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Macau's leader has announced that the Chinese enclave, which has developed as the largest casino gambling center in the world, surpassing even Las Vegas, will hold on new gambling licenses. The effect could easily have turned out negative, as casino gambling may suffer a blow and a halt to its impressive expansion. But that was not the case. Instead, shares of casino operators that already hold properties in Macau, such as Las Vegas Sands Corp. and Wynn Resorts Ltd. have climbed following the Chinese leader's comment. No further casino concessions (or sub-concessions, for that matter) would be issued in the near future, said Edmund Ho to his countrymen lawmakers. This decision will affect the existing operators still, as no new applications for additional gambling tables or slot machines will be granted either. Macau: The Making of a Gambling Capital Once a Portuguese territory, Macau is only 60 kilometers (40 miles) west of Hong Kong. It is the only area in China that allows gambling by law. Since ending the monopoly that casino magnate Stanley Ho has enjoyed, in 2002, Macau has issued six additional casino licenses to several operators, including Ho. This liberalization has helped stabilize Macau's economy, according to Edmund Ho. "We're now at a stage to review and estimate the development of the industry," he has added, with regard to the effect it has had on living conditions of the inhabitants of the area. Macau-based casinos have pulled in over $10 billion in revenues last year. Stocks Rise Following the announcement, shares of Las Vegas Sands Corp. jumped 9.2 percent, Wynn Resorts Ltd. rose 7.4 percent, and MGM Mirage 3.4 percent.
The advertising watchdog is no one's puppy, it is made clear as the UK Advertising Standards Authority bans two gambling advertisements. The ASA is in charge of enforcing the advertising standards and codes. It has been called to do so on two different occasions recently, as gambling advertisements for online casino Paddy Power and an InterCasino campaign have crossed the lines. Sexual Prowess Under regulations, which are enforced, it is now made clear, online gambling advertisements may not tie between online betting and one's sexual prowess and self esteem. The ASA stated in its announcement regarding Paddy Power's advert that it had linked gambling to "seduction, sexual success and enhanced attractiveness." That was the message that the advert conveyed when it presented a dwarf in a limousine in the company of two women, cigar and champagne glass in hand. The ad appeared in print media. Slapstick Humor The InterCasino advert, this one on television, featured "slapstick, juvenile humor that was likely to appeal to children," according to the ASA ruling. The dwarves in this ad engaged in "Jackass-style," with no sexual insinuation, though appealing to children and young people. In Their Defense The online gambling industry, which now is allowed to advertise in the media, has behaved on its best side until now. Specifically regarding the two banned adverts, Paddy Power claims to have recreated a famous scene from the 1980s Hollywood film "Wall Street," starring Michael Douglas, and InterCasino claimed references to Charlie Chaplin and Benny Hill.
As reported earlier on the Weekly Edition, South Africa is in the process of passing a law that would legalize and regulate online gambling. Although the bill has stalled in the South African National Council of Provinces, mainly over the issue of gambling advertising and how to keep children and youth away from the gambling sites, it seems to be heading the liberal way of allowing the practice under government supervision. Online companies are wasting no time in preparing for this new age of gambling in South Africa. The Victor Chandler International Group and Bwin Interactive Entertainment, among others, have expressed interest in opening up shops in the country. South Africa has many gamblers, even today as the practice is not legal. For various reasons - the current illegal status and legitimate competition, Chandler and Bwin refuse to comment.
The second annual All Japan Poker Championship (AJPC) has finally arrived and will take place from April 27 – May 18 in Tokyo. The tournament awards a winner with a seat at the World Series of Poker Championship. Japanese Excitement Global Mix, a consulting firm specializing in casino-related business, events and media and the organizer of the event, is providing Japanese players with a chance to play a standard poker tournament. Currently, casinos are illegal in Japan – hence the excitement for the games. Global Max’s main objective is to give standardized poker a spot in Japan's culture. The firm believes the event will open Japan’s gates for international tournaments leading to a healthier society. Free Admission One fact that makes the AJPC different than the rest of the poker tournaments around the world is that it has no entrance fee – a side effect of the Japanese law preventing organized gambling. The event is funded by the Saga Sammy – known for their gaming hardware and software. In order to be in the main event, players must win a preliminary event these days in Osaka or during May in Tokyo. The winner of the tournament will receive a bracelet and a seat worth over $10,000 at the World Series of Poker – including airfare and accommodations.
