Regulation round-up 11 August 2015
The biggest regulatory news from the egaming industry in the last seven days (5 August to 11 August 2015)
German tax authorities chase Malta-based sportsbooks
Tax office writes to a number of firms in Malta who they believe may have failed to declare due taxes
A number of Malta sportsbooks are being pursued by German authorities regarding potential unpaid taxes derived from bets struck with players based within German borders.
The unnamed firms, which the German tax office believes may be accepting customers from Germany, have received letters asking to clarify their tax arrangements in the country.
The pursuit of unpaid taxes is unrelated to the country’s current regulatory situation – even those firms who failed to make the provisional list of sports betting licensees remain subject to Germany’s 5% tax on stakes.
And according to gaming lawyer and president of the International Masters of Gaming Law, Joerg Hofmann, directors found guilty evading the levy could face criminal liability if due taxes remain undeclared.
PokerStars awarded Irish betting licence
PokerStars has become the first major operator to announce it has been granted a sports betting licence by the gaming regulator in the Republic of Ireland.
The world’s largest poker operator confirmed it had been awarded a Remote Bookmaker’s Licence from the Irish Revenue Commissioners, allowing it to offer its sportsbook to players in the recently re-regulated market.
Stars said its existing poker and casino games would continue to be operated under its European licence from Malta, but would pay a local betting duty to the government of the Republic of Ireland.
PoC dents William Hill Online H1 profits
William Hill has reported a 20% year-on-year fall in H1 online profits, despite a 7% rise in revenues, as the operator took a £35m hit from the UK’s new taxation regime.
The operator’s online cost of sales, which included the Point of Consumption tax, soared 154% year-on-year to £63m as profit fell by £16.2m to £64.9m, however, underlying metrics remained positive with online revenues up 7% to £279.9m overall and 16% in its core UK market.
“Whilst factors such as the Point of Consumption tax and the increase in the Machine Games Duty rate have impacted our cost base as we expected, we continue to progress our strategy and invest in our long-term growth drivers,” CEO James Henderson said.
Egaming software provider BetConstruct has obtained a Class 4 Remote Gaming Licence from the Malta Gaming Authority.
BetConstruct was awarded the licence by the Maltese regulator last week and applies to the supplier’s sports betting product.
“The Malta Gaming Authority is one of the most preferred global remote gaming regulators with focus on fair and transparent gaming,” Vahe Baloulian, CEO of BetConstruct, said.
Being granted this license once more validates BetConstruct’s standing in the gaming industry and our commitment to the highest standards of service,” he added.
The Alberta Gaming and Liquor Commission (AGLC) is putting the final touches to proposals which would allow the Canadian provincial lottery to offer games to players over the internet.
AGLC president Bill Robinson told local news site 630 Ched that the Commission estimates Albertans are spending around CA$120m on unlicensed off-shore sites every year.
“By creating an opportunity here in Alberta, those dollars that now float away off-shore can stay in Alberta can be used by charities and our Government for great programs right across the province,” Robinson said.