Online gambling payment restrictions A worlwide overview of (some) regulations

Similar documents
Message 791 Communication from the Commission - SG(2012) D/50777 Directive 98/34/EC Notification: 2011/0188/D

ACT. on the amendment of the Gambling Law and some other Acts 1

Draft bill on the liberalisation and regulation of the online gaming and betting sector

The new draft of the German Anti-Money Laundering Act (Geldwäschegesetz, GWG): A Summary and Potential Implications

ONLINE GAMBLING BALANCING FREE TRADE & SOCIAL POLICY

The new French regulation on gaming: Anything new in terms of payment?

Remote Gambling Bill

How To Gamble Online In Australia

0% Introductory APR for 6 billing cycles from the date of the first purchase performed within 6 months from the date of account opening.

Betting-Law-News Edition 02/05

6.49% to 14.49% based on your creditworthiness. 8.90% to 9.90% based on your creditworthiness.

Geolocation: Ensuring Compliance with Online Gaming Regulations

THE GREEK GAMING LEGISLATIVE FRAMEWORK

Security Service Federal Credit Union Power MasterCard Business Credit Card. These APRs will vary with the market based on Prime Rate.

European Commission Gambling Infringements: State Of Play Introduction

How To Understand And Understand The Laws Of European Gambling Online

BUSINESS CREDIT CARD AGREEMENT

GAMBLING LAW September 9-10, London, UK DRAFT PROGRAMME (SUBJECT TO CHANGE)

Business Credit Card Agreements

This is a translated document. The Dutch version of the document is the only applicable and authentic version"

BUSINESS CREDIT CARD ADDENDUM

BUSINESS CREDIT CARD AGREEMENT

Remote Gambling Services in the EU

Each Corporate Card is governed by the terms and conditions set out in this Agreement.

Client Alert. Online Gambling: Is Now the Time to Enter the German Market? The current legal framework in 15 out of the 16 German States

Brussels, 13 July 1998

BUSINESS CREDIT CARD AGREEMENT

Visa Credit Card Cardmember Agreement

BUSINESS CREDIT CARD ADDENDUM

Prospera Credit Union 4830 N Ballard Rd. Appleton, WI CREDIT CARD AGREEMENT FOR WISCONSIN

Tax regimes for gambling operators in the EU and beyond

I. INTRODUCTION CYPRUS. The Republic of Cyprus is an entirely unitary state, without any provinces or other federal or regional structures.

How To Get Online Gambling Legal In The United States

INFORMATION NOTE. Regulation of gambling-related advertisements in public areas

ANNUAL GENERAL MEETING 2012

NATIONAL GAMBLING ACT 7 OF 2004 (as amended by the National Gambling Amendment Act, Act 10 of 2008)

EGR Compliance Database Ireland Provided by: A&L Goodbody

UK - legal overview by John Hagan and Melanie Ellis

Combine the Convenience of a Checking Account and an ATM with One Simple Card!

POLICY FRAMEWORK FOR THE REGULATION OF INTERNET GAMBLING

BUSINESS CREDIT CARD ADDENDUM REPLACES ADDENDUM DATED:

Visa Traditional Rewards Student Rewards Signature Non-Rewards

VISA PLATINUM AND VISA PLATINUM REWARDS CONSUMER CREDIT CARD AGREEMENT

Chairman Frank, Members of the Committee, the Isle of Man Government welcomes the opportunity to submit written testimony to your Committee.

About Your Gift Card

0.80% of each single currency transaction in U.S. dollars. $25.00 or the amount of the required minimum payment, whichever is less.

None None 1.00% of each multiple currency transaction in U.S. dollars 0.80% of each single currency transaction in U.S.

VISA CLASSIC/VISA SECURED/VISA PLATINUM CONSUMER CREDIT CARD AGREEMENT

EUROPEAN COMMUNITIES (WIRE TRANSFERS REGULATION) (APPLICATION) ORDER 2007

Regulatory Practices. Australia, New Zealand, UK, Germany, US, Canada and France

LEGALIZATION OF GAMBLING BUSINESS IN UKRAINE. BOOKMAKERS VISION

European Union Law and Online Gambling by Marcos Charif

CONSUMER CREDIT CARD AGREEMENT

TCU VISA Platinum Rewards Credit Card Account Agreement

Gaming & Betting in Germany A Guide to Germany s Gambling Law and current Legal Trends

visa platinum and visa secured Fax: (786)

VISA PLATINUM/VISA GOLD/VISA CLASSIC CONSUMER CREDIT CARD AGREEMENT

The Act imposes foreign exchange restrictions, i.e. performance of certain actions requires a relevant foreign exchange permit.

