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Poland Works with EU to Sort out Gambling Law- Part 1

Monday, August 9th, 2010

Online gambling has been an issue in Poland for over a year now. First the issue was debated and then legalized. The country saw it as a money-making move, but it proved to be more difficult to implement than anticipated. There was a huge scandal involving politicians of the country. Many came under fire from residents and were stripped of their posts. Now, more changes are coming about. The good news is that most of the problems with unscrupulous politicians seem to be over and now the country is moving on to truly regulating online gambling. The EU, European Union is now moving in on the issue for Poland.

Over the years more countries have realized just how lucrative legalizing online gambling is. They know how much money is at stake if they don’t find viable ways of regulation. Poland is the same and wants to bring in gambling carefully. However, they have an additional issue in the mix. Polish legislators are trying to block foreign internet gambling websites from coming into the country. The problem is that according to the EU, participating countries have to remain open—meaning free trade has to be adhered to. One country cannot block out others and hope to create a monopoly, which is just what countries trying to block outsiders from reaching their market are doing. The Polish government is going to have to comply with the new GTech G2 gambling group.

The GTech G2 gambling group is trying to flesh out a lottery plan with the Polish government. Hopefully this will be the first successful move towards a viable plan for online gambling and managing it within the country and beyond. Despite challenges in the past, Polish legislators are hopeful that with the expulsion of former politicians who were caught, they can now begin a true move towards online gambling and using it to bring in millions. They are going to have to be careful however to heed the EUs rulings and keep an open market. Monopolies are something many countries have tried to maintain and failed. The EU is strict about offering a completely open market of trade across borders of member countries.

Part two coming next.

The EU Fights for Regulation of Online Gambling

Wednesday, May 5th, 2010

The European Union is fighting for the cause of online gambling. There are still a handful of small countries that are not regulating online gambling. The problem is that this opens the door to fraud and other illegal activities for companies to be bringing to the market. It threatens the safety of players worldwide too. Many players who aren’t as savvy may be wooed by companies offering outstanding deals and specials. Once they are drawn in and deposit their money, any number of them lose money or even worse, their identities. Without regulation, online gambling is a sure fire way of putting people in dangerous situations.

The EU, or European Union, is trying to coerce every member state into adopting the same rules it has come up with in terms of regulation when it comes to gambling. A recent report showed that over the next two years, there should be an overwhelming growth of 42% in the world of online gambling. That adds up to about $30 billion in additional revenue for the world to divvy up. With an already depressed financial state, few countries can pass up the millions of dollars in additional revenue they can bring in by regulating online gambling and land-based gambling properly. Accounting group KPMG advises countries on finances throughout the world and they recently release statements requesting that countries regulate the gambling market. It is their desire to make regulation of gambling—both online and at land-based locations—a priority in the world today.

KPMG realizes the value of increased taxation on gambling and how that is the key to bringing more money into the world economy. Many online casinos have been putting time into avoiding taxation increases. Unfortunately, as rules are shored up this may become increasingly impossible. For example, for a casino company to set up in the UK, it has to have the proper licensing. That license, of course, comes along with a licensing fee that needs to be renewed periodically. This is another way, in addition to taxation, countries benefit from regulation and increased gambling. Hopefully, other countries will take cues from the UK and begin with the same regulation process. It promises to bring in much-needed cash and protect citizens who want to partake in the hobby.

UK Changing Rules with Online Gambling

Wednesday, March 31st, 2010

The UK recently came up with a plan on how to manage online casinos overseas. The plan is groundbreaking in that it is changing how the UK is dealing with gaming operations. In past years gaming operators believed that the UK was dealing with them unfairly. Part of the problem was that increases in taxation led many of the casinos to move to move cost-effective centers like Gibraltar and Malta. The British online casinos decided that their treatment was unfair and that was forcing them outside their chosen areas of operations and moving them to offshore locations. Since the rules for foreign casinos are more lenient with online British companies, most feel that they should look to outside licensing. Now that companies have left the market the UK is looking to change their rules.

