Gambling News
On January 1st the new and controversial Belgian online gambling legislation entered into effect. While the legislation further liberalizes the online gambling market by allowing companies to acquire new licenses, it forces ISPs to block citizens' access to unlicensed websites.
Just after January the 1st of January the Belgian online gambling licensing authority has announced that three new companies decided to acquire a new online gambling license. These companies were revealed to be PokerStars.be, Partouche.be, and Casino777.be.
These companies did already offer services on the Belgian market in the past as well, but they did not own a valid Belgian online gambling license. On the other hand, all three are licensed in various other European countries which accounts for security and reliability.
The reason for these companies for acquiring a Belgian license is that the Government beginning January 1st is threatening to blacklist unlicensed operators and force ISPs to block Belgian citizens' access to these websites.
This week the four major Belgian ISPs announced that they will support the Government in cracking down unlicensed online gambling operations. This announcement came after the same ISPs commented in December that they do not agree with the new Belgian legislation.
Their decision to support the newly adopted legislation was probably made because the Government threatened the ISPs with heavy fines in case they would not comply. According to this, at the moment there are several dozens of renowned international online gambling companies providing services in Belgium that risk to be banned soon.
The new online gambling legislation that just entered into force in Belgium received heavy criticism last year from operators, ISPs, but also from the European Commission. The EC argued that the new legislation is against EU guidelines and should be dropped.
Despite the heavy criticism the Belgian Government decided to move forward and adopt the legislation in its initial unmodified and highly controversial variant. Government officials argue that unlicensed online gambling operations contribute to a huge loss in online gambling tax revenue, a problem they hope to solve with this new legislation.
Gambling News
Federal prosecutors may have cracked opened the door for individual U.S. states to operate Internet Poker websites without Congress passing online poker legislation.
The U.S. Department of Justice announced Dec. 23 that it revised a long-standing opinion on the federal Wire Act of 1961, which made all forms of Internet gambling illegal. The new opinion, sought by the New York and Illinois lotteries, Justice Department attorneys said the Wire Act applies only to sports wagering, not to the sale of lottery tickets over the Internet. The reinterpretation seemingly cleared a path for federally regulated Internet poker websites catering to American gamblers.
The race is on to legalize Internet poker by several states following the U.S. Department of Justice's Dec. 23 ruling that says the Federal Wire Act of 1961 applies only to sports wagering.
California:
State lawmakers are considering two online gaming bills for early 2012. The first bill focuses solely on regulating Internet poker. The second bill looks at other forms of Internet gaming, in addition to poker.
Nevada:
The Nevada Gaming Commission approved online poker regulations on Dec. 22 that will allow legal, licensed and regulated Internet poker to be played within state borders. Gaming equipment manufacturers and casino operators have filed Internet gaming license applications. The attorney general's office is reviewing the Department of Justice's opinion.
Illinois:
Legislation that would allow an online lottery was approved in 2009. The Department of Justice opinion permits the sale of online lottery tickets and reopens the possibility of poker within the state.
Iowa:
In December the Iowa Racing and Gaming Commission filed a report outlining how the legislature could regulate the playing of online poker in Iowa. The commission estimated online poker operations could generate between $3 million and $13 million of new tax revenue.
New Jersey:
Gov. Chris Christie has indicated his support for a bill to legalize online poker within the state. Christie said he would only sign the bill if it only involves Atlantic City casinos. Last year, Christie vetoed legislation that would have legalized online gaming in the state. He said the law contradicted the state constitution and federal regulation.
Washington D.C.:
The District's council passed a bill in 2010 that allowed pre-approved users to wager money and play online poker on home computers or laptops in certain public areas. But implementation through the D.C. Lottery stalled over concerns of its legality. Council members are reconsidering the program following the Department of Justice opinion.
The Obama administration gave states and the gambling industry an early Christmas present December 23 in the form of a controversial Department of Justice (DOJ) opinion that reversed years of federal policy covering online gambling. As reported by Reuters News Service, previously the DOJ had held that “
online gambling in all forms was illegal under the Wire Act of 1961, which bars wagers via telecommunications that cross state lines or international borders.” The recent DOJ opinion, dated in September but released only in late December, makes the qualification that “[i]nterstate transmissions of wire communications that do not relate to a ‘sporting event or contest’ fall outside the reach of the Wire Act.”
Law professor and gaming industry consultant I. Nelson Rose told the Times that the DOJ's opinion represented “quite a Christmas present” for both the online gaming industry and states who see Internet gambling as a potential tax revenue gold mine. “Given the continuing budget crisis, and so many states looking for ways to raise money, it’s really a major decision.” Writing on his blog site Gambling and the Law, Rose predicted that the DOJ opinion would mean the elimination of “almost every federal anti-gambling law that could apply to gaming that is legal under state laws.”
The 2006 law facilitated the high-profile federal takedown of three popular online gambling sites — Full Tilt Poker, PokerStars, and Absolute Poker — with the operators facing charges of fraud and money laundering. Because the three websites are based in Antigua and the Isle of Man, they are beyond the arm of American law. But because the companies running the sites had to use American banks to process the transactions of the millions of Americans who used the sites, the DOJ was able to charge the companies with violating the 2006 law that restricts such payment transfers. However, because the restrictions do not to apply to financial transactions within a state, the latest DOJ opinion opens the door to allow states to set up poker and other non-sports-related online wagering.
The much-anticipated opening/regulation of the Danish Gaming market is scheduled for the 1st of January 2012. The Danish Gambling Authority has revealed the initial list of companies that have been approved for Internet gaming licenses (see below).
The Minister of Taxation Thor Möger Pedersen stated: “From January the gambling market will be orderly and we will ensure that holders of a betting and online casino licence to operate on the Danish market also contribute to the society. Danes as well as the many associations supported by the gambling market can be joyful.”
The history of the Danish Gaming started at the turn of the millennium when gaming reached new heights on the Danish market. This development reflects the fact that the majority of Danes now consider gaming as an ordinary entertainment, and that many enterprises employ gaming as part of their promotional strategy.
Apart from the aims of protecting the gambler and combating organized crime, one of the historically most important considerations in the Danish model is to support charitable and non-profit organizations.
The Danish Gambling Authority (DGA) has granted initial licenses to the following holding groups:
- 888 Denmark Limited, Gibraltar
- Betfair International Limited, Malta
- Betsson Malta Limited, Malta
- Bonnier Gaming Malta Limited, Malta
- Cashpoint Limited, Malta
- Cryptologic Operations Limited, Malta
- Danbook Limited, UK
- Danske Licens Spil A/S, Denmark
- Entraction Operations Limited, Malta
- Hillside (Gibraltar) Limited, Gibraltar (Bet365)
- Interactive Sports Limited, Guernsey (Sportingbet)
- Ladbrokes International Limited, Gibraltar
- PKR Technologies Limited, UK
- Reel Denmark Limited, Isle of Man (Pokerstars)
- Unibet Denmark Limited, Malta