Regulation round-up 1 March 2016
The biggest regulatory news from the egaming industry in the last seven days (24 February to 1 March 2016)
Romania passes new gambling regulations
Government adopts secondary legislation which will bring an end to current temporary licence structure
Romania’s government has passed secondary legislation for remote gambling in the country, clarifying how the country’s Gambling Act should be applied to those providing gambling-related services.
The country adopted a range of operational and technical measures, primarily around consumer protection, public security and compliance of tax laws, which operators and suppliers will need to comply with in order to gain and maintain a licence from the National Office for Gambling (ONJN).
Since the second half of last year, and following the passing of the Act in February 2015, gambling companies have been able to operate in Romania using a “temporary right”. According to the ONJN website, a total of 19 firms have been given temporary right status.
But following the adoption of new legislation, full licences will be made available with temporary right holders such as Betfair, 888, PokerStars and Unibet all expected to become permanent licensees.
Former bwin bosses seek to dismiss bribery charges
Former bwin bosses Manfred Bodner and Norbert Teufelberger have said charges of bribery and alleged breach of trust brought against them by an Austrian court are “completely unfounded” and have moved to appeal the accusations.
The charges relate to bwin’s 2007 application for a sports betting licence in Turkey, with the court alleging the Austrian operator effectively paid a ?2.25m bribe to the Turkish government.
But bwin, which later merged with Party Gaming to form bwin.party in March 2011, said it had been the victim of a “highly connected and international criminal network”.
Seven days in regulation:
Gambling Commission identifies “serious failings” at Paddy Power
Great Britain’s Gambling Commission (GC) has identified “serious failings” on the part of Paddy Power in relation to keeping crime out of gambling, with the bookmaker stumping up more than ?300,000 as a result.
In a report published yesterday (Monday), the Commission identified one Paddy Power online customer who was later convicted of a serious criminal offence relating to fraud.
In September last year, the online customer pleaded guilty to fraud offences relating to the theft of more than ?250,000 from six customers at two banks where he worked.
Danish online casino revenues increase 25% in 2015
Denmark’s remote gambling and gaming market continued to grow in 2015 with online casino revenues increasing 25% across the 12 months while sports betting also saw significant growth.
Casino revenues increased to ?140.4m in the 12 months to 31 December and Q4 figures grew at an identical rate, marking the fourth quarter in a row where revenues grew by more than 20% year-on-year.
Overall Danish betting revenues grew 14% to ?215m in 2015 due to “significant growth in online revenues”, according to one market expert, although official figures for online/offline split were not available.
Amaya appeals against $870m Kentucky fine
Amaya has taken the first step in its bid to overturn the “absurd” US$870m fine imposed by a Kentucky court, filing a notice of appeal and posting a $100m bond to stop the order being enforced while the process rumbles on.
The Commonwealth of Kentucky filed a case against PokerStars back in 2010 demanding the firm returned losses incurred by players in the state between 2006 and 2011, when the operator continued taking bets despite the enactment of UIGEA.
In the ruling, the judge imposed a $290m award in favour of the state but then trebled that amount to $870m, in stark contrast to the same court’s earlier ruling that determined damages should be based on the net loss of players.
DraftKings files appeal in New York Supreme Court
Daily fantasy sports (DFS) operator DraftKings has launched its appeal against New York Attorney General Eric Schneiderman, claiming the activity is a game of skill and therefore legal under state law.
In a filing to the New York Supreme Court, DraftKings compared its product to season long fantasy contests, games Schneiderman has previously said are “legally enjoyed” by players in the state.
In the 67-page document, DraftKings uses several examples to prove its contests are games of skill, even comparing daily fantasy to horseracing.