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2nd
Annual Legal Gaming in Europe Summit '08
21st-22nd January 2008
Where was a wintry wind blowing in
central London right next to High street Kensington at the Royal Garden
hotel where over 220 delegates made haste to attend any of two gaming
conferences. The choice was either mobile gaming which attracted marketers
or lawyers and regulators who opted for the legal sessions. As a venue
London, welcomes thousands of visitors during the third week of January
for the International Casino Conference ICE) at the massive exhibition
centre in Earls Court. This is another reason why the combined Mobile
and Legal Summit conferences are held two days prior to ICE. The event
is organised by Bullet Business and by GMM Business Solutions. This year
has seen a substantial increase in participants which included representatives
of major international operators such as Betfair, Bwin, Betson, Agicos,
Expekt, Betclick ,Playtech, Sky Bet, Ladrokes, and Boylesport. |
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The legal
session was visibly packed by a number of senior regulators of gaming
in Europe .Suffice to mention that Marc Callu the vice President of the
European main regulating board (Gref) and a senior member of the Belgian
Commission. The CEO at the Malta Lotteries and Gaming Authority was invited
and was represented by Dr Joseph Galea and Dr Sabina Galea who gave an
update on Vlt regulation and the recent shared conduct of business guidelines
.Following the success outcome of the ZeTurf case in France, Malta continued
to cement its integrity as a hub for fair gaming in Europe .A number of
distinguished speakers included Aldernay 's CEO ,Britain 's director of
Gambling Commission ,Gibraltar 's Head of Gambling ,a member of European
Parliament and last but not least a director of Norwegian Gaming Board.
Other attendees included a representative of the Italian regulator AAMS.
The event was spread over two days. The first day was chaired by Dr Martin
Sychold who is an authority on European legal studies. As head of Legal
division within the Swiss Institute of Comparative law he steered the
ubiquitous EU project to research and report on the entire twenty five
member states to unravel the tangle of gaming laws and taxation models
.The second day was chaired by George Mangion managing director of GMM
BUSINESS Solutions.
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The  first
day was packed with latest development on regulatory issues in Europe.
Dr Quirino Mancini treated the liberalised licensing regime in Italy following
the Bersani degree. In Italy the business of betting is positively valued,
as its margin continues to grow. Perhaps, following better supervising
this trend may turn the opposite way, to aim in returning to the players
the most possible return to the players .This presentation was followed
by a interesting session dedicated to measures expected to be placed in
motion by France following the landmark ZeTurf case .After various appeals
both in France and in Malta last year saw a triumphant ZeTurf decision
overruling the ban blocking it from entry in the French market. This judgement
arrived at the highest Court in France. Next speaker was Dr Wulf Hambach
who gave a stern account of the prohibitive stance taken this month by
the German state treaty to extend the lottery monopoly for another four
years. He joked about the 'game is over'.
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Most
legal advisers opine that the blocking of cross-border services by the
German state monopoly is unconstitutional and runs contrary to sec.49
of EU Treaty. Many argue that administratively it is impossible to stop
foreign internet operates entering the German market. Imagine for example,
a number of bona-fidei sports books licensed in Malta which face a ban
from offe  ring their services to German citizens. This goes contrary to
the freedom of providing services within the internal market as amply
manifested in the Gambelli & Placanica ECJ rulings. Implementing the
same internet blockage on credit card transactions as was put in force
last year by American banks will not work in Germany. To do this will
hinder the normal flow of business and banks will suffer losses ranging
into billions. Moving on to flamingo country saw Santiago Asensi and Albert
Guilayn covered the latest moves by the Spanish government to streamline
betting taxes in the Basque Country and Madrid region. |
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Interesting statistics show the varying
range of taxes imposed for bingo and casino in the four regions of Andalusia,
Aragon, Balearic Islands, Catalunia and Madrid. Surely uniformity in levying
of taxes and levies should form part of the first step to reform the sector.
This is encapsulated in a unique tax
reform namely section 20 of Act 57/2007 meant to introduce remote gaming
licenses .Speakers hoped this will be enacted soon after federal elections
next March. This means that Spain joins the expanding club. Club boasts
of Italy, UK, Aldernay Gibraltar, Isle of Man and Malta, as well regulated
jurisdictions offering gaming licenses.
But hold your horses as there is a
new kid on the block.
Marc Callu CEO of Bejgian Gaming Commission
was equally bullish that Brussels will issue its own gamut of remote licenses.
This initiative was proposed before last year's general elections and
one expects that once a national government is in place it will promulgate
the entire statute of remote gaming laws and open up the internet market
in Brussels -the political heart of Europe.
So with so much happening in
Euro zone are the Brits trailing behind in their project to be the most
efficacious gaming hub in Europe?
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 The verdict was issued
by David Clifton a U.K solicitor from the legal firm of Joelson Wilson &
Co .He was critical that after last year's imposition by the Brown administration
of a high 15% tax this effectively places UK at a disadvantage with offshore
locations.
David gave a brief history of Gaming Commission history starting with the
comprehensive Budd report which led in 2002 to the ubiquitous study styled
'A safe bet for Success '.This carried three main objectives;-
A) Keeping gambling crime-free.
B) Making sure gambling is fair and open
C) Protecting children and vulnerable adults.
But after last September more bad news hit the British tabloids. The mega
land based casino touted to be constructed in Manchester was scraped. Another
17 smaller regional casinos planned to be approved by the DCMS are meeting
a cold reception from investors in Britain. Typically Ladbrokes are having
second thoughts on such an investment. There is a lingering doubt whether
the UK government succeeded in lightening regulatory burdens and striking
the right balance between economic gain and social protectionism. Alderney,
part of the Channel Islands was the first to gain from the confusion and
its approval within the White list by UK. The regulator’s dilemma
towards hidden dangers facing the industry was the main topic discussed
by Andre Wilsenach the CEO of Alderney Gambling Commission. Andre gave a
brief resume of the edifying success achieved by Aldernay in attracting
quality gaming operators .
Its regulations are rigid
but fair as it aims to protect children and the vulnerable. Alderney cooperates
with the financial sector in assuring responsibility in gambling and assists
in sharing research in preventing problem gaming. As a protectorate of
UK, it strives to enforce the third Money laundering directive to prevent
fraud, money laundering and crime. Andre concluded by reminding attendees
that eGaming is an international industry that requires cooperation from
well regulated jurisdictions. More effort is needed to enforce implementation
of standards across borders. Having toured the traditional betting countries
can we afford to ignore the efforts by emerging Eastern European countries
which show great potential .Graham Wood concluded
the second day presentations by running through interesting statistics
regarding demographics and GDP growth of such ex-Communist countries .All
hope in varying steps to offer gaming products including internet gambling
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 Historically this part
of Europe allowed only land based casinos, lotteries but they are smarting
up and putting their money where their mouth is they discovered internet
sports betting .The unique advantage that none of these countries have Western
-style state monopolies which prohibit entry of new operators .Typically
Slovak republic offers online licences with reasonable taxes and quality
regulation through state of the art telecoms infrastructure . To conclude
the two day event will be hosted again next year whiles both organisers
of Bullet Business and GMM BUSINESS wish to thank all participants for their
continued support.More details can be found on website www.maltaconference.com
or http://www.bulletbusiness.com/legaleurope/index.shtml .For more details
you can always contact Ms Collette Mangion or Ms Joanne Fenech on info@gmmbusiness.com
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