Top Canada court upholds anti-terrorism law in unanimous ruling






OTTAWA (Reuters) – Canada‘s Supreme Court on Friday upheld an anti-terrorism law enacted after the September 11, 2001, attacks on the United States, ruling unanimously that those who choose to engage in terrorism must “pay a very heavy price.”


The law’s constitutionality was challenged by Mohammad Momin Khawaja, convicted in Canada of terrorism for involvement with a British group that had plotted unsuccessfully to set off bombs in London.






It was also challenged by two men accused of terrorism by the United States for trying to buy missiles or weapons technology for the Sri Lankan Tamil Tigers.


The court rejected arguments that the law’s definition of terrorism was overly broad. It upheld Khawaja’s life sentence and confirmed the orders to extradite the other two to the United States.


Khawaja, a Canadian of Pakistani descent, was the first to be convicted under the law. He was sentenced in 2008 to 10-1/2 years in prison, and his sentence was then extended to life after appeal by the government.


The trial judge noted that Khawaja referred to Osama Bin Laden as “the most beloved person to me in the … whole world, after Allah.” He was found to have participated in a terrorism training camp in Pakistan and to have designed a device dubbed the “hi fi digimonster” for detonating bombs.


“The appellant was a willing participant in a terrorist group,” Supreme Court Chief Justice Beverley McLachlin wrote in the 7-0 decision, adding that he was “apparently remorseless.”


“He was committed to bringing death on all those opposed to his extremist ideology and took many steps to provide support to the group. The bomb detonators he attempted to build would have killed many civilians had his plans succeeded.”


The law applies to any act committed for a political, religious or ideological purpose with the intention of intimidating the public by causing death or serious bodily harm, or substantial property damage, or causing serious interference with an essential service.


The court also ruled that Canada can proceed to extradite two men the United States has accused of involvement with the Tamil Tigers, which waged a bloody war for independence in Sri Lanka and is considered a terrorist organization by Washington and Ottawa.


The Canadian government declined to comment on when they would be extradited.


Piratheepan Nadarajah was alleged to have tried to purchase surface-to-air missiles and AK-47 assault rifles for the Tamil Tigers from an undercover officer posing as a black-market arms dealer on Long Island, New York.


The other man, Suresh Sriskandarajah, was alleged to have helped Tamil Tigers get electronic equipment, submarine and warship design software and communications equipment.


They surrendered to the government ahead of the court decision, their lawyers said.


BEYOND ‘LEGITIMATE EXPRESSION’


The court disagreed that the federal law’s terrorism provisions had put a chilling effect on Canadians’ freedom of expression and was disproportionately broad.


“Only individuals who go well beyond the legitimate expression of a political, religious or ideological thought, belief or opinion, and instead engage in one of the serious forms of violence – or threaten one of the serious forms of violence – listed (in the law) need fear liability under the terrorism provisions of the Criminal Code,” McLachlin wrote.


She quoted with approval the appeals court decision in the Khawaja case that faulted the Ottawa trial judge’s sentence for failing to send a “clear and unmistakable message that terrorism is reprehensible and those who choose to engage in it will pay a very heavy price.”


The original sentence of 10-1/2 years does “not approach an adequate sentence for such acts,” she concluded.


Khawaja’s lawyer, Lawrence Greenspon, said it was a “terrible day” for his client and said too often people were investigated or prosecuted for their religious or political beliefs.


“It’s a … very unfortunate ruling for minorities in this country, and we’re extremely disappointed with the result,” he told reporters in the foyer of the Supreme Court.


Justice Minister Rob Nicholson said the decision was important as Canada was not immune to the threat of terrorism. “The court sent a strong message that terrorism will not be treated leniently in Canada,” he said.


The cases are Mohammad Momin Khawaja v. Her Majesty the Queen. (Ont) (34103); Suresh Sriskandarajah v. United States of America, Minister of Justice and Attorney General of Canada (34009), Piratheepan Nadarajah v. United States of America, Minister of Justice and Attorney General of Canada (34013).


