2013 : W H A T W E L E A R N E D F E A T U R E
WHAT HAPPENS NEXT ?
The new poker offering was launched in
September after more than a year in the
making, and it will be well into 2014 before
we see whether the new poker client, with
merged Party-bwin poker liquidity and
recreational focus, will cause revenues to
climb once more.
If the US continues to open up during
2014 bwin.party’s partnership with Boyd
Gaming – which has a land-based presence
in most active gaming states – could prove
an extremely shrewd move.
Meanwhile, various product launches
that remain in the pipeline – a new social
sportsbook product and mobile casino
offering – could help capitalise on a
summer that includes the FIFA World Cup
in Brazil and provide that respite.
WINNERS AND LOSERS
All four verticals showed decline in
2013 and mobile continued to be an area
of weakness. The only glimmer of light
was from the US where its smooth launch
in New Jersey will calm investor fears.
The new year will be crunch time for the
operator in Europe.
07
NO JOY FROM
GERMANY – YET
The past 12 months have been
full of broken promises, court
cases and operator frustration in
Germany as sports betting licences
continue to lie just out of reach
WHAT HAPPENED?
After a string of delays, many believed
2013 would be the year the lucrative
Slow progress German regulation has proved a source of frustration
market finally opened up, with German
regulators pencilling in August as a
prospective date for the first licences to
be awarded. However the process was hit
by a landmark ruling in favour of BetVictor,
which successfully sued the Ministry of the
Interior of Hesse in the Administrative Court
after it was not invited to a licence hearing.
The case caused further delays and
highlighted the extent to which operators
had become distrusting of the regulatory
body over the licensing process, with
little sign of movement and even scarcer
comment originating from the Ministry.
Schleswig-Holstein-based mybet
launched a cost cutting programme
after being forced to downgrade its EBIT
forecast for the year on the back of such
uncertainty, with Betfair having long
since given up on the country. Remote
Gambling Association chief executive
Clive Hawkswood, however, says it would
be hard for many operators to “turn their
backs” on a market the size of Germany.
The process received a potential bodyblow in November after it was revealed
that none of the 41 applicants permitted
to the second stage of the procedure
had met the Interior Ministry’s minimum
requirements for approval, delaying
licensing long into 2014.
Patrick Schwarzbart, a gaming lawyer
at DLA Piper, concluded that the continual
delays are making sports betting licences
“less valuable by the day” considering that
the suspension on the state monopoly is to
expire on 30 June 2019 regardless of when
licences are awarded.
Operators clinging onto the hope that
the European Commission would intervene
were left disappointed after Germany
failed to appear on a list of nations
receiving infringement proceedings in
November, with Hawkswood considering
the Commission unlikely to interfere with a
country’s licensing procedures.
WHAT
HAPPENS NEXT?
Companies with an eye on Germany,
particularly the likes of bwin.party, will be
expectant of movement on the regulatory
front in 2014. Letters providing additional
guidance are to be sent in January, while
operators are to be afforded the chance to
amend and complete applications before
resubmitting them. For the time being,
however, it would appear that Germany is
in a state of limbo regarding sports betting,
and is to be for some time yet.
50
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