Betfair, blocking, cyprus, legislation Online Gambling blocked from Cyprus February 20, 2013 Yesterday, Tuesday February 19 th, all access to almost all online gambling sites was blocked by the internet providers in Cyprus on authority of the National Betting Authority. After several decades of unregulated gambling throughout the country of Cyprus, the government finally decided to make a decision about the future of gambling through legislation. While most of Europe had moved forward and legalized most forms of gambling, including Internet gambling, the government of Cyprus decided on a different direction.
High representatives of the Cyprus National Betting Authority, Malta Gaming Authority and EGBA will join the IMGL MasterClass at EGC2019 Milan
Industry leaders, regulators, and provider representatives gather for a highly informative IMGL MasterClass at EGC2019 Milan!
Organizers of European Gaming Congress(EGC) are honored to announce that this year the conference will once again include an official IMGL MasterClass™ which will focus on the ideal connection and communication between regulators and the industry.
An important panel discussion highlighting some of the main aspects that operators are facing when communicating with regulators and of course discussing whenever this is the right time to introduce lobbyiEuropean Gaming Media and Eventsng in Europe.
European Gaming Congress(EGC) will take place on the 8th of November at Radisson Blu Hotel Milan and is gearing up to one of the most important editions of the conference.
You can register here or view the agenda here!
As mentioned above, the title of the IMGL MasterClass™ is “Ideal connection and communication between regulators and the industry” and will be joined by Ioanna Fiakkou (Chairwoman of the National Betting Authority Cyprus), Michele Magro (Chief Counsel – Policy & International Affairs for the Malta Gaming Authority), Maarten Haijer (Secretary-General of the European Gaming and Betting Association – EGBA), Quirino Mancini (Partner at Tonucci & Partners) and last but not least Andrew Cochrane (Chief Development Officer at SBTech).
The MasterClass will be moderated by the best person to guide this discussion who comes in the form of Dr. Joerg Hofmann (Partner at MELCHERS LAW).
Make sure you take advantage of this unique opportunity of learning and networking with the gambling industry in Europe via the EGC platform every year.
Register here!
About Dr. Joerg Hofmann – Partner at MELCHERS LAW (panel moderator)
Dr. Joerg Hofmann is a Past President of the International Masters of Gaming Law (“IMGL”) and group leader of the Gaming & Betting Law Practice Group of Melchers Law Firm. He has been practicing gaming law since the mid-90s and Melchers’ legal advice is highly valued by global market leaders in all sectors of the gaming industry. A highly recognized expert in the field, Joerg has been consistently ranked as a leading individual and expert in gaming law by prestigious legal directories including Chambers Global and Best Lawyers for many years.
About Ioanna Fiakkou – Chairwoman of the National Betting Authority Cyprus
Mrs. Ioanna Fiakkou is the chairwoman of the National Betting Authority, the public independent authority for the regulation, supervision, and control of betting activities in Cyprus. During her term at NBA, she has worked with all stakeholders in the Cypriot betting industry and has managed to apply rigorous enforcement and monitoring measures. Furthermore, she is responsible for launching the online betting market by granting the first licenses for companies offering online betting services. She is now working on a draft bill whose aim is to modernize and update the betting market in Cyprus and takes into consideration the latest local and European trends and developments in the betting industry.
About Michele Magro – Chief Counsel – Policy & International Affairs for the Malta Gaming Authority
Michele is the Chief Counsel – Policy & International Affairs for the Malta Gaming Authority. He is a lawyer by profession and has worked at the regulator for over 7 years, principally within the Legal Directorate. Michele is the Chairman of the MGA’s Supervisory Council and a member of the Executive Committee. Michele is also Secretary to the Board of the Gaming Regulators European Forum (GREF).
