V-C EXEC QUESTIONED BY ISRAELI ENFORCEMENT OFFICIALS

12 January 2007

Online gambling executive detained for two hours

The CEO of the Victor Chandler Group, Michael Carlton was briefly detained by officials whilst on a visit to Israel, according to media reports surfacing as we went to press.

Details were sketchy, but it is understood that the officials questioned Carlton for almost two hours before allowing him to go, with the official euphemism that he had been "cooperating with the authorities." Given Carlton's professional position and the fact that the V-C group has been doing very well in Israel in opposition to state-controlled gambling services, it is not too much of a stretch to conclude that the *discussion* centred on Israel's gambling industry.

However, this is speculation in the absence of official statements from either party.

Industry sources said that Mr Carlton had been detained in Tel Aviv over an advertising campaign run by Victor Chandler on the side of Israeli buses.

Internet gambling and the advertising of the pastime are deemed illegal in the country, although this is believed to be the first time that anyone has been detained by the authorities.

The ban on internet gambling has not prevented Israelis from being among the leading lights in the industry. Empire Online and PokersStars are among a number of companies to be founded by Israeli nationals, who have made multimillion-pound fortunes.

Last year, Carlton was reported as saying: “The real problem in Israel is unfair competition from the government monopoly gambling board. The Israeli gambler is smart and knows he is getting a better deal from us. We return 92 percent of our income to punters, while on some products the Israeli government pays out just 42 percent of income.”

The incident follows what seemed to be intimidatory behaviour on the part of Israeli police officials (see previous InfoPowa reports) last month, when a senior police officer, Major General Yohanan Danino apparently backed by the AG warned online backgammon sites that in their opinion the activity was illegal and should cease, but no prosecutions have been launched and their opinion remains untested in a court of law.

Online Casino News courtesy of InfoPowa

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