Regulation round-up 6 March 2012
The biggest regulatory news from the egaming industry in the last seven days (29 February to 6 March 2012).
Sportingbet in “advanced discussions” with potential US partner
Chief executive not anticipating any federal regulation this year.
Sportingbet is in “advanced contractual discussions” with a potential partner in the United States, chief executive Andy McIver has confirmed to eGaming Review.
The revelation follows reports last year that the company was set to re-enter the American market for the first time since 2006 through a joint venture with Foxwoods Resort Casino in Connecticut, but McIver (pictured) refused to reveal the identity of the party with whom Sportingbet is currently in talks.
He added that no licence applications would be made in the US until after the finalisation of the JV, explaining that: “What we would start with is trying to cement our JV relationship before defining our strategy together… we would hope [the ongoing discussions] will have a positive outcome.”
Sportingbet is due to pay the final part of its settlement to US authorities on 31 March, with the outstanding US$6m figure constituting the final 18% of the $33m agreed in 2010.
Seven days in regulation:
Caesars pursuing intrastate egaming opportunities
Caesars Entertainment will explore intrastate egaming opportunities across the United States as and when they arise, chief executive Gary Loveman has revealed.
The operator is one of 15 applicants to apply for a Nevada licence after the Silver State began to take applications in December last year, and Loveman said in a statement: “[We] will pursue similar licenses in other states as opportunities arise.”
He had previously revealed that Caesars was capable of launching an online poker site within 12-14 months of federal regulation passing, but his latest statement indicates that Caesars is prepared for the possibility of American regulation taking the form of state-by-state legislation to begin with.
Gaming websites told to block Dutch gamblers
Egaming operators have been instructed to install monitoring software to ensure Dutch gamblers cannot access their online and telephone gambling services, following a Supreme Court ruling handed down on Friday.
In a case brought by state-owned De Lotto against British betting company Ladbrokes, the Dutch Supreme Court ruled that the ban on international gambling firms operating in The Netherlands did not breach EU free trade agreements.
European regulators demand mutual respect
Newly formed think-tank the European Regulatory Platform (ERP) has demanded that “regulators must show a fundamental and mutual respect for the legislation of the other Member States trying to regulate their…market” following its first meeting this week.
It called upon the European Commission to “Investigate all tools of cooperation” and ensure a mutual respect exists between regulators.
Held a day after Monday’s EC-organised regulator summit in Brussels, the meeting comprised representatives from Belgium, Finland, Germany and Norway, who pledged their support for the EC’s initiative in bringing them together this week.
Cyprus report favours GPT above turnover tax
A report into potential tax regimes for the Cypriot egaming market has found that a gross profit tax (GPT) system would “maximise the size of the locally regulated market”.
The paper follows a study from KPMG, commissioned by the Remote Gambling Association (RGA), designed to “test the effectiveness” of the proposed 3% turnover tax rate, and sees GPT generating higher tax revenues for the Cypriot government as it would encourage more operators to submit licence applications.
KPMG explained that “GPT will encourage more responsible operators to obtain a licence, a result of which being that more Cypriot customers will be betting within the regulated market and will be subject to the government’s social responsibility policies”.