About Maarten Haijer – Secretary General of the European Gaming and Betting Association (EGBA)
Maarten Haijer is the Secretary-General of the European Gaming and Betting Association (EGBA), the Brussels-based trade association representing leading online gambling operators licensed and regulated in the EU. EGBA works together with national and EU authorities and other stakeholders towards a well-regulated online betting market in Europe which provides a high level of consumer protection and takes into account the reality of the digital economy and consumer demand. Before joining the EGBA, Maarten worked as the internal market and consumer protection counselor at the Netherlands Permanent Representation to the EU.
About Quirino Mancini – Partner at Tonucci & Partners
Gambling Authority Cyprus Contact
Quirino is one of the leading Italian gaming and gambling lawyers with a specialist practice of almost 20 years. He acts for Italian and foreign-based online and land-based companies operating in the Italian gaming market, advising them on legal, licensing, regulatory, day-to-day compliance and any other operational aspects connected to their activities. He also runs a bespoke matchmaking and business strategy service to provide clients with a customised type of assistance that includes also introduction and facilitation of dealings with the local regulatory authorities, banks as well as scouting and suitability checks on potential business partners.
Quirino is a regular speaker at most international gaming conferences and sits in the editorial board of various sector reviews and magazines.
Co-founder and editor of www.gaminglaw.eu, a pan-European information and commentary portal focusing on legal and regulatory issues under European and national gaming laws.
Secretary and fellow member of the Leadership Committee of the International Masters of Gaming Law (IMGL), a worldwide organisation gathering regulators, lawyers and advisors, in-house counsels and educators engaged in the gaming business. Fellow member of the International Association of Gaming Advisors (IAGA).
About Andrew Cochrane – Chief Development Officer at SBTech
Andrew Cochrane is Chief Development Officer for SBTech, the leading platform solutions provider to the sports betting and iGaming industry. He has worked across retail gaming, iGaming and sports betting sectors and has a proven track record of managing top-tier omni-channel operators in regulated markets. In his role at SBTech, he is responsible for cementing the company’s preeminent position in the industry by defining strategic objectives, identifying opportunities for further growth and maximising revenues across the board, contributing to SBTech’s ongoing global expansion. He is leading SBTech’s U.S. go-to-market strategy.
For more details, browse the official event website here: www.europeangamingcongress.com
According to the Quran, Muslims are forbidden to gamble. However, there are casinos in countries where Islam is the predominant religion, and there are numerous other countries throughout the world with casinos that focus their marketing strategies on attracting gamers from Muslim-majority countries.
In the 1960s and ’70s, the high-end casinos in London were populated with Arab customers awash with their newly found petrodollars. Millions of pounds sterling were exchanged on a nightly basis. Today, in the London casinos, one will still find some of the largest players from Arab nations rubbing shoulders with Asian players.
Despite all the historical and current troubles in the Middle East and North Africa (MENA), Middle Easterners continue to seek gambling opportunities both within the region and in the West and the Far East, where larger integrated resorts attract the highest-net-worth players from around the world. With such intense investment and development originating from Middle Eastern sovereign wealth funds and other major corporations, especially in the hospitality and leisure sector, the region may be primed to become a major gaming and integrated resort destination.
Gambling Authority Cyprus News
However, it is important to consider the previous successes and failures of the market, as well as the delicate balance of casino gaming within the culture of any Muslim-majority nation.
Gambling in MENA Countries Today
In Egypt, the 14 or so casinos in Cairo still do a good business, generating over $200 million in gross gaming revenue (GGR) annually. Casinos are only permitted within five-star hotels, and Egyptian citizens are not supposed to enter the casinos. All players must present their passports at the door to gain entry. However, in the Middle East, many people have dual citizenship, and even Egyptians will show another passport to gain access to casinos.
Other quirks are that the casinos have to pay a gaming tax of 50 percent of GGR, and this has to be paid on a daily basis. If the casino loses on any particular night, the loss cannot be netted against casino wins in the following nights for tax purposes. The basis for the gaming tax and the consequent win/loss volatility work against high-action games such as craps and roulette.
