Regulation round-up 26 May 2015
The biggest regulatory news from the egaming industry in the last seven days (20 May to 26 May 2015)
Dutch tax rate likely to change, says lawyer
Robin de Wit of DLA Piper says increase to proposed 20% rate is on the cards following a bill hearing held last week
The proposed 20% rate of online gaming tax for the soon-to-be regulated Dutch market is likely to be increased in order to ensure both the remote and land-based industries are taxed at the same level, according to DLA Piper gaming lawyer Robin de Wit.
De Wit spoke to eGaming Review after the Dutch House of Representatives last week hosted a hearing on its Remote Gambling Bill in which both the Netherlands Gaming Authority (KSA) and European Commission (EC) stressed the importance of implementing the much awaiting egaming regime without further delay in order to protect the country’s online gamblers.
As well as the KSA and EC, the hearing saw representatives from Playtech, PokerStars and other industry experts participate in a number of sessions including discussions on responsible gambling and taxation.
During the meeting, current proposals for a 20% tax on online revenues, lower than the current 29% rate for land-based operators, was met with resistance from various land-based stakeholders, which de Wit said could well lead to amendments to the final bill.
Kambi under investigation in the Philippines
Sportsbook platform provider Kambi strongly denied any allegations of wrongdoing after revealing it is being investigated by authorities in the Philippines over alleged “illegal gambling activities”.
In a statement released last week, the firm said it had been served notice of an ongoing investigation by the Philippines National Bureau of Investigation (PNBI), but said it was confident there were no activities occurring which are contrary to law.
Kambi’s Manila operation provides some back-office functions for its sportsbook platform and the firm is a member of the government-run Philippines Economic Zone Authority, which Kambi said incentivises businesses “on a fully transparent basis” to run operations in the county.
Seven days in regulation:
UK online gambling up 50% in past six years
UK online gambling participation has increased by 50% over the past six years in part due to a sharp rise in online betting among the 18-34 age group, according to a study published by the Gambling Commission last Tuesday.
The Trends in Gambling Behaviour 2008-2014 telephone study showed participation in remote gambling, defined as gambling once in a four-week period, had increased from 9.7% in the 12 months ended December 2008 to 14.9% in 2014.
“Participation in remote gambling is growing quickly, and appears to be reaching new audiences,” the study said in its conclusion.
Operators subject to new money laundering directive
The European Parliament has passed a new anti-money laundering (AML) directive which could have major implications for egaming operators within the EU.
The news was welcomed by the European Gaming and Betting Association (EGBA) as it means that operators who operate across Europe will now have to adhere to a single, unified AML directive, instead of country-by-country legislation.
“EGBA has actively engaged with the EU institutions to include online gambling in the new directive,” Maarten Haijer, secretary general of EGBA, said. “It should ensure that EU online gambling providers now have one rather than 28 sets of AML rules to comply with to provide their services in the EU,” he added.
Unlicensed operators taking 14% of Danish revenues
Unlicensed operators are taking 14% of Denmark’s online gambling spend, a new study from the Danish Online Gambling Association (DOGA) has revealed.
The study, conducted by Myresearch on behalf of DOGA at the end of April and the beginning of May, showed that despite regulation, unlicensed operators still accounted for a substantial portion of the Danish market.
The problem is most acute in the poker and casino verticals, in which one in four customers had played with unlicensed operators with around 17% of Denmark’s DK1.1bn (£104m) casino spend going to the black market.
Lithuania pushes for local land-based requirement
Lithuanian authorities have notified the European Commission (EC) of proposed amendments to its gambling law that would require online operators to establish a land-based presence in the country.
In its notification to the EC, Lithuanian authorities said that current gambling law failed to establish whether licensed land-based operators could offer their services online.
Despite being a grey market, the report also noted that online gaming had “become widespread practice” in Lithuania, particularly among operators who did not hold a land-based licence.