TELEGAME EUROPEAN ECONOMIC INTEREST GROUPING, EEIG by www.cita.es

(C) 2002 Cooperación Internacional en Tecnologías Avanzadas (C.I.T.A.) SL, at Internet http://www.cita.es
Please make a link to http://www.cita.es/telegame

TELEGAME EUROPEAN ECONOMIC INTEREST GROUPING TELEGAME - E E I G S T A T U T E 22/12/2002 unofficial draft subject to changes

Date: XXX (This TELEGAME EEIG draft must be registered whenever www.cita.es signed a contract for it with a partner)

TELEGAME Parties. We are open to partnerships with anyone expert or interested in Europe for

"Other games" that means here: Los demás juegos, autres jeux, andere Spiele, altri giuochi, Outros jogos, andere spellen, Andre spil, Andra spel, muut pelilaitteet , Άλλα παιχνίδια and SERIOUS GAMBLING USING NEW TECHNOLOGIES, while we foresee the FUTURE of GAMING.

Still to be decided the founding members of the promotional TELEGAME EEIG Grouping starting anyhow with:

Cooperación Internacional en Tecnologías Avanzadas (C.I.T.A.) SL
C/ Fernando Poo, 16, 28045 Madrid, Spain
Apartado Postal (P.O. Box) 17083, 28080 Madrid, Spain
Tel.: +34914743809, Fax: +34914738197, Cellular GSM: +34619776475
E-mail: miguel@cita.es
Internet http://www.cita.es
Contact: Ing. Miguel Angel Gallardo Ortiz, President and General Manager (CEO) who will act as the EEIG Chairman of the Board of Directors and co-ordinator until a General Assembly will decide otherwise.

There will be at least 4 foundation members from 3 European countries before 1^st February 2003 but this EEIG is very open to non-European members. Incorporation to the founder consortium and first informal promotional communications must be approved by Miguel Angel Gallardo Ortiz at least by an explicit E-mail from the address <miguel@cita.es>.

Right now we are looking in any European Country for this kind of contacts:

1.- Designers, manufacturers and evaluators of gaming-gambling machines and gaming-gambling software
2.- Lawyers, writers and journalists experts on European gaming-gambling
3.- Investors and serious business people with contacts in international gaming-gambling industry
4.- Gaming-gambling authorities and officials in any European country

Any member out of the European Union must have an European representative (customer or provider, designer, lawyer, distributor, added value reseller) already working toghether in any gaming-gambling technology or project.

The members hereby agree to form a EEIG under Council Regulation (EEC) 2137/85 according to the present agreement, the Grouping’s own terms and the law of the State of the Grouping’s address (Madrid, Spain).

Art. 1 – Denomination and Power

The Name of the Grouping shall be TELEGAME.
All correspondence, acts and documents of the TELEGAME Grouping must abide to provisions according to Art. 25 of the Regulation.
The TELEGAME Grouping is empowered, as of the date of incorporation, to negotiate contracts, perform legal acts, be entitled to deeds and obligations of whatever nature, within the project and to stand in court according to art. 1.2 of the Regulation.

Art. 2 – TELEGAME Object

Specifically, asking for the financial and technical support of the Partners and the European Commission, the Grouping is formed with the purpose to set up a Thematic Network Project in order to support any technology, project or proposal as well as to adopt specific programmes for research, technological development and demonstration under the 6th Framework Programme of the European Community (FP6) or any call for tenders of interest for any TELEGAME EEIG member, as well as for Scientific, Technology or Forensic Research and Design, Development, Innovation, Engineering, Expert Witnessing for Courts of Law or administrative and government procedures, as well as any industrial, intellectual, education, consultancy, appraisals, negotiations, auctions or commercial purposes related with laboratories, certification, accreditation, gaming-gambling analysis, quality evaluation or verification of any material, authorship and legal rights on networking, digital communication, back up and data storage, public and secret key tehcnology for gaming-gambling, computer and telematic security, information society technology and anti-fraud counterfeit for victims, manufacturers, exporters and importers, distributors and sellers, added value providers, authorities and trusted third parties. The future of gaming-gambling and legal-technology prospective is our priority.
The TELEGAME Grouping shall operate in any European Union Country as well as, if needed, outside the European Union. www.cita.es considers Asia and Latin America countries as a priority.

Please read APPENDIX VI. PROPOSALS AND DRAFTS FROM MAYBE PARTNERS
5. The Future of Gaming
in order to add proposals for any object of interest for new members while the EEIG is open for new partners and more objectives and proposals..

Art. 3 – TELEGAME Official address

The official address of the Grouping shall be:

The TELEGAME Grouping may have other offices at addresses in different EU Member States
The official address may be transferred to another location by unanimous decision of the Members according to art. 14 of the Regulation

Art. 4 – TELEGAME EEIG Duration The Grouping shall be active for three years since incorporation. Termination may be delayed by unanimous decision of the Members. This article can be negotiated with www.cita.es Art. 5 – Extension of the TELEGAME EEIG Should the duration of the TELEGAME EEIG, as per the above Art. 4, be extended, each member may recede from the TELEGAME Grouping by means of a registered notice to be addressed to the TELEGAME Board of Directors, to be sent at least three months before the expiring date mentioned in the Contract. Art. 6 – TELEGAME Capital/Contribution (these figures must be negotiated with www.cita.es seriously)

The achievement of the TELEGAME Grouping social objectives shall be guaranteed by the European Commission financial contribution and membership fees only when necessary.
Notwithstanding the above, in order to supply the Grouping with adequate funds to perform the activity foreseen to reach the objectives, the Members will provide the Grouping with a start-up fee of X.XXX Euros for funding, to be divided amongst them in equal shares, so that no Member may have a majority share of the capital fund, according to art. 17.1 of the Regulation. New Members joining the EEIG at a further time, after the incorporation, will provide an amount of X.XXX Euros.
At the end of each Accounting Period following the first, the Members, according to results and to forecast prepared by the Administration for the following period, shall decide whether to approve further contributions, to what extent and within which time-frame, in particular to the purpose of balancing exceeding expenditures versus contributions. Criteria shall follow the start-up funding sharing system.
The Grouping financing may also come from:

yearly contribution to be approved each time by the Members General Assembly
public or private funding

Art. 7 – TELEGAME Mode of operation Each of the Members, especially the Management of the TELEGAME Grouping, shall make available to the other Members its own experience and competencies in order to complete the projects in the best of ways, engaging themselves from this moment on, to keep all information on the projects, on the research to be performed and on the results that will be obtained, confidential and secret. Art. 8 – Third Party Liability

Members shall have unlimited joint and several responsibility for the debts and other liabilities of whatever nature of the TELEGAME Grouping.
Up to winding up of the Grouping, Members are liable to satisfy the TELEGAME Groupings creditors only after these have asked the TELEGAME Grouping for payment and have not been fulfilled within a reasonable time-lapse, according to art. 24 of Regulation.
As far as inside pacts amongst Members, the Groupings obligations shall be equally divided amongst the Members.

Art. 9 – Admission of New TELEGAME Members

New TELEGAME Members – who anyway will satisfy requisites according to Art. 4 of the Regulation, may be admitted by the majority of 2/3 of the Groupings Members who will define conditions.
Any new TELEGAME Member is exempt from liability towards the TELEGAME Groupings debts arisen prior to his admission, with the exception of a different decision taken by the majority of 2/3 of other TELEGAME Members.
Any new TELEGAME Member shall agree to the terms of this agreement and its internal regulations by undersigning a copy of this contract supplied by the Grouping Management.
Any new TELEGAME Member shall also comply with art. 19 of this contract.

Art. 10 - Termination and Expulsion of Members

Any Member shall be entitled to leave the TELEGAME Grouping further to the agreement of at least two thirds of the Members, who shall define the terms, as well as in case of just and true cause, and according to Art. 28 of the Regulation 2137/85.
Termination is decided at the TELEGAME General Assembly, further to a motivated termination proposal to be listed in the Assembly’s Agenda, anticipated to all TELEGAME Grouping Members according to the terms of this agreement.
Any Member may be expelled from the TELEGAME Grouping, further to decision of at least 2/3 of the Members, if it seriously fails in its obligations or if it causes or threatens to cause serious disruption to the TELEGAME Grouping.