(Additional reporting by Louise Egan; Editing by Jackie Frank and Xavier Briand)


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Venezuela’s Chavez in satisfactory condition: government






CARACAS (Reuters) – Venezuela‘s President Hugo Chavez is recovering “satisfactorily” from his cancer surgery in Cuba although the process remains slow, Information Minister Ernesto Villegas said on Friday.


Reading the latest of regular government updates on the socialist leader’s condition, three days after his operation, Villegas said the 58-year-old president had communicated with relatives and sent greetings to all Venezuelans.






“The recovery has been slow but progressive,” he said.


(Reporting by Eyanir Chinea, Writing by Andrew Cawthorne; Editing by Daniel Wallis and Will Dunham)


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Amanda Bynes enters settlement in hit-and-run case






LOS ANGELES (AP) — Actress Amanda Bynes has resolved a misdemeanor hit-and-run case after entering into a civil settlement with other drivers.


Court records show Bynes entered a civil compromise to end the case and her attorney informed a Los Angeles court on Thursday. Bynes was charged with leaving the scene of accidents in April and August without providing the proper information.






Defendants in certain California misdemeanor cases are allowed to enter civil settlements to resolve criminal cases.


City Attorney’s spokesman Frank Mateljan (mah-tell-JIN’) says prosecutors objected to the dismissal, noting other instances in which Bynes has been cited for driving without a license and her pending driving under the influence case.


Bynes rose to fame starring in Nickelodeon’s “All That” and has also starred in several films, including 2010′s “Easy A.”


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Police, world wonder about Conn. shooting motive


NEWTOWN, Conn. (AP) — The massacre of 26 children and adults at a Connecticut elementary school elicited horror and soul-searching around the world even as it raised more basic questions about why the gunman, a 20-year-old described as brilliant but remote, would have been driven to such a crime and how he chose his victims.


Investigators were trying to learn more about the gunman, Adam Lanza, and questioned his older brother, who is not believed to have been involved in the rampage at Sandy Hook Elementary. Police shed no light on the motive for the nation's second-deadliest school shooting.


In tight-knit Newtown on Friday night, hundreds of people packed St. Rose of Lima church and stood outside in a vigil for the 28 dead — 20 children and six adults at the school, the gunman's mother at home, and the gunman himself, who committed suicide. People held hands, lit candles and sang "Silent Night."


"These 20 children were just beautiful, beautiful children," Monsignor Robert Weiss said. "These 20 children lit up this community better than all these Christmas lights we have. ... There are a lot brighter stars up there tonight because of these kids."


Lanza is believed to have suffered from a personality disorder and lived with his mother, said a law enforcement official who was briefed on the investigation.


Lanza shot his mother, Nancy Lanza, drove to the school in her car with at least three guns, including a high-powered rifle that he apparently left in the back of the vehicle, and shot up two classrooms around 9:30 a.m. Friday, law enforcement officials said, speaking on condition of anonymity.


A custodian ran through the halls, warning of a gunman, and someone switched on the intercom, perhaps saving many lives by letting them hear the chaos in the school office, a teacher said. Teachers locked their doors and ordered children to huddle in a corner or hide in closets as shots echoed through the building.


The well-liked principal, Dawn Hochsprung, was believed to be among the dead. A woman who worked at the school was wounded. An update on victims' identities was planned Saturday morning.


A law enforcement official speaking on condition of anonymity said investigators believe Lanza attended the school several years ago but appeared to have no recent connection to it.


At least one parent said Lanza's mother was a substitute teacher there. But her name did not appear on a staff list. And the official said investigators were unable to establish any connection so far between her and the school.


Lanza's older brother, 24-year-old Ryan Lanza, of Hoboken, N.J., was questioned, but a law enforcement official said he was not believed to have had a role in the rampage. Investigators were searching his computers and phone records, but he told law enforcement he had not been in touch with his brother since about 2010.


The officials spoke on the condition of anonymity because they were not authorized to discuss the unfolding investigation.


At one point, a law enforcement official mistakenly identified the gunman as Ryan Lanza. Brett Wilshe, a friend of Ryan Lanza's, said Lanza told him the gunman may have had his identification. Ryan Lanza apparently posted Facebook page updates Friday afternoon that read, "It wasn't me" and "I was at work."