When it comes to regulating online casinos, there are problems and issues. Many countries are dealing with issues regarding the problem and the UK is not alone. Some issues that need to be addressed are, if casinos have licenses from the UK, what type of information should be required to maintain it? How can the most vulnerable gamers be protected? How is sports betting going to be managed throughout the world of gambling? The problem is that the rules are no where in place for the UK; meaning that the UK will have to start fresh with all laws and regulations when it comes to online gambling. All of these things need to be sorted out and with no previous framework of rules that worked, countries are having to make the rules as they go and see if they work. The EU rules also show that any EU member nation has to follow the exact rules. It is this uniformity that the EU is seeking and hoping that it can bring some laws and regulations to the mix that work for all members. Hopefully the new rules will also allow for more online operators to remain in Britain. With better rules and regulations, it is hoped that operators won’t need to flee to offshore areas or remote locations to operate in a cost-effective way.

Estonia is the Latest Country to Make Gambling Changes

Wednesday, March 31st, 2010

Gambling and online gambling are changing the world. As the market changes, more online casinos are entering into the gambling world. If you do a quick search, you will find a wide range of online games, promotions, bonuses and casinos. Things in the world of online gambling change quickly—almost on a weekly basis. The UK is going through many changes regarding online gambling. The UK recently decided to build up its regulations regarding foreign casinos coming into their territory.
Part of the issue is EU-generated. The EU is pushing countries to participate in online gambling. The EU is now pressuring members to change their views of gambling and open it up to foreign companies. In some member states it involves changing monopolies. Many countries have built up monopolies in gambling and are now quick to let them go without serious threats of penalties and fees from a higher power. For the US it has taken a long time to come up with adequate regulations and the country is still in the midst of working on adequate legislation. Estonia, not unlike the US, is a tiny country just opting to stay out of the online gambling fray. Though the country is small, it is still seeing how online gambling is influencing its industry and how it could bring in more money to the country’s coffers. The country’s officials already have seen proof of how much online gambling legislation can bring by watching other country’s success stories with online gambling.
In an effort to overcome problems, they have now made moves to allow casinos to apply for licensing. Playtech is the first company that is benefiting from the changes in law and most likely operators are elated that they have access to a new market. Operators know full well how lucrative online gambling is and how opening the door to a new location to market their product can considerably increase revenue flow. Only time will tell how the EU will enforce its rules and how Estonia, and other small countries, will manage but one thing is for sure. Online gambling is growing and taking on new markets is an integral part of that growth. Expect every country to start regulating gambling and operators to work with them.

Estonia is Trying to Block Online Casino

Thursday, March 25th, 2010

The EU and its member countries, along with non-member countries, are having problems. The government is trying to find some way to regulate online gaming but many countries already have their own rules and regulations. It is a difficult time as growth is still happening and governments are getting greedy– wanting to keep their customers in their country and not allow for freedom in advertising. One country that is affecting the mix is Estonia. Considered as contrary to European Union legislation, the government of Estonia has announced that they will begin to ban online casino and poker sites that do not hold a license in the country. So far the only casino that has gained this new license, Olympic Casino.  The Estonian Tax and Custom Board has indicated that internet service providers will now begin blocking an estimated 200 online gambling websites who do not hold an operating license in Estonia. This is exactly what the EU is trying to avoid– an all-out monopoly being created by individual countries and the push-back they will feel when they try to break up those monopolies. Estonia is a difficult country to deal with, but if it is succeessful in blocking online casinos, it may open the door for other countries– both EU members and non– to start their own blocking efforts. There are millions of dollars at stake in the gambling world and it is no wonder why countries are fighting hard to keep their money in their own pockets.

This may mean that our popular sites such as PokerStars and PartyPoker, who have not applied for an Estonian domestic license, will no longer be able to operate in the country.  Neither will a host of smaller operations who had previously been allowed to conduct their business in Estonia unhindered by the new licensing law. Unlicensed sites may also be presented with some hefty fines.  The Estonian authorities are hoping permission in granted if the EU deems remote gambling a national concern rather than an international one. We will just have to wait and see.  Their controversial decision to block over 200 gambling operators could go ahead without interference from other member states or EU legislators, meaning any criticism is likely to fall on deaf ears. Only time will tell what happens, but all EU member countries are most likely watching closely.

