Regulation round-up 25 February 2014
The biggest regulatory news from the egaming industry in the last seven days (19 February to 25 February 2014)
European Commission moves towards single regulatory model
Executive body appoints PwC to report on how best to coordinate online regulation in Europe
The European Commission (EC) has appointed PricewaterhouseCoopers (PwC) to explore ways in which Europe could move towards a “comprehensive” continent-wide framework for online gambling.
Following a competitive tender process, the Big Four accountancy firm will spend the next ten months preparing a study detailing the regulatory procedures of 32 EU and EEA member states and propose ways in which these could be harmonised.
In compiling the report titled: “Study on the role of regulators for online gambling: authorisation, supervision and enforcement,” PwC will visit the various national regulatory bodies and interview a number of state-owned and commercial operators.
According to the tender document, seen by eGaming Review, the study will seek to standardise the myriad of regulatory and supervisory structures implemented across member states which has led to “ad-hoc” cross-border cooperation.
UK licensing set for World Cup clash
Operators have been urged to start readying their applications for a UK remote operating licence after the Gambling Commission indicated it expects to implement the Point of Consumption regime during this summer’s football World Cup.
The warning came from gaming law firm Harris Hagan who last week hosted a meeting with the UK regulator and a number of other interested parties from within the industry.
The Commission predicted the new regulatory landscape, which will require operators wishing to take bets from British-based customers to obtain a UK licence, is likely to come into effect in early July, although timings suggest it could be anytime between mid-June and mid-July.
Seven days in regulation:
Spain’s online slots bid comes under fire
Spain’s proposed online slots regulation could cause “enormous damage” to land-based betting establishments, the Spanish Gaming Business Council has warned.
Alejandro Landaluce, director general of Spanish Gaming Business Council (CEJUEGO), an association comprising eight leading land-based operators, last week wrote to the regulator (DGOJ) in order to criticise the draft ministerial order released last week.
The draft outlined plans to place a requirement on operators to inform customers of the time and money spent at the end of each session of play as part of a range of player protection measures.
Analysis: Playtech prepares for UK tax hit
While British-facing operators will undoubtedly feel the brunt of the looming UK Point of Consumption tax, little thought has been spared for how suppliers may be forced to contend with the issue.
Software supplier Playtech, despite its scale, admitted last week that is not immune to such market changes. Playtech CEO Mor Weizer told eGaming Review that while the company has no need to compensate for the tax, the regulated market strategy it has been pursuing over the last 18-24 months will become even more important.
A large proportion of the supplier’s business is UK-facing and most of its largest licensees “ Ladbrokes, Gala Coral, Paddy Power and Betfair “ are all likely to come under increased pressure to perform as efficiently as possible under the new regulatory regime and subsequent 15% tax.
California online poker back on the agenda
Two new bills seeking to regulate online poker in California were submitted to the legislature including legislation backed by a coalition of Californian tribes led by the Pechanga Band of Luiseño Indians.
The poker-only bills, AB2291 and SB1366, were introduced on Friday and met the 24 February deadline for legislation to be entered for the state’s 2013-14 legislative session.
The AB2291bill has been supported by a consortium of eight tribes, including the Agua Caliente Band of Cahuilla Indians and the Temecula Band of Luiseño Mission Indians, and would allow for unlimited ten-year non-transferable licenses featuring a US$5m licence fee.
PokerStars secures Bulgarian licence
Pokerstars is preparing to go live in the ring-fenced Bulgarian market after receiving its remote operating licence from the Bulgarian regulator last week.
Last month, eGaming Review reported that PokerStars, along with Betfair, had applied to Bulgaria’s State Commission on Gambling (SCG) for an operating licence after the country revamped its taxation model at the start of the year in order to attract foreign investment.
And while Betfair still waits to have its licence rubber-stamped, PokerStars will become the third operator to legally enter the market and only the second since the switch to a 20% tax on gross gaming revenues when it goes live in the coming weeks.
Q&A: Justin Franssen analyses Dutch regulation
eGaming Review (eGR): What should operators be doing now if they wish to enter the Dutch market when it opens next year?
Justin Franssen (JF): Operators which are currently accepting Dutch customers should adhere to the enforcement policy based on the prioritisation criteria: i.e. no Dutch language and no dot.nl top level domain name for the remote gaming website and no RTV and print media advertising directed at the Netherlands.
This is important since there is a possibility that operators that fall foul of these criteria will be confronted with enforcement measures, which could have a detrimental effect on a future remote gaming licence application.
Danish online casino revenues reach record high
The Danish online casino market recorded its strongest performance since the re-regulation of the egaming market after a 10.6% year-on-year rise in gross gaming revenue (GGR) during Q4 2013.
According to figures released by the Danish Gambling Authority (DGA), online casino revenues for the three months rose from DKK235m (£25.9m) to DKK260m (£28.7m), and contributed to an overall market total of DKK640m (£70.5m) for the quarter.
However, the country’s online poker market continued to struggle during the period after reporting an 18.2% year-on-year decrease in GGR from DKK55m (£6m) to DKK45m (£5m).
Poll: Would regulatory alignment be a good thing?
Last week eGaming Review reported that the European Commission had appointed Big Four accountancy firm PwC to explore ways in which the continent’s varying egaming regulatory models could be harmonised.
The ten-month study will see PwC visit 32 EU and EEA member states in order to review their current frameworks and supervisory processes.
The make-up of regulatory frameworks across Europe currently vary from country to country, something which has made it increasingly difficult for operators to remain fully compliant, while licence applications processes can often be repetitive and time consuming.
UK regulator suspends Bodugi licence
The UK Gambling Commission has suspended the operating licence of real-money social sports betting company Bodugi Technology following complaints players have been unable to withdraw funds from its website.
The regulator said it had suspended the licence as an “interim measure” pending a review and in addition to complaints about fund withdrawals, said the decision was also taken due to a “lack of response” to the Commission’s requests to discuss its concerns.
A spokesperson for the UK Gambling Commission told eGaming Review this morning that there was no set timetable for completing the review, which comes under section 116 of the Gambling Act 2005.
Poll results: Readers split on in-app advertising benefits
eGaming Review readers are divided as to whether in-app gambling ads will become an effective marketing platform for operators, following Apple’s decision to relax its advertising rules.
The end to a ban on in-app adds means gambling companies will now be able to advertise on the technology firm’s iAd platform for the first time.
Bwin.party became the first operator to begin testing the viability of advertising on the platform, the results of which will be reviewed at a later date, but it is not yet known whether additional egaming operators will also follow suite.