Feeds

Israel bonds with US over online betting ban

Sinful allies

Boost IT visibility and business value

Israel has officially joined the online betting prohibitionist club, led by staunch ally the United States and the collaborationist French.

According to the online edition of the Globe, Judge Abraham Heiman ruled last week that a foreign company may not take online bets from Israeli citizens, regardless of where it is headquartered or its servers are located. Israeli authorities had previously focused on stamping out that notorious threat to public morals, playing online backgammon for money. The real threat is to the Israeli government’s gaming monopoly, which provides drastically lower returns to players.

Although Eran Shendar, Israel’s top prosecutor, had already made it clear in December that online gambling was considered illegal, the detention of Victor Chandler CEO Michael Carlton last week opened a new front in the government’s war on online gambling. Following America’s lead, Israel has now thrown down the gauntlet to those offering services from abroad. Judge Heiman even cited two New York state court rulings as precedent for establishing jurisdiction over Victor Chandler, a British company.

Jurisdiction over the internet has proven to be one of the thorniest issues for the online gambling world, a point noted with some frustration by Judge Heiman. Although your reporter is an American attorney, not an Israeli one, the troublesome issue cited by the judge appears to be common to both American and Israeli law- namely, that transactions over the internet (or the telephone, or through the mail) are considered to have taken place wherever received. This is due to a well established principle of sales law, and it was what tripped up Jay Cohen, founder of the World Sports Exchange, whose case has been covered here previously.

Cohen returned to the US to fight the DOJ under the belief that since his business and all of its servers resided in Antigua, where the transactions were processed, he should not be subject to American jurisdiction. The DOJ sidestepped that problem altogether by going to great lengths to establish that the WSE had marketed itself extensively to the American public, thereby availing itself of the American market and American law, and Jay Cohen ended up in prison.

This concept originally was developed to protect the little guy or gal - a little old lady in California, for example, defrauded by mailings from a New York insurance company that cashed her check in New York, could be protected by California law due to the fact that the company had “purposely availed” itself of California jurisdiction. This principle gets considerably spookier, however, when the federal government is the one invoking it.

According to company filings, Israel was Victor Chandler’s 2nd biggest market in 2006. Apparently the massive marketing campaign by Victor Chandler in Israel last year, including ads run on public buses, paid some dividends, and proved a bit much for Judge Heiman to overlook. ®

Burke Hansen, attorney at large, heads a San Francisco law office.

Gartner critical capabilities for enterprise endpoint backup

More from The Register

next story
The police are WRONG: Watching YouTube videos is NOT illegal
And our man Corfield is pretty bloody cross about it
China hopes home-grown OS will oust Microsoft
Doesn't much like Apple or Google, either
Super Cali signs a kill-switch, campaigners say it's atrocious
Remote-death button bad news for crooks, protesters – and great news for hackers?
UK government accused of hiding TRUTH about Universal Credit fiasco
'Reset rating keeps secrets on one-dole-to-rule-them-all plan', say MPs
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
e-Borders fiasco: Brits stung for £224m after US IT giant sues UK govt
Defeat to Raytheon branded 'catastrophic result'
Don't even THINK about copyright violation, says Indian state
Pre-emptive arrest for pirates in Karnataka
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?