Regulation round-up 21 October 2014
The biggest regulatory news from the egaming industry in the last seven days (15 October to 21 October 2014)
GBGA mounts new bid to overturn PoC tax
Industry body asks for Judicial Review over 15% tax rate after recent licensing judgment gives “greater hope” of mounting a successful challenge
The Gibraltar Betting and Gambling Association (GBGA) has submitted an application for a judicial review (JR) of the UK government’s plans to introduce a 15% levy on profits derived from customers who normally reside in the UK.
The industry body applied for the JR late last week, shortly after learning of its unsuccessful attempt to derail Great Britain’s Point of Consumption licensing regime.
The decision to challenge the tax, which is due to come into effect on 1 December and raise around £300m in tax receipts per annum, represents something of a U-turn for the GBGA after the industry body had previously indicated it was unlikely to do so.
However speaking to eGR, a spokesperson for the GBGA said “the story has changed” with the contents of the recent judgment offering the industry body “greater hope on tax”.
Spanish licensing window to re-open
The Spanish regulator is to re-open its licensing window in the coming days after details regarding the regulation of slots and exchange betting as well as the application for general licences were published with as many as a dozen new operators expected to apply.
The licensing window will remain open for a period of 30 days and operators currently licensed in Spain who wish to provide slots and/or exchange betting and businesses not currently active in the regulated Spanish market can apply for a licence.
Market observers estimate the country could see around a dozen new market entrants while a large majority of current licensed operators will apply for a permit to offer slots betting.
Seven days in regulation:
Ireland’s remote betting tax delayed by EC
Ireland’s version of a Point of Consumption betting tax and regulatory regime has been delayed by roughly one month after the European Commission (EC) extended its initial three-month review of the legislation.
The Irish government sent its Betting (Amendment) Bill 2013 to the EC for scrutiny during the summer and had hoped to have received the green light by mid-September, however, the standstill period has since been extended after the EC questioned some of the Bill’s contents.
The issues, which are being addressed by Ireland’s Department of Finance, are not expected to impact greatly on the Bill’s ultimate progress with the standstill period now expected to come to an end before the end of the month.
Belgium to expand online casino market
Belgium looks set to welcome two additional operators into its tightly controlled online gaming market after the country’s recently formed coalition government revealed plans to increase the number of land-based casinos.
According to the government’s coalition agreement, the country will seek to make a further two permits for bricks-and-mortar casinos available, increasing the overall tally from nine to 11.
The move would pave the way for two more online casinos, with remote gaming permits only available to operators operating land-based establishments in the country.
Sweden could end monopoly after EC refers country to Court of Justice
The European Commission’s (EC) decision to refer Sweden to the European Court of Justice (CJEU) over its “non-compliant” online gambling laws has been welcomed by the industry after the announcement prompted the Swedish government into promising an acceleration of planned regulatory reforms.
Last week the EC announced that it had referred Sweden to the CJEU almost a year after it first launched infringement proceedings against the country arguing its current regulations to be uncompliant with EU law.
The EC said Sweden’s regulatory framework, which grants state-owned monopoly Svenska Spel the exclusive rights to operate and advertise online betting and poker services, was inconsistent with its aims of preventing problem gambling and criminal activities and lacks the required state controls.
Senet Group plots major TV campaign
The Senet Group is set to launch a “major” television campaign in January next year and has shortlisted three creative agencies to design and organise its advertising push.
The self-regulatory body, established by Ladbrokes, Coral, William Hill and Paddy Power last month, has shortlisted London-based Karmarama, Grey London and The Corner to run the campaign with a decision expected before the end of the year.
Following the appointment, a “major” advertising campaign is to be launched early next year which will incorporate adverts on national television as well as other media, however details have yet to be confirmed.
Italy online casino market up 8% in September
Italy’s regulated online casino market recorded its sixth consecutive month of year-on-year growth after the country’s licensed operators posted an aggregated gross gaming revenues (GGR) rise of 8% in September.
According to figures seen by eGR, GGR for the market reached 21m for the month, up on the 19.5m posted during September 2013, and continued a run of sustained growth which first commenced over the summer.
The upturn in fortunes comes after Italian regulator AAMS earlier this year struck agreements with a number of software suppliers, such as Playtech, Microgaming, NetEnt and Amaya Gaming, to halt their supply of games to the unlicensed market by the end of the year.
More German licences won’t solve problems, lawyer says
Proposals to lift the cap on the number of sports betting licences on offer in Germany would do little to “correct the faults” of the much criticised German licensing procedure, according to leading German gaming lawyer Martin Arendts.
Recent media reports in the country have suggested that the state of Hesse could remove the licensee cap, making way for more than the 20 recently licensed sports betting firms to operate in the country.
It’s rumoured Hesse prime minister Volker Bouffier could propose to remove the cap, however, the prime ministers of each German state would first have to agree to the move.
Confusion remains over SA gambling board suspension
Confusion remains over last month’s suspension of members of South Africa’s National Gambling Board after a parliamentary committee was yesterday left frustrated in its attempts to solve the issue.
The board’s interim administrator Tumelo Baleni was grilled at a committee meeting yesterday with MPs questioning why several members of the board were removed from their positions.
However Baleni said only trade and industry minister Rob Davies could reveal the information, leading committee chairwoman Joan Fubbs to request that Davies issue an explanation in writing by Friday (17 October).