Regulation round-up 28 February 2017
The biggest regulatory news from the egaming industry in the last seven days (22 February to 28 February 2017)
Ladbrokes loses £71m court battle with HMRC
Operator hit with hefty bill after losing an appeal over its use of tax avoidance scheme promoted by accountancy firm Deloitte
Ladbrokes has been hit with a £71m bill after losing a long-running court battle with HM Revenue and Customs (HMRC) over its use of a controversial tax avoidance scheme.
The London-listed operator used a Deloitte-promoted tax avoidance programme in 2008 as part of a strategy to reduce its corporation tax bill via a legal loophole that has since closed.
According to HMRC, the scheme involved an “artificially manufactured” share price fall in one of Ladbrokes’ subsidiaries, generating a loss in another group subsidiary to minimise its tax bill.
Ladbrokes admitted the programme, which led to no real group losses, aimed to reduce the amount it paid in corporation tax but claimed it was not caught out by anti-avoidance rules.
Read more…
LeoVegas prepares for “tough” free play tax introduction
LeoVegas has admitted it is expecting a “tough” time when the tax on free plays is introduced in the UK later this year and said competition between firms will only increase.
Last year, the government announced plans to abolish the tax-free status of free plays for online casino and bingo revenues although following consultation, only the first use of free plays will be subject to PoC tax when the amendment is implemented in August 2017.
Speaking to EGR Intel, LeoVegas UK & Ireland country manager Shenaly Amin admitted the new legislation will be tough on the Stockholm-listed operator and the firm is having to adapt its bonus strategy within its CRM campaigns.
“It’s going to impact all the online operators in the industry, particularly as there is such a strong bonus culture in the UK,” said Amin.
Seven days in regulation:
Gambling Commission probes Sun Bets over FA Cup novelty bet
Sun Bets is being investigated by the Gambling Commission over potential integrity issues after it took bets on Sutton United reserve goalkeeper Wayne Shaw’s pie-eating stunt.
The London-based betting brand inked a special one-game sponsorship deal with Sutton for its televised FA Cup fixture and promoted a special bet on Shaw to eat a pie live on air during the game at odds of 8/1.
Shaw, who told press he was aware of the market, was caught on camera eating a pie in the second half of the match against Arsenal.
As a result the Commission is now investigating the incident to establish whether Sun Bets was taking wagers on an event it knew the outcome of.
Read more…
PokerStars confirms plans to leave Australia
PokerStars has confirmed it plans to withdraw from Australia if online gambling rules are changed in the coming weeks.
The Amaya-owned brand emailed Australian customers last week warning them it would be forced to block real-money play if the Interactive Gambling Amendment Bill is passed following a Senate debate at the end of March.
The bill would ban all online gambling sites without a valid Australian licence.