Regulation round-up 29 May 2012
The biggest regulatory news from the egaming industry in the last seven days (23 May to 29 May 2012).
Four additional operators secure Schleswig-Holstein licence
Seven licences awarded to date – first batch to be issued since the Land’s ruling party loses state election.
Bwin.party, Bet365, Betclic Everest subsidiary bet-at-home and Malta-licensed operator Tipico have become the latest companies to receive a Schleswig-Holstein licence, allowing them to offer sports betting in the jurisdiction with immediate effect, with licences for poker and casino expected to be awarded “in due course.”
The issuing of the six-year licences also makes the four companies the first to be approved since the ruling Christian Democratic Unionist party (CDU) lost a state election in the Land earlier this month, taking the total number of licensed egaming operators in the jurisdiction up to seven.
Less than a week before the CDU’s election failure, Betfair, mybet and Die NordwestLotto were announced as the first three operators to be granted a license in Schleswig-Holstein, and following today’s news another 24 operators are still awaiting news on their own sportsbook appilcations, with a further 17 having applied solely for poker and casino approval.
Despite the recent political change in the Land, which 47% of eGaming Review readers believed would bring about a delay in the market opening, bwin.party remained confident that its application would be approved and claimed in its first-quarter interim management statement last week that it expected a licence “shortly”.
Breaking: Operators rush to meet Spain tax demands
With bwin.party and Sportingbet having reached agreements to repay back-tax following claims issued by the Spanish Tax Authority, a number of European operators have confirmed that they are either in advanced discussions to pay their own bill, or have already come to a settlement over unpaid tax from dot.com operations in the market.
A spokesman for Ladbrokes has confirmed that the company has already “reached a settlement” with the Tax Authority, but “given [Ladbrokes’] relative size in the online space in Spain it is not a material number when compared with bwin.party and Sportingbet.”
888 confirmed to eGaming Review today that they are in discussions with the authority, but remain “unsure whether payments need to be made before, alongside or after the issuing of licences.” A spokesman for the operator confirmed that following self-assessment of the period in question “ January 2009 to May 2011, when operators began paying 25% gross profit tax on activities in the Spanish market “ it expects to pay a sum “considerably less than bwin.party”, which will be below 20m and potentially closer to 10m “ an estimate backed up by analyst Nick Batram of Peel Hunt yesterday.
Exclusive: Regulator explains Spanish back-tax case
The general director of the Spain’s General Directorate for the Regulation of Gambling (DGOJ) has said that the back-tax case against a number of European operators is a “completely separate process” to the awarding of egaming licences, but that the regulator could be forced to deny companies licences based on the tax authority’s instructions “ despite its lack of involvement in the case.
Enrique Alejo’s comments follow the news that a number of European operators are preparing to settle the claims brought for the payment of back-tax by the Spanish tax authority.
Speaking exclusively to eGaming Review, Alejo revealed that the decision to claim tax on egaming operations from the period beginning January 2009 and ending in May 2011 was “an independent case brought by the Spanish tax authority,” rather than one supported or initiated by the DGOJ.
EC approves Italian exchange decree
talian-licensed operators could soon be able to offer exchange betting in the jurisdiction after the European Commission approved January’s ministerial decree.
The EC decision took longer than the standard three months following an opinion from Spain, but legal blog GamingTechLaw suggests that the EC approval represents a green light for the Italian regulator AAMS to introduce legislation.
Speaking to eGaming Review at the time the decree was introduced, AAMS’ head of remote gaming Francesco Rodano explained that the decree would return to the Italian administration for further comment after receiving clearance from the EC.
Seven days in regulation
Bwin.party prepares Spanish back-tax payment
Bwin.party has announced its intention to pay up to 33m in back-taxes in order to facilitate its entry into the Spanish market, the operator has confirmed in a statement this morning.
The figure, which was arrived at following the completion of a self-assessment in line with requirements issued by the Spanish Tax Authority, includes surcharges and interest of 8m on top of a payment of 25.6m for the two-year period between 2009 and 2011.
Sportingbet agrees to pay Spanish tax bill
Following bwin.party’s announcement that it will repay up to 33m in back-tax to the Spanish Tax Authority, Sportingbet has confirmed that it has also reached a deal to settle its bill for a total sum of 17.2m.
The operator has confirmed that it will make a payment of 14m “plus surcharges and interest of up to 3.2m” after completing a self-assessment tax return covering the period from January 2009 to May 2011, after which it began paying tax on its operations in the market.
888 latest operator to settle Spanish tax bill
888 has become the latest operator to settle its Spanish tax bill following last week’s announcements that bwin.party, Sportingbet and Betfair have reached agreements with the Spanish Tax Authority to pay back tax on operations between January 2009 and May 2011.
The Gibraltar-licensed operator has completed a self-assessment tax return, and will make a one-off payment of 7.4m, with an additional 1.3m in surcharges and interest. The total payment of 8.7m is smaller than expected, with a spokesman for 888 estimating a settlement between 10 and 20m when contacted by eGaming Review last week.
Australia could regulate in-play in six months
Online in-play betting could soon be regulated in Australia as soon as November, according to local media reports.
National newspaper The Daily Telegraph claims to have received a briefing sent by the country’s Federal Government to members of the gambling industry, which gives a six to 12 month timeframe for the approval of online in-play betting, to supplement Australia’s existing egaming industry.
Poll: Will IGA review see Australia legalise new products?
Last week a report leaked to Australian newspaper The Daily Telegraph suggested the country could legalise in-play betting as early as November, with a five-year trial of online poker also mooted.
The report was said to be from the Department of Broadband, Communications and the Digital Economy to egaming executives, announcing a six to 12-month timescale for the regulation of live betting, opening up the country’s online gaming market and potentially even leading the way for legalised online poker and casino in Australia.
LGA issues statement on Purple Lounge closure
The Maltese Lotteries and Gaming Authority (LGA) has announced that after the termination of Media Corp subsidiary Purple Lounge’s online gambling licences in April, it will be unable to assist players experiencing difficulties when dealing with the company.
Purple Lounge, the company’s egaming brand offering casino and poker, was “temporarily” shut down in April this year, with Media Corp blaming “negative press” and a five year-old legal claim for the site’s heavy losses, which led to the closure. The company had reportedly invested £0.9m in the brand, with continuing investment in the brand becoming increasingly unsustainable.
Pinnacle receives Alderney licence
Sports betting and casino operator Pinnacle Sports has been awarded a full egaming licence by the Alderney Gambling Control Commission (AGCC).
The company, which will also retain its existing Curaçao licence, has said the approval “Rubber-stamps months of due diligence of Pinnacle Sports’ betting and casino products.”