This is not an empty threat

"This is not an empty threat."

Those were the words uttered by UK culture secretary Andy Burnham during debate in the UK Parliament. He was speaking about the UK gambling industry's less-than-unanimous support for the industry's voluntary levy to support problem gambling.

Earlier this week, we posted about how the UK gambling industry was not honoring its voluntary obligations, and commented on how this was not only an ethical issue, but it was also a stupid business decision.

Well, Mr. Burnham was equally outraged at the situation and he used the opportunity to remind the non-paying operators that their status as non-contributors will be reviewed the next time their licenses are assessed.

Good for you, Mr. Burnham.

More Congressional support for online gambling in the US

There is fantastic news coming from Congressman George Miller (D-CA), who has signed on as a co-sponsor of Barney Frank's Internet Gambling Regulation and Enforcement Act.

Miller is a great co-sponsor, since he is also the chairman of the House Democratic Policy Committee, the body which works to form the policies of the Democratic Party.

This is important stuff. Not just a small step, but a huge one.

If this issue could become an official policy item of the Democratic Party, then it is conceivable that it could pave the way for having legalized online gambling as part of the official Democratic platform.

Wow. Think about that.

Yes, it's a long way from reality, but this move by Miller definitely shows that the legalized online gambling movement is gaining momentum - at least with the Democrats.

And with that in mind...

Perhaps the most famous saying in the world of gambling is, "Put your money where your mouth is." Well, Barney Frank and George Miller are doing just that -  on your behalf.

I don't care if you are normally apolitical, or even if you have tended to support conservative causes in the past. I don't even care if you have some sort of aversion to left-handed gay Jews, which is how Barney Frank lik... [More]

Poker playing university students hope to hit it big

A surprisingly well-balanced story appeared this morning in the Vancouver Sun.

The story concerns the amazing popularity of online poker at local universities, with one student claiming there are "thousands of players" at his university.

The story refreshingly doesn't concern itself deeply with the social and moral implications of students gambling online. We'll wait and see what kind of response this story provokes from the public. I'm willing to bet tomorrow's opinion section will be riddled with shocked and outraged responses.

I suspect the reason why the story is so positive is most likely because the reporter was unable to find any students who have been negatively affected by online poker. It's tough to go negative when the people you are interviewing are not only having fun and apparently not suffering financially (the article doesn't say), but are actually finding employment from the craze.

Personally, I'm not a huge fan of students wasting their time gambling when they should be studying, but if they weren't doing this they'd probably be spending all of their time playing Guitar Hero anyway.

But consider this story to be a sign of the times. People, even college students, CAN entertain themselves relatively harmlessly by gambling online. I am assuming that these students are all old ... [More]

Republican Senators lining up against UIGEA

Senators John Sununu (R-N.H.) and Pete Domenici (R-N.H.) have sent a letter to the U.S. Treasury Department and the Federal Reserve System criticizing the Unlawful Internet Gambling Enforcement Act.

The two are unfortunately less concerned about the oppressive nature of the law than they are about its enforceability and the added burden it puts on banks.

But at this put, we'll take whatever we can get.

So let's add this up:

• We've got Barney Frank pushing a bill against the UIGEA.
• We've got the state of California looking at skirting the UIGEA for it's own online poker purposes.
• We've got Bloomberg shutting down the OTB in New York.
• We've got Republican senators complaining about the UIGEA's many problems.

Isn't it about time the government realized that the nation is stuck with an antiquated gambling model that just doesn't work anymore?

It's time to scrap the UIGEA and embrace online gambling.

Are UK gambling companies paying their dues?

Anybody who reads this blog knows where we stand on the issue of gambling.

In short, we believe that gambling, when done responsibly, can be a form of entertainment no more or less harmful than going to the pub for a few drinks or spending a wad of cash at a nice restaurant.

In this model, which we like to call Gambling 2.0, responsible people entertain themselves by risking a bit of their expendable income in the form of games or wagers. When the system works, the industry creates jobs and revenues generated from gambling goes towards positive social causes such as fighting poverty.

