Regulation round-up 1 April 2014
The biggest regulatory news from the egaming industry in the last seven days (26 March to 1 April 2014)
William Hill withdraws from grey markets
The Gibraltar-licensed bookmaker pulls out of more than 50 markets including South Africa and Thailand for “regulatory reasons”
UK operator William Hill is to cease taking bets from customers located in more than 50 countries due to “regulatory reasons”, according to an email seen by eGaming Review.
The mail, which was sent to affiliates of the Gibraltar-licensed company, said customers from the countries would no longer be able to register or place a bet on any of its products for reasons “beyond [its] control”.
A spokesperson from William Hill confirmed the operator would no longer take customers from a number of predominately African and Asian countries such as South Africa and Thailand but declined to make any further comment.
However, an industry source told eGR today that the decision to stop accepting bets in these countries was likely influenced by the increased regulatory oversight into the geographical scope of operators’ activities in ‘grey’ markets.
Concerns grow over UK grey market revenue declaration
Operators applying for a licence from the UK Gambling Commission this year face an anxious wait for details concerning the requirement to disclose any market where more than 3% of revenues are derived and to prove they are doing so legally.
Given the ambiguous nature of many countries’ online gambling regulation, the requirements “ outlined in a response to a question posed following the issue of recent guidelines “ have caused concern within the industry over how strictly they will be applied.
According to the response, applicants must provide details of markets where they accepts players and that account for 3% or more of total revenue.
Seven days in regulation:
Gibraltar operators to press ahead with UK legal challenge
The UK government’s decision to implement a Point of Consumption (PoC) regulatory model could be set for a challenge in the courts as eGaming Review understands the Gibraltar Betting and Gaming Association (GBGA) is to make good on its threat to launch a judicial review.
The GBGA, which represents the interests of more than 20 Gibraltar-based online gaming operators, is steadfast in its opposition to a framework which will see the UK Gambling Commission regulate UK-facing operators and suppliers from across the globe.
The Gambling Bill is set to become law in the coming days, with the UK government set to introduce a 15% tax on all remote gaming gross profits in December, and this final approval is expected to trigger the GBGA’s legal process.
Third of Spanish gamblers use unregulated sites
A substantial portion of online gambling revenues in Spain are being lost to offshore operators as more than a third of players opt to use unregulated dot.com sites, a study by eGR Insights has found.
The Online Gaming Survey (Spain), based on 1,000 online interviews undertaken in early 2014, revealed that poker players are the most likely to play on unregulated sites with 41% of respondents saying they do so.
Sports betting is the next most likely gambling vertical to see unregulated play with 37% of customers saying they play on non-dot.es sportsbook sites, closely followed by online casino with 36% of dot.com play.
UK supplier condition delayed until 2015
The UK Gambling Commission’s has put on hold the requirement that operators must only use software suppliers licensed by the regulator until January 2015.
Software suppliers to UK-facing companies are obliged to obtain a licence from the regulator at the same time as operators later this year as part of the Gambling Bill, which is currently making its way through parliament.
One of the licence conditions for operators will be to ensure that all software is provided by suppliers in receipt of a licence from the Gambling Commission however this requirement has now been put back until January 2015 to allow both suppliers and operators more time to adjust to the new regulatory regime.
Poll: Is 2014 the year California finally legalises online poker?
Operators with an eye on the US online gambling space have long held out hope of permissive regulation in California, and recent activity suggests 2014 could finally be the year progress towards a $1bn market is finally made.
The past few months have seen the state’s most influential tribes collaborate over online poker legislation, having spent recent years fighting over if and how the state should regulate the product.
Currently there are two bills in play, the Pechanga-backed AB2291 and SB1366, sponsored by Senator Lou Correa and backed by a coalition of 12 tribes. The bills differ in language over license fees, compacts and tax rates, but many believe a streamlined bill agreed by all parties is on its way.
UK government votes through offshore racing levy
The UK government has rubber-stamped an amendment to the Gambling Bill which will see offshore operators required to pour around £20m of their UK-derived horse racing profits back into the sport.
The amendment, which was confirmed in the House of Commons during the Bill’s ‘ping-pong’ stage, comes a week after chancellor George Osborne set out the government’s intention to boost the cash available to the Horse Betting Levy Board (HBLB).
At present, offshore operators are exempt from paying the current 10.75% levy on profits gained via the offer of UK horse racing, but this is set to change from 2016, pending final clearance from the European Commission (EC).
PokerStars hits back at California tribes
PokerStars has hit back at the California tribes which last week said it should not be granted an internet poker licence in the state if and when the product is legalised, claiming the licensing decision should be down to the state regulator.
The California Tribal Business Alliance and a coalition of 12 tribes last week urged the state legislature to prevent post-Unlawful Internet Gaming Enforcement Act (UIGEA) operators such as PokerStars from obtaining an online poker licence.
PokerStars, along with Full Tilt and Absolute Poker, was one of the operators which continued to operate in the US post-UIGEA. However in 2012 it paid a US$731m settlement fee with the US Department of Justice in 2012 and admitted to no wrongdoing.
Spain to introduce TV advertising watershed
Spain’s gambling regulatory body is in the process of drafting a set of advertising and player protection regulations which will result in the implementation of a TV advertising watershed, eGaming Review can reveal.
At present, Spain-facing operators are not subject to any compulsory advertising restrictions; however, the vast majority of companies are signed up to a self-regulated code of conduct which offers guidelines on acceptable advertising practices.
The code of conduct, which is overseen by Spanish advertising watchdog Autocontrol, doesn’t permit gambling-related TV advertisements during the hours outside of 22:00 “ 06:00, with the exception of sports betting around televised sporting events.
Poll results: New UK framework will stir black market
The size of the UK’s black market will increase as a consequence of the changes to the country’s remote betting tax and regulatory model, according to the results of last week’s eGaming Review poll.
With the Gambling Bill expected to be passed into law next week, UK-facing operators and software suppliers will be required to obtain a licence from the UK Gambling Commission this summer and also pay a 15% levy on UK-derived profits from 1 December.
And more than three quarters (79%) of respondents said they expected the number of rogue operators to increase by varying amounts once these changes come into force.