Global Policy Review - August 2004

28 July 2004

Internet Usage and Rising in China; So is Spam

A report from China's Internet Network Information Center shows that there are now 87 million Internet users in the country, 27.9 percent more than one year ago. The number of broadband subscribers has increased to 31.1 million, an increase of 78.7 percent form last year, and the number of China-based Web sites is also on the rise, now at 627,000, up 32.2 percent over last year. And of course, spam is increasing too, with users receiving an average of 9.2 spams a week.

In early July, Zhou Yongkang, secretariat of the Communist Party of China Central Committee, proposed a nationwide campaign to stop the spread of pornography over the Internet. Zhou suggested implementing severe punishments for the operators of illegal pornographic sites, destroying large numbers of pornographic sites, and developing methods to prevent online pornography, gambling, and fraud. Zhou said pornography pollutes the social environment and harms the physical and psychological health of young people.

SMS Contests too Much Like Gambling

The Communications and Multimedia Consumer Forum of Malaysia (CFM) is in the process of drafting a set of guidelines for organizers of SMS (short message service) text messaging contests. SMS contests have recently become very popular in the country, with nearly every TV and radio station holding some sort of contest, most of which involve sending the answer to simple questions. The answers are so easy that everyone knows them, so users send huge numbers of responses to gain an edge on the competition, even though it costs about $0.18 to send one message. One participant spent $5,300 (more than the cost of the prize) to send 29,000 messages to a contest. Last week Information Minister Datuk Paduka Abdul Kadir Sheih Fadzir ordered all radio and television networks to immediately stop airing all contests where prizes are based on the number of messages sent. In two months the CFM should complete its guidelines, which are likely to stipulate that SMS-based contests must have elements of skill rather than chance, which is constituted as gambling and therefore unfair to consumers.

Last Year's Gambling Act Cutting Down Machines

The number of gaming machines continues to decline in New Zealand as a result of the Gambling Act passed last September. According to the Department of Internal Affairs, the number of machines fell 2,724 to 22,497 in the year ended June 2004. The number of venues with gaming machines has fallen at an average rate of 14 per month since September. The new act gives city and district councils the power to prevent new venues or even close some down.

Australia and Her States

Australia has signed new bilateral anti-money laundering agreements with Argentina, Columbia, the Cook Islands, Estonia, Ireland, Slovakia, Spain and Thailand to exchange financial intelligence on money laundering matters with one another.

While Federal Community Services Minister Kay Patterson criticizes state and territory governments for spending less than 0.5 percent of their gambling revenue on problem gambling programs, Northern Territory's Gaming and Racing Minister Syd Sterling defends his state's contribution to problem gamblers. According to Sterling, NT's figure is artificially low because bookmakers like Centrebet that reside there receive 95 percent of their revenue interstate. Sterling has stated, "We're only about 0.66 percent of total revenue into specific amelioration programs. If you're looking at it from a gaming machine point of view, community gaming machines which more or less would be being used by Territorians, we're up to 1.6 percent."

Patterson earlier in the month announced that the National Framework on Problem Gambling focusing on four key areas--public awareness and training; responsible gambling environments; counseling and support services; and national data collection and evaluation--had been adopted by a ministerial council in Melbourne. The approach has the support of the Australian Casino Association and Clubs Australia and New Zealand.

Victoria's gaming minister, John Pandazopoulos, announced that the state's pokie machine, wagering and lottery licenses are to come under review. Tabcorp and Tattersalls currently possess the only licenses for pokie machines outside of Crown casino and Club Keno until 2012. Tabcorp also holds the exclusive wagering license (expiring in 2012) while Tattersalls holds the exclusive lottery license (expiring in 2007). The lottery license review begins this month, and decisions about future industry structure will be made in 2005. The gaming and wagering license reviews will begin in late 2005. The InterChurch Gambling Taskforce, the Community Action on Pokie Problems, and the Victorian Local Governance Association have endorsed the review.

The ACT Gambling and Racing Commission is in the second stage of a community consultation process begun in 2002 that will overhaul the rules for sports betting. The completion of the new rules is expected in a few months, and many anticipate that traditional bookmakers will be prohibited from taking bets on credit. The rules governing Internet betting, however, will not be changed.

UN Organizes Leaders To Discuss Spam Solutions

The International Telecommunications Union (ITU), an agency of the United Nations, two weeks ago hosted a meeting to discuss spam regulation with delegates from 60 countries as well as international organizations such as the Council or Europe and the World Trade Organization in attendance. The ITU presented examples of anti-spam legislation countries could adopt to make cross-border cooperation easier.