Gen. Haji Abubaker Jeje Odongo, the Minister of Foreign Affairs in Uganda, said that the government has launched an investigation into reports that officials at the Ugandan Consulate in Dubai, United Arab Emirates, are operating a casino and gambling facility, which is contrary to established diplomatic norms.

He made this revelation during a plenary sitting, responding to a concern raised last week by Muwada Nkunyingi (Kyadondo East), who asked the government to clarify social media reports alleging that Uganda had turned its consulate into a gambling hub.

“The allegations of turning a diplomatic facility into a casino are very serious. These claims touch on the misuse of a diplomatic facility against established diplomatic practices as per the Vienna Convention. They also raise questions about the trust and integrity of individuals and the critical matter of diplomatic relations between countries,” said Minister Jeje.

The Minister added, “Given the seriousness of these allegations, the Government of Uganda has taken a firm stance and instituted investigations. Since these investigations are ongoing, I am constrained in what I can say as it might jeopardize the investigation. I therefore request to make a full statement once the investigations are concluded.”

Before the Minister’s statement, Medard Sseggona (Busiro East) expressed concern about the decision to address such a sensitive matter in Parliament, questioning whether proper consultations were made regarding the implications of these allegations on Uganda’s diplomatic ties with the United Arab Emirates.

“I am concerned whether before including this matter on the order paper, consultations were made with those knowledgeable in diplomatic law. Considering the importance of this diplomatic mission and the services it provides, did you fully consider the implications of discussing such allegations publicly?” Sseggona questioned.

Sseggona highlighted the potential diplomatic repercussions of an open debate, especially given the recent report from the Ministry of Finance indicating that Uganda’s export earnings in May 2024 amounted to USD 891.97 million, a 39.4 percent increase from April 2024. The United Arab Emirates significantly contributed to this growth, particularly through gold purchases.

The report highlighted that the Middle East was the largest destination for Uganda’s exports, accounting for 34.0 percent of total exports in May 2024, with the UAE purchasing goods worth USD 297.65 million.

According to the UAE Ministry of Foreign Affairs, Uganda established diplomatic relations with Dubai in 2007, opening its embassy in Abu Dhabi the same year. The UAE embassy was opened in Kampala in 2011. The trade relations between Uganda and the UAE are strong and strategic, with the UAE serving as a key trade partner linking Uganda to the Middle East and acting as an important hub for transiting Ugandan goods globally.

Gambling is illegal in the UAE under Federal Penal Code Article 414, which is based on the Quran and forbids gambling practices, including operating a gambling venue or participating in unlawful games of chance. However, in September 2023, the UAE introduced a new regulatory body, the General Commercial Gaming Regulatory Authority (GCGRA), to oversee commercial gaming, creating a regulatory framework for a national lottery and commercial gaming.

SiGMA East Europe?Summit powered by Soft2Bet, happening in Budapest from 2 – 4 September.

In Indonesia, the Ministry of Communication and Information, Kominfo, has announced the closing of 32 sites that provided conversion of mobile credit into cash, and that were related to online gambling activities.

Minister of Communication and Information Budi Arie Setiadi?explained that this action was taken to prevent and limit online gambling activities. "The blocking takes effect today. We have zero tolerance for online gambling, and all parties must unite in combating this illicit activity," he asserted at the Kominfo Office in Central Jakarta on Thursday, 8 August 2024.

The access shutdown targeted 32 Electronic System Providers (PSEs), of which only one, Boss Pulsa, was officially registered. The other 31 PSEs were operating without the required registration, despite legal mandates that all PSEs offering or trading goods and services must be officially registered. Indonesian legislation allows for access termination if a service is suspected of facilitating the conversion of mobile credit into money used for online gambling transactions.

“Kominfo also urges financial institutions, including banks, to actively participate in the fight against online gambling,” Minister Budi Arie stated. On August 7, Kominfo announced its partnership with the Financial Services Authority (OJK), Bank Indonesia (BI), and the Financial Transaction Reporting and Analysis Center (PPATK) to prevent the misuse of payment and banking systems for online gambling transactions.

Kominfo's strategy to fight illegal gambling is built upon six key pillars:

• The drafting of a Presidential Instruction on the Prohibition and Eradication of Online Gambling that will serve as the legal foundation for addressing online gambling platforms.
• Blocking of free Virtual Private Networks (VPNs) proven to be used for accessing online gambling sites.
• Strengthening policies on terminating Network Access Providers (NAP) from Cambodia and the Philippines.
• Issuing warnings and orders to digital platforms to control the Domain Name System (DNS) used for online gambling.
• Limiting pulse transfers to a maximum of IDR 1 million (approximately $62) per day, except for authorised agents.
• Conducting audits on PSEs potentially involved in online gambling, with the threat of revoking their registration if they fail to comply.

According to Minister Budi Arie, online gambling affects both the social and economic well-being of lower-income segments of society.

"Online gambling disrupts the social and economic conditions of small households, leading to increased crime, divorce rates, and child malnutrition," he explained.

"According to data from PPATK, 80% of online gambling participants come from low-income communities, who are often victims of the system. This is why our literacy and educational efforts are focused on raising awareness about the dangers of online gambling. It won't bring wealth; instead, it will lead to further hardship and misery for those involved," Minister Budi Arie added.

