Regulation round-up 5 August 2014
The biggest regulatory news from the egaming industry in the last seven days (30 July to 5 August 2014)
Spain approves online slots and exchange regulation
Regulator will now publish the orders to kick-off the licence application process while also opening the new licensing window
Spanish authorities has officially published and approved the much anticipated regulation of slots and exchange betting in the country, bringing to an end a process which lasted more than two years.
Following the Ministry of Finance and Public Administration’s confirmation, which was published in the Official Gazette, Spain’s gaming regulator Dirección General de Ordenación del Juego will open the application process and licensing window immediately.
It is expected current Spanish licence holders will be able to gain a slots and/or exchange licence in order to launch around one or two months sooner than the new licensees, however, those currently outside the market could still face at least a six-month wait.
The final legislative documents showed little change to earlier drafts with tax rates set at 25% of gross gaming revenues and operators will still be required to implement strict social responsibility and player protection measures.
Portugal online gambling proposals approved
A regulated Portuguese online gambling market took a step closer last week after the country’s parliament gave the green light to proposals which would bring to an end its current state-owned monopolised system.
Following a vote of authorisation in the Portuguese parliament, a draft bill will now be drawn up containing details such as licensing requirements, tax rate obligations and sanctions for unregulated operators.
While precise levels of taxation are yet to be agreed it has been confirmed that a two-tiered regime will be put into place, with games of chance and mutual horse racing betting to be taxed at between 15% and 30% of total revenue and sports betting revenue subject to a tax rate of between 8% and 16%.
Seven days in regulation:
“Costly and complicated” Dutch regulation must change
The Dutch gambling Bill is too costly and complicated for operators and must be amended if it is to succeed, according to the lawyer charged by land-based operators to lead the legal fight against it.
Speaking to eGaming Review, Bas Jongmans, attorney at Gaming Legal, said that in its current form the regulation would prohibit most domestic operators from turning a profit due to the prospective tax obligations and responsible gambling measures.
“We have to do something to protect the operators who already have land-based casinos,” Jongmans said. “We analysed the online legislation and feel the obligations that are to be required are simply too expensive.”
GB regulator readies new Social Responsibility Code
The Gambling Commission is preparing to launch a new Social Responsibility Code including the proposed universal self-exclusion scheme as it seeks to further increase its player protection requirements, eGR has learned.
The regulator will kick-off a three-month consultation exercise in the coming weeks in which it will request feedback on proposals for a code which will incorporate the planned national self-exclusion scheme as part of changes to its licensing condition and codes of practice (LCCP).
“The requirement for Gambling Commission licensees offering online gambling products to participate in a national self-exclusion scheme would be achieved by the introduction of a new Social Responsibility Code,” a spokesperson for the Gambling Commission told eGR.
Dutch egaming bill faces land-based legal challenge
Domestic land-based gambling firms in the Netherlands are set to mount a legal challenge to the country’s draft gambling bill, threatening the future of the proposed 20% online tax rate.
Owners of casinos and gambling halls in the country are requesting changes are made to the bill ahead of its passing into law, specifically relating to its tiered tax tariff and responsible gambling initiatives.
Kansspelautoriteit chairman Jan Suyver confirmed to eGR that the regulator was aware of the legal challenge, but would not comment further.
Analysis: Slots will not be Spanish silver bullet
The introduction of slots into Spain’s somewhat sluggish online gaming market is expected to bring a welcome boost to the country’s licensed operators after the regulations were finally rubber-stamped by Spanish authorities last week.
Its absence had been cited as one of the primary reasons the Spanish market has so far failed to meet early projections for the regulated market, which first launched in June 2012.
Casino has been a steady performer in Spain, regularly posting quarterly gross gaming revenues of around 8-9m with the latest available figures showing 8.7m for Q1 2014.
Ladbrokes reprimanded by ASA over exchange ad
Ladbrokes has been reprimanded by the Advertising Standards Authority (ASA) over a misleading free bets advertisement for its recently launched betting exchange site.
A complaint filed with the ASA contested whether a banner advert on the operator’s sportsbook promoting up to £500 in free bets was treating customers “fairly and honourably”.
To obtain £500 of free bets on the exchange customers must have paid £1,925 in commission to the operator which, given its 5% commission rate, meant customer winnings would have had to stand at £38,500.
Opinion: Fine tuning Hungarian online gambling regulation
Following a one-year standstill period, it seems the Hungarian government has in recent weeks started to take seriously the issue of introducing the first remote gambling rules in Hungary and the much discussed operation of international online gambling operators.
On the one hand, the Gambling Supervisory Division of the National Tax and Customs Administration (GSD) has started to prepare a blacklist of unlicensed operators and has been blocking their websites – which obviously ensures advantage to the one and only current licensee, the State Gambling Organiser.
On the other hand, the Parliament has adopted a number of amendments to the previously proposed remote gambling regulations, which eases the path to market entry for remote gambling operators, particular foreign operators.
Amaya-PokerStars deal passes regulatory hurdle
Amaya Gaming has been given regulatory approval for its US$4.9bn acquisition of the Rational Group from the regulator in each jurisdiction that PokerStars and Full Tilt operate, as well as the Toronto Stock Exchange (TSX).
The approvals are likely to boost PokerStars’ chances of receiving a licence in the US, with the New Jersey regulator saying the online poker giant could be up and running in the state as early as autumn with land-based partner Resorts Casino.
The Canada-based company also revealed that the transaction and the listing of Amaya common shares issuable in relation to its takeover of the Rational Group has received conditional approval from the Toronto Stock Exchange.