Regulation round-up 9 October 2012
The biggest regulatory news from the egaming industry in the last seven days (3 October to 9 October 2012).
Operators call for “hard action” from EC on German regulation
European egaming operators want European Commission to curb market fragmentation and protect consumers.
The European Gambling and Betting Association (EGBA) has lodged a formal complaint with the European Commission against the new German gambling regime on grounds of incompatibility with the EU treaty.
Together with industry partners, the EGBA is calling for the introduction of Europe-wide rules to ensure proper protection for consumers and maintain a crime-free environment throughout the EU, while affording open, fair and transparent licensing conditions for EU-regulated operators.
It argues that the situation is worsening in a number of jurisdictions Europe, with several countries moving forward with legislation that the EGBA describes as “at best – highly questionable under EU law.”
The European Commission is scheduled to release its Communication and Action Plan on online gambling initiative this month, with the EGBA calling the policy paper a “key test” of its commitment to tackling ‘fragmentation’ in the sector.
Sigrid Ligné (pictured), secretary general of EGBA said: “We deplore the situation today where we see 27 ‘mini-markets’ for gambling in Europe.”
OPAP monopoly extension approved by European Commission
The European Commission has given OPAP the green light to extend its exclusive right to operate 13 games of chance in Greece until 2030 and license to operate 35,000 video lottery terminals until 2022.
The Greek monopoly, which is subject to an international tender process for the government’s 33% share, will pay an “adequate fee” to maintain these exclusive rights and will therefore receive “no undue economic advantage” according to the EU.
EU competition commissioner Joaquin Almunia said in a statement: “Greece has cooperated fully with the commission to ensure that OPAP will not benefit from any undue financial advantage through the prolongation of its exclusive rights and its license for video lottery terminals. This allows for a timely privatisation of the gambling operator.”
The decision will be a welcome boost for OPAP, whose monopoly status has come under increasing pressure from industry groups and regulators.
Seven days in regulation:
Hungarian online regulation compromise for slot machine ban
The Hungarian government has announced broad plans to regulate and tax egaming activities in order to compensate for revenues set to be lost following a nationwide ban on land-based slot machines.
The ban was announced last week, with Associated Press reporting that the machines would be outlawed in all bars and pubs and only permitted in three designated casinos in the cities of Budapest and Sopron.
State Secretary Janos Lazar said of the new law: “Our objective is to ensure that our poorest, most disadvantaged and defenseless citizens … be prevented from having the opportunity of spending their money on gambling activities.”
Nevada GCB approves Boyd and Fertitta for online poker
The Nevada Gaming Control Board (GCB) has approved the online poker licence applications of Station Casinos and Boyd Gaming’s online businesses.
In the first meeting since former GCB chairman Mark Lipparelli stepped down from his role, both Fertitta Interactive and Boyd Gaming were recommended for approval when their applications are to be heard by the state’s Gaming Commission on 18 October.
If the Gaming Commission gives them the green light, both operators must then await approval of their respective technology before launching an online poker site.
Unibet settles Spanish back-taxes
Unibet has agreed to pay a one-off fee of 3.2m (£2.6m) following discussions with Spanish tax authorities, relating to back-taxes for the operator’s activities in the market between January 2009 and May 2011.
The operator withdrew from the Spanish market ahead of the issuing of dot.es licences in June this year, and confirmed in a statement that it “did not apply for a B2C gaming licence under the new Spanish gaming law and does not currently target the Spanish market.”
It has however launched B2C offerings in other regulated markets, obtaining an F1+ sports betting licence in Belgium and undergoing a cautious re-entry into the French market following its acquisition of Solfive last year.
Two more poker operators exit France
French regulator ARJEL has repealed the licences of two more operators as the country’s online poker market continues to shrink.
One of the two, Poker Leaders, had not managed to launch in the months since being awarded an operating licence in February, although president Olivier Douce said in June that the company has been the “victim of defection” adding that “it is out of the question for us to give up and… we are actively working to find new solutions.”
The second licensee to see its accreditation revoked is Winga, which launched its dot.fr offering in January 2011, shortly after joining Playtech’s Italian casino platform. Parent company Buongiorno was subject to a £187m takeover bid from NTT DOCOMO which saw the Japanese company acquire a 97% stake in August, however it is not known whether this was the main reason for its withdrawal of the Winga brand from the French market.