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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."
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!

Right2bet GX blog launches

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In case you didn't see it, we had our first of a weekly series of articles on the GX website.  We are delighted to have the opportunity to speak about the key issues in the area of online betting regulation to such a key audience.

At the end of the day, the consumers with the most interest in this area and the most to gain (or lose, if change doesn't materialise) are European gamblers, and GX speaks directly to that audience.  It is key that we get the right2bet message out there so that more and more people are aware of the dire state of play around the EU.

In this week's blog for GX we spoke about the background to the campaign and our amazement at the situation as it stands.  We also outlined why change is good for everyone - consumers, betting companies and even governments.  The only people who lose out by an open, fair and well-regulated gambling industry in the EU are the monopoly operators themselves, most of which are in bed with the powers that be.

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!  Together, we can make a change and get rid of the draconian restrictions on European gamblers once and for all.
This weekend the betting challenge went (in mind not body, unfortunately) to sunny Spain for a look at the Barcelona v Valencia match-up.

It was a huge game for Barca, who had to win to keep up with Real Madrid.  It's no surprise, therefore, that the Catalan giants raised their game and came away with a 3-0 victory against third-placed Valencia, who can now definitely forget any hope of a top two finish.

It was a short-odds victory this week, but yet again we see you, the betting public, losing out as a result of archaic and protectionist laws.  Here's the result in numbers:

Odds on a Barca win:

FDJ (Fra): 1.35
De Lotto (Ned): 1.25
Svenska Spel (Swe): 1.38
Danske Spil (Den): 1.35
Lotto Bayern (Ger): 1.35
Best Private Operator: 1.42

Profit on a €10 bet on a draw
:
FDJ: €3.50
De Lotto: €2.50
Svenska Spel: €3.80
Danske Spil: €3.50
Lotto Bayern: €3.50
Best Private Operator: €4.20

Profit From Challenge So Far:


(After 17 Weeks)
FDJ: €290.50
De Lotto: €294.50
Best Private Operator: €383.70

(After 12 Weeks)

Svenska Spel: €225.10
Danske Spil: €252
Lotto Bayern: €227
Best Private Operator: €308.70

So not a massive difference this week as Barcelona were always fancied to come away from this one with a vicotyr, by both monopolies and private operators alike.

One obvious point this weekend is The Netherlands, where De Lotto shows how out of touch it is with the rest of Europe's monopolies, let alone the private operators, offering a measly 1.25, compared with 1.35 from the next-worst monopoly and 1.42 from the private sector.

Sign our petition today, and add your name to the fight for freedom of choice in the EU. We need your support and with it, we're confident of making our voices heard.

President of Belarus wants regulated betting industry

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Good news from Belarus, where President Alexander Lukashenko has stated publicly his want for a regulated gambling industry.  Whilst it's not clear this definitely covers the online industry as well as land-based operators, we're certainly pleased with the noises coming our way.

The catalyst seems to be the need to find a much-needed boost for the economy and a regulated gambling industry with EU operators paying tax locally an obvious move to take.

The President also pointed to the fact that a regualted offline industry will create jobs, boost tourism and bring much-needed foreign investment in the country.

Perhaps the most pleasing part of Lukashenko's statement is his belief that prohibition produces "nothing but harm", and that forcing gambling underground in this way makes it open to criminal influences.

Great to see a politician seeing the light and not being afraid to say it.  In an open and regulated betting market, consumers get the choice, value and protection they need.  In countries with a state-sanctioned monopoly, consumers are forced to look for these benefits with unregulated offshore operators, offering no protections whatsoever.

Just look at the right2bet betting challenge.  After 17 weeks of betting, you would have made 132% more money with the best-priced private operator than the French FDJ, or 130% more than De Lotto in The Netherlands.  Why?  Odds are vastly reduced and consumers are not getting the value the private sector offers.

It's baffling not more politicians look at this simple fact and see why the current situation in so many territories around the EU is unsustainable and good for nobody.  Maybe a move by the Belarusians will spark the revolt?  We can but hope.


Internazionale won a frenetic Milan derby on Sunday night, overcoming arch rivals AC Milan 2-0, despite spending most of the game with only ten men.

Diego Milito gave Inter an early lead, and Jose Mourinho's men rode their luck as the away side missed a plethora of chances after Wesley Sneijder had been sent off for the Nerazurri.

New signing Goran Pandev curled home a free kick in the second half to double Inter's lead and there was further drama in injury time when Lucio was sent off and Ronaldinho missed a penalty.

The result sees Inter stretch their lead at the top of the table to nine points, and the prospect of them winning their 5th Serie A title in a row is looking increasingly likely.


The match was the focus of this week's charity betting challenge and the odds offered on the eventual outcome across Europe can be seen below.


Odds On Inter To Win:


FDJ (Fra):                       2.40
De Lotto (Ned):              2.25
Svenska Spel (Swe):     2.30
Danska Spil (Den):        2.50
Lotto Bayern (Ger):       2.30
Best Private Operator: 2.64

Profit From a 10 Euro Bet on Inter

FDJ:                              14 Euro
De Lotto:                       12.25 Euro
Svenska Spel:               13 Euro
Danska Spil:                 15 Euro
Lotto Bayern:                13 Euro
Best Private Operator: 16 Euro

 

Profit From Challenge So Far

After 12 Bets

FDJ:                              193 Euro                      
De Lotto:                       200.6 Euro                 
Best Private Operator: 262.1


After 7 Bets

Svenska Spel:              141.5 Euro          
Danska Spil:                 164 Euro              
Lotto Bayern:                128.5 Euro         
Best Private Operator: 187 Euro


We're starting to sound like a broken record, however until the message is sufficiently absorbed by the powers at be, we simply won't stop. Yet again, European punters forced to bet with a public monopoly are being offered worse odds than their European neighbours who are free to bet with any EU operator of their choice.

The discrepancy between the odds this week wasn't the largest we've seen to date, however when one looks at the running totals we're accumulating, the difference in winnings between those free to bet and those not, are startling.

Help us fight for what is right by signing our petition and by writing to your MEP. Together we can ensure that all EU citizens are treated fairly and allowed to benefit from the fundemental freedom of choice.

 

Online betting and gaming: Is 2010 the year of deregulation?

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After a review of the Estonian and Latvian approaches to gambling regulation last week, we have been pleased to hear the news that the third of the former Soviet Baltic states, Lithuania, will be reviewing its laws regarding the hobby that is online betting.

Gambling has been legal in most forms since 2001 in the small nation, although the legal framework has not to date allowed for many changes in technology, resulting in many companies staying away from the market.

The new laws - which have been in the pipeline for several months - should make it viable for licensed EU bookmakers to offer bets and casino games to the people of Lithuania online.

The Baltic states are several of a number of states and nations all over the world which are looking to the gambling industry to dampen the effects of the global recession. The American state of New Jersey has announced a bill allowing casinos to offer online services to their customers within the state, a sign that the US could well be moving forwards with deregulation, as many had predicted after the UIGEA was delayed at the tail end of last year.

It's not only the Western nations that are waking up to the economic benefits of legal gambling, with countries as diverse as India and Mozambique having recently reviewed their laws.

The Right2bet charity challenge saw its first game in the Bundesliga this week, with Stuttgart's victory over champions VFL Wolfsburg ramming home the message that commercial operators offer better value than state monopolies.

Bavarian state bookmaker Bayern Lotto again offered the lowest price, meaning that they not only stand some way below the commercial operators but also their fellow state monopolies in the challenge standings after 11 games. It seems that when it comes to sports betting, Bavaria is not the place to be!

RGA Talks of Taking The French To Court

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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.

 

 

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