Poker Business News From Europe

Finland to Get State-Run Poker Next Year

Finnish authorities have confirmed that a state-run online poker room is to be launched, most likely in 2010.

A final report was submitted to the Finnish Parliament in April which will reform the Finnish Lotteries Act and allow the country’s slot machine association (RAY) to launch the state-run online poker site.

Janne Peräkylä, director of gaming operations at RAY told the media, “This was a clear request by the government, and now we are to provide what is expected.”
The report also says that foreign (non-Finnish) online poker sites will not be prevented from offering their services in the country.

RAY says 200,000 people play online games in Finland and it hopes to attract between 25 and 50 percent of them.

The necessary amending bills are to be brought before the Finnish Parliament in the autumn.

Live Poker in UK Suffers Tax Setback

The British government’s decision to increase tax on poker profits made by UK casinos from 15 percent to 50 percent has dismayed Rank, owner of the Grosvenor brand which hosts the Grosvenor UK Poker Tour, according to media reports in April.

Rank has written to the government saying the move “may result in the closure of card rooms and that as a consequence, demand for games of poker will be satisfied in unregulated, unsupervised, and untaxed premises.”

The reports said Rank-owned poker rooms have 250,000 regular poker players and the company expects to lose £2.7 million per year if the new tax hike is implemented.

South Africa to Regulate Online Poker

South Africa has taken the next step towards the regulation of online poker with the publication of regulations for public comment.

The proposals include the licensing of online poker rooms and the banning of operators currently offering games in the country.

The National Gaming Board is expected to issue up to 10 licences and players will have to open a dedicated gaming bank account which will have a limit of R20,000 (approx. €1,800).

Anthony Puttergill, chief executive officer of casino group Peermont told Business Day magazine, his company would apply for a licence but that many questions still needed to be answered. “We are still examining the regulations and have yet to submit our comments but we are concerned about the fact that it does not mention how many URLs each operator may have, how the licence will be enforced as well as where the gaming will take place.”

The regulations are expected to be adopted over the summer.

International Poker Network Hits Three Million Players

Boss Media, owner of the Intern-ational Poker Network (IPN), has recruited its three-millionth player and released figures showing substantial growth in 2008.

IPN says active daily players were up 14 percent, maximum concurrent players were up 22 percent, and daily registrations were up 28 percent during 2008.

Earlier this year Boss Media took over the remaining CryptoLogic network poker sites including Extreme Poker, Classic Poker, DTD Poker, and Betjacks, as part of a strategic alliance with the software developer which will see CryptoLogic focus on casino games in the future.

Mike Sexton Stays at PartyPoker.com

PartyPoker.com has renewed its relationship with “ambassador of poker” Mike Sexton who will continue to act in several capacities for the online poker room including ambassador, host, consultant, and player.

“PartyPoker.com has always had a place in my heart and is special to me,” said Sexton. “I am delighted to pen a new deal, it means so much to me. I am looking forward to representing them in events around the world and meeting the online package winners at the WSOP. I also relish my role as a consultant advising on poker room matters.”

Swedish Poker Boom Subsides, Says Svenska Spel

Svenska Spel, the state-run online poker operator in Sweden, reported a drop in poker revenue of 3.6 percent to SEK372 million (€34.6 million) in 2008 from SEK385 million in 2007.

The company said in its annual report, “Both Svenskaspel.se and the casinos offer poker games. The casinos arranged a number of popular poker tournaments in 2008 and poker interest in casinos continues to increase. The Internet boom of the four last years has subsided, but the game is still popular on svenskaspel.se.”

While Svenska Spel only publishes figures for online and live poker played through its businesses, it is known that significant revenue is generated by players playing with online poker operators based outside the country.

Online Poker Addiction Risks “Moderate”

A new study shows the widespread availability of online gambling has not led to an increase in the number of people becoming addicted to gambling.

The study, undertaken by the Harvard Medical School Division on Addictions, observed 3,445 poker players on Austrian site Bwin.com since February 2005 and was designed to thoroughly investigate whether online gambling was “a potential object of addictive behavior”.

However, the study found that the availability of online gambling is not correlated to gambling addiction.

According to thecrimson.com, the study “actually found that gamblers who visit gaming websites are more likely to self-regulate their betting behavior based on their pattern of wins and losses.”

The study also showed that the percentage of problem gamblers remained largely unchanged since the 1970s in line 0.6 percent of the U.S. population.

Andrew M. Woods, the executive director of Harvard Law School’s Global Poker Strategic Thinking Society, was unsurprised by the findings the paper reported, saying poker is less like gambling and more like “risk assessment”.

“There is no house in poker, so no one is guaranteed to win,” he said. “Poker exercises your ability to make good decisions.”

Online Poker Will Benefit From Change in 60-Year-Old Regime

Denmark is set to abolish its 60-year-old state-run gambling monopoly Dansk Spil, according to the Copenhagen Post.

The move will see licences granted to online poker, sports betting, and casino games operators. Companies wishing to operate in the jurisdiction will pay for licences and those who are not granted licences will not be able to advertise their services in the country.

“It will be nice to get some clarity on the issue after so many years of uncertainty,” managing director of Danske Spil, H.C. Madsen, told the paper. “We’ll also be able to offer casino gambling and poker now, which we couldn’t do before.”

In 2008 almost 11 billion kroner (€1.25 billion) was spent on gambling in the country, with the state profiting to the tune of 2.8 billion kroner (€317 million).