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Posted 2/24/11 : Spanish gambling giant launches jurisdictional litigation
The lawyers are busy in Spain, according to local media reports, preparing a case for the Spanish gambling group Codere, which appears to be defending its turf against other EU companies.
The reports claim that Codere is about to launch litigation in a Madrid court against Austrian internet gambling group Bwin and La Liga football club Real Madrid.
The case has its roots in marketing, specifically the aggressive advertising being run in Spain by Real Madrid and sponsor Bwin. Codere is reportedly claiming that these initiatives are illegal in terms of the Unfair Competition Law - Law 31/1991 - because Bwin and the famous football club are advertising games of chance and that this practice “...has not been previously authorised by the responsible Authority or made subject to any statutory condition, neither is it protected by European Union cross-border laws”.
The Codere legal team explained this week that authorised gambling operators in Spain are not permitted to advertise or may only do so subject to stringent restrictions.... and then only after obtaining authorisation from the competent Authority.
They claim that Spanish-authorised operators have the capability to offer internet gambling but are constrained from doing so by local law; this means that they are unable to compete on a level playing field with offshore companies like Bwin, and that consequently Bwin's advertising constitutes an unfair advantage.
“We are living through a situation like blood letting because Bwin operates from a tax haven without paying gambling taxes or duties,” said the company. “The existence of unfair competition is obvious."
This unfair competition, resulting from the use of an illegal practice, is affecting the gambling sector in Spain, which accounts for 1 percent of Spanish GDP and generates over 100,000 direct jobs, a spokesman claimed.
Consequently, Bwin should be prevented from advertising, even to the extent of terminating its sponsorship of Real Madrid.
Codere has also indicated that it is considering further legal action along similar lines against other foreign companies from EU jurisidctions. possible targets - and this is speculation based on known competitors from the EU involved in the Spanish market - could include: Victor Chandler, Bet-at-home, Paf, 12bet, Unibet and Interwetten.
The national Spanish government is currently at final draft stage in the introduction of new and more liberal gambling laws, under which it is proposed that sports sponsorships signed prior to January 1 this year will be deemed legal.
However, the present regulatory system grants autonomy to provinces like Madrid, with which Bwin has licensing for retail sports betting.
The Spanish gambling group Codere is no pushover; it operates in Europe and Latin America and manages over 53,000 gaming machines, 127 bingo halls, 415 sports betting points, 13 land casinos and 3 racetracks. It has developed online gambling capability for countries like Italy where licenses can be obtained from the local appropriate authority.

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Gambling News :

Wanajump Launches - #Wanajump Spanish online and land gambling operator Grupo R. Franco appears to be emulating the William Hill group, announcing this week that it is to begin a start-up accelerator program for innovative entrepreneurs, which it has titled Wanajump.

Coral Launches player proposition betting product - Digital Sports Tech, a business-to-business software provider of sports betting solutions, has signed a deal with UK online and land sports betting operator Coral to provide an innovative player proposition betting product.

Oshi online casino now accepts fiat currencies - The Oshi online casino, which started just a year ago as a Bitcoin-denominated operation, has described its expanded activity in a statement this week, noting that in addition to Bitcoin it now accepts fiat currencies and has added new game providers to its roster of suppliers.

New Standards for UK Online Gambling - Online gambling service and technology providers, along with operators and testing agencies will be studying the new gambling software and technical standards proposal published by the UK Gambling Commission following a public consultation.

Pennsylvania Gambling Bill 1887 returned with additions - The interaction between the Pennsylvanian House and the state Senate has become increasingly like watching a game of ping pong as the two political establishments wrestle with online gambling legalization and court-ordered tax fixes in the dying days of the current political season.

UKs Advertising Standards Authority vs Ladbrokes - A Ladbrokes Casino email promo has fallen foul of the UKs Advertising Standards Authority who deemed significant terms and conditions concerning bonusing to be unclear or misleading.

Mybet Earnings Struggle - The statement this week reveals that Mybet continued to be hampered by negative trends from historic quarters, making its original performance estimate "unrealistic".

Tom Horn Awarded Malta Gaming License - Online gambling software provider Tom Horn Gaming has been awarded a Malta Gaming Authority license that permits the company to host and manage Malta-based gaming operators.

Calvin Ayre invests in new Antigua Business Center - Ayre joined with government officials this week in a ground-breaking ceremony for a five-story centre on Antigua which will be home for the venture. The "green" building will be solar powered and provide employee-friendly services like catering, a gym and child care.

Attack of the Zombies Slot - Online gambling games developer Genesis Gaming has unveiled its latest game, with a theme based on a horror story of the undead, exploiting the current trend....and just in time for Halloween.

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