For about two hours late Friday and early Saturday, clergy members and emergency vehicles moved steadily to and from the school. The state medical examiner's office said bodies of the victims would be taken there eventually for autopsies.


At least three guns were found — a Glock and a Sig Sauer, both pistols, inside the school, and a .223-caliber rifle in the back of a car, authorities said. A law enforcement official speaking on condition of anonymity said some of the guns used in the attack may have belonged to Lanza's family. His mother had legally registered four weapons, his father two.


Authorities also recovered three other guns — a Henry repeating rifle, an Enfield rifle and a shotgun. It was not clear exactly where those weapons were found.


Adam Lanza and his mother lived in a well-to-do part of prosperous Newtown, about 60 miles northeast of New York City, where neighbors are doctors or hold white-collar positions at companies such as General Electric, Pepsi and IBM.


Lanza's parents filed for divorce in 2008, according to court records. His father, Peter Lanza, lives in Stamford, Conn., and works as a tax director for General Electric.


The gunman's aunt Marsha Lanza, of Crystal Lake, Ill., said her nephew was raised by kind, nurturing parents who would not have hesitated to seek mental help for him if he needed it.


"Nancy wasn't one to deny reality," Marsha Lanza said, adding her husband had seen Adam as recently as June and recalled nothing out of the ordinary.


Catherine Urso, of Newtown, said her college-age son knew the killer and remembered him for his alternative style. "He just said he was very thin, very remote and was one of the goths," she said.


Adam Lanza attended Newtown High School, and several news clippings from recent years mention his name among the honor roll students.


Joshua Milas, who graduated from Newtown High in 2009 and belonged to the school technology club with him, said Adam Lanza was generally a happy person but that he hadn't seen him in a few years.


"We would hang out, and he was a good kid. He was smart," Joshua Milas said. "He was probably one of the smartest kids I know. He was probably a genius."


An official who spoke on condition of anonymity said it was not clear that Adam Lanza had a job, and there was no indication of law enforcement interviews or search warrants at a place of business.


The mass shooting is one of the deadliest in U.S. history, and among school attacks is second in victims only to the 2007 Virginia Tech massacre, which left 33 people dead, including the gunman. Reaction was swift and emotional in Newtown, a picturesque New England community of 27,000 people, as well as across the country and around the world.


"It has to stop, these senseless deaths," said Frank DeAngelis, principal of Colorado's Columbine High School, where a massacre in 1999 killed 15 people.


In Washington, the Coalition to Stop Gun Violence organized a vigil at the White House, with some protesters chanting, "Today IS the day" to take steps to curb gun violence. In New York's Times Square, a few dozen people held tea lights in plastic cups, with one woman holding a sign that read: "Take a moment and candle to remember the victims of the Newtown shooting."


President Barack Obama's comments on the tragedy amounted to one of the most outwardly emotional moments of his presidency.


"The majority of those who died were children — beautiful little kids between the ages of 5 and 10 years old," Obama said at a White House news briefing. He paused for several seconds to keep his composure as he teared up and wiped an eye. Nearby, two aides cried and held hands.


Australian Prime Minister Julia Gillard described the attack as a "senseless and incomprehensible act of evil."


"Like President Obama and his fellow Americans, our hearts too are broken," Gillard said in a statement.


In Japan, where guns are severely restricted and there are extremely few gun-related crimes, the attack led the news two days before nationwide parliamentary elections. In China, which has seen several knife rampages at schools in recent years, the attack quickly consumed public discussion.


At the Newtown vigil, Anthony Bloss, whose three daughters survived, said they are doing better than he. "I'm numb. I'm completely numb," he said.


The gunman entered the school through its front door, and authorities are looking into the possibility that he shattered glass next to it to get in, said Newtown Police Lt. George Sinko.


Panicked parents looking for their children raced to Sandy Hook, a kindergarten-through-fourth-grade school where police told youngsters to close their eyes as they were led from the building so that they wouldn't see the blood and broken glass.


Schoolchildren — some crying, many looking frightened — were escorted through a parking lot in a line, hands on one another's shoulders.


