Regulation round-up 30 May 2017
The biggest regulatory news from the egaming industry in the last seven days (24 May to 30 May 2017)
Ireland considers ditching turnover tax
Country to look at various tax measures including moving burden to punter and scrapping the turnover-based system
Ireland has launched a review into the country’s betting duty, which will include impact assessments on measures such as increases to tax rates, switching the tax burden to punters and moving away from a turnover-based model.
The review, which forms part of the government’s wider 2017 Tax Strategy Group process, will involve both the land-based and remote betting industries, with the latter having been brought into the tax system as part of the Betting (Amendment) Act 2015.
At present, the remote industry is taxed at 1% of turnover for traditional fixed-odds and 15% of revenues/commission for exchange betting.
The Department of Finance (DoF) will explore what a potential increase in tax rates would have on both the Exchequer’s revenues and the unlicensed market, as well as consequences for the bookmaking industry, including the remote sector.
British remote market rises to £4.8bn, new figures show
Great Britain’s remote gaming market generated £4.8bn in gross gaming yield (GGY) for the 12 months to September 2016, a period which saw betting revenues close the gap on the larger casino vertical.
According to figures released by the Gambling Commission this morning, the size of the overall online market increased by 6% on the £4.5bn registered in the year to March 2016 – the regulator’s previous update.
And it was the betting vertical, boosted by Euro 2016, which powered much of the growth with GGY up 11% from £1.59bn in the year to March 2016 to £1.76bn in the 12 months to September 2016.
Seven days in regulation:
European poker liquidity pact to be signed in June
A deal to share poker liquidity across four European markets is expected to be signed in June, according to the French gambling regulator ARJEL.
ARJEL predicted an agreement would be signed next month, and by September operators would be able to apply for their software to be reviewed to ensure they are in line with the technical standards required for liquidity sharing.
The multilateral pact would also include the closed markets of Portugal, Italy and Spain.
Operators refute Norwegian regulator’s payment blocking impact claims
A number of major operators have told EGR Intel they have seen little or no impact on their business following the strengthening of payment blocking measures in Norway, despite claims by the regulator that the clampdown has been a success.
The differing views follow the March introduction of a ban on payment companies accepting transactions made between unlicensed operators and Norwegian players.
The Norwegian Gambling Authority (Lotteritilsynet) said it had secured support from major payment solutions providers Worldpay, Inpay and Earthport, as it looked to curb unregulated activity.
Sports betting growth drives French Q1 revenues up 6%
French online gaming revenues grew 6% year-on-year to €219m in Q1, powered by record numbers of new sports betting customers and a surprise turnaround in poker revenues.
According to figures released last week by French regulator ARJEL, sports betting revenues were up 16% to €94m, thanks largely to a 25% jump in weekly active customers to 341,000.
The sports revenues were generated on wagers of €633m, marking the highest figure in a quarter since the market opened in 2010 and surpassing the previous high of €585m in Q2 2016, which featured the European Championships.
FA contacts bookmakers over John Terry substitution bets
The English Football Association (FA) is looking into John Terry’s early substitution last Sunday which triggered at least two four-figure pay-outs at Paddy Power.
Terry was subbed off in the 26th minute of his final Premier League game for Chelsea on Sunday to enable players and fans to pay tribute to the former England captain’s career.
The move was apparently pre-planned by Chelsea and agreed to by both teams, with opponents Sunderland obliging by kicking the ball out of play at the start of the 26th minute – Terry wears the number 26 shirt.