Online Gambling News all over the world 19.09.2009

19.09.2009, Ukraine's Online Gambling Legal Loophole / Online Gambling Sponsor Rejected in Wales / Online Bingo New Growth in Sweden / Betfair's Online Poker Ad Banned in U.K. / Online Gambling Problems Common U.K.Study

Ukraine's Online Gambling Legal Loophole
It didn't take long before lawyers and business people in the Ukraine found a viable solution to the ban on gambling in that country. According to a recent report in the Kyiv Post newspaper online just a few short months after gambling was banned, some establishments have found a way around the rules by opening up as “Internet complexes” or “interactive clubs” and sending their operations offshore. Many new establishments have sprung up over the last two weeks and experts speculate that if these places do not experience difficulties with the police or in the courts, many more are likely to come on line.

At the “interactive clubs” as they have been dubbed by people working in them, gamblers pay for access to the Internet, then choose which games they want to play on their screen. When they run out of money on their account, they can simply put more in. Although gamblers are playing on the Internet, there is very little difference from the gambling halls that were on almost every street corner before the ban came into effect.

Honorary President at the Jurimex law firm and the author of a book on gambling in Ukraine, Danylo Getmantsev, said, “The ban is being circumvented legally,” adding, “The server is set up in another jurisdiction offshore, where gambling is permitted, and here the owner of the establishment is simply an agent providing access.”

Getmantsev went on to say, “In order to ban such practices, Internet gambling would have to be outlawed or a legal precedent set in the High Court,”

A source in the Interior Ministry said that a large number of gaming establishments remain in operation illegally, adding that there is a lack of consistency in the way the police are applying the law.

Valeriy Pysarenko, part of the group that brought forth the bill on banning gambling, said he believes the Internet gaming halls are a temporary phenomenon thought up by businessmen who suddenly had revenues cut off.

Pysarenko said, “We will solve this problem by legislation as soon as this is possible,” adding, a bill would also be proposed on special zones in Ukraine where gambling would be permitted.

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Online Gambling Sponsor Rejected in Wales
Sponsors for the Cardiff City football club were forced by the U.K.Gambling Commission to remove shirts bearing the 777ball logo from the teams kit in order to comply with white label rules for gambling advertising. Officials for the sponsoring company flew into Cardiff for face to face discussions regarding the issue. The online gambling firm based in the Philippines had it's executives meet with Club chairperson, Peter Ridsdale and others and they were in constant contact with the representatives from the Asian company.

Macom Communications a well respected marketing firm also based in Asia which has brokered many other sponsorship deals for the likes of Ladbrokes, Betfair, 888 and others put together the shirt sponsor deal for 777ball. The Gambling Commission did not find out about the sponsorship until they viewed it on television. After which the company was informed they were not licenced to advertise their product in the U.K.. Curiously the 777ball web site only works with Chinese script with minimal English wording. The Gambling Commission said that in order to comply with the Commission's rules for adverts the company would have to move it's base of operations to another country. The only places licenced by the Gambling Commission are those white listed in the European Economic Area and those with agreements in place from Antigua, Alderney, the Isle of Man and Tasmania. It has been reported that there are other sponsoring outfits just waiting for a chance to get their logos on the jerseys.

Mr. Ridsdale said, "We are in discussions with others who are interested in sponsorship. I am confident we will be able to replace them if we are unable to resolve this to everyone's satisfaction." He also said, " if anything, the best thing to come out of this is that it shows the power of advertising." Mr. Ridsdale denied this issue being an embarrassment to the club. saying "it's a disappointment, not an embarassment.We cleared everything with the Football League, we did everything within our control." A 250,000 GBP is in the offering from another company for a one year deal should the current deal fall through.

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Online Bingo New Growth in Sweden
Svenskabingo.com launched it's site earlier this year and is now an established member of the online-bingo community in Sweden. To keep the momentum rolling Svenskabingo.com will air its first national TV advertising campaign to homes across Sweden. At the moment the market is dominated by sites such as Svenska Spel, Ladbrokes, Jackpot Joy and Maria Bingo but these adverts are hopefully going to change that.

The campaign tells online bingo players in Sweden that there is a new and exciting web site available, custom tailored for just them.

