Regulation round-up 8 November 2016
The biggest regulatory news from the egaming industry in the last seven days (2 November to 8 November 2016)
Paddy Power Betfair denies breach of privacy allegations
Company says use of cookies and tracking tools helps it fulfil regulatory requirements
Paddy Power Betfair (PPB) has defended its KYC controls and trading practices following allegations it could be breaching privacy laws by using cookies and social media to “spy” on punters.
According to an article in The Times, a legal expert claimed the company could be in “breach of privacy laws” for not making it clear how customer information was gathered and used.
Last week’s article specifically referenced PPB’s use of a cookie tool known as Iovation, which can track whether a punter has logged into to several accounts from the same IP address, among other things.
The Times source said information gleaned by Iovation can then be used to restrict and close accounts.
Opinion: From Russia with hope
Russia has long been considered hostile territory when it comes to gambling â likely originating with its 60-year nationwide gambling ban from 1928-1988.
Although that ban was thereafter lifted in its entirety for nearly 20 years (from 1989 to 2006), the extended period of deregulation yielded an intense proliferation of slot machines, gambling websites, casinos and other gaming establishments that were reportedly linked to organised crime and other social ills.
The government responded in 2006 by banning all forms of online gambling, and eventually implementing a complete ban of casinos in 2009 in all but four remote regions – culminating in a government shutdown of casinos throughout the country overnight.
Seven days in regulation:
Breon Corcoran: We have nothing to fear from ad restrictions
The strength of Paddy Power Betfair’s (PPB) two UK brands means the firm is well-placed to overcome any new gambling advertising restrictions being considered by the government, according to its CEO Breon Corcoran.
In an analyst call on Friday, Corcoran said the company’s brand equity could in fact benefit in the long-term should the UK government’s gambling review lead to a clampdown on “wall-to-wall” TV advertising.
“We are on record as noting that there has been an enormous growth in the amount of advertising in the last number of years and I don’t think a business with strong brands has anything to fear from some restriction there,” Corcoran said.
“We will see how that plays out but we are cautiously optimistic that with our portfolio brands – and this is probably also an Australia issue – we are well-positioned to compete.”
New Jersey lawmakers launch latest plan to legalise sports betting
New Jersey lawmakers have introduced yet another bill to allow sports betting in the state, this time via a proposal to fully repeal the state’s prohibition on sports wagering.
It is a crime to offer sports betting in New Jersey, so New Jersey’s last effort was to repeal those criminal prohibitions solely to the extent they apply to casinos and racetracks.
That law was struck down in the courts as violating PASPA and is being currently challenged in the Supreme Court.
The new proposed legislation, A4303, would repeal all criminal prohibitions on sports betting throughout the state, which could help the bill stand up to a legal challenge.
Poll results: Sportsbooks worst hit by UK ad ban
Sportsbook operators would be most at risk from a potential pre-watershed ban on UK gambling adverts, according to respondents to last week’s EGR poll.
Sports betting companies and bingo operators have enjoyed the freedom of TV advertising prior to the 9pm watershed â although the former only around live televised sports events – since the introduction of the 2005 Gambling Act, with casino and poker firms restricted to post-watershed slots.
However, the ability to advertise during the day has been thrown into serious doubt after the government announced it is conducting a review into gambling advertising.