All of the current talk in the Online Casino world is coming from London this month. The Gaming Licensing Act, that was recently granted Royal Assent is being fought by the Industry in Gibraltar, including 32Red. The other big news is a mega-merger to the tune of $4.9 by Amaya!
Gibraltar verses England
England’s recent attempt to impose law and taxes upon online gambling has generated a push-back. The Gibraltar Betting and Gaming Association (GBGA) reflects the united interests of the online gaming sites that are based outside of the UK and on Gibraltar.
This is a response to the UK Gambling Licensing and Advertising Act of 2014, which not only adds new levels of regulation from London but also a 15pt tax upon all bets placed. 32Red and others based in Gibraltar already are required to have permits and are regulated in Gibraltar.
GBGA sees this as both an attempt by London, to raise an estimated 300 million pounds annual from this Act, which already has received Royal Assent. It is also seen as a lever to force bookmakers and sites to return to the shores of the UK and depart Gibraltar.
Lawyers in Olswang have been hired by the GBGA to challenge the legality of the entire act. The 15pt VAT “point of consumption tax” on all bets placed from the UK, is expensive and a dangerous precedent in an industry already regulated in Gibraltar. They are claiming the Gambling Act will expose gamblers to “unscrupulous operators” and is a breach of law in the EU.
Amaya’s $4.9 Billion
Amaya is planning to cash acquire the Oldsford Group, based offshore in the UK on the Isle of Man for $4.9 Billion. Oldsford may not be familiar to you, but it is the owner of online gaming sites Poker Stars, and Full Tilt Poker. This acquisition will create the world’s largest online gaming operation in the world.
The meta-casino online is just the beginning. Amaya is preparing to return the pokers sites back to America! Three years ago, online gaming was treated as illegal in the United States, but a new interpretation of the 2011 Wire Act has re-opened the way for individual states to decide if online gaming is legal within their borders.
Amaya has stated that it fully intends to return Full Tilt Poker, and Poker Stars to USA. Those sites already operate and deal with American regulations, but Amaya has not disclosed its plans beyond returning to America. Amaya usually has operated behind the scenes in the gaming industry, some lotteries, numerous varieties of slot machines, and most notably casino management software.
Conclusion
Taxing and Regulation are again the big news in Online Casinos this month. The UK attempting to impose its new 15pt tax on the Gibraltar Industry, and the industry pushing back this attempt at greater taxes. In the States, the new flexibility to legalize and tax the industry has led to Amaya attempting to purchase the owner of Full Tilt Poker and Poker Stars so they can return to the United States!