Regulation round-up 14 January 2014
The biggest regulatory news from the egaming industry in the last seven days (8 January to 14 January 2014)
Canbet and UK Gambling Commission talks continue
UK bookie’s deadline to respond to regulator regarding customer payment fears elapses
Discussions between UK-licensed operator Canbet and the Gambling Commission remain ongoing as the regulator seeks assurances over the self-suspended operator’s financial stability.
Canbet took the decision to suspend its operations after failing to rectify a “system malfunction” which it said was hampering it from repaying customer funds.
The Commission responded to the cessation of trading by setting the sportsbook operator a 6 January deadline to give assurances it was able to meet its financial obligations and also provide a report detailing the number of customers affected and the sums due.
It also threatened the operator with a review of its current operating licence.
Dutch state lottery plots merger with Lotto
The Dutch National Lottery (Staatsloterij) and privately owned Lotto are planning to merge to create the country’s largest lottery business and a powerful player in a future online gaming market.
Officials have confirmed talks between the two parties are ongoing over a deal designed to produce significant cost savings, with both parties suffering from falling revenues in the lottery sector in recent years.
A combined entity would turnover more than 1.2bn a year and be capable of competing in the soon-to-be regulated Dutch online gaming market, an intention which both parties have individually spoken of.
Seven days in regulation:
Swedish gambling advertising debate heats up
The Swedish Newspaper Publishers’ Association Tidningsutgivarna (TU) has hit back at recent comments made by Svenska Spel following the media organisation’s complaint to the European Commission which questioned the legality of the country’s gambling monopoly.
In an article for financial newspaper Dagens Industry, chairwoman of the Swedish operator Anitra Steen wrote that the “party was over” for newspapers seeking to profit from foreign gambling advertisements and defended the legitimacy of the state monopoly.
“There is no longer any doubt that the EU treaties on free movement allows Member States to maintain exclusive rights and monopoly in the gaming area, and that parliament could continue to exclude private profit from this market,” she wrote. “Anyone who says the opposite is actually the father of falsehoods in the public debate.”
Metro Play reprimanded for casino ad
DMG media-owned operator Metro Play has been reprimanded by the Advertising Standards Association (ASA) for printing an ad likely to appeal to children.
An advert in the parent-brand Metro newspaper featured Transformers character Optimus Prime promoting the operator’s online slot Transformers: Battle for Cybertron and an “exclusive bonus” offer.
The ASA ruled the advert had breached four codes of practice after complainants protested at the use of the character from the popular toy brand, despite small print stating the offer was for over 18s only.
Analysis: Canbet case offers UK regulator reality check
It is expected that by this summer a sizable proportion of the online gambling industry will be beginning to get to grips with the UK’s new Point of Consumption (PoC) regime.
As most will already be aware, the new regulatory framework will require operators and suppliers that wish to transact with customers based in Great Britain, or advertise their services on the island, to be in possession of a licence from the UK Gambling Commission.
Although the stated intentions of this new framework “ to better protect consumers – have been broadly welcomed by the industry, trade associations such as the Gibraltar Betting and Gaming Association (GBGA) have been vocal about the regime’s shortcomings.