Warning in South Africa
In South Africa, the Eastern Cape Gambling and Betting Board posted a notice in the Daily Dispatch newspaper warning readers that gambling with Internet casinos is illegal in the country. The federal government has discussed creating a system for regulating online casinos, but for the moment, gambling with online casinos remains illegal. It is legal, however, for punters to place bets with South Africa-licensed bookmakers over the Internet.
Changes in the UK
England's new gambling regulatory authority, the Gambling Commission, in early October began taking over some of the responsibilities that previously belonged to the Gaming Board. The commission, which will govern all forms of gambling besides the National Lottery, will have the legal power to levy fines or revoke licenses and to investigate and prosecute illegal gambling. New powers granted to the commission but previously unavailable to the Gaming Board are the ability to investigate cheating and prosecute cheaters, the ability to enforce gambling debts and the authority to regulate betting.
Additional changes include the abolition of a rule requiring casino patrons to wait at least 24 hours after registration before they may gamble and increasing the number of jackpot machines allowed to 20.
In mid October the Commission published a draft version of its Statement of Principles on Licensing and Regulation. A public consultation on the document, which lists the principles that the commission will apply as it assumes its full duties under the Gambling Act, will continue through the end of January 2006.
Phillip Brear, deputy chief constable of West Yorkshire Police, was recently appointed the new director of operations for the Gambling Commission. Brear is only the first of several senior appointments that will be made from now until the commission comes into full force in 2007.
Changes in Malta
Malta's Lotteries and Gaming Authority (LGA) has published draft amendments to its Remote Gaming Regulations 2004. The LGA says the amendments are part of its ongoing commitment to address the numerous changes that have arisen in the industry in just the last year as well as an attempt to create a streamlined, future-proof regime. The update aims to further broaden the concept of game-neutral and technology-neutral licensing and to facilitate the uptake of regulated intermediaries. A public consultation period on the amendments ends on Nov. 16, 2005.
Crackdown in Israel
Israeli newspaper Globes reports that State Prosecutor Eran Shendar and Israel Police Investigations Branch Chief Major General Dudi Cohen are launching a campaign against illegal online gambling. They have also reportedly agreed to take action against credit companies that provide transaction services for the illegal gambling Web sites. The Globes article sites a recent study that estimates online gambling in Israel to be a $125 million industry. A week after the authorities made public their plan to battle illegal online gambling, the Israeli branch of the University of Derby released a study which claims that the Israel Police and Ministry of Justice would have great difficulty in prohibiting unsupervised international money transfers from Israel for illegal online gambling through financial institutions.
Meanwhile, Mifal Hapayis, the operator of Israel's national lottery, has signed a contract with lotteries solutions provider Intralot that will result in the launch of Internet-based lottery services around the beginning of 2006. Built on Intralot's B-On gaming platform, Mifal Hapayis' new interactive system, "E-Pais," will offer five games--Chance, 777, Keno, 123 and Lotto--and will be available in Hebrew, English, Russian and Arabic. Mifal Hapayis' chairman, Shimon Katznelson, estimates that the online games should boost sales growth by 2 percent and has stated on several occasions that foreign online gambling sites have threatened the Israeli lottery's income. He estimates that Israelis spend about 1 billion shekels (US$223 million) on foreign online gambling and 13 billion shekels ($2.9 billion) on other forms of illegal gambling.
Casinos in Singapore
The government of Singapore has made a draft version of its Casino Control Bill available for public consultation. The bill would initially permit the establishment of two casino resorts, the total cost of which will be about $5 billion. Two new government bodies--the Casino Regulatory Authority and the National Council for Problem Gambling--would also be created by the legislation. About 12 companies are hoping to compete for the two casino projects. Four years ahead of the planned opening of the first casino, the Singapore government has already launched an online resource for problem gambling (www.ncpg.org.sg) that is the beginning of a public education campaign on gambling addiction.
Litigation in Europe
The European Betting Association has filed a complaint with the European Commission against Spain's lottery operator, Loterias y Apuestas del Estado. Similar to the association's pending cases against eight other European member states that uphold state-run betting monopolies, the latest complaint charges that the denial of private operators' ability to access the Spanish market violates EU free trade laws. The prospect of filing infringement proceedings against the member states has been on the EC agenda for a few months, but there is no verification as to whether commissioners discussed how to proceed with the matter at their latest meeting on Oct. 12. The eight countries targeted by the EBA, in addition to Spain, are France, Germany, the Netherlands, Sweden, Hungary, Italy, Greece and Finland.
Integrity in Victoria
A new law that took effect in Victoria on Oct. 12 makes it illegal for a wagering company to publish Victorian thoroughbred racing fields without the permission of Racing Victoria. The legislation, an amendment to the Racing and Gambling Acts, is an apparent attempt to ban British betting exchange Betfair, and its approval guidelines contain language citing "integrity" as an important consideration. There is no clear definition of what constitutes integrity or lack thereof, but Racing Victoria will have the task of evaluating which companies uphold the integrity of racing
Friction in the UN
In September, EU representative Martin Selmayr insisted at a United Nations meeting in Geneva that the United States should share the responsibility of monitoring the Internet with other governments around the world, but a senior U.S. official indicated that his country opposes the idea of giving up authority of the Internet. The U.S. has historically maintained the role of supervisor of the Internet since the Pentagon developed it and funded much of its early development. The oversight responsibility has been delegated to a private American organization with international board members, but the U.S. Commerce Department retains veto power offer the organizations decisions. The EU and other countries would like to institute a new cooperative model for monitoring the Internet now that it has become such a global resource. The issue of will no doubt receive much debate at November's World Summit on the Information Society in Tunisia.
Pokie Expansion in NSW
The state government of New South Wales has granted a new special gaming license to Club One, a joint venture between SANFL and Clubs SA, to build five new super pokie venues in Adelaide that will operate 40 machines each--seven more than any other existing pokie pub. The Club One venues will be modeled after the state's massive rugby league clubs. The new license permits the company to increase revenue by pooling low-turnover machines at smaller sporting clubs at the super venues.
Responsible Gambling in SA
A parliamentary committee in South Australia recently heard testimony from Stephen Howells, the state's Independent Gambling Authority, who stated that South Australia has serious underage gambling problems and that he has no confidence in current enforcement methods. Howells placed much of the blame on "a handful . . . of hoteliers and other operators who are, quite frankly, grossly irresponsible about this." South Australian ministers have agreed that their state will take the lead in developing a national code for financial institutions to limit ATM cash withdrawals to AU$200 a day at gaming venues. The government will consult banking representatives and other stakeholders in the matter before presenting a draft code at the next ministerial gambling council meeting in mid 2006.
Tax Hikes in Moscow
Authorities in Moscow plan to double the monthly tax on slot machines from US$131 to $262 per unit and to increase the taxes on gambling tables and bookmaking offices by 25 percent-from $3,498 to $4,373 per unit. At the moment there 56 casinos providing around 63,000 slot machines in Moscow, and the new tax rates should add an additional $70 million in revenue for the city.
Tax Hikes in Malaysia
In January 2006, Malaysia's government will sharply raise the annual license fees for the country's pool betting operators and for the lone land-based casino by US$2.1 million. The adjustment will entail in a new annual fee of $2.65 million for companies governed by the Pools Betting Act.