UK Announces New RGD Rate -- The rate for the new Remote Gaming Duty has been set at 15 percent, Chancellor Gordon Brown announced in his Budget speech today. The news comes as a disappointment to the industry, the AP observes, as the new rate may discourage tax-sheltered offshore operators from relocating to the United Kingdom. In a prepared statement issued today, the Remote Gambling Association said that the United Kingdom had "effectively priced itself out of the market," and that the new rate would make it "almost impossible" for U.K.-based operators to compete with offshore businesses, "especially those located in other EU jurisdictions."
Sounding Off -- The European Commission (EC) today demanded that Denmark, Finland and Hungary adjust national policies that limit sports betting in their countries, saying it could take them to court if they did not respond within two months. The EC said it had received complaints that the three Member States effectively prohibit other States from doing business in their countires. Following the EC's announcement, both bwin and Ladbrokes publicized the following reactions:
"This is the clearest indication yet that our efforts to highlight clear breaches of EU law will have an impact. Ladbrokes applied for betting licenses in Denmark and Finland and publicly committed to meet any equivalent social criteria to the existing state monopolies. Our applications were rejected out of hand by both governments as they sought to protect their monopolies. We hope these moves by the commission in response to our complaints will open up these markets to licensed and regulated competition, providing better value and choice for the consumer. We will continue to campaign for similar measures in other markets such as Holland, Sweden and Norway."
- Ciaran O'Brien, PR director, Ladbrokes
"We welcome the judgment by the European Commission, which underpins the European Court of Justice's Placanica verdict of 6 March 2007. The decision to continue infringement proceedings against three members states simultaneously is a clear warning addressed to France, Germany and Austria to remove their current restrictions on cross-border gaming immediately."
- Norbert Teufelberger, co-CEO, bwin
Acquired -- Cantor Gaming has acquired the gaming assets of operator Kismet Group for an undisclosed sum.
Done Deal -- PacificNet said on Tuesday that it has been selected as the official telecom and mobile provider for the 2007 World Series of Mahjong, which is organized by World Mahjong Ltd. The deal sees PacificNet promote the Series online and through mobile Internet portals of its operating subsidiaries and mobile partners.
Launched -- Intertops has expanded its mobile gambling offering and will launch a new suite of casino games on Spin3's GameWire system.
Stock Watch -- On the LSE, Ladbrokes is up 3.50p to 408.50, Sportingbet is up 1.25p to 64.00, PartyGaming is up 2p to 45.00 and 888 is up 3p to 118. In Vienna, bwin jumped 2.98 euros (9.45 percent) to 34.50.