Regulation round-up 27 August 2013
The biggest regulatory news from the egaming industry in the last seven days (21 August to 27 August 2013)
UK tax ‘counter productive’ says Gibraltar regulator
Gibraltar gambling commissioner Phill Brear says UK government’s tax proposals could damage the UK gambling industry
Gibraltar’s gambling commissioner has labelled the UK government’s attempt to introduce new regulation on the remote gambling industry as “counter-productive”.
The UK Treasury recently released a draft Bill which laid out plans to tax all remote gaming revenues derived from UK customers at 15% from 1 December 2014.
However, Phill Brear told eGaming Review the government proposals illustrate a lack of understanding about e-commerce which will only serve to damage existing UK companies.
“[The proposals] will dilute and damage existing UK companies, jobs and investment, and they are a poor deal for consumers as they increase prices while diminishing the quality and safety of the UK market,” he said.
Analysis: What next for Greece?
With equity fund Emma Delta’s purchase of the Greek government’s 33% stake in gambling monopoly OPAP nearing completion, legal challenges and operator withdrawals are occurring in equal measure.
The deal is still to be ratified and cleared by the Greek courts, but it would appear that not even the dismissal of the Hellenic Republic Asset Development Fund (HRADF) chief Stelios Stavridis over ‘ethical concerns’ is likely to disrupt the process.
Opposition to the sale has been forthright and widespread. Online gambling lobbying group the Remote Gambling Association (RGA) announced plans to sue the Greek government earlier this month, saying an injunction on the privatisation was one weapon at the trade body’s disposal.
The first milestone for the RGA is the Greek Court of Audit hearing, scheduled to take place next month. The court’s view of the deal will shape any future challenges, but with such political weight behind the privatisation efforts, is any fight likely to be in vain?
Seven days in regulation:
PoC tax objections likely to fail
Offshore operators face a “very difficult challenge” if they attempt to overturn a UK government bill to introduce a point of consumption (PoC) tax, according to a leading gaming lawyer.
The UK Treasury has released a draft Bill which laid out plans to tax all remote gaming revenues derived from UK customers at 15% from 1 December 2014.
A challenge to the Bill is expected to come in the form of the Gibraltar Betting and Gaming Association after in June it was revealed 23 of its members contributed more than £500,000 in order to mount a legal challenge.
Poll results: Operators could return to UK following tax implementation
The introduction of a UK remote gaming tax could see a move onshore by major egaming operators, according to eGaming Review readers.
Recently, the Treasury announced plans to introduce a 15% levy on all remote gambling profits stemming from UK-based customers including, for the first time, a tax on online gaming (poker, bingo and casino).
With what is set to be the biggest change in industry since the introduction of 2005 Gambling Act, last week’s poll asked what will be the main effect of the planned December 2014 tax.
More than a third (34%) of respondents indicated that they expect to see some of the major egaming operators return to the UK once the levy is introduced.
California poker effort amended as “urgency” bill
A bill proposing the legalisation of online poker in California has been reclassified as an “urgency” bill by its sponsor Senator Lou Correa.
The change means SB 678 now requires a two-thirds majority to pass in both houses and it would be effective immediately. However, the bill will not be introduced during the current legislative session.
“In order to protect the interests of Californians who play internet poker games and to ensure that people play fair games, that the state realises the revenues, and that suitable persons operate intrastate internet poker games, it is necessary that this act take effect immediately,” the bill states.