UK gambling operators at risk from ‘unfair’ tax rate: report

Global Betting & Gaming Consultants has highlighted that UK online gambling operators risk being overtaken by European rivals because the Government fails to understand the importance of competitive gambling tax.

According to the consultancy, a Europe-wide gambling policy will be implemented and this will mean that players are taxed under the laws of the country they live in rather than the country the operator is based in.

Warwick Bartlett, partner, Global Betting and Gaming Consultancy, according to marketingweek.co.uk, said the UK Government’s tax policy for gambling companies has gone “horribly wrong”.

According to the report, while an agreed Europe-wide measure would create a substantial increase in market growth, it is likely to be matched by increasing overheads as governments take steps to gain control over the industry. The report claims that UK companies will continue to lose market share, and points to an existing deal between the Government and operators that allows the repatriation of UK sports betting websites from offshore so as to achieve gross profits tax as being “unsustainable”. It says foreign websites are able to reinvest the tax saving in their offering and “scoop” the market.

Legitimacy of the OPAP monopoly challenged

The legitimacy of the OPAP monopoly has been challenged. The two Reporting Judges of the Greek Council of State recommended that the Greek betting monopoly, OPAP S.A. should be referred to the European Court of Justice.

In cases presented by two British sports betting operators, Stanleybet International and William Hill, the Reporting Judges questioned the legitimacy of the OPAP monopoly. For the first time in Greece, the Reporting Judges of its Highest Administrative Court, the Greek Council of State, have declared the monopoly in Greek sports-betting granted to a private entity, OPAP, as noncompliant with EU law.

The Reporting Judges stated that the legitimate right under EU law for licence applications to be made by Stanleybet International and William Hill had not been upheld by the Greek authorities who had refused to consider the operators’ requests for licences. The Reporting Judges went on to state that the monopolistic position granted to OPAP S.A. is not proportionate, justified, nor consistent with EU law.

Clive Hawkswood, chief executive of the RGA, said the references to the ECJ from various national courts are becoming endemic across the EU and they all raise one common issue: Are restrictive national gambling legislations of EU Member States consistent with the EU Treaty?

“We believe that the vast majority of them are not and it is disappointing that the European Commission, as the designated guardian of the EU Treaty, has remained so silent on these fundamental points for the last 12 months,” said Hawkswood.

Proposed changes to Finnish lotteries act raise EC’s concerns

The European Gaming and Betting Association (EGBA) has welcomed the the European Commission’s decision to issue formal Comments against the proposed changes to the Finnish lotteries act.

Comments issued by the European Commission in the context of the notification procedure mean that it considers that the text submitted raises issues or requires further details for clarified interpretation.

According to the Association, these changes, if implemented, would increase the extent of the breach of EU law that is already the subject of an EC infringement procedure.

The EGBA highlighted that the new draft provisions introduce even further restrictions on indirect marketing of gambling services for operators without a Finnish licence, as well as fines and prison sentences of up to two years for both media and online gaming companies operating or marketing such activities. These additional restrictions are, however, not aimed at enhancing consumer protection in a consistent and systematic manner as they will not apply to the Finnish government’s own gambling activities which will still be allowed to conduct extensive and aggressive marketing campaigns.

Sigrid Ligné, EGBA Secretary General, said, “This shows all too clearly that the Finnish authorities have for the past two years – during which the Commission has been delaying Finland’s referral to the ECJ – enhanced their protectionist legislation rather than removed it.”

“The Commission’s patience has clearly not paid off. We now call on the Guardian of the Treaty to defend our rights and to bring Finland to the ECJ.”

Holland plans action against illegal Internet gambling sites

Holland’s Minister for Justice Ernst Hirsch Ballin has reportedly told MPs that a ‘black list’ of illegal gambling websites will be circulated to Dutch banks by March, bringing into effect a ban on the processing of Internet gambling payments in the country ahead of a possible wider shakeup of Holland’s gambling regime later this year.

Ballin added that online gambling sites that continue to target Dutch residents will now face unspecified legal action. According to the Dutch justice ministry, it’s currently targeting both foreign-based gambling companies, as well as domestic, but refused to give divulge more details or any specifics.

A Justice Ministry spokesman declined to tell news agency ANP how many sites are being targeted.

The Dutch are spending €450m a year on illegal Internet gambling sites, according to a new survey by research agency Motivaction, quoted in the Telegraaf. This represents a doubling of the annual spend since 2005.

Motivaction says Dutch gamblers, most of them young people, spend an average of €82 a month on the Internet and that there are 485,000 regular players.

The EU Gaming Law Group is born!

On the 27th of January, during the International Casino Exhibition (ICE), the Founders of the portal www.gaminglaw.eu Quirino Mancini, Thibault Verbiest, Dr. Wulf Hambach, Santiago Asensi and Justin Franssen presented their new European Economic Interest Groupment – the EU Gaming Law Group – during a business breakfast at the Brown’s Hotel in London.

The mission of the new groupment was summarized in a powerpoint presentation (see attachment to this article) and can be defined as follows:

The legal battles fought in recent years before the European Court of Justice by a few brave and determined operators against national monopolies to claim the right to freely offer their gaming services across the EU regrettably did not result in the abolition of said monopolies, nor did they otherwise trigger an EU-wide harmonisation of gaming legislation.

The founders and partners of gaminglaw.eu strongly believe that the next challenge for the gaming industry in Europe is to tackle and drive the legal and regulatory changes to be introduced by the Commission – and eventually the national governments – to ensure, in a realistic and pragmatic way, that any international gaming operator may actually conduct business across Europe without too many administrative barriers and hurdles, though still under fair competition-friendly and reasonable local licensing regimes.

This goal can, in our view, be achieved only through coordinated, consistent and continuous pressure on all authorities concerned (in Brussels and elsewhere), made up of a strategic blend of efforts in terms of information, dissemination, education, consultation, political lobbying and, if required, fresh legal action.

With all this in mind, and to be able to cope with this major challenge, the founders and partners of gaminglaw.eu have now resolved to organise themselves in the form of a pan-European group of firms, fully-integrated and highly specialised in the provision of legal and non-legal services to the international gaming industry but also well equipped to interact with those central or regional authorities that may wish to bridge the communication and relations gap that too often in the past has tarnished their dealings with the operators.