Morocco is similar to Egypt in that it allows casino gambling, albeit with a smaller number of casinos than Egypt at only seven, and Moroccan citizens are also not supposed to enter the casino. However, similarly to Egypt, many wealthy Moroccan citizens are holders of two passports. The casinos are all located within five-star hotels and resorts in Marrakech, Agadir, El Jadida and Tangiers. The length of licenses and the gaming tax are negotiable depending on the level of investment made.
Tunisia allows casino gaming but only for foreign visitors. There are currently three casinos in the country. There were more, but many have closed since the downturn in tourism following a terrorist attack in Sousse that targeted foreign tourists in 2015.
Not many people realize that in Lebanon, the Casino du Liban operates in the coastal town of Maameltein, about 20 kilometers north of Beirut. It was originally opened in 1959 and closed in 1986, only to reopen after a $50 million refurbishment in 1996. The casino has more than 60 tables and 600 slot machines, a 1,000-seat showroom, a 600-seat theater, three restaurants, and banqueting for up to 600 people.
The casino’s average annual GGR is approximately $175 million. In 2017, the casino had gross revenues of $150 million, of which 50 percent was paid out in taxes and $80 million was paid out in salaries; the company has over 1,400 employees.
The oldest casino in the Middle East is the Casino du Liban in Lebanon, located just north of Beirut
Casino du Liban is a public company, quoted on the Beirut OTC market. Shares of the company have traded as high as $550 per share but are currently trading at $140 following years of losses. More than half of the shares that are not in the public float are owned by Intra Investment Company, which is owned 35 percent by the Lebanese Central Bank, 10 percent by the Lebanon Ministry of Finance, 4 percent by the Kuwaiti National Bank (which used to own 23 percent but has sold down), and 3 percent by the Kuwaiti government. There appears to be no restriction on Middle Eastern governments owning shares in casino companies, whether domestic or international.
Another Middle Eastern fund that has no difficulty investing in casinos is Dubai World, the sovereign wealth fund of the government of Dubai. In 2007, Dubai World invested $5.2 billion in what was then known as MGM Mirage, in order to bail out the company due to the strain of developing CityCenter in Las Vegas.
Istithmar World, a subsidiary of Dubai World, invested heavily in Kerzner International in 2006 to take the company private, emerging with a 30 percent share of the company. Kerzner International once owned the Atlantis Paradise Island resort in the Bahamas, but its only gaming property today is the Magazan Beach and Golf Resort in Morocco.
Other non-Middle Eastern countries that attract customers from these regions include the approximately 25 in Northern Cyprus; Melco’s City of Dreams resort under construction in Cyprus; the five casinos in Batumi, Georgia, which is just a short drive away from the Turkish border; the casinos in Tbilisi, Georgia, which are widely popular with guests from Turkey, Azerbaijan, Israel and Iran; and many other countries in the region.
In addition to those listed above, London casinos still attract some of the highest-net-worth players in the region. One would need only to walk into a London club to see who these big players are. In addition to the few Chinese players in the region who will always find their way to the casino, the casinos’ largest whales tend to be of the Middle Eastern persuasion.
Defunct MENA Gaming Markets
Turkey used to have a vibrant casino gaming market. In fact, Turkey’s gaming market was too vibrant.
The first casino opened in Turkey in 1990, and there was little established in terms of regulation. When casinos were eventually banned in Turkey, it wasn’t the number of casinos in the country, but rather the ubiquity of casino-style slot machines in bars and restaurants throughout the country that led former President Süleyman Demirel to ban all forms of gaming except the lottery. Today, any Turk wishing to gamble can simply hop on a plane to Northern Cyprus (whose official name is the Turkish Republic of Northern Cyprus) or Georgia.
There was a casino in Jericho, a Palestinian city in the West Bank, with 120 tables and more than 300 slot machines. It was permitted to open by Yasir Arafat in 1998 in the hope that it would bring a much-needed economic boost to the Palestinian National Authority, despite the fact that many of the residents of the territory are Muslims and do not agree with gambling.
