Regulation round-up 3 September 2013
The biggest regulatory news from the egaming industry in the last seven days (28 August to 3 September 2013)
Google Play toughens anti-gambling stance
Google extends gambling policy to include all skill-based games, prohibits prizes “of other value”
Google has beefed-up its anti-gambling regulations by extending Google Play’s gambling policy to include all skill-based games offering both cash prizes and prizes of other value.
The changes were first announced in an email addressed to third-party Android developers, informing them all new apps must adhere to the changes and that existing apps would be given 30 days to comply or risk removal from the store.
The move is considered to be Google seeking uniformity in its approach to online gambling applications, closing loopholes that may have previously been exploited.
Plumbee CEO Raf Keustermans believes the amendments to be a case of Google keeping on the safe side of the law, labelling the European market a “nightmare” because of various countries maintaining differing interpretations of gambling laws.
Opinion: What will be the impact of the UK POC tax?
So now we know the UK government wants to introduce the point of consumption (POC) tax on gaming at 15% and implement it by December 2014. As someone who has moved two sportsbooks over to Gibraltar, you may be surprised by my initial response. I personally do not have a major issue paying gross gaming taxation on sports betting and gaming revenue on two conditions.
Firstly, that it’s fair and everyone pays it. The main reason that so many companies moved their operations and management to Gibraltar was that they could not continue to pay 15% when others paid around 1%.
Secondly, the rate set and rules attached allows the industry to continue to prosper and, most importantly, gives good value to its end users. We need to learn from France where the ridiculous level of taxation has encouraged, according to ARJEL, significant levels of non-licensed betting and brought unfair and uncompetitive odds to the consumer.
Seven days in regulation:
William Hill reprimanded for misleading adverts
William Hill has been warned by the Advertising Standards Agency (ASA) after two of its print advertisements were judged to have breached five codes of practice.
The ruling was in relation to the promotion of specific odds for two horses in separate races which the ASA deemed breached misleading advertising, substantiation, qualification, exaggeration and availability rules.
The ads for Sir Des Champs to win the Cheltenham Gold Cup and The New One to win the John Smith’s Aintree Hurdle at 6/1 and 4/1 respectively were published with the footnotes ‘prices subject to fluctuation’ and ‘prices correct at 5pm yesterday’.
Due to weight of money and field changes as a result of non-runners, the advertised prices were both cut less than an hour after being made publically available at 8:30am.
Poll results: US stands to be profitable, but legislation poses a risk
Egaming companies are right to gamble on a regulated US market, with the majority of eGaming Review readers believing the country to represent a profitable market for online gambling.
The prospect of legislation does, however, remain a considerable obstacle to overcome, and 33% of respondents believe that this barrier will significantly restrict the size of any potential US market.
Nevada senator Harry Reid is still rumoured to be considering a gambling prohibition law and opposition to egaming remains rife in a number of states. While the prospect of increasing revenues through egaming taxation may be difficult to ignore for some, others appear prepared to dismiss the market’s potential value altogether.