GPWA Times Magazine - Issue 3 - January 2008

Making a Difference | GPWA TIMES 27 But they failed to explain why that law did not apply to the team sponsored by Française des Jeux, France’s state-run lottery company. The French also arrested Unibet CEO Petter Nylander for violating their gambling laws in 2007. But while one part of the justice system was arresting online gambling ex- ecutives, another ruled that France had to become compliant with EU laws. France’s top court, citing EU law, overturned a decision that banned Zeturf, a Maltese company that offers online betting on horse racing, from offering its services in France. With a court ruling and European Commission demand staring it down, France indicated late in 2007 that it would be open to liber- alizing its gambling markets. French Interior Minister Michele Alliot-Marie said that if the move allowed French casinos to be present in new markets while maintaining the integrity of the games, France would consider it. As McCreevy pushed France to- ward accepting foreign operators in online gaming, another major market dropped a bombshell in the commission’s lap: Germany’s 16 states voted to ban online gambling. The ban, which took effect Jan. 1, 2008, prohibits any form of Web-based gambling and allows the states to order In- ternet service providers to block online gaming sites. Bwin, which first noticed the ban might happen, sued four German states in Oct. 2007 claiming it should still be able to operate in Germany with the license it received from East Germa- ny prior to reunification. But it was the response of McCreevy and the EC that gave the industry hope. They immediately asked Germany to reconsider its position, calling it disproportional. And German politicians took notice. In an interview with Bloomberg, Wolfgang Kubicki, the FDP leader in the state of Schleswig-Holstein, said that the ban clearly violated EU law. “I am pretty sure the [European] Commission will escalate the process and send a formal warning the day after” the new law takes effect, Kubicki said. “Berlin will have something in the mail on January 3rd.” McCreevy’s most public role in 2007 was his vocal opposition to the UIGEA in the U.S. ED LEYDEN The end result is still very much up in the air. But Ed Leyden may have already got what he wanted out of the case he andhis InteractiveMediaEntertainment & Gaming Association (iMEGA) filed on June 5 in U.S.District Court that calls for a temporary restraining order against the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA). “The law is absurd and [iMEGA’s] case has helped bring that out into the open, win or lose,” says Buffalo State Business Law Professor Joseph Kelly, who is also the co-editor of Gaming Law Review. Leyden is the president of iMEGA,which touts itself as a non-profit “professional association dedicated to the continued growth and innovation of the Internet.” With that stated goal in mind, Leyden and iMEGA Chairman Joe Brennan filed its suit (iMEGA v.Gonzales,et al.) in New Jersey claiming that Internet gambling is protected by the First Amendment and the UIGEA is unconstitutional. On Sept. 26, Judge Mary Cooper heard arguments from both sides and felt that because of the case’s“complicated backdrop” she would hold off on her ruling on whether or not to have the case thrown out for at least 30 days. As this magazine went to press, Judge Cooper had yet tomake a ruling, but Leyden doesn’t feel that’s necessarily a negative. “We think we’re going to survive,” says Leyden, a Washington D.C.-based at- torney who specializes in independent contractor, tax and business litigation as well as sports and entertainment law. “We sincerely believe that in the privacy of your own home, you should be per- mitted to place a bet on the Internet.” NICK JENKINS Betcha.com seemed harmless enough. It was a Web site that brought people together who wanted to wager via an honor-based system on everything from sports events to who Rosie O’Donnell’s re- placement would be on The View.All Nick Jenkins, the site’s founder, wanted was a tiny piece of the action by charging a small fee for each bet that was made. But 13 days after unveiling his site in June, the 38-year- old Jenkins was forced to shut it down by order of the Washington State Gambling Commission (WSGC). Jenkins re- spondedbyfilinga lawsuitagainstthe WSGC.But the drama of this story was just beginning to unfold. Soon after filing the suit, Jenkins saw his Seattle-based office raided after the Loui- siana State Police claimed that one of its troopers was able to place four bets with Betcha.com. Jenkins claims that the raid took place 32minutes after he notified the WSGC about his lawsuit. And, as he point- ed out in a guest column for the Seattle Post Intelligencer ,“that raises an inference of retaliation.” Four months later, Jenkins, a graduate of the University of Washington and the Georgetown University Law Center, and two of his employees – Josie Imlay, 24 and Peter Abrahamsen, 25 – surrendered and voluntarily flew from Washington to Louisiana where they were booked for “illegal gambling by computer” felony charges. After less than 24 hours, the trio was permitted to post bail and return to Washington pending a trial – a trial that, if found guilty, could send the three men to jail for 50 years. Oh, by the way, Jenkins and Betcha.com’s takeforthebetplacedbythestatetrooper was a whopping 70 cents.