Archive for March 3rd, 2009

What next for the casino industry?

Tuesday, March 3rd, 2009

As the online casino industry continues to steal market share from the off-line arena, there are serious concerns about the sustainability of many of the smaller and medium sized off-line casino companies. Since the onset of the US recession, back in late 2007, there have been a number of false dawns which have given hope to small and medium term companies in desperate need of liquidity and additional funding to get them by. However, time and time again the banks have failed to deliver and the US and UK stock markets in particular have been hit very hard over the last few months.

It would also be wrong to suggest that it is just the smaller and medium-sized off-line casinos which are in trouble, with Donald Trump suffering of late when his company slipped into financial trouble. However, there is no doubt that the companies which survive the ongoing economic downturn around the world will be stronger at the other end and probably have significantly less competition in the off-line arena.

With regards to the online arena, this sector is in many ways oversaturated but continues to go from strength to strength due to clever marketing, availability 24 hours a day and a growing market for those looking to play online at home. The next 12 months will be vital for the ongoing security of the off-line casino arena.

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RGA applauds European Commission investigation into gambling monopolies

Tuesday, March 3rd, 2009

The European Commission’s decision to push forward in its investigation into breaches of the EU Treaty by the Dutch and Greek governments has been applauded by the Remote Gaming Association, a trade body for major online gambling companies in Europe. The Reasoned Opinion published by the Commission focuses on the protectionist and state monopolistic policies of the two governments regarding online gambling, which interferes with the free passage of goods and services between EU member nations.

In a statement this week the RGA said that Greece and its gambling monopoly OPAP, and the Dutch De Lotto monopoly were at the centre of the allegations.

“Both of these EU Member States will now be investigated by the European Commission to determine whether their national gambling laws are in contravention of the European Treaty,” the Association informed.

“In particular, the Commission will need to be assured that restrictions which are being placed on the freedom of gambling operators in other EU states to provide their services in the Netherlands and Greece are justifiable under EU law and are not there primarily to defend the position of domestic gambling companies or state operators.”

“In the face of sometimes very strong opposition, it does the Commission great credit that it continues to fulfill its role as guardian of the Treaty in such a robust and objective way,” commented RGA CEO Clive Hawkswood. “Coming on the heels of its decision in January to take similar action against Germany and Sweden, this should send a strong signal across Europe that protectionism in the gambling sector will not be tolerated.

“The Dutch government has even tried to carve out an online gambling monopoly for Holland Casino, but this Opinion should serve notice that such actions are not acceptable.”

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