Regulation round-up 1 July 2014
The biggest regulatory news from the egaming industry in the last seven days (25 June to 1 July 2014)
New UK framework given October start date
Laying of statutory instrument sees UK regulator open licensing window despite GBGA legal threat
The UK Gambling Commission has kicked-off the licensing process for its new Point of Consumption (PoC) regulatory regime with the new framework due to come into force on 1 October.
The move comes after parliament laid down the necessary statutory instrument related to the recently passed Gambling Bill with the licensing window due to close at midnight GMT on 16 September.
The closing of the window will be followed by a two-week dead period in which the Commission hopes to finalise licence applications before the Act comes into force.
Operators currently licensed in and EEA or white-listed jurisdictions have been encouraged to apply for a continuation licence in order to continue operations should their full licence application not be determined by 1 October.
UK regulator “considerably concerned” by BetButler issues
The UK Gambling Commission has said it is “considerably concerned” by operator BetButler and ongoing reports it is failing to meet customer withdrawal requests.
A number of BetButler’s customers have suffered trouble receiving payment from the operator, with some believed to have taken the bookmaker to the Small Claims Court in order to force settlement.
“We remain considerably concerned about a range of issues in relation to this operator and we are continuing to engage with them closely,” a Gambling Commission spokesperson told eGaming Review.
Seven days in regulation:
Dutch tax rate row threatens online regulation
A row over the rate of tax remote operators should pay in a regulated Dutch market is threatening to delay regulatory progress after the country’s Social Democratic party said it would vote against current proposals.
Draft legislation has suggested a tax rate of 20% of gross gaming revenue should be established for online gambling, lower than the 29% rate set for land-based operators such as Holland Casino.
Labour MP Mei Li Vos has criticised the proposals, labelling them “unacceptable” and likely to lead to a consumer shift to online products, leaving land-based establishments vulnerable.
UK Government asks GBGA for extra time to respond
The UK Government is likely to be given an extra two weeks in which to respond to the Gibraltar Betting & Gaming Association’s (GBGA) threat of legal action should it not perform an urgent review of the recently passed Gambling Bill, eGR understands.
The GBGA recently wrote to the Government and the Gambling Commission to detail its demand and threatened to mount a judicial review of the Bill should the parties not respond within 14 days.
However, eGR understands that, following a request from the Government and regulator, the GBGA will agree to extend the deadline to 16 July, by which point it expects a response to its claims the Bill is “unlawful”, “unworkable” and in need of reform.
Poland to open door to foreign-based operators
Foreign operators have been put on alert after the Polish Government published a draft amendment to its Gambling Act that would remove one of the biggest barriers to entry for non-Polish operators.
The amendment, if passed, would eradicate a rule that requires remote operators to establish a company within its borders “ a restrictive measure which has so far limited the number of licence holders to just four.
As a result, any operator incorporated as a limited liability company or joint-stock company registered within a European Union member state or Norway, Iceland and Lichtenstein would be able to apply for a licence.
Polish tax rate will keep operators out
Operators have responded negatively to the Polish government’s plans to attract more foreign egaming firms to apply for licences claiming the proposed changes do not go far enough with the tax rate still too high.
eGR previously reported that Poland was planning to open its doors to foreign-based firms by removing the requirement that remote operators must first establish a company within its borders.
However, a number of operators have told eGR that while the regulatory reduction is welcome, it is the country’s uncompetitive tax framework which proves to be the biggest deterrent for operators.
Dutch market launch set for lengthy delay, says Unibet
The Netherlands’ regulated online gambling market is unlikely to meet its 1 January 2015 target date with preparations expected to continue into the end of 2015, according to Unibet’s general counsel Ewout Keuleers.
In an interview with eGR, Keuleers said the chances of a re-regulated Dutch market launching in Q1 2015 were slim as the Government still needed to approve the final version of the Dutch Remote Gambling Act which would then need to be finalised in Parliament.
“I think the most optimistic date we can expect the Bill to be finalised is Q2 2015 and then there’s all the secondary legislation and licence application process, which if it started by the end of 2015 would be a very conservative forecast,” he said.
PokerStars could be live in New Jersey within months
PokerStars could be offering online casino and poker products in New Jersey as early as this autumn following the proposed sale to Amaya, eGR understands.
Parent company the Rational Group, which in December had its gaming licence application suspended for two years by the New Jersey regulator, is currently engaged in the licensing process in New Jersey with its US$.4.9m takeover by the Canadian supplier due to complete in September.
And sources in New Jersey have confirmed to eGR that should the deal go through the state regulators are expected to approve the licence application with a potential go-live date as soon as this autumn.
Racing Queensland confirms product fee hike
Operators taking bets on race meets in Queensland will be subject to increased product fees after the Australian state’s racing body confirmed its revised rates today.
However the new rate of 2% of turnover for standard race meets, up from 1.5%, is less than the 2.5% of turnover previously proposed by Racing Queensland.
‘Premium’ race meets including the Melbourne Cup will be subject to a 3% turnover tax, down from the expected 3.5%.
Cambodia explores online gambling regulation
Cambodian authorities have begun reportedly preliminary discussions over regulating online gambling as part of a major update to its gaming laws.
According to local reports, the Cambodian government is seeking to reform its gambling legislation in an effort to increase its tax base and attract players from Macau and the US.
As part of the talks, the government will also explore the legalisation of online sports betting in an attempt to reduce organised crime and match fixing stemming from the black market.
OPAP stands firm over monopoly criticism
Greek monopoly OPAP has defended its right to operate an online sportsbook despite growing criticism that it contravenes European law.
While a company spokesperson told eGR that the firm would not be commenting directly on the case, he stated OPAP firmly believes it has every right to launch online products.
Recent reports stated the European Commission has taken a dim view on this month’s launch of the GTECH-powered sports betting platform, with OPAP supposedly granted the right to operate one in the country exclusively.