E-gaming - Flush of success
Over 220 delegates attended the recent International Casino Conference (ICE) in London and the Mobile and Legal Summit held two days earlier. The events are organised by Bullet Business and by GMM Business Solutions.
A number of measures are expected to be put in motion by France following the landmark ZeTurf case. After various appeals both in France and in Malta last year, a triumphant ZeTurf saw the overturning of a decision blocking it from entry to the French market. This case made it as far as the highest Court in France.
In Germany, however, the point about freedom of services has not yet percolated through. A prohibitive stance was taken this month by the German state treaty which extended the lottery monopoly for four more years. Most legal advisers believe that the blocking of cross-border services by the German state monopoly is unconstitutional and runs contrary to the EU Treaty. Many argue that it is administratively impossible to stop foreign internet operators entering the German market. Imagine, for example, a number of bona fide sports books licensed in Malta which are banned from offering their services to German citizens. This goes contrary to the freedom of providing services within the internal market as amply manifested in the Gambelli and Placanica rulings at the European Court of Justice.
Imposing an internet blockage on credit card transactions, as was done last year by American banks, will not work in Germany. This would hinder the normal flow of business and banks would suffer losses running into billions.
In Spain, the government is trying to streamline taxes imposed on bingo and casinos in the regions of Andalusia, Aragon, the Balearic Islands, Catalunya and Madrid. This is encapsulated in a unique tax reform (Section 20 of Act 57/2007) meant to introduce remote gaming licences. Speakers at the conference said they hoped this would be enacted soon after federal elections in March. This means that Spain would join the expanding club of jurisictions like Italy, UK, Alderney, Gibraltar, Isle of Man and Malta. There is another new kid on the block. Marc Callu, the CEO of the Belgian Gaming Commission, was bullish that Brussels would issue remote licences. This initiative was proposed before last year's general elections and once a national government is in place it is expected to push through remote gaming laws and open up the market in Brussels, the political heart of Europe.
So with so much happening in the eurozone, are the Brits trailing in their project to be the most dynamic gaming hub in Europe?
David Clifton, a solicitor from Joelson, Wilson & Co., was critical of last year's imposition by the Brown administration of a 15 per cent tax which places UK at a disadvantage over offshore locations. Last September more bad news hit the British tabloids. Plans for a megacasino, possibly in Manchester, were scrapped. Plans for 17 other, smaller regional casinos are getting the cold shoulder from investors in Britain. Even Ladbrokes are having second thoughts about the investment. There is a lingering doubt as to whether the UK government succeeded in lightening regulatory burdens, striking the right balance between economic gain and social protectionism.
Alderney in the Channel Islands was the first to exploit the confusion. Andre Wilsenach, the CEO of Alderney Gambling Commission, said Alderney was attracting quality gaming operators, with rigid regulations but safeguards to protect children and the vulnerable. As a protectorate of UK, it strives to prevent fraud, money laundering and crime. He stressed that e-gaming was an international industry that required cross-border cooperation from well-regulated jurisdictions.
Eastern European countries all aspire to offer gaming products, including internet gambling. Historically, this part of Europe allowed only land-based casinos and lotteries, but they are smarting up and discovering internet sports betting. The unique advantage is that none of these countries have Western-style state monopolies which prohibit the entry of new operators. For example, the Slovak Republic offers online licences with reasonable taxes and quality regulation, using a state-of-the-art telecoms infrastructure.
• George Mangion is a managing director of GMM.
In Germany, however, the point about freedom of services has not yet percolated through. A prohibitive stance was taken this month by the German state treaty which extended the lottery monopoly for four more years. Most legal advisers believe that the blocking of cross-border services by the German state monopoly is unconstitutional and runs contrary to the EU Treaty. Many argue that it is administratively impossible to stop foreign internet operators entering the German market. Imagine, for example, a number of bona fide sports books licensed in Malta which are banned from offering their services to German citizens. This goes contrary to the freedom of providing services within the internal market as amply manifested in the Gambelli and Placanica rulings at the European Court of Justice.
Imposing an internet blockage on credit card transactions, as was done last year by American banks, will not work in Germany. This would hinder the normal flow of business and banks would suffer losses running into billions.
In Spain, the government is trying to streamline taxes imposed on bingo and casinos in the regions of Andalusia, Aragon, the Balearic Islands, Catalunya and Madrid. This is encapsulated in a unique tax reform (Section 20 of Act 57/2007) meant to introduce remote gaming licences. Speakers at the conference said they hoped this would be enacted soon after federal elections in March. This means that Spain would join the expanding club of jurisictions like Italy, UK, Alderney, Gibraltar, Isle of Man and Malta. There is another new kid on the block. Marc Callu, the CEO of the Belgian Gaming Commission, was bullish that Brussels would issue remote licences. This initiative was proposed before last year's general elections and once a national government is in place it is expected to push through remote gaming laws and open up the market in Brussels, the political heart of Europe.
So with so much happening in the eurozone, are the Brits trailing in their project to be the most dynamic gaming hub in Europe?
David Clifton, a solicitor from Joelson, Wilson & Co., was critical of last year's imposition by the Brown administration of a 15 per cent tax which places UK at a disadvantage over offshore locations. Last September more bad news hit the British tabloids. Plans for a megacasino, possibly in Manchester, were scrapped. Plans for 17 other, smaller regional casinos are getting the cold shoulder from investors in Britain. Even Ladbrokes are having second thoughts about the investment. There is a lingering doubt as to whether the UK government succeeded in lightening regulatory burdens, striking the right balance between economic gain and social protectionism.
Alderney in the Channel Islands was the first to exploit the confusion. Andre Wilsenach, the CEO of Alderney Gambling Commission, said Alderney was attracting quality gaming operators, with rigid regulations but safeguards to protect children and the vulnerable. As a protectorate of UK, it strives to prevent fraud, money laundering and crime. He stressed that e-gaming was an international industry that required cross-border cooperation from well-regulated jurisdictions.
Eastern European countries all aspire to offer gaming products, including internet gambling. Historically, this part of Europe allowed only land-based casinos and lotteries, but they are smarting up and discovering internet sports betting. The unique advantage is that none of these countries have Western-style state monopolies which prohibit the entry of new operators. For example, the Slovak Republic offers online licences with reasonable taxes and quality regulation, using a state-of-the-art telecoms infrastructure.
• George Mangion is a managing director of GMM.