Regulation round-up 9 June 2015
The biggest regulatory news from the egaming industry in the last seven days (3 June to 9 June 2015)
Portugal set for “very large” black market
Prohibitive tax rate likely to dissuade sports betting operators from applying for a licence, although opportunities for poker and exchanges may exist
The soon-to-be regulated Portuguese market is unlikely to attract many operators when its online gambling framework passes into law at the end of the month, a senior figure at a major online gambling firm has told eGaming Review.
According to the source, who was speaking under the condition of anonymity, when the regulatory framework passes into law at the end of the month, Portugal would end up with a “handful of licensees and a very large black market”.
The controversial decision to tax sports betting on turnover rather than revenue is the primary factor putting operators off applying for a licence, and the source added there would be a “great temptation” for Portuguese residents to seek out unlicensed operators.
Portugal has set its egaming tax rate at 8% of turnover up to the first 30m, rising to 16% thereafter, with even the lower figure all but wiping out most operators’ potential margin.
William Hill shuts Romania operations
William Hill has withdrawn from the Romanian online gambling market due to what the company described as “recent regulatory developments”.
The firm took the decision on 2 June to suspend the accounts of its Romania-based customers and advised them to withdraw any funds held by the operator.
The move follows a period of regulatory upheaval in the market with the development of a new online gambling framework.
Seven days in regulation:
Operators quick to gain Spanish slots advantage
Operators have been quick off the mark in Spain with a number of sites going live with online slots games just hours after receiving approval from the country’s gaming regulator last week.
888, William Hill, Intertain, and TitanBet were among a raft of operators to launch slots in Spain after receiving a licence from the Dirección General de Ordenación del Juego.
888 chief operating officer Itai Frieberger told eGaming Review that its slots product was “prepared well in advance” and they were just “waiting for the final go-ahead” from the regulator to launch.
Increase in Dutch tax rate would be “devastating”
An increase in the proposed tax rate for the soon-to-be regulated Netherlands egaming market would be “devastating”, the director of Dutch remote gaming association Speel Verantwoord has warned after a key Dutch politician hinted at a potential tax hike.
Earlier this month, in a speech to the Euromat Gaming Summit in Amsterdam, the new State Secretary for Security and Justice Klaas Dijkhoff appeared to leave the door open for a change in the online levy, saying it would “no doubt be hotly debated in parliament”.
The proposed rate of 20% for egaming operators has caused controversy and a formal complaint has been lodged by land-based association Euromat because it is lower than the 29% levied against land-based casinos.
French regulatory changes “unlikely” before 2017, says France Pari CEO
Much needed changes to France’s egaming taxes and the legalisation of online casino games is unlikely to occur before the country’s 2017 presidential election, France Pari chairman and CEO Hervé Schlosser has told eGaming Review.
In an interview with eGR, Schlosser also said new licence applications from foreign operators were unlikely before the election and added any taxation changes would be too big a political risk for the current government.
“The momentum will come with the major political changes in France, particularly with the presidential elections in 2017,” Schlosser said.
Sportsbook helps Spain Q1 revenues grow 14%
Revenues in Spain’s online gaming market grew 14% in Q1 2015 driven by continued growth in the sports betting vertical and a 34% increase in marketing spend, according to the latest figures from the country’s regulator.
The Dirección General de Ordenación del Juego (DGOJ) reported Q1 gross gaming revenues rose 14% year-on-year to 77.4m with total turnover up 25% to 1.9bn.
Sports betting continued to dominate the market during the three month period, accumulating GGR of 45.5m, up 20% on the same period last year and 32% sequentially.
Romanian regulator pledges to “eradicate black market”
Romania’s National Gambling Office (NGO) said it will “eradicate the black market” with plans including domain and payment blocking in a letter sent to the industry clarifying its soon-to-be implemented regulatory framework.
In an introductory note to a 41-point letter released by the regulator in response to questions from operators and industry stakeholders, president of the NGO Cristinela Odeta Nestor said the regulator would do everything it can to curb black market operators.
“We will use all our tools and knowledge in order to completely eradicate the black market and offer a fair environment for all the [operators] that are legally operating in Romania,” she said.
Poll results: France an unattractive market for operators
The French online gambling market remains unattractive to operators despite firms including Unibet, bwin.party and Betclic Everest recently renewing their licences until 2020, according to respondents to last week’s eGaming Review poll.
Recent Q1 results showed 17% year-on-year growth in regulated online sports betting revenues in the country, but an overwhelming majority of 94% of readers nonetheless agreed France is not an attractive proposition to operators, with just 6% arguing that it was.
Current French licensees are required to pay corporation tax of 33%, in addition to a 9.3% sports betting turnover tax and a 2% tax on online poker cash game pots.