10.4 Any Member may be expelled by right from the TELEGAME Grouping if: he does not fulfil the conditions made by art. 4.1 of the EEC Regulation, or (being an individual) he dies, becomes bankrupt or makes any compositions or arrangement with his creditors or (being a company) it goes into liquidation (other than a voluntary liquidation for the purposes of a reconstruction or amalgamation). Art. 11 – TELEGAME EEIG Regulation

Within six months from the TELEGAME Grouping incorporation, the Board of Directors may propose internal pacts to the Members General Assembly for unanimous approval.
The Grouping internal pacts may not establish rules in disagreement with principles and rules of this agreement. These being private TELEGAME EEIG pacts, they need not be brought to outsider's knowledge, being for TELEGAME EEIG Members only.

Art. 12 – Bodies of the TELEGAME EEIG

Bodies of the TELEGAME Grouping are the General Assembly and the Board of Directors
If not otherwise stated, any decision is taken by the absolute majority of the attending TELEGAME Grouping Members

Art. 13 – TELEGAME EEIG General Assembly

The TELEGAME General Assembly is formed by all Members. It represents the whole Members and its resolutions voted - according to the existing law and this agreement – are binding for all Members.
The TELEGAME General Assembly is chaired by the Chairman of the Board or, in case of absence, by a person designated by the Chairman.
Members having contributed foundation fee and recorded on the Members List at least five days earlier than the General Assembly date, are entitled to attend TELEGAME General Assembly.
The TELEGAME General Assembly may be called at the TELEGAME Grouping official address or elsewhere, within the European Union, on request and on behalf of the Chairman.
Members may take decisions both at a TELEGAME General Assembly and by written consultation.
The TELEGAME General Assembly may be called by registered letter or by fax 15 days before the General Assembly date. The notice shall report the specific nature of the business to be transacted, place, date and hour of the Assembly.
The TELEGAME General Assembly shall decide only on the identified agenda reported, unless all Members are attending (in person or by proxy) and accept to deliberate on other items.
Any single TELEGAME Member is entitled to request of the Chairman to call a TELEGAME General Assembly, stating the day's business to be transacted.
Should the TELEGAME Board of Directors decide to call for a written consultation of the Members, the Chairman shall notify each Member, by registered letter or by fax or electronic mail with acknowledgement of receipt, on the different provisions upon which they are requested to deliberate. The Members shall convey their answers within 15 days after receipt of the requisition by registered letter or by fax or electronic mail with acknowledgement of receipt by the different terms indicated in the requisition.
It is anyhow mandatory to hold one TELEGAME Annual General Assembly, to be called by registered letter or by fax, within 3 months from the closing date of the Accounting Period, to approve the assets and liabilities of the Grouping, the contribution and expenditures accounts and balance sheet, the forecast budget and to decide further possible contributions according to Art. 6 of this Agreement.
The TELEGAME General Assembly shall be called to deliberate on any new Member's admission, expulsion or on the termination of the TELEGAME Grouping.
All the TELEGAME General Assembly resolutions, with the exception of those where unanimity is required as per art. 17 of the Regulation or as per this agreement, shall be taken by the absolute majority of attending Members. In case of written consultation, the resolution is taken by the absolute majority of Members who have deliberated and conveyed their answer within the terms stated in Paragraph 9.
Each TELEGAME Member shall have one vote.
Each TELEGAME Member may be represented by written proxy by another TELEGAME Member. In any case, any Member cannot represent more than one other Member.
For a TELEGAME General Assembly to validly deliberate, at lease 50% of the Members must attend, either in person or by Proxy. In case of written consultation, at least 50% of the TELEGAME Members must send in their answer.
TELEGAME Members are entitled to be informed by the CS Board of Directors, at any time, on the TELEGAME Grouping activity, as well as to verify the TELEGAME EEIG Management activity by auditing records and accounting books of the TELEGAME Grouping.

Art. 14 – TELEGAME Board of Directors and www.cita.es role

A TELEGAME Board of Directors, made of a representative from each Country, will be in charge of the TELEGAME Grouping administration. Countries with more than four TELEGAME members nominate two representatives and Countries with more than eight TELEGAME members three representatives. The TELEGAME representatives of each Country will be nominated by the TELEGAME Members of this Country with votes of absolute majority. If no candidate reaches the absolute majority, the eldest TELEGAME member will be nominated representative. The votes, co-ordinated by the TELEGAME Chairman of the Board, could arrive although by letter, fax or electronic mail.
The TELEGAME Board of Directors is in charge until dismissed or revoked by the TELEGAME General Assembly.
In case the majority of the TELEGAME Directors in charge should resign or in case – for any reason – the TELEGAME Directors would represent less than 50% of the Members, the whole of the TELEGAME Board of Directors shall be considered dismissed and the TELEGAME General Assembly called for new elections
The TELEGAME Chairman will call a TELEGAME Board Meeting whenever it may be deemed necessary or whenever at least two TELEGAME Directors will request it.
The TELEGAME Board of Directors Meeting is called by registered letter or by fax or electronic mail 15 days before the Board Meeting date.
The TELEGAME Board of Directors resolutions are to be considered valid when noted by the absolute majority of the attending TELEGAME Directors.
The TELEGAME Board of Directors is charged of the TELEGAME EEIG Management and will be empowered to perform all administrative functions listed in the TELEGAME EEIG objectives.
The TELEGAME Board of Directors will especially be in charge of:

with the exception of provisions reported at paragraph 15.4 of this agreement, fulfil the formalities concerning registration and publicity foreseen for TELEGAME EEIG and in general fulfil all requirements, communications, registrations or publications foreseen by the Regulation.
provide for cost accounting foreseen for the TELEGAME Grouping and for other provisions required by law, as well as tax requirements.
monitor the project scheduling, according to directions indicated by the TELEGAME Assembly, and verify that project costs are within limits
if deemed necessary, assign specific task to any party's representative, who shall then become responsible for performing the work assigned.
keep an updated list of the TELEGAME Members partners of the TELEGAME Grouping, indicating address, domicile and location.

The TELEGAME Board of Directors will engage itself to immediately inform all TELEGAME EEIG Members of any temporary loss in balance.
The TELEGAME Board of Directors shall notify all TELEGAME Members the death, resignation or expulsion of any TELEGAME Member.
Subject to the provisions of European laws, of the Regulation and this agreement, the business of the TELEGAME Grouping shall be managed by the Chairman of the TELEGAME Board who may exercise the powers of the TELEGAME Grouping within the financial limits set down by special resolution, following the criteria listed below:

Single signature for amounts up to: X.000 Euros
Double signature " " " XX.000 Euro
Triple signature " " " from XX.001 Euro up

Art. 15 – Chairman of the TELEGAME Board and www.cita.es role

The Chairman of the TELEGAME Board will be appointed by the TELEGAME Board of Directors by absolute majority of the TELEGAME Board. Nevertheless, each member, at the time of subscription of this TELEGAME Statute, will express, although by fax, his own vote for the nomination of the first TELEGAME Chairman. The member who reaches the absolute majority of the votes will be turning out as elected.
The TELEGAME Board of Directors – if not already done so by TELEGAME General Assembly – may appoint within itself a Deputy Chairman, by absolute majority.
The Chairman of the TELEGAME Board – and the Deputy TELEGAME Chairman – shall legally represent the TELEGAME EEIG with power to sign. TELEGAME Members may unanimously deliberate to appoint the TELEGAME Grouping representation to other TELEGAME Members as well.
The TELEGAME Chairman shall act as administrator. He (She) will be in charge of executing any of the TELEGAME Boards deliberations whenever the TELEGAME Board itself has otherwise deliberated. In particular the TELEGAME Chairman shall:

fulfil all obligations needed for the TELEGAME Groupings incorporation
define the workprogramme and its activities
supervise the advancement of the work phases according to the time schedule provided by the Assembly
liaison with the European Commission for approval and financing of the project
manage the EU advances and assign to the partners the stated quota according to the Assembly deliberations.
be in a position to organise, upon the Members Council proposal, committees or workgroups charged to execute or prepare his decisions.
decide to call Extraordinary TELEGAME General Assemblies.
further to TELEGAME Board of Directors deliberation, organise written TELEGAME Members consultations.
monitor the TELEGAME Groupings abiding its fiscal, accounting and publicityobligations
at the end of each accounting periods, proceed to the preparation of the social balance sheet and the contribution and expenditures account to be submitted to the TELEGAME General Assembly approval, together with his own management report

The TELEGAME Chairman is entitled to reimbursement of expenses incurred while performing his activities for the TELEGAME Grouping, as well as a fee defined by the TELEGAME General Assembly.
Every TELEGAME Manager shall be indemnified out of the assets of the TELEGAME Grouping against any liability incurred by him in defending any proceedings whether criminal or civil in which judgement is given in his favour or in which relief is granted to him by the court from liability for negligence, default, breach of duty, or breach of trust in relation to the affairs of the TELEGAME Grouping
The TELEGAME Grouping will provide adequate and sufficient insurance to cover any risk of theTELEGAME Grouping or liability as mentioned in point 15.6 related to the activities of the TELEGAME Manager.

