Gambling revenue will grow to $155 billion in 2012 from a 2007 revenue of $114 billion with an annually rate of 6.5 percent per year, says PricewaterhouseCoopers LLP in a report released this week.

Asia, and especially Macau, will be the world’s fastest growing gambling region.

In accordance with this report, the US revenue will decline in 2008, due to the mortgage crisis and high gas and travel price. But, starting with 2010, Las Vegas will expects a new raise.

Online gambling and sports betting is expected to have a 4.9% yearly increase in Europe, the Middle East and Africa, and a 4.5% yearly increase for the US tribal casinos. The most important increase for US is predicted for sports betting, rising 7% to $7.6 billion in 2012.

France accepted the rules imposed by the European Union and will allow online gambling operators starting with the middle of the next year.

Online casino and poker sites will be able to operate gradually, the details will be established soon.

Press Release
Free movement of services: Commission inquires into restrictions on the provision of certain gambling services in Sweden

The European Commission has decided to send an official request for information on national legislation restricting the supply and promotion of certain gambling services to Sweden. In April 2006 the Commission sent a similar request for information to Sweden concerning sports betting (IP/06/436). In this new case the Commission wishes to verify whether all national measures relating to poker games and tournaments are consistent and therefore compatible with Article 49 of the EC Treaty, which guarantees the free movement of services. The Commission’s decision relates only to the compatibility of the national measures in question with existing EU law. It does not touch upon the existence of monopolies as such, or on national lotteries. Nor does it have any implications for the liberalisation of the market for gambling services generally, or for the entitlement of Member States to seek to protect the general interest, so long as this is done in a manner consistent with EU law i.e. that any measures are necessary, proportionate and non-discriminatory. The letter of formal notice is the first step in an infringement procedure under Article 226 of the EC Treaty. Sweden has two months in which to respond. The Commission hopes that the answer it receives will lead to an early and satisfactory resolution of the matter.

This latest inquiry into Swedish national gambling restrictions focuses on various issues relating to poker games and tournaments.

Poker games and tournaments are today offered in Swedish international casinos and, since 2006, the state-owned company also offers such services online on a large scale. However, the national legislation prevents online poker games and tournaments offered by operators licensed and regulated in other Member States. Also, it provides for restrictions and criminal sanctions on the promotion both of online poker offered by a licensed service provider in another Member State, and of poker organised within licensed premises in another Member State.

The European Court of Justice has previously stated that any restrictions which seek to protect general interest objectives, such as the protection of consumers, must be “consistent and systematic” in how they seek to limit betting activities. A Member State cannot invoke the need to restrict its citizens’ access to betting services if at the same time it incites and encourages them to participate in state lotteries, games of chance or betting which benefits the state’s finances.

(Source)

Press Release
Free movement of services: Commission inquires into restrictions on gambling services in Germany

The European Commission has decided to send to Germany an official request for information on national legislation restricting the supply of gambling services. The Commission wishes to verify whether the measures in question are compatible with Articles 43, 49 and 56 of the EC Treaty. This decision relates only to the compatibility of the national measures in question with existing EU law. It does not have any implications for the liberalisation of the market for gambling services generally, or for the entitlement of Member States to seek to protect the general interest, so long as this is done in a manner consistent with EU law i.e. that any measures are necessary, proportionate and non-discriminatory. The letter of formal notice is the first step in an infringement procedure under Article 226 of the EC Treaty. Germany has two months in which to respond. The Commission hopes that the answers it receives will lead to an early and satisfactory resolution of the matter.

This new inquiry focuses on a number of provisions of the new legislation which entered into force on 1.1.2008. Some of the key restrictions that are questioned in terms of their compatibility with the EC Treaty’s Internal Market provisions are as follows: the total prohibition of games of chance on the Internet; notably sports betting, on which the Commission sent to Germany in March 2007 a detailed opinion; advertising restrictions on TV, on the Internet or on jerseys or billboards; and the prohibition on financial institutions to process and execute payments relating to unauthorised games of chance. In addition, questions are raised regarding the authorisation regime to be granted to intermediaries as well as the criminal sanctions or administrative fines provided for in cases of organisation, advertising and participation in on-line games of chance.

