Draft of Swiss Institute Report on EU Gambling Set for Release This Month
The Swiss Institute of Comparative Law is nearing completion of its draft report on gambling services in the EU internal market. The report has been conducted for the European Commission, and it entails an in-depth analysis of the economics of gambling in the European internal market as well as an analysis of all the existing laws and regulations that govern gambling in the various member states. The draft report will be available on April 24th on the Swiss Institute of Comparative Law's website, and on May 8th parties with an interest in the European gambling industry will be given the opportunity to meet in Geneva to comment on the draft report and provide additional information for inclusion in the final report, which will be published in June.
New Russian Gambling Ad Law is Mum on Internet
A law passed in Russia last month instituted new set of more restrictive advertising rules for the gambling industry. The rules do not mention whether or not gambling ads may appear on certain types of Internet sites, let alone on the Internet in general. The rules do provide a list of locations and media types in which gambling products and services may be advertised, but the Internet is not listed among them. Yandex, the country's most popular search engine, has taken the safe road by removing gambling banners and pay-per-click advertisements, but it has left all gambling-related search listings in tact because it does not view them as advertisements. Meanwhile, Begun.ru, which provides the advertising streams for search engine Rambler, reportedly has no plans to withdraw pay-per-click gambling advertisements. It is also rumored that Rambler has entered into a relationship to run a poker site.
Announcement of UK Gaming Tax Rate Deferred Until 2007
UK Chancellor Gordon Brown has decided to defer the announcement of Britain's remote gaming tax rate until it can be implemented into the government's 2007 budget so that the tax system can reflect the detailed regulations that are being developed by the Gambling Commission. The delay will also provide more time for the remote gambling industry to work with the Treasury to find a viable tax regime.
Nick Rust, chairman of the Remote Gaming Association, stated, "Largely because of its international nature, the taxation of the remote gambling industry raises a number of difficult issues for the Government. It is encouraging that this has not discouraged the Treasury from having a thorough review of the options and we look forward to working with them over the coming months. It may be that we will not find a solution that works for all sides, but it will not be for the want of trying on our part."
Over the past several months members of the RGA have held meetings with the Treasury about the tax rate and have commissioned two pieces of work by consultancy group Europe Economics in order to produce an independent analysis of the market. Both reports are available on the RGA's website.
Greece's OPAP Plans to Expand
OPAP has announced plans to expand both at home in Greece and abroad. The government-operated company would like to install 300 keno terminals in 100 ships by the summer of 2007, to expand its network to highway stations and airports, and to increase the playing hours for keno during summer months. OPAP would also like to acquire more companies in the gaming sector both at home and abroad as well as acquire an advertising company and a printing company for its coupons. It also plans to create a southeastern European Lotto with participation from 3-4 countries, including Turkey.
EC Puts 7 Member States on Notice for Upholding Monopolies
The European Commission has sent letters of formal notice to the governments of Germany, Italy, the Netherlands, Sweden, Denmark, Finland and Hungary, informing them that they must open their markets to private online gambling operators or face legal action. Such action has been anticipated for several months. The countries have received the letters because they maintain state-owned gambling monopolies and allow the promotion of gambling services while at the same time prohibiting access to their markets by foreign gambling providers. Such a policy is thought by private operators to violate EU free trade laws.
Swedish Gov. Launches Poker; Ladbrokes to Challenge
Svenska Spel, the Swedish government-operated lottery and gaming company, launched the world's first government-operated online poker room at the end on March 30th with assistance from Swedish gaming software provider Boss Media. With the popularity of poker continuing to climb across the globe, the Swedish government hopes that launching its own poker product will help redirect some of the money spent by Swedish gamblers on foreign poker providers back into the domestic economy.
British private gambling operator Ladbrokes, which is no stranger to challenging state gambling monopolies in Europe, has already applied to the Swedish government for a license to operate its online poker service in the country. Assuming that Sweden rejects Ladbrokes' application, the company would likely launch a legal challenge on the grounds that Sweden's poker monopoly is a violation of EU free trade laws.
UK Abandons Sale of Tote to Racing Trust for Half Price
The British government has been unsuccessful in convincing the European Commission that selling the Tote to the Racing Trust would not constitute an abuse of state aid rules. Although the Commission has not yet published a formal decision on the matter, a spokesperson for the UK's Department of Culture, Media and Sport told the Guardian that talks had ended and that "they have not accepted our argument that it would not be state aid or, if it was, would be permitted state aid on cultural or heritage grounds." The Commission first began investigating the matter last June following lobbying efforts from private British bookmakers who would like to bid for Tote betting shops. The UK government still intends to sell the Tote, but it seems that its preferred plan of selling it at half-price to the racing trust of horse owners groups and track associations is no longer an option.
Victoria Supreme Court Declares Spread Betting Legal
In Victoria, Australia spread betting products and services have been declared legal investments following a ruling by state Supreme Court Justice Bernard Bongiorno stating that the financial services license obtained by IG Australia from the Australian Securities and Investments Commission makes the company's products legal. Justice Bongiorno ruled that IG's license authorizes it to operate its business in accordance with the Commonwealth Corporations Act. The case originated from a defamation complaint filed by IG against the NSW Government after it declared IG's spread betting business illegal in August of 2002.
Rules For Handheld Mobile Gaming Devices Clarified in Nevada
The Nevada Gaming Commission has completed and passed regulations making its state the first in the U.S. to approve the use of handheld gambling devices in public areas of licensed casinos, such as at restaurants or poolside. Use of the devices in private areas such as hotel rooms will not be permitted however. The rules apply to a range of games, including bingo, poker, blackjack and horse race betting. The certification and integration of the rules will probably take several months, said Nevada Gaming Control Board Chairman Dennis Neilander. The legislation providing for the operation of remote handheld gambling devices was signed by Nevada's governor Kenny Guinn in June of 2005.
Italian Finance Act of 2006 Challenged in Court
A group of private European online gambling operators are filing a legal suit against the Italian government over its new Finance Act which blocks access to nearly 700 gambling Web sites. The suit has either just been filed or is about to be filed in the administrative court of Lazio, Italy.
Argentine Sports Betting Site Goes Online
Argentine gambling company Gammalink, with the aid of BetonSports.com, has launched online sportsbook FormoApuestas.com, which is licensed by the province of Formosa's Institute of Social Assistance, an organization that is responsible for authorizing casinos in the province. The site was immediately taken down by Gammalink after its initial launch due to complaints from the Argentine National Lottery, the Argentine Football Association and the Argentine national government. Those who oppose the site argue that Argentine law dictates that only the National Lottery may operate sports bets. The site eventually re-launched a week later, however, and a BetonSports spokesperson says that the Lottery, Football Association, and government have no grounds to bring legal action against the operation.
IMF Workshop in Antigua for Caribbean Regulators
Caribbean regulators of casinos and Internet gambling operations met in Antigua and Barbuda at the end of March for a week-long training workshop on combating money laundering. The workshop was presented by the International Monetary Fund in collaboration with the Financial Sector Reform and Strengthening Initiative and the Office of National Drug and Money Laundering Control Policy. The workshop addressed potential vulnerabilities to money laundering and reviewed new international standards for casinos, Internet gaming companies and regulators and also