The Malta Remote Gaming Council
News
Sweden May open door to foreign Gambling Operators - 05.09.2008
26 September 2008
The government commission that examines gambling in Sweden wants to allow foreign gaming companies to operate in the c ountry. Companies would pay for a licens e to arrange betting on sports events . The Head of the Commis sion stated that the commission had as yet not formulated a proposal for internet poker and other on line gaming. Neither has it been stipulated exactly what the gaming licences would cover and how . The gaming commission plans to submit its final proposal to the government in December this year.
The full article may be viewed at http://www.isa-guide.de/articles/22579.html?tb=1
Discriminatory taxation of gambling winnings: European Commission brings action against Sp
26 September 2008
The barriers erected by the EU and EEA Member States against the cross-border offering of sports betting and gambling have been under the watchful eye of the European Commission for several years. The Commission judges numerous national provisions to be in breach of Community law and has therefore already initiated infringement proceedings against several Member States. The Commission has now filed suit against Spain with the European Court of Justice for not charging income tax on winnings from lotteries organise by the state body responsible for lotteries and betting and some charities but charges income tax on winnings from other national bodies or foreign bodies. The Commission is basing its case on the decisions in the Lindman case and Safir case which dealt with discriminatory taxation.
You can read the full article on http://www.isa-guide.de/articles/21984_...
ECJ: Brokering bets not exempt from Value Added Tax pursuant to the 6th Council Direc
26 September 2008
The European Court of Justice (ECJ) has recently stated that commissions paid to a sports betting agent are not exempt from VAT. The Brussels Court of Appeal (Cour d’appel Bruxelles) had asked the ECJ for clarification as to whether an exemption pursuant to Art. 13 part B letter d no. 3 of the Sixth Council Directive 77/388/EEC should be considered, according to which the supply of certain financial services relating to turnovers resulting from the transfer of bets are exempt from VAT. The ECJ declined this. The Beligian initial proceedings made reference to To bacconists, wh o accept bets on behalf of a bookmaker and then pays out the winn ings to respective betting customers
You can read the full article on http://www.isa-guide.de/articles/22070.html?tb=1
Attention - Operators with a Class 1 license for Casino games
26 September 2008
A few weeks ago we sent out an email advising you that the new Prevention of Money Laundering and Funding of Terrorism Regulations had been published under LN180 dd 31st July, 2008. The new regulations make Internet based casinos subject persons and therefore, any operator with a Class 1 license for Casino games is required to fully comply with the regulations. One of the requirements (Reg 15.(4) (e)) is to appoint an Internal Reporting Officer (more commonly known in jargo as the Money Laundering Reporting Officer [MLRO]) and to notify the Financial Intelligence Analysis Unit (FIAU) and the supervisory authority (LGA) of the details of the appointed reporting officer. Such detials we are presuming would include: name & surname, position within company, address, mobile/telephone number, email address. It is also important to keep the FIAU and supervisory authoirty informed of any changes to the situation. Management Board, MRGC.
Remote Gaming Standards
23 September 2008
The Malta Standards Authority have published the Remote Gaming Standards after two years of work. It is hoped that the local standard will be adopted globally. It is the first National standard related to the remote gaming industry. The stanard covers all aspects of the business, responsible gaming, fairness, risk management and information security, You may buy the standard from the MSA offices. Their website is www.msa.org.mt.
New AMOL regulations published
10 September 2008
The Prevention of Money Laundering and Funding of Terrorism Regulations 2008 (l.n.180 of 2008) have been published in July 2008. Click here to download the document
Donation to MRGC by Systec Ltd
16 June 2008
Mr Wayne Hewitt, Sales Director of Systec Ltd.presented a laptop to the chairperson of MRGC, Daniela Grioli. The laptop will be used by the Management Board''s part time assistant for various administrative duties. The Board would like to thank Systec for their generous donation. Also present in the photo is Mr Ian Curtis, member of the Management Board. Photo
Salary Survey
01 June 2008
MRGC are launching a salary survey to all members and non-members and everyone is asked to participate and return it by the 30th June Click here for more information
Dutch government introduces payment ban against Online Gaming
13 May 2008
A measure that imposes criminal penalties on banks and credit card companies for facilitating Dutch citizens gambling on foreign gaming sites has been confirmed by the Dutch Ministry of Justice.
A dossier of illegal online gaming operators will be given to public prosecutors for further action against those who offer gambling services without a permit in the Netherlands.
Although being warned by the European Commission over its restrictive policies, this move will surely further widen the gap between the two sides and it remains to be seen what further action will be taken by both the Dutch Authorities and the European Court of Justice.