However, it should be noted that in Germany horse race betting on the Internet is not prohibited and slot machines have been widely expanded. Moreover, advertising of games of chance by mail, in the press and on radio is still permitted.

The European Court of Justice has previously stated that any restrictions which seek to protect general interest objectives, such as the protection of consumers, must be “consistent and systematic” in how they seek to limit activities. A Member State cannot invoke the need to restrict its citizens’ access to these services if at the same time it encourages them to participate in State games of chance.

The Commission decision to inquire into the compatibility of the measures in question is based on complaints made by a number of service providers and on information gathered by Commission staff.

(Source)

The Dutch justice ministry introduced new regulations that will held criminally liable the banks and credit card companies that will facilitate online gambling on foreign sites for the Dutch citizens.

In accordance with Dutch News, in some months it will be published a list with the banned web sites (this decision seems to me a stupid idea, because they cannot control all the new gambling sites that are published every day).

Online gambling is already illegal in Netherlands, but the Dutch stats show about 400,000 people that play online, and about 30 foreign companies that target the Dutch gamblers.

The Dutch policy for gambling is in contradiction with the EU rules, Netherlands trying to get absolute state monopoly for all the gambling games, giving to the state-owned Holland Casino exclusive rights to run internet gambling in the Netherlands, and denying license for all the foreign companies that want to build casinos in the Netherlands.

U.K. Gambling Act of 2005 went into effect Sept. 1, 2007, restricting online gambling advertising to only those companies based in the United Kingdom or other countries in the European Economic Area. The EEA consists of the 27 countries in the European Union together with Norway, Liechtenstein and Iceland. Countries outside that area could apply for approval to be included on a “white list” of countries outside that area who would be allowed to advertise in the United Kingdom.

This week, the UK Secretary of State for Culture, Media and Sport confirmed that Tasmania will be added to the ‘white list’ of countries for online gambling advertising, but it still do not include in the list Antigua and Barbuda or the Kahnawake territory.Mohawk Council of Kahnawake is very disappointed by this decision and Grand Chief Michael Ahríhrhon Delisle, Jr. announced that they will request to be taken into consideration the Article 20 of the United Nations Declaration on the Rights of Indigenous Peoples.

Tasmania was approved after they amended tax legislation which will go into effect on January 31, 2008. The only existing approved jurisdictions outside the UK mainlands was, till now, Alderney and the Isle of Man. Gibraltar and Malta are included in the white list, Malta being by far the most popular licensing jurisdiction in the EEA.

Tasmania is an Australian island and state of the same name. It is located 240 kilometres (150 mi) south of the eastern side of the continent, being separated from it by Bass Strait. The Tasmanian Gaming Commission is an independent body responsible for the regulation of gaming in Tasmania, established under the Gaming Control Act 1993.

So, the white list includes:

• Malta and any other EEA state;
• Gibraltar;
• Alderney;
• Isle of Man;
• Tasmania (after 31 January 2008).

In any other territory it is illegal for gambling operators to advertise gambling in or to the UK, including Antigua, Kahnawake, Curacao, Costa Rica and Belize.

Last year UK released a Licence Conditions and Codes of Practice for gambling. iGaming Business makes a synthesis of this rules:

Advertisements to the UK market also have to comply with the codes of practice of which there are three:

• The Committee of Advertising Practice (‘CAP’) issues the non-broadcast Advertising Code
• The Broadcast Committee of Advertising Practice (‘BCAP’) issues the broadcast Advertising Code
• Gambling Industry Code for Socially Responsible Advertising

The Industry Code sets out the following general principles in relation to gambling adverts:

• They should be socially responsible and comply with the CAP and BCAP rules;
• They must be legal and not misleading;
• Care must be taken not to exploit children and other vulnerable persons in relation to gambling activity; and
• Advertisements should not be specifically and intentionally targeted towards people under the age of 18 through the selection of media, style of presentation, content or context in which they appear.

