Why are Bwin, StarCasinò and William Hill betting against the government?
While Acadi, Astro, Egp and Sapar have launched an appeal to the government asking that the reform of the sector intervene not only online but also physically, the League of online gaming operators (Logico, which includes Bwin, StarCasinò and William Hill) complains about the "exorbitant cost of concessions of 7 million euros, doubled fees and new and unjustified restrictions"
The “Leo reform” is moving towards implementation. The post- tax delegation legislative decree on online gaming is ready to be discussed in the Council of Ministers, which should introduce a reorganization of the matter. An intervention presented as a crackdown on illegal gambling and gambling addiction which has sent the entire sector into turmoil, which is accusing the government of wanting to hide a clumsy attempt to raise cash in the folds of the legislation.
THE REVOLT OF THE BETTING SITES
On the contents, LOGiCO , the Online Channel Gaming Operators League which represents Italian and international dealers and providers of legal online gaming (Bet365, Betsson, Betway, Bwin, Kambi, Kindred Group, Leovegas, StarCasinò and William Hill), expresses in a note " concern and opposition" since the decree would provide for an "exorbitant cost of concessions of 7 million euros, doubled fees and new and unjustified restrictions, such as the limit of only one website per concessionaire, in contrast with the unresolved lack of visibility with respect to illegal competitors. Furthermore, a sort of regularization of the sales and charging points (PVR) would be carried out with a contribution of only 200 euros each, instead of launching a regular tender. The result is a confusing and logical reform framework, which reveals a mere desire to restrict the market, with serious effects on eliminating competition".
For this reason, the association speaks of a provision characterized by a "marked anti-competitive imprint" providing for "a competitive reorganization of the sector with a disproportionate and unjustified increase in the cost of concessions, 35 times higher than the previous announcement in 2018, which from one of our analysis is unprecedented on the global scene. This – the accusation – would cut out 65-75 current dealers, leaving around fifteen in the field. A drastic cut that puts many companies and their employees in serious danger. Principles of free competition are referred to in the premises of the text, only to be trampled upon with rules that favor an oligopoly, expelling the vast majority of current dealers from the legal perimeter, without however guaranteeing the visibility of dealers operating on the legal circuit". The reorganization, on the other hand, does not appear to be a good deal for the state coffers either. In the most optimistic hypotheses, the State would collect between 105 and 140 million. Absurdly – it is pointed out – it would be enough to implement the much criticized current and unapplied tender, and eliminate the limit of 40 concessions envisaged, to raise between 100 and 150 million, without destroying competition”.
For the association, the regularization of the charging points (Pvr) "would bring in revenues of no more than 10 million euros, a figure that can easily be overcome by calling a regular tender for the award of the rights for the use of this network, with clear indication of the maximum number and a concentration limit for each operator".
Also for this reason the association "is asking for the opening of a discussion table, criticizing in detail other points contained in the decree, which gloss over the actual need for reorganization of the sector. In particular, we highlight the lack of a certain regulatory framework on fundamental issues such as overcoming the advertising ban and clear regulation of sales and charging points. All this leads to an absolute lack of conditions to be able to participate."
“Formulated in this way, the decree – the association concludes – would lead to yet another dispute on the part of the large group of companies de facto excluded from the tender, with a market concentrated in very few companies and decreasing revenues for the State. These are not the needs of the sector. We believe in a reorganization which, by focusing on key factors such as transparency, competitiveness, innovation and the ability to imagine the future, is able to best protect the interests of users, companies and, last but not least, the State".
HERE ARE THOSE WHO ALSO CALL FOR REFORM OF THE PHYSICAL GAME
The sector associations, Acadi, Astro, EGP and Sapar, have a completely different opinion and for different reasons are making their appeal to the government: "In these hours – they state in a joint note – the parameters and levers of the new budget law and press previews suggest that among the measures to obtain resources, regulatory initiatives are being examined to implement only part of the measures envisaged by the planned reorganization of the Fiscal Delegation. In fact, we are talking about a reorganization of the online world but not also a reorganization of the territory."
“Without detracting from the importance of a reorganization for online – say Acadi, Astro, EGP and Sapar -, in taking measures, especially if emergency, for the procurement of resources in the budget law, it must be remembered that proceeding in a non-uniform way in the implementation of the Fiscal Delegation can concretely mean causing indirect penalties to the generalist network of the territory which is instead the protagonist in pursuing the main objectives of public interest underlying the existence of the sector itself."
