iGaming Business magazine In-Play Focus 2016 | Page 6
IN-PLAY FOCUS 2016
IN-PLAY AND THE CHALLENGE
OF REGULATION
The growing appetite for regulation requires operators to be asking different
questions of their in-play suppliers, writes Michael Mikesch of BGT.
Regulation in the gambling industry has
always been a sort of ‘catch me if you can’
scenario, with some operators working
between the lines before governments and
gambling authorities decide enough is
enough and close the net. With the birth of
the internet exposing the gaps in legislation
and tax loopholes, it is only recently that the
authorities have managed to catch up.
This isn’t just restricted to the gambling
industry, as we’ve seen recently in the UK
with the outrage prompted by global internet
superpowers such as Google and Amazon
managing to legally pay next to nothing in
corporation tax for years. The tide is definitely
turning. Consumers are educating themselves
on the matter and are looking more
favourably towards localised companies who
play by the rules.
It’s not just public pressure forcing
companies into these changes. In Spain,
the government is offering lucrative tax
advantages to gambling operators who are in
possession of a local licence, paying only 10%
tax compared to operators holding a national
licence, who are paying upwards of 20%.
If you wanted to go down the ‘carrot and
stick approach’ analogy, Spain is definitely
offering operators the carrot, whereas Italy
has shown itself in the past to be more than
ready to bring out the stick when necessary.
After the unfortunate BetuniQ saga, the
strict ADM protocol was brought into force,
which has definitely clamped down on the
offshore operators. It is also favourable to
online operators wanting to set up land-based
operations in Italy. This is an approach to
regulation that has proven both to generate
tax revenue for the authorities and provide
jobs for the local community.
Other territories are definitely starting to see
44 | iGamingBusiness | Issue 97 | March/April 2016
the benefits, and the appetite for regulation
continues to gather pace. With the tide
changing, this raises different questions for an
operator looking to choose a supplier.
From my time at BGT, I’ve witnessed
the transformation from ‘new kid on the
block’ to BGT becoming one of the world’s
leading sports betting technology providers.
Underpinning this story has been BGT’s ability
betting in Italy, navigate complex South and
Central American tax rules and adhere to the
local server requirements in Belgium.
Adaptability doesn’t stop with monetary
compliance, however. Content is also a factor.
In-play betting has recently been at the sharp
end of a regulatory clampdown across many
countries in Europe. In Germany for example,
there has been a ban on ‘action-driven
markets’ such as betting on the number of
yellow cards, throw-ins, corner kicks, etc. To
ensure that such changes are never a problem
“In-play betting has recently been at the sharp end
of a regulatory clampdown across many countries
in Europe.”
to be consistently versatile as new rules and
regulations are introduced.
For example, say I am an online operator
based in central Europe and I spend a fortune
putting my logo on the kit of a Premier League
team. In times past, I could offer betting to
everyone, but as regulation comes in, I am
now forced into acquiring local licences.
With the right technology supplier, there
is an opportunity to make this regulation
work in your favour and translate the online
success into the retail world, not only in
one’s base territory, but also in neighbouring
countries. BGT have demonstrated this with
one particular client in Spain, where we were
able to open not just the Spanish market but
the Panamanian and Mexican markets at the
same time. We were able to do the same for an
Austrian client, who has expanded to operate
in Romania, Slovakia and the Czech Republic.
Being able to negotiate numerous
regulatory environments is a key criteria to
success in this industry. BGT have been able
to implement regional compliance in Spain,
work through the heavy regulation of sports
for operators working in multiple territories,
BGT has developed a centralised content
management system where operators can
easily pick and choose their content across all
available channels, ensuring compliance with
the evolving intricacies of local and national
legislation.
It’s all too easy for suppliers to promote
the speed, reliability or overall design of
their product. What is much more difficult
to achieve - and increasingly attractive to
an operator - is a proven track record of
success as a supplier in multiple territories.
Demonstrating experience and versatility
in an ever changing regulatory landscape is
only going to become more important as the
appetite for regulation grows.
Michael Mikesch joined BGT
in 2009, initially working in
Controlling & Accounting and
progressing to become the Chief
Financial Officer. Michael assumed
his current role of Chef Commercial
Officer in 2015.