5 12 December 2006

News:

At its final meeting of the year on 6 December, the South African Cabinet approved the Draft Gambling Amendment Bill, which proposes amending the National Gambling Act 2004 to mandate the National Gambling Board (NGB) to regulate 'interactive gambling'.

US authorities are expected to publish by July 2007 the rules financial institutions must follow to block 'illegal' online gambling transactions.

The UK Gambling Commission is to consult on whether gambling companies advertising on children's football shirts encourages child gambling.

Features:

Most in the online gambling market will be glad to see the back of 2006. The year, which started with such optimism and excitement, unfolded with arrests, the passage of prohibitionist - or at best protectionist legislation - in the US, and bombed out share prices.

Well, thank God that's over with. For the online gaming world, the 10-year watch is finally over, and we now supposedly have an American law against internet gambling to deal with. Or do we? The new law bears the unwieldy moniker of the Unlawful Internet Gambling Enforcement Act of 2006. But it would be wrong to cavil: the title seems to be the strongest part of the whole structure.

2006 turned out to be one of the most dramatic years yet in the young industry that is online gambling. As the year draws to a close, we asked members of the editorial board what they feel will be the key issues in 2007.

As the UK prepares to become the first major European country to regulate online gambling from September 2007, operators are considering the pros and cons of relocating to the UK, or remaining where they are (and vice-versa). Stephen Hignett and Luisa Hoffman of Olswang consider the tax and advertising pros and cons of establishing in the UK, before and after the new changes become law.

The Polish government is debating whether new laws on gambling should aim at opening up online gambling to commercial entities, or restrict it to state monopolies. Bartosz Andruszaniec, an associate based in Salans' Warsaw office, examines the current legal framework governing online gambling, its compatibility with EC law, and possible future developments.

A new Code of Standards for Advertising, Promotional and Direct Marketing, launched by the Advertising Standards Authority for Ireland, will come into force in the New Year. Deirdre Kilroy, an associate solicitor with L K Shields, warns that the new code places an increased focus on new media advertising, strengthening existing regulation governing the distance selling of gambling.

Some of the 17 Autonomous Communities within Spain are considering, or have passed, regulations liberalising online gambling. Carlos Lalanda Fernandez, a senior partner with Loyra Abogados, examines the current regulatory situation and explains that despite the actions by the Autonomous Communities, regulation by the Spanish state legislature is unlikely to happen quickly.

The German states are keen to push forward with a new draft Interstate Treaty on Lotteries, as the Federal Constitutional Court has declared that a 'transitional' period for amendments to gambling regulation should end in 2007. Martin Arendts, Attorney at Law, Arendts Anwalte, explains how Schleswig-Holstein's refusal to sign the treaty could create legal problems for the Interstate Treaty on Lotteries in the future.