded” by advertising report
Svenska Spel has said it is “dumbfounded” by a report published by the Swedish Gambling Authority into its advertising efforts and has called for more dialogue with the regulator.
The Lotteriinspektionen published a report last month which investigated 121 pieces of Svenska Spel marketing and found more than 60% of them to have“clearly violated” new marketing conditions published last year.
Speaking to eGaming Review, Svenska Spel spokesperson Johan Tisell challenged some of the findings of the report and said it had been difficult to receive clarification from the Authority on some of the restrictions.
GB regulator green lights poker auto-rebuy
Great Britain’s Gambling Commission (GC) has clarified its position on auto-rebuy for online poker sites within its new regulatory framework after a number of operators said they were to withdraw the function due to regulatory requirements.
PokerStars and Sky Poker are among those that have or are considering removing auto-rebuy from their UK-facing platforms citing remote technical standard (RTS) 14, which aims to ensure that poker sites are designed to minimise the risk of exploiting or encouraging problem gambling behaviour.
“Gambling products must not actively encourage customers to chase their losses, increase their stake or increase the amount they have decided to gamble, or continue to gamble after they have indicated that they wish to stop,” RTS 14 states.
New Jersey one step closer to legalising sports betting
New Jersey politicans have approved a bill seeking to repeal prohibitions on sports betting at the state’s casinos and racetracks.
The news comes just weeks after Governor Christ Christie issued a directive saying the state’s casino and racetracks would not be prosecuted for offering sportsbooks.
Bill A3711 – sponsored by Assemblyman Ralph Caputo – passed through the Assembly Tourism, Gaming and Arts Committee unanimously, with a 7-0 vote yesterday.
OPAP monopoly deemed legal by Greek court
Greece’s Council of State last week delivered a blow to foreign operators hoping to enter the Greek online gambling market after judging OPAP’s betting monopoly to be compliant with European law.
The Council of State, Greece’s highest court, rejected challenges by several egaming operators who questioned the legality of the gambling monopoly awarded to OPAP, claiming the decision violated European Union laws relating to the freedom of services.
Instead the court ruled that OPAP’s monopoly and gambling reforms were designed to combat illegal betting and criminal activities and therefore should continue to hold exclusive rights to operate gambling services.
Mr Green challenges Austrian law over £8m tax bill
Online casino operator Mr Green has initiated legal proceedings in Austria in a bid to avoid being hit with a SEK100m (£8.6m) tax bill.
The Stockholm-listed firm is contesting Austrian law implemented in 2011, which requires all online casino companies to pay a 40% tax on gross gaming revenues generated in the country.
The law applies to operators regardless of whether they hold an Austrian licence, or whether they are based in the country or elsewhere.
India poker case to resume in November
The case set to decide on the legality of poker in India has been suspended until mid-November in order to enable the government to carry out a consultation into the implications of potential regulatory reform.
The country’s Supreme Court has been tasked with passing judgment on whether card games such as poker and rummy are determined by chance and therefore constitute gambling, or are based on ‘mere skill’ and should be deemed legal.
However, following a short hearing late last week, the case has now been adjourned until 12 November while the government looks at how change to current laws would impact wider constitutional matters.
Opinion: ECJ Danish tax decision leaves unanswered questions
Last month the European Court of Justice (ECJ) dismissed the case brought against the EU Commission by a land-based casino in Denmark and the trade organisation for Danish slot machine operators (the Applicant).
The Applicant filed a complaint with the EU Commission in the fall of 2011 claiming that the huge difference in the gambling duty for online and land based gambling operation constituted state aid in violation of European Law.
However, the EU Commission reached a decision that such state aid was justified as the liberalisation of the Danish online market had subjected both national and foreign online operators to the control and supervision of the Danish authorities and served a well-defined objective of common interest.