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The Draft Act to repeal theSchleswig-HolsteinGamingActand adopt the Interstate Treatyon Gambling was submitted tothe European Commission(EC) on 6 September, by theGovernment of Schleswig-Holstein, “stipulating that theGaming Act [once revoked]will continue to be applied tolicences that have already beengranted,” said Matthias Spitz,Attorney at Melchers.“It is interesting that thegovernment came to theconclusion that notification tothe EC was necessary, given itwill prolong the entire proce-dure and prevent a swift repeal,”said Spitz. “The EC now hasthree months to review theprovisions and, if necessary,issue a detailed opinion toobject to the provisions.” In themeantime licenseswill continueto be issued. The EC “has nodirect power to stop the govern-ment repealing theAct,”saidDr.

Wulf Hambach, Partner atHambach & Hambach.“However it can begin infringe-ment proceedings if the provi-sions contravene EU law.”Spitzthinks that “If the EC issues adetailed opinion, the draft actwill most likely fail.”The Interstate Treaty onGambling, which came intoforce in the other 14 Länder on1 July, unlike the Gaming Act,“has been criticised by the EC,particularly because of thelimitation of 20 licences and theexclusion of online poker andcasinos,” said Dr. SebastianCording, Partner at CMSHasche Sigle. “Instead ofSchleswig-Holstein followingthe other states it might havebeen a better idea if the otherstates had followed Schleswig-Holstein.”“The Interstate Treaty isincoherent and not in confor-mity with EU law,” said MartinArendts, Attorney at Arendts

Anwalte. “The licensing proce-dure is a complete mess andcertainly not in conformitywithrules set out by the CJEU.”Arendts explains:“The licensingprocedure has to be transparentandmust be based on objective,non discriminatory criteriaknown in advance.” However,“the criteria for issuing the 20Interstate licenses have not beenpublished yet,” despite theapplication process beingunderway. “The InterstateTreaty is not transparent at all,”said Hambach. “Applicants areapplying for licenses withoutany idea of the technicalrequirements, criteria or feesinvolved.”“Until the European Court ofJustice decides whether theInterstate Treaty on Gamblinginfringes EU law there will belegal uncertainty,”saidCording.Hambach concludes, “Legalbattles: that ismy prediction for2013.”

A New York Federal DistrictJudge ruled on 21 August thatpoker is mostly a game of skill,so does not constitute gamblingunder the Illegal GamblingBusinessAct (IGBA), in the caseof United States v DiCristina.“Judge Weinstein’s validationof this position is likely to havea significant effect on theway inwhich other judges analysethese issues,” said David B.Deitch, Attorney at Ifrah Law.While Deitch believes that theCourt’s decision“will add to thebuilding momentum forlegalised online poker in the

US”,FrankCatania,President ofCatania Gaming Consultants,referred to Judge Weinstein’sdecision as a“surprise”but saidthat “it does not indicate thatUS lawmakers are warming tothe legalisation of online poker.”Linda J. Shorey, a Partner atK&L Gates, observes thatdespite this non-bindingdecision, other Courts mayreach “a different conclusion”on the issue. Besides, saidCatania, the decision“willmostlikely be appealed and could bereversed by an appellate Court.”Despite the ruling, Lawrence

DiCristina, who was arrested forhosting a no-limits TexasHold’em game in a warehouse,was still found liable for prose-cution under New York State’sstricter state law.Judge Weinstein’s ruling “maybe useful in states that apply asimilar standard,” said Shorey.“But not all states definegambling in the same way orapply the same criteria to decideif an activity constitutesgambling.” For opponents ofinternet poker, “other federalstatutes are available besides theIGBA.”

Schleswig-Holstein notifies theEC to join the Interstate Treaty

British betting operator Betfairfiled a formal complaint withthe European Commission(EC) on 10 September, regard-ing the recently adoptedCypriot gambling legislation,‘which could lead to bettingexchanges being preventedfrom operating in their currentformat inCyprus,’ reads a state-ment by Betfair.“The complaint relates tointerference with the freedomof services,” said EliasNeocleous, Partner at AndreasNeocleous&Co.“However, thisis not an absolute freedom, theEC allows restrictions justifiedon grounds of public policy andsecurity.” Betfair’s complaintstates that any attempted banonbetting exchanges is discrim-inatory and a disproportionatebreach of EU law. But, contin-ues Neocleous, “the Cyprusgovernment maintains that itmust observe the higheststandards of protection againstmoney laundering, and thatbetting exchanges pose anunacceptably high risk.”“If the ECJ finds that thegambling law is in contraven-tion of EU law the CyprusRepublic will be required tomake amendments,” concludesNeocleous. “This could,however, take years to resolve.”

Complaint filedagainst Cyprusgambling law

US Judge’s ruling that poker is agame of skill “could be reversed”

Match-fixing 03Terms & ConditionsThe Spreadex case 04UK Point-of-consumption tax 06US iGaming update 09Social GamblingFacebook’s app 10EU The prohibition offoreign advertising 12India The potential foronline gambling 14

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