Regulation round-up 6 November 2012
The biggest regulatory news from the egaming industry in the last seven days (31 October to 6 October 2012).
Dutch coalition pledges to “strongly regulate” online gambling
Gaming tax of 29% to be introduced, while Holland Casino group will be privatised.
The new coalition government in the Netherlands is set to begin issuing egaming licences before the end of its current term, leaders Mark Rutte and Diederik Samson have explained in a joint accord.
Published in the Dutch press, the accord also sees the coalition pledge to privatise the country’s gaming monopoly Holland Casinos Group, a matter previously discussed in January 2011.
A tax rate of 29% is expected to raise 31m per annum as part of wider-ranging anti-austerity measures in the European Union member state, and follows eGaming Review‘s exclusive announcement earlier last month that the country was close to introducing a draft egaming bill for the first time.
Further details of the regulatory regime have not been provided at this stage. The consultation period is anticipated to begin in early 2013, however there will be two elements to the Netherlands’ planned “modernisation” of its gambling policy.
Part one concerns the issuing of lottery licences, which will take the form of an auction process more transparent than earlier, following Betfair winning a protracted legal case last year which found that “The respective decisions to grant licences to De Lotto and Scientific Games Racing are in breach of EU law” due to a perceived lack of transparency.
NetEnt faces £8.2m tax payment
Casino supplier faces prospect of paying up to SEK88m (£8.2m) after an audit into its accounts between 2007 and 2010 discovers an alleged black hole.
Net Entertainment is facing the prospect of paying up to SEK88m (£8.2m) after an audit into the casino supplier’s accounts between 2007 and 2010 discovered an alleged black hole, the Swedish Tax Agency has declared.
In a “preliminary notice of tax assessment” NetEnt said in a statement that the Tax Agency was “considering reassessing” its taxable income between 2007 and 2010 and imposing additional taxes of SEK 67,492,226 and tax surcharges of SEK 20,595,576, a total of SEK 88,087,802. The news sent its share price on the Swedish stock market down by more than 8% at the time of writing to SEK68.
The company immediately rebuffed the claim calling the Agency’s opinion “unfounded”, adding that it will appeal if a decision is made “in line with the tax body’s preliminary notice.
“Net Entertainment does not share the Swedish Tax Agency’s opinion and insists that the Company complies with applicable laws for taxation of the Company’s business,” it added.
German tax harms bwin.party revenues
Third-quarter pro-forma revenues down 5% year-on-year – operator “encouraged” by last month’s EC online gambling action plan.
Bwin.party blamed poor poker revenues and a 5% turnover tax on sports betting in Germany for a 5% year-on-year decline in third-quarter pro forma revenues.
In its interim management statement for the three months ended 30 September, the operator explained that the 20 July decision to remove short-odds single bets in Germany was in part responsible for sports betting revenues falling by 2% year-on-year and amounts wagered falling by 8% compared to the corresponding period in 2011.
Short-odds bets [with odds of less than 1.1] were deemed by bwin.party to be “No longer viable following the introduction of the new turnover tax.”
However sports betting revenues for the nine months to 30 September are flat, coming in at 186.8m, while 2.98bn in amounts wagered over the nine-month period represents a year-on-year increase of 7%.
Pivgame and Muchos Poker in legal dispute
Malta licensee accuses superaffiliate of “evident breaches of contract” – Muchos Poker claims Pivgame owes it several months worth of royalties and that its players are having difficulties cashing out their funds from the PIV cashier.
Malta-licensed operator Pivgame and multi-platform superaffiliate Muchos Poker are locked in a legal dispute after ending their working relationship last week.
Muchos, whose central cashier system allows players to play on various different networks and make P2P transfers between their various accounts on each of these networks, continues to send players to sites including 888 and iPoker skins DafaPoker and Poker770, while it is also in the process of entering the operator space by launching a skin on the Revolution Poker Network early in November.
Pivgame had initially provided Muchos’ players with access to the Enet, IGT Poker, Everleaf, Merge, Revolution and Casino di Venezia networks, however IGT Poker announced plans to close earlier this year while eGaming Review understands that Muchos Poker took the decision itself to end any association with Enet and Everleaf for various reasons.
Seven days in regulation:
ASA rejects Bingo Friendzy Facebook ad complaints
Authority rules that 18+ age restriction on distribution means advert is not in danger of appealing to children.
Complaints against Gamesys’ Facebook advert for its Bingo Friendzy real-money game have not been upheld by the Advertising Standards Authority (ASA).
The two complainants suggested that a Facebook page entitled “Bingo Friendzy … World’s First Real Cash Games on Facebook” could be of particular appeal to children because of the use of “furry cartoon characters,” according to the ASA ruling.
The ASA has not upheld the complaints because of the 18+ age-restricted access to the Bingo Friendzy game enforced by Gamesys subsidiary Profitable Play (PP).
MGM receives Nevada recommendation
Nevada Gaming Commission expected to award online poker licence on 15 November “ Z4Poker and CAMS also approved.
The Nevada Gaming Control Board (GCB) has approved the online poker licence application of MGM Resorts Online with the operator expected to complete the process at a Nevada Gaming Commission (NGC) meeting on 15 November.
Z4Poker’s application was also recommended, as well as service provider CAMS, which has been approved to offer geo-location, player verification and payment processing services.
MGM, which posted a US$181.2m net loss in third quarter results this week, told regulators 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.
Caesars chief “not terribly optimistic” on federal bill progress
Gary Loveman believes the passage of the bill in the lame duck session is “probably less likely rather than more likely” – operator will turn its attention to individual states.
Caesars Entertainment chief executive Gary Loveman has admitted to being “not terribly optimistic” with regards to the passage of a federal egaming bill during the upcoming lame duck session.
Speaking after the operator’s third-quarter financial results, Loveman said: “I think it’s possible, but I think there’s some very pressing issues for the country’s finances that remain in front of the Congress in the lame duck session, and surely we all hope they get attention.”
“It’s possible that the online gaming question will be called in that period, but I think it’s probably less likely rather than more likely,” he added.