L EG A L
WORLD REGULATION
World regulatory update Gaming Intelligence outlines the latest legal developments across the world
France, Portugal, Spain The French, Portuguese and Spanish regulators have all approved technical regulations to facilitate cross-border poker liquidity sharing. A number of operators including Betclic Everest Group, The Stars Group and Winamax have already secured approval to launch multi-country tables. Italy, which is also expected to join the agreement, is yet to set out the necessary regulations.
Austria Austrian Finance Minister Hartwig Löger has drafted a bill that would give the state power to block access to unlicensed iGaming sites and recoup unpaid taxes from their activities in the country. The Austrian Association for Betting and Gaming (ÖVWG) has criticised the plans. It claims that the move could endanger up to 1,000 jobs in the country, cut sports sponsorship and advertising revenue by €50m, and drive consumers to unregulated sites.
UK The UK authorities have continued a crackdown on compliance failings, with a number of high-profile licensees hit with hefty fines. William Hill faced the largest of the lot, with a £6.2m penalty for lax money laundering and consumer protection controls. Sky Betting & Gaming was fined £1m for deficiencies in its self-exclusion controls, and GVC Holdings’ ElectraWorks £350,000 for using misleading bonus terms and conditions. BGO Entertainment has been forced to change terms and conditions associated with its promotions to ensure its own compliance. The UK Gambling Commission (UKGC) and Competition and Markets Authority have pledged to continue this crackdown, warning that repeat offenders face losing their operating licences. The UKGC has also warned licensees to make major changes to their terms and conditions linked to bonus promotions to avoid enforcement action by the regulator. Operators will be required to be more up-front and clear in the conditions associated with bonuses to ensure they comply with UK consumer protection law (see page 29).
Russia The Russian Ministry of Finance has drafted legislation to simplify the player identification process for iGaming customers. It aims to remove a requirement for players to register in person after completing an online process. By doing so, the Ministry hopes to channel more customers to regulated gaming sites. 26
Sweden Sweden has notified the European Commission of its proposed regulations for responsible gambling, consumer data management and associated fees, as it moves towards opening its iGaming market. The country’s gambling regulator Lotteriinspektionen will begin accepting applications from prospective licensees from 1 August, with the market to open on 1 January 2019. Betting and gaming licences will cost SEK400,000 each, or SEK700,000 for both. The regulations are subject to a standstill period ending 2 July.
The Netherlands The Netherlands’ highest administrative court has ruled that the country’s gambling regulator Kansspelautoriteit (KSA) cannot penalise payment companies processing transactions for unlicensed gambling sites. The Council of State said that under the current gambling legislation, a payment processor could not be seen as facilitating illegal gambling. The KSA described the decision as a major setback in its efforts to tackle online gambling, which remains illegal until the new Gaming Act is passed.
Switzerland Switzerland is to hold a national referendum on its gambling legislation on 10 June. Lawmakers have proposed allowing casinos to offer roulette and poker online, with products taxed at 40 per cent of gross revenue
of up to CHF10m, rising by 0.5 per cent for every additional CHF1m of revenue. However a proposal to block access to unlicensed sites remains a contentious point between parties in the Swiss parliament.
Malta A bill to revamp Malta’s gambling regulations has been introduced in the country’s parliament. The new gaming act looks to replace the current multi-licence system with one offering two different types of licences – a Business-to-Consumer (B2C) licence and a Business-to-Business (B2B) licence – covering different types of activities across multiple distribution channels. In addition, B2B licensees will be exempted from gaming tax, which the government claims will increase Malta’s competitiveness as a hub for B2B activities. Compliance will be handled on an objectivebased approach, instead of the current prescriptive framework.