The EGBA supports EC comments on the Italian RG Draft Decree
22 April 2008
The European and Betting Association supports the EC’s decision to issue formal comments on the Italian Decree on Remote Gaming, which imposes burdensome and costly obligations on operators.
This draft decree seeks to impose tight restrictions on the types of games which a player in Italy may bet on, thus potentially reducing competition, to the detriment of the consumers On the other hand, it imposes obligations on the Remote Gaming Operators to connect to the Italian regulator’s centralised system, leading to additional costs and possibly creating a technological barrier for foreign operators.
Meanwhile the Italian Draft decree has also raised concerns from Malta in the form of a Detailed Opinion to the European Commission.
France may partially open its Sports Betting Market by 2010
10 April 2008
The French government is proposing to open its sports betting market to private competition by 2010, however, the intention appears to be to allow state-owned PMU to maintain its monopoly on organizing bets, while permitting private licensed operators to market these bets to customers.
During their presidency commencing in July, the French will try to promote this version of gambling market deregulation, which could gain support from other state members in the EU such as the Netherlands, Finland, Germany and Sweden who have all had clashes with the EU regarding the liberalisation of cross border remote gambling.
Aland considers change in its Remote Gaming laws
03 April 2008
The government of Aland, an autonomous region of Finland, is considering changing the current rules governing the gaming monopoly with a new licensing system. This should seek to attract online gaming companies in order to compete with licensing jurisdictions like Malta and Gibraltar. It is very unlikely to succeed due to heavy Finish tax rates, which are very unattractive when compared to Malta and Gibraltar, considered to be the two leading remote gaming hubs in the European region.
Unibet Loses its Appeal in the Netherlands
03 April 2008
Unibet has lost its appeal against the Dutch state lottery. In its verdict the court said it found no inconsistency between the Dutch Betting & Gaming Act and European Law.
This is the second time that the Dutch court has ruled against Unibet; In October 2007, the same court ruled that Unibet should, with immediate effect, stop gaming/betting services to Dutch citizens; pay the Dutch state lottery’s legal costs and was fined €100,000 per day up to a maximum of € 3 million, if Unibet ignored that ruling and kept offering these services to Dutch citizens.
Last week, this same court found Unibet guilty of breaching the Dutch gaming act, enforcing the ruling of € 100,000 penalty per day.
This ruling, together with that of Ladbrokes, could further widen the rift between the Netherlands and the European Commission, which gave the Netherlands up to the end of April to bring its laws in conformity with its obligations under the EC Treaty. It is to be seen how the European Commission will react to this latest ruling. It is hoped that it comes down hard on the Netherlands.
Betfair wins in Western Australia
03 April 2008
The Australian High Court has ruled in favour of allowing Western Australian residents to legally place bets with the licensed online betting exchanges.
In 2007 the state government had passed several laws banning local residents from placing bets with betting exchanges, claiming that it undermines the industry’s integrity if companies are allowed to offer ‘lay bets’ where a wager can back the loser in a race.
Betfair challenged the validity of these laws by bringing the case before the Australian High Court. The High court ruled (in what is being considered as a landmark case) in favour of Betfair citing that the ruling of the State Government imposes discriminatory and protectionist burdens on the interstate trade thus contravening Section 92 of the Australian Constitution which protects the freedom of trade between states.
This court also allowed Betfair to publish race fields between Tasmania, where the company is licensed, as well as in any other state.
Meanwhile the State government and the industry claim that this decision will adversely hit the Western Australian racing industry.
Investigation into discrimination by US
11 March 2008
The handling by the US of online betting companies, and the officials of said companies, hailing from the EU should be investigated on the grounds of possible discrimination.
The Remote Gambling Association (RGA) had raised a formal trade complaint which said that the US was in violation of international trade law by threatening and pressing criminal prosecutions against foreign online gaming operators while allowing domestic US horse betting operators to flourish.
Shareholders are waiting to see the outcome of such actions by Mr Peter Mendelson, the EU trade commissioner.
France warned by EU Commission
04 March 2008
France''s draft law to oblige banks to block payments made by French citizens to online betting companies has come under challenge by the EU Commission.
The EU commission issued a detailed opinion outlining why the French draft law breaks EU rules on the free movement of services and gave them until the 31st March, 2008 to change the proposed laws. Non compliance within the specified period will open the doors for immediate infringement procedures to be taken.
Malta, a major player in the online gaming industry within the EU has added its name to the detailed opinion.
