Regulation round-up 31 July 2012
The biggest regulatory news from the egaming industry in the last seven days (25 July to 31 July 2012).
Schleswig-Holstein abolishes regime in favour of State Treaty return
Just two months after awarding seven licences to private operators breakaway state’s new government opts to rejoin country’s Interstate Gambling Treaty.
Schleswig-Holstein is to abolish its own online gambling laws in favour of rejoining the country’s controversial Interstate Gambling Treaty just two months after it awarded the first of seven licences to private operators including bwin.party, Betfair and bet365.
The breakaway state, under the previous political control of German Chancellor Angela Merkel’s CDU party, had long fought to establish its own regulatory and tax regime, finally gaining European Commission approval and awarding its first three licences on 3 May this year.
However, following a narrow election defeat at the hands of its rivals the SPD that then formed a coalition government with the Green party and a local Danish speaking party, the state has now said it will seek to join the Treaty at a cabinet meeting in the capital, Kiel, next Wednesday August 1.
Ralf Stegner, head of the SPD party in Schleswig-Holstein and chairman of the SPD parliamentary group, said he was “delighted” that Schleswig-Holstein with its new government could now “leave the distractions and the isolation in which the old black and yellow coalition has driven this country”, calling it an “important sign” of the will to co-operate with all other regions.
Treasury should consult industry over tax rate, says Committee
An influential government select committee has welcomed the move to regulate egaming on a point of consumption basis but recommended the Treasury further consults the industry to establish the “correct level of taxation”, taking into account the need to encourage companies to “accept” UK regulation and taxation and to “discourage the formation of a grey market”.
In a report published this morning, that focuses largely on the land-based and retail gambling sectors as well as the role of the Gambling Commission, the Commons Culture, Media and Sport Committee said the Gambling Act 2005 had resulted in “numerous inconsistencies” and is not sufficiently evidence based.
The Committee also slammed the Gambling Commission calling it an “overly expensive, bureaucratic regulator” and suggesting it had “not gone far enough”, in particular, in its efforts to reduce its operating costs, adding that it would also call for an immediate independent review of its expenditure “after a new system for remote licensing is in place, with a view to reducing costs and the regulatory and fees burden imposed on the industry”.
Opinion: UK thinking on egaming more confused than ever
No area is more beset by uncertainty than online, says Jason Chess, partner at law firm Wiggin as he gives his take on this week’s House of Commons Committee on Culture, Media and Sport report on the gambling industry.
Seven days in regulation:
Draft tribal gaming bill introduced
Native American groups moved to protect their interests ahead of state-by-state egaming regulation yesterday when the Senate Committee on Indian Affairs (SCIA) revealed the first draft tribal gaming bill.
Entitled the Tribal Online Gaming Act of 2012, the bill is designed to help ensure tribes are well positioned to benefit from legal online gambling in the US, without compromising their revenues and sovereignty. The proposals were unanimously approved by a number of tribal leaders gathered at the National Indian Gaming Association’s (NIGA) legislative summit in Washington D.C.
At the hearing, the chairman of the committee, Daniel Akaka explained the draft was “intended to further the dialog with tribes, my colleagues in the House and Senate and other affected stakeholders”.
Shuffle Master receives Nevada online poker licence
Shuffle Master has become the third company to receive an online poker licence in Nevada after receiving final approval from the Nevada Gaming Commission.
The company will act as an interactive gaming system manufacturer and service provider, offering land-based casinos a B2B online poker solution.
The gaming manufacturer joins Bally Technologies and IGT as successful licence applicants. Shuffle Master will now submit its technology and systems to either BMM or GLI, two licensed independent testing laboratories (ITLs) appointed by the Nevada Gaming Control Board (GCB), for thorough checks before going live later this year.
Lipparelli: First Nevada poker operators to be licensed in 60-90 days
The first licences allowing operators to offer online poker in Nevada will be granted within the next three months, according to Nevada Gaming Control Board Chairman Mark Lipparelli (pictured).
Speaking at the final scheduled Nevada Gaming Policy Committee yesterday, chaired by Governor Brian Sandoval, Lipparelli said the first wave of real-money poker operators would be licensed in 60 to 90 days. The applicants, which are currently restricted to Vegas casinos, will then have to go through a stringent system testing process before going live. He did not specify which B2C brands would be first to offer online poker.
AGCC enforces fund segregation
The Alderney Gambling Control Commission AGCC) has announced that its Category A egaming licensees will be required to hold funds in segregated bank accounts by the end of the year.
It is among several changes on the AGCC’s amended guidelines to come into force next year, alongside a requirement for licensees to submit financial reports every month rather than every quarter.
While the rules come into force immediately, affected operators will be forced to submit a detailed plan to the commission by the end of October, explaining how they intend to fall in line with the regulations. They will then be required to comply in full by 31 December.
Sports remains strong in ARJEL analysis
A strong sports betting market helped mask deficiencies in poker as French regulator ARJEL reported a slight increase in gross gaming revenue in its market analysis for the three months ended 30 June.
The overall total of 170m marked an increase of 8.3% compared to the corresponding period in 2011, with sports (up 39% to 35m) and horse betting (up 20% to 65m) overshadowing the decline in poker (down 11% to 70m).
Svenska Spel chief backs “thorough” Riksrevisionen report
Lennart Käll, chief executive of Swedish monopoly operator Svenska Spel, has come out in support of last month’s report from the country’s audit office (Riksrevisionen), describing it as “a good, and in large part a thorough report”.
Käll was speaking following the publication of the operator’s H1 results, in which it recorded a 2.7% increase in profit after tax, while net gaming revenue rose by the same percentage to SEK4.78bn.
He said the report contained “a number of recommendations that we should take to heart,” adding that “I hope this report can lead to a good debate about the gaming market and what kind of society we want”.
Titan to complete France exit
Titan has become the latest operator to pull its poker offering from the French market, the iPoker member has confirmed.
Players will be required to withdraw their balances from the site by the end of the month, after which time they will be unable to access their accounts.