But the key is responsibility. If the gambling companies get greedy, then things can really go sour.

If the public gets the sense that the gambling industry is creating more problems than it is solving, by taking advantage of the weak and not giving back, then the entire model falls apart. Nothing fuels anti-gambling sentiment more than seeing unadulterated greed.

And frankly, I'm getting concerned about the lack of foresight being exhibited by some UK gambling companies.

According to this article, only 13% of UK gambling companies have paid the voluntary nominal industry levy t... [More]

The opposite problem in Missouri

This would be funny if it wasn't so sad.

First, we have a story coming out of Massachusetts, where the state wants more casinos, and the local communities are fighting back.

Now, we have this story coming out of Missouri. Here's the quick hit: They already have lots of casinos in the Kansas City area. The city ain't getting any bigger. One of the local communities wants its own casino. Other people say, "Why?" That about sums it up.

You might ask why I find this so amusing.

Well, I find it funny that the people from a traditional blue state, Massachusetts, are fighting so hard against allowing people the basic right to spend their money the way they want, while in Missouri - the home of the most anti-online gambling office of the DOJ - the people are arguing for more gambling options.

The only way to solve this issue, and many more, is to allow the free market to decide. Once you allow some types of gambling in some areas, it gets real hard to justify not allowing other types in other areas.

Massachusetts gearing up for a casino fight

The state of Massachusetts is looking at dropping no less than three land casinos into their state, including one located near Palmer, which is between Boston and Springfield.

Unfortunately for them, it looks like groups are lining up to stop the development before it begins.

Not only are these groups concerned about the change in the their local community, but they also aren't afraid to play the moral card as well. One such group, called Casino Free Mass, has a talking points section of their website that appears dedicated to dispersing cherry-picked nuggets of mis-information about the perils of gambling.

But I'm not here to argue with their points - if they don't want the jobs, tourism, and economic development in their community, so be it.

I'm just going to make a suggestion of something that might, just might, acheive everybody's goals... what about if Massachusetts opened up some online casinos?

Then, not only would the people of Palmer not have to suffer the evil of economic development, but with all of the advanced protections provided by online gambling, not nearly as many people in the community would be negatively affected.

Finally, it would allow the adults of Massachusetts to spend their own money as they see fit and help fun... [More]

Poker Player Alliance spends big on lobbying

According to this AP report, the Poker Player Alliance (PPA) spent $900K lobbying the government to exempt poker from the UEIGA last year, including nearly $800K in the second half of 2007 alone.

They obviously are persuing the angle of having poker exempted, rather than having the UEIGA repealed.

While I applaud the PPA's stance of putting its money where its mouth is, I hope their effort doesn't succeed at the cost of all other potential options.

Sure, it would be great to have poker exempted, but what about the 20 or so other forms of online gambling that the UEIGA is oppressing?

Should the PPA's lobby effort be successful and online poker becomes exempt, I can see this shaking down a couple of ways...

- In one scenario, the lawmakers could view the flawed UEIGA as "fixed", and future ammendments would become harder and harder to get passed.

- In contrast, another scenario would see the UEIGE, then with even more carve-outs, become viewed as nothing more than a flimsy loophole-ridden document that is unenforceable.

Either way, this story is proof that the time is now for the rest of the online gambling industry to get it's collective butt in gear to start funding its own lobbyists, because the PPA's goals don't necessarily coincide with everybody else's.

C'mon, online casinos and sportsbooks!... [More]

Poker player takes on the state of Washington

Washington State has a date in court with Lee Rousso, a poker playing attorney who is challenging the constitutionality of the state's ban on online poker.

In March 2006, Washington State passed a law that put online gambling in the same class of crime as child porn or illegal abortions. This was mainly a revenue-driven exercise as the state was more concerned about protecting their own in-state gambling operations than protecting anybody.

Rousso launched his challenge lasy July and after months of the usual time-wasting that can only happen in a courtroom, he finally has a court date set for April 25.

You can follow this story at the Poker Players Alliance website.