A only Swedish language site, Svenskabingo.com has one of the biggest choices of unique slot and side games alongside massive jackpots in the friendly bingo room. The ads are a mixture of colourful graphic animation and live action narration, conveying the atmosphere of the site itself. The option of public or private chat is available at the Svenskabingo chat room. Appealing to everyone whether they want to meet with new people in the sociable games or quietly catch up with friends.

Manager of Svenska Bingo,Thomas Pedersen, who was very much part of the creative team putting together the campaign said that he, "hopes the advert will cement Svenskabingo's position at the forefront of the online gaming market in Sweden, and bring attention to our attempt to offer a targeted alternative to the imported multi-national bingo sites which make up a large proportion of the net bingo available to Swedish speakers." Svenskabingo is attempting to increase it player base after it's impressive growth of late. The varied promotions and new competitions each month, plus thirty-three impressive side games as well as a very connected bingo environment creates an attractive package for new and veteran bingo fans alike. This could well be the new home page for Swedish online bingo players in the future.

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Betfair's Online Poker Ad Banned in U.K.
Annette Obrestad, winner of the World Series of Poker Europe is old enough to play online poker but she doesn't look it. Betfair was counting on appealing to the young demographic that are the new source of online gambling revenues in a wired world. Unfortunately the use of the number 15 in the advert suggests someone a little too young.

The picture with the tag line “Online experience is measured in games, not years. Join the new breed. Annette_15.” is very compelling considering she is a poker champion after all. Not too many people know who this young woman is and when looking at her picture would think she is even younger than 15.

The United Kingdom's Advertising Standards Authority (ASA) has responded to complaints made against the e-mailed advertisement for Betfair's online poker site. The Authority noted that the ad encouraged underage gambling, a problem facing many online gambling operators.

Betfair replied by saying that their marketing department had been given clear instructions not to use the Obrestad ad in marketing materials directed at U.K. customers, and that they were disappointed she was, apologizing for the error. Never the less, the press that Betfair has received after the ad was banned is still press. In the world of advertising sometimes bad press is as just as effective in reaching the target market. BetFair insists that they in no way were marketing online gambling to minors. The proof is in the pudding as they say and this is a great example of guerrilla marketing at it's best.

The gambling provisions of the CAP Code for the gambling market, were clearly violated by the marketers at Betfair, pulling the ad that still was accessed by a huge number of people is like closing the barn door after the horse has left.

From Betfair's corporate web site, "Betfair prides itself on its innovation, integrity, fairness to customers and a determination to work in partnership with international governments and regulators. These qualities are being recognised throughout the world."- David Yu, CEO, Nov. 2008

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Online Gambling Problems Common U.K.Study
According to an article on the net by EGR recently, new research to be presented at the British Psychological Society’s Social Psychology Conference suggests problem gambling is ten times more common among those who gamble online than offline. The British Psychological Society’s Social Psychology Section annual conference, is taking place at The Edge in Sheffield England until the 17th of September. Over 200 psychologists from the UK and other parts of the world will gather to present their research and debate their theories.

Professor of Gambling Studies at Nottingham Trent University, Dr. Mark Griffiths, led his team of researchers, through the Internet gambling; A secondary analysis of findings from the 2007 British Gambling Prevalence Survey project. The group used information from the most recent British Gambling Prevalence Survey to point out that the level of problem gambling among those who had used the internet to gamble, 5% of those surveyed was in fact ten times higher than among those who gambled at conventional venues.

Dr.Griffiths said, “This study’s findings suggest that the medium of the internet may be more likely to contribute to problem gambling than gambling in offline environments. It is clear that gaming companies need to acknowledge they will need to provide even better social responsibility infrastructures online than offline to minimise the harm to problem gamblers.” The study used data from a survey of 9003 adults aged 16 years and older who had gambled online and or used a betting exchange in the last 12 months.

Professor Griffiths also said, “There is also the issue of how internet problem gamblers can be helped. Recent research suggests that online problem gamblers appear to prefer to seek help online, therefore online help, guidance and treatment may be a potential way forward to help those who may feel too stigmatised to seek traditional face-to-face help for their gambling problems.”

The research was a collaboration with the National Centre for Social Research and Professor Jim Orford of the University of Birmingham, and was funded by the Gambling Commission.

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