Recently in Crazy laws Category

Over the past few weeks right2bet has received huge support from Bulgarian poker players and sports punters looking for an outlet to oppose anticipated legislation to limit their gambling industry.

The proposed legislation looks to force foreign gaming companies to demonstrate a tangible presence in Bulgaria and an investment of at least $500,000 to be granted a  license. Such a requirement will make applying for a license unworkable for many online operators, who will be unable to make a profit. This will have drastic effects for gambling and poker markets within the country, forcing Bulgarians to bet against themselves, substantially reducing their possible takings.

A spokesperson for the Bulgarian Commission on Gambling (SCG) said the measures were designed to enable the government to control remote gambling with "clear national legislation" and "transparent regulating regimes". She added that the draft law was in the "final stage of development with the hope of putting it into practice by the end of 2010".

Under the new legislation, any Bulgarian gambler found betting with an "illegal" operator could be fined 20,000 to 50,000 leva (€10,000 to €25,000) or jailed for one to five years. A move viewed by one critic as a 'very severe clause' particularly given the barriers to entry for foreign operators to gain a license, "It doesn't help consumers in any way and it doesn't help the gambling companies either. Its only purpose is to make it impossible for foreign companies to get a gambling license in Bulgaria" he said.

Judging by the correspondence right2bet has received, bettors in Bulgaria are just as outraged by the idea, and they want to make their voices heard.

Right 2 Bet is encouraging all Bulgarians to use this site to air their views. We are committed to getting the message across to decision makers, and by signing the petition, emailing your MEP, or writing in the Rant Box you can make a difference.

The messages to the Bulgarian government are clear:

• It's against EU law - according to Article 56 Treaty on the Functioning of the European Union, EU citizens are entitled to use cross border services.
 
• It's unworkable - online gaming providers will be made to set up at least one gaming point within each of the 28 provinces.  Why does this matter if you're betting online?

• Control advertising, don't ban it - a complete ban on advertising is unnecessarily restrictive

• Where's the social responsibility? - Where are the Bulgarian Governments' plans on age verification, fraud protection and gambling education, which are crucial to EU law?

Get involved, and make a difference.  Sign the right2bet petition today.

The Right2bet World Cup Report, published last week, has evoked a strong reaction across the online gambling industry, with consumers, consumer groups and operators all coming forward to comment on the report's findings.

The report exclusively revealed that European gambling monopolies offered their customers, on average, 32% worse odds during the World Cup than private and licensed betting operators, and the response across Europe has been one of shock and dismay.

Consumers across Europe contacted Right2bet to voice their reaction to the report.

Julien Beaudet in France said: "As a French player I now feel extremely limited and frustrated with regards to my playing experience. Consumers have been totally denigrated by the supposed French 'liberalisation' and it is totally unfair."

David Atkins of Amsterdam commented: "It never ceases to amaze me how monopolies like De Lotto get away with such blatant exploitation of customers.  This report shows first-hand how much people in the Netherlands and many other EU countries are losing out and I hope it acts as a catalyst to drive the change we need to enable free and fair access to online private operators."

Luca Pappalardo, Chairman of Italian Consumer group ACOGI, said: "We strongly agree with and applaud the output of this report. Even in Member States like Italy where there is no monopoly, the high burdens and barriers to entry make it almost impossible for many operators and as a result, Italian consumers are punished."

Martin Arendts, a prominent online gambling lawyer in Germany, told Right2bet: "A level playing field between state operators and licensed private operators would give customers freedom of choice and would prohibit unfair monopoly gains. With fair competition customers would get a far better value for their money."

Operators too were quick to comment on the report:

Ciaran O'Brien, Head of PR at Ladbrokes commented: "Consumer freedom and choice is at the heart of fundamental EU principles, yet as the Right2bet report shows, millions of Europeans are being denied the choice and the value that healthy competition provides. We urge the Commission to study the findings of the report and do more to rectify the unjust balance that exists between EU citizens living within different Member States."

Tim Phillips, Director of European Public Affairs at Betfair said: "An open and fairly regulated European gambling market is the best way of ensuring that all European consumers are getting the best value in a safe and transparent online environment. The Right2bet report shows quite clearly that consumers are the ultimate losers in Member States where gambling monopolies exist."
 
Right2bet spokesman Mike Robb was delighted with the widespread appreciation of the report.  He said: "I am pleased that the startling results of the report have reached individuals and groups within the online gambling world across Europe. We now urge the European Commission to study the findings and do more to rectify an unjust situation that is to the detriment of millions of European consumers."

Right2bet supporters in Bulgaria have been voicing their contempt for proposed new gambling legislation in the country.  The legislation, which is now in an open consultation phase, flies in the face of EU single market laws and is seen by many Right2bet supporters as unworkable.

