Regulation round-up 8 October 2013
The biggest regulatory news from the egaming industry in the last seven days (2 October to 8 October 2013)
High Spanish egaming tax leads to 72.5m losses
New Deloitte-authored report concludes poor performance is a result of high taxation
Excessive taxation of the regulated online gaming market in Spain has led to yearly losses of 72.5m, according to a new report compiled by Deloitte.
The Report on the Taxation of Online Gambling found that despite operators generating 234m in gross gaming revenue, the heavy tax burden had caused significant egaming losses and a lack of competiveness since the regulated market first opened in June 2012.
Online operators in the country have been subjected to a gross gaming revenue levy of 25%, which compares unfavourably with the rest of Europe, meaning that only those enjoying large market shares have been able to turn a profit.
Commenting on the report Sacha Michaud, president of the report co-author Jdigital, said he hoped the findings will prevent the Spanish egaming market making similar mistakes to France.
Portugal to regulate online gambling
Portuguese authorities have announced plans to regulate online gambling in an effort to bring much-needed tax revenues into the country.
The government has set out plans to create a new working group to discuss the online gambling market in Portugal and the European Union within the next three months.
No final timetable has been laid out by the government, but the study will propose regulatory measures in order to open the online gambling market beyond the existing state monopoly.
Seven days in regulation:
New Jersey confirms 26 Nov launch following trial period
The New Jersey Division of Gaming Enforcement (DGE) has confirmed internet gambling will go live in the Garden State on 26 November, following a five-day trial period.
From 21 November Atlantic City casino operators and their egaming partners will be able to test their systems in a live environment. Following a successful trial, which will be restricted to invited players only, fully-fledged internet gambling will go live at 9am on 26 November.
New Jersey residents will be able to use their home computers, smartphones and other electronic devices to play online, as long as they are within the state’s borders.
Dutch Gambling Authority renews Sportech licence
The Dutch Gambling Authority (Kansspelautoriteit) has issued Sportech with a new exclusive licence to operate betting on horseracing in the country.
The previous licence expired on 30 September, and the new licence will run from today until 31 December 2014.
Under the terms of the licence, Sportech will pay 2.5% of the total amount staked to the Dutch Association of Trotting and Racing, helping fund the organisation’s management of the sport.
Gambling Commission in talks with Coral over Health Lottery tie-up
The Gambling Commission has held talks with Coral in order to express its concern over the operator’s recent deal with the Health Lottery.
The agreement, which went live last month, offers customers the chance to win up to £1m on the twice-weekly lottery by placing bets on the outcomes in Coral shops or through its online platforms.
By joining forces with the bookmaker, the Health Lottery has been able to avoid society lottery restrictions which effectively limit jackpots to £100,000.
UK regulator enters collaboration pact with Singaporean casino body
The UK Gambling Commission (GC) has entered into a Memorandum of Understanding (MoU) agreement with the Singaporean Casino Regulatory Authority (CRA) which will see the two regulators pool information in order to better protect consumers.
The MoU was signed by GC commissioner and chief executive Jenny Williams and CRA chief executive Lau Peet Meng at the annual International Association of Gaming Regulators in Oslo on Monday.
According to the CRA, the agreement reaffirms the commitment of both parties to collaborate in areas such as information and knowledge sharing, exchange visits and training opportunities.
Delaware issues RFP for egaming legal counsel
Delaware’s state lottery has issued an RFP to select a law firm to act as its legal counsel for online gaming activities.
The organisation will engage at least one firm, to be appointed by November 18, to assist it with the implementation of Delaware Gaming Competitiveness Act of 2012.
Responses to the RFP are due on 1 November and interviews and oral presentations will follow over the subsequent fortnight.
Belgium expands egaming blacklist
The Belgian Gaming Commission (BGC) has added to its blacklist of egaming domains, taking the total number of banned websites to 82.
Malta-licensee Onextwo.com and Casinomidas.com, licensed in Curacao, have been added to the nation’s blacklist, with domestic internet service providers encouraged to block consumer access.
Belgium has clamped down on unlicensed online gambling since a 2011 Royal Decree restricted business to companies with a land-based presence in the country.
Opinion: OFT consultation a good start
Wiggin LLP partner and head of betting and gaming Jason Chess discusses the OFT’s recent consultation into the ‘freemium’ model