Online gambling legislation has been a contentious issue for some time, even more so after the incidence in April 2011 which saw many American based gambling venues closed due to them having undertaken fraudulent activities. With countries around the world currently discussing their online gambling regulations, and the U.S in particular mounting bills and process to try and push through new legislation to allow intrastate online gambling, many nations may be on the brink of offering increased access to internet gambling for residents.
UK Seek Online Gambling Direction
In the UK, the United Kingdom Parliamentary Select Committee for Culture, Media and Sport are currently having talks in relation to online gambling regulation. With the objective to give the industry some direction of how to regulate the online world, there is particular interest from Gibraltar and Alderney due to the island’s being able to operate and advertise within the British Isles but avoid UK taxes. However, with the UK considering secondary licensing, both islands would discover direct regulations changes, with the spokespeople for each destination having opposing views.
Alderney Authority for Tighter Regulations
In Alderney, the spokesman for the Alderney Gaming Control Authority revealed that they wanted to tighten regulations with immediate affect. Andre Wilsenach said that licensee operations needed to be very carefully assessed before given the go ahead, particularly due to the island’s Full Tilt Poker having been found in violation of its license conditions last year. Alderney’s gambling authority suggested that licensees should be given a risk factor, determined by their financial processing arrangements, the licensing jurisdiction that they were under, where the operators did business and a number of other factors. This would allow online operators with a higher risk to be more closely regulated by auditors, with venues paying the costs of having quarterly auditing conducted.
Gibraltar Concerned with UK’s Lack of Experience
Whilst Alderney calls for more regulation, a spokesman for the Gibraltar Gambling Commission, Philip Brear, said that the island was disappointed with UK’s lack of experience. Whilst the UK and Gibraltar have established a gambling relationship, Brear stated that it had not been as productive as hoped for and that, because the UK Gambling Commission had far less regulatory experience than Gibraltar, regulatory changes being talked about could be restrictive.
Gambling Prevalence Statistics
Meanwhile, whilst the talks continue over the direction that UK gambling operating regulations should take, the Gambling Commission has revealed its latest statistics for gambling prevalence. Whilst the UK online gambling market was worth around £1.9bn in 2010, it was shown that most people gamble at overseas establishments. Just one third of those who gambling online use British websites, with the past two years seeing a 19per cent fall in casino games and casino because many UK brands have moved offshore.
U.S Stand on Intrastate Gambling
Meanwhile, in America, concerns have been raised over the legislation of intrastate online gambling. On December 23rd, 2011, it was revealed that the Department of Justice (DoJ) was considering that intrastate online gambling could be legalized. The gambling industry welcomed this news, with six or so states believing that they would be able to have operations up and running by midway through 2012. However, with only three weeks passed since the DoJ’s comments, many experts are now saying that the authorities view may be far too simplistic, and there is still a long way to go before online gambling can see an American resurge.
click here to see most Popular PagesCautionary Note from Gaming Analyst
One of the first notes of concern came from Deutsche Bank gaming analyst, Andrew Zarnett. Preparing a report on the change in online gambling legislation to show investors, Mr. Zarnett expressed that the intrastate legalization had been misplaced and hyped-up by those who wanted to push the changes through. He made it clear to investors that the only change was that there would be a discussion on intrastate gambling, instead on having uncertainly whether talks would occur at all. He added that there had been no clear indication on the forms of gambling which could be legalized, nor how long the legislation process would take. Zarnett also referred to history as showing that, if legislation goes ahead, it is likely to be on a state-by-state basis.
Nevada Attorney Speaks Up
In one of America’s most notorious state’s for gambling, gaming attorney in Las Vegas, Jennifer Carleton, said that the announcement by the DoJ was a step forward to regulating online gambling, even though there were still concerns surrounding the issue. Ms Carleton urged parties to be proactive, attentive and alert in their response to the December findings, though warned that future discussion by the DoJ could reverse the interpretation that many made of the statement made in 2011. For Nevada, steps have already been made to fast tack legislation should it go through, with online poker regulations already being approved on December 22nd, 2011, in an effort to being intrastate gambling as soon as allowed. Mark Lipparelli, Nevada Gaming Control Board Chairman, revealed that ten casino operators, manufacturers and equipment providers had already put in license applications, adding that the time it would take to issue the licenses was unclear.
South Point A Major Player
One such license request was from South Point Hotel Casino and Spa. Owner Michael Gaughan already operates an online free-play poker website, allowing players to win noncash and cash prizes which include South Point casino trips, where winners can indulge in love poker events. However, Mr. Gaughan has said that he believes intrastate gambling will not be possible for many states with small populations, especially Nevada. Here, online poker rooms would not be able to create enough money for viability, making interstate gambling vital.
Online Gambling Uncertainty
There remains a huge amount of uncertainly surrounding online gambling legislation in the US, even when it comes to intrastate possibilities. Whilst the DoJ’s latest remarks may have been welcomed by many gambling authorities, there remains a long way to go before operations become available for consumer use. And, though many may have seen fit to put through bills to get online operations working as quickly as possible, it may be many months before anything materializes.
