Regulation round-up 22 July 2014
The biggest regulatory news from the egaming industry in the last seven days (16 July to 22 July 2014)
Gambling Commission advertising stance fuels fresh criticism
Gambling Commission admits argument can be made for unlicensed operators to advertise in Great Britain
The row which has engulfed the Gambling Commission’s attempts to prevent unlicensed operators from advertising in Great Britain took another twist today after the regulator was accused of undermining one of the main objectives of its forthcoming licensing regime.
In response to questions raised over its advertising policy, the Commission suggested a legal argument could be made which would allow unlicensed operators to advertise in Great Britain provided they do not transact with British-based customers.
However, in doing so the regulator also stressed the legal risks involved in such an approach and warned that blocking technology was “not 100% reliable and that it is possible for consumers to circumvent blocking measures”.
And it now appears overseas operators using globally televised British sporting events to promote their products to foreign markets could potentially continue to do so providing their products aren’t available to customers in Great Britain.
Dutch regulator fires new warning to unlicensed operators
The Dutch Gaming Authority (Kansspelautoriteit) has warned sports betting firms that will continue to monitor what it considers to be illegal marketing activity in the country after a successful crackdown during the World Cup.
Following a spike in marketing activity ahead of the tournament, eight online sportsbooks received a letter in June warning them that advertising to Dutch residents is illegal under the Gaming Act.
Today the regulator reinforced this message, explaining that it “continues to monitor everything, including the Tour de France” and that any firm breaking the law could face implications when they seek a licence in the country at a later date.
Seven days in regulation:
British regulator responds to GBGA legal threat
The UK government and Gambling Commission has responded to the Gibraltar Betting and Gaming Association’s (GBGA) threat of a legal challenge to the recently passed Gambling Bill.
The GBGA wrote to both parties late last month to request an urgent review of the Bill, which is set to see Great Britain adopt a Point of Consumption-based regulatory framework on 1 October.
The industry body, backed by a number of its members such as 32Red and 888, had warned the two parties that failure to respond to its request by the extended deadline of 16 July would leave it with little alternative but to seek a judicial review.
Italy sportsbook revenues offset “collapsing” poker market
Italy’s “collapsing” online poker market saw revenues fall by almost a third last month although the World Cup brought a timely boost to the country’s remote sports betting market.
According to June’s figures, seen by eGaming Review, poker’s performance continued to suffer with cash game stakes down by more than 100m to 295m, a 30% year-on-year drop.
Tournament stakes slipped 26% year-on-year to 48m compared to 65.1m in June 2013, as PokerStars continued to dominate both markets with a more than 50% share of cash game and tournament stakes respectively.
Amaya’s Rational Group deal sanctioned by French regulator
Amaya’s acquisition of the Rational Group has been sanctioned by the French regulator ARJEL after it agreed its licence to operate in the country should remain intact.
Reel Malta Limited, the holding company and licence holder for pokerstars.fr, notified the regulator on 13 June “ the day after the deal was first announced “ that a change of ownership was to take place.
ARJEL subsequently invited the company to re-submit its licence application and Reel Malta complied, submitting the application on 23 June followed by additional evidence to answer questions raised by the regulator.
Hungary regulator blocks major online gambling sites
The Hungarian Gaming Supervision Department has added a number of major operators including bwin.party and bet365 to its recently drawn up blacklist of online gambling sites as it prepares to launch new egaming regulations.
The two operators were added to the list of banned sites last week, joining a list of more than ten well-known European gambling brands including Ladbrokes, Betsson, Betclic and Unibet.
However, a spokesperson for one operator, which did not want to named, told eGaming Review that it was “surprised and disappointed that the blocking has been announced prior to the regulations being finalised and prior to operators who wish to apply for a license having the opportunity to do so”.
New Jersey egaming revenues contract again
Online gaming revenues in New Jersey fell for a third consecutive month in June, according to figures released by the state’s Division of Gaming Enforcement (DGE).
Total revenues were down 9.5% month-on-month to US$9.5m, with $2m coming from online poker and $7.5m from online casino.
The Borgata continued to lead the way with its platform partner bwin.party, generating gross gaming revenue (GGR) of $3.4m for the period, down 15% on May with $1m coming from poker and $2.4m from casino.