Regulation round-up 4 September 2012
The biggest regulatory news from the egaming industry in the last seven days (29 August to 4 September 2012).
Bwin.party goes for German licence despite Treaty “failing to meet EU requirements”
Co-CEO Jim Ryan says only thing clear in Germany is that “without any further clarity from the EC or European court things are likely to remain unclear for some time”.
Bwin.party will apply for a German sports betting licence by 4 September and pay the resulting 5% turnover tax under the country’s non-European Commission approved Gambling State Treaty despite continuing to believe that it “fails to meet the requirements of EU law”, co-CEO Jim Ryan has admitted.
During a financial results presentation that revealed that 22% of the operator’s net gaming revenues were generated in Germany in the first half of this year – its largest market – Ryan said the company would apply for a licence under the revised “E15″ Treaty but equally continue to operate “all products” while paying tax on sports betting as required by German federal law.
In July the company said that Germany’s introduction of a turnover tax would knock between 5m to 10m from its full year earnings before interest, tax depreciation and amortisation, while just two months earlier it announced it would pay Spanish authorities more than 33m in back taxes.
Seven days in regulation:
Schleswig-Holstein awards five new sports betting licences
The Interior Ministry of Schleswig Holstein has awarded five further sports betting licences despite its newly formed coalition government seeking a return to the nationwide Intrastate Gambling Treaty.
Ladbrokes, 888 UK, Admiral Sportwetten (Rellingen), Admiral Sportwetten (Gumpoldskirchen in Austria) and Cashpoint Malta Ltd (Malta) have all been awarded licences, each one valid until August 26 2018. This brings the total amount of licences in Germany’s northernmost state to 12 including Betfair, Bet365, bwin.party, mybet, Die Nordwestlotto, Tipico and betathome.
A Ladbrokes spokesman told eGaming Review the company was “very pleased” with being awarded a Schleswig Holstein licence and that it was monitoring regulatory developments due to the “ongoing uncertainty” in Germany. While it had received notification via a regional government press release this morning Ladbrokes has yet to receive “full written confirmation”, the spokesman said. The company currently takes bets from Germany, however he added this was a “very small part of the business”.
Operators given more time to apply for German licence
The German Land of Hesse has extended the deadline for local and private operators to apply for the 20 sports betting licences it has made available under the country’s Gambling State Treaty.
The western state’s minister of interior and sports said it would extend the deadline for phase one of the application process by a further eight days from 4 to 12 September. The reasons for the extension are, as yet, unknown.
So far only mybet (formerly JAXX) and bwin.party have said they will apply for a licence despite also having recently been approved in breakaway state Schleswig Holstein that, unlike the State Treaty, has been formally backed by the European Commission. The country’s northernmost state saw its licensing process open in May only for a new local coalition government to instigate a repeal and seek a return to the controversial nationwide solution that was ratified in July.
Titanbet named first Playtech/Geneity licensee
Long-term Playtech licensee Titanbet is the supplier’s first customer to sign up to its new Geneity technology-based sports betting platform following its acquisition earlier this year, eGaming Review can confirm.
Following the first half financial results Mor Weizer, CEO of Playtech told eGR that Titanbet, as well as already using Playtech’s casino, poker, bingo and live gaming technology, is its first online and mobile sports licensee and has this week soft launched the supplier’s newly acquired sports betting platform.
Playtech took over the British software provider at the end of January this year for an initial consideration of £11m plus a further performance-based £4m.
WMS and Stratosphere set for Nevada licence hearing
WMS Gaming and the owner of Las Vegas’ Stratosphere Casino will have their applications for online poker licences in Nevada considered by the Gaming Control Board (GCB) on Thursday.
If recommended by the GCB, the Nevada Gaming Commission will decide whether to award the licences at its next meeting on 20 September.
Illinois-based WMS has applied for manufacturer and service provider licences, while American Casino & Entertainment Properties (ACEP), the holding company for Stratosphere, had applied for operator and service provider licences in February but has since requested to withdraw its service provider application.
Lederer lawyers call for conference over IGBA ruling
A lawyer for Tiltware board member Howard Lederer has called for Judge Leonard B Sand to hold a status conference in the light of the US v DiCristina ruling which defined poker as not falling under the remit of the Illegal Gambling Business Act (IGBA).
In a letter addressed directly to the judge, Elliot Peters expressed his keenness to “Bring to Your Honor’s attention the recent opinion of the Honourable Jack B Weinstein…in United States v DiCristina,” referring to the ruling in a New York court earlier this month.
Peters makes clear the request from the legal counsel of Lederer’s fellow Tiltware board members Chris Ferguson and Rafe Furst in wishing to join him in the appeal for a status conference with regards to the trio, who were accused in last September’s first amended civil complaint of receiving (between them and Full Tilt Poker CEO Ray Bitar) hundreds of millions of dollars in player funds in the form of distributions.
Player Verify applies for Nevada licence
Player Verify has submitted an application to become a service provider to online poker operators in Nevada.
The Tennessee-based company, launched in 2010, offers a software product which collects player identifying information for egaming sites.
Under regulations enforced by the Nevada Gaming Control Board, online poker sites in Nevada will have 30 days after a player registers to collect information such as driver’s licence, passport and proof of address details in an encrypted format.