This action follows other actions taken by the Internal Market Commissioner, Mr Charlie McCreevy, in recent weeks against Germany, Greece and the Netherlands in a bid to liberalise cross border services within the EU.
Greece and Netherlands formally requested to change their laws
03 March 2008
The EU commission, in the second stage of the infringement procedures against Greece and the Netherlands, found that the restrictions on gambling services have not been shown to be necessary, proportionate and non-discriminatory. They have been asked to amend their laws and allow the free movement of gambling services. If they do not reply satisfactorily within two months the EU Commission may refer the matter to the European court of Justice.
The complaint against Greece refers to sports betting and other games of chance whilst the Netherland complaint only deals with sports betting.
The decision is based on a previous ECJ ruling that clearly stated that protection of consumers must be consistent and systematic in the limitation of gambling services. Consequently, Greece and Netherlands were found to be not following this court decision when blocking gambling activity from companies licensed in other states.
This decision is another in a serious of EU decisions that will open up the EU market for online gambling companies licensed in Malta.
A Precedent set in French Courts with possible serious implications
14 February 2008
Using the name of a football team in any text on the website, other than is completely necessary to offer the bet, was found to be counterfeiting the name. In a Civil court in France the use of the trademarked word ''Juventus'' by Unibet and William HIll in slogans or comments used to promote their online betting activity was deemed to be ''counterfeiting'' as it was necessary for the placing of a bet. Unibet and William Hill were fined €1 each which was to be paid to Juventus but they also had to pay the legal fees amounting to €10,000. Does this mean that betting companies offering bets on Tennis, formula 1, football have to be careful everytime they use a particular word on their website. Could this be the next hurdle that the French Tennis Federation will use in an attempt to prevent sports betting companies offering bets on the French Grand slam, Roland Garros. Time will tell!! MRGC Management Board.
MRGC will be exhibiting at ICEi in London
17 January 2008
MRGC will be exhibiting at this year ICEi exhibition in London on Jan22-Jan24. The MRGC will be on the stand together with the Malta Lotteries and Gaming Authority. Members of the board will be manning the stand. We look forward to meeting you.
Ban on Online Gaming in Germany
09 January 2008
Unfortunately, 2008 has started pretty much where 2007 left off. The first news item relating to online gambling is about a ban on the industry by Germany. Court cases have already gone against a number of German states, such as Hessen. The state had tried to ban online gambling, and the court ruled that it was impossible to create a law to ban online gambling as it could not be implemented and this fact made it ''null and void". In spite of this and other rulings and EC law, all 16 states agreed to impose a ban starting from 1st January, 2008 which should last till 2011. Betting companies are already gearing up for legal action and in fact, the feeling is that this law will soon be overturned as it breaches EU law and there are already precedents against these draconian measures. The MRGC is holding a meeting to discuss whether to take legal action against the German state.
Meeting for members - 7th December 2007
30 November 2007
A meeting was held on the 7th December 2007 at the Corinthia San Gorg
at 15:00 hrs. During this meeting the following issues were discussed:
- "Agreements for the shared conduct of a remote gaming business - Their regulation and ancillary matters." Presented by: Deloitte
- Discussion and feedback about the consultative Document on the Transposition of Directive 2005/60/EC of the European Parliament and of the Council of 26th October, 2005 on the Prevention of the use of the Financial System for the purposes of Money Laundering and Terrorist Financing.
(Document can be found on www.fiumalta.org) Presented by Alan Alden, MRGC Management Board.
Unibet CEO arrested - The French are at it again!
23 October 2007
Peter Nylander, the CEO of UNIBET was arrested whilst boarding a flight in Holland. In a move that has outraged everyone who believes in the EU and what the EU Treaty stands for the French have really outdone themselves this time.
The Unibet acting CEO Ragnar Hellenius commented: "This is clearly a breach of the EU Treaty and the fundamental principles of the European Union."
France have lost all their cases both at EU level and in their high courts but appear to be capable of doing anything to protect their monopolies!! UNIBET has a remote gaming license in Malta, Italy and the UK, all of them EU member countries.
LN270 of 2007 - Submission of Audited Financial Statement
18 October 2007
This Legal Notice improved upon two requirements. Firstly, Article 4 has been changed so that any body corporate registered with the MFSA can be granted a license.
Secondly, the time period for the submission of the audited financial statements has been extended from 60 days to 180 days.
These positive changes will be well received by the remote gaming operators and auditors alike.
AGM announced - 25th October, 2007
17 October 2007
The MRGC Annual General Meeting will be held on the 25th October at 13.00 at Le Meridien, St Julian's.