Art. 16 – EEIG Accounting Periods

The accounting period starts on January 1 and closes on December 31 of each year. The first accounting period shall start on the day of the TELEGAME Grouping incorporation and will close on December 31, same year.
The provisional budget for the TELEGAME Grouping's activities shall be compiled within four months from the starting of the Accounting Period
Should the Accounting Period yield profits, these – unless destined to support the TELEGAME Grouping's activities or to cover its costs – shall be accounted as capital increase.
The balance of exceeding expenditures versus contributions shall be covered by TELEGAME Members according to art. 6 of this agreement.

Art. 17 – Auditing

Auditing of financial assets, yearly cost statements and current operations to be reported on accounting books is performed according to the law by one or more Auditors non-Members of the TELEGAME Grouping.
The TELEGAME General Assembly shall name the Auditor/s

Art. 18 – Winding up and liquidation

The TELEGAME Grouping may be wound up by unanimous resolution of the TELEGAME General Assembly according to art. 12 of this agreement.
The TELEGAME Grouping must be wound up when:

the time-lapse defined in art. 4 of this agreement expires or whenever any of the wounding up clauses foreseen in the contract arises.
the fulfilment of the Groupings objectives or the impossibility to achieve them.
the requisition of art. 4.2 of the Regulation are not met.

by deciding the TELEGAME Grouping wounding up or be ascertaining the wounding up of the TELEGAME Grouping Members appoint one or more liquidators who shall fulfil the obligations charged upon them by TELEGAME EEIG regulation

Art. 19 – Exploitation

The TELEGAME Board of Directors shall appoint a Patent office to ascertain the patentability of the results of the project carried out by the TELEGAME Grouping, saving the rights, if any, of the inventors).
The TELEGAME General Assembly, on the basis of the patentability study and related costs, shall decide by absolute majority of those present whether to register the equipment or the technology.
The patenting costs shall be equally shared among the TELEGAME Members agreeing to patenting.
The TELEGAME Members engage themselves as of now to draw up a separate Agreement with the purpose to define commercial exploitation and/or patenting of the results. It remains anyhow understood that the TELEGAME Grouping as such shall not proceed neither to patent nor to register, limiting its activities to feasibility studies.

Art. 20 – Severability

Any controversy arising among the TELEGAME Members pertaining validity, interpretation and execution of this agreement and any related act, in particular concerning just cause or reasons for exclusion as of art. 10 of this agreement or to the evaluation of the resigning TELEGAME Members quota, not mandatorily submitted to the competent legal authorities according to the Regulation or other applicable normative, shall be brought to an Arbitrator. Any Member might appoint an Arbitrator.
Any nomination shall be notified to other TELEGAME Members within 20 days from the date of the arbitration requested by one or more TELEGAME Members.
Should the arbitrators be of an even number, the arbitrators so appointed shall unanimously appoint another arbitrator.
Should there be no unanimity, the nomination shall be deferred, by the most diligent TELEGAME Member, to the President of the Bar Association of the TELEGAME Grouping's domicile, who shall also name the arbitrator for those TELEGAME Members who did not abide to the terms.
The arbitrators appointment will be defined by majority and will be binding for all TELEGAME Members, agreeing as of now to the negotiated ex equo et bono solution of the upcoming controversies. Members shall deliberate accordingly within the TELEGAME Grouping

Art. 21 – TELEGAME Governing Law Any matters not contemplated under this agreement shall be governed in all respect by EEC Regulation and the law of the TELEGAME EEIG domicile (Madrid, Spain). Art. 22 – Disputes Any other disputes or differences arising from or in connection with this agreement shall be settled under the Court of the TELEGAME Grouping's domicile (Madrid, Spain). APPENDIX I European Previous References

1.- Abstract: A Catalan SME has developed cryptographic software for electronic voting that ensures a maximum degree of accuracy, privacy and trust. Governments or large entities that usually perform referenda, polls or elections among their employees, members or stakeholders can use e-voting. This system ensures a completely trustful system for voting, even more than traditional polls. The company is looking for commercial agreement to license the software.

Networked methods of voting/polling provide great benefits and advantages over more traditional methods. However, electronic voting raises many security concerns, especially in the case of remote voting. General security solutions used in e-commerce or e-business are not valid for online elections. Currently there exist already e-voting platforms using, for instance, data-transport security protocols such as SSL, TLS or WTLS, which ensure confidentiality and integrity of ballots while they are transmitted over the network, but since they are deciphered at the voting server, a cracker or a system administrator may be able to alter, remove or add ballots.

The cryptographic solutions existents to solve these security issues are divided in two main groups: homomorphic encryption and derivation of the mixing concept. Our company has chosen the second group for the reasons written in main advantages. The software solutions implemented allows.
- Strong authentication of voters.
- Accuracy of election results.
- Voter's privacy.
- Secrecy of intermediate results.
- Verifiability by individual voters.
- Prevention of coercion and vote-selling.

Company professionals have given lectures on e-voting in several Universities and Public Offices. The first binding online election in Europe was performed over the Internet using a secure protocol by this company (1997 Presidential Election of the IEEE IT Spanish Chapter). Company research results account for more than 20 publications on e-voting security in international scientific conferences and journals.

The company is currently working with an Australian company securing its already existing e-voting platform. Also, they are currently developing cryptographic software that ensures the fairness and other security issues in on-line gambling platforms.

Main Advantages:
- Easy platform integration: software components don't impose heavy computing requirements on the systems to be deployed, despite its cryptographic nature. This allows address secure polls, surveys and elections using lightweight client platforms such as web browsers and mobile client devices (e.g. mobile handsets and PDAs).

Innovative Aspects: Our scheme enables TRUSTFUL and RELIABLE electronic voting processes over poll-site and remote voting systems. The developed cryptographic scheme is devoted to fulfil the security requirements and concerns posed by electronic voting environments, such as:
- Accuracy of election results.
- Voter's privacy.
- Strong authentication of voters.
- Secrecy of intermediate results.
- Verifiability by individual voters.
- Prevention of coercion and vote-selling.

Subject Descriptors: Communications networks; Encryption; Information storage; Information transmission; Microelectronics; Software engineering

Subject Index : Telecommunications; Information Processing, Information Systems; Electronics, Microelectronics

Market Applications: Industrial chemicals

Stage of Development: Results of demonstration trials available

Remarks: IRC Data: IRCCAT/TO/009

Property Rights: Patent(s) applied for but not yet granted

Collaboration Sought: Licence agreement; Marketing agreement

Collaboration Detail: Target partner:Software companies with an eVoting platform that needs to be secured, Governments that want to implement eVoting, Large companies, associations, universities, political parties that run polls on a regular basis.
- This secure software can be applied also to online gambling.

2.- Abstract: The audio video system for mobile interactive services (AVS-MIS) offers travellers access to high quality multimedia services whilst on the move. Services such as video-on-demand (VOD), games, news and tourist information are all brought to passengers in their seats. The system brings together technologies such as computing, networking, cable and satellite television, digital video and the Internet. As well as airlines, the market for this type of in-seat entertainment system includes cruise ships, trains and other transport modes.

High performance parallel computing is the key technology enabling the development of affordable VOD. The AVS-MIS system comprises an audiovisual server, a Web server, a network and terminals. The platform is based on off-the-shelf components, on standard computer boards and standard interfaces. A wide variety of programs are compressed, using MPEG2 technology, and stored on the audiovisual server. This approach also enables the system to receive live transmissions from satellites. The Web server stores interactive applications including shopping, games, gambling, education, car rental and weather forecasts. Intranet methods are utilized and information is structured in a database. Once broadband communication with ground systems is realized, Internet facilities will become available. Passengers access the services via a user-friendly interface using a touch screen, keyboard, joy-stick, credit card reader or telephone.

