Regulation round-up 21 July 2015
The biggest regulatory news from the egaming industry in the last seven days (15 July to 21 July 2015)
Brazil on verge of sportsbook regulation
Bill passed by Brazilian Congress set to regulate sportsbooks in a move described as a “game-changer” for the market
Brazil looks set to introduce new legislation for fixed-odds sports betting after Congress passed a law aimed at regulating the country’s large unlicensed market.
The new law is expected to be sanctioned by President Dilma Rousseff in the coming weeks and although the exact form of the sports betting offering is still unclear, operators will be able to obtain a licence in order to offer fixed-odds sports betting online.
Previously state and federal lotteries and some limited horse racing were the only forms of legalised gambling in Brazil, but a large offshore grey market has grown in recent years, with an estimated eight million people gambling online in the country.
Luiz Felipe Maia, partner at law firm Oliveira Ramos, Maia e Advogados Associados in São Paulo, described the news as a “game changer” and said he expected major foreign operators “to make a move” once the market had opened.
Legality of PoC tax to face EU ruling
The Gibraltar Betting and Gaming Association’s (GBGA) attempt to overturn the UK Point of Consumption tax received a major boost last week after the UK courts ruled the levy could be in breach European law and will be referred to the Court of Justice of the European Union.
In a judgment passed down last Tuesday, Mr Justice Charles agreed with the GBGA’s claim that the implementation of the tax, which has been in force since 1 December, raised several important issues concerning Article 56 of the Treaty on the Functioning of the European Union.
Mr Justice Charles questioned whether the tax had resulted in a restriction on the free movement of trade between Gibraltar and the UK and also whether the UK could be justified in implementing a tax to address a perceived competitive advantage for overseas operators.
Seven days in regulation:
GB black market yet to emerge, says Gambling Commission
Great Britain’s Gambling Commission has hit back at critics who suggested the implementation of its Point of Consumption regime would lead to the growth of a large black market, saying there is “no evidence” of any illegal operators targeting British players.
“As far as unlicensed activity is concerned, we have found no evidence of the threatened move underground or emergence on any scale of illegal websites targeting Britain,” the Commission wrote in its annual report released last week.
Last year several industry figures predicted that PoC would see a large black market develop in Britain when it was finally introduced in November, with Phill Brear, the Gambling Commissioner of Gibraltar, warning that the regime would give “free-reign” to unlicensed operators.
Ladbrokes Australia pulls in-play betting feature
Ladbrokes’ Australian arm pulled its controversial in-play online betting feature Quickcall despite the operator maintaining its legality amid intense media and regulatory scrutiny.
Earlier this year the operator followed in William Hill’s footsteps by launching a product designed to work around the ban, allowing customers to place bets online so long as they are connected to the operator’s call centre via an audio internet connection.
Under the Interactive Gambling Act 2001, Australian betting operators are currently prohibited from providing online betting during live sports and can only accept wagers placed over the phone.
Betfair exits Portugal ahead of licence application
Betfair has stopped accepting bets from customers in Portugal ahead of an application for a licence which could see it become the first major sports betting operator to be licensed in the country.
A spokesperson for Betfair last week confirmed it was to suspend its Portugal-facing operation, a business which Barclays estimated accounted for around 2% of the group’s total revenues.
While some have criticised Portugal’s decision to tax sports betting on turnover, exchanges are to be taxed on revenues presenting Betfair with an opportunity not afforded to the likes of William Hill, which withdrew from Portugal last month.
Isle of Man ebusiness director Greenhill departs
Peter Greenhill, the director for e-business development at the Isle of Man’s Department of Economic Development, is leaving his role to return to the private sector.
Greenhill, who was previously CEO of Asia-facing lottery and gaming company Betex Group and consulted for Camelot and Gala Coral, spent two years in the post and oversaw a period of high growth for the sector, with more than 100 new egaming jobs created on the island last year alone.
He also took a lead role in steering the Isle of Man government through a raft of legislative and regulatory issues such as the UK’s Point of Consumption tax and licensing regime, which were introduced last year.