Some of the plans being discussed include making all online gaming providers set up an office in each of the country's 28 provinces and prohibiting all advertising.  Much of the new law is unworkable for any cost-effective company looking to operate, aside from the state-owned monopolies.  Consequently, it aims to illegally deprive punters of their chosen betting operator.

"I have been a recreational poker player for the past three years", said one Bulgarian Right2bet supporter.  "There are 50,000 more Bulgarian citizens like me whose hobby is being highly jeopardized by this new law.  They want to filter every player's internet traffic and monitor it to make sure no one tries to play on an unapproved site, which is a clear violation of privacy matters and human rights."

Right2bet is getting behind Bulgarian customers and encouraging them to voice their concerns.  Some large poker affiliates in Bulgaria have already come out en masse to battle the proposals.

The key messages for the campaign are as follows:

• It's against EU law - according to Article 56 Treaty on the Functioning of the European Union, EU citizens are entitled to use cross border services.
 
• It's unworkable - online gaming providers will be made to set up at least one gaming point within each of the 28 provinces.  Why does this matter if you're betting online?

• Control advertising, don't ban it - a complete ban on advertising is unnecessarily restrictive

• Where's the social responsibility? - Where are the Bulgarian Governments' plans on age verification, fraud protection and gambling education, which are crucial to EU law?

If you would like to get involved and fight the Government on this ill thought out law please drop us an email or comment in the Rant Box on the right2bet homepage.

And most of all, sign the petition!
 

Gamblers in Romania may face a prison sentence of up to two years if amendments to current legislation are passed. Romania's government submitted their draft gaming law for European consideration at the start of July, with the hope of putting it into practice from the end of 2010. However senior legal figures have criticised the law, calling it 'unclear',  and remarked that it could leave unlicensed online gambling operators facing prosecution as well.

Bogdan Mararu, a senior partner at Romanian gaming law specialists Mararu  & Mararu SCA, said the legislation fails to clarify the current regulatory uncertainty surrounding online gambling in Romania:

"My frustration is with the quality of the legislation in Romania. We so have tough and well-thought legislation in many areas but when it comes to the gambling industry this is unbelievable...The law is there to forbid online gambling, not to regulate it. The way it's drafted is very ambiguous and open to a lot of interpretation. It's basically an unprofessional piece of work."

Implementing a law to regulate online gambling is being considered by the Romanian government so they can collect tax from the industry and boost fiscal revenues.  Unless the government can create a fair and attractive regime which will encourage EU licensed operators to obtain a Romanian licence, Romanian consumers will continue to be offered a lack of choice and not have access to the better priced operators in other parts of the EU. It has been estimated that Romanians spend around €500 million on online betting sites every year, most of which the Romanian Government would deem 'illegal' despite being licensed in another EU member state.

Fortunately the European Commission now has three months to consider the legislation, and is expected to issue a response to the Romanian government about the compatibility of their proposals with EU law by the 4th October. Should the Romanian coalition Government receive the 'green light', the law is expected to pass through their Parliament without problem. However, it is more likely that the Commission will have several concerns about the legislation and its compatibility with single market laws and may issue a Reasoned Opinion to the Romanian government, as it did to the Polish government last week.

Right 2 Bet is encouraging all Romanian gamblers to get in touch with their MEP via the website to make sure their voice is heard in the European Commission.

Liberalisation of the French online betting market has become farcical over the last few weeks.  We have always condemned the reforms, which we all know are the French seeking to appear like they are opening up when in reality all they are doing is supporting the positions of their domestic providers, but the realities are only just starting to hit home.

We heard today that because things have been so rushed to get the regime in place before the World Cup, French citizens are likely to be unable to receive any of their winnings until the end of the tournament.  This is all due to archaic registration and verification rules that have been put in place, meaning that a user can only withdraw winnings after they have validated an account via a code sent by mail to their home address.

This requirement doesn't help anyone, which is why we are so surprised by it.  It is obviously something that is a major inconvenience to the consumer, it increases the burden on the operators themselves and, ironically, it achieves nothing for the authorities in terms of verification that couldn't have been achieved electronically.

As we have been saying since the first moment these reforms were put in motion, the burden placed on operators makes it extremely difficult for anyone but the two monopolies, PMU and FDJ, to enter the French market, certainly if it has any ambition of running at a profit - something that is a clear disincentive to competition, whether we like it or not.  This registration-by-post requirement is just another unnecessary example and adds to the list of disincentives, both for private operators to enter the market and for consumers themselves to partake in it.

The ambition to have the regime in place for the World Cup has meant that there were just three weeks to review and award sports betting licences in time for Friday's big kick off, with results of that period expected tomorrow.