Another sign that the current OTB model does not work

You already probably know my opinion of the state of the horseracing industry.

Well here's some more news supporting my opinion. The Albany Times Union is reporting another bad year for Capital OTB, the local OTB office in that area.

The usual complaints are mentioned, from a bad business model to competition from the Internet.

Get used to it, because it's not going to get any better until the OTB embraces sports gambling and the online gambling model.

Who Does This Sound Like?

"The signatories should actively disseminate healthy, beneficial audio-visual programs meeting socialist moral norms," reads the text of the pact drafted by the State Administration of Radio, Film and Television.

"Decadent, backward thoughts and culture must be boycotted by all," according to a copy of the pact posted on the administration's Web site (www.sarft.gov.cn). Content related to gambling and "horror" were also targeted."

No this isn't Focus on the Family, this is communist China. The government is setting up an online database where a government watchdog will "recommended "excellent" audio-visual programs and a list of illegal content that must be avoided." I bet anything on democracy or worker rights would be considered not part of the socialist norms. But hey, what can we say. This administration has shut off access to online poker, a activity that is supported by over 60% of the population. Sad.

 

This is why horseracing sucks

As a person who is still able to move about without a walker, I naturally don't have a lot of interest in horseracing. Sure, I've been to the track a couple of times, and have been to an OTB parlour once or twice, but I just never had the urge to bet the ponies once I left.

Perhaps it was because I never had a mentor and didn't understand the nuances of the sport. Perhaps it was because the old farts running the sport weren't interested in my business. Perhaps it was because the only time I saw a race on TV as a kid was during the Triple Crown, and by the time TVG showed up I was too old to be converted. Perhaps it was because I viewed horseracing as uncool.

Probably it was all of the above.

Either way, the horseracing industry is dying. And not a slow death either. As it's core market of 70-somethings dies off, nobody is filling the void. Just this week, New York city mayor Micheal Bloomberg put the NY OTB on death-row.

Meanwhile Washington Post columnist Andrew Breyer wrote a great piece today outlining how the horseracing industry appears to be doing it's utmost to piss off the remaining horseracing fans.

Apparently a complicate... [More]

It's time for the AGA to get with the times

CNN released this report late yesterday, stating that the American Gaming Association (AGA) spent $1.7 million in 2007 lobbying the government on Internet gambling legislation.

The AGA is an association that represents the traditional American land-based dinosaurs casinos. From the way they spend their lobbying funds, they apparently like to have their cake and eat it too.

They spent $800K in the second half of '07 opposing legislation that would preempt states' authority to regulate gambling. But the AGA also still has a neutral stance on the UEIGA.

Neutral? What is this... Switzerland?

How can the largest gambling association in America remain neutral on the single most important issue that will affect the gambling industry for the next, well, forever?

I will tell you how. It's because they like the status quo.

The AGA likes the fact that the members of this association have cornered an industry that rakes in billions. They like the fact that current laws don't force them to put in effective controls to stop problem gamblers. They like the fact that people can walk into a casino off the street and lose $500 in cash, whether or not they can afford it.

Because if online gambling becomes regulated in America, how long would it be before people start to realize that the controls... [More]

Could Internet poker return to California?

The problem - or in this case, the beauty - of American politicians trying to legislate morality is that the ones who self-appoint themselves into the roles of morality guardians are usually too stupid to do it right.

Inevitably, the laws they enact are either struck down or are so chock full of carve-outs and loopholes that they are unenforceable, get ignored and become irrelevant.

So goes the UEIGA.

California Assemblyman Lloyd Levine, D-Van Nuys is launching a state bill to allow Californians to play online poker against other Californians.

That's just crazy enough to work. After all, the UEIGA busied itself fighting the scourge of non-American online gambling sites from a financial perspective, and mainly depended on the antiquated Wire Act to handle the actual plumbing of defining what constitutes an illegal online site.

But neither the Wire Act nor the UEIGA tackles the issue of what happens if an individual state decided to allow in-state companies to offer online gambling to individuals within state lines.

