News About Online Gambling Regulatory Authorities

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Regulatory authorities are an integral component of the online gambling industry. Whereas, their activities do not impact players on a day to day basis, the judicious wagerer will keep track of developments at these authorities.

The first news item concerns the Lottery and Gaming Authority of Malta (LGA). LGA has entered into a Memorandum of Understanding on bilateral cooperation on broad ranging issues with the Jersey Gambling Commission. These include developing common responsible gaming measures, enhancement of player protection measures, the development of common certification standards and recognition of national certification bodies, recognition of financial institutions located in the jurisdictions and employee exchange programs. The two jurisdictions will also exchange information and provide assistance in the investigation of online gambling operators.

The old dispute between Antigua and Barbuda and the USA Government, which was on the back burner, has again been activated by the island nation. The dispute stemmed from the blocking of US players’ access to Antigua licensed online gambling operators and the subsequent World Trade Organization ruling that ordered America to make good losses incurred by Antigua. Now Antigua Finance Minister Harold Lovell has threatened unspecified sanctions against the USA if the latter did not lift the “trade blockade” that prevents Antigua and Barbuda from hosting online gambling. USA Trade Representative Ron Kirk has filed a WTO free trade challenge against China regarding the latter’s subsidized exports of auto parts. Lovell all but called the US stance hypocritical and hoped that now the USA government would honor the WTO rulings in online gambling.

The European Commission and the Greek Finance Ministry have reached an agreement on the level of gambling taxes to be implemented from January 1, 2013. OPAP, the Greek online gambling monopoly, will apply a flat gaming tax on player winnings of 10% across the online and land gambling sectors and will be subject to a 30% tax on gross earnings. This levy is over and above the existing corporate tax rate of 21%. Though Greek Government officials said taxes had to be brought in line with European competitors prior to the expected privatization of OPAP, the agreed rates are actually on the higher side. Other European countries pay between 15% and 25% tax on gross earnings. Currently player winnings in Greece are taxed at 10% above €100. From next year players will pay this tax from the first euro. Dimitris Birbos, an analyst at the Investment Bank of Greece, estimated that the new rates would decrease OPAP’s 2013 net profit by €280 million. Birbos added, “As things stand, I think it would be better for the state not to go ahead with its [OPAP’s] sale, as its valuation is going down.” The share value of OPAP has immediately fallen.

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