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Welcome to the
September issue of the G4 Newsletter


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- AUSTRALIA -

Crackdown on minors in casinos

The Queensland Government will this week toughen fines to stop people under 18 from entering and gambling in casinos.
New laws to be introduced to state parliament, which sits for three days from today, lift the penalty for a casino operator, employee or agent who allows a minor to enter or stay in a casino from $1500 to $7500 for the operator and $3000 for the employee or agent.
The laws also include a maximum penalty of $15,000 for allowing a minor to gamble or even try to gamble.
Adults who help minors enter casinos will also face fines.
The Government will also this week introduce new laws clarifying who requires "blue card" clearance to work with children.
The blue card check is a detailed national check of a person's criminal history, including any charges or convictions. It also examines any past disciplinary action or police investigation information.
The changes to go to parliament will spell out in detail that anyone providing health services to children which involve physical contact or who provide a service to a child who is alone will be required to obtain a blue card.
People who provide counselling or support services to a child on a one-on-one basis or over the phone or Internet will also be required to obtain a blue card.
But doctors and other registered health practitioners remain exempt from the checks.
Sunday Times, AU, 21 August 2007


- The Netherlands -
Dutch postal code lottery goes clear for 'psychological damage'

The Dutch Postal Code Lottery is not responsible for the woman who claims to have suffered mental damage for not winning any prices. This was decided by the Amsterdam court yesterday. The Jackpot fell in the Hoogstraat, Heusden early last year. Eight participants in the lottery had to share 13.9 million euros.
Helene de Gier, who lives in the same street, won nothing as she did not purchase any lottery tickets. Together with her partner she decided to sue the lottery. The indictment; suffering mental damage for not winning the price, including the public character of it. “To use postal codes as a lottery number, the Dutch Postal Code Lottery not only uses private postal codes without permission of the people who decide not to participate, but also emphasises the losers” was the argument. De Gier demanded compensation for the suffered damage. The court did recognise that a contrast can be created by the lottery in a small community like the one she lived in. The Dutch Postal Code Lottery reacted pleased with the end verdict.
22 June 2007, Haarlems Dagblad


- The Netherlands -
Minister: Make more room for games of chance

In order to have a good Dutch gambling policy a controlled extension of gambling is allowed. Last month the Minister of Justice Hirsch Ballin wrote this  as a response to the criticism by Euro-commissioner McGreevy (internal market) on the Dutch gambling monopoly. The minister’s response was sent to the House of Commons on Wednesday. One day after a critical letter from Brussels that had leaked out.
According to McGreevy the Dutch gambling policy is in conflict with the European rules. This because of foreign gambling companies being kept out. The Netherlands claims that the current restrictive gambling policy is necessary to reduce gambling addiction and illegal gambling. But in the letter that leaked out it is shown that McGreevy is not in the least persuaded. He thinks that extension of the numbers of games of chance in the previous years and the increase of advertisements for gambling and sports betting are in total conflict with the objectives of the Dutch government.
McGreevy claims that that he has been misinformed by the Netherlands about (the descending) advertisement-expenditure of the Lotto. Spendings on publicity would respectively lie in the range of 14.1 million euros in 2004, and 12.6 million euro in 2005,but according to figures  mentioned in the annual year rapports the spendings show almost half as much more. Furthermore the number of advertisements by Lotto, according to data of the research company Nielsen Media, have increased by 42 per cent between the years 2002 and 2004.
According to McGreevy the recently established publicity code is nothing more than a hoax. The Euro-commissioner also places question marks at the results of some research that  suggests that the amount of problem gamblers in the Netherlands have decreased.
Volkskrant, 24 August 2007


- South Africa -
Online gambling bill slated in Parliament

Linda Ensor - Cape Town
Proposed legislation on online gambling has been met with a groundswell of opposition, with calls for the bill to be sent back to the drawing board because the government has not thought it through fully.
Outright opposition to the National Gambling Amendment Bill, or concern about its flawed nature, were the overwhelming responses by those making submissions during a parliamentary public hearing yesterday.
The bill is intended to decriminalise and regulate interactive, or online, gambling.
Casino Association of SA (Casa) chairman Jabu Mabuza told the trade and industry committee there had been insufficient consultation on the "woefully insufficiently researched" bill, which was being pushed hastily through Parliament.
Concern was expressed about the proposal to limit the number of interactive gaming operators. This could exclude operators from other countries and so contravene international treaties, the committee was told.
Submissions to the committee were also made by the Financial Intelligence Centre (FIC), which was concerned that interactive gambling could facilitate money laundering. Casa argued that the bill needed more work as it did not provide for the taxation of online gambling.
The Congress of South African Trade Unions (Cosatu) criticised the negative consequences gambling had on the poor.
The FIC proposed improvements to the bill it believed would close loopholes left open for money laundering. The bill, it said, should include licensing and probity checks of operators.
The regulator should also be empowered to block unlicensed interactive casinos from carrying on business in SA and block the flow of funds to them.
The FIC also warned that the cost of regulation of the interactive gaming industry was likely to be "substantial" because of its cross-border nature.
Dealing with jurisdiction, the FIC recommended that licensed operators should be required to subject themselves to domestic laws.
Mabuza highlighted a lack of tax proposals. "Whatever happens in the industry turns on the level of taxation, which has to be fair and equitable," Mabuza said. "There has to be a level playing field."
To ensure consistency and fairness, interactive operators ought to pay a rate of tax no less than that paid by other sectors of the gambling industry.
Another concern was that interactive gambling operators should be subject to the same stringent requirements as other operators, for example, on black economic empowerment, probity and prohibitions on underage gambling.
The association said unless online gambling was dealt with on the same terms as other forms of gambling it should be dealt with under another law instead of its provisions being incorporated into the National Gambling Act.
Cosatu called for the bill to be rejected as it was opposed to the expansion of legalised gambling.
Business Day, 23 August 2007