Robert Licata said his 6-year-old son was in class when the gunman burst in and shot the teacher. "That's when my son grabbed a bunch of his friends and ran out the door," he said. "He was very brave. He waited for his friends."


He said the shooter didn't utter a word.


Kaitlin Roig, a teacher at the school, said she implored her students to be quiet.


"I told them we had to be absolutely quiet. Because I was just so afraid if he did come in, then he would hear us and just start shooting the door. I said we have to be absolutely quiet. And I said there are bad guys out there now and we need to wait for the good guys to come get us out," Roig told ABC News.


"If they started crying, I would take their face and say it's going to be OK. Show me your smile," she said. "They said, we want to go home for Christmas. Yes, yeah. I just want to hug my mom, things like that, that were just heartbreaking."


___


Contributing to this report were Associated Press writers Pat Eaton-Robb and Matt Apuzzo and videographer Robert Ray in Newtown; Bridget Murphy in Boston; Samantha Henry in Newark, N.J.; Pete Yost in Washington; Michael Melia in Hartford; and the AP News Research Center in New York.


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UPDATE 3-Cricket-Hughes shines as Australia reach 299-4






* Hughes falls just short of century


* Clarke and Hussey combine for 101






* Welegedera takes 3-99 (Adds quotes)


HOBART, Dec 14 (Reuters) – Phil Hughes made a solid 86 on his return to test cricket before Michael Clarke and Mike Hussey took up the running and steered Australia to 299 for four at close of play on the first day of the first test against Sri Lanka on Friday.


Hughes was the only batsmen to fall in the final session, lasting only a couple of overs after lunch before being bowled through the gate by Chanaka Welegedera, giving the Sri Lankan seamer his third wicket of the day.


Clarke, who had made 70 not out, and Hussey, unbeaten on 37, batted through the remainder of the day and if the evidence of their prolific partnerships in the recent series against South Africa is anything to go by, will take some shifting.


“Overall, 299 for four puts the ball in our court,” said Hughes. “I thought we were outstanding today. It really gives us momentum going into tomorrow.”


Sri Lanka’s bowlers, dubbed this week as the worst pace attack ever to tour Australia by former test bowler Rodney Hogg, made life uncomfortable for the batsmen at times but struggled for any real penetration under cloudy skies at Bellerive Oval.


“I think we showed we can put Australia under pressure and hopefully the bowlers will be fresh in the morning and we can get them out for less than 100 additional runs,” said Welegedera, who finished with 3-99 on his return after nine months out injured.


Clarke, who passed 1,400 runs for the year, has now put on 731 runs in partnerships with Hussey in the last four tests and will be looking to plunder a few more on Saturday despite taking a couple of painful knocks to his legs.


Friday, however, belonged to Hughes.


The lefthander was recalled to the side on the back of good domestic form following the retirement of Ricky Ponting at the end of the series against the Proteas.


The 24-year-old reached his fourth test half century with a square drive for three runs and then initially accelerated towards a century, most notably with an ugly but effective slog for six off spinner Rangana Herath.


CALAMITOUS RUNOUT


On the ground where his second spell as a test batsman ended amid questions about his technique after two failures against New Zealand last year, Hughes scored eight fours and one six in his 166-ball knock before Welegedera struck with a superb ball.


“It was nice to get a few,” he said. “It would have been nice to get a few more and get into three figures.”


Australia had lost openers Ed Cowan (four) and David Warner in the opening session, the latter run out for 57 on the stroke of lunch after a calamitous misunderstanding with Hughes.


Shane Watson, dropping down to fourth in the batting order to allow Hughes to come in at number three, followed them to the pavilion for 30 shortly before tea, the victim of an exceptional diving catch in the slips by skipper Mahela Jayawardene.


That was a second wicket for Welegedera and a measure of redemption for the bowler after he had Hughes caught behind for 77 only for the umpire to call a no ball.


Welegedera had also made the early breakthrough for the tourists when Cowan tried to pull a short delivery only for the ball to catch him high on the bat and carry to mid-on where Shaminda Eranga took a simple catch.


