Regulation round-up 11 November 2014
The biggest regulatory news from the egaming industry in the last seven days (5 November to 11 November 2014)
GB regulator in unlicensed advertising U-turn
Land-based advertising of unlicensed operators may continue but only if certain conditions are met, but sponsorship still in doubt
Great Britain’s Gambling Commission has conceded that operators may be able to legally advertise unlicensed products in Britain provided they cannot be accessed by British consumers, although doubts still remain over the ability of operators to sponsor UK teams and events.
In a letter sent to sports governing bodies, the regulator explained that, as well having to ensure British consumers were blocked from accessing unlicensed sites, from 1 November operators would also be required to make clear its products were not available to British consumers.
It had been feared that unlicensed operators, particularly Asia-facing brands with little or no British business, would have to stop using globally televised British sporting events as a vehicle to advertise their brands to international markets.
The regulator previously insisted that only licence holders would be able advertise within British shores, even in cases where operators were not targeting the market after questioning their ability to successfully block British customers.
Malaysia blocks gambling sites ahead of wider shutdown
Malaysian authorities have blocked access to some 172 online gambling domains as part of a renewed crackdown on illegal gambling.
Datuk Mohamed Sharil Tarmizi, chairman of the Malaysian Communications and Multimedia Commission (SKMM), told the Malaysia Star that the blocking was only a “temporary measure” and that more permanent solutions were being sought.
Sharil said the Commission will collaborate with other authorities in the country, including the national police and Home Office, in closing access to the sites, and added that the SKMM would campaign to have the sites shut down.
Seven days in regulation:
Dutch tax rate will cost “hundreds of jobs”
The decision to implement a dual tax rate for online and offline gambling products in the Netherlands could cost the machine gaming industry “hundreds of jobs”, a trade association for land based slot machines has warned.
The OF Slots Industry Organisation said it plans to issue state secretary of justice Fred Teeven with a petition signed by members of the land-based gaming industry later this week protesting against the country’s remote gambling bill and argue the split tax rate would create an “uneven playing field”.
The organisation has also questioned the feasibility of ensuring land-based operators adhere to same player registration and identification measures as online firms, stating it to be “not only unjust, but [will] also lead to an excessive investment burden”.
Poll: Can Scandinavian operators challenge the Western European elite?
In their most recent financial results, three of Scandinavia’s largest egaming operators pledged a commitment to expand into Western Europe after reducing reliance on their native Nordic markets.
Betsson‘s gross B2C profits from the Nordics now make up 73% of the business compared to 85% last year, while Unibet reported a substantial 46% year-on-year growth in Q3 revenues from Western Europe, including 120% in sports betting, while revenues from the Nordics decreased 4% year-on-year.
Last week, Mr Green CEO Mikael Pawlo also said it was “strategically important” for the online casino operator to move away from its core Nordic markets and into Western and Central Europe with revenues from the former region down almost nine percentage points to 53.6% in Q3.
Senet Group selects creative agency for debut ad campaign
The Senet Group has selected London-based creative agency The Corner to lead its responsible gambling advertising campaign next year and revealed it expects its membership to swell in the coming months.
Speaking to eGaming Review, Ron Finlay, spokesperson for the recently formed UK self-regulatory group, said The Corner had won a “closely fought” pitch and had “nailed it best of all” with their take on a campaign designed to inform the public of operators’ responsible gambling efforts.
The agency will now work closely with the Senet Group and its founding members Ladbrokes, Coral, William Hill and Paddy Power, to launch the campaign which will be targeted at a younger demographic.
Poll results: Slots unlikely to solve Spain’s black market problem
Spain’s online gaming market will continue to be hampered by unlicensed operators despite the imminent arrival of regulated slots, according to a small majority of respondents to last week’s eGaming Review poll.
Slots games are set to be introduced into the regulated Spanish market for the first time early next year after the regulator opened the licensing window for the product on 1 November.
The absence of slots has long been viewed as a contributing factor to the lack of growth in the regulated market with customers forced to turn to unlicensed operators in order to play such games.