ALEC SELECT ALEC SELECT REWARDS ALEC SIGNATURE REWARDS CONSUMER CREDIT CARD AGREEMENT

FREEDOM TO PROVIDE SERVICES ONLINE GAMING AND BETTING

Act on Background Checks

Internet Gaming: A Status Update. Massachusetts Gaming Commission Internet Forum March 11, 2014

Online Games and Gambling in Italy

Formal request for cooperation under Article 4 (2) of the AVMS Directive

1/ The opening of the French market for online games. Chaire Sorbonne-ICSS

Changes coming to the U.K. online gaming market

1. About Some of the Words in this Agreement 2. Account and Cards

VISA CONSUMER CREDIT CARD AGREEMENT

The Belgian and Dutch Gambling Markets

VISA CLASSIC CONSUMER CREDIT CARD AGREEMENT

LANGLEY SELECT - VISA PLATINUM LANGLEY REWARDS VISA SIGNATURE LANGLEY CASH BACK VISA SIGNATURE CONSUMER CREDIT CARD AGREEMENT

Act 5 Foreign Exchange Act 2004

October Romania s Gambling Law Amendments: A Lawyer s Analysis

Gambling Act. Part 1 Purpose and scope of the Act

PRIORITY RULES ON COMPENSATION FOR NUCLEAR DAMAGE IN NATIONAL LEGISLATION

VISA PLATINUM/VISA PLATINUM REWARDS/VISA PLATINUM SECURED CONSUMER CREDIT CARD AGREEMENT

Update on Anti-Money Laundering and Counter-Terrorism Financing Reforms for Legal Practitioners

American Express. Business Credit Card Conditions

VISA REWARDS CONSUMER CREDIT CARD AGREEMENT

Foreign investment managers and other financial

Impact of illegal offshore wagering

How To Stop Gambling In France

VISA PLATINUM/VISA GOLD/VISA CLASSIC CONSUMER CREDIT CARD AGREEMENT

Licence conditions and codes of practice. February 2015 (Updated April 2015)

Act on Compensation for Criminal Damage

The Danish Gambling Authority. The liberalisation of the Danish gambling market. 29. nov. 2012

VISA VARIABLE RATE AND FIXED RATE CLASSIC AND GOLD CARDS AGREEMENT AND FEDERAL TRUTH-IN-LENDING DISCLOSURE STATEMENT

BOOKMAKER TELEPHONE, ELECTRONIC BETTING AND APPROVED BETTING PREMISE OR AUTHORISED BETTING OFFICE RACING NSW STANDARD CONDITIONS

(Online) Gambling in Europe What s at stake

VISA SCORECARD/VISA DOUG MILLER CONSUMER CREDIT CARD AGREEMENT

VISA PLATINUM WITH REWARDS/VISA PLATINUM/VISA PLATINUM SECURED WITH REWARDS/VISA PLATINUM SECURED CONSUMER CREDIT CARD AGREEMENT

South Australia CASINO ACT 1997

Online Gambling and Money Laundering

Lottery and Gaming Regulations 2008

GAMBLING LICENSING ABIGAIL HUDSON NOVEMBER 2015

CARDMEMBER AGREEMENT RATES AND FEES TABLE INTEREST RATES AND INTEREST CHARGES FEES

BOOKMAKER ELECTRONIC BETTING AND APPROVED PREMISE BETTING RACING NSW STANDARD CONDITIONS

$25.00 or the amount of the required minimum payment, whichever is less, if you are ten (10) or more days late in making a payment.

VISA PLATINUM/VISA SECURED CONSUMER CREDIT CARD AGREEMENT

All Gambling is Illegal Unless Specifically Excluded from Illegality.

Transcription:

i Gaming Asia Macau, 23-25 February 2010 Online gambling payment restrictions A worlwide overview of (some) regulations Etienne Wéry, Attorney at law (Brussels and Paris Bars). Partner, Ulys (www.ulys.net)

Why such a restriction? For countries where online gaming is illegal, it is often impossible to effectively block and/or prosecute websites operators based in foreign countries without a presence on the national territory Easier to focus on providers based within the country Main providers concerned include: Internet Service Providers, such as access providers Payment providers/banks

Why such a restriction? In quite a lot of countries, Payment Services Providers and Internet providers liability could be triggered as soon as they have effective knowledge of illegal activities. The risk is to be assessed on a case-by-case basis but the risk is clearly higher for Banks holding illegal operators accounts As a matter of fact, prohibition and blocking systems are largely useless