In terms of specific requirements, there are three key things implemented by the Industry Code as follows:

• All non-broadcast gambling advertising should contain a link to www.gambleaware.co.uk in order that customers can be educated about socially responsible gambling and given information where they might get help for problem gambling. Although not obligatory, it is recommended that gambling operators also include the words preceding the link, “for more information and advice visit”
• With the exception of bingo, new gambling products must not be advertised on television before the 9pm watershed. However this restriction does not apply to the advertising of sports betting in relation to televised sports events.
• Gambling operators shall not allow their logos or other promotional material to appear on any commercial merchandising which is designed for use by children e.g. football shirts.

The advertising codes will apply to any business that wishes to advertise to or in the UK market whether or not they require a licence in the UK.

The new borders of the Internet started with the online gambling. Internet meant, at its beginning, freedom of information, products and services. Now, it keeps from less to less this initial meaning.

I am a fun of the online gambling, especially online poker, but now I see it like an animal in a forest hunted from all the sides by the hunters/authorities, and having from less to less place to move. Unfortunately the real reason is not the same with the official one. If they care about children, pathological gamblers or unfair online casinos, there are possible laws that can be implemented. And there will be no more pornography, violence in movies, alcohol, a.s.o. The real reason is that the money have to be kept in the respective countries. Why to let a foreign company to collect the money from the citizens of a country, when the government of that country can collect the money by taxes from the local casinos, or even exercise a monopoly on the gambling games and collect directly the money.

Finland confirms my prediction for online gambling for this year but, after the previous experience with Germany, they adopt a different and more subtle strategy, especially for online poker. In accordance with a Finnish draft law from the Ministry of Social Affairs and Health and commissioned from the University of Joensuu, the losses claimed by Finnish online gamblers would be taken back from the online poker rooms, or from the payment processing companies. This way the online gambling operators will be forced to block the Finnish players

Finland is the 4th country in the world with about  €150 million in gambling expenditures annually.

If I am right and the main reason for the ban of the online gambling is the will of the states to keep the money within the respective countries, I think the e-commerce itself is in great danger, especially from the countries that have a negative balance for e-commerce.

It seems that it is very hard to make predictions on gambling, this year even more difficult than the other years, and online gambling much more difficult than the classical gambling.

008 will be a very good year for the land casinos. Las Vegas has some big problems that will allow to other entertainment centers to compete successfully with the Sin City.

After several years of standby, Atlantic City will know in 2008 a new development period by building new casinos and improving the old ones.

But Macau will be the star of this year, with the most new projects for casinos, hotels and entertainment resorts. Cotai Strip will be the new center of the gambling world.

The Europeans will have their own Las Vegas too, soon. Gran Scala in Spain is a very ambitious project. This year we will see if it is a certitude for the next years, or just a chimera.

And, to not forget Russia! Russia made no major step till now, but it is very close to invest a lot of money. And, what about the Arabian gambling? Do you bet on the development of a very powerful casino entertainment center in Dubai? The partnership with MGM Mirage is just the beginning. I know about the Islamic rules, but I bet on it.

For me, a big surprise for this year is Harrah’s Entertainment. No big new projects and, at the end of the last year, the bomb (in fact, expected since a year ago): new owners for the casino and hotel resort chain of the world’s largest provider of branded casino entertainment. The surprise is even bigger taking into consideration the successful act of online gambling ban (see UIGEA). So, my prediction is that MGM Mirage will become soon #1 in the casino entertainment industry.

As for online gambling, very bad news, unfortunately. After UIGEA in US, Canada intends to ban the online gambling too, Germany already announced the interdiction for online gambling as well as for advertising the web/based gambling. There are signs that Italy will be soon with Germany on the same part of the barricade and, from the East European countries, Romania has a draft law to ban online gambling and any other related activity since two years ago, so it is possible to discuss it very soon. In this situation, and after the agreement with US, the European Commission it is possible to change its rules about online gambling even this year. I see UK the only country of the European Union that will allow the online gambling in the near future.

