Online Gambling News all over the world 22.08.2009

22.08.2009, Brazil Proposes Online Gambling Payment Prohibition / MGM Cuts Deal With Fremantle Media for Online Slots / Online Gambling Funds Return Postponed Again / Dutch Attempt To Curtail Online Gambling Banking

Brazil Proposes Online Gambling Payment Prohibition
Draft legislation for online gambling which has the intent of imposing a ban on online gambling payments in Brazil is to be put forth for examination in the country’s Senate.

The Senate’s Communications and Technology Committee will finally get a chance to see the proposed law, first introduced by Senator Magno Malta more than a year ago. The Brazilian bill, thought to be the equivalent to the current prohibition law in the USA has some new amendments extending the payments ban to lottery games. The filing of companion legislation by former Senate President Garibaldi Alves Filho, has given the proposed legislation more emphasis.

Brazil’s code of law establishes a general prohibition over all gambling activities,but according to legal experts, it is not clear how that prohibition would apply to offshore online gaming operators.

In the original proposal, Brazilian credit and debit card companies would not be allowed to process credit or debit card payments from unauthorised games of chance, sports betting or lottery games. Senator Alves Filho’s companion bill would be expanded to cover Brazilian ISPs and financial intermediaries, as well as the imposition of criminal sanctions of up to three years in prison for offenders.

The senator noted that the draft legislation, " The UIGEA in the USA adopted a strategy that is worthwhile bringing across to our jurisdiction, as it is not possible to punish those responsible for electronic sites based in other countries... we punish those that allow these sites to be accessed from our national territory.adding, “It is for this reason that the North American law and this current project are principally directed towards internet service providers, credit card companies and towards banks.”

Leading international operators such as PokerStars, 888, and Sportingbet have already established Brazilian websites aimed at customers in vast Brazil. Sportingbet has also advertised on television channels including ESPN Brazil and on billboards during football games shown to millions of people.

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MGM Cuts Deal With Fremantle Media for Online Slots
Fremantle Media, Europe's largest TV, radio, and production company whose headquarters are located in London, United Kingdom has signed a deal with MGM movie studios for the exclusive licensing rights to MGM movies for online casino game themes.

Metro-Goldwyn-Meyer movies such as "A Fistful of Dollars" and "Robocop" agreed to a deal to lease the themes only to players and Internet gambling sites outside of the USA. FremantleMedia, Ltd. which has had previous incarnations as All American Television, LBS Communications, and Pearson Television is the content and production division of RTL Group. RTL Group is 90% owned by Bertelsmann AG, one of Germany's major historic companies. Bertelsmann AG has operations in more than 50 countries and over a hundred thousand employees. FremantleMedia Enterprises is the commercial arm of the RTL company responsible for exploiting and developing FremantleMedia's properties off-screen in areas such as merchandising, the Internet, interactive television and wireless. FremantleMedia is broken down into two major divisions, Creative Networks, which comprises and co-ordinates local production operations, and FremantleMedia Enterprises, which handles distribution and licensing.

Fremantle has developed games based on "American Idol" and "The Price is Right," with a "Baywatch" game coming soon. Head of FremantleMedia since 2007 Paul Kanareck, who is responsible for driving new investment and revenue opportunities said, MGM, “has brands that people have grown up with, and which have strong themes such as Westerns, ancient Egypt and science fiction." adding, "All translate well into games across a range of platforms.”

The MGM Mirage, casino and hotel company, and Metro-Goldwyn-Meyer movies are totally separate entities after the movie division was sold in 2000 to Sony pictures. Fremantle will be given the option to develop games using the movie themes, or to lease the rights to other software developers for the creation of new web based casino slots.

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Online Gambling Funds Return Postponed Again
A hearing that was to listen to the Account Services motion for the return of property, seized by the Southern District of New York, has been cancelled.

The case which has $14 million USD tied up in the system is now in jeopardy. Attorney Jeff Ifrah stated to 'Poker News Daily' that that counsel for the U.S. Government filed a motion to dismiss the case, which was to be heard in the Southern District of California. Ifrah explained simply, “The Government is in New York and they don’t want to travel to California.”

Michael Pancer the Account Services attorney, commented, “Motions like this are not uncommon.” Mr.Ifrah said, “The judge may deny the Government’s motion and instead schedule an evidentiary hearing to listen to witnesses and arguments. Then, he can make a determination of whether the Government had probable cause to seize funds.”

Douglas Rennick who FBI Special Agent Dana Conte revealed was one of the signers on the Account Services account, was indicted on charges of bank fraud, money laundering, and illegal gambling. Attorneys for Account Services stated that, “Account Services and Mr. Rennick are separate and distinct legal persons, despite the Government’s assertions to the contrary.” The indictment claims, “Rennick and his co-conspirators receive funds from offshore internet gambling companies, cause those funds to be wired into United States bank accounts, and then cause the funds to be disbursed through checks payable to United States residents who are seeking to cash out their gambling winnings.”

Rennick told officials at the Union Bank that Account Services was “a ‘rebate check processor’ for ‘large retailers’ and ‘auto dealerships.’ Now the return of the money is in questionable waters and the lawyers will once again try to do their best for their clients.

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Dutch Attempt To Curtail Online Gambling Banking
Rumours have been circulating in the world of online gambling that Dutch political leaders are pulling some strings and demanding yet again that British banks refuse to process the transactions of Dutch online wagering customers.

Ernst Hirsch Ballin, the Dutch Minister of Justice, wrote earlier in 2009 to British banks suggesting that the Dutch government might try legal measures if requests to reject online gambling transactions of Dutch residents were not heeded.

There is uncertainty over whether the Dutch demand is backed by any existing Dutch legislation. Justin Franssen, a Dutch gaming law expert, stated then, “The minister literally said that if he finds out that the letter to the banks is having no effect then he intends to put legislation in place. He is admitting that there is no legislation or no legal basis for this. ”

The European Commission is less than positive about any attempt to control and in this case ban companies from doing business who are also members of the European Union.

The Royal Bank of Scotland caved into the demand and complied, possibly because it reportedly has substantial Dutch interests. The Dutch government had selected the Royal Bank of Scotland as its primary bank, giving RBS responsibility for around 66 million transactions per year. Now it is rumoured by the Dutch press that Barclays Bank may be prepared to comply with the Dutch governments suggestions. Barclays appears to be giving no real information on the question, reporting that it would ensure its clients were aware of the provisions of the Dutch Gaming Act. The Dutch government is already under legal attack from the U.K. betting exchange firm Betfair. It is becoming very clear that the wishes of politicans in many countries in the world are doing what ever they can to influence the rules of internet wagering with empty threats and little more.

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