Regulation round-up 12 May 2015
The biggest regulatory news from the egaming industry in the last seven days (6 May to 12 May 2015)
Romania introduces 20% back tax licensing rule
Operators looking to obtain a new Romanian licence must first return one fifth of revenues obtained from the country since 2009
Operators eyeing-up entry to Romania’s soon-to-be regulated market have been dealt a major blow after the country’s government voted in favour of a ‘back tax’ amendment, a measure which demands operators pay millions of Euros in retrospective taxes.
As part of the legislative process for its Gambling Act, the country’s Chamber of Deputies approved a number of changes in passing the framework, including the requirement that operators return 20% of revenues derived from the country since online gambling was banned in 2009.
News of the back tax requirement could have a negative impact on the number of operators applying to enter the market with a number of senior executives having told eGaming Review they would now reconsider the commercial value of obtaining a licence.
Romania’s Monitoring Committee of the National Office of Gambling (NOG) has been given the responsibility of calculating the sum of tax owed by each operator, with firms having to potentially open themselves up to a financial audit process.
Britain-facing operators to foot multi-million pound self-exclusion bill
Operators licensed by the GB Gambling Commission (GC) will be required to fund a multi-million pound nation-wide self-exclusion scheme according to a draft framework published by the regulator last week.
The GC said it estimated the cost of creating and setting up the scheme would “be in the region” of £2m with annual running costs of £1m, and that it expected the industry to foot the bill.
“The costs will need to be funded by the industry in full, being both the cost of the scheme itself and plus any additional running costs to administer it,” the Gambling Commission said.
Seven days in regulation:
Jackpotjoy TV ad “misleading”, says ASA
Gamesys subsidiary Profitable Play has been reprimanded by the Advertising Standards Authority (ASA) over a “misleading” TV ad it ran for its Jackpotjoy brand.
The ad featured balls, which had “£10,000” written on them, slung into the air and landing where people were using mobile devices, before exploding and covering the people in gold glitter.
Actress Barbara Windsor then stated: “up to 10,000 jackpots every hour” while on-screen text stated: “up to £10,000 every hour” with futher on-screen text stating: “Max individual Jackpot Hero prize £1,000. Min 13 games/day”.
Isle of Man appoints new head of egaming
The Isle of Man’s (IOM) Department of Economic Development (DED) has named online gaming veteran Mark Robson as its new head of egaming.
Robson has been working in the industry for more than a decade, and has a CV that includes senior executive roles at SHFL Entertainment and Microgaming.
“With over a decade of experience working for some of the biggest and most recognisable companies in the industry, Mark will bring invaluable insight to the team,” Peter Green, CEO of egaming at the DED, said.
French Q1 sports betting revenues soar 17%
A double-digit rise in revenues saw sports betting outpace poker revenues in the regulated French online gambling market during Q1 2015, with poker suffering a 7% decline in the three months ended March 2015.
According to the latest figures released by l’Autorité de regulation des jeux en ligne (ARJEL), GGR from regulated French online sportsbook operators soared 17% to 63m outpacing the overall market which rose a more modest 3% to 190m during the period.
The regulator’s Q1 2015 report showed that sportsbooks accepted bets totalling 351m in the three months ended 31 March, an increase of 38% year-on-year compared to 2014, with the vertical surpassing poker on a GGR basis.
The Parx Casino in Pennsylvania is lobbying for egaming legislation in the state to include a carve-out requiring players to sign up for internet gambling accounts at land-based casinos.
Lobbyists working on behalf of the operator are pushing for language to require online players to visit the bricks-and-mortar casino that operates an online site and apply for a loyalty card before being able to play on the internet.
Parx’ newly appointed SVP of gaming Don Ryan told eGR that regulated online gaming should be thought of as a way for casinos to “strengthen the relationship” with existing and new customers rather than “a competitive separate industry.”
Lawmakers in Minnesota have voted 56-8 in favour of a measure that has the potential to force the state lottery to pull down some of the games it offers to players online.
The measure, HF 51, states the director of the Minnesota State Lottery will “suspend” the sale of games over the internet including “all contracts” related to its online operation.
It would not stop the lottery from offering draw-based games online, but would block the popular instant win scratch cards it also currently offers.
The prospect of online horserace wagering in Indiana was dealt a fatal blow on Friday (8 May) after state Governor Mike Pence vetoed a bill seeking to legalise the activity.
The bill, HB 1270, was authored by Representative Robert Cherry and sought to allow racetrack operators to accept advanced deposit wagers over the internet.
While HB 1270 cleared the House with a 71-21 vote in favour of its passage, Pence killed the measure because it was “contrary” to his “long-time position against online gambling.”