Issue N35, 2007
September 12, 2007
New Head for Isle of Man Gaming Body
Several countries in the past few months became part of the United Kingdom’s ‘white list’ – a list of locations that may provide online gambling services to citizens of the country because they meet the strict standards set by the United Kingdom’s Gaming Commission. One of the locations to be white list-approved is the Isle of Man and, for this reason, it was decided to appoint a new high caliber head for its Gambling Supervision Commission.
This week it was announced that the new chairperson for the Isle of Man commission is Claire Milne, a local who has a proven background in IT law, data protection and intellectual property – including matters dealing with the internet and online gambling. The Chief Minister for the Isle of Man, Mr. James Anthony Brown, expressed satisfaction over the new appointment. He stressed the importance of having someone with the right qualifications at the head of the Gambling Supervision Commission, who was talented enough to accept the responsibility of handling the marketing, social and regulation aspects of e-gaming on the island in this new era. Milne replaces outgoing Jane O’Rourke as chairperson.
France Granted Online Casino Gambling Law Reprieve
A few months ago, the European Commission announced that several countries on the continent, France among them, had until August to change what the EC considered restrictive laws relating to the online gambling industry. The EC argued that these countries had in place gambling monopolies run by local companies, with laws that would not allow companies based in member-states to compete in these markets. The EC claimed that this was in direct breach of the European Treaty’s Article 49, which encourages free service trade between member countries.
This week, however, France was granted an extension to the previous August deadline, despite the fact that it still only permits two local companies – Francaise des Jeux and PMU – to offer online gambling services in the country. It is still not known whether France will bow to the European Commission’s demands, or whether the EC will be forced to start fining this country, as well as others such as Sweden, who have yet to make the necessary changes in their local legislation.
China Arrests Online Gambling Operators
The Chinese authorities, ever militant against the threat of online gambling in their country, announced this week that they had arrested at least thirty individuals and charged them with illegal internet gambling operations. The arrests came about in the Liaoning Province in the north-east region of China. It is estimated that the online gambling operation was worth around $775-million. Under Chinese law, only the state-run lottery is a permissible form of gambling. Authorities regularly crack down on illegal online operations which they claim, “‘ruins the environment, harms young people’s growth and runs against the country’s policy of building a harmonious society”.
Officials say that the head of the operation, Yang Xu and his wife Wang Yun, began a small gambling ring in 2005. Within two years that network had expanded so much that more than 100 people were involved. The two have yet to be arrested as complaints against them are still being investigated. Chinese authorities have formally charged thirty-two people involved in the operation and a further fifty are still on the run from the police.
Despite Bad First-Hard Earnings, 888 Looking Ahead
The first half of 2007 was a bad year for 888 Holdings PLC, the popular online gambling company that used to have an extremely strong presence in the United States market. 888 announced this week that the total income for this year’s first half was $27.4-million – around half the net income of the same period in the previous year which ended then with a total income figure of $42.7-million. The main reason cited for this drastic drop in figures is the Unlawful Internet Gambling Enforcement Act, signed into law last year in the United States. 888 was forced to drop many of its US operations and, as a result, lost important sources of income.
888, however, is not being deterred by these poor figures. It also announced this week that the forecast for the second half of 2007 is already much more optimistic, with July – traditionally a weak month across the board – proving to be a record-breaking month in terms of income. The growth in figures comes from 888’s partnership deal signed with one of Latin America’s leading poker brands, Tower Torneos International. Under the new agreement, Tower Torneos will employ the 888 poker platform and its players will be able to access 888’s popular bingo, backgammon and casino suites. In addition, the two companies will work together to create online games that are relevant to the Latin American gaming market.
888 has also spent this entire year making its operations more accessible to the global market. New casino games are being made available in all twelve languages that its casino sites support. It is hoped that these changes will have an immediate effect on the company’s end-of-year financial report.