News

PartyGaming upbeat on US licence despite Menendez bill 12/08/2009

Stephen Carter

PARTYGAMING HAS said it will not change its lobbying focus in America despite increasing fears among European operators that federal licences will only be granted to US operators such as Harrah’s and MGM if the US repeals its UIGEA online gambling ban.

The Gibraltar-based poker and casino giant said that it will continue to lobby at federal level despite concerns from other European operators that they will not be granted a licence if the US regulates egaming.

These concerns were heightened last Thursday by the unveiling of Senator Robert Menendez’s Internet Poker and Games of Skill Regulation, Consumer Protection and Enforcement Act bill, which contains a clause allowing the treasury to reject applicants who have failed to file "a federal or state tax return…owed to a jurisdiction in which the applicant operates or does business” – widely seen as a protectionist measure allowing the US to exclude overseas operators.

An identical clause is contained in the earlier bill to legalise online gambling submitted by Representative Barney Frank.

Top US egaming lobbyist Jim Tabilio also warned this week that larger states will opt-out of any legislation arising from either bill because both contain a clause allowing them just 90 days to ratify them, while other commentators have suggested that states will opt out of federal regulations on egaming simply to favour intrastate alternatives allowing them tighter control of tax revenue.

However, a spokesman for PartyGaming however told EGRMagazine.com that the egaming giant considered it too early to refocus its lobbying efforts towards away from the federal towards the state level.

“Bills go through lots of different stages,” he said. “What’s encouraging is that America is looking to re-open the market, and we are going to look at ways to re-enter that market. At the moment, you cannot offer online gambling in the US. But as and when it opens, whether at federal level, state level, interstate or intrastate, we need to see how it rolls out.”

Party remains the European operator that has invested most in preparing for the US market to open, including reaching a settlement with the US authorities for $105m in April.

By contrast, Gigi Levy, chief executive of PartyGaming rival 888, recently predicted that America will restrict licences to US companies if it legalises egaming.

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Posted: 12/08/2009

Tags: PartyGaming , Robert Menendez

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