Regulation round-up 7 June 2016
The biggest regulatory news from the egaming industry in the last seven days (1 June to 7 June 2016)
OPAP blames online struggles on steep taxes and regulations
Greek firm claims to be operating at “significant handicap” compared to online competitors
Greek monopoly OPAP has blamed unfair market conditions and high levels of taxation for a poor online performance in the first quarter of 2016.
Adjusted net profit for the firm in Q1 was down 26% to ?42.8m, with gross gaming revenue (GGR) down 4.4% to ?341m.
The firm did not break out specific online numbers but OPAP IR director, Nikos Polymenakos, told EGR the channel was “not performing as we would expect” and was something “management would be addressing”.
Polymenakos also said OPAP was operating under a “significant handicap” when compared to the 24 online operators with interim licences.
NetEnt secures Romanian licences as operator deadlines near
NetEnt has been granted two supplier licences by Romanian authorities as the clock ticks down on operators wishing to obtain an operating licence before the expiration of their interim permits.
Romania’s National Gambling Office awarded NetEnt the class two licences to cover the supplier for the production and distribution of specialised gaming software and management and hosting facilities.
The licence awards comes as a number of operators near the end of their one-year interim licence period.
Seven days in regulation:
Poll results: Portuguese sports betting market commercially unviable
Portugal is unlikely to be a commercially viable market for sports betting operators under current tax measures, according to nearly two-thirds of respondents to last week’s poll.
Betclic Everest Group recently went live in the Portuguese online gambling market after becoming the first operator to secure one of the country’s new sports betting licences.
Launched under its Betclic brand, the Paris-headquartered firm will be subject to a basic tax rate of 8% on turnover up to ?30m, while turnover over that figure will be taxed based on a formula (Rate=[8% x (annual gross revenue/?30m)] /100) and capped at 16%.
Sportech tax case faces yet another appeal
Sportech’s bid for a ?97m tax refund was delayed again this week after the firm announced Her Majesty’s Revenue & Customs (HMRC) has asked for the Supreme Court to review the case.
According to the London-listed firm, it will file its Notice of Objection to such application by next Monday, and has been advised it should expect to hear by the autumn whether the Supreme Court will hear the case.
The Court of Appeals has already refused the HMRC’s original request for an appeal, meaning the Supreme Court of the United Kingdom marks the tax authority’s last chance to have the ruling overturned.
New York advances DFS and poker bills
New York congressional committees have passed two separate bills aiming to regulate online poker and daily fantasy sorts (DFS) in the state.
Senator John Bonacic’s online poker bill ??? S5302 ??? passed the Senate Finance Committee on Thursday and will now head to the Senate floor for consideration.
If it passes the Senate, thought to be less pro-gaming than the Finance Committee, it will then go before the state Assembly. However, the New York legislature is set to adjourn on 16 June, a total of nine legislative days, leaving industry experts pessimistic the bill will be passed in 2016.
The Senate Finance Committee is also scheduled to vote this week on Bonacic’s bill to regulate DFS, after it passed the Senate Racing, Gaming and Wagering Committee last Wednesday.