Regulation round-up 22 March 2016
The biggest regulatory news from the egaming industry in the last seven days (16 March to 22 March 2016)
UK to tax gaming free plays
Operators to see tax bills rise as government abolishes tax-free status on casino and bingo free plays
UK-facing casino and bingo sites will see their tax bills rise after Chancellor George Osborne announced plans to abolish the tax-free status of gaming free plays.
Delivering his Budget, Osborne said the government would start to tax free plays having previously maintained their tax-free status when implementing the Point of Consumption levy in December 2014.
The move, which will come into effect on 1 August 2017, will place gaming tax in line with sports betting, which currently sees free bets taxed the standard 15% General Betting Duty (GBD) rate.
“Remote gaming operators currently benefit from a more generous tax treatment when they offer discounted or free gambling (‘free plays’) to customers in Remote Gaming Duty than would be the case for operators offering free bets on things like football and horseracing,” the Chancellor’s supporting document read.
Free play tax a threat to future growth, says RGA
The UK government’s plan to abolish the tax-free status of free plays for online casino and bingo operators could stunt the growth of the country’s online gaming industry, the Remote Gambling Association (RGA) has warned.
In his Budget speech last week, Chancellor George Osborne outlined plans to bring gaming in line with sportsbook free bets by amending the status of free plays so they are dutiable for the 15% Remote Gaming Duty.
However, the RGA told eGaming Review that, when coupled with the Point of Consumption levy, the new tax, which is due to come into force on 1 August 2017, could jeopardise the UK market’s future prospects.
Seven days in regulation:
DFS legislation makes progress in New Jersey
A bill that would allow New Jersey to regulate and tax daily fantasy sports (DFS) was unanimously approved by a Senate Committee last week.
The bill, SB 1927, was introduced by Senator Jim Whelan earlier this month and passed through the Government, Wagering, Tourism and Historic Preservation Committee with a 5-0 vote.
“As daily fantasy sports continues to gain popularity, many states are struggling with how to efficiently regulate it,” Whelan said in a statement.
New Jersey continues run of record egaming revenues
New Jersey posted its fourth consecutive month of record egaming revenues in February, up 41% year on year to $14.7m, according to the latest figures released by the state’s Division of Gaming Enforcement (DGE).
The latest figures show gross gaming revenue (GGR) was driven by a 52% surge in online casino revenue, which increased from $8.4m in February 2014 to $12.8m this year.
Poker revenues remained relatively flat during the month, down just 2.5% to $1.9m.
FanDuel and DraftKings to exit New York
FanDuel and DraftKings will exit the state of New York after reaching an agreement with Attorney General Eric Schneiderman.
The settlement will see both daily fantasy sports (DFS) operators withdraw from the market until September, pending legislation that would allow them to do otherwise.
September marks the month when the case on whether daily fantasy sports is legal in the state is set to be heard, although a firm date has yet to be set.