Global Policy Review - January

15 January 2003

Cyprus and Malta to Join EU

Cyprus and Malta, which are both home to online gaming businesses, were invited to join the European Union in mid December. Along with eight former Soviet countries, Cyprus and Malta will sign accession treaties this year and will join the EU in May 2004.

Michalis Papapetrou, a government spokesman for Cyprus, said that although his country is divided between Greek and Turkish Cypriots, it was the county's goal that both sections of the country be invited to join the EU. In actuality, only the Greek section will be made part of the union, unless the two groups agree to a United Nations peace plan before May 1, 2004.

New Gaming Taxes in Costa Rica

Costa Rica's Asemblea Nacional in mid December passed a new tax plan that will result in higher taxes for the gambling industry, both land-based and online.

The country, which is facing a budget deficit, is now imposing taxes on what it considers "sin"-related activities as well as luxury goods. The plan was approved by a vote of 45 to 5. The only objections came from the Movimento Libertaria political party.

The president of the assembly, Rolando Lacle, told the group that if a new tax plan was not passed soon, the country would have to start cutting services and programs, including roadway projects and salaries.

Tasmania Funds Problem Gaming Awareness Program

Tasmania is embarking on an AU$300,000 program to spread awareness about gambling addiction, to the applause of the state's gambling support groups.

Lis de Vries, the social service director of the Tasmanian Council, said one step that needs to be taken is a comprehensive study of the social and economic impact of gaming machines.

"The community awareness campaign is really important," she said, "but we need a whole range of strategies, we need the social and economic impact study and we need the board that's overseeing the community support levy to be independent, and really importantly we need an announcement on whether (the government) is going to extend pokies next year."

The awareness program is scheduled to begin in February. Health and Human Services Minister David Llewllyn said that while the state has the lowest per capita rate of gambling addiction in Australia, its impact is still felt.

"Gambling problems don't only affect the lives of problem gamblers," he said. "They also impact on family, friends and the community."

Gambling on the Rise in Korea

The Korea Times reported last month that the country's gambling industry has doubled itself since 2000.

Last year, the country's gaming industry saw trading at a volume of 11.3 trillion won, or about $9.4 billion, which is a 91 percent increase from 2000. In the year 2001, 8.6 trillion won was spent on gambling.

Korean Leisure Industry Consulting, a private research company, reports that Koreans between the ages of 15 and 64--about 34 million people--who participated in the economy spent an average of 320,000 won on gambling in the last year.