Greece pushes for fast-track regulation

Greek politicians could agree to regulate the country’s online gambling market as soon as Thursday, despite its existing proposals continuing to contravene EU laws.

A last minute decision to recall a number of senior Greek ministers will see its gaming law debated from 7.30pm this evening until its conclusion on Thursday 5 August. This is despite the EC’s notification process declaring its draft proposals were not compliant with EU laws, and the standstill period by the Greek authorities not ending until 8 August. In June Betfair filed a complaint with the EC over the ban on betting exchanges contained within the Greek draft egaming law.

Greek politicians however, appear to be content with ignoring the EC’s concerns meaning the European body could launch infringement proceedings and take the government to the European Court of Justice.

Once the debate has ended, and provided the Greek Parliament does not vote against it, the law could be fast-tracked and attached to the government’s must-pass finance bill.

The Greek government originally presented its bill aimed at raising around €700m this year from the issue of 15-55 new licences to its parliament in March, by which time it had undergone several important changes since appearing in its initial form in January. These included dropping a proposed “black period”, requiring applicant operators to cease activity in the market until licensed, and opting for a 30% gross profit tax (GPT) instead of the 6% turnover levy originally proposed.

It is now thought the government is considering charing operators around €10m for a five-year licence.

An RGA spokesman told eGaming Review the body and its members within the licensed private gambling industry had broadly welcomed the opening of the market but that it was concerned with “the apparent disregard” of the EC’s notification process and standstill period by the Greek authorities. “The disregard for those protocols and the acceleration of this legislation comes at a time when Greece is receiving significant financial support from the EU,” he said.

Twice bailed-out Greece is facing one of the biggest financial crises in the Eurozone’s history. After coming close to insolvency, the country last month secured a new, €109bn bailout deal, in addition to the €110bn rescue loans agreed in 2010 as well as introducing a tough austerity program in the same year. It had previously agreed to generate a part of the required funds it owes to the EU and the International Monetary Fund by legalising online gambling and by selling its 34% stake in state gambling monopoly OPAP.

Evangelos Venizelos, Greece’s finance minister last week said his government may backtrack on its original decision to sell its full stake in OPAP by the end of this year and instead generate revenues from the monopoly in order to reduce public debt.

“The bill, whilst welcome in a broad sense by private operators, many of which are UK companies, clearly provides commercial advantages to the existing state-owned OPAP operator over EU private sector businesses,” the RGA spokesman continued.

“In particular, the imposition of a black out period during which no new licences will be available and where no private operators will be able to offer services whilst OPAP will continue to operate and provide services to Greek consumers. This is one of a number of potentially discriminatory aspects of the law towards the regulated EU private gambling sector,” he added.

The RGA has been lobbying Greek ministers and decision makers and the organisation’s main issues surround:

Taxation
A 30% Gross Profits Tax (GPT) on operators, higher than any of the other current regulated markets in France, Italy and the proposed new markets in Spain (20-25%) and Denmark (20%). Despite the RGA lobbying successfully to achieve a change in taxation to GPT it still views the rate as prohibitive.

A 10% “players’ tax” on winnings seen by the body as a further disincentive to gamble with a Greek licensed operator.

Ban on bets
A blackout period of up to six months proposing a ban on all operators offering gambling services to Greek consumers before obtaining a licence. OPAP would be exempt. It suggests this is impractical and will have an adverse impact.

Forced use of Greek financial institutions
Compelling licensed operators to only use Greek financial institutions appears to be a restriction which breaches EU law, notably the free movement of capital.

Different age limits for on and offline gambling
Participation in online gambling is limited to a minimum of 21 years of age, however, the offline gambling activities of OPAP are restricted to a minimum age of 18 years.

Requirement to have a permanent establishment in Greece
The requirement that operators must have a registered office or permanent place of establishment in Greece runs directly counter to the freedom to provide services.