Remote Gaming (Amendment) Regulations, 2011

L.N. 90 of 2011

LOTTERIES AND OTHER GAMES ACT

(CAP. 438)

Remote Gaming (Amendment) Regulations, 2011

IN exercise of the powers conferred by article 78 of the

Lotteries and other Games Act, the Minister of Finance, the Economy

and Investment, after consultation with the Lotteries and Gaming

Authority, has made the following regulations:-

(1) The title of these regulations is the Remote Gaming Citation and

(Amendment) Regulations, 2011, and these regulations shall be read commencement.

and construed as one with the Remote Gaming Regulations, S.L. 438.04

hereinafter referred to as "the principal regulations".

(2) These regulations shall be deemed to have come into force

as follows

(a)

regulations 6 and 9 hereof on the 1st January, 2008;

and

(b)

all other remaining regulations on the 1st March,

2011.

In regulation 2 of the principal regulations, the definition Amends

regulation 2 of

"game of chance" shall be deleted.

the principal

regulations.

Regulation 3 of the principal regulations shall be amended Amends

regulation 3 of

as follows

the principal

regulations.

(a)

for the words "issued by the Authority." there shall

be substituted the words "issued by the Authority or is in

possession of an equivalent authorisation by the government or

competent authority of an EEA Member State, or any other

jurisdiction approved by the Authority."; and

(b) for the words "against the Act." there shall be

substituted the words "against the Act:", and immediately

thereafter there shall be added the following provisos

"Provided that the Authority may impose such

proportionate requirements and conditions, in conformity

with European Union law, as it may deem necessary in

fulfillment of its functions under the Act, or as the Minister

may direct the Authority by virtue of article 12 of the Act,

in respect of games authorised under any law enacted by a

Member State of the European Union or a Member State of

the European Economic Area or any other jurisdiction or

territory approved by the Authority

Provided further that such requirements and

conditions shall be compatible with international

obligations.".

For regulation 6 of the principal regulations there shall be

substituted the following

" Fees.

(1) The Authority shall not process

any application under these regulations or issue

any licence being applied for, unless the relevant

non-refundable application fee is paid to the

Authority as set down in the Second Schedule.

(2) Without prejudice to any other

provision of these regulations, the licensee shall

pay to the Authority the relevant licence fees,

renewal fees, approval fees and any other

administrative fees as laid down in the Second

Schedule.

(3) The Authority may, when objectively

reasonable, require applicants or licensees to pay

the actual costs and any other expenses incurred

in conducting analyses, inspections and

investigations into their backgrounds, suitability

and qualifications to obtain and maintain a

licence.".

5. In paragraph (e) of sub-regulation (4) of regulation 11 of

the principal regulations, immediately after the words "remote

gaming operation" there shall be added the words "or a commission".

6. In paragraph (b) of sub-regulation (2) of regulation 13 of

the principal regulations the words "or remote gaming tax" shall be

For regulation 57 of the principal regulations there shall be

substituted the following

" Gaming

57. A licensee shall pay to the Authority

tax.

the rate of tax established in the Fourth

Schedule.".

In paragraph (b) of the First Schedule to the principal Amends the

regulations, the words "or an online betting exchange office licence" First

to the principal

regulations.

shall be deleted.

For the Second Schedule to the principal regulations, there Substitutes the

Second

shall be substituted the following

Schedule to the

principal

regulations.

"Second Schedule

Regulation 6

Application and Licence Fees

1. Together with the submission of an application for the

issuing of a remote gaming licence, an applicant shall pay to the

Authority a fee of two thousand and three hundred and thirty euro

(€2,330).

2. A licence fee of eight thousand and five hundred euro

(€8,500) shall be paid by the licensee to the Authority, yearly in

advance

Provided that the first licence fee shall be paid immediately

before the licence is issued by the Authority.

3. Upon application for the renewal of a remote gaming

licence, a renewal fee of one thousand and five hundred euro (€1,500)

shall be paid by the licensee to the Authority.

4. Together with any request or application made by a

licensee for an approval by the Authority in terms of regulation 11(1)

and (3), the licensee shall pay to the Authority a fee of one thousand

and five hundred euro (€1,500).

5. Together with any request or application made by a

licensee for an approval by the Authority in terms of regulation

11(4)(e), the licensee shall pay to the Authority

(a)

a fee of seventy euro (€70) for simple agreements,

which shall be thereafter paid to the Authority annually unless

the Authority is notified that the contractual arrangement has

been terminated

Provided that in no case shall any licensee pay a sum

exceeding thirty thousand euro (€30,000) in terms of this

paragraph.

(b)

an

administrative

hourly

fee

for

complex

agreements, which shall be pre-determined and communicated

to the licensee before the commencement of the approval

process

Provided that the Authority may require all applicants for

such approvals to pay the administrative costs incurred in order

to have such agreements reviewed.".

For the Fourth Schedule to the principal regulations there

shall be substituted the following

"Fourth Schedule

Regulation 57

Taxation

1. A licensee, duly licensed by the Lotteries and Gaming

Authority, shall pay to the Authority on behalf of the Government the

following rate of taxation

(a)

A Class 1 licensee, shall pay a sum equivalent to

four thousand and six hundred and sixty euro (€4,660) for the

first six months and subsequently seven thousand euro (€7,000)

per month for the entire duration of the licence period

Provided that a Class 1 Licensee operating on a hosting

platform in possession of a Class 4 Remote Gaming licence,

shall pay one thousand and two hundred euro (€1,200) per

month for the entire duration of the licence.

(b) A Class 2 licensee, including a Class 2 licensee

operating on a hosting platform in possession of a class 4

remote gaming licence, shall pay a sum equivalent to half of one

per centum (0.5%) of the gross amount of bets accepted in

remote betting operations.

(c)

A Class 3 licensee, including a Class 3 licensee

operating on a hosting platform in possession of a Class 4

remote gaming licence, shall pay a sum equivalent to five per

centum (5%) of real income

Provided that the Authority, in accordance with article 76A

of the Act, shall have the power to issue directives as it may

deem necessary in respect of the computation of real income

Provided further that the licensee shall not be entitled to

any relief, reduction, credit or set-off of any kind in respect of

such tax.

(d) A Class 4 licensee, hosting and managing other

remote gaming operators, shall pay -

(i)

no tax for the first six months;

(ii) two thousand and three hundred and thirty

euro (€2,330) per month for the subsequent six months;

and

(iii) four thousand and six hundred and sixty euro

(€4,660) per month thereafter for the entire duration of the

licence

Provided that without prejudice to the provisions of

regulation 3 of these regulations, the Class 4 licensee shall also

pay a monthly tax of one thousand and one hundred and sixty-

five euro (€1,165), for every operator which is not in possession

of the relevant Class 1, Class 2 or Class 3 licence in terms of

these regulations, being hosted and managed by the Class 4

licensee on its platform.

2. In all cases the tax due from each licensee shall be paid

monthly by not later than the twentieth (20th) day of the following

month.

3. In all cases the maximum tax payable by one licensee in

respect of any one remote gaming licence, per annum, shall not

exceed four hundred and sixty-six thousand euro (€466,000).

4. The gaming tax established by these regulations for every

remote gaming licence issued by the Lotteries and Gaming Authority

shall become due from the date when the gaming operation has

commenced, unless otherwise specified by the Authority.

5. The Authority may issue directives regulating the granting

of reduction, credit, set-off or other relief in respect of gaming tax,

which shall be granted either on a unilateral basis or pursuant to

bilateral or multilateral treaties, agreements, memoranda of

understanding or other arrangements entered into with any foreign

government or any local or foreign authority or government agency.".

B

€0.56