It is beyond belief that this kind of thing can be allowed to happen.  How can newly-licensed operators be given three days to get up-and-running in time for the biggest sporting event the world has ever seen and be expected to compete on the same level as the long-established FDJ?
 
It is a disgrace.  We hope all French consumers who like a bet online sign our petition and add their voice to the thousands who have already voiced their anger at this unbelievable situation.

Right2bet, qui regroupe les consommateurs qui militent en faveur d'un accès équitable au jeux et paris en ligne en Europe, fait part de sa colère au sujet de la réforme française du jeu et des paris en ligne.
 
La réforme, promulguée le 13 mai, offre la possibilité à des opérateurs privés d'acquérir une licence pour exercer leurs activités mais seulement sous certaines conditions.

Ces conditions, qui incluent une taxation élevée de leur chiffre d'affaires, sont perçues comme excessives et il est probable que de nombreux opérateurs s'abstiennent, en conséquence, de postuler à une licence française. Dans ce cas, ces opérateurs seront inclus dans le dispositif de blocage des adresses IP qui a également été prévu par la loi.

Gary Mullen, responsable de la campagne Right2bet, estime que la logique derrière cette réforme est simple : "C'est une tentative du gouvernement français de présenter ses lois comme conformes aux dispositions européennes sur la libre circulations des biens et des services, alors qu'en fait il s'agit de sauver les monopoles d'Etat existants en érigeant des barrières et en créant des restrictions draconiennes pour tous les opérateurs qui souhaiterait s'implanter en France."

Dans le passé, des mouvements comme Right2bet ont exposé le fait que l'existence de monopoles d'Etats contrevient au règles fondamentales de l'Union Européenne. En dépit de la possibilité pour des opérateurs étrangers de postuler à une licence licence française, Right2bet, entre autres organisations, estime que la concurrence sur le marché français ne sera pas réelle et que les principaux perdants de cette situation seront les joueurs et les parieurs français.

Gary Mullen explique : "Right2bet a démontré que les joueurs qui parient avec des opérateurs privés bénéficient de cotes sensiblement plus avantageuses que ceux qui jouent avec le monopole français.

"Non seulement les joueurs français vont être pénalises par un choix limité et des conditions moins avantageuses mais il vont également subir d'une protection moindre. En effet, le blocage des adresses IP d'opérateurs sans licence s'est toujours soldé par un échec notoire dans le passé. Les opérateurs qui choisiront de contourner le blocage IP, contrairement à ceux qui choisiront de respecter la loi française sans pour autant y souscrire, seront donc peu susceptibles d'exercer un niveau élevé de responsabilité sociale pour la protection des joueurs français.

"Le résultat est que le blocage des adresses IP aura l'effet inverse de ce qu'en attendent les autorités françaises, avec l'émergence et la croissance d'un marché illégal, opéré par des acteurs irresponsables... Les joueurs français seront ainsi les premières victimes de cette politique.

Right2bet souhaite réagir à cette situation. Nous encourageons le plus grand nombre d'individus possible à signer notre pétition qui sera communiquée aux responsables politiques à Paris et à Bruxelles, et de se faire ainsi entendre. Pour signer, il vous faut simplement vous rendre sur  www.right2bet.net et ajouter votre nom aux milliers d'autres qui ont déjà exprimé leur opposition à ce qui ce déroule aujourd'hui en France et ailleurs au sein de l'Union Européenne.

We are sorry to report yet more bad news.  French reform of online betting passed the country's National Assembly yesterday, ignoring any concerns about whether or not it will be compatible with EU law, which it clearly is not.

The legislation was passed by 299-233 votes and should become law within the next two weeks.

The reforms have come under attack from a wide-range of sources, none more so than here at right2bet and the many members we represent.  Why?  Because this is not reform, it is an attempt to look like reform whilst continuing to shore up the state monopolies and domestic providers, most notably the Pari-Mutual Urbain (PMU) and Francaise des Jeux (FDJ).

It has always been the aim of the French authorities to force reform through in time for the Football World Cup this summer, and doing so has led to a farcical situation whereby only the state monopolies will be legally allowed to accept bets on the tournament as there is not enough time for private operators to apply for a licence.

The Remote Gambling Association, a group that represents many of the European Union's private operators, said the system that has been passed is 'seriously flawed', particularly with sports betting.  Mind you, that was exactly what the French authorities set out to achieve, so perhaps we shouldn't be surprised.

The reform makes it extremely difficult for licensed EU operators based outside French borders to operate at a profit.  It is rumoured that many companies will be forced to cease offering any services to French citizens in order to comply with the law, meaning the lack of choice, value and protection that those based in France currently experience will only continue.

Our very own right2bet betting challenge has shown over the past few months that French consumers are getting robbed of bigger odds and better value.  After 18 weeks of the challenge, you would have made €399.30 if you had placed €10/week on the winner of a big football match with the best-priced private operator.  Had you made exactly the same bet with FDJ, you would be a meagre €305.50 better off.

