Feature: Falling Into Line (Part 3)
The third part of eGR's look at those European countries close to regulating, focusing on Serbia.
Serbia’s tough ride towards regulation
This is the final part of a three-part feature first published in the print edition of eGaming Review. Parts one and two are available to read online, and to subscribe click here.
7 June 2012: SERBIAN OPERATORS PROTEST SPORTINGBET-LOTTERY DEAL
The Serbian Association of Gambling Providers (UPIS) reacted angrily to a partnership between Sportingbet and the country’s national lottery Državna lutrija Srbije, accusing the lottery of “organising sports betting via the internet in a completely unlawful and illegal way”.
In an open letter, the association criticised the lottery for having “grossly violated existing laws” by selecting Sportingbet to power its dot.rs sportsbook, which was launched last week with the operator’s branding, described as being “powered by Državna lutrija Srbije”.
However, the pre-match and in-play betting platform is provided by Sportingbet using the Lottery’s operating licence, via a partnership with the operator’s Greek and Balkan marketing partner Centric Multimedia. Playtech provides the software for all non-sportsbook products onon the site, including lotto, bingo and scratchcard games.
The controversy arose due to the fact that while Serbia’s parliament passed egaming legislation in November last year “ under which successful applicants would be awarded 10-year operating licences, with tax set at 5% of gross gaming yield “ it has yet to draw up technical regulations or officially open the licensing process.
UPIS also complained about the lack of transparency in selecting Sportingbet as the Lottery’s partner, describing the process as being “established without tender and without any public scrutiny of the conditions that are required. Domestic companies were not given the slightest chance to participate, although they have great international references”.
The association went on to say that the decision to select a foreign operator as a partner would “contribute to an additional outflow of money and unnecessary loss of jobs in Serbia”. The country is currently in the midst of a financial crisis, which has seen four-day weeks sporadically introduced in order to conserve electricity.
In February, Sportingbet was announced as one of 70 European sites which the Serbian Gaming Board (SGB) had ordered internet service providers to block players in the country from accessing. At the time, SGB director Aleksandar VuloviÄ told local tabloid Blic that around half of the country’s egaming revenues were going to unlicensed, foreign operators.
UPIS concluded its statement by saying: “UPIS expects that competent authorities will urgently stop this illegal business on the internet, and the new government will review all contested actions and through consistent respect for the law ensure equal treatment of all participants of the market.
“We hope that Serbian citizens will be protected from the influence of foreign firms and a variety of interest groups with questionable reputation, and that equity will be protected because it is a basic condition for economic prosperity of every country. Otherwise, there will be a complete breakdown of the domestic market which will only benefit certain interest groups at the expense of all citizens of Serbia.”
Twenty four hours later…
8 June 2012: SPORTINGBET SERBIA DEAL PRECURSOR TO MARKET OPENING, JAKTA CLAIMS
The Serbian association of operators, technicians and games manufacturers (JAKTA) backed Sportingbet’s partnership with the country’s national lottery Državna lutrija Srbije (DLS), claiming it will act as a precursor to the opening of the licensing process for private operators.
Speaking to eGaming Review, JAKTA president Mirjana Acimovic explained that despite protests from the Serbian Association of Gambling Providers (UPIS), the lottery was within its rights to select Sportingbet to provide its pre-match and in-play betting platform under the terms of the ‘Right to Organise Games of Chance over the Internet’ “ an Act passed through the country’s parliament in 2004 giving Državna lutrija Srbije the exclusive right to offer egaming products in the market. Under the terms of Article 22 of the Act, the state lottery has “the right to engage another corporate body to operate internet gambling games,” according to Acimovic.
“Since the new online regulations are not yet published, DLS may proceed to comply with the old regulation, the same as any operator in Serbia, so it is a valid agreement.
“DLS is a government company and JAKTA is sure it will comply with the law and all future technical standards in order to provide new products to players in a responsible way,” she explained.
Acimovic went on to reveal that following the drafting of technical standards, the SGB is to hold public consultations on regulation, and will look to open the licensing process as soon as possible. “Serbia will bring new technical rules very soon and we are expecting more than 10 licences for online gambling to be issued in near future. We are expecting gaming laboratories to be appointed very soon, and the majority of Serbian operators can see the ‘light at the end of the tunnel’ and that the Serbian gaming market is going to be well regulated and very profitable.
“The Serbian gaming market has seen a strong growth trend, and the number of employees in this industry is also visibly increasing, with more operators and higher budgets coming in,” she added.