Spain's new gambling laws are 'impossible to implement'

MADRID If you win at bingo, or are hit with zillions by one of the several lotteries, you have to report it to the tax authorities. You might not get away with not doing so with the latter, but the bingo winnings -and the vast majority of smaller lottery winnings, including 'money returns', scratch cards and the occasional few euros- are much easier to evade paying taxes on. One report says "You just rip up any receipts and throw them away." Under the new laws on gambling, it is also theoretically possible to ask for a receipt for losses that then become tax deductible against any winnings. (A more detailed article will soon be available on SpainInformer.com)

To bet or not to bet, that could be the question

EU / GIBRALTAR Over the years the financial stability of Gibraltar has depended in good measure on the gambling industry, which is why it is well regulated, at least according to industry sources. It is also one of the fastest growing sectors of the service industry in the EU growing at a rate of 15% per year, with revenues estimated at €13billion for the 2015 financial year. But there are innumerable online gambling websites that do not come under these regulations, and expose consumers to fraud and money laundering activities. The EU is now proposing a common standard of regulations that will bring member states and the industry together to prevent illegal activity. Among other measures, which are not proposed as legislation for all member states but rather as an enveloping set of actions and principles, are improvements to the age verification systems, online content filters, responsible advertising and increased parental awareness of the dangers of gambling. The Commission knows there is a responsibility to protect gambling addicts and their families. (Gamblers Anonymous, Gibraltar)

It's official: Eurovegas chooses Madrid for European expansion

No details have emerged about tax, labour or environment concessions

MADRID (Agencies) As we reported recently, the company owned by billionaire magnate Sheldon Adelson, Las Vegas Sands, has chosen Madrid as its site for expansion into Europe. The battle between Spain's two major cities, was won by the nation's capital instead of Barcelona, which announced recently that it planned its own 'theme park'. Both cities vied for the gambling centre on the assumption that it would employ some 200,000 people, directly and indirectly, particularly during the construction stages. Las Vegas Sands says it means an investment of some €17,000 million. SOON YOU WILL BE UNABLE TO READ THE REST OF ITEMS SUCH AS THIS WITHOUT A SUBSCRIPTION>>>

William Hill gets U.S. gaming licencegamb

GIBRALTAR (Agencies) With an important presence on the Rock, one of the world's largest gambling outfits, is ready to be rewarded with a licence to operate in the United States. This follows the award of a licence by the Nevada Gaming Commission, which leads to another two such permits elsewhere in the US. Britain's largest bookmaker had announced last year that it would be buying American companies (AWI, Brandywine and Cal Neva), on condition that it was granted the licences to operate. The purchases are expected to have been completed by the end of this week. There is of course a lot of work ahead and the companies will not be in full operation for another couple of years. In the meantime they can begin offering sports betting on mobile devices. This is considered a prime market but, more importantly, it opens the door, eventually, to be first in line when legal restrictions on online gambling are lifted, which may not be too long in coming, according to some in the know.

Victor Chandler to become BetVictor in UK

Victor Chandler
(Photo: casinoscamreport.com)

BetVictor runs successfully all over Europe, UK 'catching up'
GIBRALTAR (GibChronicle) Gibraltar-based betting pioneer Victor Chandler is to rebrand to BetVictor in the United Kingdom. In a recent statement Victor Chandler said it maintains a rich heritage in the UK, from a small family business to one of the strongest independent sports and gaming companies in the world. The decision to change the brand name is to ensure consistency and instant recognition across all international markets. BetVictor is already running successfully across Europe, and will now be the banner under which the UK operation trades as well. The uniform brand will leverage all the long-standing qualities and values, and most importantly the pioneering spirit and passion for sport that makes Victor Chandler such a trusted and successful business, it said.>>>

Gib Gaming Commissioner stalked by private detective

Gaming Commissioner Phil Brear

GIBRALTAR (GibChronicle/Dominique Searle) The complex twists and turns of the gaming world have delievered a startling new dimension to the court case seeking to force Gibraltar’s Gaming Commissioner Phil Brear to release payments of some £825,000 to a set of gamblers he claims were party to a clever ruse that deprives them of their winnings. Papers submitted to the Supreme Court reveal that the claimants are relying on the reports of hired private detectives who followed Mr Brear and family around Gibraltar, at the Eliott Hotel, Gauchos and to meetings at Hassans, even apparently to Amar’s bakery for a snack and then to his second home in Sotogrande.>>>

Remote Gambling to be regulated 'at point of consumption, not point of supply'

