Further progress in liberalising the gambling sector in Europe
Over the past few months there have been promising signs of liberalisation of the gambling sector within the EU both in terms of the European Commission's latest round of proceedings against EU Member States (which continue to limit licensed gambling operators' ability to offer their services) and in legal challenges brought by operators seeking to protect their commercial rights in the national courts. Furthermore, on 6 November Stanleybet International launched a campaign to lobby the European Commission to enforce the EC Treaty obligations on free trade in relation to the betting sector. What impact this campaign will have on the Commission's current round of proceedings remains to be seen.
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Government bows to inevitable and Tote sale abandoned
As foreshadowed in our last update, the Government announced on 22 October that, given the current market conditions, it is not proceeding with the sale of the Tote. Instead, it will "be retained in public ownership for the medium-term, and brought to the market when conditions are likely to deliver value for the taxpayer and racing".
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Internet Gambling in the United States - Recent Developments
Early this month, in a sudden and unexpected move by the Bush Administration, the Federal Reserve Board and the Department of the Treasury adopted joint regulations to the Unlawful Internet Gambling Enforcement Act.
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Regulation of the internet - events in Kentucky
The ruling by a Circuit Court judge in Franklin County that the state of Kentucky can seize ownership of 141 domain names owned by gambling operators has once again raised questions about regulation of the internet. If upheld, this decision will have an impact far beyond the online gambling industry and could pose a fundamental threat to the existence of a worldwide web operating without geographical boundaries.
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Antigua added to DCMS White List
The DCMS has added Antigua and Barbuda to its "White List", meaning that licensed gambling operators from that jurisdiction have been able to lawfully advertise in the UK from 20 November 2008.
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CAP and BCAP Issue New Guidelines on Gambling Advertisements
As we reported in our last update, the ASA has upheld a number of complaints against gambling advertisements. Further to this, and in order to assist advertisers going forwards, CAP and BCAP (the committees responsible for the Codes that are then administered by the ASA) issued guidance on the interpretation of the rules relating to gambling advertisements.
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Threat of statutory levy hangs over UK operators
Unless UK operators make firm commitments to a voluntary funding structure for problem gambling treatment before Christmas, the Government has indicated that it is likely to introduce a statutory levy.
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Turf TV Part 2: Victory for the bookmakers
As reported in the last Gambling Update, the first judgment was handed down in October in the complex legal battle between, on one side, the bookmaker body BAGS (together with William Hill, Ladbrokes and BetFred) and, on the other side, AMRAC (owner of the LBO broadcaster Turf TV, acting together with its shareholders, which comprise half of all British racecourses and Alphameric, the supplier of equipment to LBOs).
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Levy rolls on - at least for one more year
In our last update we speculated at to whether the Levy might be referred for determination by the Government for an unprecedented second year in a row. In the end, with just a few hours remaining before automatic referral to the Government, a new scheme was agreed.
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Remote Betting or Remote Gaming? Gambling Commission attempts to clarify
The Gambling Commission has responded to a number of industry enquiries about whether a product should be classified as remote betting or remote gaming by issuing an advice note. Whilst the distinction is less important now that both activities can be provided lawfully under licence from the UK, it remains of significance because the two activities require different operating licences in relation to which different fees and regulatory requirements apply.
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Differential VAT Treatment of Slot Machines
In the second VAT case brought by it this year, the Rank Group is claiming a refund of £25 million of overpaid VAT paid in connection with slot machines with built in random number generators ("RNGs"). Legislation that was previously in force treated slot machines with internal RNGs as subject to standard rated VAT and machines with external RNGs as exempt for VAT. Rank's claim is that, since both of these types of slot machine are similar, their VAT treatment should be the same; in accordance with the principle of fiscal neutrality. Whilst the VAT Tribunal has agreed that Rank's claim is valid, HMRC has argued a defence of due diligence which, HMRC contends, is justified by European case law. The Tribunal has indicated that, if HMRC pursues this argument then, in order to determine whether it is a proper defence, the question will need to be referred to the ECJ. As a consequence, this case (on which similar claims of many other gambling operators will turn) may yet have a long time to run.
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Government intervention needed to clarify legality of house raffles
The Gambling Commission's limited mandate means it is unable to clarify the boundaries of legality for homeowners attempting to sell their properties through raffle-style competitions. In light of this, decisive action is needed by the Secretary of State to either nip this trend in the bud or allow it to flourish.
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EU Commission to conclude US Trade Barriers Regulation Investigation
As we have previously reported, the EU Commission is formally investigating the continuing prosecution by the US Department of Justice of EU-based online operators who voluntarily withdrew from the US market following the passage of the UIGEA. The Commission is likely to report on its decision before Christmas, which may result in another WTO dispute against the US.
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Investigation into Fixed Odds Betting Terminals ('FOBTs')
Fixed Odds Betting Terminals are highly profitable gaming machines that are located in most betting shops, meaning that any threat to their continued operation is a matter of serious concern for the bookmaking industry. In this piece we look at the current position in relation to the numbers of FOBTs in betting shops and restrictions on their manner of play and also at the investigation currently being conducted by the Gambling Commission into such machines.
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Gambling Commission Guidance and Consultations - Recent Highlights
The Gambling Commission has published a consultation document on a full new edition of the Guidance to Licensing Authorities, showing changes from the current second edition to the proposed third edition. The third edition has an overarching aim to be more concise and user-friendly. A public consultation workshop for stakeholders, in Birmingham, is scheduled on 7 January 2009.
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The information contained in this
update is intended as a general review of the subjects featured
and detailed specialist advice should always be taken before
taking or refraining from taking any action.
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