Why such a restriction? For countries where online gaming is legal but controlled, putting pressure on payment service providers and/or banks is a convenient way to dry the illegal market : Gaming is (to a wide extend) about money If the gamer may not get his money when he wins, why would he play on an offshore site? If there is a legal offer in the country where he may get his money, he will probably play on legal sites At the end, it means more money for the state (tax)

Is it a world-wide tendency? Several methods for blocking payments in the gambling industry: Enactment of Legally Binding Regulations Official or unofficial directives to the attention of Banks Police investigations against online gambling operators Legally Binding Rulings delivered by the Judicature Legislations containing payment restrictions (non exhaustive list): Netherlands, Germany, France, Belgium, Sweden, Denmark, Norway, United-States, Australia, Turkey, Brazil, Israel, Singapore, Malaysia, China

Netherlands There is currently no legislation on blocking of financial flows in the Netherlands. Under Dutch Law (Betting and Gaming Act 1964), it is prohibited to stimulate participation in unlawful gambling services. In January 2008, Dutch Minister for Justice proposed that Dutch Banks be compelled to block online gambling payments. According to the Minister, facilitating payments between unlicensed gaming operators and customers is illegal pursuant to the Betting and Gambling Act. According to Betfair, the Minister has no authority to order Banks to stop processing payments from Dutch customers to unlicensed operators.

Germany The German Interstate Treaty on Gambling, entered into force at the beginning of 2008, prohibits Banks and Payment Services Providers from being involved in payments related to illegal games. In October 2009, one of the 16 German states (Schleswig-Holstein) that ratified the treaty requested its annulment Germany is under investigation by the European Commission due to the strict gaming monopoly and it is highly likely that the European Court of Justice would deliver a ruling condemning it Germany's current State Treaty on gambling expires on January 1 st, 2012 Online gambling market to be liberalised, at least in some sectors?

France The Draft Law is currently under scrutiny at the Senate Article 12 of the Draft Law provides for a prohibition of anonymous means of payment (issue for e-money) and authorizes only means of payment connected with a payment account (excluding prepaid cards) An amendment has been submitted in order to allow prepaid cards Pursuant to Article 51 of the Draft Law, the minister of Finances should ban payments to and from accounts held by illegal operators for a period of up to 6 months This obligation of blocking financial flows is laid down by Decrees, which have to be notified to the European Commission A potential infringement of the free movement of capital, enshrined in Article 63 of the Treaty on the functioning of the European Union

Belgium The Draft Law adopted December 3 rd, 2009 is aimed at creating a legal framework for all games of chance, including those on Internet Publication in the Belgian Official Gazette on February 1 st, 2010. Pursuant to Article 25 of the Draft Law, a Royal Decree of Execution should lay down technical requirements to secure online payments and define the means of payment authorized for online gambling Royal Decrees of Execution have not yet been enacted Pursuant to Article 37 of the Draft Law, the use of credit cards enabling their holders to have credit facilities is prohibited No additional restrictions on payments in the current Belgian legislation Entry into force by January 1 st, 2011 at the latest

Sweden At the end of 2008, an official study of the Swedish gambling legislation suggested a partial liberalization of the gaming market This study suggested a payment ban related to gambling transactions On the basis of this study, a proposal has been drafted by the Government After negative feedback and before a Draft Law could be presented to the Parliament, the Swedish Government accepted to change its first proposal Could the future Draft Law contain restrictions concerning payments? Is it the intention of the Swedish Government to protect the gambling monopoly establishing payment bans? Further information to be expected in 2010.

Denmark Danish government announced in April 2009 a liberalization of the market A provision was drafted in order to penalise Payment Institutions if they allow payments to and from operators without a Danish license The Draft Proposal was notified to the European Commission for scrutiny Denmark is required to reply to the Commission s views before adopting the legislation. If Denmark adopts the current text without taking into account the Commission s objections concerning payment restrictions, infringement proceedings could be launched The government expects to be able to present its proposal in Parliament early 2010 in order to open up the market in 2011

Norway A gambling-related payments ban was adopted by the Norwegian Parliament in December 2008 and will come into effect on 1 st June 2010 The Norwegian Payment Act classifies gaming related payments as unlawful accessory involvement in the exploitation of unlicensed games of chance Norway is not a member of the European Union, but as a member of the European Free Trade Association (EFTA), the principle of the freedom to provide services equally applies EFTA Surveillance Authority sent remarks for notification of the bill considering a breach of trade obligations Consequently, Norway seems to be under pressure to change its Law

