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The Dublin gaming conference this weekend comes at an important time for international gaming - and at a time when around 100 Maltese-registered betting site are pondering how to react to the recent US prohibition. The conference is being organised by PKF and its partners at International Gaming Conference and Expo (IGCE)."Internet gambling industry is facing one of its darkest hours," George Mangion of PKF said."This is a pity since Malta has amassed more online and gaming companies than any other Western European jurisdiction. The 2007 budget projected over Lm18.5 million in tax revenue from the gaming sector - almost as much as the revenue from tourism. Even though the industry is in its infancy, it already generates over e1 billion in turnover."
The year has seen various conflicting state regulations. These developments have not gone unnoticed by Brussels, which has already threatened legal action against France, Italy and Austria for restricting sports betting and gambling, including foreign online gaming and casino operators.
On the positive side the Italian government stopped blocking foreign betting sites which had until now been declared illegal.
Many locally-registered sites had been badly hit by this prohibition, especially those who applied for a Maltese licence with the lucrative Italian market in sight.
On the negative side was the arrest of Bwin's co-chief executives in France during a press conference announcing its sponsorship of AS Monaco football club.
The latest tribulations come from the US where Congress made it illegal for banks and credit-card companies to settle payments for online gambling sites.
"The British government thinks the crackdown on online gambling is akin to the failed ban on alcohol during Prohibition. The UK Gaming Commission warned that the ban would make unregulated offshore sites the modern equivalent of speakeasies," Mr Mangion said.
"All over Europe online gaming firms are under extreme pressure. The disappearance of a large number of players makes online gaming less attractive to customers because there are fewer people to play against and because the companies are not able to offer the same kinds of jackpots.
"Take PartyGaming, a Gibraltar-licensed poker operator listed on the London Stock Exchange for over $6 billion. As a result of the US ban, its shares dropped by 70 per cent.
"With so much at stake, delegates at the Dublin conference will want viable solutions," Mr Mangion said.www.igconference.com
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