Hence, a loophole.

After all, California has the 10th largest economy in the world, with a population approximately the size of Canada's. California would no doubt have more than enough traffic to support several online poker... [More]

Bodog's advertisers drawn into patent dispute

Online site Gambling911.com is reporting that subpoenas have been served to selected companies that advertise Bodog and Bodog-related gambling websites.

This is actually not related to the UEIGA rules, but is rather tied to an ongoing nasty patent dispute involving Bodog and a tech company called 1st Technology. This is the same situation that caused Bodog's traditional domain to be siezed last year, resulting in some confusion as Bodog moved its site to bodoglife.com.

As an advertiser of Bodog, we are not concerned about this situation affecting us, as we are a Canadian company. Nor are we concerned about how this matter affects Bodog as a viable company.

Patents are territorial by definition, and this dispute and surrounding subpeonas should rightfully be limited to American-based companies. Therefore, this matter should not affect Bodog's non-American advertisers, nor any of its operations which are all naturally located outside America. It's a civil matter.

At SDI, we are unfortunately accutely aware of American patent rules, and so we know where we stand on this matter. I could talk for hours about the ridiculous, outdated and oppressive patent laws in America, but that is not the focus of this post. Suffice to say that anybody wishing to suffer the mental equivalent of chewing on tinfoil should consider talking ... [More]

New York's Off-Track Betting Votes to Close Business

I have an idea....let the OTB book sports wagers as well and watch the revenue come in.

1500 jobs being lost in New York, the home of Elliot Spitzer. I bet Spitzer wishes he didn't close the door on online gambling five years ago in his run for the Governor's house.

"Feb. 19 (Bloomberg) -- The board of New York City's Off- Track Betting Corp., the first legal off-site pari-mutuel wagering operation in the U.S., voted today to shut down the business at the urging of Mayor Michael Bloomberg.

Bloomberg, who controls the corporation's five-member board, said in November that the city is facing a $2.7 billion deficit in the coming fiscal year and couldn't afford to inject more money into OTB. He asked Chairman David Cornstein to draft a plan to shut it down." More...

 

Online Casinos Courted by Soccer to Detect Gambling Fixes

I wish the North America sports leagues would look accross the pond to FIFA, the international soccer body, in how they view sports gambling.

From the Online Casino Advisory

"As gambling fixes in sports becomes an increasing worry, FIFA, the international body governing soccer, has taken online casinos and bookmakers as partners in preventing future scandals. The creation of the Early Warning System, an organization whose sole purpose is to monitor soccer matches around the world to prevent gambling fixes, marks a step toward the future for sports and internet gambling.

Early Warning System takes betting patterns and observations from over two hundred bookmakers and online gambling sites, along with police reports and rumors from players and officials, and uses them all to track and thwart attempts to illegally control soccer results for wahering purposes." More...

 

Cleaning Up Online Gambling's Image

Online gambling is an international phenomenon and yet the only time the subject cracks the American mainstream media is when something negative happens, such as a press release by the DOJ regarding some arrest. As long as this is the only exposure the general public has to our industry, we are never going to achieve mainstream acceptance. And without mainstream acceptance, politicians will never bother to get laws changed in our favor.

One of the realities of modern media is that it is a business. While the media's mission might be to report all of the news worth reading, the reality is that they are only going to direct their resources towards covering topics that they believe the average mainstream reader wants to consume. The reason why the online gambling industry can't receive any positive press is because the media doesn't find our industry interesting enough to cover it positively. The media believes the only stories from our industry that will generate interest are the negative ones.

I can't blame the media for this. We haven't done anything to change their minds! As an industry, we have the worst PR strategy I've ever encountered. We only talk about our positives and potential in bland press releases, while we allow the authorities to pump their legal victories by making our industry sound like it is populated by nothing more than mobsters.

The only time we receive any kind of positive coverage it's usually ... [More]

Another Online Gambling Company Posts Gains

This time it's Net Entertainment out of Sweden. Profits are up 35% with good guidance going forward. I wonder how many years head start the US government is going to give these companies while it holds back US businesses like IGT from entering the market.

