Regulation round-up 14 July 2015
The biggest regulatory news from the egaming industry in the last seven days (8 July to 14 July 2015)
Ladbrokes pulls plug on Denmark operation
Operator withdraws from licensed market citing unsatisfactory levels of profit
Ladbrokes has withdrawn from the regulated Danish market with immediate effect citing “unsatisfactory” levels of profit.
The operator, which recently placed its international management team at risk of redundancy, said it would now re-focus its resources on other territories.
Ladbrokes said the decision was due to the market having failed to live up to early expectations and subsequently delivered unsatisfactory levels of profit since its regulated launch in 2012.
“Our renewed focus is very clearly on investing in those territories which show evidence of or the potential for significant growth,” Andrew Bagguley, Ladbrokes digital MD, said.
Italian egaming tax reform facing delay
Italy’s plans to ditch its turnover tax and move to a gross gaming revenue model have been hit by a delay but should get the go-ahead before the end of the year, according to a leading gaming lawyer.
Earlier this month Prime Minister Matteo Renzi declared the reform debate was “still not mature” as the initial deadline for the approval of the primary law passed.
However it is expected the comments should only delay the changes until December when it is anticipated the government will pass legislation in time for its next budget.
Seven days in regulation:
DOGA calls for reforms after Ladbrokes Danish exit
Ladbrokes’ exit from the Danish market highlights the need for the regulator to act to level the playing field including splitting up Danske Spil and fighting back against the black market, according to the head of the Danish Online Gambling Association (DOGA).
Speaking to eGR, Morten Rønde said that state operator Danske Spil’s dominant position is making it tough for operators to prosper in what is a “very fierce, competitive situation”.
“[Ladbrokes’ exit] shows that it is not as easy to make money on the Danish market as the authorities say,” Rønde said.
Rank Group loses £30m VAT court battle
The Supreme Court of the United Kingdom has dismissed an appeal lodged by the Rank Group over claims it overpaid more than £30m in VAT on its land-based slot machines between 2002 and 2005.
The appeal heard on 21 April 2015 raised the question of whether takings from slot machines at the company’s Mecca Bingo clubs and Grosvenor Casinos were subject to VAT during the three-year time period.
However, the UK’s high court last week ruled in favour of an earlier Court of Appeal decision from October 2013 which saw Rank repay £25.2m of £30.7m in compensation received from HMRC in May 2010.
The hearing due to take place on California internet poker bill AB 167 introduced by Assemblyman Reggie Jones-Sawyer has been rescheduled for August.
The bill was scheduled to be discussed at a hearing in the Assembly Governmental Oversight Committee earlier this month before it was pulled from the agenda without explanation.
But a spokesman for the Assemblyman confirmed to that the bill will be heard at a re-scheduled hearing in August, with the specific date to be announced nearer the time.