Subject Descriptors: Communications networks; Human computer interaction; Microcomputers

Subject Index : Telecommunications; Information Processing, Information Systems

Market Applications: Computer networks, conferencing; Education, learning systems, distance teaching; Information network management; Integrated information systems; Workstations

Collaboration Sought: Information exchange/Training

Sources of Support: CEC

For further information, please refer to PROSOMA.

APPENDIX II Legal European References Concerning Gaming-Gambling

GUIDE TO THE CASE LAW of the European Court of Justice on Articles 49 et seq. EC Treaty
FREEDOM TO PROVIDE SERVICES European Commission 1/1/2001

5.7 LOTTERIES
In this case, on the other hand, bets on sporting events, even if they cannot be regarded as
games of pure chance, offer, like games of chance, an expectation of cash winnings in
return for a stake. In view of the size of the sums which they can raise and the winnings
which they can offer players, they involve the same risks of crime and fraud and may
have the same damaging individual and social consequences.
Case C-67/98 Zenatti [1999] ECR I-7289 §18
In those circumstances, the betting at issue in the main proceedings must be regarded
as gambling of a kind comparable to the lotteries at issue in Schindler.
Case C-67/98 Zenatti [1999] ECR I-7289 §19
It is not disputed by the parties to the main proceedings, the various Governments which
have submitted observations or the Commission that the Italian legislation, inasmuch as it
prohibits the taking of bets by any person or body other than those which may be
licensed to do so, applies without discrimination to all operators who might be interested
in such an activity, whether established in Italy or in another Member State.
Case C-67/98 Zenatti [1999] ECR I-7289 §26
However, such legislation, preventing as it does operators in other Member States from
taking bets, directly or indirectly, in Italian territory, constitutes an obstacle to the
freedom to provide services.
Case C-67/98 Zenatti [1999] ECR I-7289 §27
It is therefore necessary to consider whether that restriction on the freedom to provide
services is permissible under the exceptions expressly provided for by the Treaty or is
justified, in accordance with the case-law of the Court, by overriding reasons relating to the
public interest.
Case C-67/98 Zenatti [1999] ECR I-7289 §28
According to the information given in the order for reference and the observations of the
Italian Government, the legislation at issue in the main proceedings pursues objectives
similar to those pursued by the United Kingdom legislation on lotteries, as identified by the
Court in Schindler. The Italian legislation seeks to prevent such gaming from being a
source of private profit, to avoid risks of crime and fraud and the damaging individual
and social consequences of the incitement to spend which it represents and to allow it
only to the extent to which it may be socially useful as being conductive to the proper
conduct of competitive sports.
Case C-67/98 Zenatti [1999] ECR I-7289 §30
As the Court acknowledged in paragraph 58 of Schindler, those objectives must be
considered together. They concern the protection of the recipients of the service and,
more generally, of consumers as well as the maintenance of order in society and have
already been held to rank among those objectives which may be regarded as constituting
overriding reasons relating to the public interest (see Joined Cases 110/78 and 111/78
Ministère Public v Van Wesemael [1979] ECR 35, paragraph 28, Case 220/83 Commission
v France [1986] ECR 3663, paragraph 20, and Case 15/78 Société Générale Alsacienne de
Banque v Koestler [1978] ECR 1971, paragraph 5). Moreover, as held in paragraph 29 of
this judgement, measures based on such reasons must be suitable for securing attainment
of the objectives pursued and not go beyond what is necessary to attain them.
Case C-67/98 Zenatti [1999] ECR I-7289 §31
As noted in paragraph 21 of this judgement, the Italian betting legislation differs from the
legislation at issue in Schindler, in particular in that it does not totally prohibit the
transactions at issue but reserves them for certain bodies under certain circumstances.
Case C-67/98 Zenatti [1999] ECR I-7289 §32
However, determination of the scope of the protection which a Member State intends
providing in its territory in relation to lotteries and other forms of gambling falls within the
margin of appreciation which the Court, in paragraph 61 of Schindler, recognised as being
enjoyed by the national authorities. It is for those authorities to consider whether, in the
context of the aim pursued, it is necessary to prohibit activities of that kind, totally or
partially, or only to restrict them and to lay down more or less rigorous procedures for
controlling them.
Case C-67/98 Zenatti [1999] ECR I-7289 §33
In those circumstances, the mere fact that a Member State has chosen a system of
protection different from that adopted by another Member State cannot affect the
appraisal as to the need for and proportionality of the provisions adopted. They must be
assessed solely in the light of the objectives pursued by the natonal authorities of the
Member State concerned and of the level of protection which they seek to ensure.
Case C-67/98 Zenatti [1999] ECR I-7289 §34
As the Court pointed out in paragraph 37 of its judgement of 21 September 1999 in Case C-124/
97 Läärä and Others [1999] ECR I-0000 in relation to slot machines, the fact that the
games in issue are not totally prohibited is not enough to show that the national
legislation is not in reality intended to achieve the public-interest objectives at which it is
purportedly aimed, which must be considered as a whole. Limited authorisation of
gambling on the basis of special or exclusive rights granted or assigned to certain
bodies, which has the advantage of confining the desire to gamble and the exploitation
of gambling within controlled channels, of preventing the risk of fraud or crime in the
context of such exploitation, and of using the resulting profits for public-interest
purposes, likewise falls within the ambit of those objectives.
Case C-67/98 Zenatti [1999] ECR I-7289 §35
However, as the Advocate General observes in paragraph 32 of his Opinion, such a
limitation is acceptable only if, from the outset, it reflects a concern to bring about a
genuine diminution in gambling opportunities and if the financing of social activities
through a levy on the proceeds of authorised games consitutes only an incidental
beneficial conseqence and not the real justification for the restrictive policy adopted. As
the Court observed in paragraph 60 of Schindler, even if it is not irrelevant that lotteries and
other types of gambling may contribute significantly to the financing of benevolent or
public-interest activities, that motive cannot in itself be regarded as an objective justification
for restrictions on the freedom to provide services.
Case C-67/98 Zenatti [1999] ECR I-7289 §36
Although the judgment in Schindler relates to the organisation of lotteries, those
considerations are equally applicable - as is apparent, moreover, from the very wording of
paragraph 60 of that judgment - to other comparable forms of gambling.
Case C-124/97 Läärä [1999] ECR I-6067 §15
In those circumstances, games consisting of the use, in return for a money payment, of
slot machines such as those at issue in the main proceedings must be regarded as
gambling which is comparable to the lotteries forming the subject of the Schindler
judgment.
Case C-124/97 Läärä [1999] ECR I-6067 §18
As the referring court points out, national legislation on slot machines such as the
Finnish legislation prohibits any person other than the licensed public body from
running the operation of the machines in question; it therefore involves no
discrimination on grounds of nationality and applies without distinction to operators
who might be interested in that activity, whether they are established in Finland or in
another Member State.
Case C-124/97 Läärä [1999] ECR I-6067 §28
According to the information contained in the order for reference and in the observations of
the Finnish Government, the legislation at issue in the main proceedings responds to the
concern to limit exploitation of the human passion for gambling, to avoid the risk of
crime and fraud to which the activities concerned give rise and to authorise those
activities only with a view to the collection of funds for charity or for other benevolent
purposes.
Case C-124/97 Läärä [1999] ECR I-6067 §32
As the Court acknowledged in paragraph 58 of the Schindler judgment, those
considerations must be taken together. They concern the protection of the recipients of
the service and, more generally, of consumers, as well as the maintenance of order in
society. The Court has already held that those objectives are amongst those which may
be regarded as overriding reasons relating to the public interest (see Joined Cases 110/78
and 111/78 Ministère Public v Van Wesemael [1979] ECR 35, paragraph 28; Case 220/83
Commission v France [1986] ECR 3663, paragraph 20; and Case 15/78 Société Générale
Alsacienne de Banque v Koestler [1978] ECR 1971, paragraph 5). However, it is still
necessary, as stated in paragraph 31 of this judgment, that measures based on such grounds
guarantee the achievement of the intended aims and do not go beyond that which is
necessary in order to achieve them.
Case C-124/97 Läärä [1999] ECR I-6067 §33
As noted in paragraph 21 of this judgment, the Finnish legislation differs in particular
from the legislation at issue in Schindler in that it does not prohibit the use of slot
machines but reserves the running of them to a licensed public body.
Case C-124/97 Läärä [1999] ECR I-6067 §34
However, the power to determine the extent of the protection to be afforded by a
Member State on its territory with regard to lotteries and other forms of gambling forms
part of the national authorities' power of assessment, recognised by the Court in
paragraph 61 of the Schindler jud gment. It is for those authorities to assess whether it is
necessary, in the context of the aim pursued, totally or partially to prohibit activities of that
kind or merely to restrict them and, to that end, to establish control mechanisms, which may
be more or less strict.
Case C-124/97 Läärä [1999] ECR I-6067 §35
In those circumstances, the mere fact that a Member State has opted for a system of
protection which differs from that adopted by another Member State cannot affect the
assessment of the need for, and proportionality of, the provisions enacted to that end.
Those provisions must be assessed solely by reference to the objectives pursued by the
national authorities of the Member State concerned and the level of protection which
they are intended to provide.
Case C-124/97 Läärä [1999] ECR I-6067 §36
Contrary to the arguments advanced by the appellants in the main proceedings, the fact that
the games in issue are not totally prohibited is not enough to show that the national
legislation is not in reality intended to achieve the public interest objectives at which it is
purportedly aimed, which must be considered as a whole. Limited authorisation of such
games on an exclusive basis, which has the advantage of confining the desire to gamble
and the exploitation of gambling within controlled channels, of preventing the risk of
fraud or crime in the context of such exploitation, and of using the resulting profits for
public interest purposes, likewise falls within the ambit of those objectives.
Case C-124/97 Läärä [1999] ECR I-6067 §37
The position is not affected by the fact that the various establishments in which the slot
machines are installed receive from the licensed public body a proportion of the takings.
Case C-124/97 Läärä [1999] ECR I-6067 §38
The question whether, in order to achieve those objectives, it would be preferable, rather
than granting an exclusive operating right to the licensed public body, to adopt
regulations imposing the necessary code of conduct on the operators concerned is a
matter to be assessed by the Member States, subject however to the proviso that the
choice made in that regard must not be disproportionate to the aim pursued.
Case C-124/97 Läärä [1999] ECR I-6067 §39
It is true that the sums thus received by the State for public interest purposes could
equally be obtained by other means, such as taxation of the activities of the various
operators authorised to pursue them within the framework of rules of a non-exclusive
nature; however, the obligation imposed on the licensed public body, requiring it to pay
over the proceeds of its operations, constitutes a measure which, given the risk of crime
and fraud, is certainly more effective in ensuring that strict limits are set to the lucrative
nature of such activities.
Case C-124/97 Läärä [1999] ECR I-6067 §41
In those circumstances, in conferring exclusive rights on a single public body, the provisions
of the Finnish legislation on the operation of slot machines do not appear to be
disproportionate, in so far as they affect freedom to provide services, to the objectives they
pursue.
Case C-124/97 Läärä [1999] ECR I-6067 §42
The activity pursued by the defendants in the main proceeding appears, admittedly, to be
limited to sending advertisements and application forms, and possibly tickets, on behalf of
a lottery operator, SKL. However, those activities are only specific steps in the
organisation or operation of a lottery to which they relate. The importation and
distribution of objects are not ends in themselves. Their sole purpose is to enable residents
of the Member States where those objects are imported and distributed to participate in the
lottery.
Case C-275/92 Schindler [1994] ECR I-1039 §22
Lottery activities are thus not activities relating to 'goods', falling, as such, under Article
30 of the Treaty.
Case C-275/92 Schindler [1994] ECR I-1039 §24
They are however to be regarded as 'services' within the meaning of the Treaty.
Case C-275/92 Schindler [1994] ECR I-1039 §25
Given the peculiar nature of lotteries, which has been stressed by many Member States,
those considerations are such as to justify restrictions, as regards Article 59 of the Treaty,
which may go so far as to prohibit lotteries in a Member State.
Case C-275/92 Schindler [1994] ECR I-1039 §59
First of all, it is not possible to disregard the moral, religious or cultural aspects of
lotteries, like other types of gambling, in all the Member States. The general tendency of the
Member States is to restrict, or even prohibit, the practice of gambling and to prevent it
from being a source of private profit. Secondly, lotteries involve a high risk of crime or
fraud, given the size of the amounts which can be staked and of the winnings which they
can hold out to the players, particularly when they are operated on a large scale. Thirdly,
they are an incitement to spend which may have damaging individual and social
consequences. A final ground which is not without relevance, although it cannot in itself be
regarded as an objective justification, is that lotteries may make a significant contribution
to the financing of benevolent or public interest activities such as social works,
charitable works, sport or culture.
Case C-275/92 Schindler [1994] ECR I-1039 §60
Those particular factors justify national authorities having a sufficient degree of latitude to
determine what is required to protect the players and, more generally, in the light of the
specific social and cultural features of each Member State, to maintain order in society, as
regards the manner in which lotteries are operated, the size of the stakes, and the allocation
of the profits they yield. In those circumstances, it is for them to assess not only whether it
is necessary to restrict the activities of lotteries but also whether they should be prohibited,
provided that those restrictions are not discriminatory.
Case C-275/92 Schindler [1994] ECR I-1039 §61

