Regulation round-up 2 December 2014
The biggest regulatory news from the egaming industry in the last seven days (26 November to 2 December 2014)
Apple makes in-app betting U-turn
Technology giant backtracks over demands affiliates must obtain a gambling licence to offer in-app betting
Affiliates can once more offer an in-app betting via iOS apps after Apple withdrew its insistence that companies must hold an operating licence to offer the service.
In September, eGR reported that Apple had asked affiliates to withdraw in-app betting functions from iOS apps, while also refusing to accept submissions for new apps or process app updates containing in-app betting from those without an operating licence.
Apple referred affiliates to its terms and conditions, more specifically point 20.5 which states: “Apps that offer real money gaming or lotteries must have necessary licensing and permissions in the locations where the App is used⦔
However, a number of affiliates sought legal advice and argued that although bet slips were internal to their app, it would be accessing external servers belonging to licensed operators in order to execute bets.
William Hill terminates Dutch affiliate marketing
William Hill has written to its Netherlands-facing affiliate partners requesting they terminate all marketing activities in the country.
Last week the UK operator sent an email, seen by eGR, to members of its Affiliates United programme requesting they “remove immediately” all William Hill links and promotions from their websites.
“This decision was taken because we do not want to jeopardise our (future) licence in the Netherlands,” the email said. “I trust that when the market is licensed in the Netherlands, we can continue our cooperation,” it added.
Seven days in regulation:
UK Point of Consumption tax goes live
The online gaming industry this week entered into a new era of higher taxes and lower margins after the UK Government implemented its controversial Point of Consumption (PoC) tax, despite a legal challenge to the levy still on the cards.
According the Government, the new levy, which will see operators hand over 15% of gross profits derived from UK-based customers, has been introduced to “level the playing field” between UK and offshore operators.
“The new rules will provide a fairer tax system for all gambling operators,” Priti Patel, Exchequer Secretary to the UK Treasury, said.
Poland threatens to imprison players using unlicensed sites
Polish authorities have warned online gamblers they face being hit with hefty fines and a potential prison sentence should they be found guilty of playing on sites run by unlicensed foreign operators.
The official warning, issued by the Polish Ministry of Finance, said players risk a “severe financial penalty” and “imprisonment of up to three years” if found to be “participating in games of chance or mutual betting organized outside the country”.
According to the Ministry, the Polish regulator has information on more than 24,000 players who it believes have been participating in unlicensed gambling, including 17,700 players who have won a total of PLN27m.
New Zealand to crack down on offshore gambling
New Zealand is to launch a clampdown on offshore gambling operators in the country stating it was a “complex” problem that needs resolving.
In a speech made to New Zealand’s Racing Board, Racing Minister Nathan Guy said he will make tackling offshore operators his “number one priority” for his coming term and estimated New Zealand’s offshore market to be worth up to NZ$300m.
“I want to be clear: it is a problem, it is complex, but I believe we should be able to make changes and I am committed to making the necessary changes,” Guy said.
GB regulator reports 22% surge in online gambling
Gross gaming yield from operators licensed by Great Britain’s Gambling Commission surged 22% in the 2014 financial year, figures released have revealed.
Data released by the regulator shows GGY topped £1.1bn in period spanning April 2013 to March 2014, up almost a quarter on the £932m recorded across the same period in 2012-13.
Sports betting continued to be the principle earner for GB licensees, equating to £981m of total GGY, equivalent to approximately 86% of the total figure.
Health Lottery ad “irresponsible”, says ASA
The Health Lottery has been reprimanded by the Advertising Standard Authority (ASA) for encouraging irresponsible gambling through an advert it ran on the Demand 5 video streaming service.
The advert was promoting the Health Lottery’s online direct debit offer, which offered players the first two weeks’ of play for free if they paid for their tickets monthly.
A voiceover on the ad stated: “This August save big money with the Health Lottery and our fantastic online direct debit offer. Just sign up online to play monthly by direct debit and we’ll refund your first two weeks’ play.”
Dutch State Lottery cleared of irregularities
Dutch State Lottery operator Staatsloterij has been cleared of alleged irregularities in its drawing process following allegations its lottery results were open to manipulation.
In September reports emerged in the Dutch press alleging that processes at Staatsloterij supplied by Intralot were insecure, and Dutch newspaper Volskrant cited four former Intralot employees as having said it would be possible to manipulate the lottery’s results.
Staatsloterij dismissed the speculation, but it sparked an investigation from Dutch regulator Kansspelautoriteit and independent third-party Software Improvement Group into its drawing procedure.