“Deal only with online – is the warning of the associations -, do not simultaneously foresee the reform of the physical with the solution of the territorial question, therefore leaving the State offer on the territories at the mercy of the expulsive distance meters and unsustainable timetables without a concrete The immediate prospect of reorganization means weakening that part of the system which largely ensures the main objectives of public interest in terms of user protection, legality and employment. Therefore not only for reasons of risk of cannibalization of supply. Among other things, in the event of a shift in gaming demand from local to online, the same levels of tax revenue would not be guaranteed."
“And this – say Acadi, Astro, EGP and Sapar – is shown by the numbers of the sector, when the contribution of the territory is compared with the total of the sector. The general offer of bars and tobacconists in the territories is able to provide a massive guarantee of legality, with the presence of state gaming products in 75,000 points (of which 41,000 bars) in 6,044 of the 7,901 Italian municipalities. The same generalist offer with gaming machines ensures a significant revenue from the arcades of 5.9 billion euros (on the 11 products from the entire sector) and provides work with the other supply chains in the area to 140,000 employees of the estimated 150,000 of the entire sector.”
“In the same way – say Acadi , Astro, EGP and Sapar – the small and medium-sized companies managing amusement machines with and without cash prizes are a safeguard of legality, an important voice for the Treasury and a first-level employment value. It is a system of companies that have deep roots in the territory and represent the State's front line in terms of legality and prevention of problem gambling. A misaligned and partial reform is a reform that risks being suitable for reducing, compressing, limiting or in some way indirectly penalizing the presence of the generalist network currently rooted in the territories: thus there is the risk of compromising the constitutional interests of health protection of the user and of public faith (created with a measured offer controlled by the State and managed by expert operators), of the protection of public order in the territories such as the prevention of money laundering of the proceeds of criminal activities (with the effective visible and effective), of the tax revenue (which is remembered as emerging) of employment (assured to date in fact in every part of Italy). Ultimately, the protection of the territories, as well as of the web, by the State and the army of its public service representatives must not retreat".
THE COMPANIES MEMBERS OF ACADI AND THE SAPAR ASSOCIATION
Admiral Gaming Network Srl, HBG Connex SpA, NTS Network SpA and Global Starnet Limited are part of Acadi.
SAPAR was founded in 1962 and is today the longest-standing and most representative national association in the state legal gaming sector.
It is made up of approximately 5,000 small and medium-sized companies managing pure entertainment equipment as well as production and distribution companies all operating in the gaming collection sector
RIOT IN CONFESERCENTI
“We have learned – they say from Confesercenti commenting on the latest press news – of the postponement of the examination of the text of the legislative decree on the reorganization of online gaming, provided for by the Delegation Law for Tax Reform. A postponement that we consider useful, taking into account the need to modify the text of the decree itself in the part in which, completely unexpectedly, it is envisaged that the process of topping up gaming accounts at physical points of sale (including shopkeepers, tobacconists and authorized merchants) must take place 'exclusively with electronic payment instruments'. A regulatory provision that would end up excluding merchants from a virtuous process of integration between online operators and the retail network already underway in the gaming sector and in no way justifiable with greater traceability of payments".
“The gaming account top-up process currently in force for physical points of sale – they explain in a note – is already fully traced: the owner of the gaming account, before proceeding with the top-up with cash payment, identifies himself with an identity document ; then, the merchant matches the value of the top-up to the gaming account and gives the gaming account holder a PIN code to unlock the top-up and access, activating the credit, with his own credentials. By eliminating cash top-ups, the role of tobacconists and merchants from the digital game would be completely excluded, closing the doors to the omnichannel process that has been underway for years with the aim of distributing the value generated by online business between dealers and points physical sales. The use of cash would therefore likely be diverted towards "non-nominal" gaming and therefore less traceable, except on illegal sites through intermediaries (see recent cases of famous footballers who entrusted their cash to intermediaries)."
“We are faced with an impediment measure, which aims to hinder cash transactions, unfairly seen as an indication if not a symptom of fiscal infidelity, but it is an intervention with almost paradoxical contours”, declared Mauro Bussoni, General Secretary of Confesercenti. “On the one hand, in fact, with 'the top-up point of sale' we want to offer the player an alternative to account top-ups in online mode, which by their nature only take place with electronic money. On the other hand, however, this payment alternative, which is fully tracked, is nullified by the unjustified inhibition of the use of cash at points of sale. An even more incomprehensible inhibition if we consider that the Budget Law gives these same points of sale the possibility of becoming real 'ATMs', allowing customers to withdraw cash with the POS. We therefore hope that this provision will be canceled as the decree in question continues."
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia-on-demand/perche-bwin-starcasino-e-william-hill-scommettono-contro-il-governo/ on Wed, 22 Nov 2023 15:18:04 +0000.