Regulation round-up 8 July 2014
The biggest regulatory news from the egaming industry in the last seven days (2 July to 8 July 2014)
German licence decision set for September
Hessian Ministry of the Interior intends to present proposals for future licensees in the coming weeks
The much-delayed German sports betting licensing process may be drawing to a close with regulatory authorities in the country preparing to inform applicants of their fate as early as September.
eGaming Review understands the Hessian Ministry of the Interior is to present proposals for future licensees to the German Gambling Council “ made up of the heads of gambling regulation of each German state “ either later this month or in early August.
A decision on licensees is expected soon after the proposals are heard with applicants expected to be informed of a decision in September.
Dutch ministers set for crunch tax talks
The Dutch Council of Ministers is facing a race against time to reach a consensus on a tax rate for remote operators in the country, with the final meeting before the summer recess set to take place this Friday.
The country’s ruling coalition remains split over the operation of a dual tax rate for gambling operators with the Social Democratic party wishing to raise the tax on online gambling operators from the proposed 20% to 29%, in line with the rate levied on land-based gambling products.
Jan Suyver, chairman of the Dutch Gambling Authority, confirmed to eGR that should no agreement be reached a delay of up to two months can be expected and added that the authority was “crossing its fingers” for a conclusion to the debate.
Seven days in regulation:
RGA slams Portugal’s online tax plans
The Remote Gambling Association (RGA) has criticised the Portuguese government’s plans to hit online sportsbooks with a revenue tax of 8-16%, describing the proposal as being both “punitive” and “unviable”.
The tax proposal was laid out in a draft bill currently making its way through Portugal’s parliament as part of the country’s plans to liberalise a market currently controlled by state-owned monopoly Santa Casa da Misericórdia.
And while the RGA welcomed the decision to open up the market, it said its members were concerned that the online sports betting rate, which is higher than the average 4.5% turnover rate applied to Santa Casa, would create an uneven playing field.
EC to request gambling warnings in adverts
The European Commission will this week urge Member States to heed its advice and force online gambling operators to insert warnings when advertising products.
Although finer details of its recommendations are unknown, the EC on Wednesday will request that online gambling adverts include notices which outline the potential risk of gambling addiction and advise how help for compulsive gambling can be sought.
The recommendations are expected to be broadly welcomed by industry bodies and come following the publication of the EC’s Action Plan for online gambling in 2012.
Betfair to withdraw exchange from Austrian market
Betfair is to withdraw its exchange betting product from the Austrian online gaming market, nine years after it first received a licence to operate in the country.
The operator has informed its Austria-based customers that it will close its exchange betting site on 14 July following an analysis of the business, however its fixed-odds sportsbook and gaming products will continue to operate in the country.
Betfair originally received an online gaming licence to operate in Austria in April 2005, making it the firm’s second operational jurisdiction after the UK, followed by the launch of a German language site.
Irish remote betting tax sent for EC scrutiny
Ireland’s new remote betting tax should be in place by the end of this year after the country’s government sent its final version of the Betting (Amendment) Bill to the European Commission (EC) for scrutiny.
The legislation received its final reading in the Irish parliament last week and has now been deferred to the EC, which will be given roughly three months to ensure it is compliant with European law and broader principles.
The Bill, which sets out the government’s intention to licence and tax all online bookmakers and betting exchanges that transact with Ireland-based customers, was first mooted in 2011.
Analysis: Two years on and no progress in Germany
When Germany’s Interstate Treaty on Gambling was granted a two-year grace period by the European Commission on 1 July 2012, the intent was to allow for the country to implement a liberalised regulatory framework that would open the gates for international operators.
However two years on and with that grace period having now expired, the regulatory process appears to have made little progress. Operators that have applied for one of just 20 sports betting licences are no clearer as to where they stand having had their licence applications rejected in November last year.
All 41 applicants are understood to have submitted amended applications by the 14 March 2014 deadline, however it is widely regarded unlikely that any licence will be issued in 2014 “ as had previously been expected “ with most not expecting any movement until early 2015 at the earliest.