Regulation round-up 15 July 2014
The biggest regulatory news from the egaming industry in the last seven days (9 July to 15 July 2014)
GB regulator concedes on advertising policy
Gambling Commission admits argument can be made for unlicensed operators to advertise in Great Britain
The Gambling Commission’s attempts to prevent unlicensed foreign operators from advertising in Great Britain appear to have come unstuck after the regulator admitted its policy was legally “arguable”.
In a recent update to its licence conditions and codes of practice, the Commission outlined its intention to allow only holders of a British operating licence to advertise within the market while it has also ruled out the possibility of granting ‘advertising only’ licences.
However, its ability to enforce such a policy has been called into question with the Commission’s jurisdiction limited to operators that offer services to customers in Great Britain.
And it now appears overseas operators using globally televised British sporting events to promote their products to foreign markets could potentially continue to do so providing their products aren’t available to customers in Great Britain.
New Brazilian gambling legislation introduced
A regulated Brazilian online gambling market inched closer last week after legislation seeking to legalise online sports betting, casino and bingo was presented to the country’s senate.
The Bill proposes to regulate almost all forms of gambling in order to closely monitor and tax online gambling activities, and allow companies to apply for a licence to operate.
Under the Bill licence applicants would have to demonstrate technical capacity, tax compliance and financial probity, with illegal operators facing fines and custodial sentences of up to one year.
Seven days in regulation:
Netherlands settles on 20% egaming tax rate
The Dutch Council of Ministers have confirmed operators wishing to enter a regulated online market will have to pay a 20% tax on profits after its members finally settled a disagreement which was threatening to delay regulatory progress.
In a meeting held Friday, the final day before parliamentary summer recess, the country’s ruling coalition settled a dispute which saw the Social Democratic party pushing for a tax rate of 29%, comparative to the rate paid by the land-based industry.
However, it appears a consensus has been reached whereby operators will pay an initial 20% levy on gross gaming revenues plus an additional contribution of between 0.5% and 1.5% towards a fund aimed at preventing gambling addiction.
Argentina prepares new federal online gaming framework
Argentina’s Board of the Association of Lotteries and Casinos (ALEA) is preparing a proposal for a federal framework for online gambling to replace the current, province-regulated market.
Under the current system, Argentina’s 23 provinces and the capital Buenos Aires reserve the right to regulate forms of gambling on a provincial basis, which has resulted in inconsistent regulation and a large unregulated market.
The new proposals, discussed at a recent ALEA meeting, would see the creation of a federal framework for all online games and bring the country’s online gambling regulation under one authority.
Greek authorities order ISP blocking of 23 gambling domains
Greek authorities have ordered internet service providers in the country to block access to a number of gambling domains in a bid to protect OPAP’s contentious online monopoly.
Last Friday the Greek police’s electronic crime division issued a notice confirming that it had requested the ISP blocking of 23 online gambling domains that it suspected of operating in the country without a licence.
While the names of the 23 domains are currently unclear, eGaming Review understands that they belong to operators who were not granted an interim licence from the Greek Gambling Commission and featured on the regulator’s blacklist in February this year.
Operators welcome EC consumer protection measures
New measures designed to raise consumer protection standards in the online gambling industry across Europe have been welcomed by operators.
The recommendations published yesterday follow the publication of the EC’s Action Plan for online gambling in 2012 and primarily aim to ensuring that egaming “remains a source of entertainment” and that minors are prevented from gambling.
They include several on the topic of event sponsorship by operators, including that no sponsorship aimed at minors should be permitted, as well as recommendations around self-exclusion, player identification, marketing and customer support.