Regulation round-up 15 March 2016
The biggest regulatory news from the egaming industry in the last seven days (9 March to 15 March 2016)
NetEnt wins ?7.5m Swedish tax battle
Administrative Court of Appeal sides with gaming supplier in long-running back tax dispute
NetEnt has won its long-running legal battle with Swedish Tax Agency after the country’s Administrative Court of Appeal ruled the games supplier would not have to pay the disputed SEK94.4m (?7.5m) in back taxes.
The contested amount dates back to 2012, when the Swedish Tax Agency sent NetEnt the multi-million pound bill following a recalculation of taxes for the years 2007-10.
NetEnt at the time described the claim as “unfounded” and took the matter to court, and having lost the first judgment the firm subsequently took the case to the Court of Appeal.
And last week NetEnt announced the court had ruled in is favour and was no longer liable for the sum, and in addition awarded NetEnt SEK1.8m (?150,000) in legal costs.
Sky Betting & Gaming obtains ABP status
Sky Betting & Gaming (SB&G) has become the fifth major online-only gambling operator to obtain Authorised Betting Partner (ABP) status from British Racing.
The Leeds-headquartered firm follows in the footsteps of bet365, 32Red, Betfair and BetVictor in agreeing to make a voluntary contribution to British Racing in exchange for access to marketing and commercial opportunities.
Although the exact terms of the agreement were not released, the three-year deal will start on 1 April 2016 and will see the operator pay 7.5% of its UK horseracing profits.
“We are pleased to have reached this voluntary agreement with racing,” Richard Flint, SB&G’s chief executive officer, said.
Seven days in regulation:
New Jersey moves to regulate and tax DFS
New Jersey Senator Jim Whelan has introduced legislation seeking to regulate and tax daily fantasy sports in the Garden State.
The bill, SB 1927, has been introduced to the Senate and referred to the Government, Wagering, Tourism and Historic Preservation Committee.
Under the bill, operators would be required to apply to the Department of Law and Public Safety for permit, and to have at least one server located in the state.
DFS providers will be forced to pay an annual registration and renewal fee, equal to a 9.25% tax on gross gaming revenue.
Virginia Governor signs DFS bill into law
Virginia has become the first US state to regulate daily fantasy sports (DFS) after Governor Terry McAuliffe signed legislation into law.
The bill creates the Fantasy Sports Act, with operators required to register with the Department of Agriculture and Consumer Services.
DFS firms will have to pay a $50,000 licence fee, and be subject to an annual audit of their business processes and practices.
Operators must also take steps to prevent employees and their immediate relatives playing on their sites, segregate player funds, and ensure data is secure.
Delaware posts second best month on record
Online gaming enjoyed its second best month on record in Delaware in February, with revenues up 60% YoY to $229,789, according to the latest figures released by the State Lottery.
The increase was driven by online lottery ticket sales, which rose from $23,117 in 2014 to $103,596 last month, a 348% increase and the third consecutive month of triple-digit growth.
Online casino revenues were also up during the month, increasing from $85,457 to $97,899 while poker fell 18% YoY to $28,294.
Delaware Park continued to lead the charge with net revenues of $120,132 with casino contributing $52,744 and lottery ticket sales $48,350.