Sponsorship of football and other sports has always carried a lot of controversy and therefore it is not a surprise that sports sponsorship by gambling companies is being discussed and scrutinized so avidly. Nonetheless the most intriguing quote on sports sponsorship in today’s Financial Times is not related to gambling companies. Instead, it comes from an employee of an established bank in Italy. A Monte dei Paschi bank executive is quoted saying, “When we pulled the sponsorship of the football team and basketball team, we received death threats.”

Monte dei Paschi Bank began sponsoring the Italian football club AC Siena in 2007. This partnership lasted until 2013, during which the bank’s logo was prominently displayed on the team’s jerseys and other promotional materials. The financial backing from MPS helped AC Siena to compete at higher levels, attracting better players and enhancing the club’s infrastructure.

In basketball, Monte dei Paschi Bank sponsored the Mens Sana Basket Siena, also known as Montepaschi Siena. It began in 2000 and continued until 2014. This period marked a golden era for the team, which won multiple Italian championships and gained significant recognition in European competitions. The financial support from MPS was crucial in building a team that dominated the Italian basketball scene, winning five consecutive Serie A titles from 2007 to 2011. The sponsorship also helped the team to secure top-tier talent and improve its training facilities, contributing to its sustained success.

The Financial Times has featured an extensive article on Banca Monte dei Paschi di Siena SpA, the world’s oldest bank, based in Siena. The article explores the rich history and recent developments of this historic institution, which has been a part of the Italian banking sector for centuries. Founded in 1472, Monte dei Paschi di Siena has weathered numerous economic storms and controversies and continues to play an active role in Italy's financial sector.

The death of David Rossi, the head of communications at Monte dei Paschi di Siena, is one of the most controversial and tragic incidents in the bank’s history. On 6 March, 2013, Rossi was found dead beneath an open window at the bank’s headquarters in Siena. Initially ruled a suicide, his death has been surrounded by suspicion and controversy.

Rossi’s body was discovered below his office window at Rocca Salimbeni, the historic headquarters of MPS. He had reportedly been under significant pressure due to ongoing investigations into the bank’s financial dealings. The initial conclusion of suicide was quickly questioned as several inconsistencies and unanswered questions emerged. Surveillance footage showed a man walking past Rossi’s body shortly after the fall, raising doubts about the initial conclusions and suggesting that there might be more to the story.

In 2022, new evidence prompted authorities to reopen the investigation. This included video footage suggesting that Rossi’s death might not have been a suicide. The case remains one of the most mysterious and debated incidents in the bank’s history, highlighting the intense pressures and complexities surrounding MPS during its financial crisis. The ongoing investigations and public interest in the case continue to keep it in the spotlight.

As of this year, Monte dei Paschi di Siena is undergoing significant restructuring. The bank has been working to improve its financial health and stability after facing severe financial difficulties in the past decade. Recent efforts have focused on reducing the cost-to-income ratio, improving asset quality, and increasing profitability. MPS has successfully issued several bonds and improved its credit ratings. Additionally, the bank has committed to further disposals and capital increases to meet regulatory requirements and secure investor confidence. These efforts are part of a broader strategy to ensure long-term sustainability and growth.

Stay in the loop with the latest updates for the SiGMA East Europe Summit in Budapest from 2-4 September powered by Soft2Bet

Austria's Supreme Court has ordered a woman to return a portion of her winnings to an unlicensed online gambling operator. According to Austria’s strict gambling regulations, both players and operators can be held accountable for participating in unauthorised gambling activities.

Austria operates a highly regulated and monopolised gambling market. Any other gambling platforms targeting Austrian players are deemed illegal.

In 2021, a Supreme Court ruling declared that contracts with foreign, unlicensed operators were invalid, allowing players to seek refunds for their losses.

This decision led to numerous lawsuits against foreign operators such as 888 (now Evoke) and William Hill, with players seeking to recover money lost while gambling on these platforms.

However, the latest ruling introduces a new dimension to these legal battles, allowing operators to counterclaim against players.

The recent case involved an Austrian woman who had won €7,162 from an unlicensed Malta-based operator between May and July 2020.

According to the Austrian newspaper Der Standard, the player sought to recover her gambling losses from the online casino Bet365. In response, Bet365 sued to reclaim approximately €7,000 in winnings. While the Donaustadt District Court initially sided with the player, the Supreme Court has overturned this decision, ruling in favor of Bet365 and ordering the player to return €626.60 to cover the operator’s legal fees.

The Supreme Court has ruled that contracts with illegal online casinos are "entirely null and void," necessitating their cancellation in both directions.

Without this mutual annulment, gamblers could reclaim their losses while retaining their winnings, effectively allowing them to "engage in prohibited gambling with impunity." The primary goal of this legal prohibition is to minimise the appeal of participating in illegal games of chance. By requiring players to return their winnings, the law effectively reduces this incentive.

The court also noted that the player had ignored betting limits, which contributed to its decision to avoid setting a precedent that might encourage others to contest their losses in similar situations.

The court clarified that its ruling was not intended to protect the interests of the unlicensed operator but rather to uphold the integrity of Austria’s gambling regulations.

“A one-sided option for players to reclaim their losses would make it even less worthwhile for operators to offer prohibited games on the market. However, if the operator can also reclaim the illegally paid-out winnings, it will deter players from gambling with such operators,” explained the judge.

This ruling could have far-reaching implications, particularly in other European countries with similar legal disputes. For instance, Germany is currently dealing with a case that questions whether sports betting operators should refund players for losses that occurred before the country had regulated the market. The case has been referred to the European Court of Justice (ECJ), which could influence similar cases across Europe.