Global Policy Review - August
Each month IGN delivers the latest in international policy developments that could affect the I-gaming business. From dealings between nations to actions taken by international organizations, it's a digest of the latest in global policy.
US Prohibition Ball in Senate's Court
The House of Representatives approved HR 4411, the Internet Gambling Prohibition and Enforcement Act, by a vote of 317-93 on July 11. The bill, which merges the two separate online gambling prohibition bills championed by Reps. Bob Goodlatte, R-Va., and James Leach, R-Iowa, was the focus of three hours of debate before the vote over its exemptions for certain types of gambling over the Internet, such as race betting. Rep. Shelley Berkley, D-Nev., introduced an amendment to eliminate the exemptions, thereby establishing a complete ban on all Internet gambling-related activities. Berkley said HR 4411 is hypocritical because it does not ban all forms of online gambling, and her amendment would have made remote horse race wagering illegal as well. The amendment failed by a vote of 111-297. The bill has gone to the Senate, where efforts to pass it are spearheaded by Sen. Jon Kyl, R-Ariz. Two aides to Senate Majority Leader Bill Frist have said that it will not receive a vote before the Senate's August 4 recess.
British Clampdown on Poker
The U.K. Gambling Commission in early July sent written notification to police forces, local authorities and licensing trade associations throughout England as part of a clampdown on illegal poker games. According to the 1968 Gaming Act, gambling for money in licensed premises, such as pubs, is highly restricted. A permit is required to do so, and the games cannot be used as an incentive for patrons to visit pubs. The commission has published new guidelines on the rules, however, and advises pub and members club owners to discourage the establishment or organization of games outside licensed casinos or card rooms. "Poker is a great game," Gambling Commission Director of Operations Phill Brear said, "but properly regulated operators, such as casinos, employ trained and licensed staff as dealers and supervisors, they use CCTV to monitor play, they offer protections to players and they are closely monitored and supervised by the Gambling Commission. Poker in pubs and similar arrangements offer none of these safeguards, and we will work with the authorities to clamp down on illegal games."
Push for Casinos in Japan
Japan's MPs could be preparing to lift the country's ban on casinos and pave the way for the creation of a Japanese super-casino. The pro-casino lobby said in June that Japan is losing out to other Asian countries, such as South Korea and China, in the race to secure extra tourist dollars. Singapore recently lifted its ban on casinos, and Thailand is expected to follow suit to challenge Macau's reputation as the Las Vegas of the Far East. The Liberal Democratic Party's subcommittee on casino entertainment had hoped to table a bill to legalize casinos during the current parliamentary session, but last-minute changes and a packed legislative schedule mean they will probably have to wait until next year. More than 25 local government leaders also support lifting the ban. Among supporters is Tokyo Gov. Shintaro Ishihara, who believes that casinos would make Tokyo better for everyone, creating about 10,000 new jobs and revitalizing the Odaiba waterfront district, which is the preferred site for the capital's first casino. The Liberal Democratic Party in January created a subcommittee to study a legal structure and policy for casino entertainment. Six prefectures petitioned the central government to lift the ban.
Japan's gaming advisor recently said the country is in talks with global casino operators, including Las Vegas Sands and Harrah's Entertainment, to operate the nation's first casino. The government may initially issue two to three casino licenses (for gaming resorts) that would each cost slightly less than Sands' $3 billion investment in Singapore, he said.
Italy Considers Liberalization and Deregulation
A law decree aimed at cutting Italy's deficit by 11.2 euros includes measures calling for liberalization and deregulation of the country's gaming and betting industries. The legislation will affect interactive P2P remote fixed-odds betting and real-money remote skill gaming. Businesses based in the EU, EFTA and elsewhere will be permitted to operate, provided they comply with the reliability requirements to be set by AAMS (the Independent Administration of the Legal Monopolies). The government additionally plans to launch a license tender for a total of no less than 7,000 new land-based gaming shops and kiosks. Regulation of remote gaming services will be subject to payment to AAMS of a fee of no less than 200,000 euros, and for skill games, the applicable rate is 3 percent of the wagered sum for bets other than horse racing and P2P betting, effective from Jan. 1, 2007. Article 39 of the law decree dictates that the changes must be implemented by no later than Dec. 31, 2006.
Antigua Resumes WTO Action against US
The World Trade Organization last week set up a panel at the request of the government of Antigua and Barbuda to investigate whether U.S. restrictions on Internet gambling comply with international trade rules. The request was made after discussions with the United States failed to yield a solution to a dispute over whether Washington should drop prohibitions on Americans placing bets in online casinos. The WTO Dispute Settlement Body last year gave the United States an April 3, 2006 deadline to bring its laws into WTO compliance by either allowing the cross-border trading of Internet gambling services or banning all U.S. companies from offering I-gaming services that foreign operators are not allowed to offer in the United States. When the deadline passed with no tangible action by the United States, Antigua cried foul and began pursuing remedies that allow WTO members to impose trade sanctions against other members who do not comply with a dispute ruling. The new panel will report on the case within 90 days. Either side can appeal the decision.
Prospects for Advertising I-Gaming in the UK
The UK Advertising Standards Authority is now allowing online gambling ads on British television, which means beginning next year, online casinos, sports books and poker rooms will be able to showcase their products to the entire British population. The ads must, however, comply with certain guidelines. They must not contain seduction, sexual success or enhanced attractiveness and should not be targeted at children or vulnerable risk groups. Further, ads showing behavior deemed socially irresponsible or that could lead to financial, social or emotional harm will be banned. All of the regulations are still being drafted by the Committee of Advertising Practice (CAP) and should be complete on Sept. 15. They will take effect in September 2007 when the Gambling Act comes into force.
Meanwhile, the CAP and the Broadcast Committee of Advertising Practice (BCAP) co-launched a public opinion campaign on July 18 seeking input on proposed advertising guidelines. Andrew Brown, the chairman for both committees, said the biggest responsibility is to ensure that gambling advertisements are socially responsible and avoid any harm or exploitation of children and/or vulnerable groups.