Thursday, March 22, 2007

Online casinos have conquered the world, and Turkey is no exception. It has
been determined that approximately $ 2 million is spent on online gambling
through credit card transactions in Turkey. Turkish authorities, however,
were not happy with the spread of online gambling in the country and the
Government decided to stop its citizens from accessing and playing on online
gambling sites. Accordingly, the Administrative Regulation prepared by the
Turkish National Lottery Administration on the Prohibition of Organizing and
Marketing Online Gambling ("Regulation") entered into force on 14 March
2006. Under Article 1 of the Regulation, the aim of the Regulation is to
prohibit the organization and marketing of games of chance in virtual media
such as computers, internet, interactive TV, mobile phone and similar
information environments. The advertising of interactive gambling services
is also prohibited under Article 5 of the Regulation. The purpose of the
Regulation is not only to prohibit Turkey-based interactive gambling
services being provided to customers in Turkey but also to prevent the
ability of people resident in Turkey to access online gambling sites located
overseas. In this context, illegal gambling activities will be followed-up
and inspected by the Presidency of the Department of Games of Chance.
Pursuant to Article 6 of the Regulation, the Presidency of the Department of
Games of Chance will prepare examination reports concerning real persons or
legal entities that are domiciled in Turkey or in a foreign country and
organizing or marketing gambling in virtual media. The report will include
the addresses of the virtual media and all related information regarding
such entities in detail. Based on this report, the Department of Law of the
National Lottery Administration will apply to the authorized court for
cessation of the access provided by internet service providers (ISP) to
these websites and seek punishment of the illegal acts. In the event this
request is upheld by the court, the Legal Department of the National Lottery
Administration will notify the decision to the Telecommunication Authority
in order to provide the enforcement of the legal order.

Before this Regulation came into force, no specific law related to online
gambling in Turkey existed. As a result, an increasing rate of online
gambling occurred in Turkey over the past few years. Although the National
Lottery's efforts are expected to decrease online gambling, there are
certain factors that may frustrate attempts to prohibit online gambling. For
instance, internet technology renders prohibition practically futile. The
internet makes it easier to encrypt messages, to change addresses, and to
send and receive messages anonymously. In contrast to the quasi-public and
monolithic postal system, the internet relies on thousands of separate and
wholly owned private service providers to carry out its deliveries.
Providers may simply refuse to cooperate by claiming that it is impossible
to discriminate between illicit gaming information and other internet
traffic.

In addition, principles of national sovereignty will prevent Turkey from
forcing other countries to enforce a ban on online gambling. Turkish
authorities already admitted that they cannot stop overseas gaming
operations because Turkey does not have jurisdiction over the people abroad
who are dealing with online gambling. Consequently, both practical and legal
barriers prevent any domestic ban on online gambling from having
international effect.