Regulation round-up 13 October 2015
The biggest regulatory news from the egaming industry in the last seven days (7 October to 13 October 2015)
Amaya told to sack four senior execs to secure New Jersey licence
State regulator says licence was granted after Amaya agreed to part company with individuals linked to PokerStars’ UIGEA violation
Amaya Gaming must sack four senior executives linked to PokerStars’ breach of America’s Unlawful Internet Gambling Enforcement Act (UIGEA), as part of a deal which recently saw the operator gain its long-awaited New Jersey licence.
New Jersey’s Division of Gaming Enforcement revealed Amaya had agreed to part ways with the unidentified individuals in a published 89-page report into the operator’s assets following its acquisition of PokerStars and Full Tilt parent company Rational Group.
According to the report, the individuals must leave the company on or before 30 January 2016, with the regulator having deemed them to have “failed to establish the requisite good character, honesty and integrity” required by the state’s online gambling legislation.
“The Division determined that four senior executives who remain with an Amaya subsidiary after the acquisition are not able to establish their good character, honesty and integrity as required by the Act because they were involved in the management or control of companies that violated UIGEA,” the report said.
Hesse state government calls for overhaul of German regulation
The government of the German state of Hesse has outlined a series of proposals for a revised framework as it looks to accelerate change ahead of a crucial European Court of Justice opinion later this month.
Among its guidelines is a call to implement loss-limits and self-restriction protocols in place of the Interstate Treaty’s plans for a flat 1,000 per month limit on player staking, a limit opposed by industry.
The proposals also recommend the removal of the controversial 20-licence limit for sports betting, with Hesse of the opinion that a quantitative ceiling on the award of licences would not lead to an improvement in the prevention of addiction.
Seven days in regulation:
GB regulator launches review into online poker
Britain’s Gambling Commission is to review the rules governing online poker as the regulator begins an investigation which will explore the use of third-party software and bots in the game.
The Commission will canvass opinion among operators and is seeking information on collusion and cheating in the vertical.
“We’ve been asking licensees who offer peer-to-peer poker for information and their views on current issues identified in relation to this product,” a Commission spokesperson said.
Romanian regulator targets players in black market crackdown
Romania’s National Gambling Office (ONJN) will target players who use unlicensed sites as the regulator begins a crackdown on the black market as its back tax amnesty comes to an end.
Operators who wish to continue accepting bets from the country were required to acquire a licence – and pay tax on operations dating back to December 2010 – by the end of last month.
And ONJN president Cristinela Odeta Nestor told eGaming Review the operator would now open legal proceedings against unlicensed operators while also taking action against players using the sites.
FanDuel and DraftKings hit by data leak lawsuit
A class action lawsuit had been filed against daily fantasy sports (DFS) operators FanDuel and DraftKings following the data leak scandal which continues to rock the industry.
The lawsuit, seen by eGaming Review, has been filed in the US District Court for the Southern District of New York and names Kentucky resident Adam Johnson as the plaintiff, and both DraftKings and FanDuel as defendants.
The main issue raised in the filing is that DraftKings and FanDuel employees having access to lineup data brings into question the integrity of the game and the operators themselves, and claims both are violating Kentucky, Massachusetts and New York law.
Swedish media pledge to self-regulate on gambling advertising
The Swedish Media Publishers Association (TU) has said it will take steps to self-regulate gambling advertising as it attempts to pre-empt the government’s re-regulation inquiry.
All advertising from unlicensed, offshore operators is prohibited in Sweden, although a legal loophole makes it tough for criminal actions to be brought against firms not based in the country.
And with Sweden’s re-regulation inquiry, which was launched last month, set to consider whether additional marketing restrictions on gaming should be introduced, media stakeholders hope that taking a responsible approach now will prevent a future clampdown.
Playtech to challenge opposition to Ava Trade deal
Playtech will formally challenge the Central Bank of Ireland’s (CBI) decision to oppose its $105m acquisition of CFD broker Ava Trade.
The decision comes after Playtech revealed it had received a letter from the CBI detailing its opposition to the deal and yesterday engaged the bank “in order to discuss certain issues raised”.
But in an update to the market last week, Playtech said the CBI had reverted to its Irish legal advisors and clarified its position.