Regulation round-up 30 October 2012
The biggest regulatory news from the egaming industry in the last seven days (24 October to 30 October 2012).
EC Commissioner: “National rules must comply with EU law”
Laws of nine countries including Greece and Germany to be referred to the CJEU, says European Gaming and Betting Association.
EC Commissioner Michel Barnier has pledged that national regulations introduced by European Union member states must comply with EU law, stating that such compliance is “prerequisite of a successful EU policy on online gambling”.
Lobby group the European Gambling and betting association (EGBA) immediately reacted by saying that it “Fully endorsed and applauded” the EC’s conclusion and decision to relaunch infringement proceedings “ and where necessary referrals to the European Court of Justice (CJEU) “ against nine Member States and to “investigate the gambling laws of 16 Member States subject to recent complaints.”
Those in the former category include Greece, whose regulations have been met with significant opposition on numerous occasions. Last month Hawkswood said: “We welcome the opinion of [CJEU Advocate General Jan Mazak] as it demonstrates once again that this regime was blatantly in breach of EU law.”
Mazak had said of the Greek situation: “In my view … the activities of OPAP are neither subject to strict control by the public authorities nor effectively limited by the legislative framework applicable to it.”
RGA applauds European Commission’s egaming framework
Gaming lobby group the Remote Gambling Association (RGA) has described the European Commission’s (EC) egaming framework proposals as a “worthy attempt” to address key issues facing the industry.
Published today, the EC’s communication entitled ‘Towards a comprehensive European Framework for online gambling’ outlines a number of regulatory initiatives and measures designed to tackle non-compliant EU states as well as areas such as money laundering and match fixing.
The RGA welcomed the proposals for EU regulators to work closer together, and said it “particularly commends” the Commission for its “renewed commitment to ensure that all EU national regulatory frameworks are fully compliant with EU law”.
COPA tribes vote to dissolve consortium
Senior tribal members of the California Online Poker Association (COPA) have voted for the consortium to be dissolved following the decision of two of its largest members to leave with immediate effect.
The news that San Manuel Band of Serrano Mission Indians, one of the five biggest tribes in California and the closest tribal casino to Los Angeles, was to leave COPA was swiftly followed by the revelation that Morongo Band of Mission Indians was to follow suit.
A ballot held by COPA’s board then saw its influential tribal members vote in favour to immediately dissolve the three year-old group. COPA’s website has since been taken down, although its proprietary online poker site Calshark.com remains active.
Exclusive: San Manuel to leave COPA
The San Manuel Band of Serrano Mission Indians will announce it is to leave the California Online Poker Association (COPA) with immediate effect eGaming Review North America has learned.
According to sources, San Manuel’s management has been investigating alternative plans to launch an online poker business outside of COPA for many months, having invested significant sums of money into the organisation without any sign of a return.
It is understood that San Manuel does not yet have concrete plans for its own online poker venture or plans to partner with a third party technology supplier.
Seven days in regulation:
Alderney to investigate Pinnacle Sports Europe
The Alderney Gambling Control Commission (AGCC) is set to conduct a “special investigation” into Pinnacle Sports Europe after owners of associated company Pinnacle Sports were indicted in the New York borough of Queens this week.
George Molsbarger, Brandt England and Stanley Tomchin – all identified in the indictment as “owners” of the Curacao-licensed operator – were among 25 individuals indicted on charges related to illegal online gambling activities in the United States.
The pinnaclesports.com domain was itself referenced in the indictment, which also mentions three other online gambling sites. Those individuals indicted are accused of various offences including “charges of operating an illegal sports betting enterprise in Queens County and elsewhere”.
Betsson hopeful of China licence within 18 months
Betsson is positioning itself to become one of the first recipients of a Chinese egaming licence, chief executive Magnus Silfverberg revealed in an analyst call this morning.
The operator entered the market in February 2011 through a joint venture with an undisclosed local partner, and while it derives minimal revenues from the jurisdiction it is hoping to ensure it is first in line if and when the licensing process opens in the next 12-18 months, as indicated by Chinese authorities.
Silfverberg said: “Currently there are almost no revenues from China and we do not expect significant revenues over the next year, but in the longer term it is a very interesting opportunity for us.
Svenska Spel: Action needed against unlicensed operators
Svenska Spel chief executive Lennart Käll believes the Swedish monopoly operator faces a challenge to claw back market share from unlicensed operators against whom he argues action should be taken.
He was speaking after the company’s third-quarter financial results, which saw revenues from its Vegas and Casino Cosmopol brands fall year-on-year by 2.6% and 2% to SEK1.53bn (£141.4m) and SEK871m (£80.6m) respectively.
“As long as the unregulated and illegal operators can market, sell and operate in the market and the regulator does not have adequate remedies, this trend will continue,” Käll explained.
MGM set for Nevada online poker licence hearing
MGM Resorts Online is hopeful of becoming the latest operator to receive an online poker licence in Nevada, after being added to the agenda for the State Gaming Control Board’s (GCB) next meeting on 1 November.
Also on the agenda is Z4Poker LLC, which has applied for manufacturer and service provider accreditation. The company names Eric and David Colvin as shareholders, but has applied to the GCB “to grant options to Paul Christopher Zain to purchase interests [in the company].”
A.G. Burnett appointed chair of Nevada GCB
Nevada Governor Brian Sandoval has appointed former gaming attorney A.G. Burnett as the new chairman of the state’s Gaming Control Board (GCB).
Burnett, who joined the board in January 2011, replaces former chairman Mark Lipparelli in the role which he vacated last month.
He previously worked as senior deputy attorney general in the gaming division and earlier in his career acted as an associate in a Reno law firm engaging in civil litigation.
New Nevada GCB member appointed
The replacement for Mark Lipparelli on the three-man Nevada Gaming Control Board (GCB) has been named by Governor Brian Sandoval.
Terry Johnson, director of the state Department of Business and Industry, a role which involves overseeing 635 employees, will join the GCB on 12 November. Unlike former GCB chairman Lipparelli, who prior to joining the GCB had worked at Bally Technologies and Shuffle Master, Johnson’s career has only been in the public sector.
AAMS and ARJEL formalise data exchanges
The French and Italian egaming regulatory authorities have held a meeting in Rome in which they formalised the mutual exchange of market data.
ARJEL and AAMS met to “further intensify” the cooperation brought about by last June’s agreement, with particular attention paid to “The prevention of problem gambling, the prohibition of access by minors to the game, fraud related to the means of payment and…money laundering.”
Singapore signs MoU with Alderney regulator
Singapore’s Casino Regulatory Authority (CRA) has signed a memorandum of understanding (MoU) with the Alderney Gambling Control Commission (AGCC), its first with a European regulator.
The MoU is designed to strengthen cooperation between the CRA and the AGCC in areas such as sharing information and knowledge in order to combat issues such as money-laundering, organised crime, cheating and problem gaming.