Exclusive: Serbian operators protest Sportingbet-Lottery deal
Sportingbet.rs launch described as "completely unlawful and illegal" " association criticises decision to select foreign partner over Serbian company.
The Serbian Association of Gambling Providers (UPIS) has reacted angrily to a partnership between Sportingbet and the country’s national lottery Državna lutrija Srbije, accusing the lottery of “organising sports betting via the Internet in a completely unlawful and illegal way.”
In an open letter, the association criticised the Lottery for having “grossly violated existing laws” by selecting Sportingbet to power its dot.rs sportsbook, which was launched last week with the operator’s branding, described as being “powered by Državna lutrija Srbije.”
However, eGaming Review understands that the pre-match and in-play betting platform is provided by Sportingbet using the Lottery’s operating licence, via a partnership with the operator’s Greek and Balkan marketing partner Centric Multimedia. Playtech provides the software for all non-sportsbook products on the site, including lotto, bingo and scratchcard games.
The controversy has arisen due to the fact that while Serbia’s parliament passed egaming legislation in November last year “ under which successful applicants would be awarded 10-year operating licences, with tax set at 5% of gross gaming yield “ it has yet to draw up technical regulations or officially open the licensing process.
UPIS also complained about the lack of transparency in selecting Sportingbet as the Lottery’s partner, describing the process as being “established without tender and without any public scrutiny of the conditions that are required. Domestic companies were not given the slightest chance to participate, although they have great international references.”
The association went on to say that the decision to select a foreign operator as a partner would “contribute to an additional outflow of money and unnecessary loss of jobs in Serbia.“ The country is currently in the midst of a financial crisis, which has seen four-day weeks sporadically introduced in order to conserve electricity.
However, Thomas Smallwood of gambling marketing agency eGaming Consulting told eGR that the partnership could be seen as a positive move if it is a step towards officially opening the market: “I think [the partnership] will be welcomed by local and foreign operators if it is a first step towards opening up a regulated market in Serbia.”
However Smallwood also revealed that “the reaction from local companies suggests [the deal] is a one off.”
In February Sportingbet was announced as one of 70 European sites which the Serbian Gaming Board (SGB) had ordered internet service providers to block players in the country from accessing. At the time SGB director Aleksandar VuloviÄ told local tabloid Blic that around half of the country’s egaming revenues were going to unlicensed, foreign operators.
UPIS concluded its statement by saying: “UPIS expects that competent authorities will urgently stop this illegal business on the internet, and the new government will review all contested actions and through consistent respect for the law ensure equal treatment of all participants of the market.
“We hope that Serbian citizens will be protected from the influence of foreign firms and a variety of interest groups with questionable reputation, and that equity will be protected because it is a basic condition for economic prosperity of every country. Otherwise, there will be a complete breakdown of the domestic market which will only benefit certain interest groups at the expense of all citizens of Serbia.”