Regulation round-up 29 October 2013
The biggest regulatory news from the egaming industry in the last seven days (23 October to 29 October 2013)
Gambling Commission investigates ‘free bet’ advertising
Further consultation planned ahead of possible guideline publication as 91% of complaints upheld or partly upheld
The UK Gambling Commission is to investigate ‘free bet’ offers and said it could issue its own guidelines after revealing 91% of complaints to the Advertising Standards Authority (ASA) were upheld over the past four years.
Advertisements offering free bets or spins as a sign-up or deposit bonus have come under increasing scrutiny, with the ASA upholding or partially upholding a total of 53 of 58 complaints made since 2008.
A number of operators including bet365, Betfair and Sky Bet have fallen foul of the ASA in recent months with the independent body highlighting problems such as cash-out restrictions and terms and conditions being too many clicks away.
A consultation is currently underway to discuss changes to the Licensing Constitutions and Codes of Practice, with the award of ‘free’ bets identified as a particular area in need of additional work.
Gibraltar chief minister rules out PoC legal action
Gibraltar’s chief minister Fabian Picardo has ruled out taking legal action against the UK in over the point of consumption (PoC) tax proposals which he says will push customers away from those licensed in the British Overseas Territory.
Picardo urged delegates at a briefing hosted by the Gibraltar government to work alongside Gibraltar rather than against it in order to combat that threat, adding that discussions with the UK Treasury over the bill were ongoing.
Picardo warned that the UK Treasury’s proposed bill, which received its first reading in August, risked pushing customers towards black market operators, who would be able to offer more competitive odds. The legislation proposes a 15% tax on remote gaming revenues derived from UK customers.
Seven days in regulation:
Bulgaria mulls GGR tax switch
The Bulgarian government could be set to amend its online gambling tax regime within the next two weeks in an effort to attract foreign operators into the country.
The chairman of the State Commission on Gambling, Mr Ognemir Mitev, and the chairperson of the Budget and Finance Committee Yordan Tzonev, have both recently revealed discussions regarding a move to a tax regime based on gross gambling revenue (GGR) are underway. The country currently operates a 15% tax on total turnover.
“The present taxation regime on internet gambling needs to be liberalised in a way that will attract foreign registered operators to register themselves in Bulgaria and pay their taxes here,” Tzonev said.
Malta and Alderney regulators sign MoU
Malta’s Lotteries and Gaming Authority (LGA) and the Alderney Gambling Control Commission (AGCC) have entered into a bilateral Memorandum of Understanding (MoU) to enhance information sharing and provide investigative assistance.
The MoU was signed by the two regulatory bodies on 9 October by LGA chairman Mario Galea and AGCC chief executive André Wilsenach, who believes it will rectify common interests shared by the two jurisdictions.
“The MOU is an important step in the development and sharing of common regulatory best practices, including employee exchange programmes, common certification standards and other practical and operative arrangements to reflect technological and other developments in the area, which should benefit operators in both jurisdictions,” he said.
Mr Green latest to be added to Bulgaria
Bulgaria’s State Gambling Commission has added a further ten domains to its blacklist of illegal operators, including Swedish online casino Mr Green.
The recently added group also comprise sites owned by a number of Belgian operators including Casino Belgium and 36Win.
The blacklist, which was created after the Bulgarian parliament handed the Commission power to order internet service providers to block unlicensed sites, now comprises around 160 domains.
Manx gambling duty to be implemented in January
The Isle of Man government has announced a new duty on certain types of gambling activity will come into force on 1 January 2014.
The Gambling Duty Act 2012, which received Royal Assent last October, will replace the general betting duty, pool betting duty and online gambling duty next year if approved by the local parliament Tynwald in November.
The Act will see operators offering online gambling and betting pay 1.5% of their gambling yield on the first £20m per annum, 0.5% on the next £20m and 0.1% on any amount in excess of the first £40m. Pool betting operators will be liable to a single duty-rate of 15%.
Caesars hits back at Massachusetts regulator
Caesars Entertainment has hit back at the Massachusetts Gaming Commission (MGC) following a report on the operator’s suitability for a casino license in the US state.
A spokesman for Caesars said the MGC was attempting set standards of suitability that are “arbitrary, unreasonable, and inconsistent” with those enforced in other US gaming jurisdictions.
News of Caesars’ troubled casino license application, under which it planned to partner with Suffolk Downs and build a US$1bn resort casino at the racetrack, emerged earlier this week. Caesars has since withdrawn from the partnership.
Delaware to launch online gambling this week
Delaware Lottery director Vernon Kirk has confirmed history will be made in the state this week when regulated online gambling goes live on 31 October.
The state will become the first to offer legal online casino games, not just poker as in Nevada, ahead of New Jersey which is due to launch egaming on 26 November following a five-day trial period.
Delaware was the first US state to pass law regulating a full suite of online gambling in June 2012, when Governor Jack Markell signed the Delaware Competitive Act of 2012 into law.