PartyFounder Pleads Guilty

This story keeps getting more interesting.

So, the deed has been done. PartyGaming co-founder Anurag Dikshit yesterday agreed to plead guilty and has forfeited $300 million.

So, what is interesting about this?

Well...

First of all, he is paying $300 million!!! Holy crap! According to the Financial Times, he's paying $100 million immediately, another $100 million in three months, and a final $100 mill by September 30, 2009.

Secondly, his sentencing is not scheduled until after his final payment. By then, he will be at the mercy of a likely pro-gaming administration and will have had forfeited $300 million. So, I don't think he's going to see any jail time.

Thirdly, Party's stock jumped by about 35% since the news of this deal broke the other day. Since Dikshit owns 27% of the stock, my my back-of-the-napkin calculation tells me that he's already made about $60 million back from his $300 million "investment". And if this deal ever allows Party back into the US market, this deal will be one of the sweetest on record.

Finally,... [More]

PartyGaming Founder to Cut a Deal with the DoJ?

Now this is interesting on many levels.

According to the Financial Times, PartyGaming's co-founder, Anurag Dikshit, will take his money and his unfortunate surname to New York today to cut a deal with the Department of Justice.

The article claims that while no plea bargain has been arranged, there is a deal in place where Dikshit will agree to pay $300 million.

What? This is an insane story.

First of all, why in the world would Dikshit want to make a deal now, when all indications point to a more gambling-friendly environment once the new Obama administration takes control in only five weeks?

Furthermore, why would he go into this agreement without a plea bargain, risking actual jail time?

There is definitely more to this story than is being reported right now. Frankly, this whole situation reeks of behind-the-scenes pressure being applied by US authorities in unmentionable ways.

Otherwise, why whouldn't Dikshit wait a mere month to cut his deal if he wasn't being pressured with some sort of "deal with us now, or else you will regret it" kind of proposal? The DoJ obviously has something to hold over his head to force him into this right now.

Either way, this situation - and the fa... [More]

Is Mobile Betting taking off?

I just saw this press release from Juniper Research... Mobile Betting to Hit $3.6bn in 2009, Beating Global Recession.

Well, it took long enough, but it looks like mobile betting is finally going to happen.

All I can say is, "It's about goddamned time!"

Having been in the sports gambling industry now for well over a decade, I can not tell you how many times I have been told that I need to prepare for the mobile betting boom.

In fact, we here at Covers have probably introduced at least five different mobile platforms and products over the years, and not one of them has really been a hit.

Even as I write this, it is still possible for you to download Covers Mobile, which I happen to think is a nifty little application for phones. It's been out there for about a year and probably needs a bit of polish but it works great on my Blackberry. I am probably the only person in the universe who uses it regularly, but it has also come in handy on many occasions.

But while that was a nice plug, it is not the reason for this post.

No, my point is that Juniper Research seems to think that mobile betting might actually be about to take off.

The question is: Why now?

Frankly, I didn't feel like ... [More]

Washington Post completes the online poker investigation

Anybody following the public de-pantsing of the online poker industry can continue following it at the Washington Post.

Last night, 60 Minutes televised its report outlining the basic dirtiness surrounding the cheating scandals at Absolute Poker and UltimateBet.

That investigation was a partnership between CBS and the Washington Post.

So it comes as no surprise that WaPo has completed the circle this weekend with a very in-depth discussion of the scandal, as well as including background information about the Kahnawake reserve.

While a lot of the WaPo report is a rehash of the 60 Minutes piece, of particular interest is the discussion about the pros and cons of regulating the online gambling industry in America, titled Prohibition vs. Regulation Debated As U.S. Bettors Use Foreign Sites.

For anybody wondering how, if, or why online regulation could happen in America, this is a must-read.

Kudos to the Washington Post for bringing this story to the forefront.

Ouch! 60 Minutes Hammers Online Poker

All things considered, it was a very fair report. There is no other way to look at it.

Last night's 60 Minutes covered online poker's worst moment in full detail, from the popularity, to the insider cheating, to the lack of punishment.

It was cold hard truth.

And for many online gamblers, it really was a wake-up call. There are literally millions of online poker players - and their spouses - and I'm sure that this report shocked more than a few of them. And that is why this report was necessary.

For me, the scariest part is when the Kahnawake grand chief is asked why they didn't suspend the licenses of the companies involved, and he answers, "Well, they were afraid that if that was happened and the rug was pulled out from under them, so to speak, that the players wouldn't be paid."

Excuse me?

Exactly what kind of gaming commission are you if you can't even ensure that cheated players will be paid? Apparently, companies licensed in Kahnawake are not required to post bonds or deposits ensuring that they can pay all players.

That, in itself, is pretty scary. Protecting player deposits is assumed to be the first priority of any gaming commission. That does not appear to be so in Kahnawake.

Now, over the last decade 60 Minutes has covered online gambling fairly positively s... [More]