It could have been even better for the Sri Lankans, who were only centimetres away from the perfect start to the morning after Clarke had won the toss and elected to bat.


Cowan edged the second delivery of the day from Nuwan Kulasekara to the slips but Angelo Mathews was just unable to get his hands to it, despite an athletic dive. (Editing by Peter Rutherford)


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Online gambling companies struggle to clear EU hurdles






LONDON (Reuters) – A partnership stuck on Friday between bwin.party Digital Entertainment and a Belgian casino group has defused one of many disputes pitting online gambling companies against governments across Europe.


The agreement came a month after bwin.party’s co-CEO was questioned by Belgian authorities in an escalating license dispute the company said was costing it 700,000 euros ($ 916,000) in monthly revenue.






By joining forces with Belcasinos, a unit of local casino owner Group Partouche, bwin.party neatly met a requirement to have a presence in Belgium to win a license for online poker, casino and sports betting.


The agreement is a rare bright spot in a tough regulatory environment for online gambling companies across the continent.


Betting online on sports events or playing poker on the Internet are increasingly popular pastimes in Europe, where operators say they are held back by unfair and discriminatory rules in many European Union countries.


“It is not a European Union in any way, it is a patchwork of different countries who happen to be in the EU,” said Professor Leighton Vaughan Williams, director of the betting research unit at Nottingham Business School in central England.


“Different countries have different vested interests and different ideas they are trying to promote. Are they trying to protect consumers or to maximize their tax take?” he said.


The 27 EU member states retain the right to regulate their gambling sectors as they see fit, but rules must comply with EU law, broadly meaning they must be consistent and proportionate.


Some companies are scaling back activities in European markets where, they say, regulatory risks are too high or tax rates are punitive.


Betting exchange operator Betfair for instance said this week it was halting marketing and investment in unregulated markets, including EU members Cyprus, Germany and Greece.


William Hill, Britain‘s largest bookmaker, has joined Betfair in pulling out of Greece and has also stopped offering sports betting to German residents because of a 5 percent turnover tax.


STAKES RISE


The stakes are high. Online gambling is growing at an annual rate of almost 15 percent in the EU and will be worth an estimated 13 billion euros ($ 17 billion) by 2015, according to EU figures.


The European Commission, the EU’s executive, stepped in to the debate in October when it published a medium-term plan to clarify regulations and promote cooperation between member states, ruling out EU-wide legislation for the time being.


“All citizens must be adequately protected, money laundering and fraud must be prevented, sport must be safeguarded against betting-related match-fixing and national rules must comply with EU law,” Internal Market and Services Commissioner Michel Barnier said, setting out his approach.


The online operators accuse the European Commission of failing to follow through properly on complaints lodged about regulation in no fewer than 20 or the 27 EU member states.


Barnier has written to member states accused of breaching EU law in the way they handle gambling, seeking an update on the situation by the end of the year.


However, the industry questions whether the EU will go into battle over gambling when it is facing so many other problems.


“They will chip away at some of the most blatant ones,” said Clive Hawkswood, chief executive of trade body the Remote Gambling Association. “What we really need is for them to take some to the European Court and take enforcement action.”


BRITISH TAXES


Gambling companies themselves have taken advantage of different tax regimes where they work in their favor.


This is illustrated in Britain, historically the biggest betting market in Europe and a place with a well-developed gambling culture where bookmakers have operated in town centers for 50 years.


In recent years, most betting companies have moved their British online betting operations to Britain’s overseas territory of Gibraltar. There they are sheltered from a 15 percent tax on gross profit faced by operators based in Britain.


New legislation will close off that loophole after 2014. The shift to a taxation model based on the location of the consumer was expected to cost gambling companies as much as 270 million pounds ($ 435 million) by 2016-17.


Analyst Nick Batram at brokerage Peel Hunt said smaller players would likely be picked off because of the impact of higher tax and regulatory burdens across Europe.


“It is getting more complicated and more expensive. There is more change afoot but it should ultimately play into the hands of the better-capitalized companies.”


In that vein, William Hill has provisionally agreed a 485 million pound takeover of smaller rival Sportingbet, keen to get its hands on the company’s regulated Australian betting business.


