Regulation round-up 18 August 2015
The biggest regulatory news from the egaming industry in the last seven days (12 August to 18 August 2015)
Brazil gambling law vetoed
Hopes that market would open up look forlorn as president strikes down reforms which had already passed through Congress
Major reforms to Brazil’s gambling laws which would have legalised sports betting in the country for the first time have been vetoed by President Dilma Rousseff.
The country’s Congress had passed legislation to introduce fixed-odds sports betting last month, which was expected to be rubber-stamped by Rousseff before entering into law.
However, eGaming Review understands that an intervention from the Ministry of Finance, which argued that it didn’t have time to regulate the new offering, persuaded Rousseff to block the move.
In an statement outlining the reasons for the veto, the government also cited concerns over a lack of measures designed to prevent a “negative social impact” from the new product.
India online gambling hopes suffer setback
The chances of online gambling becoming available across India have been dealt a blow after the one Indian state which permits the activity was told licensees must not offer products to players outside of its borders.
Operators had been hopeful that permits handed out by the state of Sikkim would eventually allow operators to target the rest of India, however, as part of the passage of the Sikkim Online Gaming (Regulation) Amendment Bill, it has been ruled this would violate the laws of other states.
The confirmation means the initial scope of the online gambling market for Sikkim licence holders has been dramatically cut from 1.2bn people to just 600,000, with online products to be made available via a state intranet in order to ensure they are unavailable elsewhere.
Seven days in regulation:
Spanish market shrinks 6% despite slots boost
Spain’s online gaming market shrank by 6.3% in the second quarter of 2015 despite a 59% increase in casino revenues following the launch of slots, according to the latest figures from the country’s gambling regulator.
The Dirección General de Ordenación del Juego (DGOJ) reported Q2 gross gaming revenues (GGR) fell to 62.7m during the three-month period despite turnover rising 29% to 2bn, with the decline primarily driven by lower gross margins in sports betting.
Sports betting has been a key driver of growth in the Spanish market in recent months, but GGR in the vertical fell 2.3% year-on-year to 31.1m despite a substantial 51.3% increase in turnover to 1.01bn during the second quarter.
GB regulator warns operators over illegal advertising
Great Britain’s Gambling Commission has warned operators to take “immediate action” to ensure adverts placed by themselves or their affiliates do not appear on illegal websites as part of a City of London Police crackdown on copyright infringement.
And eGaming Review has learnt the Commission has brokered dialogue between the police and several major but unnamed operators as part of the operation.
“We can’t talk in detail about ongoing operations but we are aware that adverts for mainstream, licensed gambling operators are appearing on these sites,” a Commission spokesperson told eGR.
Unibet applies for Romanian gambling licence
Unibet has applied for an online gambling licence in the newly regulated Romanian market, with the operator telling eGaming Review it would continue to work with the regulator to ensure “sustainable operating conditions” in the country.
In an email sent to Unibet affiliates last Tuesday, and seen by eGR, the operator said it hoped to join the likes of Stanleybet, NetBet and Winmasters and obtain a permit from the regulator the National Office for Gambling (ONJN).
“While Unibet is still analysing the licence requirements/conditions, we would like to let you know that Unibet is in the process of going ahead with its application for a Romanian licence,” the email said.