"Net Entertainment, which develops software for the online gaming industry, has booked a 35.4 per cent increase in profits for the fourth quarter of fiscal 2007, as the company continues to secure contracts for its core CasinoModule offering.

During the period, sales for Stockholm-based NetEnt increased by 17.1 per cent to SEK36.3m (approximately US$5.7m). Earnings totalled SEK13.8m compared to SEK10.2m in the fourth quarter of the previous year.

During the period, NetEnt secured five new licence contracts for its flagship CasinoModule product, bringing the total number throughout the year up to 18. The gaming platform consists of more than 50 casino games and an administration system.

Looking ahead to 2008, CEO Johan Öhman said: "The online gaming market is predicted to continue to grow positively, which benefits us through the organic growth of our current licensees."

During the fourth quarter of 2007, NetEnt repaid the remaining SEK4.7m of a loan from its previous parent company, Betsson, and is now completely debt-free."

<... [More]

Malta Does it Right

From the Malta Independent Online:

Gambling responsibly online 

 

The online gaming industry may be contributing to the Maltese economy but it seems it is also attracting some sharp criticism, which has prompted the Malta Remote Gaming Council to issue a statement on the subject.

 

It said that a number of people have expressed concerns about the increasing availability of gambling services and the potential dangers that this brings in terms of problem gambling. “Unfortunately a number of comments raised give the impression that the online gaming industry, including that based in Malta, is unregulated and unscrupulous. The subject is often treated with an alarmist tone, treating complex issues superficially without, it seems, to have undertaken sufficient research into the online gaming industry in Malta, its regulation and its participants.”

 

The council said the online gaming industry is an important and growing contributor to the economy and Malta has done well to attract a substantial number of remote gaming operators. Every operator in Malta already adheres to a strict code of practice la... [More]

Vegas Regulators Might Allow Cell Phones in Books

I know I'm not the only one who hates the Vegas rule of not being able to use your cell phone in a sportsbook. The Las Vegas Sun is reporting regulators are looking at the outdated law that prevents two way communication in the Race and Sportsbook area. The law was to prevent professional gamblers of getting the jump on the books with injury information or other news. In today's world information is almost instant and the Vegas ticket counter has, in most cases, better information than the people in the seats.

More from the Las Vegas Sun.

 

North Carolina Internet Gambling Raid

A sign of the times. North Carolina police raided three businesses yesterday suspected of internet gambling. This is another example of the growth of the  unregulated internet gambling that's taking place inside of the United States after the passage of the UIEGA.

 

You could have a raid like this every day and still not make a dent. The criminal element knows there is a demand for this activity now that the regulated publically traded companies are out of the market. Enforcement agencies are going to be stretched thin trying to enforce these outdated gambling laws. This obviously takes away from police work devoted to violent crimes or terrorist activities.

 

More on this story from the Gaston Gazette.

... [More]

NJ newspapers are on board for sports betting

Here's an enlightened editorial from the Courier-Post, the pride of South Jersey.

This column makes a simple, yet strong case that sports gambling gambling could bring new jobs and tourism to Atlantic City.

So simple, and yet nobody gets it.

"Federal law allows sports gambling only in Nevada, Oregon, Delaware and Montana. State Senate President Richard Codey, D-Essex, says college football cinderella Appalachian State University would sooner beat the Super Bowl champion New York Giants on the field than Congress would change this law.

We disagree. While perhaps a longshot, we don't think it's fair to allow four states to have something 46 states are banned from having. A sensible federal judge or panel of judges asked to rule on the matter ought to recognize that."

Well said.

Gambler sues after losing £2.1m

This situation might well become the bellweather case for issues surrounding personal responsibility versus corporate responsibility.

Here's the low-down, as provided by the BBC...

Graham Calvert had a gambling problem, and that's not in question. Over the course of a couple of years, he opened and closed betting accounts at several bookmakers in the UK. In the process, he barred himself from most of these establishments.