Please remember to register if you are going to attend by sending an email to info@mrgc.org.mt stating member name and number and names of attendees. Only one vote per paid up member will be allowed.
See you there!!
NSO Workshop - 2nd Aug 2007
24 July 2007
The NSO Workshop was held on Thursday 2nd August and was well attended. Click here for more information & registration.
French court of appeal challenges PMU
11 July 2007
The Cour de Cassation, which is France's highest court of appeal has ruled that the PMU could not be justified for seeking sanctions against Zeturf, which is a Maltese company licensed to operate an online betting service from Malta, an EU country. The only way that such sanctions could be justified is if they formed part of a coherent and comprehensive plan to combat crime.
This ruling follows closely the ruling just released by the European commission which has given France and Sweden two months to justify their actions which are preventing newcomers from entering the market. It is quite clear that the monopolies are taking unjustified actions to protect their markets and revenues.
German Treaty to Ban all Private Operators can be passed
11 July 2007
It is being said that the German state of Schleswig-Holstein could decide to ratify the draft Interstate Lotteries Treaty. In December 2006 the Treaty was not passed when the state of Schleswig-Holstein failed to ratify it. All states have to ratify such a treaty for it to be passed. The treaty seeks to ban private operators from offering their services to German citizens. Schleswig-Holstein’s decision will likely bring the German regional authorities into conflict with the European Commission which has just started phase 2 proceedings against France, Sweden and Greece for restricting freedom of cross border services related to remote gaming.
EC takes action against France, Greece and Sweden
27 June 2007
The Commission acts to remove obstacles to the provision of sports betting services in France, Greece and Sweden
The European Commission has taken action to put an end to the restriction over the free movement of sports betting services being implemented by France, Greece and Sweden. The Commission has formally requested France and Sweden to amend their laws after consideration of their replies to the letters of formal notice sent to them in April and October 2006 - IP/06/436 and IP/06/1362 refer.
These formal requests take the form of "reasoned opinions", this is the second stage of the infringement procedure as laid down in Article 226 of the EC Treaty. If no satisfactory reply ios received within two months, the Commission may refer the matter to the European Court of Justice. With regards to Greece the Commission has decided to send an official request for information on national legislation restricting the supply of sports betting services. This takes the form of a letter of formal notice, the first step in the Article 226 infringement procedure. Greece has two months in which to respond.
The latest information on infringement proceedings against Member States can be found at the following URL:
http://ec.europa.eu/community_law/eulaw/index_en.htm
Could EC seek compensation from US?
27 June 2007
Last Wednesday at a meeting of the World Trade Organisation, the EU and Antigua and Barbuda lodged a complaint against the United States of America for ignoring previous WTO rulings and going ahead with the ban of remote gambling.
Antigua and Barbuda are seeking compensation in the region of USD3.4 Billion a year in lost revenues from the industry. The EU is looking for compensation in the form of unspecified market access for its service companies. The US intends to defend these claims based on the fact that none of the parties, which could also include Japan, made any committments at the Uruguay Round towards gambling and betting.
If the US lose they will seek arbitration so an end to this matter is not close.
Regulation instead of prohibition in the US?
11 June 2007
Bills are being proposed which counter the Unlawful Internet Gambling Enforcement Act, a very unpopular bill, by proposing licensing and regulation. It could also solve the WTO issue that the US had with Antigua.
Google increase gambling ad ban
11 June 2007
Google has now extended its gambling ad ban to also include Play for Fun gambling sites. This move has drawn criticism from various quarters namely gambling community and the UK press.
US congresswomans call for 1 year study
09 May 2007
Congresswoman Shelley Barkley’s call for the National Academy of Sciences to provide a one-year study of the growth of online gaming was announced late last week. Barney Frank who himself is proposing a bill to legalise and regulate online gambling is co-sponsoring her bill.
US unexpected reaction to WTO decision
09 May 2007
Antigua and Barbuda were very disappointed with the US decision to remove internet gambling services from the scope of its General Agreement on Trade in Services committment. The US trade representative stated that it intends to clarify its commitment involving recreational services which was interpreted by the WTO in the recent dispute with Antigua and Barbuda as including a US commitment to allow internet gambling.
EC supports Unibet in ASO-UCI row
07 May 2007
Unibet has gained the support of the EC in their fight against being banned from participating with their cycling team in classic races. The team has not even been allowed to participate without the Unibet logo.
The EC has stated that the French consistency is very questionable given that other teams are sponsered by gambling operators.
