Regulation round-up 27 November 2012
The biggest regulatory news from the egaming industry in the last seven days (21 November to 27 November 2012).
Betfair confirms Greek withdrawal
Operator awaiting “greater clarity” on situation – considers existing legislation incompatible with EU law.
Betfair has confirmed that it is to withdraw from the Greek egaming market until such time that there is greater clarity on the regulatory situation.
The operator, which had previously anticipated £13m in revenues and £7m of contribution from the market in the current financial year, maintains its stance that the existing regulations do not comply with EU law,
These views echo concerns held by lobby group the Remote Gambling Association, with whom Betfair is working “To achieve legislation that allows fair competition in the market.”
The RGA has already suggested it will launch a legal challenge to the Greek legislation, which it deems “unfair” and “unworkable”, with chief executive Clive Hawkswood saying: “[The regulations] are blatantly protectionist in nature and if EU Internal Market rules mean anything then the European Commission must take prompt action to make Greece reconsider.”
RGA and EGBA issue joint Greek complaint
Major egaming lobby groups the Remote Gambling Association (RGA) and European Gaming and Betting Association (EGBA) have filed a joint complaint to the European Commission in the light of the lack of transparency concerning the extension of OPAP’s monopoly.
In a joint release sent this morning the groups express their concerns about the “non-notification” of measures expected to result in the extension of OPAP’s monopoly in the EU country until 2030, while again questioning the compliance of Greek regulations with EU law.
A joint statement argues: “This process has shown a disdain for EU law and has been wholly non-transparent. The failure to notify the Commission…reflects that.”
RGA concerned about Belgium setting precedent
Failure to act on the Belgian Gaming Association’s “blatant” failure to comply with EU law could set a dangerous precedent for other non-compliant jurisdictions, the chief executive of lobby group the Remote Gaming Association has revealed.
Clive Hawkswood told eGaming Review “It is time to draw a line in the sand,” arguing “It’s not a large market but it’s so blatant that if you’re doing something similar to Belgium then you might now think it’s fine to carry on doing it.
“Even if you are doing something else which is potentially in breach of EU law and see they’re letting Belgium go then you’re not going to think what you’re doing is a problem,” he added.
Seven days in regulation:
Germany extends application deadline until 21 Jan 2013
The German state of Hesse today ruled that it will accept further applications until 21 January next year, adding yet another two weeks to the initial delay that was announced earlier this week.
The state, that has been given the responsibility to process more than 90 applications for the country’s prospective 20 sports betting licences, has according to sources, been inundated with questions from companies that have applied.
Answers to these questions must officially be responded to and published by the state with the local authorities facing a huge backlog of queries before it faces up to the task of filtering which companies will and will not be successful in gaining the small number of licences on offer under the country’s non-European Commission backed State Treaty.
EC issues opinion against Czech gambling law
The European Commission has issued a detailed opinion against the Czech Republic’s regulatory proposals, paying particular attention to elements such as its requirement for operators to be domiciled in the EU Member State.
It has extended the standstill period on the legislation until 17 December, however it notes that the various shortcomings of the current proposals indicate “Entirely new legislation appears to be the most favourable option.”
The opinion – the second in recent months in relation to Czech proposals – states: “The conclusion that the draft regulation is compatible with EU law, even if, in the question of the condition that the operator be domiciled in the Czech Republic,” however it recognises that this element “May be problematic with regards to European law.”
Bwin.party to exit Argentina
Bwin.party is winding down its operations in Argentina following the termination of its licence in Misiones, the province’s regulator has confirmed on its website.
A statement by the Provincial Institute of Lottery and Casinos (IPLyC) of Misiones “ one of the 23 provinces of Argentina and the only one to have regulated online gaming “ says it had “revoked” the licences of both Bwin Argentina SA and fellow operator Plays Mil SRL due to a “breach of contract”.
“In order to defend the consumer and strive for responsible gaming, the agency clarified that the cancellation of the license, any activity that is not authorised by the Institute shall be considered illegal gambling in the province of Misiones,” it explains.
Canada sports betting debate starts today
The Canada Senate will today begin discussing MP Joe Comartin’s single-event sports betting bill, which has until the session ends on 21 December to be passed into law.
Bill C-290 was approved by the House of Commons in March and passed a Senate Legal and Constitutional Affairs Committee hearing earlier this month.
If passed into law the bill would allow Canadians to bet on single sporting events, currently off limits with wagers only permitted to be placed on multiple outcomes.
Hard Rock applies for Nevada licence
Brookfield Real Estate Financial (BREF), the owner of the Hard Rock Hotel and Casino in Las Vegas, has filed an application to become an online poker operator in Nevada.
Global investment bank BREF, which acquired the operator’s Vegas business in March 2011, joins data centre provider Switch Communications Group and hotel-casino Treasure Island as the latest names on the growing list of applicants.
New Jersey condemns sports leagues’ lawsuit
New Jersey has filed papers challenging the PASPA federal ban on sports betting and opposing the professional sport leagues’ suit against the state’s bid to legalise it.
In a cross-motion for a summary judgement, where both parties submit briefs to the judge, in this case District Court Judge Michael Shipp, New Jersey argues that the sport associations lack the required constitutional standing and facts to claim that legalised sports betting would harm the leagues.