Regulation round-up 17 February 2015
The biggest regulatory news from the egaming industry in the last seven days (11 February to 17 February 2015)
GB self-exclusion plans “poorly thought through”
Operators pick holes in universal self-exclusion plans as National Lottery operator Camelot says it is “following the debate”
Plans to implement a universal self-exclusion scheme for Great Britain-facing remote gambling operators have come under fire from leading operators with one executive saying they lack clarity and have been “poorly thought through”.
Great Britain’s Gambling Commission published plans to update its licence conditions and codes of practice (LCCP) yesterday, introducing a raft of new social responsibility measures after concluding the industry could do “much more” to make gambling safe.
However the implementation of a universal self-exclusion scheme by 2017 has proved to be highly contentious with one egaming executive telling eGaming Review that the idea was “well-intentioned but poorly thought through”.
“The ramifications are that the very people they are trying to protect will end up playing with unlicensed operators [and] the fate of these players is then out of the control of anyone responsible,” the executive said.
Comment: In defence of self-exclusion
Last week eGR reported that the Gambling Commission’s plans for a national self-exclusion scheme for online gamblers had come under fire from people in the industry. In the light of that I thought it might be helpful to provide background on the issues that have been raised and to explain something about the role that industry representatives have been playing in the development of the proposals.
At the outset it is important to recognise that this initiative began not with the Gambling Commission, but rather in Parliament during the passage of the Gambling (Licensing & Advertising) Act 2014. Irrespective of whether it was universally welcomed or not, the Government gave a commitment that a national system would be introduced. In those circumstances the RGA advocated that such a system could only be run properly by the regulator.
Seven days in regulation:
Italy sportsbook stakes up 80% in January
Italy’s online sportsbook market has continued its rapid growth with betting stakes for January up by almost 100m year-on-year with Eurobet showing strong growth to claim second place in the market.
According to figures seen by eGR, sports betting stakes were 216.3m across the month, a rise of 81% when compared to the 119.7m recorded in January 2014.
The substantial rise comes on the back of a 65% growth rate in December while stakes across the 12 months of 2014 were up 23% year-on-year to 1.6bn.
South Australia mulls PoC tax switch
The South Australian government is contemplating a move to taxing online gambling on a point of consumption (PoC) basis as part of a wider review of the state’s taxation system.
A State Tax Review Discussion Paper released by the Government of South Australia said a switch from taxing on a place of supply to a place of consumption basis was one reform option currently being considered by the authorities.
The paper said the switch had the potential to provide a neutral tax system between online and land-based operators, enable the Government to better prevent problem gambling and help improve efficiency.
Guts.com withdraws from Germany after player prosecution
Online casino Guts.com is to close its doors to customers in Germany this week following the recent decision from a Munich court to fine a player for gambling on an unregulated site.
The casino emailed affiliates earlier last week to inform them it would be pulling its services from the country and that all accounts registered to players located within Germany’s boarders would be locked as of 16 February.
The operator explained the decision had been made in light of a recent verdict in which a player was found guilty of breaching section 285 of Germany’s Criminal Code which prohibits players from using unlicensed gambling sites.
Ladbrokes and Unibet handed Belgium live dealer extension
The Belgian Gaming Commission has given a number of operators, including Ladbrokes and Unibet, an extended period in which to ensure their live dealers are provided by Belgium-based suppliers.
The regulator recently revealed plans to enforce a ban on live dealers supplied by from outside of Belgium’s borders, with operators previously given until the start of February to provide the regulator with details of their dealer set-up.
However, following a meeting held earlier this month, a total of seven operators have been given until the end of H1 in order to alter their live dealer set-up and ensure they meet the requirements as laid down by the regulator.
Opinion: Changes to Romania’s online gambling framework
Just before the turn of the year, the Romanian government published an emergency ordinance which will amend, among other things, its gambling regulatory regime.
Effective from 13 February, the legislative act will enable the government to develop a legal framework that is more appealing for gambling operators and players, to help eliminate the black market of gambling, and to eliminate tax avoidance in this field.
Although the amendments target both land-based gambling and online gambling, the substantive and most awaited changes of the gambling legislative framework relate to the online industry.