Regulation round-up 7 May 2013
The biggest regulatory news from the egaming industry in the last seven days (1 May to 7 May 2013)
DCMS committee “satisfied” with UK POCT bill
Committee expresses “confidence” appeals from “disgruntled operators” would fail
The UK Culture, Media and Sport Select (DCMS) Committee has approved the principle of the country’s proposed gambling bill, suggesting compatibility with EU law has been “considered” and further opposition from operators would be unlikely to succeed.
The DCMS noted the existing UK regulatory regime has “significant weaknesses in areas such as transparency, consistency and the provision of information”, and added the changes to bring offshore but UK-facing operators under the country’s tax regime represent “a consequence, but not the prime motivation, of the legislation”.
Pre-legislative scrutiny of the draft bill has seen the committee reach the conclusion that while opposition of the kind threatened by the Gibraltar Betting and Gaming Association (GBGA) cannot be ruled out, such opposition would be unlikely to make headway. “We are satisfied that the Government has considered the compatibility of the proposed legislation with EU law and we note its confidence that any challenge to the legislation would be unlikely to succeed,” the report explained.
Details of the bill were first made public in December 2012, outlining proposals for a point of consumption tax (POCT) and licensing regime for UK-facing egaming operators.
Gambling Commission-National Lottery merger under threat
The House of Commons Culture, Media and Sport Committee has called for further scrutiny into the proposed merger of the UK Gambling Commission and National Lotteries Commission after expressing concerns that the responsibilities of the two organisations are “incompatible”.
In a report, the Committee said a number of respondents “ made up of egaming operators, industry associations and foreign regulatory authorities “ warned a “conflict of interest” could arise should the bodies be combined.
The concerns are associated with the Gambling Commission’s role in ensuring consumer protection remit and how this would fit with the Lottery Commission’s responsibility “to ensure a maximum return to good causes” as a charitable organisation.
Seven days in regulation:
ARJEL submits proposals for stricter egaming legislation
ARJEL has published its first investigation into problem gambling in France, and proposed a series of 33 amendments to the country’s egaming legislation to effectively combat addiction.
The report features the first breakdown of the prevalence of gambling in the French market, revealing around 47.8% of the adult population gambled over the course of 2010 “ the year the market opened. Of this number, 10.9% of players were classed as regular gamblers (playing more than 52 times in a year), while 4.7% were considered high spenders, who deposited over 500 each year.
Around 22.7% of those who gamble online – 1.3% of the total population “ were viewed as showing a tendency towards problem gambling. The report claimed that 400,000 were at moderate risk, with a further 200,000 playing excessively although ARJEL noted that the findings were based on “a small sample” of online players.
New federal online poker bill set to be introduced
A new federal egaming bill expected to offer favourable terms to state lotteries is set to be introduced by New York State Congressman Peter King, according to his aide.
While details regarding the content of the draft legislation are not yet clear, it is expected to restrict online gaming in the US to poker only while also including state lotteries as eligible operators.
The recent draft legislation proposed by Senators Harry Reid and Jon Kyl, which was never introduced, was heavily criticised by state officials for excluding lotteries from being able to offer online gambling except for daily lottery games. Complaints were received from, among others, Massachusetts lottery director Steve Grossman, Kentucky Lottery Corporation president Arthur Gleason and the National Governors Association.
Michigan Governor targets online lottery ticket sales
Michigan Governor Rick Snyder has called for lottery tickets to be sold online from 2014 and requested the state legislature to set aside US$3m in its budget for the launch.
However the Republican-led legislature is currently divided over the issue, with the House in favour but the Senate opposed and its budget does not currently allocate any funds for internet ticket sales.
Lottery Commissioner Scott Bowen has previously argued the state lottery will struggle to increase its customer base without an online offering. A spokeswoman for the organisation added that as people can buy “almost anything” online, the lottery “really should not be any different”.