Blair, Jowell Criticized
Following the release of documents describing various contacts between the U.K. Department for Culture Media and Sport (DCMS) and American casino companies and investors, Prime Minister Tony Blair and Culture Secretary Tessa Jowell have been accused by the opposition party of misleading Parliament over the nature of discussions. In November 2004, Jowell denied accusations that the DCMS had held secret meetings to discuss what changes the American companies would prefer in the E.U. draft directive on money laundering. Jowell dismissed the accusations as ridiculous, and Blair issued statements in her defense. New documents released under the Freedom of Information Act reveal that the DCMS did indeed discuss the money laundering directive with the casinos and may have even been lobbying the Treasury to support a change whereby patrons who enter the casino would not have to present proof identity. The DCMS denies that it ever sought a change in the money laundering regulations.
Media Rights Appeals
Britain's Competition Appeal Tribunal has overturned the Office of Fair Trading's April 2004 decision against the British Horseracing Board and the Racecourse Association (RCA) by ruling that the 49 members of the RCA did not act
anti-competitively when they collectively sold their interactive betting and media rights to the original At The Races consortium for £307 million in May 2001. The tribunal's decision is particularly remarkable because it is the first time a judgment has been made in opposition to the Office of Fair Trading.
A British Court of Appeals last month upheld a European Court of Justice ruling from November 2004 that bookmaker William Hill is not obligated to pay the British Horseracing Board for the rights to provide horse racing information on its
Web site. The BHB has confirmed that it will not file another appeal.
Philippines President Faces Impeachment
Philippines President Gloria Arroyo is still taking a lot of political fire after many involved in the illegal numbers game jeuteng have alleged that Arroyo's husband and son have accepted kickbacks from the game operators. Her husband went into exile not long after allegations surfaced. Though new witnesses continue to emerge in the jeuteng case, it is no longer the main focus of Philippine politics because Arroyo now faces impeachment over allegations that she won the presidency by fixing the election.
Gaming Expansion in Malaysia
Malaysia's Finance Ministry has give gaming company Berjaya Sports Toto Bhd approval to launch a new numbers wagering game called I Perm by the end of September. Permission was first give to another company, Pan Malaysian Pools to launch the first legal numbers game last January. That game, 1 Box, has reportedly won business away from illegal games.
EU Action against Monopolies Postponed
E.U. Internal Market Commissioner Charlie McCreevy of Ireland hoped to launch copyright infringement proceedings on July 13 against E.U. member states Germany, the Netherlands, Sweden, Hungary, Italy, Greece and Finland for denying gambling operators that are located elsewhere in the European Union from accessing their markets, but a lack of consensus among European commissioners has prompted the EC to postpone doing so until September or October. McCreevy now says that action would only be taken following a debate between commissioners. According to Europe Information Services, about eight of the 25 other commissioners are opposed to removing national gambling monopolies in these states, including EC President Jose Manuel Barroso of Portugal, Development Commissioner Louis Michel of Belgium and Transport Commissioner Jacques Barrot of France.
Turkish Government Struggles to Block I-Gaming
Turkish newspaper Zaman reports that the Turkish government is again trying to find a way to stop the increasing rate of online gambling among its citizens. Justice and Development Party Deputy Ertugrul Yalcinbayir has submitted a motion for question to Interior Minister Abdulkadir Aksu, stating, "Thirty gambling sites are available for Turkish people. What means can prevent our people from gambling? What is the economic size of online and other kinds of gambling in Turkey? Does Turkey have the power to prevent online gambling? What kinds of precautions can be taken?" Because the Internet gambling sites that cater to the Turkish market are based in offshore jurisdictions where Internet gambling is legal, the Interior Ministry has been able to do little other than contact the 30 Internet sites and demand that their services not be made available to Turkish residents.
Progress in Tasmania for Betfair
Negotiations between British betting exchange Betfair and the government of Premier Paul Lennon have progressed to such an advanced stage that it has become necessary for Lennon to bring Tasmania's racing industry in on the discussions. Lennon and Betfair have already proposed an agreed upon tax framework that Betfair would adhere to if licensed to operate in the state. The company would deliver 25 percent of its gross profit from racing revenues to the horse racing industry while 15 percent of its commissions on other Australian sports would go to the state government, which would then distribute one-third of the take to the racing industry, 4
percent to the community service levy and the rest to the consolidated fund. The Tasmanian Thoroughbred Racing Council has requested a full business case into
the economic benefits of granting Betfair a license because it has estimated that the industry would only receive AU$200,000 per year, a figure that it deems inadequate. Lennon and Betfair believe the actual figure would be significantly larger.
Meanwhile, Betfair founder Edward Wray and other representatives of the betting exchange have met with independent Legislative Council members
to present their case. The support of at least three independent members of Parliament would be necessary for Lennon's government to pass the appropriate legislation.
French Monopoly Obtains Ban against Foreign Competitor
A Paris district court ruled in favor of France's monopoly bookmaker Paris Mutuel Urbain (PMU) by banning Malta-based online betting company ZEturf from taking bets on French horse races. PMU says the court's decision is based on an 1891 law
that forbids taking bets on French horse races without authorization from the French agriculture ministry. ZEturf plans to appeal the ruling.
Gambling Sites Win IP Case
A court in Paris ruled on July 8 against Real Madrid and its players who had sued European bookmakers Ladbrokes, BetandWin, Villa La Palma, Victor Chandler, Betfair, Sportingbet, William Hill and Mr Bookmaker for the alleged misuse of logos and player pictures on their Internet betting sites. The court decided that the betting companies do not use the names and photos of the club and its players for commercial purposes but for informational purposes with regards to the bets offered on sporting events. Real Madrid and its players also have similar cases pending in Belgium and Germany, but its hopes must surely be dashed, especially considering that the French legal system is generally regarded as one of the most protective environments for names and portrait rights.