7 9 September 2008

News:

UEFA is to create a database of players, officials and clubs suspected of being involved in suspicious betting as part of its plans to create a new anticorruption unit, announced at the 26 September Executive Committee meeting of the European football governing body in Bordeaux.

The European Commission has formally requested that Portugal amend its discriminatory legislation on the taxation of lotteries, which applies to foreign-based operators, but not to domestic operator Santa Casa de Misericordia de Lisboa. The Commission said that if the Portuguese government does not amend its law within two months, the case may be referred to the European Court of Justice (ECJ).

A dispute over why US authorities are targeting 'illegal' online gambling operators based in the EU, but not in the US, could head to the World Trade Organization, after US authorities failed to offer an explanation at a 15 September meeting with an EU trade delegation.

Features:

UEFA's approach to tackling corruption in European football caused by betting is interesting and thorough, but perhaps it does not go far enough. Sport has historically had two main threats to its integrity - and therefore its revenues - doping, and corruption related to gambling.

House Financial Services Committee Chairman, Barney Frank, has introduced the Payments System Protection Act, which would force a definition of 'unlawful internet gambling' as described in the Unlawful Internet Gambling Enforcement Act. Martin Owens, Attorney at Law, examines the bill's chances of being passed by the House of Representatives given the current financial climate, which he argues could represent the perfect environment for reform of the US' gambling laws.

On 9 September 2008, the First Chamber of the Dutch Senate approved a bill amending the Dutch Gaming Tax Act (DGTA), placing focus on online gaming winnings from foreign operators only, while directly taxing domestic operators. Justin Franssen and Igor Groenewegen, of Van Mens & Wisselink NV, discuss the consequences for both domestic and foreign online gaming operators and online players.

A Maltese Court ordered the seizure of Boss Media AB's Maltese servers, after Trillion Limited, the operator of an online poker site, filed an application claiming €5 million in damages after Boss Media removed the company from its International Poker Network for alleged rake back violations. Adrian Vella, an Associate with Mamo TCV Advocates, explains how the application almost resulted in the seizure of Boss Media's servers - Trillion Limited has since withdrawn all claims made against Boss Media.

While online gambling is considered illegal in China, offering prizes for online games and contests is permitted, and such prizes are unlimited. Ping Chu, an Associate with the Shanghai office of Sheppard Mullin Richter & Hampton, explains how foreign operators of E-sports games can receive a permit to enter the market by partnering with Chinese companies or investors, or through licensing games to Chinese operators.

The Danish government is imminently due to present a report suggesting possibilities for a liberalisation of Denmark's gambling regulations, which is expected to include the possibility of offering online gambling. Henrik Norsk Hoffmann, an Attorney at Law with Lett, examines the current regulations, the government's relationship with state operator Danske Spil, key cases that have contributed to the pressure for change and the progress of that change.

The Norwegian Parliament is considering introducing legislation to criminalise payments made to overseas gaming sites, which are illegal under Norwegian law. Rolf-Francis Sims, Senior Advisor to the Norwegian Ministry of Culture and Church Affairs, explains the pathway to legislation.

The Czech Ministry of Finance has stopped work on an amendment to its Act on Lotteries and Other Similar Games of Chance which was designed to prohibit online gambling, and has been instructed by the government to draft new legislation specifically targeting online gambling. Eva Adamcová, of Peterka & Partners, examines the progress of the new legislation and the chance of it opening the door to online gambling operators to offer services in the Czech Republic.

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