Regulation round-up 23 September 2014
The biggest regulatory news from the egaming industry in the last seven days (17 September to 23 September 2014)
German licensing halted amid legal challenges
Newly-licensed operators could face two-year delay before going live after around 12 unsuccessful applicants lodge appeals
The German sports betting licensing process has been halted by the Administrative Court of Wiesbaden after as many as 12 unsuccessful applicants lodged legal challenges, potentially delaying the launch of the market for another two years.
The Hessian Interior Ministry recently awarded 20 operators with provisional licences and initiated a stand-still period which was due to end 18 September, after which full licences were to be issued enabling successful applicants to launch online sportsbooks.
However a number of unsuccessful applicants have legally challenged the process and the Administrative Court of Wiesbaden has ordered it to be halted while legal challenges are to be heard.
German land-based giant Tipico confirmed it was one of the challengers and CEO Jan Bolz said he welcomed the decision to put the brakes on the licensing process, describing the delay as “confirmation of our fundamental objections against this whole procedure”.
European Commission issues Greek ultimatum
The European Commission has issued an ultimatum to the Greek Ministry of Finance and threatened to advance previously suspended infringement proceedings against the country if it does not make amendments to its gaming law by the end of October.
In a letter from the EC addressed to the Greek general secretary for fiscal policy Tassos Anastasatos in August and seen by eGaming Review, the Commission requested several documents and clarifications pertaining to Greece’s gambling laws.
Principally the Commission sought to receive clarification that the Hellenic Gaming Commission had yet to become accountable for a licensing process in the country while also seeking an update on whether or not proposed amendments to the country’s gambling laws regarding Greek monopoly OPAP’s exclusive right to operate online games of chance.
Seven days in regulation:
Ladbrokes forced to pull advertising posters
Ladbrokes has been forced to pull two posters from its Ladbrokes Life advertising campaign after the Advertising Standards Authority (ASA) received almost 100 complaints since it was unveiled in April.
Speaking to eGR, a Ladbrokes spokesperson said it accepted that it had “erred” with regards to the two posters and would “immediately comply with the findings”.
“We remain committed to our advertising meeting all the correct standards and take seriously our obligation to target responsible gambling messages as evidenced by our own dedicated responsible gambling advert, a first for the industry,” the spokesperson added.
Gambling Commission issues Senet Group warning
The newly-formed Senet Group must continue to adhere to current laws and measures already put in place by parliament and the regulator, Great Britain’s Gambling Commission has said.
Four of the UK’s largest bookmakers announced the formation of a new self-regulatory body established to clamp down on irresponsible gambling advertising and improve the industry’s public image.
As well as signing up to a pre-watershed ban on free bet advertising, Ladbrokes, William Hill, Paddy Power and Coral all agreed for the Senet Group to have the power to name and issue fines to bookmakers found to be flouting its own rules.
Winamax to cease GB operations this month
French operator Winamax will not be applying for a Great Britain gambling licence and will cease marketing to British-based customers by the end of the month.
The Paris-based operator has yet to officially confirm its reasons behind the decision but it is believed it was keen to avoid a double taxation scenario whereby player revenues could be hit with a levy in both Britain and France.
The new regulatory framework in Great Britain is set to go live on 1 October and has led to a flood of operators announcing withdrawals from the market, in part or whole, including the likes of Pinnacle Sports, SBObet, 12Bet, Go Wild, and Cherry.
GB regulator receives 161 continuation applications
Great Britain’s Gambling Commission received 161 applications for continuation licences by the close of the licensing window on midnight Tuesday last week despite a number of operators continuing to weigh-up their future in the re-regulating market.
Operators licensed in white-listed jurisdictions were encouraged to apply for a permit which would enable them to trade unaffected up until their full operating licence applications have been determined.
The total number of applications submitted was more than the 150 the regulator had originally anticipated back in June, with the figure boosted by a late flurry of last day activity.
BetButler has licence revoked by Gambling Commission
The GB Gambling Commission has revoked sports betting firm BetButler’s licence and confirmed the operator had breached several licensing conditions.
A statement issued by the regulator said it was not satisfied with the competence or financial circumstances BetButler, and that it had found it “unsuitable to carry out its licensed activities in a manner which is consistent with the licensing objectives”.
The revocation comes two weeks after BetButler announced that it had ceased trading ahead of a potential sale and urged all customers to forward queries to a new email address registered in gambling licensing jurisdiction of Curacao.
Levy board agrees on 2015-16 British racing levy
Online bookmakers based in Great Britain will continue to pay a 10.75% levy on profits derived from British horseracing after the Levy Board came to an early agreement on what is likely to be the final scheme before the inclusion of offshore operators.
The 54th Levy scheme, which will run from 1 April 2015 to 31 March 2016, will see Betfair contribute an estimated £7.8m to a total fund expected to yield roughly £74.6m. The likes of bet365 and Sky Bet will also pay into the pot.
The majority of the Levy will be paid by the ‘big four’ land-based bookies of William Hill, Betfred, Coral and Ladbrokes, with the quartet having guaranteed to make a combined minimum contribution of £47.5m across the period based on their retail business.
GB supplier deadline put back two months
Great Britain’s Gambling Commission has given software providers an additional two months in which to obtain a supplier licence and comply with the market’s new licensing regime.
Operators had previously been required to ensure their gambling software was provided by a licensed supplier from 31 January 2014, however, in an update to the Commission’s FAQs, this date has now been pushed back until 31 March 2014.
The Commission had originally set the January date “ almost four months after the operating licences go live on 1 October “ in order to give software suppliers and operators time to adapt to the new licensing requirements.
Dutch State Lottery investigated over irregularities
The Dutch Gaming Authority (Kansspelautoriteit) said it will investigate the security of systems employed by the Dutch State Lottery operator Staatsloterij after media reports in the country suggested they were open to manipulation.
Reports emerged in the Dutch press over the weekend alleging and supplied by international lottery supplier Intralot were insecure.
Dutch newspaper Volkskrant cited four former Intralot employees as having said it would be possible to manipulate the outcome of the State Lottery due to the “vulnerability” of its operating systems.