Regulation round-up 6 May 2014
The biggest regulatory news from the egaming industry in the last seven days (30 April to 6 May 2014)
UK-licensed operators required to segregate customer funds
The UK Gambling Commission has set out a number of new customer funds protection measures, including the need for online operators to hold customer monies in a separate account, after publishing updates to it licensing conditions and codes of practice (LCCP) document.
After a seven-month consultation process aimed at improving the protection of customer funds, the regulator is to insist that UK-facing operators place customer and company funds in different accounts as a minimum requirement.
The Commission had previously discussed a number of possible measures, including the requirement for operators to place customer funds in an independent trust account or for the Commission to hold a cash reserve for operators.
However, after taking views from the industry, including those from William Hill, Betfair and Rank, the Commission decided to take the segregated funds route, although operators can still provide additional protection should they wish.
Advertising watchdogs begin gambling review
The UK’s advertising authorities have begun an in-depth review into the country’s gambling sector as government concerns mount over both the volume of online gambling advertising and the number of complaints received by the Advertising Standards Authority (ASA).
The Committees of Advertising Practice (CAP) “ including the Broadcast Committee “ and the ASA are working together on the review, which aims to ensure consumers are properly protected, and CAP assured eGaming Review there were no specific changes planned at this stage.
Stakeholders including the UK Gambling Commission and the Responsible Gambling Trust will be invited to make recommendations for the study, with the results published by the autumn and any changes implemented by the end of 2014.
Spanish slots and exchange set for January 2015 launch
Spain looks set to regulate online slots and betting exchange products in January next year after setting out the timetable for operators at a meeting in Madrid last week.
The Spanish regulator Dirección General de Ordenación del Juego (DGOJ) told operators it had submitted its eagerly awaited regulation to the European Commission (EC) in March and confirmed it expected to receive a response by 19 June.
When in receipt of the returned regulation, the DGOJ will approve Ministerial Orders for online slots, exchange betting, the opening of a licensing window and the regulation of responsible gambling and advertising.
Playtech confirms Belgium exit
Playtech has confirmed discussions held with the Belgium Gaming Commission led to its decision to pull the plug on its unlicensed Belgium-facing licensees.
Last week, operators such as Gala Interactive and William Hill notified affiliates that it would no longer be taking business from customers within the Belgian borders for “regulatory reasons”.
And Playtech has told eGaming Review that the withdrawals were prompted by an “agreement” reached between the software supplier and the local regulator to no longer support unlicensed Belgium-facing activities.
Sweden’s licensed market shrinks again
The regulated Swedish gambling market has recorded another set of disappointing results as gross turnover declined 5.5% year-on-year in Q1 2014.
According to the latest figures from the Swedish Gambling Authority (Lotteriinspektionen), gross turnover in the market totalled SEK9.8bn (£89m), down from SEK9.2bn (£84m) in the same period last year. Gross sales after winnings also declined to SEK4bn.
“It is slow for most gambling operators in the regulated Swedish market right now with only very few exceptions,” Joakim Rönngren, communications director at the Gaming Board, said.