Regulation round-up 4 February 2014
The biggest regulatory news from the egaming industry in the last seven days (29 January to 4 February 2014)
Italy moves towards GGR betting tax
Government set to enforce ‘delegation law’ to allow it to move away from existing turnover tax
The Italian Government will vote this week to enforce measures that are likely to lead to a move away from a turnover tax to a gross gaming revenue levy for remote sports betting.
At present the Government can only amend gaming taxes in “urgent” circumstances, but this limitation is set to be removed with the passing of a delegation law expected to open the door to a new sports betting levy.
The sports betting market in Italy has been in decline in recent years with spend down from 173m in 2010 to 135m in 2013, with many observers considering the current 2%-5% revenue tax a crucial factor.
A move to a levy based on gross gaming revenues in the region of 20% has been mooted as a potentially more effective regime and one which could help reduce the size of the country’s black market.
Egaming firms hit hard by Google update
Egaming operators including 888 and Tombola have lost significant online visibility following changes to Google SEO algorithms, according to new research by Stickyeyes.
A report published by digital marketing consultancy Stickyeyes found the two most recent major SEO updates, known as Panda and Penguin, saw 888 fall from being one of the most visible casino brands on Google to as low as 17thin the space of just one month.
The changes, which aim to penalise brands that adopt what Google deems to be aggressive or unnatural link strategies saw Spin Palace, Tombola and Cheeky Bingo also lose ground.
Seven days in regulation:
Bulgarian regulator confirms PokerStars and Betfair applications
Bulgaria’s State Commission on Gambling has confirmed it’s received remote gambling licence applications from both PokerStars and Betfair since amending its regulatory and taxation regime at the start of the year.
According to the regulator, a total of three applications are currently under review, including one belonging to Eurofootball Bulgaria, with final decisions expected imminently.
“If everything is correct with the documents and applications the licenses will be issued in the short term,” a spokesperson told eGaming Review.
888 acquires Spanish sports betting licence
Gibraltar-licensed operator 888 is readying itself for a push into the Spanish sports betting market after striking a deal with local gaming company Nervion Group, eGaming Review can reveal.
The deal, which has seen 888 acquire Nervion’s online sports business Apuestas Ganador Online and accompanying remote sports betting licence for an undisclosed amount, hands the operator the opportunity to launch its Kambi Sports Solutions-powered sportsbook in Spain ahead of this summer’s World Cup.
888 had originally gained a sports betting licence upon the opening of the Spanish regulated market in June 2012, however, the operator decided to return the licence to the country’s regulator, Dirección General de Ordenación del Juego (DGOJ), later that year.
Ireland’s online gambling tax nears
Ireland’s plan to extend its tax legislation to include online gambling operators moved a step closer last week as MPs debated the issue in Parliament.
Current tax laws are expected to be amended in order to bring online gambling sites under the same taxation rules of land-based betting outlets and be required to pay a 1% tax on revenues.
However, exchange operators will operate under different rules with a 15% profits levy to be imposed with the Betting Amendment Bill now expected to be implemented as early as March.
UK advertising body cracks down on free bet advertising
The UK’s Committee of Advertising Practices (CAP) called on gambling operators to be more responsible when promoting free bet offers in its updated advertising guidelines released last week.
CAP’s updated guidelines come after the UK Gambling Commission said it would investigate free bet offers following the revelation that 91% of complaints to the Advertising Standards Authority regarding the practice had been upheld over the past four years.
The number of complaints to the ASA regarding free bet offers has increased in recent months and CAP specifically criticised the inclusion of “unclear or unfair terms and conditions” in free bet advertising.
Opinion: Regulator’s actions are improving the Italian online market
The 226m of gross gaming revenue (GGR) generated by the Italian online casino market last year may have been considerably far lower than the initial expectations of the Italian gaming regulator, Agenzia delle Dogane e dei Monopoli (AAMS).
But this shortfall may have been the reason which encouraged AAMS to start a strong campaign against casino game suppliers that, according to their view, offer the same games both to licensed operators and non-Italian licensed operators targeting Italian players.
Apparently this was one of the topics of discussion during the meeting that recently occurred in Rome among the regulators of the main European jurisdictions with the aim of formulating a common strategy against the black market.
Poll: Are UK advertising rules too restrictive?
In the past few days the UK’s Committee of Advertising Practices (CAP) updated its code on gambling marketing following a proliferation of complaints and a number of ASA rulings on the issue in the past few months.
Last year CAP revealed that 91% of complaints made to the Advertising Standards Authority (ASA) regarding “misleading” free bet adverts had been upheld over the past four years.
The revamped guidelines saw CAP clarifying its position on areas such as the protection of children from advertising, specifically the use of cartoon characters in adverts.
BetButler rapped for ‘best odds’ claim
UK-licensed bookmaker BetButler has been warned by the Advertising Standards Authority (ASA) after it was unable to substantiate claims that it offers customers the best odds on all bets.
A complaint was lodged with the ASA after a customer found better odds available elsewhere despite the BetButler website stating that it offered “the best available price in the market”.
According to the BetButler ‘How it Works’ page, the operator’s “patented technology compares odds with over 60 different bookmakers around the world” in order to ensure the customer receives the best price.
Poll results: Jury out on South African market potential
The jury is still out on the potential value of South Africa’s egaming market after new egaming regulation was discussed last week.
eGaming Review exclusively revealed a new bill set to be tabled by South African MP Geordin Hill-Lewis last week, proposing to make sweeping changes to the current regulatory landscape in the country.
While adopting regulation more similar to that of Europe and Australia, South Africa would also legalise online casino products for the first time in order to complement the existing market for online sports betting, making the country an altogether more attractive proposition for multi-vertical operators.
UK regulator beefs-up for new regulatory regime
The UK Gambling Commission is looking to bolster its industry knowledge in preparation for the new regulatory landscape after creating three new management roles.
The Commission is currently seeking candidates that have gained previous experience within the online gambling industry and the field of sports betting in order to fill the positions of senior online specialist, online specialist and betting sector specialist.
According to the job descriptions, the roles entail offering “expert advice and guidance to colleagues and stakeholders” as well as managing “key relationships with operators and industry bodies”.
Lord Faulkner appointed new chair of Alderney regulator
Lord Faulkner of Worcester has been named the new chairman of the Alderney Gambling Control Commission (AGCC) for a five-year term, replacing incumbent John Godfrey who is to retire in May this year.
Godfrey was the Commission’s first chairman and is set to stand down after 14 years in the position with Faulkner selected to step up from his current role as AGCC member of the Commission.
Lord Faulkner, who served as a government minister from 2009 to 2010, will combine his new role with duties as an active Labour peer and deputy speaker in the House of Lords.