Issue N13, 2007
April 6, 2007
Cryptologic Gets New CEO
Top online casino software provider, Cryptologic, has announced that it has appointed a new CEO and President. Javaid Aziz is considered a leader in the field, bringing with him over 30 years of experience in the IT industry. Aziz gained much of his experience when he was CEO of IBM in the U.K. Aziz is also a co-founder of one of the top wireless application software providers.
Cryptologic is making some serious changes in its business structure and is getting ready for a move to Irish shores. The Canadian-based company said that the move was understandable following recent laws against online gambling in the North American continent and a wish to be nearer to its client majority which are UK residents.
Aziz replaces Lewis Rose who was with Cryptologic for many years. A spokesperson for Cryptologic said that Rose laid solid foundations for the company and Aziz will surely build on these.
Bet On Sports Head Arrested
Gary Stephen Kaplan, the founder of Bet On Sports, has been arrested this week in the Dominican Republic. After his arrest, Kaplan was transferred by authorities to Puerto Rico and then passed on to authorities in the United States.
In a continued effort to close in on all illegal online gambling activity, the United States is pushing forward and arresting several top online casino executives around the globe. The campaign which has received much criticism around the world, however, is still in full force.
Kaplan is not the first executive from Bet on Sports to be arrested outside of the US soil. In the summer of 2006, David Carruthers, Bet on Sports’ CEO was arrested in Dallas on a stopover flight on the way to Costa Rica. This arrest was only a few days after the passing of the Internet Gambling Prohibition and Enforcement Act, and caused a lot of waves.
SportsBet PLC to Move to Channel Islands
Online casino company, Sportsbet PLC has announced that it has decided to make a strategic business move and relocate the company’s headquarters to the Channel Islands. The move to transfer business activity to the island is part of the continued efforts of the company to remain in legal operation after ending US market activity following the introduction of the Unlawful Internet Gambling Enforcement Act (UIGEA).
There are currently unclear laws regarding the operational requirements of the UK Gambling Act of 2005, and as a result, the Channel Islands, which do not fall under the direct legislation of the UK mainland law, is becoming an attractive alternative for SportsBet PLC and other such gaming companies.
Sportsbet PLC is expected to transfers all of its operations to the Channel Islands by the 1st of September. The move does not come without costs, and the company is expected to have to pay a £13.5 million pound charge in the year to July 31st as a result of the move.
US Loses Gambling Case According to WTO
The World Trade Organization (WTO) has announced that the United States has lost its long-standing battle against gambling capitals Antigua and Barbuda. The WTO strengthened its statement by adding that according to its findings, the United States had not abided by any of the earlier verdicts of the WTO, who had claimed that many of the online gambling restrictions placed by the United States were illegal.
The World Trade Organization further added that the Caribbean Island had managed to provide even more proof and evidence and as a result, there case was seriously strengthened. The United States, however, had not been able to counter argue many of Antigua’s points.
In a statement issued by the WTO it stated that the United States “has failed to comply with the recommendations and rulings of the (WTO's) DSB (Dispute Settlement Body).” Despite the WTO’s ruling however, the case is subject to appeal, and the United States is expected to act as such.
The history of the dispute began in April 2005 when the WTO ruled that the US prohibitions against internet gaming, especially horseracing, were illegal. Despite these rulings, the United States has continued to pass additional anti-gaming legislation, and has not complied with WTO’s rulings.
Antigua’s reaction to the latest ruling was obviously jubilant and John W. Ashe, Antigua’s ambassador for the WTO said that it was a great success for the island. He hoped that the report would do away with any doubt that Antigua has obtained a “clear and convincing win” over the United States. The United States, however, had not yet issued a statement over the matter.