Regulation round-up 17 December 2013
The biggest regulatory news from the egaming industry in the last seven days (11 December to 17 December 2013)
New Jersey regulator suspends PokerStars application
State regulator has suspended PokerStars New Jersey licence application for two years citing concerns over founder Isai Scheinberg
New Jersey’s Division of Gaming Enforcement (DGE) has suspended PokerStars application for a licence in the state for two years, citing concerns over PokerStars founder Isai Scheinberg.
The regulator’s decision was based primarily on the unresolved federal indictment against PokerStars founder Isai Scheinberg for the alleged violation of gambling laws.
The DGE highlighted Scheinberg’s alleged violation of the Illegal Gambling Business Act and the Unlawful Internet Gambling Enforcement Act (UIGEA) as a key factor in its decision to suspend the application.
It was also concerned about the alleged involvement of certain PokerStars executives in internet gaming operations in the US post UIGEA.
Turnover tax causing Italian sportsbook decline
Italy’s gambling regulator was told to ditch its sportsbook turnover tax in favour of a levy on gross gaming revenues (GGR) to arrest a continued decline in sports betting spend by experts from DLA Piper and the University of Milan.
Speaking following a seminar organised by law firm DLA Piper earlier this week called ‘Sports betting crisis in Italy “ how to reverse the decline?’ DLA’s Giulio Coraggio told eGaming Review regulator Amministrazione Autonoma dei Monopoli di Stado (AAMS) should trial a 20% GGR tax in order to reinvigorate its flagging market.
According to DLA, remote sports betting spend in Italy has declined 22% from 173m in 2010 to 135m in 2013, in contrast to the UK which has seen a 63% increase in spend from 489m in 2009 to 776 in 2012.
Seven days in regulation:
Five talking points from Lesniak’s grand plans for New Jersey
The first draft of Senator Raymond Lesniak’s Restricted Foreign Internet Wagering (RFIW) bill has several legal inconsistencies that make it uncompetitive compared to jurisdictions like Alderney, Gibraltar, and Malta. For a start, all the significant online operators have already applied for a license in New Jersey. Those that have not applied either have a problem with acquiring a license in the US, or their product is related to sports books, which cannot be licensed in the States in the first place.
What’s more, the bill is intended to attract B2C operators rather than B2B suppliers. To qualify as an operator the entity must be a licensed casino in the US, or any other jurisdiction. On the other hand, other jurisdictions where online gaming is legal do not have the same restrictions.
Opinion: How to avoid the IT minefield PoC will cause
The UK Gambling (Licensing and Advertising) Bill is well on its way to becoming an Act of law. For Westminster, this has been a not overly controversial ‘cleaning up’ exercise; moving Britain to a system of national licensing, after the debacle of the 2009 addition of Antigua & Barbuda to the White List. However, the implications for the gambling industry, particularly relating to IT management, are significant.
In essence, the Bill is relatively straightforward: an operator will need a license from the Gambling Commission if their gambling facilities are used in Great Britain (even if no equipment is located there). This will make the operator liable for the Remote Gambling Duty and they will have to pay 15% of gross gaming revenue on gambling transactions placed in Great Britain.