Regulation round-up 9 December 2014
The biggest regulatory news from the egaming industry in the last seven days (3 December to 9 December 2014)
GBGA granted judicial review over PoC tax
Challenge to 15% levy on profits raises “very significant points” according to High Court document
The Gibraltar Betting and Gaming Association (GBGA) has been granted a judicial review (JR) of the UK government’s introduction of a 15% levy on profits derived from customers who normally reside in the UK.
A High Court document seen by eGR states the GBGA’s claim raises “very significant” points and “equally important practical issues for the enforcement of revenue collection”.
It states that a Directions Hearing is required “as soon as practicable” to set out a timetable for the preparation of a “substantive hearing” in front of the deputy high court judge, who will then decide whether or not to proceed with the case.
The news comes despite the tax coming into effect on 1 December. Sources suggest the hearing will occur this side of Christmas or early January at the latest.
Dutch regulator fines Titanbet.com operator 200,000
The Dutch Gaming Authority (Kansspelautoriteit) has fined europacasino.com and titanbet.com operator Imperial E-Club 200,000 – the largest fine issued to a single company by the regulator – after finding them to have operated in the country without a licence.
The regulator confirmed it had issued the fine in February this year, with disclosure of the penalty postponed by Imperial E-Club’s attempts to gain an injunction from the Dutch courts to prevent publication of the news.
Imperial E-Club’s actions had been under investigation between June 2012 and October 2013 and the Kansspelautoriteit considered europacasino.com to be focused on the Dutch market with a Dutch language option on the website.
Seven days in regulationâ¦
Sports betting right “a breach of EU law”
The introduction of EU-wide sports betting rights would be a breach of European law and an inefficient way to fund grassroots sport, according to leading sports and media professor Ben Van Rompuy.
Van Rompuy, who also acts as senior consultant to the Asser International Sports Law Center in The Hague, was speaking last week to a delegation at the European Sports Forum in Milan.
The professor, who has published a number of studies on the relationship between sports, media rights and EU competition law, said the establishment of a betting right would be considered a restriction to trade.
New online poker bill introduced in California
The battle for regulated online poker in California is back on after a new bill was introduced to the legislature by Assembly member Mike Gatto, who said failure to get legislation across the line in 2015 would be a “lost opportunity”.
Under the bill, titled: Internet Poker Consumer Protection Act of 2015 – referred to as AB 9 – licenses would only be issued to entities currently eligible to offer land-based real-money gaming in the state, specifically the tribes and card rooms.
One-time licence fees would be set at US$5m with the upfront cost credited against future tax payments, which have been set at 5% of gross gaming revenue. Licensees will have to prove they can cover the fee “through its own net position or through credit directly to the applicant.”
Swedish regulator proposes self-regulated advertising measures
Swedish regulator Lotteriinspektionen has proposed online operators adopt self-regulation for advertising in the country in order to prevent children and the vulnerable from gambling.
Director general Håkan Hallstedt suggested gambling operators in the country form an “informal unholy alliance” and adopt several measures to prevent advertising targeting at-risk parties.
Hallstedt proposed that operators remove all advertising that could be seen to target children from their 2015 schedules, including branding material on athlete clothing, and remove all gaming-related marketing material from youth sport activities.
UK Government to launch racing right consultation
The UK Government has pledged to launch a consultation on the introduction of a new racing right in early 2015 as a replacement for the existing levy.
The announcement was made in Chancellor of the Exchequer George Osborne’s 2014 Autumn Statement last week.
“The government will consult on the introduction of a racing right in early 2015 and will announce a decision after consultation,” the statement said.
In reaction to the announcement, chairman of the British Horseracing Authority Steve Harman said it was welcome news for the horseracing industry and all those connected with the sport.