2. JUDGMENTS
Court of Justice , Case C-67/98
Questore di Verona v Diego Zenatti
Freedom to provide services
21 October 1999
Preliminary ruling
(Freedom to provide services · Taking of bets)
(Full Court)

By order of 20 January 1998, the Consiglio di Stato (Council of State) referred to the Court of Justice for a preliminary ruling a question on the interpretation of the provisions of the EC Treaty concerning the freedom to provide services to enable it to determine the compatibility of those provisions with national legislation which, subject to exceptions, prohibits the taking of bets and reserves to certain bodies the right to organise the taking of such bets as are authorised.

That question was raised in proceedings between the Questore di Verona (the police prosecuting authority of Verona) and Mr Zenatti concerning the prohibition imposed on the latter from acting as an intermediary in Italy for a company established in the United Kingdom specialising in the taking of bets on sporting events.

In Italy, no licence is to be granted for the taking of bets, with the exception of bets on races, regattas, ball games and other similar contests where the taking of bets is essential for the proper conduct of the competitive event.

The bets may be placed either on the outcome of sporting events taking place under the supervision of the National Olympic Committee or on the results of horse races organised though the National Union for the Betterment of Horse Breeds. The use of the funds collected in the form of bets and allocated to those two bodies is regulated and must in particular serve to promote sporting activities through investments in sports facilities, especially in the poorest regions and in peripheral areas of large cities, and support equine sports and the breeding of horses. Under various legislative provisions, arrangements for and the taking of bets reserved to the two abovementioned bodies may be entrusted, following tendering procedures and on condition of payment of the prescribed fees, to persons or bodies offering appropriate safeguards.

Article 718 of the Italian Penal Code makes it a criminal offence to conduct or organise games of chance and Article 4 of Law No 401/1989 prohibits the unlawful participation in the organisation of games or betting reserved to the State or to organisations holding a State concession. Moreover, unauthorised gaming and betting are covered by Article 1933 of the Civil Code, according to which no action lies for the recovery of a gaming or betting debt. Nor, except in the event of fraud, can any sum paid voluntarily be reclaimed.

Since 29 March 1997, Mr Zenatti has acted as an intermediary in Italy for the London company SSP Overseas Betting Ltd ('SSP‘), a licensed bookmaker. Mr Zenatti runs an information exchange for the Italian customers of SSP in relation to bets on foreign sports events. He sends to London by fax or Internet forms which have been filled in by customers, together with bank transfer forms, and receives faxes from SSP for transmission to the same customers.

By decision of 16 April 1997 the Questore di Verona ordered Mr Zenatti to cease that activity on the ground that it was not one that could be licensed.

Since the Community judicature has not given any judgment on legislation of that kind, the Consiglio di Stato, whose decisions are not open to appeal, considers that Article 177 of the Treaty requires it to seek a ruling from the Court of Justice and asks whether the Treaty provisions on the provision of services preclude rules such as the Italian betting legislation in view of the social-policy concerns and of the concern to prevent fraud that justify it.

In this case, bets on sporting events, even if they cannot be regarded as games of pure chance, offer, like games of chance, an expectation of cash winnings in return for a stake. In view of the size of the sums which they can raise and the winnings which they can offer players, they involve the same risks of crime and fraud and may have the same damaging individual and social consequences.

In those circumstances, the betting at issue in the main proceedings must be regarded as gambling of a kind comparable to the lotteries at issue in Schindler.

However, the present case differs from Schindler in at least two respects.