 

Belgium’s Clarification of EU Poker Laws

Thursday, March 25th, 2010

To gain some precise clarification and avoid some confusion some guidelines have been set in place.  As the EU council presidency makes its customary rotation it could prompt the unification of online poker laws across Europe. Starting in July 2010, Belgium will take the EU hot seat and is keen to use its position of power to clarify the rules regarding poker on the internet. Belgium Italy and France are currently in favor of regulated online casinos that offer various online games, including online poker, to their nationals. These moves, however, have also blocked outside operators from legally offering games to willing punters.
In Belgium alone, 35,000 people play online poker each week.  This is a huge number of people logging on to the internet in an effort to wager. This number includes 330,000 people that play at least once every six months. This uptake in online poker across Belgium has been significant over the past three years and with annual revenue expected to total €110 million the country is keen to tap into that money as soon as possible. with the growing advancement of technology this will always be a sticky subject for the government.  The role of online poker within their respective countries; some taking a completely negative stance and banning it completely. If America re-opening its doors to online gambling and attitudes towards online poker are becoming more positive it won’t be long before online poker is booming once again across Europe.

Part of the problem with the changing laws of the EU is that there is no uniformity. Countries have consistently built their own rules over the past few years. With no real law, they were left to their own devices. Countries were hard-pressed to continue gambling and refused to hand aside the millions of dollars at stake. They began working through their own rules and regulations. The problem then, was that the EU then stepped in to try to unify rules. It is going to be a difficult task since they are working with a wide variety of gaming rules. Some countries are trying to create monopolies and protect their own stake in the market. Only time will tell what the EU is going to do to overcome the disparity in rules and regulations.

EU Works to Unify Member States

Thursday, March 25th, 2010

The EU is having problems with regulating gambling. The crux of the issue is that there are many member countries involved and some of them have already set their own laws into place regarding how they are managing the hobby. Many of those countries these days are trying to use gambling to their biggest advantage. For example, in Europe there are no universal laws yet that dictate how gambling will be implemented. Many countries have been left to their own devices in terms of writing laws and tax code that benefits them. It’s a lot like the US in that individual states are coming up with their own governing laws to deal with gambling.The problem with non-uniformity in gambling law is that some countries and states are looking to create monopolies in their jurisdiction. They aren’t opening the doors for other countries to cross-promote or advertise for their citizens.  The European Commission has noted this problem and tried to make it clear that online monopolies will not be tolerated by European Union member countries.

Both Ladbrokes and Betfair were discouraged late this past week after their efforts to break one of the gambling monopolies in Europe fell apart. A senior legal advisor at the European Court of Justice explained again that EU member states have the right to choose a single provider. De Lotto is one Dutch monopoly that is refusing to comply with rulings. The company has been in a long-standing legal battler with Betfair and Ladbrokes over territory. This has been the case with De Lotto, a Dutch state monopoly. Betfair and Ladbrokes had been battling to move into De Lotto’s territory, but again they were turned away. The gaming companies believed that the De Lotto monopoly went against the spirit of the EU agreements on the issue. Throughout this past year Italy, France and Spain have all made adjustments to their gaming laws to comply with the EU dictates. The EU is hoping that all states make similar moves, but some are holding to the millions of dollars gambling is bringing them by holding tight to their monopolies. The EU has yet to decide what repercussions countries will be under if they refuse to amend their rules and open the doors to fair competition.

 

EU Makes Changes in Rules of Gambling in Member States

Thursday, March 25th, 2010

The EU is working hard to handle th eoverall growth of gambling in member countries. Online gambling has suffered a minor setback in Europe. The advocate general, Paolo Mengozzi, whose opinion is widely followed by the EU Court, released his conclusions that EU member states were not obliged to allow foreign gambling firms to penetrate their home territory only because they were licensed in another EU state. Mengozzi released his conclusions regarding seven cases that focused on the compatibility of German gambling issues with EU legislation. Unfortunately, this comes as a blow for the online gambling industry in Malta and Gibraltar because the Advocate General has said that offshore licenses granted by these countries have distorted the mutual trust between EU member states when it comes to online gambling laws. Only time will tell how long it will take for the EU to adequately regulate the market of gambling. it is a big task for the member states to come together and enjoy the virtues of gambling. Though it will take time to regulate and find rules that are workable for ever member state. Now there are still a few glitches in the mix, but time and experience should help legislators to work those out quickly.

