This time last year, operators were reeling from the regulation of the French market. The introduction of a new tax regime together with our low market share and the cost of the IT work required to obtain a licence in France, led us to conclude that it was economically unviable and we therefore chose to withdraw from the French market in May 2010. Since then we have blocked all services to French citizens.
Italy was next with its updated gambling bill permitting a number of non-Italian bookmakers to obtain licences to operate online. In July 2011 Italy extended its licensable offerings to include cash ring games for poker and other casino games. Whilst the technical requirements are unique and complex, the basic economics of the approach are heading in the right direction for both operators and customers alike.
Since then we have seen both Spain and Greece publish gambling bills, although they are still yet to issue licences. Spain is due to start its licence application process in November 2011 with the first licences expected during December. As for Greece, we await the announcement of the new licensing regime, amidst news that tax may be payable during the period prior to this announcement.
Further North, and we had high hopes for regulation in Denmark. Unfortunately, the process has recently been postponed pending input from the EU Commission. We expect a decision imminently.
We are confident that in the new financial year we will have licences in Denmark, Italy and Spain. We will continue operating in a regulated Greek market with our successful Greek business however it is unclear if the Greek regulator will have resolved its licencing process during this financial year.
The European Union recently published a "Green Paper" which called on all Member States in the EU to consider all the potential issues in relation to online gambling, including a form of harmonisation.
Given the timescales involved in implementing this Green Paper compared with the rate at which EU members are moving towards regulation, such harmonisation is unlikely to occur in the short-term, and the most likely trend to continue is for jurisdictions to introduce licensing regimes which may or may not be tempered by European Commission intervention.
Here in the UK the government announced (in July 2011) its intention to proceed with plans regarding a system for the regulation of remote gambling in the UK. This will also look at whether operators who advertise in the UK should face new regulatory requirements - which would attract consequential licence fees - to ensure a more even financial treatment of both UK and non-UK operators who target this market.
Further afield and in Australia we have begun to see a growing trend to impose product fees (e.g. race fields and sporting fixtures) which essentially add an additional tax to that paid by the operator in the state in which the operator is licensed. We continue our discussions regarding the provision of our other products (casino, games and poker) as well as in:play which remain prohibited in Australia.
The United States continue to prohibit online gambling. Following our settlement with the Department of Justice in September 2010, we believe we can now draw a line under our previous activities in the United States.
As for Asia, we have no operations or activities due to the prohibitive regulatory regimes in many Asian countries.
The Sportingbet Group continues to provide its services only from jurisdictions where is it licensed and regulated, and therefore the position in its place of supply (and where its regulator and applicable local laws deem the gambling transaction to take place) is explicitly legal.
In order to provide our worldwide gambling service, the Sportingbet Group currently maintains licences in Alderney, Antigua and Barbuda, Australia, Curaçao, Malta, South Africa and the UK.