Regulation round-up 20 November 2012
The biggest regulatory news from the egaming industry in the last seven days (14 November to 20 November 2012).
Egaming execs call for Belgium action
Letter to Financial Times from heads of 12 Power 50 operators attempts to persuade European Commission to ensure Member State complies with EU law.
Fourteen executives from 12 members of the eGaming Review Power 50 have written to the Financial Times calling for the European Commission to force Belgium to comply with EU law following last week’s questioning of bwin.party co-CEO Norbert Teufelberger in Brussels.
The letter, signed by Teufelberger and fellow bwin.party co-chief Jim Ryan, as well as the president of Betclic Everest, managing director of Gamesys and CEOs of nine further operators, argues: “The time for polite rhetoric is now over. It is time for deeds not words.”
It makes reference to the direct complaint launched against Belgium by the European Commission in 2010 following the earlier rejection of the country’s draft regulation, and argues: “While the Belgian authorities are free to intimidate Europe’s leading online gaming groups with threats about the consequences of challenging their domestic gambling laws, the European Commission has yet to receive an answer to its own concerns regarding the regulatory regime in Belgium that have remained unresolved since issuing its detailed opinion back in 2009.”
Since adding a number of dot.com operators to its blacklist of unlicensed sites, the Belgium has become engaged in legal wrangles with both bwin.party and bet-at-home. While a number of operators (including PokerStars and Unibet) have secured licences in the jurisdiction, others with licences in other territories have declined to apply on the basis that they consider Belgian egaming law not to comply with EU requirements.
Belgian regulator: We’re not protectionist
Peter Naessens considers his country’s regulatory regime viable in the absence of a common EU framework – BetVictor CEO says “You have to worry” following detainment of Norbert Teufelberger last week.
The head of the regulatory unit at the Belgian Gaming Commission (BGC) has told eGaming Review that he considers the country’s under-pressure regulatory regime as “viable” and “not protectionist”.
Peter Naessens (pictured) was speaking following yesterday’s publication of an open letter from 14 egaming executives which called upon the European Commission to take urgent action against those regulatory regimes which fail to comply with EU law.
He argued: “In the absence of a common European framework on gaming we are taking actions and not just using words – we think [our system] is viable for European operators without such a [Europe-wide] model.
“We have operators from various countries operating in Belgium in a viable way. Maybe if there was a European framework then measures could be less restrictive, however gaming must in certain ways be restrictive as we have to protect vulnerable players and in the meantime we’re proving we’re not protectionist,” Naessens added.
Bwin.party defends Belgium position
Operator remains in discussions with regulator after questioning and subsequent release of co-CEO.
bwin.party has issued a statement in which it maintained its stance with regard to Belgium’s egaming regulations, following the questioning and subsequent release of co-chief executive Norbert Teufelberger in Brussels last week.
It states that: “bwin.party intends to continue its on-going dialogue with the BGC,” after what it says was a case of Teufelberger “[complying] voluntarily with a request to attend an interview with representatives from the Belgium Gambling Commission.
“The request to attend the interview arose from the Belgium Gambling Commission’s (‘BGC’) view that bwin.party was in breach of the country’s gambling legislation. bwin.party maintains the position that it is acting and has always acted in compliance with applicable laws,” it continued.
Court rules Stars’ pre-2012 Spain offering was legal
Barcelona court rejects claims brought forward by Codere.
A Barcelona court has ruled in favour of PokerStars and confirmed that it has provided a legal service in Spain since it began operating there in 2001.
The court rejected claims to the contrary brought by predominantly land-based Spanish gaming company Codere. The court ruled that given the lack of regulation prior to June 2012, there was no law preventing egaming operations in the country.
Stars was granted an egaming licence for its dot.es offering by the Spanish General Directorate for the Regulation of Gambling (DGOJ) in June along with 52 other operators.
PokerStars group general counsel Paul Telford said: “This ruling confirms the legal advice we have been given and which we have followed in Spain for years. We are very pleased the court agreed with our position and look forward to continuing to provide our licensed poker services as the leading brand in the Spanish market.”