It is very interesting how United States, after deciding to ban the online gambling, and by means of the media, it is very close to change the mentality and principles of the whole world about online gambling. Most of the people considered online gambling a way of entertainment as any other, two years ago. Now, the same people are very convicted that they always was against online gambling and online casinos.

A special situation for online poker. If the online poker associations from US will earn the battle to allow this game on Internet (and it is a very powerful lobby for this), all the other countries, including Germany and Canada, will say that they never banned the online poker and will make an exception from the rules. But this will not happen, anyway, this year.

But we will see a spectacular increase of the skill games.

In fact, in the United States the future of the online gambling will be decided during and after the elections stated for this year, 2008. So, when you will vote, take into consideration your own option for online gambling, too.

(These predictions are based on my own experience, do not include any other considerations, I do not claim to be in accordance with the future events, I am not implied in the gambling industry except as a publisher, and I do not advice you to use it)

Germany will ban any form of Web-based gambling or brokering of games over the Internet, beginning with January 1st, 2008, including the advertising of gaming over the Internet and on television.

Germany ratified an accord that preserves the country’s state monopoly for lotteries and most forms of betting. The new online-betting laws, which expire at the end of 2011, have drawn criticism from Internet betting companies and lottery brokers.

At least 13 of Germany’s 16 states have submitted the ratification documents, Eric Braum, a spokesman for the Hesse government, which monitors the process, said in an interview today, in accordance with Bloomberg. “That’s the required majority and we expect to have all the rest coming in by New Year’s Eve.”

The new laws are very similar to the laws in the U.S. The states may order Internet service providers to block websites of illegal betting operations and banks to stop money transfers to them. Illegal gaming includes placing a bet from German territory over the Internet with a company based outside Germany.

The operators claim the ban is contrary to law. Tipp24 said that “doesn’t see its business model jeopardized” because it expects the new rules to be overturned in court. The company regards the regulations “as clearly contrary to law and will sue for its rights if necessary,” Tipp24 said in a statement Dec. 19.

The European Commission called on Germany to reconsider the total ban on online betting, saying the step was disproportional. In April, Germany rejected that demand, arguing the rules are needed to protect citizens from the dangers of gambling, but the EC can sue EU member states to force them to comply with EU law.

The European Union, Japan, and Canada have reached a settlement with the U.S. regarding its protectionist online gambling policy through UIGEA, although US tolerates some forms of online gambling, such as state lotteries and horse racing.

Remote Gambling Association made today a complaint under the EU Trade Barriers Regulation seeks to stop discriminatory practices against European operators. The complaint says is against the United States (US) for discrimination based on violations of World Trade Organisation (WTO) rules.

“We have been left with no choice but to pursue all legal avenues available to challenge the US Department of Justice for its discriminatory enforcement activities against European online gaming operators,” said Clive Hawkswood, the Chief Executive of the Remote Gambling Association.

The DOJ has repeatedly stated that all forms of online gambling are illegal, yet it continues to enforce this view only in connection with non-US businesses. In October 2006, the US enacted a new law (the “Unlawful Internet Gambling Enforcement Act”, or UIGEA) which effectively criminalised online gaming provided by foreign operators while providing exemptions for protected domestic suppliers.

“How would US investors and businessmen feel if they invested in a business in the United Kingdom based on international law commitments, and then suddenly the U.K. not only passed new laws forcing them to shut down their business, but then tried to throw them in jail for past activities while still allowing their domestic competitors to continue on doing the same thing?” Hawkswood asked.“That’s what is happening to our industry in the US,” he added.

Through the members of RGA there are 888, Bet 365, Skybet, Betfair, Sportingbet, Microgaming, Totesport, CryptoLogic, PartyGaming, Eurogaming, Playtech, and many other very known companies.

The fight for online gaming industry just started. Do you bet on US, or the EU companies?