Eventually, he made it around to William Hill, one of the biggest bookmakers in the UK. After making bets totalling nearly £300,000, he closed that account as well, and had himself barred. The BCC link above includes the transcript of that conversation. What is clear is that he should not have been able to make a bet at WH for the next six months.

What is less clear is how he was able to open another account at WH only two months later and then begin to make immense wagers, including a £347,000 bet on the 2006 Ryder Cup that set the record for the largest golf wager in history.

After losing that bet, he went on to accumulate nearly £2.1m in losses.

His legal team claims that since WH allowed him to make those bets even after knowing of his problem, they are negligent. WH naturally makes the case that those wagers were all a matter of Mr. Calvert's personal choice, and so he should live with the consequences.
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Will France put Online Gambling on its Internet Blacklist?

An interesting artcicle appeared last week in The Web in France online magazine.

The article mentions how the Government of France is exploring using Internet Blacklists to fight onlione crime.

The blacklists would essentially force French ISPs to block access to sites the French government deems unacceptable.

Not surprisingly, the main use of the list will be to block sites espousing terrorism, racism, and child pornography.

But the article also mentions that illegal online gambling is something the French government has been fighting for some time, and thereby implies it may be included in the blacklist. While there is no reason given for this connection, it is worth exploring.

The article only mentions the illegal operations that the French government has been fighting, and makes no mention about the government's opinion of the publicly-traded companies operating in the UK.

Either way, we need more information before it is time to be really concerned.

Internet blacklists are something I have mixed opinions about. On the one hand, I agree that terrorism, racism, and kiddie porn are evil.

On the other hand, I start to get worried about the idea of blacklists because of the very reason I found this story interesting... once a blacklist is created, it b... [More]

An Open Letter to Catherine Hanaway, US Attorney

February 15, 2008

Catherine L. Hanaway
United States Attorney
Thomas Eagleton U.S. Courthouse
111 S. 10th Street, 20th Floor
St. Louis, MO 63102

Dear Ms. Hanaway,

Let us begin by assuring you that this letter is not an attack on your credentials as a US Attorney. Nor is it meant to belittle the many achievements you and your office have accumulated since you took office in 2006.

Indeed, it would be very hard to argue with the vast majority of the legal victories listed on your office's website. Nor would we even think about questioning the priorities listed on your site's Mission Statement, or what is listed in the Office Overview. All in all, it is a commendable list of achievement and direction.

Suffice to say, we think you firmly believe you stand on the side of the people of the United States and appear to truly believe in fighting for what is proper and right.

That is why we would like to bring to your attention the negative and contradictory societal impact of your office's misguided and possibly ideologically-driven crusa... [More]

Welcome to Gambling 2.0

I want to follow up on a post we did earlier in the week, Urban legend: Teen gambles away family savings.

In it, Paul took issue with how Americans get fed a steady diet of misinformation about online gambling from the media.

I think it's also worth talking about why it's important for the media to get the story straight, because like it or not online gambling is here to stay - and that's a good thing.

And not just a good thing, but potentially a GREAT thing. Online gambling, if we do it right, could be a force that helps painlessly transform global economics and society in general.

Yes, I know that's a bold statement, but please hear me out...

First of all, let's talk about gambling in general. We already established in the above post that online gambling is ideally just another form of entertainment. Yes, it can be expensive, but so can be just about every other form of entertainment from restaurants, to sports, to video games. Either way, people like to entertain themselves, and gambling is right up that alley.

Secondly, the one thing you need to gamble is money, so anybody who has access... [More]

Bulgaria Gives Green Light to Gambling

It's a sorry state of affairs when North America falls behind Bulgaria in terms of freedom and innovation. We can accept being behind the UK, France, Germany and other G8 nations, but Bulgaria? The former communist state has been a democracy for less than 20 years.

"Bulgaria's three-way ruling coalition is to allow the online gambling through introducing some amendments in the law they agreed on at the two-day closed debates held in the resort town of Hisarya.