Yes, French consumers will continue to be the victim in this way.  They will continue to receive 24% less winnings than other EU citizens who have access to the benefits the free market offers.

Right2bet wants to do something about this.  Click here to sign our petition today and add your voice to the cause.

The right2bet weekly blog launched on the GX website last week, and the second post is now online.

In this week's blog for GX we spoke about the Real Madrid v Lyon shirt sponsor debacle from a couple of weeks ago, when Lyon were banned from wearing BetClic on their shirts but Madrid were allowed to wear bwin.  It was a crazy situation and one that highlights the madness around EU betting regulations more than most in recent times.

To read that latest post click here.

And if you've not done so yet, please sign the petition, tell your friends about the campaign, join our group on Facebook and follow us on Twitter.  Then use all those channels to spread the word!

A Senate hearing on Tuesday looked at ways in which the French authorities could make it more difficult for operators not licensed in France from offering their products to French citizens.

They are now looking at adding wording to the new gambling bill, set to 'open up' the market in time for the World Cup this summer, that makes it illegal for any French-based company from taking advertising or even simply linking to certain sites.

Those sites based inside France, including multi-nationals with French subsidiares, notably Google, found to be 'aiding and abetting' (no pun intended) foreign operators could face fines of up to €100,000.

This is just another example of the French bill being a facade.  They want to appear like they are liberalising their market, to fit in with EU rules, but clearly they are going to make it as hard as possible for foreign operators to offer their services to value-deprived French citizens, and are even looking to make it difficult for those who do apply for a French license.

At what point is someone going to wake up and say 'enough is enough'?  Don't wait for someone else to do it, sign our petition today and add your voice to the thousands of EU citizens already calling for fairness in online gambling.

The Remote Gambling Association has today threatened to take legal action against the French government over their proposed online gambling bill, should the legislation be upheld in the country's Senate next week.

The French have been roundly criticized in recent years for the increasing protection afforded to their betting monopolies, the PMU and FDJ. In response to the mounting pressure, they revealed plans last October to regulate the industry, however their proposal was riddled with conditions and restrictions which would make the situation worse for consumers, not better.

The new French plans include a monumental  duty tax of 15.5% on horseracing pools and 8.5% on sports betting, which would make the market highly unattractive to foreign operators who would struggle to make a profit as a result. Furthermore, betting exchanges would be banned (don't ask us why) and so too would fixed-odds betting on horseracing.

The French are attempting to pull the wool over everyone's eyes and fortunately the RGA, the EGBA and not to mention ourselves, are simply not buying it.

They are claiming to be opening up their market, to reduce the power  and market share of the monopolies, however their proposed plans will only strengthen the position of these unlawful establishments since it will increase the products they can offer, while at the same time ensuring that competitors are not forthcoming, all while falling into line with EU regulations.

Surely the EU Commission will recognize this cunning plot and respond accordingly? We would hope so, although unfortunately, as seen in recent times, the EU Court rooms can be sympathetic places for protectionist Member States.

Ultimately, as is often the case, consumers will lose out. French citizens will be robbed of the chance to bet with a wide range of operators and the products they have available to them will be inferior too.

Anyone who wants to argue that the French monopolies are giving citizens a better deal only needs to glance at our Charity Betting Challenge feature.

After 10 weeks of betting - betting €10 each week - FDJ players would have made €66 less onthe same wagers than those EU citizens free to bet with Private operators.

Their profit is 40% less than their European neighbours because the odds that they are being offered by their state monopolies are far inferior when compared to other licensed, legal EU operators.

A major worry of the RGA is that if the French legislation is approved domestically and by the EU Commission, it could set an example to other Member States who could follow suit.

RGA Chief Executive Clive Hawkswood said: "It's time to lay our cards on the table. The sports-betting regulations are just not workable. Our members think we have nothing to lose, but also feared that if unchallenged, other member states might follow the French example."

He went on to say: "Tax is certainly one of the issues. Not being able to offer fixed odds on horseracing is another. Then there is the issue of capping the return to players. The disparity between what will be on offer in France and what is available elsewhere is huge. And enforcement is very difficult."

The EGBA are also planning to take the fight to France. Their Secretary General Sigrid Ligne said: "From the beginning, we had identified several aspects of the text that we felt make no sense, and also that they were contradicting EU law."

It's now more important than ever that the right2bet campaign reaches as many people as possible, urging them to sign our petition and pressurize the powers at be to start protecting the consumer.

Help us out by joining our campaign on Facebook, by tweeting about us on Twitter and by sending an Email to your MEP.

We will of course keep you fully up to date as this situation progresses.