London Media & Entertainment Consulting Network (MECN) did a survey recently about operators of online poker and gambling sites and found many of them said Spain is a good country to expand to.

MECN’s report, “The Spanish Gambling Market - Key region for future growth” illustrates many reasons why Spain is set for imminent growth.

Gambling operators are eagerly searching for new markets following the collapse of online enterprises resulting from the signing of the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA), which was signed into law on October 13, 2006 in the USA.

Because the UIGEA makes it illegal for banks to handle betting transactions to online gambling sites from US residents, gambling operators are seeking to expand into less restrictive jurisdictions or into regions where an increased liberalization might be possible in the short term, to make up for the loss of the USA market.

Many autonomous regions in Spain are working toward liberalization of the market. The physical betting sector as well as interactive gambling could benefit from that.

A Guernsey based news agency has reported that the online casino and gaming industry in the region is growing very quickly following the fallout from the passing of the Unlawful Internet Gambling Enforcement Act (UIGEA) in the United States.

The Kensington Corporation, a Guernsey based company which advises Internet firms on gaming licences, has reported a surge in business since the UIGEA enforcement and feels that a United States government crackdown on the industry could work to its advantage as American companies look to set up abroad.

“While the changes in US legislation are significant, they had been well trumpeted in advance and most of our clients are outwardly focussed and seek revenues from the rest of the world,” explained Kensington Corporation managing director Norson Harris. “Significantly, a number of enquiries received recently are from US companies looking for a European base.”

Kensington has advised 24 of the 29 successful applicants in the region to date and acts for 21 of the current 25 ‘live’ gaming licences, including Tribeca Tables, WagerWorks and Paddy Power.

“We are delighted to have become lead provider of administration services to the Alderney gaming sector,” added Mr Harris, who also advised on the draft gaming law. “There’s continuing growth in the market and the Alderney commission will continue to deploy stringent regulation over these businesses.”

BERLIN - Focus magazine reported on Sunday that Germany’s 16 federal states want to prevent foreign companies from offering Internet betting services. New legislation which is to be signed off by state premiers on December 13 2006 will mean that both foreign and German firms will be prohibited from offering online betting. Either Internet service providers will be asked to filter out Gambling Web sites or banks will be instructed not to transfer money out of Germany to pay for bets.

The state of Saxony and two other states recently imposed a ban on commercial betting as they attempt to protect their lucrative monopoly as lottery operators.

The ban was directed mainly at Austrian Internet betting firm bwin.com, whose German unit is the country’s biggest commercial bookmaker.

Playing in Singapore’s first International poker tournament are poker stars like Gus Hansen from Denmark and Harry Demetriou from the UK, alongside Singapore-born Willie Tann, who now lives in the United Kingdom.

The tournament is jointly organised by UK-based online betting exchange Betfair and Singapore partner Capital Events.

It runs for 5 days till Friday, and about 700 people (300 Singaporeans) will play in either the main event or in splinter games.

The main event will see a 3-day elimination contest starting on Wednesday.

To compete in this, players either had to qualify through online poker tournaments held by Betfair, or pay a £3,000 non-refundable buy-in fee.

Online gambling reorganisation planned

With the sell-off of all U.S. operations now in the past, the UK public company Leisure and Gaming has announced plans for a massive reorganisation to provide a long-term future for the company.

Under the leadership of CEO Henry Birch, the company’s plans are to be put before shareholders at an Extraordinary General Meeting on November 29. Proposals include the approval for renegotiated banking facilities.

Following the sale of its U.S. operations to Starwood - Stockdale Investments, Leisure and Gaming’s main asset is now its Betshop operations, acquired earlier this year. In terms of the deal with Assheton, L&G has retained the database of non-US customers and a copy of the proprietary Vegas Technology software.

The earn-out terms of the deal with Betshop’s previous owner Gabriel Chaleplis have been renegotiated and Chaleplis remains on the board to oversee the mainly Italian-facing online and offline operations.

The company’s new strategy is to focus on the Betshop Italia franchised chain of more than 800 shops and sports betting and gaming outlets. The Betshop online operation which operates in 8 languages will be run as a separate unit.

Ryanair, the low cost European airline, currently locked in an agressive bid for fellow Irish airline Aer Lingus, is planning to develop its internet casino by announcing plans to turn its planes into flying casinos.

Europe’s largest low-cost airline announced this week that it was forming an online gaming partnership with jackpotjoy.com, an online bingo operator owned by Gamesys. The deal would allow passengers to play ‘Ryanair Bingo’ as well as instant win games while booking their flights on its website.

However Ryanair chief executive Michael O’Leary told a press conference that the airline hoped to create an in-flight service by the middle of next year, which would be accessible via mobile phones or through bespoke onboard terminals.

O’Leary did not disclose any revenue forecasts for the new service but revealed that Ryanair expected income from ancillary services as a whole to grow by about 20 percent a year over the next five years. Ancillary services currently make up about a fifth of the airline’s total revenues.