“I think there is a lot more M&A activity to come,” said Batram.


(Additional reporting by Rosalba O’Brien; Editing by David Holmes)


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Sally Struthers enters not guilty plea for DUI






YORK, Maine (AP) — Sally Struthers has entered a not guilty plea on charges she drove drunk in Maine, where she was performing in a musical.


The Portland Press Herald (http://bit.ly/XleJBq) reports the 65-year-old Struthers did not appear in York District Court on Thursday, and entered the plea through her lawyer.






Police arrested Struthers on Sept. 12 on U.S. Route 1 in the resort town Ogunquit (oh-GUHNG’-kwit). She was charged with criminal operating under the influence.


Struthers is best known for her role as Gloria Stivic in the 1970s TV sitcom “All in the Family.” She had been performing at the Ogunquit Playhouse in the musical “9 to 5.”


Struthers is scheduled to appear in court on Feb. 13 for a bench trial.


___


Information from: Portland Press Herald, http://www.pressherald.com


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US faces task of running dozens of health exchanges






WASHINGTON (Reuters) – Fourteen U.S. states and the District of Columbia so far have told the federal government they plan to operate healthcare exchanges under President Barack Obama‘s reform law, leaving Washington with the daunting task of creating online marketplaces for at least two-thirds of the country.


On the eve of a federal deadline for states to say whether they will run their own exchanges, a top U.S. healthcare policy official told lawmakers that the exchanges will start enrolling eligible families starting on October 1, 2013.






“I am confident that states and the federal government will be ready in ten months, when consumers in all states can begin to apply,” Gary Cohen, director of the Center for Consumer Information and Insurance Oversight, told a health oversight panel in the U.S. House of Representatives.


Cohen, whose agency is part of the U.S. Department of Health and Human Services (HHS), was among federal officials who testified alongside state health authorities at a hearing of the House Energy and Commerce Subcommittee on Health.


In written testimony, Cohen said 15 states have told the administration they will operate their own exchanges. He later explained under questioning that the count comprises 14 states and the District of Columbia.


Separately, HHS officials confirmed the count of 14 states but could not immediately explain why Cohen’s written testimony contained a higher number.


Some experts say the number of states planning to operate their own exchanges could reach 18 by the time the deadline arrives Friday. Still, the nonpartisan Kaiser Family Foundation, which tracks healthcare issues, says only two states – Utah and Florida – remain undecided.


That would leave at least 30 states in which the administration would be required to run exchanges, a challenge that is raising questions about how successfully U.S. officials can implement a key provision of the healthcare reform law, known to opponents and advocates alike as “Obamacare”.


“I don’t envy them for the job that they have,” said Dennis Smith, a former federal healthcare official who now heads health services in Wisconsin, a state that has decided not to pursue its own exchange.


“At the end of the day, you’re trying to connect a buyer to a seller. And the fundamental things required to do that are not yet in place,” he said.


The Patient Protection and Affordable Care Act, which Obama signed into law more than 2-1/2 years ago, is expected to extend health coverage to more than 30 million uninsured Americans. Those who enroll starting in October would be covered by insurance from January 1, 2014.


POLITICAL THEATER


About half of those newly insured individuals would purchase private coverage from online exchanges at federally subsidized rates. Ultimately, the number of people finding coverage through exchanges is expected to reach 26 million, according to the nonpartisan Congressional Budget Office.


The remainder would be covered by expanding the Medicaid program for the poor to cover all adults earning up to 133 percent of the federal poverty level, or about $ 15,000 for individuals and $ 30,600 for a family of four.


Thursday’s hearing provided a political stage for partisan rhetoric about Obama’s health reforms, which have survived repeated Republican repeal efforts, a nail-biting consideration by the Supreme Court and the Presidential election campaign.


Republicans and state officials from Republican-led states complained about compliance costs and accused HHS of delaying the release of vital details and rules needed to move forward on the exchanges and on the planned Medicaid expansion.


“The uncertain regulatory environment and the overall lack of response from HHS are not encouraging the states or the health plans to move forward,” said Representative Michael Burgess, a Texas Republican.