UK (DCMS) All gambling operators selling into the British market - whether based in the UK or abroad - will have to obtain a licence from the Gambling Commission, under plans announced today by John Penrose, Minister responsible for gambling policy and regulation. It’s estimated the internet gambling market in Europe will be worth 12.3 billion Euros by 2012 and the proposals will, for the first time, mean that remote gambling is regulated at the point of consumption not the point of supply, ensuring British consumers will always be protected, no matter which online gambling site they visit. John Penrose said:>>>

The seduction of shoreline gambling

GIBRALTAR (GibChronicle) Senior cruise executives from across the globe showed "considerable interest" in plans to permit gambling on cruise ships docked overnight in Gibraltar. The proposal was outlined by Deputy Chief Minister Joe Holliday in a speech to over 100 industry leaders at the 1st World Ports Summit in Brussels last week, on the eve of the European Cruise Council. It also coincided with publication of draft legislation that, once approved, will make the move a reality. The draft law could lead to vessels staying longer in Gibraltar, which in turn would increase the economic impact that passengers have on the economy.>>>

Gibraltar to allow cruise ships to extend casino hours

GIBRALTAR (GibChronicle) Cruise ships will be allowed to open their on-board casinos and shops to their passengers after 6pm, providing an incentive to remain alongside until the early hours of the following morning, Deputy Chief Minister Joe Holliday announced yesterday. This policy decision will encourage cruise ships to extend their calls in port by staying later in the evenings bringing additional business opportunities for local traders. Mr Holliday said: "Up until now, ships have usually sailed at around 5 or 6pm in order to reach international waters and be able to open their revenue-earning onboard outlets for their passengers, even if their next port of call was close by. This initiative will give both passengers and off-duty crew the opportunity of going ashore in the evenings. This means additional business opportunities and ships will save fuel by remaining tied up for a longer period of time. It will, equally importantly, enable local tour operators to offer a wider range of shore excursions for passengers who will have more time to see what Gibraltar has to offer, both on tour and independently.">

eGaming summit today in Gibraltar

GIBRALTAR (GibChronicle) KPMG Gibraltar is today holding an eGaming Summit with the aim of bringing the sector's major players and service providers together to discuss Gibraltar's potential in the global marketplace. The KPMG eGaming Summit, which is by invite only, is being held at the Leisure Business Centre in Ocean Village. It sets out to bring together key stakeholders and decision makers to consider and debate how to ensure Gibraltar remains the premier gaming jurisdiction in light of developments and the direction of the sector both locally and globally. The Chief Minister Peter Caruana, will open the summit.>

Betfair moving to Gibraltar to save £20million a year on taxes

GIBRALTAR (Agencies) Betfair, the world's largest betting exchange, is moving part of its business to Gibraltar to cut its tax burden by a reported £20,000,000 a year. Founded 10 years ago by one-time professional gambler Andrew Black and former JP Morgan derivatives trader Ed Wray, Betfair said it expected to save 20 million pounds a year as a result of the switch, which will see its betting exchange operate under a Gibraltar licence from Wednesday. Betfair currently pays 15 percent tax on gross profit from betting, but this will drop to 1 percent following the move. According to CEO David Yu, the company is seeking to avoid the 'double taxation' it faces paying in the UK>

Spanish gambling group sues bwin

SPAIN/GIBRALTAR (GibChronicle/Brian Reyes) Spain’s Grupo Codere has filed a legal challenge to force Gibraltar-based online gaming company bwin to drop its sponsorship of Real Madrid football club and stop advertising in Spain. Codere, which operates traditional bingo halls, casinos and betting shops, alleges unfair competition in a civil lawsuit against bwin and the club filed in a commercial court in Madrid. Codere claims that “aggressive” advertising and promotional campaigns by bwin and Real Madrid breach Spanish law.

German project for moving Casino to Sotogrande, rejected by Council

SAN ROQUE (Agencies) Further to the two projects for the Casino de San Roque (see our earlier item here), Mayor Fernando Palma has rejected the proposal by a Germn company to buy the license and 'move' the casino to Sotogrande. "We are very concerned by the proposal and believe that there may be conflicting interests involved," said Palma, adding that the Council cannot allow the idea to progress. The German company had intended to purchase the license from the present owner of the Casino, Partouche, a French company that closed it down last year, and open a gaming facility near the Marina in Sotogrande, where they would rent several shopfronts for the purpose. That would leave the present building (photo) empty. However, Palma indicated that he and the Corporation are interest in the project by a Portuguese company, which intends to not only purchase the license but also the building, plus some adjacent land on which to build an hotel.