First, although the laws at issue in the two cases both impose a prohibition, subject to exceptions, upon the transactions involved, their scope is not the same. Whilst the national legislation considered in Schindler involved a total prohibition on the type of gambling at issue, namely large lotteries, the legislation at issue in this case does not totally prohibit the taking of bets but reserves to certain bodies the right to organise betting in certain circumstances.

Second, the Treaty provisions on the right of establishment may fall to be applied in a situation such as that at issue in the main proceedings in view of the nature of the relationship between Mr Zenatti and SSP, the company for which he acts.

As the Court held in Schindler, the Treaty provisions on the freedom to provide services apply, in the context of running lotteries, to an activity which enables people to participate in gambling in return for remuneration. Such an activity therefore falls within the scope of Article 59 of the EC Treaty (now, after amendment, Article 49 EC) if at least one of the providers is established in a Member State other than that in which the service is offered.

In this case, the services at issue are provided by the organiser of the betting and his agents by enabling those placing bets to participate in a game of chance which holds out prospects of winnings. Those services are normally provided for remuneration consisting in payment of the stake and they are cross-frontier in character.

The Italian legislation, inasmuch as it prohibits the taking of bets by any person or body other than those which may be licensed to do so, applies without distinction to all operators who might be interested in such an activity, whether established in Italy or in another Member State.

However, such legislation constitutes an obstacle to the freedom to provide services.

The Court thus verifies whether that restriction on the freedom to provide services is permissible under the exceptions expressly provided for by the Treaty or is justified, in accordance with the case-law of the Court, by overriding reasons relating to the public interest.

The legislation at issue in the main proceedings pursues objectives similar to those pursued by the United Kingdom legislation on lotteries, as identified by the Court in Schindler, since it seeks to prevent such gaming from being a source of private profit, to avoid risks of crime and fraud and the damaging individual and social consequences of the incitement to spend which it represents and to allow it only to the extent to which it may be socially useful as being conducive to the proper conduct of competitive sports.

Those objectives must be considered together. They concern the protection of the recipients of the service and, more generally, of consumers as well as the maintenance of order in society and have already been held to rank among those objectives which may be regarded as constituting overriding reasons relating to the public interest. Moreover, measures based on such reasons must be suitable for securing attainment of the objectives pursued and not go beyond what is necessary to attain them.

Determination of the scope of the protection which a Member State intends providing in its territory in relation to lotteries and other forms of gambling falls within the margin of appreciation which the Court recognised as being enjoyed by the national authorities. It is for those authorities to consider whether, in the context of the aim pursued, it is necessary to prohibit activities of that kind, totally or partially, or only to restrict them and to lay down more or less rigorous procedures for controlling them.

The provisions adopted must be assessed solely in the light of the objectives pursued by the national authorities of the Member State concerned and of the level of protection which they seek to ensure.

The fact that the games in issue are not totally prohibited is not enough to show that the national legislation is not in reality intended to achieve the public-interest objectives at which it is purportedly aimed, which must be considered as a whole. Limited authorisation of gambling on the basis of special or exclusive rights granted or assigned to certain bodies, which has the advantage of confining the desire to gamble and the exploitation of gambling within controlled channels, of preventing the risk of fraud or crime in the context of such exploitation, and of using the resulting profits for public-interest purposes, likewise falls within the ambit of those objectives.

However, such a limitation is acceptable only if, from the outset, it reflects a concern to bring about a genuine diminution in gambling opportunities and if the financing of social activities through a levy on the proceeds of authorised games constitutes only an incidental beneficial consequence and not the real justification for the restrictive policy adopted. Even if it is not irrelevant that lotteries and other types of gambling may contribute significantly to the financing of benevolent or public-interest activities, that motive cannot in itself be regarded as an objective justification for restrictions on the freedom to provide services.

It is for the national court to verify whether, having regard to the specific rules governing its application, the national legislation is genuinely directed to realising the objectives which are capable of justifying it and whether the restrictions which it imposes do not appear disproportionate in the light of those objectives.

The Court ruled:

'The EC Treaty provisions on the freedom to provide services do not preclude national legislation, such as the Italian legislation, which reserves to certain bodies the right to take bets on sporting events if that legislation is in fact justified by social-policy objectives intended to limit the harmful effects of such activities and if the restrictions which it imposes are not disproportionate in relation to those objectives.‘

Advocate General N. Fennelly delivered his Opinion at the sitting of the Full Court on 20 May 1999.

He recommended that the Court respond as follows:

'National rules which grant special or exclusive rights to certain undertakings to take bets on sporting events and consequently restrict the freedom to provide bookmaking services are not incompatible with the Treaty provisions on the provision of services if they are imposed as part of a consistent and proportionate national policy of curbing the harmful individual and social effects of betting.‘

APPENDIX III. Unfair competition, Community law and consumer protection in Europe

Professor Hans-W. Micklitz, Bamberg/Berlin
This study was produced by Pr Hans-W. Micklitz for Health & Consumer Protection DG and represents his views on the subject. These views have not been adopted or in any way approved by the Commission and should not be relied upon as a statement of the Commission's or Health & Consumer Protection DG's views. The European Commission does not guarantee the accuracy of the data included in this study, nor does it accept responsibility for any use made thereof.

It appears once again as though the impetus for the introduction of a general regulatory framework on fair advertising can only come from consumer protection. This would mean that consumer protection would once again prove to be the driving force for the development of law. The Commission can only take the initiative if it is obliged - and willing - to respond to specific sets of problems through law-making. It is often the case that considerable differences in law between the Member States trigger and legitimise draft rules. Accordingly, Directive 93/13/EEC on unfair terms in consumer contracts would hardly have been adopted if the German Federal Court of Justice had not measured the limitation of liability of the Warsaw Convention against the General Business Conditions Act (AGB). The situation is similar concerning the adoption of Directive 98/27/EC on injunctions. In this case, the background was cross-border consumer disputes between Germany and France. So, if consumer protection is to bring about progress in the development of law and to legitimise a regulatory initiative by the Commission, then it is necessary to identify consumer problems that are so tangible and relevant as to warrant a commitment by the Community.

The most likely candidate for such a consumer problem is cross-border gambling games advertising. Although distortions of gambling games advertising can be combated on the basis of the Directive on misleading advertising, practical experience in cross-border consumer disputes shows the limitations of a legal instrument that only offers grounds for taking action if narrowly defined, common European criteria are available. Accordingly, in the end it proved impossible to satisfactorily resolve the question of cross-border gambling games advertising between France and Germany because both countries work on the basis of different rules on the burden of proof in judging misleading advertising. There are also difficulties where the misuse does not lie in the misleading but in a linking of the promised winnings with the ordering of a product.

A general regulatory framework on fair advertising can only be justified, however, if consumer problems assume dimensions that can no longer be dealt with through ad hoc approaches. Here, the parallel with Directive 93/13/EEC on unfair terms in consumer contracts comes to mind. In this instrument, not only is provision made for a comprehensive clause, but also a large number of unfair terms are prohibited in an annex. In the field of unfair advertising, the pressure for action could come from globalisation, which has been speeded up enormously by electronic commerce. This type of commerce presents many challenges to the established system of consumer protection rules. By introducing the principle of the country of origin into the electronic commerce Directive (2000/31/EC), the Community re-opened the discussion on the appropriate approach to regulation. Although the Directive excludes contractual consumer protection from the scope, the principle of country of origin still impinges on fair trading law. A community of values in which each country uses the lowest standards to set the yardsticks for European fair trading law does a disservice to the European model of the confident consumer. In this respect, pressure for the establishment of common advertising rules in the European Community is coming precisely from globalisation.

APPENDIX IV. Money laundering How to improve EU rules for prevention

The EU Directive on combating money laundering is to be made yet more effective by a forthcoming proposal to extend its scope. The proposal will extend the Directive's obligations to activities and professions outside the financial services sector, such as auditors, legal professions, real estate agents and casinos. It will also extend the definition of suspicious transactions to cover the proceeds of other serious crimes besides drug trafficking. Such an extension of the Directive will bring EU rules into line with the latest international recommendations, in accordance with the Amsterdam European Council's Action Plan to combat organised crime and requests from the European Parliament.

The announcement is featured in a Commission Report on implementation of the 1991 Directive. The Report concludes that the existing Directive is working well in all Member States and has been successful in terms of denying access for 'dirty money' to the EU's financial system, as witnessed by the growing number of suspicious transactions reported. Money laundering is now a specific criminal offence throughout the Union, whereas this was the case in only one Member State when the Commission proposed the Directive in March 1990.

