Regulation round-up 14 March 2017
The biggest regulatory news from the egaming industry in the last seven days (8 March to 14 March 2017)
Danish government to liberalise online bingo market
Danish Gambling Act amendment to open up vertical to new operators in an attempt to reduce size of unregulated market
Denmark’s online bingo market could be opened up to competition as the Danish government prepares new legislation which will remove Danske Spil’s status as the vertical’s monopoly operator.
An amendment to the country’s Gambling Act is expected to be put before the Danish Parliament over the next few sessions and, according to sources, could come into effect during Q2 2018.
The proposal comes as the government no longer deems the country’s monopoly system as effective, with the introduction of licensed competition now considered the best way to channel players away from unlicensed operators and increase tax revenues.
According to government estimates, the unregulated online market is estimated to be nearly double the size of the regulated market operated by Danske Spil.
UK Chancellor reduces free play tax expectations by 25%
UK-facing operators breathed a sigh of relief last week after the country’s Chancellor steered clear of hitting the industry with any new taxes, only delivering an update on a levy announced last year.
Delivering his annual Budget speech, Philip Hammond revised down the tax income expected from the soon-to-be-incorporated tax on gaming free plays, as announced in 2016.
The levy, which is due to come into force on 1 August, had been expected to raise £100m per annum, however, the Exchequer reduced that expectation to £75m in its first full year, rising to £80m in year four, after being warned operators would mitigate the tax by amending their marketing strategies.
Seven days in regulation:
European Commission slams German online gaming plan
The European Commission has warned German states that their latest plan to regulate online gambling is not fit for purpose because it is anti-competitive.
The leaders of the 16 German lander are due to meet onThursday to vote on their proposed amendments to the State Treaty on gambling, which include a removal of the cap on sportsbook licences and a closer look at regulating online casino.
However the European Commission said in a private letter to the German Prime Ministers that these amendments were “not a viable solution” to the issue of online gambling.
Paddy Power to be withdrawn from Italy before year end
Paddy Power will be withdrawn from Italy within the next nine months as the firm continues to move towards a single brand strategy outside of Ireland and the UK, Paddy Power Betfair CEO Breon Corcoran said last week.
The firm had previously stated its intention to adopt a single brand in international markets and speaking to analysts following its results publication, Corcoran confirmed Betfair would take on Paddy Power’s Italian customer database, pending regulatory approval.
“The plan was to move to one brand, Betfair, but to do that there was a regulatory requirement [in Italy] in the approval process before customers can be migrated,” Corcoran said.