Global Policy Review - June 2004
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.
Advocate General of EU Court Delivers Opinion in Database Rights Case
Advocate General Stix-Hackl of the European Court of Justice delivered her opinion this month on four cases involving the use and protection of databases. William Hill, the British Horseracing Board, Oy Veikkaus, Fixtures Marketing, Svenska Spel and OPAP (Organismos prognostikon agonon podosfairou) were each a party to at least one of the four cases. The opinion of the advocate general is that the maker of a database has a right to protection under the database directive, even when that database was created mainly for the purpose of organizing football fixtures or horse racing. Bookmakers' use of that data is therefore prohibited, even if they obtain the information from independent sources, such as newspapers or the Internet. The ruling is not final; it is only an opinion. The final judgment should be rendered by the European Court of Justice sometime next year. The court usually follows the opinion of the Advocate General.
New Zealand Raises Legal Age for Kiwi
In New Zealand the legal age to buy instant kiwi tickets has been raised from 16 to 18, and liability now lies on buyers and sellers if the law is not observed. The changes come as the result of provisions in the country's new Gambling Act of 2003, and the New Zealand Lotteries Commission is preparing to conduct an in-store customer awareness campaign and training for all retail staff to ensure enforcement of the law.
Chinese Government to Censor Games and Limit Cafes
The Chinese government has established a committee to review and censor any video and online games that threaten state security, damage the nation's glory or infringe on other's legitimate rights. Games that contain objectionable material, such as sex, violence, gambling and misrepresentations of gambling, are to be censored. All games currently on the market must receive the committee's approval by September, and all future releases must also obtain approval.
China's General Administration for Industry and Commerce has closed 16,000 Internet cafes in the last three months and suspended the registration of new ones in an attempt to create a "good environment for minors." Internet cafes and song and dance halls within 200 meters of schools are now forbidden.
Pokie Parlor Advertisement Law in Victoria
In July, a new law could come into effect in Victoria, Australia that would limit pokie parlors to using only one billboard to advertise each venue. The law would affect all of the state's 534 pubs and clubs that use pokie machines, but many are angry because one casino-- Crown Casino-- has been exempted from the rule because it advertises for a large complex, rather than just a pokie parlor.
Big Brother Watching Internet Use in Vietnam
Vietnam's Ministry of Culture and Information has ordered local governments across the communist country to closely monitor all information sent or read via the Internet. New regulations passed in March state that Internet cafe owners could be fined or jailed for allowing clients to download or send "bad information," which includes pornographic and subversive content. Cafe owners are also required to document what Web sites clients view. Over the last two years, the government has sentenced many dissidents to long prison terms for using the Internet to criticize the government and promote democracy.
Tax in Russia to be Paid at Location of Establishment
Legislators in Russia have passed a bill stating that taxpayers must pay gaming tax at the place where the gaming establishment is located. The gaming establishment must be registered with the tax agency where this establishment is located no later than two working days before this establishment is installed. Taxpayers must submit a tax declaration over the expired tax period to the tax agency where the establishment is registered.
South Korean Government Launches Clean Internet Campaign
In South Korea, where two out of three homes (or 11.5 million subscribers) have Internet subscriptions, the government has initiated a new campaign to promote a cleaner, healthier Internet and to combat Internet addiction, pornography, gambling and spam. The cooperative effort by the Ministry of Information and Communication, civic organizations, religious groups and media conglomerates will appoint pop culture idols as public ambassadors to promote the campaign during most of June. The government will also launch an education program to prevent sex-related Internet crimes and a new Web site that will research and treat Internet addiction.
Euro 2004 Impact on Asia
While online sports books in Europe are raking in the profits from what they believe will become the most wagered-upon sporting event so far, governments throughout Asia are taking measures to limit and prosecute betting on the Euro 2004.
In the days preceding the first games of the tournament, police in Kuala Lumpur said that they were aware of at least 15 illegal football betting Web sites that had been established by Hong Kong-based syndicates in preparation for the Euro 2004. Investigators stated that they would extinguish the betting sites through assistance from the National ICT Security Emergency Response Center. To prevent the sites from being tracked by authorities, computer programmers and webmasters had created mirror site that lead trackers to false locations, such as porn sites. Police speculate that syndicates have raised billions of Malaysian ringgit in the last year.
Police arrested nine people in Hong Kong last week and seized betting slips worth about $3.24 million in an illegal soccer betting ring. Law states that anyone found guilty of illegal bookmaking should serve a seven-year jail sentence and pay a $5 million fine.
The most dramatic events surrounding illegal soccer betting in Asia have taken place in Thailand, where residents are expected to gamble $800 million on the games. Before the start of the Euro 2004, the Thai government ordered access to 11 British gambling sites blocked. Authorities have even canceled cable television reception to prisons in the country for fears that prisoners will gamble on the tournament. Some inmates thought to be acting as bookmakers were transferred to other prisons.
News reports from the area state that 353 bettors were arrested in the police's initial raid during the very first game of the tournament. To circumvent their government's soccer betting prohibition, many Thais are traveling just across the border to Cambodia, where betting is legal, to the city of Poipet. Just before the clash between England and France last Sunday, over 10,000 Thais flocked to Poipet, where five casinos in the city offer soccer betting and several bookmakers have set up shop on the streets.