Non-financial sector activities covered by the Member States' legislation

The current Directive applies to credit and financial institutions, but many Member States already apply their anti-money laundering legislation to professions and activities beyond the financial sector, or have draft legislation pending that would do so.

Belgium: A draft law would extend coverage to notaries, bailiffs (huissiers de justice), accountants and auditors, estate agents, casinos and security firms that transport money.

Denmark: Casinos.

Germany: Casinos, auctioneers, other businesses not already subject to the obligation to cooperate under the money laundering law and any person who administers another person's assets against payment.

Greece: Casinos.

Spain: Casinos, real-estate management companies, estate agents, jewellers, antique dealers, companies trading in coins and stamps.

France: All persons who professionally advise upon, execute or control operations involving capital movements are obliged to notify the authorities of any transactions which they know to be related to money laundering. Certain limits are also placed on cash transactions (such as car purchases).

Ireland: Government has announced its intention to cover solicitors, auctioneers, estate agents and accountants.

Italy: Transactions over LIT 20 million must be carried out through a financial intermediary. New legislation adopted in 1997 provides for an accelerated procedure whereby non-financial activities can be brought under the anti-money laundering legislation.

Luxembourg: A draft law would extend coverage to casinos, games of chance, auditors and notaries.

Netherlands: Casinos. Notaries have announced a voluntary scheme to report very suspicious transactions indicating serious cases of money laundering. Lawyers and accountants already have a similar voluntary arrangement.

Austria: Casinos.

Portugal: Casinos, real estate agents (brokers and dealers), real estate management companies, companies organising gambling or lotteries, antique/art dealers, jewellers, aircraft, boat and car dealers.

Finland: Draft legislation would cover casinos, betting offices and real estate agents.

Sweden: Companies administering trusts.

UK: The principal legislation covers all persons. The money laundering regulations cover all persons and institutions, including lawyers and accountants, when undertaking banking, investment or insurance-related business.

APPENDIX V. Code Description for articles involved

English
9500 TOYS, GAMES AND SPORTS REQUISITES; PARTS AND ACCESSORIES THEREOF
1 9500000000 TOYS, GAMES AND SPORTS REQUISITES; PARTS AND ACCESSORIES THEREOF
9504 Articles for funfair, table or parlour games, including pintables, billiards, special tables for casino games and automatic bowling alley equipment
2 9504000000 Articles for funfair, table or parlour games, including pintables, billiards, special tables for casino games and automatic bowling alley equipment
3 9504100000 Video games of a kind used with a television receiver
4 9504300000 Other games, operated by coins, banknotes (paper currency), discs or other similar articles, other than bowling alley equipment
5 9504301000 Games with screen
6 9504303000 Other games

Spanish
9500 JUGUETES, JUEGOS Y ARTÍCULOS PARA RECREO O PARA DEPORTE; PARTES Y ACCESORIOS
1 9500000000 JUGUETES, JUEGOS Y ARTÍCULOS PARA RECREO O PARA DEPORTE; PARTES Y ACCESORIOS 9504 Artículos para salas de juego, juegos de mesa o salón, incluidos los juegos con motor o mecanismo, billares, mesas especiales para juegos de casino y juegos de bolos automáticos
2 9504000000 Artículos para salas de juego, juegos de mesa o salón, incluidos los juegos con motor o mecanismo, billares, mesas especiales para juegos de casino y juegos de bolos automáticos
3 9504100000 Videojuegos de los tipos utilizados con un receptor de televisión
4 9504300000 Los demás juegos activados con monedas, billetes de banco, fichas o demás artículos similares [excepto los juegos de bolos automáticos (bowling)]
5 9504301000 Juegos con pantalla
6 9504303000 Los demás juegos

French
9500 JOUETS, JEUX, ARTICLES POUR DIVERTISSEMENTS OU POUR SPORTS; LEURS PARTIES ET ACCESSOIRES
1 9500000000 JOUETS, JEUX, ARTICLES POUR DIVERTISSEMENTS OU POUR SPORTS; LEURS PARTIES ET ACCESSOIRES
9504 Articles pour jeux de société, y compris les jeux à moteur ou à mouvement, les billards, les tables spéciales pour jeux de casino et les jeux de quilles automatiques (bowlings, par exemple)
2 9504000000 Articles pour jeux de société, y compris les jeux à moteur ou à mouvement, les billards, les tables spéciales pour jeux de casino et les jeux de quilles automatiques (bowlings, par exemple)
3 9504100000 Jeux vidéo des types utilisables avec un récepteur de télévision
4 9504300000 autres jeux fonctionnant par l'introduction d'une pièce de monnaie, d'un billet de banque, d'un jeton ou d'autres articles similaires, à l'exclusion des jeux de quilles automatiques (bowlings)
5 9504301000 Jeux avec écran
6 9504303000 autres jeux

German
9500 SPIELZEUG, SPIELE, UNTERHALTUNGSARTIKEL UND SPORTGERÄTE; TEILE DAVON UND ZUBEHÖR
1 9500000000 SPIELZEUG, SPIELE, UNTERHALTUNGSARTIKEL UND SPORTGERÄTE; TEILE DAVON UND ZUBEHÖR
9504 Gesellschaftsspiele, einschließlich mechanisch betriebene Spiele, Billardspiele, Glücksspieltische und automatische Kegelanlagen (z.B. Bowlingbahnen)
2 9504000000 Gesellschaftsspiele, einschließlich mechanisch betriebene Spiele, Billardspiele, Glücksspieltische und automatische Kegelanlagen (z.B. Bowlingbahnen)
3 9504100000 Videospiele von der mit einem Fernsehempfangsgerät verwendeten Art
4 9504300000 andere Spiele, mit Münzen, Geldscheinen, Spielmarken oder ähnlichen Waren betrieben, ausgenommen automatische Kegelbahnen (z.B. Bowlingbahnen)
5 9504301000 Spiele mit Bildschirm
6 9504303000 andere Spiele

Italian
9500 GIOCATTOLI, GIUOCHI, OGGETTI PER DIVERTIMENTI O SPORT; LORO PARTI ED ACCESSORI
1 9500000000 GIOCATTOLI, GIUOCHI, OGGETTI PER DIVERTIMENTI O SPORT; LORO PARTI ED ACCESSORI
9504 Oggetti per giuochi di società, compresi i giuochi meccanici, anche a motore, i bigliardi, i tavoli speciali per case da giuoco e i giuochi di birilli automatici (per esempio : bowling)
2 9504000000 Oggetti per giuochi di società, compresi i giuochi meccanici, anche a motore, i bigliardi, i tavoli speciali per case da giuoco e i giuochi di birilli automatici (per esempio : bowling)
3 9504100000 Videogiuochi dei tipi utilizzabili con un ricevitore della televisone
4 9504300000 altri giuochi a monete, a banconote, a gettoni o altri articoli simili, esclusi i giuochi di birilli automatici (bowling)
5 9504301000 Giuochi con schermo
6 9504303000 altri giuochi

Portuguesse
9500 BRINQUEDOS, JOGOS, ARTIGOS PARA DIVERTIMENTO OU PARA DESPORTO; SUAS PARTES E ACESSÓRIOS
1 9500000000 BRINQUEDOS, JOGOS, ARTIGOS PARA DIVERTIMENTO OU PARA DESPORTO; SUAS PARTES E ACESSÓRIOS
9504 Artigos para jogos de salão, incluídos os jogos com motor ou outro mecanismo, os bilhares, as mesas especiais para jogos de casino e os jogos de paulitos automáticos (por exemplo, boliche)
2 9504000000 Artigos para jogos de salão, incluídos os jogos com motor ou outro mecanismo, os bilhares, as mesas especiais para jogos de casino e os jogos de paulitos automáticos (por exemplo, boliche)
3 9504100000 Jogos de vídeo dos tipos utilizáveis com receptor de televisão
4 9504300000 Outros jogos accionados por moeda, nota (papel-moeda), ficha ou artigos semelhantes, excepto os jogos de paulitos automáticos (por exemplo, boliche)
5 9504301000 Jogos com écran
6 9504303000 Outros jogos

