Interview with Quirino Mancini, Partner, SCM Partners

Call for operators to go for ‘realistic and swift action’ in Italy

eCOGRA extends its services

Interview with Santiago Asensi, Partner, Asensi Abogados

Time to tackle ‘crime scenarios’ in online gambling

Bulletbusiness.com’s Legal Gaming Special

Few months ago, it was being pointed out that Spain was in midst of discussions about how to regulate the online gambling sector at a national level and in accordance with the EU law and principles.

Assessing the situation as of today, Santiago Asensi, Partner, Asensi Abogados, says in accordance with the Law 56/07 on measures to develop the Information Society, Spain is preparing a new gaming law, which would be totally focused on the online market.

“The Sectorial Gaming Commission, the body that groups all the Spanish authorities in charge of the gaming regulations, will meet in the first quarter of 2009 to review the first draft of the Bill. This draft is being prepared by LAE (The State Lotteries Monopoly) and shortly will be circulated between the different administrations,” said Asensi, who is scheduled to speak during Bulletbusiness’ 3rd Legal Gaming in Europe Summit 2009, to be held in London on 26-27 January.

Asensi also spoke about some of the key issues related to Spain. Excerpts:

On governments losing out on tax revenues and players being unprotected: The fact that the governments have not showed interest in regulating this market but rather putting barriers in order to protect their monopolies has damaged the three principal agents of this business:

i) Consumers that in many occasions have not found the due protection brought by consumers associations and courts where to find their rights covered;

ii) Licenced operators missing out on opportunities to launch their products in many markets; and

iii) Governments loosing the opportunity to obtain income from this industry.

I would say that the governments have damaged the whole gaming sector by restricting and putting barriers to online gaming. To restrict the market to their own monopolies under the argument of consumer protection is a poor and a vague excuse that nobody who is in this industry can believe in.

On how can operators benefit in the time to come: I like to be an optimist and I do believe that this is just a question of time. Most of the sectors of the gaming industry keep growing wealthy even in times of crisis. If we take a look at the legal situation in the past and we compare it with the current one, there should be no doubt that there have been many achievements.

Unfortunately, this is not applicable to all jurisdictions yet but the balance must be considered as positive.

On key to opening up markets being as much about taxation as regulation: My view is that sooner than later this scenario will change or, it would be better to say that it will keep changing. It’s changing in countries like France or Spain and this will also happen with the rest of the countries of the EU.

Furthermore, European jurisdictions should learn from the UK regulation, white-listing those jurisdictions that reach the proper levels of technical standards.

On cooperation among national gaming regulators: Let me be ironic: it’s great to know that our politicians are about to reach the conclusion that this would be the best way to combat all type of crimes that can be related to this industry. If you want to prevent thefts in a dark street, the best measure to take will be always to set up lights in that street instead of increasing the penalty for theft. And this simple example is absolutely applicable to prevent crime scenarios in the online industry.

Role of Bullet Business and Gaminglaw.eu partnership going forward: I believe this is a great opportunity for both parties in order to establish a strong collaboration, which will benefit clients of both entities and the end users of Gaminglaw.eu. This partnership has been built on the basis of many years of experience and the knowledge of the industry. The result must be always good.

We have put our best efforts looking forward that this idea works and I do not find a single reason why it shouldn’t.

Ritesh Gupta

Bulletbusiness.com

3rd Legal Gaming in Europe Summit 2009

Bulletbusiness’ 3rd Legal Gaming in Europe Summit 2009 is scheduled to take place in London on 26-27 January.

For more information visit: http://www.bulletbusiness.com/legaleurope09/agenda.shtml

or

Contact:

Ben Satchwell at +44207 375 7163 or email ben@bulletbusiness.com

Czech firms win permission for online gambling

It is being reported that the Czech Republic government has allowed a select few domestic online gambling operators to commence operations within the country.

According to local media, the Ministry of Finance recently granted licences to operate Internet gambling to five domestic companies, Sazka, Fortuna, Chance, Synot Tip and Tipsport. It is being said that all five operators were required to have a network of land-based outlets where customers need to register. The companies will be subject to regulation under the Gaming Act and will pay administrative fees, state supervision fees and part of their proceeds will be used for good causes. The server where the betting takes place must be located in the Czech Republic, with the software used to be subject to certification. The operators are also obliged to allow state access to the system.

“We are sad and bitter that foreign Internet betting companies are allowed to operate in the Czech Republic without any control. There is no legal restriction. So basically they operate in this country illegally. So we want to have the same opportunities as foreign companies,” a spokesperson from Fortuna told radio.cz.

“If someone wants to bet through Fortuna on Internet, they must register in a bricks and mortar office and show their ID. Only then they are allowed to play. We don’t accept credit cards but only regular payment cards because we don’t support gambling and gamblers and we don’t want people to become addicted to internet betting. That’s something foreign companies don’t do.”

Ladbrokes’ online casino ad campaign fails to get clearance

Ladbrokes breached advertising standards in television commercials for its online casino as the Advertising Standards Authority (ASA) felt that the adverts

The complaints were levelled against two ads. The first commercial showed a diver who attached raw bacon and sausages to his wet suit and leapt into shark-infested water dressed in a seal costume. A character at the end of the clip said: “All we could bury was his flipper.”

The second advertisement showed a sky diver jumping out of a plane using an empty crisp packet as a parachute.

Both clips finished with: “If only he’d seen ladbrokecasino.com it would have quenched his thrill buds.”

The complainant said the ads: portrayed gambling in a context of toughness or linked it to risk taking and reckless behaviour; portrayed, condoned or encouraged people to gamble in a way that was socially irresponsible and could lead to financial harm; exploited the susceptibilities and aspirations of vulnerable people.

The ASA banned the ads on the first ground.

While the ASA noted the ads were humorous and showed the protagonists engaging in ridiculous and extreme behaviour; it considered that the activities shown in the ads would be unlikely to be seen as realistic or aspirational by viewers.

“We further noted Ladbroke and M&C Saatchi’s argument that the ads were cautionary tales and encouraged caution and moderation, not risk taking and reckless behaviour. We nevertheless considered that the overall context of the ads, including the claim If only had seen ladbrokescasino.com it would have quenched his thrill buds, portrayed gambling in a context of toughness, and linked it to excessive risk taking and reckless behaviour. Although we acknowledged that the scenarios shown in the ads were intended to be cautionary tales, we concluded that they breached the Code by portraying gambling in a context of toughness and linking it to recklessness,” stated the ASA.

Ladbrokes said in a statement the advertisements were light-hearted and humorous, and it would appeal against the decision.

Tim Duffy, UK chief executive of M&C Saatchi, said if the appeal were unsuccessful, the ruling could present serious challenges for creating gambling campaigns.