UK’s William Hill to Leave Estonia and Portugal Gambling Markets
UK’s leading bookmaker, William Hill has given notice to affiliates and customers in Estonia and Portugal, of its decision to wind up its betting and gaming services in the said countries, in light of new regulations governing online gambling. Email messages addressed to media partners, affiliates and online players conveyed that William Hill is set to cease operations in Estonia and Portugal effective June 28, 2015.
Media partners, as well as affiliates have received instructions to remove all marketing inventory, whether in print or traditional media and carried online or via mobile channels. William Hill online players are likewise instructed to withdraw any funds they have in their gaming account, as William Hill will no longer accept betting and gaming transactions after said date.
About Remote Gambling Licensing Laws in Estonia
Remote gambling operators in Estonia are required to obtain two types of licenses and pay the appropriate licensing fees if they wish to offer their betting and gaming products in Estonia’s gambling market.
One of such licence is the Activity Licence, which serves as an attestation to the reliability and integrity of the gambling company that operates the online gambling website, and in conformity with the provisions of Estonia’s 2008 Gambling Act. The second is the Operating Licence, which serves as operating permit to offer a specific type of gambling, and must be obtained before the remote gambling operator offers a gambling product or service to Estonia citizens.
Those two licenses also require separate payment of state fees for the review of each licence application. Gambling operators who continue to offer online gambling products and services to Estonia citizens without securing the required licences have been blacklisted, and their websites blocked by Estonia’s Internet Service Providers (ISPs).
Another important development is the full implementation of Estonia’s 2009 Gambling Tax Act, which for a long time remained as a draft of amendments regarding the prescribed state fees, and gambling taxes that Estonia-licensed gambling operators must pay to the government.
About Remote Gambling Licensing Laws in Portugal
Portugal’s new Online Gambling Act is set to take effect on June 28, 2015. The new legislation contains provisions specifically governing online gambling. Portugal’s Council of Ministers gives assurance that the provisions are in line with the recommendations put forward by the European Union for fair and competitive business practices.
Portugal hopes to generate as much as €25 million in gambling tax revenues, by imposing varying tax rates on different gambling products and services, particularly on remote betting and gaming operations. The tax rates, however, are seen as unworkable by many, which analysts at PricewaterhouseCoopers predict would lead to the withdrawal of about 80 percent of licensed gaming operations in Portugal.
Variable tax rates ranging from eight (8) percent to sixteen (16) percent apply to sports betting turnovers, while a tax rate of fifteen (15) percent will be collected on gross revenues gained by online casino and poker operators, if their annual income does not reach €5 million per year. Those generating more than €5 million annually will pay an additional three (3) percent on every €one (1) million that exceeds the €5 million benchmark, but capped up to 30 percent if the annual income reaches €10 million for the year.