The structural plan of the country's state lottery will also be changed to result in expanding the distributing network - more companies will be allowed to sell tickets but not only the now existing stations.

The amendments aim at increasing the incomes from the state lottery. The extra money gained will be allocated to social campaigns, officials said." More...

 

... [More]

This Is How I Want to Travel

I could actually get use to an eight hour flight if I was flying on a Airbus A380 that was decked out as a casino. Free drinks, nice attendants and a Frank Sinatra impersonator keeping things loose.

 

"Airbus said Thursday it was holding talks with a number of customers interested in converting its superjumbo A380 -- the world's biggest passenger plane -- into a flying casino.

 

"We have had interests from customers who would like to do something like (casinos)," said David Velupillai, marketing director for Airbus's executive and private aviation division.

 

"We had discussions with several customers about it." More...

 

... [More]

Online gamblers betting on Barack Obama

Barak Obama is a 4-5 favorite to become the next president of the United States. Wow, what a change of events. Hillary Clinton is a 3-2 dog as is John McCain. I think John McCain is the better 3-2 bet. If Hillary does wiggle her way to the nomination she'll have done it by going negative on Obama and that would bring her unfavorable rating even higher considering Obama's popularity. McCain then beats Hillary with the moderate, independent and "I hate Hillary" vote.

That being said, I've already had my money on Obama for awhile at 2-1. I might dump that wager if Obama's campaign doesn't get back to me with positive support for the online gaming industry.

Article from the Daily News.

 

Freedom At Stake

Why the name Freedom At Stake? It’s a little over the top, isn’t it? A little dramatic when describing playing poker online? Don’t be so sure it’s just a small thing.

When you look at the overall picture of the world, this right-wing crackdown on online gambling could have disturbing effects on everyone’s rights. One thing both sides of this debate cannot argue is how we’ve gotten to this point. An aggressive US Attorney in Missouri named Catherine Hanaway, who was appointed by George Bush and has strong ties to the evangelist movement, decided to start arresting executives from foreign online gaming operators. These operators were licensed in their countries of operation, were publically traded with full disclosure and contributed millions to the US economy through advertising and services. These operators also had a World Trade Organization commitment by the US to offer access to its gambling markets.

At the same time another member of religious right, former senator Bill Frist, was starting to test the waters for a possible presidential run this year. He began aligning himself with the hard core groups such as Family Research Council and Focus on the Family. He didn’t wait to pounce on an opportunity. On the last day the Senate was open before the 2006 midterm electi... [More]

Question For The Candidates

We're going to see if we can get a position from the candidates on online gambling. This question was sent to all four front runners, and Ron Paul. We’ll let you know what comes back.

 

Dear Candidate,

 

Do you believe the government should be legislating what a citizen can do in their own home? I’m referring to playing poker online. Recent US actions have illegally forced publically traded online gaming companies from the US market. These companies were offering services in accordance with commitments made by the US to the World Trade Organization.

 

Online gambling is the safest form of gambling. It protects minors and compulsive gamblers by requiring them to verify their identity and by recording their activity. Do you believe we should keep the current gambling model in place which preys on the less fortunate?

 

There are 20 million Americans who enjoyed gambling online and enjoyed their freedom to conduct an activity the government has promoted for the last 40 years. These constituents would like... [More]

Tennis Cheaters Caught

From the Online Casino Advisory

"As sports gambling becomes more popular and more widely available at online gambling sites, tennis has become a sport of choice to play. Monday, at the Women's Tennis Association tournament in Antwerp, three gamblers trying to use a flaw in the system to cheat were expelled.

Ushers working the stands during matches of the Porximus Diamond Games spotted three men with laptops open during play. Upon closer inspection, the ushers determined the men were using online gambling pages. The group, consisting of two Russians and one German, were using the momentary delay between real time and the official online scoring of points as an opportunity to place bets." Read more...

Good point and the bottom of the article. Take note sports leagues, "Sports gambling will occur, regardless of legality. The best method for detecting potential fixes or undue influences on players remains input from sportsbooks, who track irregularities and notify officials to unusual betting patterns."

