Regulation round-up 8 April 2014
The biggest regulatory news from the egaming industry in the last seven days (2 April to 8 April 2014)
UK Gambling Commission issues grey market clarification
Regulator responds to “much discussion” on topic and confirms 3% rule only applies to B2C businesses and targets “reckless flouting of laws”
The UK Gambling Commission has written to interested parties to explain the reasons behind its requirement for grey market revenue declarations from operators looking to obtain a UK licence, eGaming Review has learned.
Earlier last week, eGR revealed that as part of the upcoming UK licensing process, operators would have to detail international revenues streams and prove the legality of jurisdictions which contribute more than 3% of total revenue.
Responding to “much discussion” raised by issue, the Commission said in an email seen by eGR it was concerned about possible implications of a potential licensee’s likelihood of responsible behaviour if they have previously been “knowingly or recklessly flouting the laws of another jurisdiction”.
The regulator also raised the issue of finance, whereby it was concerned that revenue from operators’ grey market business could disappear if countries were to “change their approach overnight”.
UK licensing timetable slips again
The pending UK Point of Consumption (POC) licensing regime could be delayed until September after the regulator revealed legislation is unlikely to be passed into law for at least another month.
The Gambling Commission last week published part one of a three-part update to its licence conditions and codes of practice (LCCP), in which it stated that the Gambling Bill, a precursor to the PoC regime, will have to wait until May before it receives Royal Assent.
The Commission has consistently stated the date of implementation would be reliant upon the Bill’s parliamentary process and has been working on a go-live date of “at least three months” from the date of Royal Assent.
Seven days in regulation:
Sportsbet loses legal battle over staff defection
Sportsbet has suffered a setback in its case against its former customer services manager Kelli Carpanini and operator BetEasy in which it was attempting to prevent her and other staff defecting to the rival operator and breaching non-compete agreements, eGaming Review has learned.
The Paddy Power-owned firm filed an injunction with an Australian Supreme Court last month after Carpanini gave notice she was moving to Beteasy, a firm recently established by Sportsbet founder Matthew Tripp.
Sportsbet lawyers claimed Carpanini breached her six-month non-compete period by commencing work for BetEasy last month and had sought to impose a temporary injunction on her employment.
UK grey market rule could deter private operators
Privately held operators could decide not to apply for a UK licence due to the regulator’s new crackdown on grey market revenues, according to an executive at a UK-facing firm.
The source told eGaming Review the Gambling Commission’s new licence condition, which requires operators to provide evidence they are acting legally in relation to non-UK derived revenues amounting to 3% or more, may act as a deterrent to non-publicly listed operators.
“It is possible that those in private hands may find the rule to be overly restrictive, especially if they only command a minimal size of the UK market,” he said.
Betclic withdraws all brands from Belgian market
Betclic Everest has withdrawn its brands from the Belgian market as the country’s Public Prosecution Office (PPO) continues its criminal investigation into the operator’s alleged unlicensed activity, eGaming Review can reveal.
In February, eGR reported that Betclic could face a fine of up to 1.2m after the PPO seized around 600,000 in connection to transactions said to be made to betclic.com. The operator doesn’t hold one of the country’s 35 remote operating licences.
Betclic, which had previously been placed on the Belgian regulator’s blacklist, quickly released a statement denying any knowledge of the investigation although said it would reserve the right to comment should “any more information come to light”.
German licensing worries mount with Digibet case
Concerns about the German sports betting licensing procedure continue to mount as the regulator today prepares to face a legal case brought by Digibet concerning the issue at the European Court of Justice.
Domestic operator Digibet has been critical of the licensing process with requirements yet to be disclosed by the Hessian Interior Ministry to the European Commission and the operator claiming there to be a lack of transparency.
The case is being heard days after reports in the Frankfurt press quoted an official at the Hessian Ministry of the Interior as suggesting that the first licences will be issued in Q4 2014, however eGaming Review understands that those involved in the process consider that date to be “optimistic”.
Aus gamblers concerned by safety not licence, says report
A new report commissioned by Gambling Research Australia has revealed gamblers in the country remain concerned about the integrity and security of gambling websites, despite a large minority remaining indifferent to licensed operators.
The research found that “substantial minorities” of online gamblers had security concerns, although one third were unconcerned whether or an operator was licensed in the country or not.
Online gamblers were also found to be more likely to choose their preferred operator based on price and product, and most gamblers surveyed revealed that preferred to use domestic operators despite the influx of UK-based gambling firms entering the market in recent months.
Opinion: France moves to reduce threat of Black Friday repeat
A new step has been taken in France in order to further secure the online gambling offers provided to French players through the enactment of the French Consumer Law no.2014-3441.
The scope of the Consumer Law is quite broad as the French legislators took this opportunity to further amend the regulations applicable to various sectors including the online gambling industry.
Indeed, the Consumer Law has made a few amendments in the Law no.2010-476 of 12 May 2010 on the opening to competition and online gambling regulation. Among these amendments which main purposes are to strengthen the online players’ protection, the most significant amendment sets out new obligations on licensed operators regarding the protection and guarantees of players’ assets repayment.
Poll: Is the UK’s grey market rule workable?
In one of its recent updates, the Gambling Commission revealed it will be requesting that operators wishing to obtain a UK licence must first provide details of international revenues streams and evidence to prove the legality of such business.
The regulator has placed a threshold on this requirement, with operator required to provide evidence if a single jurisdiction contributes more than 3% of total revenues, or more than 10% for companies with annual revenues of less than £5m.
Questions have been raised about the practicalities of such a measure, with Remote Gambling Association chief executive Clive Hawkswood raising the prospect of two operators taking an opposing view regarding the legality of operating in a particular country.
ARJEL appoints new chief executive
ARJEL has promoted Gilles Crespin to the role of chief executive following the retirement of incumbent Frédéric Epaulard as the regulator continues its restructuring process.
Crespin is to move up from his current role of assistant general manager, a role he has held since September 2011, and will report into ARJEL’s new president Charles Coppolani, who took control of the regulator in February.
Coppolani’s appointment came after the resignation of predecessor Jean-François Vilotte, who left at the start of the year following four years with the body.
Poll results: Opinion split on California egaming timeframe
eGaming Review readers are divided as to whether 2014 is the year legislation is finally approved in California to pave the way for a regulated online gaming industry.
According to Richard Schuetz, head of the California Gambling Control Commission, the regulated online poker market could generate over $500m in its first year alone and believes vast progress is being made towards a launch.
However, only 24% of respondents to this week’s poll are confident that any new sense of urgency to regulate the market would lead to an online poker launching this year, while 29% back any legislation to be delayed due to disparate stakeholder interests.