Casino operators look set to lose access to Visa for German customers, after the payments company requested partner banks to stop processing transactions.

Reports from German online casino players suggest Visa cards are no longer being accepted by operators, and some sites have confirmed “temporary” suspensions. 

Major German facing operator Tipico has removed all references to Visa from its casino website, and Bwin has said Visa can only be used to make deposits and withdrawals for sports betting. 

The move by Visa is just the latest payments headache for operators; in June 2019 German authorities asked PayPal to stop handling German resident’s transactions with international casinos, and in January authorities warned banks to stop processing payments to offshore casinos. 

As we’ve previously reported, Germany is planning to have a regulated national online gambling market up and running by 1 July 2021, complete with strict limitations on stakes and a ban on affiliate marketing. However, the legislation process has been subject to delay after delay, with the latest caused by an Austrian bookmaker contesting the process in court. 

Last week Germany submitted a revised framework for the fourth edition of “State Treaty on Gambling” to the European Union. 

AYO.NEWS says:

With payment bans in Germany, the Swedish market turning into a nightmare, Norway banning all online and satellite TV gambling advertising, emergency restrictions in Spain, Portugal and Belgium, extra taxes in Italy, and ever-tightening regulations in the UK, Europe is nothing if not challenging for operators these days! 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020

The Malta Gaming Authority (MGA) has published a consultation paper on suspicious betting reporting requirements and other sports integrity measures. 

The paper follows the establishment of the MGA’s Sports Integrity Unit on 29 August 2019, and is in preparation for the bringing into force of section 43 of the Gaming Authorisations and Compliance Directive (Directive 3 of 2018), together with other measures. 

The paper sets out definitions of sports and sporting events, the specific suspicious betting reporting requirements, the requirements for designated points of contact, what exactly constitutes ‘suspicious and/or irregular’ activity, and the reporting instrument to be used between B2C licensees and the Authority. 

Underlining the potential complexity of the sports integrity issue for regulators and operators, the MGA has acknowledged that it understands “that any action taken by the operator relating to suspicious bets, especially where customer winnings may be voided or withheld as related investigations take place, is likely to generate customer disputes.” And that it “understands that this scenario involves considerable administrative time and effort on behalf of arbitration bodies and operators, with some cases taking years to be completed whilst the relevant sports governing bodies, law enforcement or integrity unity conclude investigations into potential corruption.”

Feedback is now being sought from licensees regarding the proposed bringing into force of the Suspicious Betting Reporting Requirements, and other measures which the MGA intends to implement. 

You can read the full consultation paper here. 

Staying with the MGA and sports integrity, last week we reported the authority had established a data-sharing agreement with the World Professional Billiards & Snooker Association (WPBSA). 

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The UK Gambling Commission (UKGC) has released the findings of its investigation into the now defunct PT Entertainment Services (PTES) online betting group. 

PTES was a Playtech B2C subsidiary, and operated brands including winner.co.uk and Titanbet, before surrendering its UK license after the UKGC launched an investigation for social responsibility and anti-money laundering failures. 

The UKGC stepped in and launched the investigation in May 2019, after being contacted by the family of a gambling addict who committed suicide in April 2017. The UKGC went on to discover serious, systematic failings at the PTES. 

Specifically, the Commission found that despite the customer displaying problematic behaviour, PTES brands continued to engage them, while failing to carry out any responsible gaming interactions. 

Investigators also found that PTES representatives had offered the victim, and other high spending customers, VIP status, without conducting financial or affordability due diligence. 

Commenting on the case UKGC Chief Executive, Neil McArthur, said:

“This is a tragic case which came to light after I was contacted by the family of the young man who very sadly took his own life.  I want to thank them for their bravery in bringing his case to our attention and we are grateful for the way they have worked with us in such terrible circumstances so that we could understand what happened.”

Before surrendering its operating license, PTES had apparently made several financial settlement offers to the UKGC, but none were deemed sufficient. According to the UKGC, had PTES not already terminated its UK license, it would have been subject to a £3.5m financial penalty, and possibly other sanctions. 

In the event, PTES did donate £619,395 to charities working to reduce gambling harm. Parent company Playtech has also committed to donate a further £5m to mental health and gambling-related harm charities over the next five years. 

