In the US, Bill Frist became the gambling prohibition poster boy, defined by his role as online gambling's personal escort into the Dark Ages. The global envy of US gambling minded citizens and free market philosophers was heightened by the UK's apparent rational response to online gaming; seeking to legislate and regulate the terrain. Well, the US need not be jealous any more. The UK has its own gambling Dark Ages' poster boy and it's none other than new Prime Minister Gordon Brown.
The UK has been working for seven years on comprehensive gambling reform embodied in the Gambling Act of 2005, which was due to take effect in September 2007. Along with regulating remote gambling via the internet, they constructed a responsible gambling advertising policy, as well as paved the way for highly regulated Vegas-style casino operations. Governments across the globe waited in anticipation for the UK's planned enactment in the hope that they could emulate the policies that finally harnessed offshore online gaming into a regulatory framework. Large casino operators eyed some of England's more economically mired municipalities as fertile ground for new investment. And although heavily regulated, lifting the ban on gaming advertising represented a potentially huge infusion of cash into media-related industries. But most of what took years of work and sizable investment by the government and private entities alike, has been undone by PM Gordon Brown in just a few short months.
On June 27, 2007, Gordon Brown assumed the office of British Prime Minister, but his heavy hand on gambling reform was felt even before he assumed the office. In his previous office as Chancellor of the Exchequer, it was Brown's job to establish the government's budget, including associated tax rates. The lynchpin to regulating online gaming hinged on being able to set a low enough tax rate to lure offshore companies into the UK's legal framework. Government pundits and industry analysts were banking on a proposed remote gambling duty in the range of 2-3%. But when Brown pitched the budget to the House of Commons earlier this year, he tagged the remote gambling duty at 15%; a tax everyone knew, including Brown, would be prohibitive. John Coates, chairman of the Remote Gambling Association, said that instead of attracting offshore gambling companies to the UK, the 15% duty would effectively penalize companies that chose to operate in the UK. "The UK has effectively turned its back on the industry. It will now be almost impossible for a UK-based operator to compete with offshore businesses."
If people thought that Brown's only mission was to derail online gaming reform, they were shocked by his July 11th announcement to suspend awarding the UK's first super casino license. Particularly dumbfounded were the MP's and businesses from the north-west. In January 2007, Manchester was selected as the site of a Vegas-style casino. After a lengthy and expensive bidding process, Manchester is now kissing goodbye it's hard fought and won effort to secure 2700 new jobs and £200 million in new investments. Also stymied were large casino operators like Harrah's and Genting who had both made sizable acquisitions in the UK late last year. Harrah's acquired London Clubs International, a company that operated seven casinos in the UK and had four more under development. In October 2006, Genting picked up Stanley Leisure, the UK's largest casino operator. The strategy for both Harrah's and Genting was basically the same; to get a foothold in the UK's evolving gaming industry. But with Brown's recent gambling-related decisions, there looks to be less evolution and more retraction on the UK gambling policy front.
In March 2007, the UK regulators rolled out their new rules for gambling advertising with predictably strict guidelines for advertising to children and the "vulnerable members of society." But last week, just days after the dropping the super casino bomb, the British government announced that it was reviewing its decision to lift the ban on gambling advertising. The ban was to be lifted in September, coinciding with the enactment of the Gaming Act of 2005. The review timetable is less than encouraging as a government spokesperson announced it would take "as long as it takes."
The UK's gaming reform experiment was seven years in the making and was poised to be an interesting counterpoint to current US policy. But what took seven years to plan took one man only four months to unravel. And in that context, the UK's gaming policy experience is starting to mirror our own; the exercise of one man's will.
Some Kansas lawmakers want more say in the rules the Kansas Lottery is creating to implement the state's new expanded gambling law.
The lottery already has made rules about the casino contract process and slot machine distributions. It is operating under a temporary system that doesn't require it to bring the new rules before a joint House and Senate committee for review.
The lottery normally is permitted to use temporary rules because most of its games are of such short duration that the rules wouldn't make it through the review process before the games end.
But some members of the legislative committee think casino games and slot machines are more important than normal lottery games and ought to be reviewed by the committee.
"There's some of the guys that believe there is a big difference between a lottery game that runs six weeks, and running a poker table or craps table or a roulette table and slot machines," said Rep. Arlen Siegfreid, R-Olathe, a member of the Joint Administrative Rules and Regulations Committee. "We believe those should be run by permanent rules and regulations."
Under the permanent rules process, agencies bring rules to the committee for review. The committee can't change the rules, but it can ask questions and make sure the rules comply with the intent of the law. Then the committee submits them to the attorney general's office.
