Regulation round-up 12 November 2013
The biggest regulatory news from the egaming industry in the last seven days (6 November 2013 to 12 November 2013)
PoC tax rate not set in stone, says RGA
Treasury ministers could yet amend proposed 15% gross profits tax, although change may not come until 2016
Government Treasury ministers have yet to fully commit to a point of consumption (PoC) tax rate of 15% and are still accessing the case for a lower levy, according to the Remote Gambling Association (RGA).
Despite August’s draft regulation including a provision for a 15% tax on all remote gaming revenues from UK customers commencing December 2014, RGA chief executive Clive Hawkswood told eGaming Review that the battle for a lower rate of tax hasn’t come to an end.
“A 15% tax rate is the message they are giving to everybody but they are considering our submissions which proposes a tax rate of no more than 10%,” Hawkswood said.
In September, accountancy giant KPMG released a RGA-commissioned report which concluded a tax rate of 15% could put operators out of business and instead proposed a levy of no more than 10%.
PokerStars absent as second wave of licences awarded in New Jersey
The New Jersey Division of Gaming Enforcement has issued a second wave of licences to suppliers, including Caesars Interactive Entertainment, bwin.party and Gamesys.
The companies have been issued a transactional waiver, which means they are able to launch on 21 November albeit to a limited number of customers as part of a five-day trial.
The DGE has also announced the companies currently being considered for a transactional waiver, including Paddy Power North America, Betable, and Pala Interactive.
Seven days in regulation:
UK government considers IP blocking
Sports minister Helen Grant has refused to rule out the introduction of IP blocking for unlicensed operators during last week’s second reading of the Gambling (Licensing & Advertising) Bill.
Grant was responding to fears from MPs that the introduction of the Bill, which will require all operators that wish to take bets or advertise their services in the UK to acquire a licence from the Gambling Commission, could see consumers migrate to black market operators.
Speaking from the Commons dispatch box, Grant said she had “not ruled out IP blocking” however added that she had noted previous “mixed results” when the measure had been applied to other industries.
LGA chairman resigns in board shake-up
The chairman and chief executive of Malta’s Lotteries and Gaming Authority (LGA) have both stood down from their roles after the regulator decided to restructure the Board and install a new executive chairman.
Chairman Mario Galea, who will stay on as a consultant to the LGA, resigned from his position on Tuesday following the departure of Reuben Portanier, who stepped down as CEO last month after nearly five years at the regulatory body.
Galea and Portanier have been replaced by Joeseph Cuschier, who has taken up the newly created role of executive chairman and is now responsible for strengthening Malta’s position as an egaming jurisdiction.
Gambling Commission “ready” for new powers
The UK Gambling Commission has rejected suggestions from MPs it will be unable to handle the increased responsibility contained within the new Gambling (Licensing & Advertising) Bill.
The Bill, if passed, will require operators that wish to take bets or advertise services in the UK to obtain a licence from the Commission. The Bill is expected to be implemented on 1 May 2014 however, a number of MPs have raised doubts over regulator’s capability to cope with the additional workload.
Speaking during the second reading of the Bill in Parliament, Conservative MP and chairman of the Culture, Media and Sport Select Committee John Whittingdale warned of “brass plating” due to what he feared was insufficient resources at the Commission to carry out stringent licensing tests.
Analysis: Can foreign operators advertise legally in Canada?
Last month the boss of the Atlantic Lottery Corporation hit out at offshore gambling sites for advertising at a recent Canadian Football League game.
Brent Scrimshaw singled-out non-Canadian egaming operators advertising their online gambling platforms in the state, describing them as “brazen, unregulated and unlawful”.
The lotto boss claimed the sites, which are regulated overseas in the UK, Gibraltar and other jurisdictions but not Canada, had taken more than CA$64m away from the Atlantic Lottery last year alone.