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Bulgaria update

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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!
 

Romanian punters could face prison sentences

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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.

New French betting regime hits rock bottom

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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.

ECJ is out of touch with modern day consumers

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The European Court of Justice (ECJ) yesterday ruled on the Ladbrokes and Betfair cases against the Dutch Government and incumbent monopoly operator De Lotto.

It never ceases to amaze us that the judges who sit in the EU's highest court - who are undoubtedly frighteningly intelligent men and women - cannot see the realities of modern day e-commerce when it comes to online betting.

One of the key questions put in the case was whether the Dutch authorities are entitled to prohibit an operator such as Ladbrokes or Betfair, licensed in other Member States, from accepting Dutch customers.  The Court ruled that it is irrelevant where in the EU a company is licensed and that if Dutch customers can access their sites, the Dutch authorities have the right to block them.

What the ECJ don't seem to have grasped is that consumers clearly do not make the distinction about where a company is licensed - be it in the betting industry or any other - and nor do they care.

The Court made their ruling on the basis that Member States are allowed to restrict their online betting market in order to prevent fraud, crime and addiction with the presumption that monopolies are better at achieving this than licensed private sector operators.  It is clear to us that this judgement has been made devoid of any evidence and in fact that licensed private operators are as good, if not better, at addressing key issues such as these.  We are yet to see anything that supports the fact that a restricted market lowers addiction - in fact if you look at the example of the UK, where an open and competitive market operates,  the government estimates that addiction rates are around 0.6% of the adult population, much lower than in many Member States who have a monopoly system in place.

Online betting and gaming is the only industry left in the EU on which such arcane views are held, particularly relating to the restriction of the online market.  The bottom line that we have always tried to communicate to policy and law makers is that consumers online want value, choice and to know they are betting with a safe and regulated company.  Whether that company is physically based in the Netherlands, UK, Germany, France, Spain, Malta, or wherever, doesn't matter to the end user.

In seeking to ban reputable companies like Ladbrokes and Betfair from the Dutch market, all the Dutch authorities are doing is forcing their consumers to use unregulated operators from outside the EU.  It is not as if banning regulated companies in a territory is suddenly going to stop people seeking out the things they want online, it will just change how - and where - they go to get them.  Lest we forget that one third of online gamblers at any one point in the day are based geographically in the United States.  Need we say more?  Prohibition does not work.

Responding to the announcement John O'Reilly, Managing Director of Ladbrokes eGaming, said: "The Ladbrokes and Betfair cases have clearly demonstrated the fragility of the entire Dutch legal framework in relation to gambling. Today's ruling confirms the need for its replacement with a system that incorporates strong regulation and licensing, but also introduces competition for the benefit of consumers.  Other EU countries have introduced new licensing and regulation systems that embrace competition - it is now time for the Netherlands to do the same."

Meanwhile Betfair's Director of European Public Affairs, Tim Phillips said: "Today's judgment once again demonstrates the need for the European Commission to take a lead on this issue, so that we can separate fact from fiction and settle the online gambling debate once and for all."

That, in a nutshell, is what we at right2bet are trying to do.  We want the Commission to listen to the views of ordinary consumers and stand up and do something about the mess that is currently evident in the regulation of online betting across the EU.  The countless ECJ preliminary rulings we have seen in recent years have changed very little - what we need is decisive action on an EU-wide level to finally settle things once and for all.

One positive move today saw the Court rule that online betting licences must be awarded in a transparent manner.  This is a notable ruling that could cement in law the requirement of all EU Member States to operate licensing regimes in a fair way, so that all operators can apply, no matter what Member State they are from.

That said, a pan-European approach needs to be taken in order to ensure clarity in this area, and that is why we want as many people as possible to sign our petition and add their voice to the thousands already on it.  Sign today by clicking here.

William Hill pull out of France

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William Hill are the latest big-name company to stop accepting bets from France following the adoption of the new online gaming law earlier this month.

William Hill Online are considering whether or not to apply for a licence in the country and in the interim are to stop French-based consumers from using the site.

A company statement on Wednesday said: "In conjunction with the changes to the regulatory regime in France, William Hill Online is considering whether to apply for a licence to offer permitted online gambling products to French residents."

This is another damning blow to French consumers.  The withdrawal of companies like William Hill from the market means they have access to an ever-decreasing number of providers, meaning less competition, less value, less choice and, ultimately, the need to look beyond the confines of EU-based operators for the choice consumers crave.

As we have said for some time, legislative change like the French have brought in serves to cause the very thing the authorities are seeking to avoid.  Consumers will be forced to bet with unlicensed operators from far flung fields, where the need to protect the consumer, prevent crime and underage gambling, amongst other things, is given scant attention.

If you have not done so already, please sign our petition and encourage your friends to do the same.
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.

Right2bet GX blog puts the spotlight on the Dutch

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In our weekly blog on gambling portal GX, we have put the situation in The Netherlands in focus.

In a nutshell, it's a shameful situation where Dutch citizens are being denied the considerable benefits of the private sector whilst the government backs a discriminatory regime through De Lotto, the sports betting monopoly.

Read the full article here on GX.

And, of course, if you've not already done so be sure to sign the right2bet petition, follow us on Twitter and tell all your friends!
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