In response, Congressional Democrats and their state allies stressed the law’s benefits for senior citizens, protections for young adults and the sick, and the prospective economic benefits from an expected influx of billions of dollars in federal money.


“The (Republican) move now is to delay implementation under the guise of lack of information,” said Representative Frank Pallone, a New Jersey Democrat.


“The world in fact is not coming to an end,” he added. “The nation will be better because of the Affordable Care Act.”


States that don’t run their own exchanges would opt for one of two alternatives: a federally facilitated exchange that requires minimal state participation, or a federal partnership exchange in which states help by performing certain duties.


Kaiser Family Foundation expects six states to choose the partnership option and two dozen to opt for federally facilitated exchanges. Cohen said the count so far is four partnerships and seven facilitated exchanges.


States have until February 15 to say whether they intend to seek a federal partnership exchange. Four have done so already, Cohen said.


The administration will have to engineer an information technology system capable of processing operations in a way that meet the needs of healthcare consumers in different states.


Experts say the biggest challenge will likely be providing adequate customer service to handle enrollment, as well as fielding a technology system capable of interfacing seamlessly with the system of each state government.


Cohen told the panel the administration is building a website with interactive capabilities and a call center and has begun testing a data services hub to determine eligibility.


(Reporting by David Morgan; Editing by Ros Krasny, Jilian Mincer, Nick Zieminski and David Gregorio)


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Marijuana not a high priority, Obama says













President Obama says recreational users of marijuana in states that have legalized the substance should not be a "top priority" of federal law enforcement officials prosecuting the war on drugs.


"We've got bigger fish to fry," Obama said of pot users in Colorado and Washington during an exclusive interview with ABC News' Barbara Walters.


"It would not make sense for us to see a top priority as going after recreational users in states that have determined that it's legal," he said, invoking the same approach taken toward users of medicinal marijuana in 18 states where it's legal.


More of Barbara Walters' exclusive first joint, post-election interview with President Obama and first lady Michelle Obama airs tonight on "20/20" at 10 p.m. ET on ABC stations.


Obama's comments on marijuana are his first following Colorado and Washington voters' approval of Nov. 7 ballot measures that legalize the recreational use and sale of pot in defiance of federal law.


Marijuana, or cannabis, remains classified under the Controlled Substances Act as a Schedule I narcotic whose cultivation, distribution, possession and use are criminal acts. It's in the same category as heroin, LSD and "Ecstasy," all deemed to have high potential for abuse.






Official White House Photo by Pete Souza











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Obama told Walters he does not – "at this point" – support widespread legalization of marijuana. But he cited shifting public opinion and limited government resources as reasons to find a middle ground on punishing use of the drug.


"This is a tough problem, because Congress has not yet changed the law," Obama said. "I head up the executive branch; we're supposed to be carrying out laws. And so what we're going to need to have is a conversation about, How do you reconcile a federal law that still says marijuana is a federal offense and state laws that say that it's legal?"


The president said he has asked Attorney General Eric Holder and the Justice Department to examine the legal questions surrounding conflicting state and federal laws on drugs.


"There are a number of issues that have to be considered, among them the impact that drug usage has on young people, [and] we have treaty obligations with nations outside the United States," Holder said Wednesday of the review underway.


As a politician, Obama has always opposed legalizing marijuana and downplayed his personal history with the substance.


Obama wrote in his 1995 memoir, "Dreams from My Father," that he would smoke pot regularly with his high school buddies who formed a "club of disaffection." The group was known as the "Choom Gang," says Obama biographer David Maraniss.


"There are a bunch of things I did that I regret when I was a kid," Obama told Walters. "My attitude is, substance abuse generally is not good for our kids, not good for our society.


"I want to discourage drug use," he added.


While the administration has not prioritized prosecutions of marijuana users and small-scale distributors in states where it's legal, it has not ceased prosecutions altogether. The Justice Department has continued raids on pot providers – including in states where they are legal – in an approach that experts say is more aggressive than Obama's predecessor, George W. Bush.