Lederer files motion to dismiss second amended complaint
Lawyer for former Tiltware board member describes complaint as “sprawling” “ argues FTP was never an illegal gambling business under IGBA.
Former Tiltware board member Howard Lederer has filed a motion to dismiss the Second Amended Complaint, in which he was accused of using fraudulently obtained Full Tilt Poker (FTP) player funds to finance his properties and personal bank accounts.
Describing the complaint as “sprawling”, Lederer’s lawyer Elliot R Peters alleges in a 26-page accompanying memorandum that it is “So structurally complex that it takes a cartographer to understand what is being alleged and against whom.”
Repeating arguments made in August’s call for a status conference with regard to the allegations levelled against Lederer, Peters cites the United States v DiCristina ruling in arguing that Full Tilt Poker did not constitute an illegal gambling business under the Illegal Gambling Business Act (IGBA).
Seven days in regulation:
Probability awarded Italian licence
Mobile gaming business poised to enter slots market on a B2B basis if granted further authorisation next month.
Mobile gambling operator and B2B provider Probability has secured an Italian egaming licence, which will allow it to introduce a full white-label offering to the market.
The 10-year licence comes just months after the company completed the acquisition of Playyoo, an Italian-facing mobile specialist which has B2B agreements in place with Snai, Cogetech and Neomobile.
It will now be able to augment those B2B relationships with a complementary white-label service, and stands the company in good stead ahead of the issue of online slots authorisations in December this year.
Probability already offers a white-label service in the UK, which – according to analyst Ivor Jones of Numis – accounts for approximately 20% of revenue.
MGM among latest Nevada licensees
MGM, Z4Poker and CAMS receive approval from state’s Gaming Commission.
The Nevada Gaming Commission (NGC) has awarded a further three online poker operator and supplier licences, bringing the total number to 16 since it began the process in May.
The latest group includes casino group MGM Resorts that, along with Boyd Gaming, has entered into an online poker partnership with bwin.party in preparation for a regulated US market.
MGM told regulators last month that it would set up a freeplay poker site by March 2013 with a view to offering a real-money product once bwin.party is licensed. MGM already has a social game on Facebook, myVegas, which was launched in August.
However the NGC panel yesterday made it clear that MGM’s approval did not guarantee bwin.party would also be given the green light to operate in the state.
Reid and Kyl pessimistic on bill progress
Both Senators say it will be tough to pass legislation in lame duck session.
US Senators Harry Reid and Jon Kyl have both admitted that it will be difficult to pass their federal online poker bill in the lame duck session as legislation to improve the economy will take priority.
The lame duck session began on 7 November following the US elections and runs until 31 December. As a result of the elections, the key US politicians backing federal regulation all held on to their positions of power – Reid remains Senate majority leader and Nevada Senator Dean Heller, the Republican charged with the task of gaining GOP support for the bill, defeated Congresswoman Shelley Berkley and won a US Senate seat.
But Kyl, who will retire from his role as Arizona Senator next month, believes Congress politicians’ need to pass legislation to avert the “fiscal cliff’, which would see automatic tax hikes and spending cuts come into effect in January 2013, may mean that there will not be enough time to pass the poker bill.
PPA chairman suggests Reid/Kyl bill changes
Alfonse D’Amato calls for international player pools and outlines five other areas needing “improvement”.
The Poker Players Alliance (PPA) chairman has written to US Senators Harry Reid and Jon Kyl suggesting six alterations to their draft federal online poker bill.
Alfonse D’Amato argues in the letter that player pools should include international users on regulated sites, that the bill ought to offer more flexibility to state lotteries as well as tribes, and that it should drop language which would exclude the likes of PokerStars and Full Tilt for five years.
He also suggests that states already permitting commercial land-based poker should be considered to have opted-in automatically for online poker, and that the proposed 15 month “black out period’ is unnecessarily long.