LotteryOrPoker
10-13-2006, 03:52 PM
[ QUOTE ]
Dear affiliate.
On September 30, 2006 the US Congress passed the “SAFE Port Act” which also contained certain provisions known as the “Unlawful Internet Gambling Enforcement Act of 2006” that affects the processing of payments between US customers and certain online gaming companies. This legislation was signed into law by President George Bush on October 13, 2006.
Please find the Ad Hoc Release regarding our way forward due to this development in the U.S. below in this e-mail .
We will get back to you with further communication shortly, where you will be able to find more information. If you have any questions in the meanwhile, please contact your Account Manager.
Your Affiliate Team.
spacer Important announcement for affiliates
On 30 September 2006 the US Senate passed the SAFE Port Act which also contains a section referred to as the Unlawful Internet Gambling Enforcement Act of 2006. The new act primarily affects online payment transactions for games of chance, which have been deemed unlawful under US American law, and aims to prevent these by threatening severe punishment, court sanctions and regulatory action. This statute adds a new subchapter to Chapter 53 of the United States Code stating that online games of chance are primarily financed through credit card payments and money transfers and that new enforcement tools have become necessary for the Internet. Not only sports bets, but also games of chance and lotteries, are affected by the bet or wager definition. The law makes payment transactions related to unlawful online games of chance virtually impossible, listing all payment options affected in detail as is customary for US legislation. In addition, § 5367 also contains a provision about the liability of any company or person involved in such transactions. This also applies to operations owned or controlled by someone who accepts unlawful bets and wagers.
Ongame, one of the companies in the bwin Group is also affected by the bill which was signed into law today by President George W. Bush.
bwin regrets that the US has taken this step which will make it virtually impossible for listed, strictly regulated and transparent operators to offer real money entertainment to US customers. bwin is doubtful whether US authorities will be able to achieve their stated goals - protection of minors and the prevention of gaming addiction - by introducing such legislation. Past experience with restrictive measures to prevent the abuse of alcohol has shown that such prohibition did not have the desired effect, merely driving consumers underground and contributing to the rapid growth of an entirely unregulated black market. The online gaming industry is unanimous in its view that the creation of forward-looking regulation can more effectively address issues such as consumer protection, the protection of minors, the prevention of gaming addiction, or the prevention of money laundering. Such a policy, if properly monitored by the authorities, would be much more effective than this general ban.
Following an in-depth analysis of the situation and extensive legal consultation, bwin has decided to comply with the new legislation and will no longer accept any new US-resident customers for its real money gaming products, effective immediately. The company is working on technical arrangements that will prevent existing customers from accessing its real money games. Until further notice, bwin will only be offering a play money line-up to the US market. The greatly increased risk of prosecution by the US authorities, the considerable pressure on banks and payment providers coupled with the requirements for publicly listed companies leave the company no other option.
For the year 2006 the Ongame customer base also includes some 177,000 active real money customers not resident in the US. In addition, the majority of customers in Ongame's poker network are from Europe. In Q2 2006, the former Ongame customer portfolio generated gross gaming revenue of EUR 29.0 million. EUR 9.3 million or 32 percent of the gross gaming revenue were generated from customers not resident in the US. Cumulative gross gaming revenue of the bwin group amounted to EUR 94.3 million in Q2 2006; as leading provider of online gaming entertainment in continental Europe, bwin generated 79 percent of its gross gaming revenue through customers not living in the US in Q2 2006.
bwin customers not resident in the USA are not affected at all by these legislative changes in the United States, and can continue to enjoy the full range of bwin products.
The bwin Group has over 10 million registered customers (including 7 million play money customers) in over 20 core target markets. Operating under international and regional licences in countries like Gibraltar, Kahnawake (Canada), Belize and Germany, Italy, Mexico, Austria and the United Kingdom, the Group has set itself the goal of becoming the number one address for sports betting, games and entertainment via digital distribution channels. The Group offers sports betting, poker, casino games and soft games, as well as audio and video streams on top sporting events like, for example, the German Bundesliga. The parent company bwin Interactive Entertainment AG has been listed on the Vienna Stock Exchange since March 2000 (ID code BWIN, Reuters ID code BWIN.VI). Further information about the Company can be found on its investor relations website at www.bwin.ag. (http://www.bwin.ag.)