Meeting of the 4th May - NSO
07 May 2007
The meeting held by the MRGC at the San Gorg Corinthia was addressed by the NSO who provided feedback on the information gathered for 2005 and provided some hints about figures for 2006. There was good news in that an abridged version of the annual questionnaire has been designed for quarterly feedback.
Following comments by some of the attendees a workshop is to be organised on the electronic version of the questionnaire. Operators should co-operate better and provide more timely feedback to the NSO.
Barney Frank - Legalising online gaming in the US
30 April 2007
Barney Frank's new bill will seek to license and regulate online gaming in the USA. Its been met with mixed reactions as it is not clear whether foreign companies will be allowed to enter the market.
Antigua also welcomed the bill after their WTO victory and believe that they should be allowed access to US customers.
MRGC meeting on the 4th
30 April 2007
Have you booked your place for the meeting of next Friday? If not send an email to info@mrgc.org.mt asap!!
EC urges German Regions to rethink online gambling policy
04 April 2007
German regions involved in trying to create a ban on online gambling have been urged to rethink their policies regarding the limiting of foreign competition in their local betting industries. It marks the latest clash in which the European Commission has gone after EU countries which restrict gambling to state-run monopolies.
Germany will have till the end of 2007 to rectify the situation and move towards allowing other EU internet gaming companies to operate within its borders.
Remote Gaming Standards issued for Public Enquiry
04 April 2007
The Malta Standards Authority has issued the remote gaming standards for public enquiry. The public have until the 8th June, 2007 to submit any comments and are encouraged to do so. For a copy of the draft standards and the comments form please email robert.grima@msa.org.mt
WTO rules in favour of Antigua against USA
30 March 2007
The WTO ruled that the ban on offshore Internet gambling payments is illegal, upholding a previous decision that allowed for possible sanctions.
Shares in publicly listed companies have risen following the news. However, it is not yet clear whether this ruling will open up the US market.
US spokesman said that the report allows it to maintain a ban on Internet gambling to ``protect public order and public morals'' as long as it doesn't discriminate against foreign companies.
EC rules against Denmark, Finland and Hungary
26 March 2007
The European Commission has taken action to remove restrictions on the free movement of sportsbetting services in Denmark, Finland and Hungary. These findings follow on from the infringement procedures initiated against these countries in April 2006.
Germany, France and Austria also have infringement procedures initiated against them and it is hoped that the results will be the same.
UK Gaming Tax Announced
21 March 2007
The Chancellor has announced a 15% Remote Gaming Tax which has virtually shut the door for attracting new operators and possibly a signal for existing ones to transfer to other EU jurisdictions where they may compete better with other operators. There, however, will not be VAT charged on remote gaming transactions.
ECJ Rules in favour of UNIBET
16 March 2007
Another landmark victory in the European courts for Remote Gaming operators. Unibet can advertise in Sweden until the Swedish Supreme Court makes a ruling. Unibet took action against the Swedish government in December 2003 when they were stopped from operating in Sweden. It seems that state monopolies are running out of time!
UIGE Act - Congressman to try and repeal it
16 March 2007
It appears that congressman Barney Frank is currently working on legislation to repeal the unlawful internet gambling enforcement act, which act he describes as one of the stupidest laws ever passed. No time frames have been set but the news has generated a positive feeling with share prices in Partygaming, 888 and Sportingbet all recording a rise.
Placanica Case - ECJ Ruling
07 March 2007
On the 6th March 2007 a major decision was taken in favour of the egaming industry by the European Court of Justice which found that Italy went against community law by charging Placanica and others for collecting bets on behalf of Stanley International.
Turkey Passes Law to Ban Online Gaming
07 March 2007
On the 28th February, 2007 Turkey passed a law which virtually bans online games of chance being provided by foreign companies. Another move by another country to protect the state monopolies and their tax revenues.
Bwin have temporarily withdrawn from the market due to the harsh penalties and prison sentences threatened by the new law. EU commentators have stated that this action goes against a pre-entry agreement Turkey has with the EU about cross border services.
MRGC Meeting of the 6th December
06 December 2006
On the 6th December a meeting was held to discuss the UIGE ACT and other various gaming issues. The meeting was well attended. Afterwards a party was held at Club22 kindly sponsored by BettingJobs.
The presentations of that afternoon event can be found in the members section.
Annual General Meeting
14 June 2006
The Annual General Meeting of the Malta Remote Gaming Council was held on the 28th June 2006 at 17:30hours. Elections for the new Management Board were held and changes to the statute were discussed. An EGM was agreed upon to finalise and approve the changes to the statute.
Updates to website
12 June 2006
The Website is currently being updated to be more informative and user friendly. Please login and look around.