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Turkey Passes Law Against Online Poker

Turkish legislators passed a law on February 28 that forbids online gambling services to be offered by any ‘unauthorised’ domestic or foreign company to citizens in Turkey. Like the United States passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) which was designed to protect online state lotteries and horse betting, the Turkish law is designed to protect its partially state-owned gaming company IDDAA.

Several companies have already reacted. Austria-based Bwin, whose Ongame e-solutions includes PokerRoom.com, has already suspended business activities in Turkey. Since Turkey represents 6 per cent of Bwin’s gross gaming revenues, the hiatus will cost Bwin a 25-20 million Euro drop in gross gaming revenues per year.

Swedish public company Betsson, is parent to BetssonPoker, CherryPoker and CasinoEuroPoker. Turkey represents 20 percent of Betsson Online’s revenues and 15 percent of its subsidiary Net Entertainment’s revenues. Betsson issued a statement quoting CEO Pontus Lingwall as saying, “We hope the legislation can be positive to us. Protectionistic legislation has shown to be of our advantage, and I believe it is applicable to this case as well. We are in the middle of a phase of strong growth, where the first quarter has started out fantastic. The underlying growth of online gaming will not be threatened by individual countries’ actions.”

Though the Turkish law’s long-winded title is “Law for amending certain articles of the law on bookmaking organisation concerning football contests”, the new legislation has sharp teeth, with fines up to between two and five years imprisonment to “anyone involved in enabling access, promotion or operation of sites offering egaming products to Turkish nationals.”

Since Turkey is about to enter the European Union (EU), some observers point out that banning foreign companies may not be a good move for Turkey because the European Union promotes policies of free movement of trade and services between member states. They wishfully suggest Turkey might be pressured to change its law. But litigation has raged among several European Union nations who object to such free movement, notably Germany and France who arrested two Bwin executives last fall (click here to read related article).

Another tactic is being used by Bwin. Reuters reported that Bwin is investigating the possibility of becoming licensed in Turkey in the future, though Turkey has not explicitly mentioned any possibility at this time.

Source: http://www.pokerpages.com/poker-news/news/turkey-passes-law-against-online-poker–online-gambling-29576.htm