Regulation round-up 9 February 2016
The biggest regulatory news from the egaming industry in the last seven days (3 February to 9 February 2016)
ECJ rules against German sports betting regulation
Ruling criticises framework as monopolistic and lacking transparency
The Court of Justice of the European Union (ECJ) has concluded that Germany must not impose sanctions against operators on the basis of the current German online legislation, dealing another major blow to the troubled Interstate Treaty.
In its ruling on case 336/14, more commonly known as the Ince Case, the ECJ backed the European Commission’s previous criticisms of the framework and said it effectively remained a sports betting monopoly because no licences have been issued.
It also reminded Germany that the licensing process must be conducted in a transparent manner, a point upon which several German courts have ruled against the treaty.
“Today’s ruling emphatically confirmed that the German online gambling regime reached a practical and legal dead end,” Maarten Haijer, secretary general of EGBA, said.
CMA dismisses concerns Playtech will favour merged Lads Coral
The government department responsible for deciding whether the proposed Ladbrokes and Gala Coral merger can go ahead has batted away concerns Playtech could favour the merged entity in the supply of its products.
As part of its phase two investigation into the merger, the Competition and Markets Authority (CMA) said a third-party had raised a potential scenario whereby the supplier could focus on the enlarged firm at the expense of its other customers.
Playtech currently owns approximately 10% of Ladbrokes’ shares and intends to acquire shares in the merged entity should the transaction be given the go-ahead.
Seven days in regulation:
Dutch regulator cracks down on payment provider
The Netherlands’ gambling regulator Kansspelautoriteit (KSA) has said it will continue to crack down on any firms infringing the country’s Gaming Act after winning an appeal against a payment provider charged with targeting Netherlands-based players.
In a statement, the KSA said it had determined that payments provider CURO Payments BV was providing payment services to an unlicensed operator and was therefore in violation of the Gaming Act.
“The Gambling Authority has successfully enforced the law in the recent past against various payment service providers who have offered their services to operators of illegal gambling sites,” the KSA said.
Betsson pays ?9.2m in German back taxes
Betsson has agreed to pay German authorities SEK113m (?9.2m) in back taxes, a decision it expects to clear the way for a successful licence application in the future.
In a statement, the operator said it would be submitting income tax returns for the period 1 July 2012 to 31 December and would submit monthly returns henceforth.
However, the firm said it still believed it was “not subject to a tax liability” in Germany, but had opted to declare the tax “in order to avoid negative repercussions when applying for a licence in the future”.
Australian racing industry calls for complete in-play ban
The Australian horseracing industry has called for a complete ban on in-play wagering as the federal government prepares to release its highly-anticipated response to its online gambling review
Speaking to The Australian newspaper, Racing Australia chief executive Peter McGauran said a comprehensive ban should be enforced across all sports and also apply to live betting via telephone which is currently legal.
“We feel so strongly about the threat that in-play betting poses to integrity that we believe that the loophole in the Interactive Gambling Act that allows in-play betting on races should be closed,” McGauran said.