Regulation roundup 22 December 2015
The biggest regulatory news from the egaming industry in the last seven days (16 December to 22 December 2015)
Paddy Power Betfair merger approved by shareholders
The mega-merger between Paddy Power and Betfair moved another step closer to completion today after shareholders at both firms comprehensively approved the deal.
At separate meetings held yesterday morning, 99% of investors at both Paddy Power and Betfair approved the merger, which is on track to complete in Q1 2016.
The merger still needs to be approved by the court and the Consumer and Competition Protection Commission, but was given the green light by the Competition Markets Authority last week.
The CMA also revealed it had begun its fast tracked investigation in the Ladbrokes Gala Coral merger.
BHA removes affiliates from betting partner scheme
The British Horseracing Authority (BHA) has reduced the scope of its controversial Authorised Betting Partner (APB) scheme by removing the requirement for affiliates to only refer customers to ABPs to continue their sponsorship of racing.
Affiliates had previously been warned they would considered a non-ABP should they promote non-members of a scheme which sees the BHA target operators’ offshore businesses to ensure those that profit from racing make a “fair contribution” to the sport.
However, in what a BHA spokesperson described as an evolution of a policy first announced in October, the organisation has since excluded affiliates from the scheme.
Seven days in regulation
Italian sportsbook still hopeful of tax reduction
Italy-facing sportsbooks remain hopeful that the country’s decision makers will amend the current draft Stability Law and introduce a 20% revenue tax across all online betting and gaming products.
Italy’s Budget Committee recently passed a number of amendments to the bill, including a provision to tax online sportsbooks at 22% of GGR, higher than the 20% rate proposed for other online verticals.
But while the bill is expected to be passed in the coming days, eGR understands the wording of the draft has changed a number of times in recent weeks, giving hope that the 22% rate could yet be lowered.
Brazil fast tracks gambling bill
Brazil’s Senate has fast-tracked approval of a new law which could legalise remote gambling in the country.
Bill 186/2014, which covers a broad range of gambling measures and includes provision for the regulation of online gambling for the first time, was only given initial approval earlier in the month.
Although it was expected the bill would take several months to progress through Brazil’s legislature, it has been bundled into the ‘Brazil Agenda’ a package of measures aiming to revert the country’s economic crisis.
Netherlands State Secretary defends differentiated tax
Operators have won an initial victory in the dispute over differentiated tax rates in the Netherlands after a senior Dutch politician this week backed proposals to introduce a lower online levy.
In a memorandum of reply to a second round of questions regarding the Remote Gaming Act (RGA), State Secretary for Security and Justice Klaas Dijkhoff said that he considered an online rate higher than 20% as “unworkable”.
Alderney regulator appoints new exec director
The Alderney Gambling Control Commission (AGCC) has promoted regulatory chief Jorn Stark (pictured) as its new executive director following the imminent departure of André Wilsenach.
Stark, who joined the AGGC in 2007, has been elevated from his role as director of regulatory operations, a position he took up in 2014 having previously been director of compliance.