France Flouts EC Procedure -- The International Herald Tribune carries a report on Wednesday's announcement by the European Commission (EC). In response to the EC's threat of court action, the French Finance Ministry, in a strongly worded prepared statement, said: "France esteems that the restrictions existing in the exploitation of gambling and betting comply with the conditions posed by the European Court of Justice (ECJ)." In essence, the paper says, France has argued that public interest is more important than competition rules--and justifies national restrictions on gambling.
A Little Later than Usual -- Neteller said Thursday that, due to its ongoing regulatory inquiry in the United States, it will not be able to finalize its full-year accounts in time to be sent to shareholders by June 30. In a prepared statement, the company said its shares remain under suspension on the LSE. It added that it has advised the U.S. Attorney's Office to expeditiously resolve the investigation--by no later than July 13, 2007, it said--in order for the company to finalize its accounts for the year ended Dec. 31, 2006.
Lottomatica under Investigation -- Italian lotteries operator Lottomatica is facing claims of up to 4 billion euros ($5.38 billion) related to an investigation of its gaming network. The Rome-based company, which in January 2006 acquired Providence-based Gtech, denied any wrongdoing, saying in a prepared statement that the "claims are without merit." Bloomberg reports that a prosecutor for Italy's Court of Accounts is investigating the company's Videolot Rete unit, as well as nine other companies that have concessions for the management of a computerized network for gaming machines. "Lottomatica has already obtained legal opinions firmly supporting its position," it said. The company "does not anticipate that any penalties or liabilities will result from this matter," it added. Shares in Lottomatica fell 1.22 euros (4 percent) to 29.1 euros in Milan, giving the company a market value of 4.41 billion euros. Bloomberg says Friday's dip was the stock's biggest one-day decline in five months.
New Home for Tax Refugees -- The Financial Times carries a report on the Isle of Man, whose government is looking to draw in more "tax refugees" by highlighting the positives of island life. The government has pressed one item in particular, a £100,000 tax cap, "regardless of how high your income is," Manx government spokesman Alistair Ramsey told the paper. The presence of several online operators like Pokerstars and Betinternet has significantly contributed to the island's population of younger, business-savvy individuals, the report adds.
Stock Watch -- On the LSE, 888 was up 2.50p to 115.50, PartyGaming was down 0.75p to 30.75 and Sportech remained even at 16p.