Review of the Year: European regulation continues to evolve
eGR looks at the 10 biggest talking points of 2011.
This year European regulation has continued its path of creating a patchwork of regulated markets, with Spain and Denmark set to open early in 2012, but each with different models, frameworks and products. Denmark looks set to be a particularly competitive territory, with 48 operators applying for a licence in the first phase “ attracted in part by the 20% GGR tax rate “ and seen as one of the fairest in Europe. Despite a complicated application process, Spain will also inevitably be a competitive ringfenced market with 16 operators confirmed as entering in the first phase.
However, this year has seen considerable consolidation after numerous operators suffered at the hands of an unworkable French market in the summer of 2010 where a high rate of tax and a limited product offering has recently seen sports betting revenues reduce and, as a result, the proportion of players using offshore sites increase. This has led to the likes of Betclic Everest delaying its entry into Spain and Denmark, preferring instead to concentrate on existing, and often grey, markets rather than incur the costs of entering newly regulating territories.
Other markets have hinted at opening up, but the majority have put forward regulatory proposal that have been instantly rejected by the gaming industry as unfair or unworkable. Germany’s proposals, for example, for a 16.66% annual turnover tax and strict conditions wiped more than 25% from bwin.party’s share price in 24 hours, while Greece has been the subject of two EU complaints by the Remote Gambling Association over what the lobby group views as unfair terms skewed towards protecting the incumbent state monopoly OPAP.
Meanwhile, five-year old regulated market Italy continues to grow with the introduction of cash poker and casino licences in July this year boosting the overall market by 2.8% year-on-year by November 2011. The Italian regulator AAMS has also begun to crack down on unlicensed operators, with the introduction of a blacklist aided by the co-operation of large financial institutions. This approach will also be adopted by Belgium next year.
The Netherlands announced its attention to issue egaming licenses early in 2011, but regulation in Sweden now seems unlikely to occur before the end of the current parliamentary period in 2014.
The key news on European regulation from 2011:
Online sports betting in France drops 26.5%
Greece approves egaming legislation
Germany confirms restrictive sports betting opening
EC approves Schleswig Holstein law