Regulation round-up 26 April 2016
The biggest regulatory news from the egaming industry in the last seven days (20 April to 26 April 2016)
Belgium-licensed operators face new 21% sales tax
Federal government will discuss proposals to introduce a new 21% federal VAT on gambling
Online operators in Belgium could face a new 21% nationwide sales tax with the country’s federal government due to discuss proposals imminently, eGaming Review understands.
According to sources close to the matter, the country’s Cabinet of Ministers and Prime Minister Charles Michel are set to discuss the tax proposals at a weekly cabinet meeting which could see a bill go before the Belgian Federal Parliament next month and the new levy implemented as early as July.
Earlier this month the Belgian government published its budget plans which included obtaining additional revenue from taxes on online gambling.
The VAT levy would be in addition to the 11% tax online operators already pay on GGR but would exempt the Belgian National Lottery, including its online sportsbook Scooore!, much to the dismay of the gambling industry.
Swedish market “like the Wild West” says gaming chief exec
Sweden needs to fast-track its ongoing regulatory process with current market conditions “like the Wild West” and dangerous for consumers, the CEO of Swedish supplier Play’n GO has said.
Speaking at a gaming summit in Stockholm, Johan Tornqvist said the country can’t afford to wait until after the general election in 2018 to implement new laws, because “rogue operators” are bombarding consumers with adverts at levels that wouldn’t be allowed in mature markets like the UK or Denmark.
“This blind rush to increase market share ahead of the implementation of legislation is dangerous for the consumer, which underlines the need to bring in a regulatory framework as soon as possible,” Tornqvist said.
Seven days in regulation:
GVC shrugs off class action threat
GVC Holdings is playing down the threat of a potential class action lawsuit being filed against the company as its protracted dispute with Canadian marketing firm 37 Entertainment (37E) rumbles on.
Litigation specialist law firm Findlay McCarthy last week revealed it had been retained to determine whether it should seek reimbursement on behalf of all Canadian residents who had placed bets with GVC brand Sportingbet and affiliated sites from 2005 to 2015.
GVC was last year alleged to have reneged on a joint-venture agreement with 37E, which led to the marketing company filing a request for arbitration with the International Chamber of Commerce in London in pursuit of a multi-million dollar sum in lost earnings.
Greece to vote on 35% GGR tax this week
Greece’s long journey towards a fully-regulated online gambling market took another twist last week as the government revealed plans for a five percentage point rise in the GGR tax to 35%.
The proposed rise in taxes is expected to be voted on this week and will apply to all gambling products.
The Greek gambling market primarily consists of OPAP’s offline monopoly and 24 online operators on interim licences currently paying a 30% GGR levy.
CrownBet found guilty of illegal advertising
Australian bookie CrownBet has been convicted for breaking New South Wales’ (NSW) gambling advertising rules and forced to pay more than AU$20,000 (?11,000) in fines and legal costs.
The Melbourne-based operator was last week prosecuted by the Liquor and Gaming NSW department and found guilty of five offences for publishing illegal betting advertising on its website to NSW residents.
NSW’s regulations prohibit operators from conducting any advertising deemed to incentivise state residents to participate in gambling activity, including opening a new account.