Global Policy Review - May

24 May 2007
Brazilian Police Fight Against Illegal Gambling

The Brazilian Government has staged a number of raids throughout 2007 that have resulted in the seizure of illegal slot machines, cash, TV sets and computers along with the closure of dozens of bingo halls, according to the Xhinua News Agency. The raids have been collectively dubbed as Operation Hurricane, but are known by the moniker of “Game Over” in some individual states. The raids were launched on April 13, and have led to numerous arrests for internal corruption, attempted bribery, and maintenance of illicit operations by Brazilian gambling lords and their associates.

Lottery Input leads to Polish Gambling Controversy

Poland's state lottery's influence over a proposed amendment to the country's upcoming gambling bill has led to a great deal of public controversy, according to a Polish news agency. Although representatives of Finance Minister Zyta Gilowska were intended to have the most say in drafting the bill, most of the current content seems to have come from representatives of Totalizator Sportowy (TS), the state-owned lottery. Reports have alleged that TS put forth an amendment to the bill that would levy a surcharge on private gambling businesses not to benefit the stated cause of stadium construction, but instead to eliminate TS's private rivals. Sources have alleged that Chair of the Permanent Committee of the Cabinet Przemyslaw Gosiewski was given specific instructions as to such an arrangement by the Prime Minister himself—an allegation sure to lead to public discord.

Sweden to Maintain Gambling Monopoly

Revenue brought in by Svenska Spel has reached such a high level (€260 million in the first quarter of this year alone, part of which is taken by the state) that the state has determined that the conglomerate will be able to maintain its monopoly on gambling within national borders, reports Swedish economic journal Veckans Affärer. Furthermore, the Swedish Finance Department is drafting legislation that would open the gambling market up to private third parties through a licensing system, but it is unlikely that any operators would choose to accept the harsh conditions imposed by the state on said arrangement.

In order to comply with an opinion by the European Commission, however, it is likely that the government of Sweden will force Svenska Spel to reduce both their marketing campaigns and their efforts in developing new games for their facilities. Noncompliance would result in a referral to the European Court of Justice.

Opinions Differ on Queensland Lottery Sale

Although the Queensland Government recently completed the sale of its Golden Casket Lottery Corp (GCLC) to Tattersall's for $530 million, some analysts believe the state could have received a more attractive offer had it opened the sale to competitive bidding from international lotteries such as Intralot. The government, on the other hand, has stated that it was not looking overseas and was instead seeking a company with Australian experience in order to ensure a sound market placement and maintain certain intellectual trademarks. Spokespeople for the lottery itself believe that an off shore sale would have stunted the drive towards a national lottery system and removed jobs from the Queensland office. The $530 million pricetag reflects a "very good price from the state's perspective" and keeps Tattersall's competitive in the light of other recent lottery sales such as Tabcorp's acquisition of TAB and Jupiters in 2004.

Reorganization Imminent in Jamaican Gaming Commission

The Jamaican Finance Ministry will be reorganizing the operations of the Betting Gaming & Lotteries Commission over the next three to six months. This shift is reportedly being done in order to both help Jamaica meet the monitoring requirements of the gaming industry and to help increase revenues to $315 million with a $3 million surplus.