5 2 February 2006

News:

Remote gambling operators have been assailed both in the US and Europe with threats of protectionist legislation. In Italy these threats have become a reality with the passage of the Italian Finance Act 2006. In Congress Representative Bob Goodlatte, a Republican from Virginia, introduced on February 16 H.R. 4777, the Internet Gambling Prohibition Act, another Bill to outlaw remote gambling, although inter-state remote horse betting operators will be excluded from the Bill, along with interactive state lotteries and Native American interactive gambling.

Online gaming giant, PartyGaming, has agreed to pay $250 million to Empire Online for its EmpirePoker.com skin, ending the ongoing legal battle between the two internet gaming firms.

World Online Gambling Law Report is organising the inaugural Remote Gambling Regulatory Intensive 2006 on 13 April in London.

Features:

The first quarter of 2006 promises a stormy year ahead for the remote gambling industry.

The compromise deal struck in the European Parliament over the draft Services Directive can only be viewed as a blow to Malta in the area of e-gaming, a fast growing sector which now employs hundreds. The directive is meant to improve cross-border competition rules in businesses and hence expand job opportunities but in terms of the compromise certain sectors were excluded. These include financial services, online gaming services, communication networks and transport services.

US Representative, Bob Goodlatte's Internet Gambling Prohibition Act is the latest attempt to ban online gambling in the US. With the bill containing exemptions for certain industry sectors and being introduced amidst a Republican lobbying scandal, the prospects of a gambling ban look stronger than at any point in the last seven years. Frank Catania and Keith Furlong of the Catania Consulting Group assess the latest developments.

The UK Government has just published a consultation paper on the proposed transitional licensing arrangements from the existing regime to the new Gambling Act 2005. The guidance sets out the key licensing deadlines for current operators and potential applicants. Nick Nocton, partner at Jeffrey Green Russell, explains the proposed timetable.

The decision of the European Parliament to exclude gambling from the services directive means the uncertainty surrounding the regulation of the industry across the EU continues. Thibault Verbiest and Evelyn Heffermehl of ULYS law firm, assess the consequences of the Parliament's decision.

With the online gaming sector now having a broad understanding of the regulatory consequences of the UK's new Gambling Act, questions remain over the tax implications of companies taking up a UK remote gaming licence. With the UK Government set to unveil its plans on 22 March 2006, Paul Eagland, Martin Dane and David Simpson of BDO Stoy Hayward, speculate on the key considerations for potential licencees.

The Isle of Man government has just introduced some welcome changes to its Online Gaming Regulation Act, further enhancing the island's position as a leading jurisdiction for gaming operators. Hilary Stewart-Jones, partner at Berwin Leighton Paisner sets out the changes.

Despite substantial investment by the television industry in interactive services, the predicted financial boom has yet to materialise. With companies continuing to invest, particularly in the gaming sphere, Professor Mark Griffiths of Nottingham Trent University assesses the latest developments.

A recent governmentcommissioned report has analysed Sweden's national gaming policy framework and made proposals in light of marketing, technology and community law developments. World Online Gambling Law Report presents a summary of the findings.