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Julian Harris, Partner, Harris Hagan harris@harrishagan. com
Although the Greek market is a profitable one for many online operators, all forms of online gambling are in fact currently prohibited in Greece. In the midst of the financial crisis, a draft bill covering the regulation of online gambling was rushed through by the Greek Government in January 2011 and then put before the European Commission. Although the Commission came back with a detailed opinion and suggestions on the draft bill, it is rumoured that the Greek Government may now seek to bring the law into force shortly without incorporating these suggestions. This may lead to infringement proceedings at European level, further delaying any online licences actually being issued.
The proposed tax rate is 6% of turnover and, being even higher than France’s turnover tax rates, it is unlikely that a Greek licence would be particularly attractive to operators. It may be that the tax rate is amended before the licensing system goes live, and other details of how the system will operate, such as requirements as to the location of servers, remain to be decided. It is proposed that a limited number of licences will be available to the highest bidders.
infoRmation panel ADULT POPULATION: .............................9 million HOME BROADBAND: .........................46 per cent
CURRENT LEGISLATION: ..................................... Law 3037/2002
REMOTE GAMING PERMITTED (DRAFT): ................ Casinos, sports betting, horse betting, fixed odds betting. Excludes spread betting
PROPOSED ONLINE GAMING TAX: ........................ 30 per cent on GGR
SIZE OF MARKET: ................................................ No limits on the number of licences
LICENCES: .......................................................... Licences valid for up to five years. No information as to the costs of obtaining a licence, although to participate in the tender procedure potential licensees must have a minimum paid up share capital of ¤200,000 and guarantee letter of credit demand of ¤100,000 from a bank established in Greece.
TOTAL GAMBLING TURNOVER: ............................. Approximately ¤1.3bn (2009)
TOTAL ONLINE GGR: Between ¤210m and ¤260m a year (2010)
PROPOSED REGULATORY BODY: .......................... Gaming Supervision and Control Commission (GSCC)
Tel: ........................................ to be established Email: .................................... to be established Website: ................................ to be established
supervise games of chance called the Gaming Supervision and Control Commission (GSCC).
• A highest international bidder tender procedure. Duration of the licence is for 5 years.
• Games of chance allowed include: Casinos, sports betting, horse betting, fixed odds betting. Spread betting and bets on financial instruments traded on a regulated market operating in the Greece are prohibited. As a result of this ban, Betfair has recently filed a complaint with the European Commission arguing that the prohibition is contrary to European law and have put pressure on Greek authorities to amend this part of the draft.
• Prospective consumers must be 21 or over and are required to obtain an individual player card before taking part in gaming. Details needed include the player’s age, tax registration number and if they require any player protection restrictions.
• For prospective licensees to participate in the tender procedure, they must have a minimum paid up share capital of €200,000 and guarantee letter of credit demand of €100,000 from a bank established in Greece. This provision may be contrary to European law, notably freedom of establishment.
• 30 per cent tax on Gross Gaming Revenue for all types of games offered.
• During a six-month transitional period, existing EU operators looking to soon obtain a Greek licence would pay a 30 per cent tax on Gross Gaming Revenue and 10 per cent tax on players’ winnings. All forms of advertising, such as online and offline including TV are permitted by prospective licensees in anticipation of licences being issued soon. This period is to commence after the establishment of the new Control Committee.
• Websites must have a ‘dot gr’ domain name. • Minimum payback rate is 80 per cent.
• Servers must be located within Greek territory and gambling transactions would be processed exclusively from Greece. This provision may also be contrary to European law.
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eaRned douBle the eu aveRaGe of GGR
as a peRcentaGe of its Gdp.
• Licensees must have to save online gambling data in real time on hardware located in Greece for a minimum of five years.
• Licensees are obliged to have their registered head offices or be permanently established in Greece.
• Payments blocking measures are proposed, as well as a ‘black list’ of operators are to be established by the GSCC. Financial institutions established in the country would be prohibited from making gambling payments to accounts held by unlicensed gaming providers, including those in the ‘black list’. A fine equal to ten times the sum unlawfully wired will be imposed on a financial institution, with a minimum fine of €500.
• No proposed ‘black period’ where applicants would have to shut down operations pending the approval of a licence. This amendment in the most recent draft law has been received warmly by prospective operators.
the maRket sectoRs In 2008, Greece earned double the EU average of GGR as a percentage of GDP at 1.38 per cent and this ‘cash-cow’ is set to rise with regulation. Much of this revenue has come from gaming giant monopoly, OPAP (Hellenic
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