Web gambling firms spend millions lobbying US
Posted by Chloe Flint on 18 Aug 2009 at 15:08
Online gambling companies are among firms spending millions of dollars on lobbying fees in America as they bid to influence US gambling laws, according to newspaper reports.
The Daily Telegraph reported online gambling firms Sportingbet, PartyGaming, and Pokerstars have all been hiring lobbying companies in America as they plan ahead for an expected overturn of anti-gambling legislation.
The Telegraph reported that a number of other companies including airlines British Airways and Virgin Atlantic have spent cash lobbying in America since September 2008.
British-based companies are entitled to lobby politicians but do not have to reveal how much it costs them. However, in America rules mean lobbying expenditure has to be disclosed every three months.
According to The telegraph report UC Group represents 10 gambling firms and has been working with Senator Barney Frank on his plan to overturn the online gambling ban. The company's lobbying expenses stand at £2.31 million since last September.
The paper also said party gaming founders Ruth Parasol and Russell De Leon have also spent £929,000 on lobby fees since September.
The Telegraph added it was not clear whether any of these fees have gone towards lobbying over issues connected to their potential prosecution for allegedly breaking US laws banning Internet gambling.
Another founder, Anurag Diskit, has already pleaded guilty and agreed to pay a $300 million fine. Vikrant Bhargava, Parasol and De Leon have not yet settled with the US Department of justice.
Sportingbet, another online gambling firm facing similar charges, has spent $60,000 in the last year in connection with the "settlement of potential criminal charges related to online gambling", the Telegraph added.
Lobbying may not necessarily be money down the drain if the experience of Camelot Group, operator of the UK's National Lottery, is anything to go by.
The company spent $20,000 in fees lobbying on laws relating to private companies running state lottery programmes.
Then in June this year the California State lottery commission rubber-stamped the release of $13.5 million to cover consultancy fees to outside advisers, with Camelot expected to be the main benefactor, according to The Telegraph.
