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Copyright © 2006 Poker News
HEADLINE: Major Nations Now Debating Online
Poker Legislation
Body:
An old adage states that 'as the U.S.
goes, so goes the world.' While the saying itself is increasingly
untrue, the wake left by the America's passage of the Unlawful
Internet Gambling Enforcement Act [UIGEA], finds several important
countries now taking up the issue, in addition to those reported
in recent weeks. Germany, South Africa, Spain and Italy have each
seen developments connected to the regulation of online
poker; Germany has been exploring the banning of Internet
gaming in a manner similar to that of the U.S, while the other
countries listed above have opened the door to online
poker and similar pursuits, seeking to regulate and generate
lawful revenue.
Representatives of German federal states met this past week to
discuss the possibility of banning online gaming throughout Germany,
broadening a ban already instituted in three states --- Saxony,
Hesse and Bavaria. Reports indicate that blatant protectionism
is the basis for the push, as it has been in other countries;
these states run government-sponsored lotteries and are seeking
to insulate those revenue streams from other gambling-related
challenges.
However, the push runs contrary to the free-trade provisions
agreed upon by member nations of the European Union, and countries
where online poker
is legalized and regulated have strong grounds to protest against
these measures. Several large online-poker firms are incorporated
in the United Kingdom, and other EU member countries, such as
Austria and Sweden, also house online-poker
concerns.
Yesterday, news also broke that EU member Spain will follow Italy's
lead in loosening restrictions on online gaming. Italy's recent
flip-flop from an early attempt to ban rather than regulate has
already brought a boost to the Italian economy, with firms such
as Ladbrokes and William Hill now in active application for Italian
licenses. Spain has just announced that it will allow gaming in
regulated locations, specifically including online ones, with
the licenses good for five years and subject to regulation and
renewal. Most of the largest Euro online-poker
concerns are expected to apply for an official Spanish license.
While not part of the EU, South Africa is also considering legislation
that will legalize
online gambling companies. A version of that bill has just
been approved by South Africa's Cabinet, and includes provisions
attempting to license both online companies and online gamblers
themselves, to ensure that both sides of the tax and regulatory
equation are covered. South Africa had previously banned online
gambling in a 2004 bill that included a time lag for enforcement
and regulatory review, and it is out of that law that the recent
bill has grown.
While every country in the world will likely be forced to address
the issue of Internet gaming in the near future, and while the
U.S. remains a giant in terms of market force and power, it may
well be that the European Union member nations play the key role
in deciding online poker's
ultimate fate. Already, the European Commission, an EU regulatory
body, is examining the restrictive measures posed by the German
legislation above and by such actions as France's recent arrest
of two executives of Austrian gambling company BWin. Many belive
the BWin arrests to be an action that flies in the face of EU
trade provisions.
Even though the measures were enacted before the rise of online
gambling, EU regulations forbid state-sponsored monopolies and
restrictive trade practices. In that sense, the struggle for control
of online gaming threatens the very structure of EU trade agreements
themselves.
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