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 Post subject: Online Gaming License Reality
PostPosted: Tue Dec 04, 2007 10:48 am 
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Joined: Thu Nov 10, 2005 12:20 am
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Some interesting reading. I underlined a couple of things that I thought were worth thinking about. ... ensing.htm

Licensing Online Gambling by Foreign Countries
By: Chuck Humphrey

Online casino websites contend they are legal because they have gotten a license in one or more jurisdictions. The online casinos thus contend that they are legal gaming enterprises, not illegal gambling operations. Being licensed supposedly adds legitimacy and credibility to the business that has received a license. To my mind licensing should imply investigating and assuring the legitimacy of the licensed business and ongoing regulation of the licensee.

Is there substance to the licensing process in the jurisdictions that grant licenses to online casinos? What is the cost of the license? How much effort does it take to get a license? Are there any meaningful standards that have to be met to get a license? Is ample time provided to conduct a background check? Is the licensee required to prove its legitimacy? Is there any ongoing regulation and oversight by the licensing authority.

Here is some background on the licensing process in Nevada and New Jersey, jurisdictions we know thoroughly investigate licensees. Information on the processes in the jurisdictions that license online casinos is not available, but some inkling of what it must comprise can be discerned from the costs involved in obtaining those licenses and the time it takes to get them.

In Nevada and New Jersey the applicant for an unrestricted gaming license can expect the process to take one to two years. The applicant has the burden of proving to the licensing authorities that it is legitimate and has the necessary skills available to operate a casino in compliance with the law. The applicant must pay the costs of the independent investigation undertaken to test the accuracy and complete truthfulness of its responses to the myriad questions answered in filling out the application. These costs routinely amount to between $500,000 and $1,000,000. There are public hearings to delve into personal and business transgressions admitted in the application or turned up in the investigation. These amounts do not take into consideration the legal fees that each applicant incurs in getting help and advice in connection with the process.

In Nevada the fees charged licensees are based on the number of slot machines and games that the licensee wants to operate. The annual fee is $250 per slot machine and between $200 and $1,000 for each table game. There are also quarterly fees paid on a per machine and per table basis. The annual total of these fees for a bricks and mortar casino with 2,000 slot machines and 200 table games would come to over $800,000. The licensee is also taxed on the gross revenue from the gaming operation, with the tax being 3.5% of the first $50,000 per month, 4.5% of the next $84,000 and 6.75% of the amount over $134,000. So, if gross revenues amount to $100 per day per slot machine and $500 per day per table, the annual gross revenue would come to about $100 million, with a resulting total annual state tax of about $6,700,000.

The following table is taken from information presented by Slogold (Last Visited 11-9-2003), a member of the Haglley Holding group, which assists in setting up offshore businesses and obtaining offshore casino licenses. The table shows the license fees, tax rates, estimated times for licensing and estimated legal fees that an applicant can expect in each of the offshore jurisdictions noted.

Jurisdiction License Fee Tax Rate Time Legal Fees
Anjouan $17,500 0% 1 week $10,000
Grenada $40,000 0% 2-3 weeks $20,000
Antigua $75,000 3% 4-5 weeks $10,000
Mohawk Territory (Canada) [1] $10,000 0% 2-4 weeks $15,000
Costa Rica $100 0% 1 week $5,000
Dominica N/A 5% 3 weeks $20,000
Alderney $75,000 20% 1 month $10,000
Liberia $10 to $20 thousand 0% 2 weeks $8,000
Belize $30,000 0% 1 week $8,000
Panama $60,000 0% 1 week $20,000

 Post subject: Antigua Report
PostPosted: Fri Dec 14, 2007 1:23 pm 
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Joined: Tue Aug 08, 2006 2:18 pm
Posts: 2177
Location: USA
Antigua Eyes Big Win Against U.S. In Gaming Case

SOURCE: Reuters

(Washington, D.C.) — Antigua and Barbuda expects to receive a big damage award from the World Trade Organization in a long-running

Internet gaming dispute with the United States, a lawyer for the Caribbean nation said on Monday.

"We feel pretty confident about our case, to be honest. We really feel like we have the upper hand here," Mark Mendel, a private attorney

representing Antigua, told Reuters ahead of an expected ruling by a WTO arbitration panel on Friday.

In an April 2005 ruling, the WTO found a U.S. law allowing only domestic companies to provide online horse-race betting services

discriminated against foreign companies.

The United States has argued Antigua is entitled to only $500,000 in compensation because of that ban.

But Antigua -- which built an online gaming industry to replace declining tourist revenues -- has asked permission to impose $3.44 billion a

year worth of "cross-retaliation" on the United States.

It specifically wants permission to suspend copyright protections on American movies, music and software so its domestic manufacturers

can export those products to the United States and potentially other markets, Lendel said.

"I think we provided plenty of proof to justify our figure ... We feel pretty confident it should be a high number," Mendel said.

"I think there's no doubt that we're going to get the ability to cross-retaliate."

Last year, the U.S. Congress tightened restrictions on Internet gaming by making it illegal for banks and credit card companies to make

payments to online gambling sites.

In addition, the Bush administration announced in May it was retroactively excluding gaming services from market-opening commitments it

made as part of the 1994 world trade agreement.

That opened the door for the European Union, Japan, India and other trading partners to seek "compensation" from the United States in the

form of increased access to another U.S. service market, such as insurance or air travel.

European online gaming companies, angry about being shut out of the lucrative U.S. online gaming market, have urged the EU to seek as

much as $100 billion in compensation.

EU Trade Commissioner Peter Mandelson has played down that suggestion, but said the United States would have to provide "substantial"

compensation to satisfy the EU.

The latest deadline for finishing those talks is Friday -- the same day the WTO will rule on Antigua's damages request. Nao Matsukata,

senior policy adviser with U.S. law firm Alston & Bird, said he expected the U.S.-EU compensation talks would drag on past Friday and be

influenced by the arbitrator's report.

"The Antigua report could clearly advantage one side or another depending on how it comes out," said Matsukata, whose firm represents

UC Group, a British company which process online payments including the gaming sector.

 Post subject: Re: Online Gaming License Reality
PostPosted: Sun Apr 11, 2010 7:52 am 
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Joined: Sun Mar 14, 2010 12:01 pm
Posts: 205
ha- just goes to show that anyone can spend the money on a "license" but that does not necessarily make them legit

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