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.

Live Real money Texas Hold’em Poker tournaments legalized out of casinos in France

After a crisis meeting with casino representatives in the middle of November, the French Home Affairs Minister, Michèle Alliot-Marie promised to reflate the casino industry by authorizing the organization of live real money Texas Hold’em tournaments out of the confines of casinos but under their control and responsibility. The 24 December 2008 decree concerning casino games concretizes this proposal.

Live real money poker tournaments have become more and more popular, and casino managers needed more flexibility to organize such tournaments. According to casinos representatives, even if this point was not one of the major priorities to relaunch the sector (1), it will have a positive impact.

The 24 December 2008 decree modifies an important decree of 14 May 2007 which introduced Texas Hold’em Poker into casinos for the first time and specified detailed rules concerning the different sequences of the game. The scope of these decrees is limited to casino games’ regulation.

Article 19 of the 2008 decree specifies that “casinos can organize texas hold’em poker tournaments, with prizes at stake, in their gaming room or in premises guaranteeing the same level of sincerity and security in games operations”.

From this article we can infer that the responsibility to ensure sincerity and security in games operations rests on casinos shoulders as though the tournament took place in their own premises.

In order to ensure transparency, tournament rules and conditions shall be transmitted to public authorities and notably to the Home Affair Ministry at least twenty one days before the event.

The decree does not specify any territorial limit to the organization of live real money Texas Hold’em Poker tournaments. In theory, a casino is thus authorized to organize such tournament every where in France as long as honesty and security are ensured.

The decree also relaxes the regime applicable to preliminary tournaments (2) originally limited to 100 per casino and per year. The amount of such tournaments is no more restricted and following article 20, casinos are no longer required to award cash money to winners but can offer stakes for another tournament.

If the new decree makes casino games’ regulation look more flexible, there is no doubt that public authorities will keep on imposing a strict control. Nevertheless these measures are favorable to casinos who are now free to organize larger and plentiful events.

(1) Casinos’ representatives firstly requested a tax suspension and the right to operate casino games online

(2) Small tournaments in which the winner gets the right to take part in a major tournament at least cost. Such tournaments are organized before the main event to attract more people to major tournaments.

Source: Arrêté du 24 décembre 2008 relatif à la réglementation des jeux dans les casinos, JORF n°0303 du 30 décembre 2008 page 20411, texte n° 40, NOR: IOCD0829527A

Breaking of state-monopoly in Sweden recommended

A public commission in Sweden has suggested that the monopoly should be broken up, at least partially.

A local media report, highlighting that Sweden’s state-monopoly on providing betting has been criticised by the European Commission for violating the EU competition regulations, has shared that the commission proposes that companies other than Svenska Spel shall get the right to offer sport betting in Sweden.

They also say that foreign betting sites on the Internet which do not fulfill the criteria to operate in Sweden shall be blocked.

According to stockholmnews.com, the commission wants the monopoly to remain on Internet poker and casino since these are considered particularly dangerous for people with gambling problems.

“Svenska Spel brings in large amounts of money to the Swedish state every year. A big part of its profit also goes to the sports movement. But the most common defense for the monopoly is that Svenska Spel is suppose to take more responsibility for people with gambling problems than the private companies. Critics say however that this is just an excuse and that the real purpose is to get more money for the state,” reported the publication.

Meanwhile, another report has indicated that an official study of Swedish gambling legislation has recommended the introduction of a licencing system that would divide gambling offers on the basis of their risk to players, and proposes that Svenska Spel be allowed to maintain its monopoly over land-based casinos, lotteries and online poker. But with the changes not scheduled to take effect for a further two years, observers question whether the proposals will be enough to placate the European Commission in Brussels.

RGA urges authorities to address unfair restrictions

The Remote Gambling Association has welcomed the French Council Presidency initiative to review gambling laws and calls on the European Commission to continue infringement proceedings against Member States.

According to the RGA, these efforts should not, however, slow down infringement proceedings against Member States that are failing to apply EC Treaty rules in this area.

Referring to issues such as crime prevention, consumer protection and the maintenance of public and social order mentioned in the Presidency report , the RGA said it agrees that these are all worthwhile objectives, but believes it is important to remember that the online gambling industry already addresses these issues through codes of practice established by the industry itself and through compulsory licence conditions in the European jurisdictions where they are based and regulated.

Clive Hawkswood, chief executive of RGA, said: “All RGA members already operate to our own code of practice on social responsibility. Codes such as these, combined with existing regulations in EEA jurisdictions that issue online gambling licences already set high standards for consumer protection.”

Going forward, the RGA called on the Council to give greater attention to another issue addressed in the Presidency report: the rulings by the European Court of Justice on the opening of national markets to competition from operators who are licenced in other EU jurisdictions.

“The freedom of establishment and the freedom to provide gambling services across internal EU borders are set down in the EC Treaty. Several Member States, however, have yet to amend their gambling laws to take account of this and Commission infringement proceedings against those States are still outstanding. The RGA urges the Council and the Commission to address these unfair restrictions as a matter of priority because not only do they constitute a clear breach of EC law, but they are also unfairly restricting the growth of many well established and responsible online European companies and reducing consumer choice,” stated the RGA.

“You cannot address standards and Member State involvement without mentioning the basic principles of access to markets for online gambling operators licensed in Europe. We hope that any future iteration of this report will make this abundantly clear and serve as a starting point for further consideration of these issues,” said Hawkswood.