"I never made a commitment that somehow we were going to give carte blanche to large-scale producers and operators of marijuana – and the reason is, because it's against federal law," Obama told "Rolling Stone" in an interview earlier this year.






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Online gambling companies struggle to clear EU hurdles






LONDON (Reuters) – A partnership stuck on Friday between bwin.party Digital Entertainment and a Belgian casino group has defused one of many disputes pitting online gambling companies against governments across Europe.


The agreement came a month after bwin.party’s co-CEO was questioned by Belgian authorities in an escalating license dispute the company said was costing it 700,000 euros ($ 916,000) in monthly revenue.






By joining forces with Belcasinos, a unit of local casino owner Group Partouche, bwin.party neatly met a requirement to have a presence in Belgium to win a license for online poker, casino and sports betting.


The agreement is a rare bright spot in a tough regulatory environment for online gambling companies across the continent.


Betting online on sports events or playing poker on the Internet are increasingly popular pastimes in Europe, where operators say they are held back by unfair and discriminatory rules in many European Union countries.


“It is not a European Union in any way, it is a patchwork of different countries who happen to be in the EU,” said Professor Leighton Vaughan Williams, director of the betting research unit at Nottingham Business School in central England.


“Different countries have different vested interests and different ideas they are trying to promote. Are they trying to protect consumers or to maximize their tax take?” he said.


The 27 EU member states retain the right to regulate their gambling sectors as they see fit, but rules must comply with EU law, broadly meaning they must be consistent and proportionate.


Some companies are scaling back activities in European markets where, they say, regulatory risks are too high or tax rates are punitive.


Betting exchange operator Betfair for instance said this week it was halting marketing and investment in unregulated markets, including EU members Cyprus, Germany and Greece.


William Hill, Britain‘s largest bookmaker, has joined Betfair in pulling out of Greece and has also stopped offering sports betting to German residents because of a 5 percent turnover tax.


STAKES RISE


The stakes are high. Online gambling is growing at an annual rate of almost 15 percent in the EU and will be worth an estimated 13 billion euros ($ 17 billion) by 2015, according to EU figures.


The European Commission, the EU’s executive, stepped in to the debate in October when it published a medium-term plan to clarify regulations and promote cooperation between member states, ruling out EU-wide legislation for the time being.


“All citizens must be adequately protected, money laundering and fraud must be prevented, sport must be safeguarded against betting-related match-fixing and national rules must comply with EU law,” Internal Market and Services Commissioner Michel Barnier said, setting out his approach.


The online operators accuse the European Commission of failing to follow through properly on complaints lodged about regulation in no fewer than 20 or the 27 EU member states.


Barnier has written to member states accused of breaching EU law in the way they handle gambling, seeking an update on the situation by the end of the year.


However, the industry questions whether the EU will go into battle over gambling when it is facing so many other problems.


“They will chip away at some of the most blatant ones,” said Clive Hawkswood, chief executive of trade body the Remote Gambling Association. “What we really need is for them to take some to the European Court and take enforcement action.”


BRITISH TAXES


Gambling companies themselves have taken advantage of different tax regimes where they work in their favor.


This is illustrated in Britain, historically the biggest betting market in Europe and a place with a well-developed gambling culture where bookmakers have operated in town centers for 50 years.


In recent years, most betting companies have moved their British online betting operations to Britain’s overseas territory of Gibraltar. There they are sheltered from a 15 percent tax on gross profit faced by operators based in Britain.


New legislation will close off that loophole after 2014. The shift to a taxation model based on the location of the consumer was expected to cost gambling companies as much as 270 million pounds ($ 435 million) by 2016-17.


Analyst Nick Batram at brokerage Peel Hunt said smaller players would likely be picked off because of the impact of higher tax and regulatory burdens across Europe.


“It is getting more complicated and more expensive. There is more change afoot but it should ultimately play into the hands of the better-capitalized companies.”


In that vein, William Hill has provisionally agreed a 485 million pound takeover of smaller rival Sportingbet, keen to get its hands on the company’s regulated Australian betting business.


“I think there is a lot more M&A activity to come,” said Batram.


(Additional reporting by Rosalba O’Brien; Editing by David Holmes)


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