The intent was for Israelis to gamble in the casino because casino gambling was, and is not currently, allowed in Israel. The casino was a commercial success for the two years it operated, with gaming revenues estimated at roughly $160 million per year. Unfortunately, rioting and a subsequent travel ban on Israelis visiting the territory put a halt to the casino enterprise.
Similarly, Azerbaijan formerly allowed casinos, although a scandal involving the current president and gambling overseas led him to close the casinos as a part of his moral crusade against gambling.
In Iraq, prior to the first Gulf War, there was a casino in the Ishtar Sheraton Hotel in Baghdad. Although intended for foreigners staying at the hotel, many Iraqis enjoyed playing in the casino. Following the onset of the first Gulf War, the casino closed, and the expatriate staff was evacuated. The casino has yet to reopen.
During the reign of Shah Reza Pahlavi in Iran, there were casinos in Isfahan and Tehran, as well as one on the island of Kis. The casinos were purported to be owned in part by the Pahlavi family. They were operated by British companies, including Ladbrokes, and they were extremely popular and highly profitable with a high volume of play from wealthy Iranians and others from countries nearby. The casinos closed when the Shah was overthrown in the Islamic Revolution of 1978.
Gambling Authority Cyprus International
Evaluating the MENA Gaming Market as a Whole
Is this a billion-dollar market? Yes. However, not all of the money is filtered through the aforementioned casinos. Much of it finds its way over to larger casino resorts in Asian countries, such as Genting Highlands in Malaysia. In Malaysia, while it is illegal for Malay Muslims to gamble, there is no particular gambling ban for Muslims from other countries. When walking on the casino floor at Genting, while the majority of players are coming from China and elsewhere in Asia, the presence of gamers from the Middle East is staggering.
While the Middle East does generate substantial levels of gaming play, it comes at a price. Deep discounts on losses are to be expected. While loss discounts of 20 percent to 30 percent are expected, some casinos in North Cyprus will discount players’ losses by as much as 50 percent. The game of choice is Russian Poker, a house-banked version of five-card poker. While the hold percentage of this game can reach upwards of 35 percent, which makes large discounts on play more palatable to the operators, larger players will often negotiate the rules with the casinos prior to visiting. By adjusting the number of hands that one can play simultaneously, and through other unique rule changes, the players can lower the house’s advantage.
Many of the guests who frequent these casinos arrive through a junket program. With these programs, the casinos often need to arrange for the players to receive discounted or free hotel rooms and food, and often some amount of free play or direct bet in the casino. In certain circumstances, the operator will share a percentage of the total win from the group with the junket operator. However, operators must be very careful in selecting the junkets with whom they partner, as the players arriving to Middle Eastern casinos via junkets are not usually high worth. Very often, the average junket player might only lose $800, against which the casino had $400 of promotional allowances.
While there can be high levels of risk taken on by the operators based on considerations for promotional allowances and potential adjustments to the rules of the game, these casinos can make substantial amounts of revenue. Those casinos that are successful can generate upwards of $4,000 per table per day. While slots are not as popular, they are growing and beginning to attract more players.
Despite the Sharia law mandate prohibiting Muslims from gambling, gamers from the Middle East account for a sizeable share of gaming dollars spent throughout the world. However, as most of these dollars are lost to casinos outside of the Middle East, a significant challenge remains in ensuring that these revenues are kept closer to home.
While many Muslim-majority countries chose to offer casino gaming only to foreigners or non-Muslim visitors, the performance of these casinos is often hindered by high tax rates and impractical regulatory barriers. The ideal Middle Eastern gaming market would enable casino operators to achieve sustainable gaming revenues with a moderate tax rate that yields the optimal amount of revenue to the host nation, all while respecting the rich culture and norms of Muslim-majority nations and ensuring that casinos and integrated resorts are welcomed within local communities, an essential aspect of any successful gaming operation.