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Notably, the draft points out that “the majority of operators currently targeting British customers are subject to established and effective regulatory regimes”, although it does not specify which jurisdictions. It will be interesting to see if this sentence becomes a point of focus for the many operators and the industry bodies that represent them. As such parties seek to ?nd weaknesses in the Government’s proposals, searching for points for potential legal challenges, the admission by the Government that many operators are already subject to adequate controls is a somewhat unexpected one. A stage of prelegislative scrutiny will now commence and operators will get another opportunity to express their views on the proposals, which no doubt they will take advantage of. Log on to www.egamingreview.com for more daily opinion and breaking news on the online gaming industry
Government moves to regulate online gambling
> Stephen Ketteley > Partner, DLA Piper
The government has made its latest move in the process to regulate internet gambling on a point of consumption rather than a point of supply basis, meaning any provider of remotely supplied gambling services to UK players will need to obtain a licence and pay taxes here. Almost all current transactions are currently outside the UK’s regulatory net and the majority of providers pay no taxes here on the corresponding revenues they generate. The government’s publicly stated reasoning for the reforms stems from consumer protection concerns; the fact that customers can transact with operators that are licensed in numerous offshore jurisdictions and, arguably, do not afford the same level of regulation as they would were they regulated by the UK Gambling Commission. Unjusti?ed Hugh Robertson, the minister responsible [for gambling], emphasises the inadequacies and inconsistencies that can exist in other licensing jurisdictions such as insufficient methods of self-exclusion, de?ciency of reporting requirements and the absence of contributory costs to regulation, research or education and treatment of problem gambling. Focal point However, with most EU Member States either currently taxing gambling transactions on a point of consumption basis (or in the process of implementing laws to do so), the UK’s current regime that allows providers to supply to UK players without necessarily paying duty here seems outdated. As such, the industry is crying foul and sees this as a revenue raising exercise, not a consumer protection issue. European Court of Justice jurisprudence suggests ?scal intentions are not a suitable justi?cation for preventing the free movement of services in the EU (a concept damaged by local licensing requirements).
LONG LIVE GREEN
Members of the Mr Green team, including CEO Mikael Pawlo, celebrate their socially responsible operator of the year prize at the recent eGR Operator Awards 2012 held in London. (Turn to p70 for a full run-down of this year’s awards winners)
Charles Cohen,
CEO
Mike Shinya,
non-exec chairman
Mark Davies,
non-exec director
Co-founded Probability with John Scaife in 2003. Hired by PR firm Band & Brown in 1994 to create a new technology division. Founded beenz.com, an internet currency programme in 1998, which was valued at $300m and sold in 2001.
Appointed chairman of Probability on 31 August 2012, spending most of his 30-year career in the technology sector. Former CEO at Sherwood International and at IBS Group, a Stockholm-listed software firm.
Member of founding management team of Betfair responsible for its external and public affairs for 10 years until June 2010. Now runs communications consultancy Camberton Associates. Private investor in a number of start-ups.
William Henbrey Matthew Wreford Rocco Pellegrinelli Matthew non-exec director non-exec director non-exec director Sunderland
Former partner at accounting firm BDO Stoy Hayward from 1978 and head of the UK Betting & Gaming and Leisure & Hospitality Units until his retirement in June 2006. He chairs the company’s audit and remuneration committee. Qualified chartered accountant Wreford is CEO of private holding company IPGL that focuses on partnering with experienced management teams to build young businesses into industry leaders over the long term. Tech entrepreneur. Launched start-up Brainpower in 1995, a software developer for portfolio analytics and investment decision support, selling it to the Bloomberg group in 2006. Founded mobile gaming startup Playyoo in 2008.
MD, commercial
More than 15 years’ experience of commercial marketing in the entertainment and gaming sectors. Joined Probability in November 2009 to take charge of marketing LadyLuck’s mobile casino.
www.egrmagazine.com
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