[/ QUOTE ]
Dear affiliate.
On September 30, 2006 the US Congress passed the “SAFE Port Act” which also contained certain provisions known as the “Unlawful Internet Gambling Enforcement Act of 2006” that affects the processing of payments between US customers and certain online gaming companies. This legislation was signed into law by President George Bush on October 13, 2006.
Please find the Ad Hoc Release regarding our way forward due to this development in the U.S. below in this e-mail .
We will get back to you with further communication shortly, where you will be able to find more information. If you have any questions in the meanwhile, please contact your Account Manager.
Your Affiliate Team.
spacer Important announcement for affiliates
On 30 September 2006 the US Senate passed the SAFE Port Act which also contains a section referred to as the Unlawful Internet Gambling Enforcement Act of 2006. The new act primarily affects online payment transactions for games of chance, which have been deemed unlawful under US American law, and aims to prevent these by threatening severe punishment, court sanctions and regulatory action. This statute adds a new subchapter to Chapter 53 of the United States Code stating that online games of chance are primarily financed through credit card payments and money transfers and that new enforcement tools have become necessary for the Internet. Not only sports bets, but also games of chance and lotteries, are affected by the bet or wager definition. The law makes payment transactions related to unlawful online games of chance virtually impossible, listing all payment options affected in detail as is customary for US legislation. In addition, § 5367 also contains a provision about the liability of any company or person involved in such transactions. This also applies to operations owned or controlled by someone who accepts unlawful bets and wagers.
Ongame, one of the companies in the bwin Group is also affected by the bill which was signed into law today by President George W. Bush.
bwin regrets that the US has taken this step which will make it virtually impossible for listed, strictly regulated and transparent operators to offer real money entertainment to US customers. bwin is doubtful whether US authorities will be able to achieve their stated goals - protection of minors and the prevention of gaming addiction - by introducing such legislation. Past experience with restrictive measures to prevent the abuse of alcohol has shown that such prohibition did not have the desired effect, merely driving consumers underground and contributing to the rapid growth of an entirely unregulated black market. The online gaming industry is unanimous in its view that the creation of forward-looking regulation can more effectively address issues such as consumer protection, the protection of minors, the prevention of gaming addiction, or the prevention of money laundering. Such a policy, if properly monitored by the authorities, would be much more effective than this general ban.
Following an in-depth analysis of the situation and extensive legal consultation, bwin has decided to comply with the new legislation and will no longer accept any new US-resident customers for its real money gaming products, effective immediately. The company is working on technical arrangements that will prevent existing customers from accessing its real money games. Until further notice, bwin will only be offering a play money line-up to the US market. The greatly increased risk of prosecution by the US authorities, the considerable pressure on banks and payment providers coupled with the requirements for publicly listed companies leave the company no other option.
For the year 2006 the Ongame customer base also includes some 177,000 active real money customers not resident in the US. In addition, the majority of customers in Ongame's poker network are from Europe. In Q2 2006, the former Ongame customer portfolio generated gross gaming revenue of EUR 29.0 million. EUR 9.3 million or 32 percent of the gross gaming revenue were generated from customers not resident in the US. Cumulative gross gaming revenue of the bwin group amounted to EUR 94.3 million in Q2 2006; as leading provider of online gaming entertainment in continental Europe, bwin generated 79 percent of its gross gaming revenue through customers not living in the US in Q2 2006.
bwin customers not resident in the USA are not affected at all by these legislative changes in the United States, and can continue to enjoy the full range of bwin products.
The bwin Group has over 10 million registered customers (including 7 million play money customers) in over 20 core target markets. Operating under international and regional licences in countries like Gibraltar, Kahnawake (Canada), Belize and Germany, Italy, Mexico, Austria and the United Kingdom, the Group has set itself the goal of becoming the number one address for sports betting, games and entertainment via digital distribution channels. The Group offers sports betting, poker, casino games and soft games, as well as audio and video streams on top sporting events like, for example, the German Bundesliga. The parent company bwin Interactive Entertainment AG has been listed on the Vienna Stock Exchange since March 2000 (ID code BWIN, Reuters ID code BWIN.VI). Further information about the Company can be found on its investor relations website at www.bwin.ag. (http://www.bwin.ag.)
[/ QUOTE ]