This Week in International Regulation News

This week there have been a lot of worldwide developments in the online gambling industry. Here are the latest headlines from around the globe.

UK Tax Bill Faces Final Committee

A new finance bill in the UK that would introduce a 15% tax on online bookie profits will face a final committee before being passed into law. During this final review stage, MPs will have the chance to raise concerns they have over all details covered by the bill. The bill has thus far enjoyed bipartisan approval, so amendments are thought to be unlikely. 

The UK government predicts that this new law will generate approximately £300 million per year, but some believe that the 15% rate is too high, and will ultimately damage the iGaming industry. Opponents include the Remote Gambling Association, which claims that any tax above 10% will drive black market growth.  

Dutch Gaming Authority Warns Operators Against World Cup Marketing

With the World Cup underway, the Dutch Gaming Authority has issued a warning to national operators who are targeting customers in the country. Advertising to the public is illegal in the Netherlands under the Gaming Act, and between five and ten online operators received letters reminding them of this after the Dutch regulator witnessed a spike in marketing activity.

Dutch Secretary of State Fred Teeven commented that operators who are currently breaking Dutch law “are playing with fire,” and their chances of receiving/renewing a Dutch gaming license are slim. 

The Future of Online Licensing in Germany

Germany’s Interstate Treaty has been the object of a recently concluded legal case, though no resolution has been reached. The case consisted of local operator Digibet challenging the legality of having two separate licensing regimes within the country. The two regimes are Germany’s Interstate Treaty, introduced in 2012, and the German state Schleswig-Holstein.

The Court of Justice of the European Union ruled against Digibet, stating that two licensing regimes within the same country does not contradict EU law. However, Germany’s future regarding its regulatory procedure is still uncertain. 

Portugal to Push Online Gaming Regulations

Portugal’s current legislative session is scheduled to end on July 10, 2014, but parliament wants to address the issue of online gaming before it does. The EU troika is largely behind the push to address the issue, since online gaming regulation has the ability to increase tax revenue. The troika consists of the European Union, International Monetary Fund and European Central Bank.

The proposed bill has a tax rate ranging between 15-20% of gross gaming revenue, but differences of opinion lie in the structuring of the licensure. 

Portugal currently has one regulated operator in Santa Casa da Misericórdia de Lisboa, which is a betting and lottery operator that invests approximately 28% of its GGR into charitable causes.