Following Barney Frank's declaration on April 2, Reps. Luis Gutierrez (D-IL), Ron Paul (R-TX), and Pete King (R-NY) sent a letter Tuesday reminding the Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke of the ineffectiveness of the Unlawful Internet Gambling Enforcement Act (UIGEA). The UIGEA, introduced into a climate of already outlawed US online gambling, sought to ban credit card companies and others from processing cash flow from the US into (and ideally out of) offshore-based Internet gaming sites. The House Financial Service Committee's (HFSC) Bill currently has 48 co-sponsors fighting against the ban. Frank also announced that "The ban is one of the stupidest things" he has ever seen. His battle seems to be gaining much attention within congress and is pulling many powerful aids in favor of his cause. The Letter The Hill, which reports of legislative issues in Washington, DC, reported that the letters explain that "The regulations, like the underlying legislation, fail to define the term 'unlawful Internet gambling,' leaving it to each financial institution to reconcile conflicting state and federal laws, court decisions and inconsistent Department of Justice interpretations when determining whether to process a transaction." The representatives warned the Treasury Secretary not to pursue any further actions toward the UIGEA: "We believe it would be imprudent for you to devote additional agency resources to this Sisyphean task, especially as we intend to vigorously pursue legislation to prevent the implementation of these regulations." The letter, which was intended to stop all actions in favor of the ban, ends with a nice request of readers to become co-sponsors preventing UIGEA regulations of becoming the norm.
France's online gambling monopoly is not standing the European Union pressure. The country is reportedly reconsidering its policies regarding online gambling. Soon the French may get the chance to play at a regulated online gambling industry. Last November, a study occurred to understand the positive and negative effects of online gambling. This research is now being used by Prime Minister Francois Fillon’s office in order to determine the future of online gambling in France. French law currently states that online betting is not allowed. However, the European Commission is pressuring France to conform to the EU treaty regarding free competition with other member nations. The new regulations will involve issuing licenses limiting online betting to sporting events – including wagering poker games or licensing all games except lotteries. By approving a regulated online gambling industry, France will join other countries that are taking major leaps of faith to fight for the rights of society, including, most recently and notably, Poland and South Africa.We follow and update the legal status of online gambling in different countries and regions around the world, including the developments in France.
Mr. Rousso is the Poker Players Association representative in the state of Washington, where he has even ran for governor, before pulling out recently to focus on a legal challenge against the state's online gambling ban. Online Casino Reports:: Mr. Rousso, how are you doing today? Lee Rousso: Good Daniel, how are you doing? Online Casino Reports: Thank you. May 15. What do you expect the court case to achieve? Lee Rousso: Well, on that date I will have my constitutional challenge heard before Judge Mary Roberts of the King County Superior Court, here in the Seattle area. If I am successful in my lawsuit the judge will strike down the Washington state law that makes it a crime to gamble on the Interet. So if I am successful in that, people in the state of Washington will be able to play poker on the Internet without being worried about law enforcement. I think all other state laws around the United States that attempt to regulate Internet gambling will also be in a lot of trouble as well. I would refer similar suits in other states. Online Casino Reports: You expect state courts to decide the future of online gambling in each state, or would it come from above, say a federal law? Lee Rousso: I think the first go around will be decided in state courts, but eventually it will probably work its way into the federal court because it does involve constitutional issues and I wouldn't be surprised if eventually it made it all the way to the Supreme Court of the United States. Online Casino Reports: And how long or in what stages do you expect individuals, players, like yourself, to keep the fight going before it moves on to the Supreme Court and such? Lee Rousso: The entire process of appeals can take conceivably two years, maybe three years. It takes a long time for cases to make it all the way to the United States Supreme Court. There will probably be an appeal to the Washington State Supreme Court after which there can be an appeal to the United State Supreme Court. Online Casino Reports: Talking about online gambling and politics, we've been following the Democratic Party presidential primaries. What implications, if any, do you expect it to have regarding Internet gambling? Do you expect the candidates to comment on the issue or maybe to bring a change in due time? Lee Rousso: Unfortunately, neither of the Democratic finalists, Hillary Clinton or Barack Obama, is really a friend of Internet poker. My understanding is that Barack Obama plays poker but he is opposed to Internet gambling. He does not believe it can be effectively regulated. I think Hillary Clinton, though she hasn't made any public comments on the issue but I don't have any real sense that she will be a friend of Internet poker either. It is possible John McCain might actually be a little bit friendlier because he does have a libertarian streak, and he might respect the rights of people to play poker from the privacy of their own homes. Online Casino Reports: So for the while you expect it to stay on the "Lee Rousso" level, i.e. individuals taking the case to court in the different states and pursuing the case. Lee Rousso: Well, beyond that I think that the Poker Players Alliance will, in various races around the country this year, where we have a clear choice between a pro poker candidate and an anti poker candidate, I expect the Poker Players Alliance will be getting involved in some races. I'm just not sure that in the Presidential race we're going to have that much interest. Online Casino Reports: Thank you for joining me. It was a pleasure getting to talk to you about your legal battle. We'll try to follow you and call you again sometime soon. Lee Rousso: Thanks.