United States The practice of online gambling is illegal in the US (except for horseraces) The Unlawful Internet Gambling enforcement Act was adopted in 2006 as a rider of Safe Port Act of 2006 Legislation prohibits gambling operators from accepting money transfers from unlawful Internet gambling from US customers Payments system providers must identify and block such monetary transfers (the latest cases: Visa and MasterCard) In March 2003, Antigua and Barbuda lodged a dispute resolution complaint with the World Trade Organization (WTO) to challenge US prohibition The WTO s panel rendered a decision in favour of Antigua US took no action to comply with the panel s decision

Australia Introduction of the Interactive Gambling Act (IGA) in June 2001 Providing an interactive gambling service to a customer physically present in Australia is an offence Under section 69A of the IGA, the Government may enact regulations providing that an agreement has no effect to the extent to which it provides for the payment of money for the supply of an illegal interactive gambling service The government, noting that the feasibility of a regulation on financial transactions is uncertain, has not made any regulations A report, commissioned by the Government, will be issued in 2010 containing proposals for a managed liberalisation

Turkey Online gaming is strictly illegal in Turkey Definition of gambling as a crime under Turkish Criminal Code A new legislation on Betting Activities was adopted in February 2007 Under Article 5 of this Law, providing financial sources for gambling activities by money transfer services in electronic environment is prohibited Regardless of whether or not service providers were aware of the nature of the relevant transaction Such heavy anti-gambling measures put the country at odds with recent developments in the European Union Legislation to be amended taking into account EU membership process?

Brazil General prohibition over all gambling activities established in Brazil Draft Law under scrutiny provides for an authorization of bingo and slot machines gambling in Brazil Another Draft law to impose an online gambling payments ban This Draft Law, currently under scrutiny by the Parliament, is the Brazilian equivalent of the US Unlawful Internet Gambling Enforcement Act Credit and Debit Card Institutions are likely to be prohibited from authorizing credit or debit card payments related to unauthorized games The Draft Law has a long way to go before being approved and could be subject to several modifications

Israel Israel gambling law (Israeli Penal Law, 1977) does not refer specifically to online gambling Common views of Israeli Courts is gambling prohibition applies to Internet Israeli police warned operators in 2006 that their activities were criminal In 2007, the major Payment Services Provider Neteller quit the Israeli market The police informed Credit Card Institutions that it deems their cooperation with operators offering online gambling as a criminal offense In November 2009, the Police took enforcement actions against illegal websites, 160 bank accounts related to gambling websites were frozen

Singapore The Common gaming house Act 1961 makes gaming in public illegal Gaming which takes place over the internet and offshore would not be interpreted as gambling in gaming house according to legal expert However, the police of Singapore have maintained that participation in online gaming or facilitation in relation to such participation is illegal There is no guarantee that Singaporean police will not prosecute customers, affiliates or operators There is no guarantee that the funds flow might not be subject to freezing under the anti-terrorist regulation 2002 and the 2006 guidelines to Financial institutions on the prevention of money laundering

Malaysia Common Gaming House Act 1953 makes gambling illegal (same wording than Singaporean legislation) Under the anti-money laundering Act 2002, it is an offense to become involved in any proceeds of unlawful activity There are currency control regulations providing that transfers of cash in excess of RM50 000 (=15 000 USD) must be done by a prescribed form from the Central Bank of Malaysia According to the Association of Banks in Malaysia: banks can block online gambling transactions or withdraw credit cards used by customers to make online transactions at betting sites

China Article 303 of the Chinese Criminal Code lays down the primary criminal law in China in relation to gambling In 2005, a Decree extended unlawful gambling to online gambling and covered any person who acts as an agent for online gambling operation There are currency controls in place in China but blocking online payments seems to be an impossible task Alternative solution: Internet-filtering software and firewall are used against online gambling operators China remains the world's largest untapped gambling market

Does it work? As a matter of fact, it is, for sure, not a bullet-proofed measure. States usually don t see this as a reason not to try it, because purpose is to put pressure in order to dry the market. It is seen a one measure, amongst others, to reach this goal. The productivity of the measure largely depends on the means of payment: Bank accounts. Credit cards (MCC 7995 code stands for Betting (including Lottery Tickets), Casino Gaming Chips, Off-Track Betting and Wagers). But, it does not make any difference between a legal and an illegal merchant. Others

Does it work? Technology is clearly quicker than the prohibition new means of payment, e-money, e-purse, prepaid (rechargeable) cards, Gift cards, e-vouchers, etc. In countries where Paper cheques are still in use, they are largely used Law is not always in favour of such restrictions : Free movement of capital under EU law Similar restrictions apply under both GATS and WTO laws

i Gaming Asia Macau, 23-25 February 2010 Online gambling payment restrictions A worlwide overview of (some) regulations Etienne Wéry, Attorney at law (Brussels and Paris Bars). Partner, Ulys (www.ulys.net)