Operators share concern over EU, US egaming laws, Power 50 shows
Betfair, Betsson, Bet365, Bwin and Unibet are among top operators that still share major doubts over the shape of future EU and American online gambling regulation, research for this year's eGaming Review Power 50 has confirmed.
BETFAIR, BETSSON, Bet365, Bwin and Unibet are among operators that still share major doubts over the shape of future EU and American online gambling regulation, research for this year’s eGaming Review Power 50 ranking of the industry’s top 50 operators has confirmed.
Despite moves to legalise egaming in the US and efforts to liberalise online gambling regimes in EU member states, operators fear that new regulation could protect national monopolies, place crippling tax burdens on operators or remain unharmonised across different US or EU member states.
Speaking to eGaming Review, Betsson chief executive Pontus Lindwall (pictured) said: “Despite the recent progress within gaming legislation in Europe and US, there are still uncertainties and hurdles. There are still uncertainties how the actual legislation will look and how it will differ from country to country. If the industry has to face several different legislations, it would be both challenging and costly.”
Unibet chief executive Petter Nylander expressed similar concerns. Nylander said: “the internet is a cross border technology and is not really suited to be regulated on a state by state basis. This was addressed in the EU directive ‘Television without borders’ when communication satellites emerged in the 90’s, and for Europe, and maybe the world, we need to come up with something similar.”
Betfair chief executive Mark Davies, meanwhile, said he is worried that new laws might not allow egaming operators to be competetive. Davies said:” I think the same issues remain the main issues. Regulation might be on the cards, but whether it is regulation that is sensible to allow for a competitive industry remains to be seen. For example, states introducing turnover taxes instead of gross profits taxes might as well put up an advert for a black market.”
Bwin co-chief executive Manred Bodner added that “the US remains an unknown” and that “big differences in product scope and taxation models and levels are to be expected” in Europe.
Bet365 chief executive John Coates said that despite progress, the challenge for egaming businesses remained one of convincing legislators of the safety and legitimacy of the online gambling industry. Coates said: “There is no shortage of new challenges to overcome and we will continue to have an uphill struggle to satisfy jurisdictions around the world that appropriately regulated online gambling can be a product that is fair, honest, safe and fun.”
Coates’ view was illustrated on Tuesday when the EU’s highest court, the European Court of Justice, ruled against Bwin’s challenge to a Portugese law protecting a state online gambling monopoly, saying that it was not in breach of EU rules ensuring free trade as it served the purpose of preventing fraud.
Bwin responded that online bookmakers are better able to prevent fraud than land-based ones, while the European Gaming and Betting Association argued that the Portugese law was not necessary to combat fraud or any other crime.