Regulation round-up 1 November 2016
The biggest regulatory news from the egaming industry in the last seven days (26 October to 1 November 2016)
Germany on brink of federal sports betting regulation
Country’s regional leaders ditch contentious licence cap and announce plans to include online casino
The German online gambling market could soon open up after state leaders agreed to remove the contentious cap on the number of sports betting licences and potentially re-regulate online casino.
The leaders of the 16 German states said on Friday they had reached a provisional agreement to abolish the licence limit, claiming they should be awarded “on the basis of qualitative minimum standards”.
Germany issued 20 sportsbook licences in September 2014 but court challenges from left-out operators meant the licensing framework never came into effect. Operators claimed it was anti-competitive to limit the number of market participants.
However, German-facing firms are still in the dark about how quickly the expanded licences could be issued.
FanDuel and DraftKings reach £10m settlement for “misleading” ad campaigns
FanDuel and DraftKings have each agreed to pay £4.9m to the state of New York to settle allegations the firms “consistently misled” consumers in their advertisements.
The settlement marks the highest New York fine for deceptive advertising in recent memory, according to a statement from New York attorney general Eric Schneiderman, who led the lawsuit against the operators.
The agreement also requires “sweeping reforms” to the companies’ marketing, including more responsible gambling warnings and increased transparency about players’ chances of winning.
Seven days in regulation:
Camelot faces Gambling Commission investigation following app failure
The Gambling Commission has launched an investigation after Camelot suspended its flagship National Lottery app last week due to a technical issue that saw it incorrectly identify winning tickets as losers.
Camelot confirmed a “small minority of customers” which used the app to check lottery results were given incorrect outcomes, potentially leading to unclaimed winnings.
The operator said the issue was linked to a recent software release and it had “temporarily locked the app while we work to fix this”.
ASA reprimands Ladbrokes over casino bonus offer
The Advertising Standards Authority (ASA) has banned a Ladbrokes email promotion after the ad watchdog ruled a “misleading” bonus offer had failed to specify wagering requirements clearly.
The advert, sent out on 21 April 2016 to the operator’s Table Club players, stated: “Check this out: Deposit £35 and Get £5 … Deposit £60 and Get £10 … Deposit £100 and Get £20 …” with a Deposit Now button placed below the text.
Terms and conditions further down the ad outlined that customers were required to wager the amount five times in casino, slots and live casino to redeem the deposit bonus amount and winnings.
Ladbrokes Coral merger receives final CMA approval
The Ladbrokes-Coral merger edged a step closer last week after the Competition and Markets Authority (CMA) gave its final approval for the £2.3bn deal to be completed.
The competition watchdog rubber stamped the disposal of 360 shops required for the merger to go through, 322 of which will be sold to Betfred, 37 to Stan James and one to Bet 21.
The CMA earlier this year ruled the two operators must sell between 350 and 400 shops in order for the deal to go ahead.
Poll: Which vertical would be hit hardest by a UK advertising ban?
The ability for UK-facing operators to advertise bingo on TV prior to the 9pm watershed and sports betting around televised events was thrown into doubt earlier this month when the government announced it would be conducting a review into gambling advertising.
Since the introduction of the 2005 Gambling Act, these two verticals have enjoyed more freedom than poker and casino, which are restricted to post-watershed TV slots.
Government ministers are said to be concerned about what they view to be a proliferation of gambling adverts and their exposure to children, with one commenting her child could recite many of the gambling ads screened on TV.