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Aug 24, 2018  

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Quebec Superior Court Strikes Down Unconstitutional Online Gambling ISP-Blocking Scheme

ISP-blocking plan scuttled by Quebec Supreme Court In July 2017, the Canadian Wireless Telecommunications Association (CWTA) sued the Quebec government and ISP-blocking was put on hold until the case was resolved. In a judgment last week, Justice Pierre Nollet agreed with the industry body, ruling that Bill 74 was a violation of the Telecommunications Act which expressly bestows jurisdiction over telecoms providers on the federal Canadian Radio-television and Telecommunications Commission alone. The act also states that “a Canadian carrier shall not control the content or influence the meaning or purpose of telecommunications carried by it for the public.” Nollet also found the government’s justification for Bill 74 – that its aim was to protect consumers from unlicensed online gambling sites – to be disingenuous Its pith and substance is to prevent online gambling not set up and operated by the province from being ‘communicated’ by ISPs and not the protection of consumers or their health,” he wrote. Quebec’s minister of finance, Carlos Leitão, has estimated that ISP-blocking could add up to CA$27 million ($20 million) in revenues per year for Loto Quebec’s Espacejeux, the only online gambling site authorized by the government. CWTA’s manager of government relations, Tiéoulé Traoré, praised the judge’s decision this week.

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Svenska Spel struggles despite online, mobile gambling gains

svenska-spel-online-gambling-growth Svenska Spel struggles despite online, mobile gambling gains Sweden’s erstwhile gambling monopoly Svenska Spel saw its revenue shrink as it prepares for new competition in the country’s liberalized online market. On Thursday, the state-owned Svenska Spel reported revenue of SEK2.08b (US$234m) in the three months ending June 30, a nearly 4% decline from the same period last year. Operating profit was down 11.4% to SEK975m as margins fell two points to 19.1%. Svenska Spel’s digital division did its best to shoulder the burden with revenue of SEK621m, up one-fifth from Q2 2017 and accounting for 30% of the overall revenue pie. Mobile devices accounted for two-thirds of this digital slice, and mobile growth outpaced the overall digital number, rising 42% year-on-year. Svenska Spel’s mainstay lottery revenue was flat, while the land-based Casino Cosmopol and Vegas divisions had a rougher ride. The Vegas video lottery terminal business reporting revenue down by one-quarter as more and more customers shift their action online. Svenska Spel’s poor overall performance stands in stark contrast to local rival Betsson, who today announced a return to profitability thanks to strong World Cup betting action that appears to have passed Svenska Spel by. Investors might be questioning Svenska Spel’s future because, as of August 1, Sweden will begin accepting online gambling license applications from international operators ahead of the liberalized market’s official reboot on January 1, 2019. Svenska Spel, which has long chafed at its inability to offer an online casino to match its internationally licensed competitors, has been taking steps to bolster its digital offering. The company has inked an online casino technology deal with Scientific Games’ SG Digital division, and recently announced a live casino tie-up with Evolution Gaming.

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