Regulation round-up 19 August 2014
The biggest regulatory news from the egaming industry in the last seven days (13 August to 19 August 2014)
GB licensing regime set for court showdown
Gambling Commission and Department for Culture Media and Sport served with legal proceedings over “unlawful” Gambling Bill by GBGA as licensing row heats up
The Gibraltar Betting and Gaming Association’s attempts to prevent Great Britain from adopting a Point of Consumption (PoC) regulatory model look set to be decided by the courts after the industry body filed for a judicial review of the proposed regime late last week, eGaming Review can reveal.
The Gambling Commission and the Secretary of State for Culture, Media and Sport (DCMS), Sajid Javid, have both been served with legal proceedings and a hearing to decide the framework’s fate is likely to take place in October or November.
The move comes after the GBGA wrote to both the Commission and the DCMS in June to demand they review the planned framework or face legal action and, with no review forthcoming, the GBGA has now made good on its threat with a legal team comprising law firm Olswang and barristers Blackstone Chambers.
According to the official legal document, seen by eGR, the GBGA has asked that the courts declare the new licensing regime “unlawful”, “disproportionate” and a “restriction on the freedom to provide services” as guaranteed by Article 56 of the Treaty on the Functioning of the European Union.
Bet365 sued in Australia over free bet offer
Bet365 is facing legal action in Australia after the country’s competition regulator accused it of misleading customers with a free bet offer which meant they had to gamble AU$1,200 before they could withdraw.
The Australian Competition and Consumer Commission (ACCC) claimed the operator did not display the terms and conditions attached to historical ‘free bet’ and ‘deposit bonus’ offers clearly enough and is taking legal action in the Federal Court.
Specifically, the watchdog said bet365 misled customers over the requirement to turnover any winnings associated with the offer three times within 90 days before being able to withdraw, and that they had to bet on “higher risk transactions”.
Seven days in regulation:
Bookies set to insert betting terms into trader contracts
Great Britain’s Gambling Commission has asked bookmakers to amend their employment terms and conditions so that traders can no longer use “commercial intelligence” for their own personal gain.
Last month the Commission wrote to various industry bodies, including the Remote Gaming Association (RGA) and the Association of British Bookmakers (ABB), to suggest that employee conditions are reviewed in order to reduce the threat of future betting coups.
Speaking to eGR, RGA chief executive Clive Hawkswood said he “appreciated the concern” raised and would be discussing the issue with the Commission in the future.
Sweden needs a plan B, says regulator
Sweden needs to incorporate a ‘plan B’ into its online gaming regulation strategy in the event planned legislation fails, the country’s regulator has said.
The Swedish Gambling Authority (Lotteriinspektionen) previously revealed it had been looking at adopting a Danish-style licensing structure later this year, however unresolved infringement proceedings against the country launched by the European Commission have delayed proceedings.
Plans may also be delayed by the country’s general election next month, however HÃ¥kan Hallstedt, director-general of the regulator, said that the “uncomfortable” proceedings have increased the need for a back-up plan should current efforts fail.
Trio of operators hit by “misleading” advertising rulings
888Sport, Betfred and Sky Vegas have all had adverts censured by the Advertising Standards Authority (ASA) this week as issues over misleading advertising continue to cause problems for operators.
One complainant said an ad on the 888Sport website misleadingly omitted a significant condition attached to an offer where enhanced odds applied only to the first £10 of any stake.
The advert “Arsenal to win in 90 minutes 3/1” had a “BET NOW” button underneath and the terms and conditions at the foot of the page.
Poll results: US egaming market needs California to boost appeal
The US is not an attractive market to enter without California legalising and regulating online poker, according to respondents in last week’s eGR poll.
Following state Senator Lou Correa’s decision to pull online poker bill SB1366, killing any chance of progress this year, we asked whether the US market currently offers enough of an opportunity to European operators.
A firm 42% of respondents said that without the Golden State going live with regulated online poker the US market, with just Nevada, Delaware and New Jersey up and running, is just too small to be interesting.