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  Gambling News - March 2, 2006  

New Role at Magna Entertainment Raises Eyebrows

In a highly controversial move, Maryland Jockey Club chief Joe DeFrancis has been announced as the new head of electronic operations at Magna Entertainment. The appointment comes at a time when the U.S. is preparing its response to a WTO ruling requesting the government clarify its position toward offshore online gambling operators by April 3, 2006. The WTO case was originally brought against the U.S. by Caribbean nations Antigua and Barbuda, claiming the government’s anti-gambling policies were discriminatory in nature.
Industry insiders say that news of Joe DeFrancis’ new role could be seen as hypocritical considering that the WTO has requested information on U.S. horse-racing policies. The U.S. has attempted to ban offshore gambling operators for moral reasons, but has permitted national online horse-betting activity to date.
The decision has also raised questions of impartiality given Magna’s associations in the industry. The firm will run its betting channels exclusively through a new company called PariMax. Parimax owns a horse-racing television channel, an international online betting agency called MagnaBet and RaceON TV, a live television station that broadcasts races from Magna racetracks. The company owns a second online betting and phone service called XpressBet. Parimax management is also responsible for Magna's 30 percent shareholding in another betting company AmTote International.

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