Regulation round-up 19 November 2013
The biggest regulatory news from the egaming industry in the last seven days (13 November 2013 to 19 November 2013)
PoC tax could cost 1,300 Gibraltar jobs
Former chief minister Sir Peter Caruana warns of huge economic impact introduction of new UK remote gaming tax could bring
Gibraltar’s economy would be hit hard by the proposed 15% UK Point of Consumption tax with 1,300 jobs under threat as a result, the territory’s former chief minister Sir Peter Caruana has warned.
Speaking to The Times, Caruana said that the proposed tax rate would have a huge impact and declared its timing “ which coincides with Spain imposing stricter border controls and other restrictions on the British Overseas Territory “ to be a “very unhappy coincidence”.
Research cited by Caruana and conducted by Bournemouth University economics professor John Fletcher in 2012 suggested that the Gibraltarian government could lose up to £20m in revenue as a result of the bill.
The Gibraltar Betting and Gaming Association (GBGA) has warned that up to 1,300 jobs “ around one third of those employed in the industry – could be lost as UK-facing companies operating from the territory look to restructure and downsize in order to swallow the looming tax hit.
German sports betting licences delayed once again
The German sports betting licensing process has been delayed once again, with progress now not expected until 2014.
Letters sent out to the 41 applicants in the second stage of the procedure this week revealed that not one operator had met the minimum requirements stipulated in the Interior Ministry’s approval process.
Further letters with additional guidance are expected to be sent sometime in January, with operators afforded the opportunity to complete and amend their applications before resubmitting.
Seven days in regulation:
Gambling Bill “terrible” and “damaging”, says GBGA chief
The proposed Gambling (Licensing and Advertising) Bill received criticism as it reached the committee stage this week with those including Gibraltar Betting and Gaming Association (GBGA) chief executive Peter Howitt questioning the imminent switch to a point of consumption regime.
During a session in which witnesses were called to give oral evidence in front of a panel of MPs that included Department for Culture Media and Sport minister Helen Grant, Howitt challenged the potential effectiveness of the Bill and detailed a number of unwanted consequences of the measures.
Although he sympathised with the minister’s aim to protect UK customers, Howitt, who also confirmed the GBGA was still considering a judicial review, said the proposed Bill will have the opposite effect.
Bulgaria set to abolish blacklist as fresh tax regime nears
Bulgaria looks set to open its doors to overseas egaming operators with a list of amendments made to its licensing and taxation processes including the scrapping of its domain blacklist.
The Bulgarian government is considering alterations to its online gambling tax regime and the amendments, tabled in parliament this week, would closer align the country’s legislation with those of other European nations.
Bulgaria’s blacklist, which has been extended to include around 160 domains owned by the likes of bet365, Betfair, Ladbrokes and William Hill, would be abolished as the country looks to tempt more operators into applying for a licence.
New Jersey licensing: Six talking points
The decision by the New Jersey’s regulator to leave the world’s most popular online poker site out of its second licensing round may not have come as much of a shock, but the impact of the decision, be it a delay or a snub, was felt throughout the industry.
PokerStars has established a partnership with one of the leading Atlantic City brands “ Resorts. It has committed to investing $10m in a new poker room alone, while hinting that its presence in the state will lead to some 200 jobs being created. The decks have been cleared legally, too, removing barriers to entry which have loomed since Black Friday; it settled its civil lawsuits with the US DoJ last year before CEO Mark Scheinberg reached a $50m personal settlement in June.