Regulation round-up 3 May 2016
The biggest regulatory news from the egaming industry in the last seven days (20 April to 26 April 2016)
Australia to close in-play loophole amid wider gambling crackdown
Government decision to enforce ban on online live betting criticised by Australian Wagering Council
The Australian government has pledged to maintain the country’s ban on online in-play wagering and introduce legislation to close loopholes which has enabled online operators such as William Hill and Ladbrokes to offer in-running betting.
Prime Minister Malcolm Turnbull’s administration last week released its long-awaited response to the federal Review of Illegal Offshore Wagering and announced its commitment to strengthen the Interactive Gambling Act 2001.
Under the Act, Australian operators are prohibited from accepting online bets during live sports events and can only accept in-play wagers placed in person or over the phone.
However, a number of operators, including William Hill and Ladbrokes, have sought to negate the ban by launching live betting services which enable customers to place bets online so long as their device’s microphone has been activated.
Gala Coral returns ?846k for AML failures
Gala Coral has admitted to “serious shortcomings” in its anti-money laundering (AML) controls which enabled a customer to use ?846,000 gained from criminal activity to fund his gambling.
Following an investigation by the Gambling Commission, the operator was found to have performed an “inadequate” search into the customer’s source of funds and had failed to meet its AML and social responsibility licensing requirements.
The customer, who has since admitted to stealing the sum and been sentenced to several years’ imprisonment, had been graded as a VIP by Gala Coral after staking large sums in Coral shops from 2012 and betting online for a 12-month period from January 2014.
Seven days in regulation:
Italian online market grows 21% in Q1
Italy’s online betting and gaming market continues to go from strength to strength after recording a 21% rise in gross gaming revenues (GGR) during the first three months of 2016.
Total GGR for the quarter ended 31 March was ?267m, up from ?210m during the comparative 2015 period, with the growth coming on the back of a 13% increase in 2015 GGR to ?821m.
Casino games continued to lead the way in Q1, with the vertical contributing ?106m of GGR at a year-on-year growth rate of 38%.
Unibet issues warning over Belgium VAT plans
Unibet boss Henrik Tj?rnstr?m has asked the Belgian government to “think twice” over proposals to impose a new 21% gambling VAT, warning the levy could lead to significantly lower market channelisation.
The federal government plans to implement the new sales tax, which would hit licensed operators such as Unibet, Betway and bwin, later this year as an addition to the 11% tax on gross gaming revenue already paid by Belgium-licensed operators.
And speaking to EGR last week, Tj?rnstr?m said the implementation of the VAT would be to “the detriment of everyone” and have a negative impact on both consumer protection and tax revenue.
California poker bill makes “landmark” progress
A bill to legalise online poker in the state of California has passed the committee stage by a unanimous 18-0 vote, reigniting hope of a much sought-after regulated market.
The bill – AB 2863 – seeks to authorise the operation of poker websites within California’s borders with regulation from the California Gambling Control Commission and the California Department of Justice.
The bill will now be sent to the full Assembly, where it must be passed by a by a two-thirds majority to reach the Senate, although the timeline for this process is still unclear.