Regulation round-up 10 July 2012
The biggest regulatory news from the egaming industry in the last seven days (04 July to 10 July 2012).
Cyprus parliament pushes through controversial egaming bill
Bill banning casino, poker and exchange betting passed by Cypriot parliament “ Betfair condemns legislation as having “serious flaws.”
The Cypriot government has formally approved legislation which allows for the regulation of fixed-odds betting, but bans all other forms of online gambling, including casino, poker and exchange betting.
The new system imposes a 10% tax on sportsbook revenues minus winnings, with operators required to pay an additional contribution of 3% of gross revenues to a regulatory body, which then distributes 1.5% of the money to the Cyprus Football Association, 1% to gambling addiction charities, and 0.5% to other sporting associations.
While no information has been released on how the government plans to enforce regulation, following the passage of the bill president of the House of Representatives Yiannkis Omirou is reported to have called for the island’s authorities to act quickly to block illegal operators, with the Cyprus Mail quoting him as having urged law enforcement “to remove this cancer form the bowels of Cypriot society.”
The decision to ban services betting exchanges was originally disputed by the parliament’s Democratic Rally Party of Cyprus (DISY) and Democratic Party of Cyprus (DIKO), which proposed a system in which Cypriots would be able to use an exchange to bet on foreign football matches only. However, the Cyprus Mail reports that while this had prompted parliament to remove the ban on exchange at committee stage, the provision was reinstated and passed on Friday night.
Seven days in regulation:
Shuffle Master to hear Nevada fate next week
Shuffle Master’s applications for egaming manufacturer and a service provider licences in Nevada will be considered by the Gaming Control Board (GCB) on Wednesday.
If recommended by the GCB, the Nevada Gaming Commission could act on its applications at its next meeting on 26 July, meaning US supplier Shuffle Master could become the third company to be awarded an egaming licence in Nevada after Bally Technologies and IGT were given the first two last month.
Paddy Power’s application for a preliminary finding of suitability for a Nevada licence will also be heard at next week’s meeting, as will the IT service provider licence application from cloud computing provider NetEffect.
German Länder launch national lottery
Germany has merged its two federal lottery operators to form die Gemeinsamen Klassenlotterie der Länder (GKL), the country’s first national lottery organisation, as part of the implementation on the amended Interstate Gambling Treaty.
The merger was officially described in a statement this morning as a move to offer an “attractive alternative to private operators which offer unregulated and unsafe products.” In a separate resolution, the GKL has been approved by the Länder to expand the range of lottery products it can offer from 2013.
All 16 of Germany’s member states have agreed to the formation of a national lottery as part of the implementation of the country’s controversial gambling treaty, which was originally signed by 15 of the 16 Länder with Schleswig-Holstein the notable exception, and brought into force on 1 July following the passage of the Federal Horse Racing and Lottery Act into law.
Interstate treaty prompts 188Bet withdrawal from Germany
188Bet has become the first operator to pull out of Germany, with the Isle of Man-based operator refusing to accept new players as of yesterday.
The move follows the German Bundestag passing the Federal Horse Racing and Lottery Act last week, bringing into force a 5% turnover tax on sports betting for private operators, with the country’s controversial interstate gambling treaty also coming into effect from 1 July.
Under the terms of the treaty the State will award 20 sports betting-only licences to private operators, who in turn will be taxed on 5% of turnover. The licensing process will be spearheaded by the central state of Hesse, though the opening of the window for operators to apply for a licence is yet to be announced.
New Jersey regulators release sports wagering proposals
New Jersey politicians have released a series of proposed sports betting regulations but without including provisions for online or mobile wagering.
The amended Casino Control Act and Casino Simulcasting Act permits over-the-counter (OTC) and account wagering at casinos and racetracks on “certain professional and collegiate sports or athletic events”.
High payout rate harms Italian sports betting revenues
Figures from Italy’s soon-to-be-merged regulator AAMS show the country’s sports betting market has declined significantly in May, falling 11% year-on-year with total land-based and online revenues of 38m for the month.
For the first five months of the year revenues from fixed-odds sports betting fell 10% due in part to higher payout rates on bets placed. The payout rate for online wagers stood at 91.66%, and 87.92% for retail betting, combining for a sector average of 89.09%.