Regulation round-up 12 January 2016
The biggest regulatory news from the egaming industry in the last seven days (6 January to 12 January 2016)
Dutch market facing crisis after 29% tax proposal
Coalition parties set to scrap 20% in favour of uniform rate across online and land-based gaming
The emerging opportunity of a regulated Dutch egaming market was thrown into doubt last week after the ruling coalition parties jointly submitted plans to bring the proposed 20% tax rate in-line with the 29% paid by the land-based sector.
The People’s Party for Freedom and Democracy (VVD) and the Labour Party (PvdA) appeared to U-turn on commitments to a 20% online rate, however it is understood the rate would drop to a uniform 25% if the egaming market is considered large enough after three years.
And a leading gaming lawyer in the country told eGaming Review the proposed change meant there was a “real likelihood” the Dutch egaming market would fail.
“Operators have learned their lessons in other jurisdictions and I think interest in the market will seriously decrease if and when these motions pass parliament,” Justin Franssen of Kalff Katz & Franssen said.
Italy ushers in new tax regime
Online firms in Italy are operating under a new tax regime after the country’s government ushered in a new framework at the beginning of the year.
From 1 January, sports betting and poker tournaments are no longer levied on a turnover basis but instead taxed at 22% and 20% of revenues respectively.
The move has been broadly welcomed by industry, although sports betting operators had previously anticipated the introduction of a 20% rate but a late amendment to the Stability Law sees sports betting taxed at a higher rate than all other verticals.
Seven days in regulation:
India must legalise gambling, says former chief justice
An Indian committee comprised of a former chief justice and two Supreme Court judges has recommended that the country’s federal government legalises all forms of sports betting.
The panel, which was tasked with looking at ways in which the Board of Control for Cricket in India could tackle corruption, delivered a report last week which claimed a fully-regulated sports betting framework could assist with the detection of suspicious betting activity.
Led by former chief justice R.M. Lodha, the three-man committee said a regulated betting framework would not only generate much needed tax revenues but also bring greater transparency to cricket.
Lottoland gets Australia licence ahead of Q1 launch
Lottoland is to expand its bet-on-lottery product to the Australian market in the coming months after obtaining a five-year licence from the Northern Territory’s Racing Commission.
The Gibraltar-based operator, which offers customers the chance to bet on the outcomes of international and state lotteries, has appointed former Betfred and Centrebet man Luke Brill to run its operations in the country.
Brill had led Betfred’s Australian arm until the business was wound down late in 2014, and previously served as head of marketing and gaming for Centrebet for five years.
Lithuania takes “severe action” to curb unlicensed sites
Lithuania has promised to take “severe action” against operators targeting its residents without a permit after being handed fresh powers to clamp down on unlicensed activity.
Following changes made to the Gaming Law of the Republic of Lithuania on 1 January, banks and other financial service institutions, such as payment providers, are now under legally binding orders to stop all payments related to illegal gambling.
The country’s regulator, the Gaming Control Authority (GCA), also has the right to issue legally binding orders to network service providers to automatically block access to unlicensed gambling websites.
Sportech ?93m VAT hearing set for April
Sportech’s multi-million pound dispute with Her Majesty’s Revenue and Customs (HMRC) over a ?93m VAT refund is set to be resolved at an appeals hearing in April.
The case will be heard by the Court of Appeals on either 7th or 8th of the month and will address Sportech’s appeal against a ruling last year that it must return ?93m previously re-claimed in overpaid VAT.
The payment relates to the ‘Spot the Ball’ competition operated by its subsidiary Littlewoods between 1979 and 1996.
Operators in talks with Cricket Australia over match-fixing concerns
Australia’s cricketing governing body held talks with unregulated gambling operators last week amid growing concerns of match-fixing during its popular Big Bash tournament.
According to The Sydney Morning Herald, an estimated AU$3bn is expected to be wagered on the Twenty20 cricket event – a near 40% rise on last year – and an amount which prompted Cricket Australia to scope out unusual betting activity and signs of potential match-fixing.
The national cricket body, with the backing of the Australia Federal Police, is understood to have spoken to a number of offshore wagering companies, including SBOBET and Pinnacle Sports, to get an understanding of the nature and volume of bets taken, the SMH reported.
Golden Tiger Casino advert “misleading”, says ASA
Apollo Entertainment subsidiary Golden Tiger Casino has been reprimanded by the Advertising Standards Authority (ASA) over a “misleading” email promotion for its GoldenTigerCasino.co.uk site.
The email told players they were a weekly winner and had received a ?1,500 welcome bonus. Text stated: “Use our money to play our games. If you win, you get to keep it. Deposit is required to claim your winnings”.
The advert also included a footnote which stated “Terms and conditions may apply”.