Regulation round-up 4 November 2014
The biggest regulatory news from the egaming industry in the last seven days (29 October to 4 November 2014)
South Africa faces online gambling ban in government u-turn
Department of Trade and Industry leaves MPs “dumbfounded” after proposing to dismiss plans to regulated online gambling in favour of outright ban
Online gambling legislation in South Africa has come under threat after the country’s Department of Trade and Industry (DTI) proposed to ban all forms of the activity.
DTI officials last week tabled the proposals with the country’s National Gambling Policy Council, which in turn will finalise a draft policy before submitting it to the country’s Cabinet for final approval.
DTI deputy director-general Zodwa Ntuli and chief director MacDonald Netshitenzhe said that a ban on online gambling was designed to limit gambling to traditional forms, and that legalising it would not necessarily result in job creation.
Sources familiar with the matter told eGaming Review the DTI’s announcement left MPs “dumbfounded” and marked a complete u-turn, after all previous signs had pointed towards legislation that would liberalise the market.
Australian government begins black market crackdown
The Australian government has responded to operator concerns over a growing offshore gambling market by establishing a national working group to crackdown on unlicensed betting activity.
Federal minister for social services Kevin Andrews and minister for racing Denis Napthine announced the formation of the group last week, claiming it had become “critical” to stamp out illegitimate offshore operators who posed “serious integrity and revenue risks” to the Australian industry.
“There are significant numbers of illegitimate offshore operators already targeting Australian racing and sport and it is vital that an effective regulatory regime be introduced to address the serious integrity and revenue risks that they pose,” Andrews said.
Seven days in regulation:
Malaysia to explore tighter online gambling laws
Malaysia’s government will consider implementing stricter online gambling regulations next year as part of a wider clampdown on offshore gambling.
The country’s attorney-general Tan Sri Abdul Gani Patail said last week his chambers would submit a proposal to amend existing laws or draft new ones in a bid to curb “illegal” gambling, which Gani said is mostly done online.
“It is necessary not because the existing law is obsolete, the problem now is because many illegal gambling activities are done online,” he told the Malaysian Star newspaper.
ASA publishes gambling advertising review
The Advertising Standards Authority (ASA) has published its review into gambling advertising and identified several areas that it considers warrant further consideration, including the need for it to be more proactive in issues relating to socially responsible marketing.
Research conducted by the UK’s advertising watchdog and independent agency Research Works found that while the authority’s decision making is largely in line with public opinion, the ASA needs to be more vigilant around ads which could appeal to small children.
Concerns are also raised over the transparency and accuracy of gambling sales promotions, while the number of adverts indirectly linking gambling with toughness, resilience and recklessness were also questioned.
Spain re-opens licensing window
The Spanish regulator La Dirección General de Ordenación del Juego (DGOJ) has finally re-opened its licensing window in a move which is expected to usher in around 12 new market entrants and provide a boost to the country’s current online casino operators.
The window, which invites general applications from those not currently active in Spain’s regulated market and introduces slots and exchange betting singular licences for current permit holders, opened on 1 November and will remain open until 9 December.
Operators are required to submit applications electronically via the DGOJ’s website with the regulator advising firms to allow up to six months for applications to be processed and licenses to be issued.
Betsson CEO buoyed by Swedish re-regulation
Betsson AB chief executive Magnus Silfverberg cthe Swedish government’s hastily announced liberalisation of the online Swedish gambling market is “positive news” so long as a sensible tax rate can be established.
Speaking to eGR, Silfverberg said he welcomed the European Commission’s (EC) decision earlier this month to refer Sweden to the European Court of Justice for its perceived failure to address its “non-compliant” online gambling laws.
Following the EC’s decision, the Swedish government revealed it would fast-track plans to introduce a fully-licensed liberalised framework, opening up current monopoly Svenska Spel to outside competition.
French Q3 sportsbook revenues soar 94%
Gross gaming revenues (GGR) from the regulated French online sports betting market almost doubled in Q3 2014 as the country’s online poker market continue to struggle.
According to figures released by the country’s regulator l’Autorité de regulation des jeux en ligne (ARJEL) on Friday, sports betting GGR increased 94% year-on-year to 60m, up from 31m compared to the same period last year.
ARJEL said the knockout stages of the FIFA World Cup in particular provided a significant boost to French sportsbook revenues, with 47m staked on this stage alone, while operators recorded almost 245m in total bets over the quarter.
New Jersey set for sports betting showdown next month
The federal judge who issued a temporary injunction to prevent New Jersey casinos and racetracks from offering sports betting has set November 20 as the date for a hearing to decide whether he will extend the ban.
The showdown between New Jersey and several sports leagues, including the National Collegiate Athletic Association and the NFL, will take place in front of Judge Michael Shipp.
Shipp granted an injunction to prevent Monmouth Park launching its William Hill US-powered sportsbook last month.