Ed Van Petten, the lottery's executive director, said the new gambling law, SB 66, allows the lottery to use temporary rules to implement it.
"It seems kind of silly to me to be second-guessing the 2007 legislative session after it's over," he said. "SB 66 makes it clear we're exempt."
Van Petten said the bill requires the lottery to submit its gambling rules and regulations to the attorney general's office. The lottery also answers to Gov. Kathleen Sebelius, Van Petten said.
The lottery will own and operate the games under the new gambling act, setting rules for how blackjack dealers deal, for changes in slot games, and for background checks on dealers, for example.
But, he said, the Kansas Racing and Gaming Commission will regulate the new facilities, including oversight of security and internal controls, and background investigations of employees and contractors. That commission has to adopt permanent rules and go before the committee, Van Petten said.
"I think what they don't understand is that we are the only ones given that temporary authority," Van Petten said.
Siegfreid said he is thinking of asking the rules committee at its next meeting, on Aug. 14, to propose that the full legislature amend Senate Bill 66 to require the Lottery to go through the full review process.
"We just feel that destination casinos should be run on permanent rules and regulations," he said. "A blackjack game is not going to change."
Siegfreid said he doesn't think the lottery is up to anything suspicious. He just wants it to be accountable to the committee.
Carl Holmes, R-Liberal, chairman of the committee, agreed.
"We're not saying they're doing anything wrong, but on the other hand, I don't think it would hurt for them to come to us and explain what's going on," Holmes said.
Rep. Brenda Landwehr, R-Wichita, said she's disturbed that the regulations are moving forward without input from the Legislature or the public.
"I've got a problem with that," Landwehr said.
The standard procedure for new state regulations would include one or more public hearings, review by the attorney general and a vote of the Legislature. While the Legislature can't stop the regulations, a negative vote there would usually be enough to send it back for a rewrite, she said.
And in rare cases, the Legislature has blocked some regulations by cutting off the funding to implement them, Landwehr said.
Public scrutiny and legislative oversight are especially needed in gambling regulations because of the potential for fraud in moving hundreds of millions of dollars through the casinos, she said.
"The lottery had its problems with fraud," she said, "and this is way bigger than the lottery."
The Media and Entertainment Consulting Network (MECN) has released a report describing Italy as one of the most promising for online and offline perspectives.
The London-based group has published a report, The Italian Gambling Market, A Forerunner in the Liberalisation of European Gambling Markets, which stated that the speed with which Italy reversed its prohibition against online gambling to embark on a more liberal and regulatory approach still a talking point in gambling circles.
The report stated that the recent European Court of Justice’s favourable decision in the Placanica case was a watershed in Italian gambling affairs. This was followed by the invitation to tender, which allowed online and land-based gambling operators to enter the liberalised Italian market with possibilities in the region now the focus of many major gambling groups.
Since this ruling, Italy has granted 14,000 new betting licenses, mainly for sports and horse race betting shops and terminals, from the beginning of 2007 to leading international gambling operators including include Ladbrokes, Intralot, William Hill, Betfair and Gala/Eurobet.
MECN's study and survey analysed the Italian gambling market in detail and included the results of enquiries from more than 70 international operators. It found that another phase of liberalisation is expected in the near future with a large majority of experts believing that by 2010 international operators, such as Ladbrokes and Intralot, will capture a relevant share of the gambling market.
MECN said that, overall, Italy’s gambling market is expected to reach $84 billion in total turnover by 2010, an increase of 64 percent, with the retail betting market to grow to around $19 billion, twice its current size. It also said that interactive gambling could reach $5.1 billion by 2010, growing by nearly 240 percent.
Calls to the state's gambling hot line are up as more casinos open in Iowa.
State public health officials say the hot line -- 1-800-BETS-OFF -- fielded over 7,300 calls during the last fiscal year. That's up 15% from the year before.
Officials say the increase in calls is likely tied to new casinos in Riverside, Emmetsburg and Worth County and several remodeling expansions at existing casinos.
Last week, the Iowa Racing and Gaming Commission said the state-regulated casinos had adjusted gross receipts of more than $1.3 billion in fiscal 2007.
In the last 15 months, Iowa has added four state-licensed casinos. The newest one is in Waterloo.
In the US, Bill Frist became the gambling prohibition poster boy, defined by his role as online gambling's personal escort into the Dark Ages. The global envy of US gambling minded citizens and free market philosophers was heightened by the UK's apparent rational response to online gaming; seeking to legislate and regulate the terrain. Well, the US need not be jealous any more. The UK has its own gambling Dark Ages' poster boy and it's none other than new Prime Minister Gordon Brown.