In the past 5 years Internet Gambling has more than doubled! This is according to an independent research review published by the Department of Culture Media Sport.

The research was organised ahead of the 1st ever online gambling summit, hosted by Great Britain at Royal Ascot today. The summit will seek to secure international standards for the regulation of online, interactive TV and mobile phone gambling.

The research shows:
> there are nearly 1,000,000 regular online gamblers in Britain alone;
> they make up nearly one-third of Europe’s 3.3 million regular online gamblers;
> Europe’s regular gamblers stake approximately £3.5 bn pounds a year - an average of £1000 each;
> there are now 2,300 sites across the world. A large number of these are based in a few key nations, with Antigua (537) top of the pile and Costa Rica in second with 474;
> the UK currently has 70 online betting sites, but no gaming (poker, blackjack, roulette etc) sites;
> women are becoming increasingly important in the remote gambling market. During the World Cup about 30% of those visiting key UK based betting websites were women.

Secretary of State for Culture, Media and Sport Tessa Jowell said
“This research shows that online gambling is on the rise and there is a need to do something about this at a global level, as well as in the UK. I want to secure international support for agreed standards of regulation. That’s why I called the summit today.

“Of course we also want online gambling companies to come onshore. We will welcome them here because we believe that by allowing those who want to gamble to do so over the counter, not under the counter is the best way to protect children and vulnerable people and keep out crime.

“But we won’t take part in a regulatory race to the bottom. On the contrary, if companies do come to the UK it will be because ‘regulated in the Great Britain’ will mean a website is subject to the most stringent controls and social responsibility requirements anywhere in the world. ”

The research was conducted prior to the U.S. decision to ban the processing of payments for online gambling websites. It makes three recommendations:
> Greater international co operation including harmonised regulations to curb problem and youth gambling;
> Co operation with the gambling industry; and
> More research into the extent of participation in remote gambling

A month after the US Congress signed the Unlawful Internet Gambling Enforcement Act, the United Kingdom hosts an online gaming conference to find solutions on how to prevent criminals from defrauding internet gamblers, protect children by preventing their access to gambling Web sites and to prevent money laundering.

Representatives from 32 countries will meet at the Ascot Racecourse outside London on Tuesday to discuss ways to implement the regulatory guidelines set forth by Great Britain in its efforts to regulate internet gambling.

“Broadly speaking we have three choices: you can prohibit, like the U.S., do nothing or regulate, like we have,” Britain’s culture secretary Tessa Jowell said. “I firmly believe we have chosen the path that will do the most to protect children and vulnerable people and keep out crime.”

“The Act directs the U.S. government in deliberations with foreign governments concerning money laundering, corruption and crime to encourage cooperation by foreign governments and relevant international fora in identifying whether Internet gambling operations are being used for money laundering, corruption, or other crimes and to advance policies that promote the cooperation of foreign governments, through information sharing or other measures, in the enforcement of the Act.” is stated within the provisions of the U.S. Act barring financial transaction to online gambling operators.

Britain’s acceleration to take the front seat as leading online gambling regulating nation is a much needed step and a welcomed one by the entire gaming community.

Britain’s move to take the lead as main promoter of internet gambling regulations brings new hope to the future of the industry and sweeps aside tainted Antigua and its banana republic style dealings.

Online Gambling and Poker company, PartyGaming, lost 75 percent of its revenue when it closed its US sites to comply with the new law enforcing a ban on Internet gambling. Chief Executive Officer Mitch Garber had this to say:

“Chaos breeds opportunity and we will seize that opportunity'’ Garber also said the following when he laid out the Gibraltar-based company’s strategy for European expansion, “The European Union is run in a way that favors our business'’.

The U.K., Italy and Belgium are looking to regulate Online gambling, rather than make it illegal, as players turn increasingly to the Internet. On Oct. 12, regulators told members such as France and Austria to stop discriminating against international bookmakers and casinos.

Italy next year will let companies offer internet lotteries, bingo and betting on sports or games of skill. The UK will begin licensing private Internet gaming sites in September. Belgium is working to change its legislation as well, and private companies are already allowed to offer sports betting in Austria.

A huge UK group is to invest 3 million Pounds Sterling in a megabucks poker tournament.

The massive resources of UK betting group Ladbrokes will be behind a revamped version of the popular Poker Million tournament planned for next year in a bid to create a European rival to the famous Harrah’s World Series of Poker which takes place annually in Las Vegas, USA.

Ladbrokes is very serious about the new project and has available 3 million quid as an initial investment in the project.

The 2006 World Series of Poker was the biggest live poker tournament in history, with about 8000 players competing for more than 44 million Pounds in prize money.

This year’s Poker Million tournament, run by Ladbrokes and the sports promoter Barry Hearn, will culminate in all those who have qualified via Ladbrokes Poker.com attending a 7 day final at its new casino in Paddington, all televised on Sky Sports.

The winner will pocket $1.2 million out of a total prize pool of $4.1 million.