Regulation round-up 24 February 2015
The biggest regulatory news from the egaming industry in the last seven days (18 February to 23 February 2015)
Italy to ditch turnover levy in major tax overhaul
New law, expected to be passed within weeks, will see end of turnover levy and all verticals taxed at a maximum of 20% GGR
Italy’s online tax regime looks set to be overhauled within weeks in a boost for bingo and sportsbook operators after the country’s government unveiled a proposal to tax all online games at the same rate of gross gaming revenues (GGR).
The draft primary law, which is expected to be passed by mid-March, will empower regulator AAMS to introduce a blanket 20% GGR tax across all verticals, with a provision for this to be lowered at a later stage should the market be deemed to be underperforming.
The switch would mean the likes of bingo, sports betting and poker tournament games would all be moved to the revenue-based tax currently enjoyed by casino, cash poker and exchange betting, rather than their current turnover-based regimes.
And the regulator will be able to begin implementation of the new regime as soon as the law has been passed with no time constraints or deadlines contained within the decree.
Swedish re-regulation facing delay
Sweden’s plans to push ahead with a re-regulation of its online gambling market look set to be delayed after a senior politician said reforms would have to be put on hold.
In a message delivered at last week’s Nya Spel-Sverige conference, minister for public administration Ardalan Shekarabi said a national consultation on gambling regulation would have to be delayed until after its Spring Budget has been agreed, which is expected to be in April.
Shekarabi also discussed regulatory aspects that would require consideration prior to any debate, in particular the country’s attitudes to problem gambling and gambling advertising in the country.
Seven days in regulation:
South Africa remote gambling bill tabled in parliament
A bill aiming to regulate South Africa’s remote gambling market was tabled in the country’s parliament last week but faces significant challenges if it is to be passed.
The private member’s bill was tabled by Geordin Hill-Lewis of the country’s opposition Democratic Alliance party and sets out to legalise and regulate all forms of online gambling in the country via the introduction of a licensing framework.
The bill, essentially the same one tabled last year, was revived by Hill-Lewis last month and aims to establish a licensing model managed by both provincial licensing authorities and a national gambling board.
Mr Green eyes UK push as tax charge hammers 2014 profits
Mr Green is eyeing a UK push after the operator saw its 2014 EBITDA almost wiped out by its Austrian tax dispute despite a 36% surge in revenues, according to a trading update released on Friday.
The casino operator reported EBITDA for the full-year period was SEK22.8m (£1.75m), a figure significantly impacted by a SEK108.1m (£8.5m) charge in Q4 as part of its ongoing dispute with Austrian tax authorities.
Mr Green confirmed it was to take make the tax provision earlier this month but outlined its intent to contest the charge in both Austria’s constitutional court and the European Court of Justice, claiming the tax to contravene Austrian legislation and EU directives.
No Pistorius regrets, says Paddy Power
Paddy Power said it made the “right decision” when electing to take bets on the Oscar Pistorius murder trial and would “100% do it again” despite the UK Advertising Standards Authority (ASA) revealing today it produced the most complained about ad of all time.
The Irish bookmaker came under fire last year after it opened a book on the trail of the Paralympian amputee and subsequently published an advert which offered punters their “money back if he walks”.
The ASA said the advert, which was published last February, attracted a record of 5,525 complaints last year – roughly three times more than the next highest offender.
PokerStars joins push for egaming regulation in Germany
PokerStars has joined the German Association of Telecommunications and Media (DVTM) to support its bid to establish an egaming regulatory and licensing framework in Germany.
Germany’s controversial Inter State Treaty bans all forms of online gaming in its 16 jurisdictions, despite previous attempts by the state of Schleswig-Holstein to break away from the agreement.
Schleswig-Holstein denounced the treaty back in 2012 and established its own regulatory framework and handed out 64 casino game licenses to operators.