Regulation round-up 10 June 2014
The biggest regulatory news from the egaming industry in the last seven days (4 June to 10 June 2014)
Brazil egaming loophole to close on 22 June
Civil Landmark Bill passed last month however doubts remain over its application as market regulation talks continue
The Bill to close a loophole allowing international egaming firms to target Brazil-based customers has been passed into law, but doubts remain over whether or not it will be applied by Brazilian state judges.
The Civil Landmark Bill of Law, known locally as ‘The Internet Constitution’, was passed by Brazilian president Dilma Rousseff on April 23.
In effect it will close the loophole that has until now deemed any contract online to be bound by the laws of the jurisdiction where it has been actioned which, in the case of online gambling, is the location of bet taker’s licence.
The Bill is currently under ‘vacatio legis’ – the period of time between the passing of the law and it coming into force – which in Brazil lasts 60 days, meaning that it would come into force on 22 June.
Sportsbook surge drives Spanish market to highest level
Spain’s regulated market grew by 10% during the first three months of 2014 as a vastly improved sportsbook performance helped the market record its best figures to date.
Total gross gaming revenues (GGR) for the three months ended 31 March reached 66.9m, up on the 60.9m posted during the comparative period in 2013 and a rise of 12% sequentially.
The growth can be attributed to a strong sportsbook performance as the vertical saw GGR grow 23% year-on-year to 37.3m for the quarter, making up 56% of the entire Spanish market.
Seven days in regulation:
Belgian regulator seeks greater egaming restrictions
Belgium’s regulator has urged the country’s soon-to-be formed coalition government to empower it to curb the expansion of online gambling with a call for the sector to be “curtailed”.
In the letter following last month’s elections, the Belgium’s Gaming Commission claimed operators weren’t doing enough to protect venerable players and warned that politicians were in danger of being “blinded by gambling money”.
The regulator called on the government to introduce a measure which would see online gaming identity checks made against the national register saying it was “crying in the wilderness” for the measure to be introduced.
Regulatory delays “killing” Italian bingo market
Continual delays to a new online bingo platform expected to galvanise the vertical in Italy are “killing” the market’s chances to prosper, according to Eurobet’s gaming director Marco Trucco.
The bingo platform, PBAD3, which was expected to be approved Italian regulator Agenzia delle Dogane e dei Monopoli (AAMS) at the start of the year, will enable operators to offer variants beyond 90-ball bingo for the first time.
Under current rules, all bingo suppliers are required to connect to a central random number generator (RNG) system run by the regulator’s IT company Sogei, which prevents bingo operators and suppliers from running their own games and offering a more expansive product range.
Unibet sponsorship row set for Swedish courts
The Swedish Gambling Authority (Lotteriinspektionen) has warned organisers of the Stockholm Marathon they may face legal action after the event refused to pull its sponsorship deal with operator Unibet.
The Stockholm Marathon received repeated warnings from the regulator in the lead-up to the event that its contract with Unibet was deemed to be in in violation of the Swedish Lottery Act.
The warnings culminated in a court injunction being granted on the eve of the race, however, organisers decided to press ahead with a deal which saw Unibet branding displayed around the 26-mile course.
Analysis: Five key points from California’s new online poker bill
It has taken years to achieve but this week 13 of California’s most influential Native American Tribes finally reached consensus on single streamlined online poker legislation. Momentum has been building over the past months and weeks, with the Tribes meeting on several occasions to thrash out differences over licence fees, tax rates, and the number of sites a licensed operator could offer.
The new legislation is therefore the greatest chance yet of the state making internet gaming progress. The tribes are keen to submit the Bill in the current legislative session “ pending approval from authors Representative Jones-Sawyer and Senator Correa “ offering a glimmer of hope that legislation may even be signed into law this year.
But with Morongo and PokerStars saying they will fight the Bill under the premise it is anti-competitive, regulated online poker in California is by no means a done deal.
Analysis: Racing fee hike to force change in Australian bookie strategy
Increased race field fees set by Racing Victoria (RV) and Racing Queensland (RQL) will squeeze margins and is likely to force some operators into reconsidering their pricing strategies, according to many in the Australian wagering industry.
The changes, fixed for a 12-month period from 1 July, will see operators pay 3% of turnover – or 30% of gross profits – to RV on premium race meets, a substantial increase on the previous figure of 2% of turnover.
RV, the body which oversees by far the biggest event in the Australian racing calendar, the Melbourne Cup, said the fee hike will help to grow the industry and therefore protect jobs and sustain the Victorian racing industry in the future.