The European Union continues to drag its feet on the issue of online gambling. They need to put together some clear rules and regulations for member nations to adhere to. Europeans should be able to play at any of the online casinos licensed within any of the EU member states without the individual states being able to restrict access to protect their own gambling monopolies. This would enable the EU gambling industry to remain competitive and offer players the best incentives to play at their online casino establishments. It would be the best option for the players, but governments in Europe aren’t likely to open up their gambling markets to other countries unless the EU has some clear rules in place for cross-border gambling. The Advocate General’s opinion doesn’t decide the law, but the European Commission seldom decides against the opinion of the Advocate General. The judges have now started deliberating the gambling issue and their judgement will be handed down in the not too distant future.

French Soccer Team Upset with Noncompliance

Wednesday, March 24th, 2010

The debates over gambling rules are not limited to the US. It seems that all over the world various business entities are debating whether or not the rules are being followed, how they should be followed and what changes need to be made. Olympique Lyonnais, a french soccer team is upset with the French national government for it’s continual failure to comply with the European Union regulations when it comes to online gambling. The Lyon team wants to accept online gambling sponsors but the French law continues to discriminate against foreign online gambling operators that are not licensed by the French government. French teams are concerned because they cannot accept advertising from any online gambling operators while their opponents from the UK and other European nations are sponsored by online sportsbooks and other prominent online gambling operators. This means that they are out of hundreds-of thousands of dollars- even millions in some cases. Sponsorship money is big bucks in the world and that includes sports wagering. If teams are not allowed to take advantage this could mean serious deficits in their own budgeting and problems with their own expenses.

As with anything in the world of gambling, there are opposing sides. One of their opponents, Real Madrid has wore shirts that bore the bWin brand. This sponsor has brought the team a lot of extra cash. This puts the French teams at a competitive disadvantage because they are unable to acquire the sponsors that help them purchase equipment, etc. “Olympique Lyonnais is now faced with the fact that we cannot display our sponsors logo this Wednesday in Madrid, in a country which legally allows this type of publicity, and during a match where the main competitor of BetClic will appear on the shirts of Real Madrid!” read a statement that was released by the Olympique Lyonnais team in France. New french regulations are being written but the legislators want to protect their gambling monopoly and continue to restrict foreign online gambling operators from accepting French players. Only time will tell what is going to happen, but with the millions of dollars at stake, there could be more and more pressure from both sides until a resolution is found.

EU Still Sorting Out Rules for Gambling

Sunday, January 3rd, 2010

The US is in the midst of sorting through gambling laws. Part of the problem is that many states are acting independently of the federal government and that is creating problems. In the same way, the EC, European Commission, is having problems managing monopolies within the members of the European Union.

It seems that many of the countries in Europe are trying to protect their monopolies when it comes to gambling. They know how profitable gambling can be and want to keep the money to themselves. If the doors of their countries are opened, that means that competition will eat at their profits. Gambling is so lucrative that operators all over the world are working to create the best deals, specials and promotions to woo customers. Every operator is desperately scrambling to build their own market share. With the overwhelming technological capabilities, it’s easy for one gambling operator after another to out shine the last.

This is posing quite a problem for the EC because regulating individual countries is proving to be a difficulty. Ladbrokes and Betfair were discouraged recently after their efforts to end a gambling monopoly in Europe were thwarted. A senior legal advisor of the European Court of Justice maintained that the decision of the Court was that an EU member has the right to choose a single provider.

De Lotto is a Dutch monopoly. Betfair and Ladbrokes were both fighting to break apart De Lotto’s target area but failed. They were hoping the courts would agree that De Lotto was acting unfairly according to EU agreements on the gambling issue. Both gambling operators maintained that De Lotto is one of the biggest monopolies involved in the EU and to be fair, the EU had to break down their powerful hold on the territory.

As a result of the monopoly-issue, many countries have worked to alter their rules. Spain, Italy and France all have altered their laws to follow the EU’s statutes. The US is one country that has not heeded any open trade laws. The US was given a grace period by the EC to fix the problems with their laws, but as of yet has not complied with their rules.