Netherland-Dutch
9500 SPEELGOED, SPELLEN, ARTIKELEN VOOR ONTSPANNING EN SPORTARTIKELEN; DELEN EN TOEBEHOREN DAARVAN
1 9500000000 SPEELGOED, SPELLEN, ARTIKELEN VOOR ONTSPANNING EN SPORTARTIKELEN; DELEN EN TOEBEHOREN DAARVAN
9504 Artikelen voor gezelschapsspellen, daaronder begrepen spellen met motor of met drijfwerk, biljarten, speciale tafels voor casinospellen en automatische bowlinginstallaties
2 9504000000 Artikelen voor gezelschapsspellen, daaronder begrepen spellen met motor of met drijfwerk, biljarten, speciale tafels voor casinospellen en automatische bowlinginstallaties
3 9504100000 videospellen, van de soort gebruikt met een televisieontvanger
4 9504300000 andere spellen, werkende op munten, bankbiljetten, penningen of andere gelijksoortige artikelen, andere dan bowlinginstallaties
5 9504301000 spellen met beeldscherm
6 9504303000 andere spellen

Danish
9500 LEGETØJ, SPIL OG SPORTSARTIKLER; DELE OG TILBEHØR DERTIL
1 9500000000 LEGETØJ, SPIL OG SPORTSARTIKLER; DELE OG TILBEHØR DERTIL
9504 Varer til selskabslege og selskabsspil, herunder spilleautomater, billardborde, specialborde til casinospil samt automatisk udstyr til bowlingbaner
2 9504000000 Varer til selskabslege og selskabsspil, herunder spilleautomater, billardborde, specialborde til casinospil samt automatisk udstyr til bowlingbaner
3 9504100000 Videospil, af den art der anvendes i forbindelse med en fjernsynsmodtager
4 9504300000 Andre spil, der fungerer efter indkast af mønter eller spillemærker, undtagen automatisk udstyr til bowlingbaner
5 9504301000 Spil med billedskærm
6 9504303000 Andre spil

Swedish
9500 LEKSAKER, SPEL OCH SPORTARTIKLAR; DELAR TILL SÅDANA ARTIKLAR
1 9500000000 LEKSAKER, SPEL OCH SPORTARTIKLAR; DELAR TILL SÅDANA ARTIKLAR
9504 Artiklar för sällskapsspel, inbegripet spelapparater för spelhallar, nöjesfält e.d., biljardbord och bord för kasinon samt automatiska kägelresare för bowlinghallar
2 9504000000 Artiklar för sällskapsspel, inbegripet spelapparater för spelhallar, nöjesfält e.d., biljardbord och bord för kasinon samt automatiska kägelresare för bowlinghallar
3 9504100000 Videospel av sådana slag som används tillsammans med en televisionsmottagare
4 9504300000 Andra spel, som drivs med mynt, sedlar, polletter eller andra liknande artiklar, med undantag av kägelresare för bowlinghallar
5 9504301000 Spelapparater med bildskärm
6 9504303000 Andra spel

Finnish
9500 LELUT, PELIT JA URHEILUVÄLINEET; NIIDEN OSAT JA TARVIKKEET
1 9500000000 LELUT, PELIT JA URHEILUVÄLINEET; NIIDEN OSAT JA TARVIKKEET
9504 Seurapelivälineet ja pelilaitteet sisätiloja varten, biljardipelit, kasinoiden pelipöydät ja automaattiset keilapelivarusteet
2 9504000000 Seurapelivälineet ja pelilaitteet sisätiloja varten, biljardipelit, kasinoiden pelipöydät ja automaattiset keilapelivarusteet
3 9504100000 videopelit, jollaisia käytetään televisiovastaanottimen kanssa
4 9504300000 muut pelilaitteet, kolikoilla, seteleillä, rahakkeella tai sen kaltaisilla välineillä toimivat, muut kuin keilapelivarusteet
5 9504301000 joissa on näyttöruutu
6 9504303000 muut pelilaitteet

Greek
9500 ΠΑΙΧΝΙΔΙΑ ΓΙΑ ΠΑΙΔΙΑ ΚΑΙ ΕΝΗΛΙΚΕΣ, ΕΙΔΗ ΔΙΑΣΚΕΔΑΣΗΣ Ή ΑΘΛΗΤΙΣΜΟΥ. ΤΑ ΜΕΡΗ ΚΑΙ ΕΞΑΡΤΗΜΑΤΑ ΤΟΥΣ
1 9500000000 ΠΑΙΧΝΙΔΙΑ ΓΙΑ ΠΑΙΔΙΑ ΚΑΙ ΕΝΗΛΙΚΕΣ, ΕΙΔΗ ΔΙΑΣΚΕΔΑΣΗΣ Ή ΑΘΛΗΤΙΣΜΟΥ. ΤΑ ΜΕΡΗ ΚΑΙ ΕΞΑΡΤΗΜΑΤΑ ΤΟΥΣ
9504 Είδη για παιχνίδια συντροφιάς, στα οποία περιλαμβάνονται και τα παιχνίδια με κινητήρα ή μηχανισμό, τα σφαιριστήρια (μπιλιάρδα), τα ειδικά τραπέζια για παιχνίδια λεσχών και τα αυτόματα παιχνίδια τύπου μπόουλινγκ
2 9504000000 Είδη για παιχνίδια συντροφιάς, στα οποία περιλαμβάνονται και τα παιχνίδια με κινητήρα ή μηχανισμό, τα σφαιριστήρια (μπιλιάρδα), τα ειδικά τραπέζια για παιχνίδια λεσχών και τα αυτόματα παιχνίδια τύπου μπόουλινγκ
3 9504100000 Παιχνίδια βίντεο των τύπων που χρησιμοποιούνται μαζί με δέκτη τηλεόρασης
4 9504300000 Αλλα παιχνίδια που λειτουργούν με την εισαγωγή κέρματος, χαρτονομίσματος, μάρκας ή άλλων παρόμοιων ειδών, με εξαίρεση τα αυτόματα παιχνίδια τύπου μπόουλινγκ
5 9504301000 Παιχνίδια με οθόνη
6 9504303000 Άλλα παιχνίδια

APPENDIX VI. PROPOSALS AND DRAFTS FROM MAYBE PARTNERS

1. The gambling industry is changing into a legitimate entertainment with a positive outcome of stress relief and therefor on quality of lifeThe purpose of my study was to define a new accessible way of gambling that his main benefit is stress reduction.I have planned a new apparatus under two assumption: That Cellular phone is the best cost effective platform for positive psychological gambling e.g. gambling not for money, And the best method for it is biofeedback.The paper will describe the development of the technology of biofeedback that I did in order to assimilate biofeedback for a self-use in a cellular phone. Electrodes originally developed for biofeedback purposes were integrated into the structure of a cellular telephone. These electrodes constantly receive physiological signals from the fingers of the user. Inside the cellular phone, the signals are processed in real time.The games that it operates are based on the designing principals of therapeutic casino games in clinical biofeedback: The subject controls the game by his stress level. He can collect virtual points only when he reduces his stress levels. The new apparatus can supply the growing need for stress reduction entertainment in this era with a new positive way of gambling and by that empower the quality of life of wide populations.This new apparatus can also provides researchers and decision-makers a new technical base allowing them a new inductive definition of central concepts in gambling.

2. Among our typical main competence and solutions areas are:
Complex business logic web solutions, tough front- and back-end applications, e-transactions, e-payments, e-ordering, etc.
Comprehensive B2B and B2C solutions
Computer and network security
Interactive Internet based games (gambling, betting, Flash games, etc.)
WAP applications.

3. Multimedia, digital animation, AI techniques, Gaming, NLP aand smart interactive systems are some of the areas of expertise where technologies such as Java (including J2ME), XML, Linux, Prolog, databases (SQL and object based) would be used as delivery mechanism.

4. Mobile Applications, Digital TV Applications, Multimedia Software and Content Development, Education Technologies, Media ApplicationsEducational and Military Simulators, 3D Gaming.

5. The Future of Gaming

In our opinion,

Newtorking, distributed computing systems, artificial inteligence (AI), cryptology, e-commerce, e-payments, e-government and secret sharing systems, game theory and engineering for nagotiation or barganing (special attention to John Nash Economy Nobel Price equilibrium models for "The Barganing Problem") as well as any virtual reality technology for massively multiplayer gaming, fictional worlds, simulation, strategy and tactic training

Will provide soon

A new business environment, and industry and R&D and laboratories working in/for gaming-gambling

Useful for

Economy, science, tecnology for information society.

Please remember that we are open to partnerships with anyone expert or interested in Europe for

Please do not hesitate to make comments and proposals to E-mail: miguel@cita.es

For further information at any time call to Spanish cellular phone +34619776475