Ladbrokes out of Greece!

[nikantw]

Ladbrokes casino will no longer accept bets from Greek players, because of some new legislation. Does anyone know what this is about? Will other online casino do the same thing?

[jetset]

This is probably associated with the Greek government's implementation of online gambling regulation recently. After years of bans and police actions, the Greeks finally decided this year to include the regulation of online gambling as part of a larger omnibus measure involving the privatisation and changes to other gambling interests, probably motivated by the dire economic straits in which the country currently finds itself.

The original proposals were challenged by some major companies and rejected by the European Commission, and for a while it looked as if the Greeks were going to fly in the face of that opinion. However, they moderated their requirements concerning the number of licenses to be issued and a controversial 'blackout' provision, and the whole bill passed in August this year on a voice vote after three days of debate.

My reading of the current situation is that private operators will now have to have Greek licensing and submit to Greek regulation. Once licensed, they will be allowed to advertise across all online and offline media, including TV. They will also have to pay Greek taxes, and players will have to pay a tax on winnings of around 10 percent.

The system, which calls for the formation of a regulatory body, does not yet appear to be fully up and running.

Operators will face competition from OPAP, the traditional land gambling monopoly in which the Greek government has a 34 percent interest (although privatisation moves are afoot).

OPAP has indicated that it will compete in a liberalised online gambling market, using the advantage of its previously entrenched market position and local experience.

The war of words is not yet over, either. As recently as last month the Remote Gaming Association filed a complaint against the modified Greek online gambling law, listing a number of concerns regarding non-EU compliant obstacles to new licensee applicants and other restrictions on foreign competition from companies in other EU nations.

Among the concerns is the economic burden placed on new licensees by requiring them to have a physical server presence in Greece and execute financial transactions through Greek banks. There are also concerns that a higher age limit has been placed on online players than on those frequenting land facilities, which is seen as inequitable.

There have been further rumblings and an EC complaint filed by the European Gaming and Betting Association, which represents most of the major European online gambling groups; they have concerns regarding the 30 percent GGR tax levels and some retrospective tax moves that have been characterised as a stealth market entry fee.

Ladbrokes may have decided that the game is not worth the candle, or it is cleaning up its act to enhance its chances of obtaining a licence.

[nikantw]

Greece
Betting Interest Groups File Complaint Against Greek Gaming Laws
The European Gaming and Betting Association (EGBA) and the Remote Gambling Association (RGA), have filed a formal complaint against Greece’s new gaming laws. This is not the first time that Greece’s gaming laws have caused controversy. In June 2011 when the Greek government first submitted its new gaming legislation, it was criticized by the European Commission as being too protectionist and putting foreign operators at an unfair advantage. Despite these criticisms, in August 2011 the Greek Parliament voted in favor of a gambling law that still retains many restrictions and puts in place a 30 percent tax on GGR.

According to a joint press release issued by the EGBA and RGA in November, the new law places “unnecessary and unjustified economic burdens on new operators, such as forcing them to have a permanent establishment in Greece and limiting financial transactions to Greek banks. The law also imposes a higher age limit for online than offline gambling with no justifiable evidence to support that restriction.”

Both organizations are also concerned that taxes on any revenues earned from Greece-based customers will have to be paid retroactively from Jan. 1, 2010, until any new licenses are granted. At the same time, the law seeks to protect OPAP, a public Greek company that exclusively operates and manages offline lottery and sports betting games, as it extends its license by another 10 years from 2020 to 2030, and currently pays no gambling tax.

According to Sigrid Ligné, secretary general of the EGBA: “Commissioner Barnier recently confirmed to the European Parliament that the he would fulfill his responsibilities seriously in assessing the compliance of member states gambling legislation with EU law. Allowing Greece to proceed with this legislation unchallenged would represent an abject failure of those responsibilities. We trust the commissioner will urgently investigate our compliant against Greece and take action accordingly against Greece as well as on several other pending complaints.”


James Marrison has been covering the casino industry in Latin America for over seven years and has written in-depth features on every country in the region. Marrison has worked as a research contributor for Global Betting and Gaming Consultants and serves as a consultant for industry professionals for the Gerson Lehrman Group. Marrison is also a researcher into the online gaming markets in Europe.