Sweden -
Swedish government plays for time as it defends monopoly

The Swedish government this week rejected the European Commission’s (EC) claim that it violated European law and defended the protection of its state monopoly Svenska Spel by saying that Swedish laws were proportionate, provided social protection and prevented crime.
The EC had asked the Swedish government in late June to justify its policies towards private online betting and gaming operators as they violated European law under Article 49 of the European Treaty regarding the free movement of trade and services. The Swedish government will be taken to the European Court of Justice as a result of the stance it has taken, although a decision on the case is unlikely to be reached before 2010.
The news was not unexpected by those involved in the online gaming industry. A disappointed Petter Nylander, chief executive of Unibet, said: “It looks like the market will be opened up by European Commission rather than the government and it doesn’t make any political logic (for the Swedish government). However, from a financial point of view, the gambling monopoly is one of the biggest cash cows for the government and it doesn’t want to change the current set up.”
Sources in Sweden told eGaming Review that the move was merely a ploy to buy the government more time. One source said: “There is friction within the government because it got to power by promising tax cuts on real estate and wealth. By holding onto Svenska Spel’s monopoly for at least another two years, it keeps in place huge tax revenues which make up the shortfall from any cut in other taxes. The government knows the European Commission is a slow moving animal so really this is a cynical move to play for time.”
Martin Arnell, analyst at Stockholm-based brokers Carnegie, said: “Short- to mid-term we see no large implications on Unibet and Betsson. Longer term, we expect the European gambling market will be more open which could open up for additional marketing channels and further reduce the perceived political risk.”
On Tuesday, the European Commission gave France and Greece a two month extension to respond to the reasoned opinions it sent them back in June over their protectionist measures relating to online gambling and betting.  The new deadline for those two countries is now 29 October.
eGaming Review, 31 August 2007


United Arab Emirates  -
Five billion dollars

Dubai World, a state enterprise from the Gulf State, invests 5 billion dollars in the American casino operator MGM Mirage. Approximately half of the investment is used for MGM Mirage shares, the other half goes to CityCenter, a large casino project in Las Vegas which is presently built. CityCenter, that among others exists of a hotel with four-thousand guestrooms, 2,700 apartments, and fifty-thousand square meters of shopping centre, will become a joint-venture of Dubai World and MGM Mirage.
Earlier this month a daughter company of Dubai World bought the New York department store Barneys for 1 billion dollars. Last year another daughter company was forced to give up  the exploitation of American ports and became headline news.
They had bought the American ports from P & O  for 7 billion dollars, but the American congress blocked the agreement because it could provoke terrorist attacks.
Volkskrant, 24 August 2007


United Kingdom  -
Remote gaming duty introduced

On Sept 1 HM Revenue and Customs will introduce a tax on gaming profits of remote gaming operators on September 1, to coincide with the full implementation of the Gambling Act 2005.
The remote gaming duty will be 15% of a remote gaming provider’s profits at the end of each accounting period.
All remote gaming providers with an operating licence are liable unless already liable to another UK gambling duty. Remote gaming duty is also chargeable on the illegal provision of remote gaming in the UK . Examples include a position, in Great Britain , where the provider is not licensed to provide such gaming or, in the case of Northern Ireland , where remote gaming provision is prohibited
ATE Online, 15 August 2007


United Kingdom  -
Unibet to partner with Liverpool for next three years

Unibet has signed a partnership with Liverpool football club to be the Merseyside club’s exclusive betting and gaming partner for the next three years.
Unibet will develop a Liverpool-branded gaming site that will be launched later this year and will offer sports betting, poker, casino and other Unibet products.
Unibet will also be running a series of competitions with prizes including VIP tickets, signed shirts and stadium tours.
The Swedish bookmaker already had perimeter advertising boards at the club’s Anfield ground and has now entered the UK betting market by signing up with one of the most recognised football clubs in the world.
eGaming Review, 24 August 2007


United States  -
Ohio one step closer to being gambling-free

By Bryn Hough 
TALLMADGE -- Ohio's Governor has given the go-ahead to crack down on gaming parlours with the hope of driving their machines out of state.
In Tallmadge, two parlours have been so successful that they've generated more than $87,000 for police education and training.
Even with those dollars coming in, Mayor Christopher Grimm says he would love to see and end to gambling in his city.
"The impact you have on this type of business is much greater than the $87,000 we receive. And the negative impact the city receives from having them in our community."
Ohio's attorney general has issued an emergency ruling, making it a crime to market gambling devices as "games of amusement."
Marc Dann plans to send letters giving establishments three days to take their machines out of service. 
Akron/Canton News, 23 August 2007

 


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