Spain's online gaming White Paper approved by Government, now to Congress

SPAIN (Agencies) The grey area of Spain's gambling laws begins to clear. The Government today approved a Proyecto de Ley de Juego (White Paper on Gambling) that for the first time regulates the kind of gambling that will be allowed, or not, on the Internet or via other electronic media such as mobile phones; it sets fines of up to €50million for operating without a license. The paper also creates a tax on gross income for operators in this industry. Taxes will be applied according to the type of activity and ranges from 5% on taxable income to 22% on sport tote gambling.>

Giant gaming company voted in

GIBRALTAR (Agencies) As we announced in August last year, Vienna-based Bwin Entertainment and local company PartyGaming finally announced the merger of the two online betting giants, on which shareholders voted at last weekend. The new group is to be called Bwin.Party Digital Entertainment plc, a move that comes after a year of intense negotiations. The Chief Executive Officers of both companies, Jim Ryan and Norbert Teufelberger, will run the new Bwin Party Digital Entertainment jointly. The new company is said to be worth €2.4 billion, and will be listed on the London Stock Exchange. Bwin holds 51.7% of the shares and PartyGaming, 48.3%.

Party Gaming and bwin merger is close to completion

GIBRALTAR (GibChronicle) Shareholders of Austria-based online gaming company bwin will be urged to approve a merger with Gibraltar-based Party Gaming at an Extraordinary General Meeting later this month The merger will create the world’s largest online gaming business, based and managed from Gibraltar but listed on the London Stock Exchange. Assuming the merger is approved, bwin shareholders will own 51.5% of the enlarged group, with PartyGaming shareholders owning the balance. In a presentation to analysts, the companies estimated that the merger will generate pre-tax synergies of €55m a year by removing duplication, exploiting economies of scale and share best practices.>

Online gambling and credit card fraud arrest in La Línea has Scottish connections

LA LÍNEA (Agencies) An Italian employee of an online gambling company in Gibraltar was arrested after he reported that two credit cards in his name, issued by Barclays and Deutsche Bank, had been used without his permission in the amount of €1.014 and €1.505 respectively. It turns out that he had a habit of gambling online and, if he lost, he would make a report like this and often have money returned to him by the banks. On checking his name on an Interpol list, the National Police, found that 32 year old Fabio C. was wanted on a court order by the Sherriff of Hamilton, Scotland, on two charges of fraud to the tune of €115.346 and €29.336. He was detained in La Línea and is now in Madrid for judicial extradition proceedings.

La Línea mayor switches attention to online gaming on the Rock

GIBRALTAR An article in The Gibraltar Chronicle says: "La Linea’s maverick mayor, Alejandro Sánchez, has asked Spanish telecoms operator Telefónica for details of its network of underground fibre optic line in the area. Sr Sánchez said the lines provide the means for Gibraltar to make significant revenues from web-based gaming firms. Now he wants to tap that traffic to earn cash for his bankrupt administration. Spanish newspaper Viva Campo de Gibraltar reported yesterday that the mayor’s team had requested the report from Telefónica to establish the scale of the physical infrastructure running to the border. The Ayuntamiento had already asked the Spanish government for information on the income generated in Gibraltar by online gaming. “The broadband fibre optic cables that are vital for this industry pass under La Linea, which is why La Linea wants to know what it gets in return,” Sr Sánchez told Viva. In a separate move, the Ayuntamiento has also put Gibraltar’s land reclamation projects under scrutiny." And we say: "Is there no stopping this madman?" What do you say?

Reader's Question: How many people are employed in the gaming industry in Gibraltar?

(Via e-mail / Photo title: 'Gambling away futures' from Oceans Rehab) This is not the first time the question has been asked, but until now, we've been unable to come up with an answer. However, we googled the question as it was written, and the answer we got was as follows (but, just as we were posting this item, there was an electricity cut and we lost the source, which we are sure is reliable): "There are a total of 1,905 persons employed by the 18 'remote gambling companies' established in Gibraltar as at September 15th 2010. Gibraltarians account for 274 of the placements, with ‘other British’ taking up 981 of the jobs and Spaniards 110. The remainder is made up by a variety of nationalities. The largest employer is Victor Chandler with 266 employees (50 Gibraltarians), followed by Stan James 253 (14), PartyGaming 201 (28) and 888 Holdings with 196 (31)." (Have a gambling problem? Maybe Gamblers Anonymous in Gibraltar can help.)

PartyGaming looking for more deals

(The Gibraltar Chronicle) Internet betting firm PartyGaming has said it will press on with further deal-making following its tie-up with Austria's Bwin to create the world's biggest online gaming company. The company said it would "continue playing an active role" in the consolidation of the sector after the completion of the deal early next year. PartyGaming boosted its own revenues 30% to 181.2 million euros (£150.2 million) in the first half of 2010, helped by acquisitions including the Cashcade bingo business and improved casino and sports betting takings. The firm is pushing into newly-regulated territories such as France, where online gaming licences for sports betting and poker were issued for the first time in June 2010.>