Inside Asian Gaming

45 Online Briefs CTK quotes the findings from a comprehensive study the Swiss Institute of Comparative Law compiled in 2006 for the European Commission. The Monitor notes that in the Czech Republic there are more than 50,000 gambling devices—which can be found in unregulated and untaxed“gray market”varieties in hotels, cafes, restaurants and petrol stations—plus 5,000 sales outlets for the country’s leading Sazka lot- tery, and more than 100 casinos. “These are extraordinarily high figures given population size and incomes compared to other countries, and the number of gambling facilities is expected to further grow in the future,” the Monitor said. On a per capita basis, the average gambling spend per citizen over the age of 15 will hit almost € 400 this year. EC Threatens Action Against France The European Commission has told France it must allow foreign operators to take bets online or face legal action. At issue is the country’s draft law on online gambling, which the Commission considers a violation of Article 49 of the Treaty of Rome. A cornerstone of the Common Market, Article 49 guarantees the right of service providers from Member States to trade freely throughout the European Union. “We sent a detailed opinion to France concerning the draft law, which is aimed at prohibiting foreign operators from coming to sell their services on the French market,” said EU spokesman Ton Van Lierop. The French government was given until August 24 to change the law, which will formally outlaw Web gambling with the exception of the state-sanctioned operations of Francaise des Jeux and Pari Mu- tuel Urbain, the country’s monopoly lottery and betting companies. The ban is incorporated in two amendments to a delinquency pre- vention measure that was backed by President Nicholas Sarkozy when he was Interior minister. One amendment requires banks to block money transfers to and from gambling Web sites and to and from gamblers. The second amendment targets ISPs, requiring them to inform French players seeking access to gambling sites that the sites have been designated as “reprehensible by the minister of the Interior” and informing them of the risks of participating in games that are operating “unlawfully.” ISPs could face fines up to €75,000 for failing to comply. France already bans advertising and marketing by online opera- tors. Fines for violators were raised last year from €4,500 to five times the cost of the advertising. 888, BlueSquare Close to Partnership BlueSquare was reported the front-runner last month in negotia- tions with 888 to provide the casino gambling portal with the sports betting operation it has pursued ever since the shutdown of the U.S. market last autumn. “Negotiations are ongoing with a number of potential partners,” a source told British daily The Telegraph . “It is no secret 888 wants a sports book, either by acquisition or through a white-label deal, as it would complement their other busi- nesses,” another industry source said. The deal with BlueSquare, the online subsidiary of casino and bin- go giant Rank Group, likely would call for Rank to provide software and back-office functions for an 888-branded site. Revenues would be shared between the two companies. For Rank, a tie-up could be appealing given 888’s global presence, which would help extend BlueSquare’s reach. 888 and Ladbrokes were exploring a merger earlier this year, but the talks collapsed, reportedly over Ladbrokes’ concern that 888 may yet encounter legal troubles in connection with the heavy business it once did in the United States. Mexico Legalizes Online Gaming While no one was looking Mexico legalized online gaming. So says a recent report carried by Interactive Gaming News from the popular Mexico City daily newspaper La Jornada . The paper discovered that Mexico’s guiding federal legislation, the 60-year-old Ley de Juegos y Sorteos, acquired a provision permit- ting online companies to operate legally in the country in the course of an ongoing expansion of Mexico’s burgeoning gambling machine market. According to IGN , though, the sector is a problematic one for pro- spective operators and suppliers as the law provides for minimal gov- ernment interference and lacks critical regulations, safeguards and security mandates. AOL, FLUXX Enter UK AOL and German operator FLUXX have joined forces to provide AOL’s British customers with the ability to bet on sports and horse races. FLUXX’s British subsidiary JAXX UK is providing the platform. “The British market is one of the largest and most attractive in the world. Yet the online market is still notably underdeveloped,” said a FLUXX spokesman.“Together with AOL,we have now created a highly competitive service that will help us to tap into this growth.” Gaming Intelligence Group reports that the model is one that FLUXX and AOL have applied with success in Germany’s lottery mar- kets going back to 2003. The partnership is one of AOL Germany’s most lucrative e-commerce ventures. The two also plan to extend their partnership to other European countries. “We are looking at a range of partnerships and initiatives to drive our business forward in Europe,” said Michael Steckler, AOL Europe’s vice president/Interactive Marketing.