Slovakian i-gaming concern

There are worries in the industry that there may be a crackdown on gambling websites, including those hosted by internationally renowned companies, by European jurisdictions, following news that Slovakia has compiled a blacklist of operators.

It looks like that other countries may follow suit, in the wake of Slovakia’s threat to close down 10 sites, according to the UK’s Sunday Telegraph.

The list includes companies operated by Bwin owner GVC, 888 and William Hill, unless the operators voluntarily turn them off.

While losing the Slovakia market may not concern big operators too much, there are concerns that it could push other jurisdictions – especially so-called “grey” markets – into framing their own legislation.

Slovakia wants operators to take out local licences and pay 27 per cent tax. It comes against a background in which other countries, notably the Netherlands and Poland, have amended their own regulations. One such grey market is Turkey, which has no formal regulation but is a notable market for many companies including the GVC subsidiaries.

According to Sandford Louden, a partner in Oakvale Capital, an advisor on acquisitions in the gaming industry, it was “definitely a concern” and “a perennial issue” that other jurisdictions could follow suit with a crackdown.

“Most major operators have started to loosen their definition of what a black market is because they are running out of road in regulated markets like the UK where double-digit growth is a thing of the past.”

The argument by operators currently serving Slovakian players is that their European licences should be enough, but Slovakia is not happy to accept licences issued in Malta, Gibraltar or the Isle of Man, even if those licences entitle the operator to do business under EU law.