Individuals connected to the PTES license continue to be investigated. 

AYO.NEWS says:

Despite the historical nature of this case, this news couldn’t come at a worse time, with online gambling under increased political and public scrutiny due to the COVID-19 crisis. 

Predictably, British mainstream press, including the Daily Fail, is all over this story, whipping up public anger and calling for blood, and many commentators demanding online gambling be banned. 

Cases like this can only increase the likelihood that the UKGC will ban VIP promotions and introduce further restrictions on marketing. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020

Swedish sports betting operators can relax a little, as proposed emergency restrictions are revised to exempt sports betting from deposit limits. 

As we’ve previously reported, the proposed emergency restrictions on gambling in the country had included deposit limits of SEK 5,000, plus other measures, for all gambling for the duration of the COVID-19 crisis.

However, social security minister Ardalan Shekarabi, a leading proponent of draconian restrictions, has now presented adjustments to the measures, which would exempt horse racing and sports betting from the deposit limits.

Although it’s obviously good news for all sports betting operators in the country, BOS, the online gambling trade association, has said it thinks the change of heart has little to do with consumer protection, and is instead “to provide benefits to gambling companies that it [the government] is closely connected to, such as horse betting company ATG, with a majority of its board members appointed by the government.”

AYO.NEWS says:

It really does seem like licensed gambling operators have lost all trust in Swedish politicians. And, as we’ve previously noted, as long as ideologically driven anti-gambling politicians like Shekarabi hold sway, things will only get worse. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020

Italy is set to introduce a new emergency “turnover tax” on betting and virtual sports wagers. 

Last week the Italian parliament approved the new “temporary” 0.5% turnover tax across all betting verticals, including online, retail and virtual sports. It is set to apply until 31 December 2021. 

The new tax is part of the “Revival Decree,” which includes a raft of measures aimed at raising funds to support the post-COVID-19 recovery of the Italian economy and society. The tax will also enable the establishment of a “sports relief fund,” which aims to raise €90m by 2021. 

During March and April, the Italian sports betting industry saw revenues crash a record 72%, and estimates suggest it may take a year or more for it to recover to pre-COVID-19 levels.

Understandably, the new tax has been met with disbelief by many, who question the logic of increasing the tax burden on a sector that has been so badly hit by the crisis, and leading to the country becoming one of the highest-taxed regulated sports betting markets in Europe.

Italian sports betting operators already pay GGR betting duties of 20% for retail, 22% for virtual games, and 24% for online betting.

Though operators will be dismayed at the new tax, it could have been worse, as initial drafts of the legislation called for a 0.75% turnover tax. 

AYO.NEWS says:

The Italian government is hardly known for sound economic decisions, but this really does take things to a new level of absurdity – increasing the tax burden on one of the sectors COVID-19 hit hardest. 

Staying with Italian sports betting, don’t miss “Southern Change: Shaping Italy’s Online Betting Market.”

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020

Things may be about to get a little easier for crypto firms in the Ukraine, after the publication of a new draft bill clarifying the legal status of virtual assets. 

After four years of contemplation, last week the Ministry of Digital Transformation of Ukraine, published the new draft bill “On Virtual Assets”, which provides clarification on the legal status of cryptocurrencies, and rules regarding their circulation and issuance. 

Critically, if passed, the bill should allow Ukrainian crypto companies to open local bank accounts – something cryptocurrency exchanges in the country are still unable to do.

However, despite the obvious benefits to the industry, some serious concerns have been raised. One in particular is quite disturbing – the possibility that the law would render all crypto wallets in the country illegal unless they are registered with the Ministry.  

It seems the Ministry drafted the bill in response to last year’s announcement by the Financial Action Task Force (FATF) that it would be adopting AML rules for cryptocurrencies by June 2020. The Ministry has invited feedback from the crypto community, with the bill open for discussion until 5 June 2020. 

As we reported in January, the Ukrainian authorities have already started monitoring all cryptocurrency transactions exceeding 30,000 Ukrainian hryvnia (UAH) – approximately €1,100. 

AYO.NEWS says:

As digital assets mature into a fundamental part of the global economy, we are witnessing the irreconcilable nature of true privacy and anti-money laundering regulations. No matter what proponents of regulation say, by definition you simply can’t have true privacy and effective AML controls. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020