5 8 August 2006

News:

The City has been 'surprisingly sophisticated' in its evaluation of the US regulatory risk faced by remote gambling operators, following the arrest by the US authorities of David Carruthers, the then Chief Executive of BetonSports, and the 22-count indictment charging 11 individuals and four corporations of racketeering, conspiracy and fraud.

Recent court decisions, including the prohibition order issued against sports betting operator, bwin, have added to the legal uncertainty surrounding the provision of sports betting services in Germany.

Third party suppliers to US facing gambling operators are set to attend World Online Gambling Law Report's Briefing in London on 5 October, which will analyse the impact on third parties of the recent action taken by the US authorities.

Features:

Three recent editorials in respected US publications, regarding the Goodlate-Leach Bill, are worth noting.

The recent arrest of David Carruthers, following on from the 'NatWest Three' extraditions, along with the progression of HR 4411 to the US Senate, has led many to believe that online gambling faces a bleak future in the United States. Martin Owens, Attorney at law, argues that this is not the case.

With industry operators uncertain over what the implications are for their businesses after the BetonSports developments, Julian Harris and Nick Hawkins of Harris Hagan, set out their advice on conducting business in the United States.

The recent prohibition order issued against Germany's most powerful sports betting provider, bwin, has raised doubts over its legitimacy, particularly in light of the constitutional court decision earlier this year and recent rulings by other German administrative courts. Dr. Wulf Hambach and Dr Hendrik Schottle, Attorneys-at-law at Hambach & Hambach, examine the decision, developments and its implications for German providers.

Despite businesses having to anticipate a relatively high tax burden should they decide to become UK regulated, there are many potential benefits in doing so. In the third and final part of their series of articles, Paul Eagland and Martin Dane of BDO Stoy Hayward LLP, look at the key tax planning considerations for businesses who are looking to exploit the benefits of UK regulation.

A recent paper issued by the Gambling Commission proposes that TV quiz games, long operated under the aegis of prize competitions, are to be considered as 'complex lotteries' and therefore potentially illegal under the Gambling Act. Carl Rohsler and Katherine Conlon of Hammonds, examine the issues.

Despite the limitations imposed on the operation of remote gambling by current legislation, Ireland provides real cost savings for those operators considering locating part of their business in the jurisdiction. Deirdre Kilroy, an associate solicitor at LK Shields Solicitors, examines the latest developments in regulating the industry and the advantages the jurisdiction provides to operators.