Legal Developments in Europe and Africa
Online gambling is embroiled in two major legal issues in the United States. One is the UIGEA and the other the Kentucky domain seizure case. However there have been some notable developments in Europe and South Africa that online players should know about.
The European Parliament's Internal Market and Consumer Protection Committee considered a draft report that seeks a European Parliament Resolution on the integrity of online gambling. The report has been prepared by Christel Schaldemose of Denmark and highlights certain unfavorable practices that are allegedly prevalent in the online gaming industry such as fraud, money laundering, addiction and underage gambling. The report points out that fifty percent of the cases before the European Court of Justice relate to gambling. It states that the convergence between interactive television, mobile phones and online gambling is creating a society addicted to gambling. The report finally rejects self-regulation and calls for national regulation through a common code of conduct. Of the 27 member states of the European Union 7 have banned online gambling. Of the 20 that allow it, 13 member states have a liberalized market, 6 member states have state-owned monopolies and one member state has licensed a private monopoly. Now the parliament’s political groups have to table desired amendments to the report by mid-December.
Meanwhile The U.K. gambling group Ladbrokes has given notice that it will appeal against an adverse decision given by the Oslo City Court. In June 2004 the Norwegian authorities had turned down Ladbrokes application for betting license. Ladbrokes went to court but got an adverse decision. Ladbrokes is appealing because the City Court did not consider the relevant legislation. The monopoly laws in Norway conflict with those in the European Union. Norway is trying to protect the state owned online gambling monopoly, which goes against the directive of the European Free Trade Association court in Luxembourg. Ladbrokes is hopeful of a favorable decision in the appeals court.
South Africa has chosen the route of regulation and taxation, which is the path being advocated by most experts today. The National Gambling Amendment Bill, which was passed earlier this year, has reinforced the regulatory mechanism for the protection of customers and the prevention of children from engaging in gambling. Now the Minister of Finance, Trevor Manuel, has released the Interactive Gambling Tax Bill for public comment. This bill provides a special tax on the gross gambling revenues of "interactive gambling" web sites. After comments from the public have been received the Interactive Gambling Tax Bill will be first tabled in Parliament and thereafter sent to the Treasury. It is expected to come in force by March 1 2009.
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