5 9 September 2006

News:

US legislation to block online gambling looks unlikely to pass in this session, as last minute moves to attach an amendment to the Defence Bill failed. Senate Majority Leader Bill Frist, R-Tenn, failed to persuade fellow Republican, Sen. John Warner, R-Va, Chairman of the Senate Armed Service Committee to attach the amendment, according to the Las Vegas Review-Journal.

The European Commission is set to add France to the seven countries it has started infringement procedures against for imposing illegal restrictions on sports betting.

The Dutch Ministry of Justice's proposal to award a two-year trial online licence to state operator Holland Casino, has been criticised by the Dutch Council of State as a violation of EU law.

Features:

It is always darkest before the dawn goes the saying. The summer was certainly one of the darkest periods for the remote gambling industry. Executives arrested in the US and Europe, a billion dollar operator extinguished in a matter of days and share prices subsequently crashing.

The claims lodged by Le Pari Mutuel Urbain (PMU) and La Francaise des Jeux (FDJ) with the French Criminal Court for alleged violation of their lottery and betting monopoly, which led to the arrest, detention and the indictment of bwin Co-CEOs, Manfred Bodner and Norbert Teufelberger, are illegitimate since French law is incompatible with EC law.

The French state betting monopoly, Francais des Jeux, which is currently being challenged by private operators both at national and European level, has recently responded with claims of the alleged violation of their monopoly by European operator, bwin. This has led to the arrest, detention and indictment of two bwin executives. Evelyn Heffermehl, an associate at ULYS law firm, examines the latest developments, including the legal procedures used in the bwin action.

Following the arrest of David Carruthers and Peter Dicks in the USA, internet gambling executives have questioned if they could be next. Martin Owens, Attorney at law, examines the issue of jurisdiction, explaining how the indictment process works, the laws regarding extradition and examines who is likely to attract attention from US authorities, and who is not.

Internet gaming is a lucrative industry which, like other sectors in ebusiness, suffers from the problems posed by conflict of laws in cross-jurisdictional matters. Dr Anthony Axisa, CEO of Cyber Gaming Consultants, co-author and drafter of Malta's remote gaming regulations and former legal and enforcement director with the Lotteries and Gaming Authority of Malta, argues that our ability to find solutions to these problems is being hampered by the tactics of national governments and their desire to preserve their monopolies.

Independent organization e-Commerce Online Gaming Regulation and Assurance, a player protection and standards authority, has recently announced a survey of a silent majority - online gambling players. Frank Catania, a partner, Catania Consulting Group and a former director, New Jersey Division of Gaming Enforcement and Assistant Attorney General, explains that the survey is needed to dispel some of the misconceptions about who is placing bets online.

The US Patriot Act and the Money Laundering Control Act can deny operators access to US markets and impose punitive measures on operators, staff and unaffiliated entities doing business with operators. Kenneth Rijock, a financial crime consultant with World-Check, explains that firms could challenge these laws thorough compliance procedures.