The Weekly Edition, an OCR Live! production in which Kate brings you the headlines for the past week, including news regarding casino licenses in Macau, positive legal developments from Poland, and excerpts from an exclusive interview we held with Lee Rousso in Seattle, Washington. Macau Casinos: First Winners Take All Casinos in Macau benefit from the government's decision to hold licenses from now on. Giving a new meaning to lucky firsts. Poland Next to Regulate Online Gambling Polish Deputy Minister says Poland is prepared to regulate online gambling, and fuels guesses that it will indeed do so. Lee Rousso Fights for Online Poker Ahead of his May 15 Constitutional challenge in a Washington state court, Mr. Lee Rousso has talked to us about poker politics.
Poland's Deputy Finance Minister Jacek Kapica has announced his government's plan to regulate online gambling. This is expected to take place by the end of 2008. A glimpse into the reasons behind the Polish change of mind was provided by Mr. Kapica when he said: "We cannot control this process anyway and it is better that the Budget at least derives some revenue from it." A close look reveals additional reasons for the new policy. New Government Polish politics have seen several changes in recent years. Since the 2005 elections, Law and Justice (PiS) and Civic Platform (PO) have split time in power, whereas the former ruling party, the left-wing Democratic Left Alliance (SLD), has lost the people's support. Currently, under the Liberal Civic Platform party rule, Poland realizes that banning online gambling would be too costly. Dollars and Sense Then there is the sheer economic reasoning. Merrill Lynch estimates that gross online gambling revenues could reach the high billion (as much as $48 billion by 2010). This is a different estimate than that made by analysts who claim regulation itself will be costly, and revenues lower. It seems as if Poland has sided with the more optimistic forecast. Western Wind Lastly, the pressure from Europe, the European Union, and especially its Court of Justice seems practically insurmountable. Last year's ECJ ruling that Italy may not use criminal law to ban online gambling sites based in European member countries will most likely influence other countries, in addition to Poland, already in coming months.
Denmark's municipal court has ruled recently that online poker tournaments are legal. This as well as several other elements, have contributed to the decision to loosen Denmark's ban on online gambling. It's Official Denmark's Minister for Taxation, Kristian Jensen, said in a radio interview that the country is looking into reform of the online casino industry. The new policy would require foreign bookmakers to "live up to the strict regulations we Denmark have for those who want to offer legal gambling in Denmark," the Minister said. European Court of Justice Poland, which has recently announced its change in policy towards online gambling, France, Holland and Germany, which have also shown signs to different extant in this direction, have all been under fire recently for their monopolistic practices. A European Court of Justice decision regarding the Italian protectionist policy, which ruled against the use of criminal law to ban online casinos located elsewhere in Europe, reported here in March 2007, has led to the pragmatist approach by Denmark. Danish Gamblers The news is highly significant, mainly for the large number of online gamblers based in Denmark, and the Scandinavian region at large. Danes alone count for approximately 250,000 gamblers. Soon will come the day when online gambling companies based in European Union countries will be able to compete in Denmark, and Danes will have more choices to gamble online, other than at the state-run monopoly Danske Spil.