Regulation round-up 11 June 2013
The biggest regulatory news from the egaming industry in the last seven days (05 June to 11 June 2013)
Federal bill looks to exploit DoJ’s Wire Act clarification
Congressman Peter King states that federal legislation “needs to be updated” “ bill would allow for all forms of gambling except sports betting
A federal egaming bill published by Republican Representative Peter King will look to take advantage of the Department of Justice’s clarification of the Wire Act by pushing to legalise all forms of online gambling with the exception of sports betting.
King’s bill, first mooted in May, was originally expected to restrict egaming to poker only.
The clarification, issued in December 2011, states that the Wire Act did not apply to forms of online gambling other than sports. Representative King (Rep-NY) argues in that as a number of states and Indian tribes have since introduced online gambling legislation, a federal bill is necessary to ensure consumer protection.
In the text of the Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2013, he argues federal legislation “needs to be updated” to “strengthen enforcement”. King adds that doing so would “ensure a framework that protects consumers and the ability of states to enforce laws relating to internet gambling.”
Analysis: Lower tax would capture higher percentage of Dutch player spend
A lower tax rate than the proposed 20% on gross profit would allow the Netherlands Gaming Authority (Kansspelautoriteit) to capture a higher percentage of Dutch egaming player spend, according to eGaming Review‘s data partner H2 Gambling Capital.
H2 Gambling Capital said the 20% tax rate will help push gross profit to 204m by 2015, covering 76% of total player spend in the Dutch market. This is expected to rise to 223m “ 77% of player spend “ by 2018, though H2 argues that a tax rate of 10% would have helped the government ensure up to 95% of deposits were made through regulated operators by that year.
However, H2 adds that while the opening of the Dutch market will be relatively significant, it should be viewed as a “second tier” jurisdiction, due to the fact the population has a low propensity to gamble.
Federal US bill: Dead in the water?
When Republican Peter King introduced a new bill to regulate online gambling to the US House of Representatives last week there was little fanfare and even less celebration from the egaming sector. The bill seemed a huge win for the industry, with all forms of online gambling legalised, with the exception of sports betting, international player pools and a balanced regulatory framework with no obvious carve outs and no bad actor clause. But it’s precisely these reasons that mean the bill is almost certainly doomed to fail.
If the Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2013 were to come into law it would create a huge open online gambling market in the US, with states and tribes automatically opted-in unless they chose otherwise. It looks to take advantage of the US Department of Justice’s ruling on the Wire Act to create a broad egaming sector in a market where previously regulators have sought to do precisely the opposite.
Seven days in regulation:
Nevada amendments greenlight online poker compacts
Nevada has moved one step closer to entering into compacts with other US states with the approval of amendments to Assembly Bill 360.
Governor Brian Sandoval (pictured) is now permitted – on behalf of the state of Nevada – to “Enter into agreements [with other] governments” of licensed jurisdictions to allow for shared egaming services.
The amendments replace references to ‘states’ with references to ‘jurisdiction’, suggesting the potential for Nevada to enter into compacts with egaming jurisdictions outside the United States. All agreements are required to include “provisions for any potential arrangement for the sharing of revenues by this State and a government.”
BetVictor blacklisted in Belgium
The Belgian Gaming Commission (BGC) has added five new sites to its blacklist of unlicensed operators, including Gibraltar-based BetVictor.
The operator’s chief executive Michael Carlton has been a vocal opponent of Belgium’s egaming regulations, and was one of several egaming executives to sign an open letter to the European Commission last year calling on the body to ensure the country complies with EU law.
Isle of Man partners with Estonian regulator
The Isle of Man Gambling Supervision Commission (GSC) has entered into an information sharing agreement with the Estonian Tax and Customs Board.
The agreement comes less than a year after a similar deal between the GSC and its Maltese counterpart, the Lotteries and Gaming Authority (LGA). The GSC explained in a statement it hopes the agreement will help “improve regulatory standards both in the online and land based sectors” and strengthen consumer protection legislation.
Geo-location firm Aristotle awarded Nevada licence
Geo-location and player identification technology supplier Aristotle International has been awarded a licence to provide its services to online gambling companies in Nevada.
Under Nevada’s online poker laws, all players must be at least 21 years old and be physically located within the state’s border to place a bet. Several verification technology suppliers have already been licensed in the state, including Player Verify, Geocomply and CAMS.