Five European countries target joint poker pool by mid-2017
Tax rates and game specifications among the main sticking points for a shared liquidity pact
Regulators from five European countries have agreed a goal to reach an agreement on online poker liquidity sharing by mid-2017, following a meeting this week.
Representatives from the British, French, Italian, Spanish and Portuguese regulators met in Paris on Tuesday to continue their discussions on the issue, as well as the standardisation of technical standards and data reporting.
The authorities reportedly agreed to have a liquidity pact in place by the middle of next year, but EGR Intel understands there are still significant sticking points to overcome.
Spanish gaming consultant, Eduardo Morales Hermo, told EGR Intel: “My input from the Spanish deputy regulator Juan Espinosa Garcia, is that there are regulatory hurdles that must be resolved in each jurisdiction in order to create an equal standards environment, and that is what is really slowing down the agreement.”
Morales Hermo said the key issues were the technical, game and spec standards which have to be the same across all jurisdictions so players all share the same environment.
Another sticking point is understood to be tax rates as France, for example, takes 2% of every cash game pot, meaning French firms subsequently have higher rake to make up the shortfall.
Great Britain’s Gambling Commission would not comment on the specific regulatory hurdles, but told EGR Intel it already allows liquidity sharing as long as certain requirements are met.
France recently passed the French Digital Law which gave the regulator ARJEL the authority to negotiate shared liquidity agreements with other EU member states. The Portuguese regulator SRIJ has similar powers.
A number of operators are also behind a shared liquidity pool, with Amaya’s vice-president of communications, Eric Hollreiser telling EGR Intel recently: “Amaya is supportive of legislation that protects both the consumer and the vitality of the online gaming industry.
“Pooling of online poker liquidity is a positive step forward that all regulated operators should welcome.”
The PokerStars parent-company said last week upon launching in Portugal it would “actively work with Portuguese authorities to help further develop and enhance the Portuguese regulatory framework for poker, including through the promotion of shared liquidity.”
However, Morales Hermo warned that shared liquidity might not revitalise the struggling poker vertical, as offshore poker sites with open pools were also struggling.