Gaming Law International

Austrian Online Gambling Executives Held in France

Two executives of Austria's online gambling company BWIN Interactive Entertainment Ag, Manfred Bodner and Norbert Teufelberger, were detained in France on Friday and questioned for allegedly violating French gaming laws. They were released late today on a bail of €300,000 each. The investigation against Bodner and Teufelberger in France is concerned with BWIN's alleged conduct advertising its gambling product in France and accepting bets from citizens of France. Earlier this year, three German states apparently banned BWIN from operating in their territories.

Policy makers in the EU are already divided on the issue of the competence of individual states to restrict gambling in their territories to state-owned monopolies. Many EU gaming lawyers argue that European state gambling monopolies are inconsistent with EU competition law. However, considering the unique nature of gambling and the overriding concern to ensure its integrity by, inter alia, ensuring the absence of criminals in gaming and restricting minors from having any access to gambling, member states restricting gambling would have cause to argue that maintaining a state monopoly is the only way to maintain the public order. Several member states have indicated that they will challenge state gambling monopolies at the EU Court of Justice to ensure that online gambling services can be provided anywhere in the EU by any member state. This will be an interesting area to watch in the months to come.

Dick Peters Allowed to Leave the US

Sportingbet's Chairman, Peter Dicks, resigned from the company yesterday, shortly after a US court ruled that he could return to the UK until his extradition hearing on September 28. Read more here.

US Arrests Second Online Gambling Executive

Sportingbet Plc's chairman, Peter Dicks, was arrested by the US authorities Thursday after arriving from an international flight at JFK International Airport. Apparently unbeknownst to Dicks, the Louisiana State Police had an outstanding warrant for his arrest since May of this year on charges related to his involvement with online gambling activities in the state of Louisiana, an activity that is prohibited in that state and in many other US jurisdictions.

No information has been made available as to whether federal charges have been laid against Dicks or are pending but such charges are a real possibility and if laid, would likely include Sportingbet Plc and its other executives. American operating service suppliers of Sportingbet Plc are also likely to be targeted.

On Friday, Dicks appeared in court for a bail hearing and was released on $50,000 bail, pending extradition to Louisiana. Dicks is said to have refused to be voluntarily transferred to Louisiana to face the charges laid against him. His next court appearance is scheduled for September 14, 2006. Despite the arrest of its Chairman, Sportingbet Plc does not appear to have taken any steps to curtail bets from US citizens. Dicks is a director of Polar Technology Trust Plc and Standard Microsystems Corp.

Wynn Casino Opens in Macau

Macao's newest casino, the $1.2 billion Wynn Macao, opened today with much fanfare, almost two years after the opening of the Sands Macau. The Sands was the first foreign casino to open after Macao ended a 40-year monopoly run by Stanley Ho. Read more here.