Issue N31, 2009
August 12, 2009
US Senator Pushes for Online Poker Regulation
Senator Robert Menendez, the senator for the state of New Jersey announced that he intends pushing for new online poker legislation that would hopefully legalize and regulate the industry, all the while protecting problem gamblers and avoiding underage wagering. The Internet Poker and Games of Skill Regulation, Consumer Protection and Enforcement Act, would recognize that poker and other games of skill could be played online at sites that were regulated and licensed by the government.
“Pulling internet poker out of the shadows and into the light of the law, we have the opportunity to help our economy while protecting our families,” said Senator Menendez, explaining the bill to the media. “By bringing these games of skill into the mainstream, we can generate billions in revenue for businesses and the Treasury during these tough times. The safety benefits of the bill are particularly crucial.”
“Parents are worried about their children falling prey to illegitimate gaming sites and thousands of Americans have been fleeced of millions of dollars by these sites,” he continued. “With proper regulation, we can prevent minors from playing poker online, crack down on predatory operations, and sanction the legitimate ones.”
The new legislation proposal has been met with approval by many pro poker groups, not least of all the Poker Players Alliance which said in a statement: “Today's action by Senator Menendez is yet another powerful step towards protecting internet freedom, protecting consumers and protecting online poker.”
The Internet Poker and Games of Skill Regulation, Consumer Protection and Enforcement Act complements Rep. Barney Frank’s efforts to have all online casino games legalized and regulated in the United States.
Ladbrokes Joins William Hill in Mass Exodus
The United Kingdom based gambling giant, Ladbrokes, confirmed that it, too, would be transferring its online sports betting division to Gibraltar, breaking what it termed a “gentleman’s agreement” with the UK government. Ladbrokes made the announcement only days after William Hill pioneered the way for many UK operators to take much of their business to offshore tax havens in a bid to gain the upper hand in a market that has become too competitive. Ladbrokes will now be joining other offshore groups that pay a tiny fraction of the taxes demanded by the government that are paid by UK based groups.
Ladbrokes’ Chief Executive Officer, Christopher Bell, said in a statement that although the group had an unspoken agreement with the UK government that it would stay put in the country, “intense competitive pressures” had forced it to change face and head to Gibraltar instead. “Operating from the UK has become unsustainable and we will relocate by year end,” said Bell.
Ladbrokes also said that the move would “materially improve the competitiveness and operating margin” of its thriving online betting division. It is believed that groups such as William Hill could save around GBP 7 million each year by making the move to Gibraltar. Other operators are expected to follow suit.
France Gets Tough Ahead of Online Gambling Legislation
A French football club that tried to go onto the field wearing kits sponsored by an unnamed French online casino, was blocked by the Ligue de Football Professionel and given an ultimatum to either remove the shirts or risk the soccer game being stopped. Olympique Lyonnais was told that the referee had the power of the government to stop the game if necessary.
The case highlights the French government’s tough stance on the issue of online gambling ahead of the new legislation that is expected to come into effect at the beginning of next year. The French Budget Minister, Eric Woerth warned online casinos not to get ahead of themselves or the law by introducing changes that were not on the legislation process timetable.
“The opening of the market for online gambling will take place during 2010,” said Woerth. “Upon then, both sides must respect French law. In a democracy, laws are not negotiable. Being a sports leader and an outlaw is incompatible. I therefore call on Jean Michel Aulas, Lyon president and the company in question to keep their nerve.”
Woerth said that the online casino in question should not carry out an operation in the name of publicity as this only proved “bad news” for sport. He noted that many other operators had behaved “quite correctly” and praised them for their efforts.
Finally, Woerth warned online operators who tried to pull these kinds of stunts. “Obviously, the State, as the regulatory authority for online games, will take into account what is happening at the time of the issuing of the licenses,” he said. “Wearing an advertisement for an illegal transaction is strictly prohibited. I will not let it happen.”
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