888 Posts Great Results

The list of publically traded gaming companies posting impressive financial reports continued with 888 reporting a 55% increase in revenues during the fourth quarter. 888's stock has appreciated some 50% over the last year. 

Party Gaming was also upbeat suggesting its results would be ahead of expectations. Fourth quarter revenue was up 52% to US$120m. Even Sportingbet has been making encouraging signals about its business.

The US gaming industry continues to fall behind....

ESPN: U.S., racing industry losing big money to offshore wagering

Finally some media attention on how the recent US right wing crackdown is hurting US industries. Award winning writer Paul Moran was in Costa Rica last week seeing firsthand how the UIEGA has sucked needed revenues from the US horse racing industry.

 

"The U.S. ban of Internet wagering based upon the belief that such activity violates the U.S. Wire Act, has done little to curtail the activity of American professional horseplayers who operate at a level at which the rebates of up to 5 percent offered by off-shore enterprises are meaningful at the bottom line. Efforts to stem the flow of money to offshore accounts amount only to inconvenience. Some racing associations have taken meaningful financial hits by closing U.S. pari-mutuel pools to off-shore sources of revenue -- rebate shops, as they were known -- that once were permitted to co-mingle handle, losing simulcast fees as well as portion of the takeout...."

 

"There is no way to determine the ... [More]

Hanaway Wants The Governor's Seat - Surprise!

Catherine Hanaway is the Federal U.S. Attorney from Missouri who's gloated about bringing online gambling to its knees, and now she wants a promotion - Surprise!

It has been widely believed she was taking a page out of Elliot Spitzer's playbook when he took on gambling five years ago and turned the PR bonanza into a successful run to the New York's governor's office. Spitzer's winning model - attack the evil online gambling industry, an industry who can't fight back, and have your name in the paper with no opposition. I guess that's a position you can take when you don't care about people's freedoms.

Catherine Hanaway is hoping she can be the latest public official to use her office as a stepping stone to the big house. She hasn't decided yet, which means she hasn't decided if she can win or not.

"Rumors of a run for governor also surround Catherine Hanaway, the U.S. Attorney from Missouri’s eastern district since 2006. Hanaway has served in the Missouri House of Representatives and in 2003, she became the first woman Speaker of the House in Missouri.

“I am considering running but haven’t made any decision,” Hanaway said Wednesday."

— ... [More]

Focus on the Family's Next Target

Is there any question on where Focus of the Family will be turning next? Online infidelity will be the next big target for the religious group. Check out the front page of their website and read through some of the material. I can already see them petitioning congress to shut down match.com.

“the growing influence and availability of the Internet has only made things worse, with as many as one in 10 Internet users reporting that they are addicted to cybersex or other online temptations. After all, online sexual encounters offer the thrill of a make-believe romance along with the added benefit of anonymity. And because many online affairs don't involve actual physical contact, participants can convince themselves that cybersex isn't really adulterous, that they aren't really cheating on their spouse. Truth is, however, that even a "virtual" affair can wreak havoc on a marriage or a serious dating relationship.” - Focus on the Family Affairs and Infidelity

I’m not kidding about this either.

... [More]

Mike Huckabee Agrees With Us

On Meet the Press on Sunday Mike Huckabee agreed with our position. The poster boy for Focus on the Family said "I still believe there is a fundamental right people have to do damage to themselves". He was talking about smoking.

 

So Mike, it's ok for people to have the right to kill themselves smoking but not to gamble their own money???

 

You can see the clip in our videos. It's about two minutes in.

 

Playtech's Revenue Doubles

Another example of how far behind US gaming companies are falling behind the international competition. Worldwide online gaming is growing leaps and bounds and Macau is now ahead of Las Vegas in terms of revenues. How long will the government keep the shackles on these companies.

 

Playtech flush with doubled revenue

By Philip Stafford

 

Published: February 12 2008 02:00 | Last updated: February 12 2008 02:00

 

Playtech, the world's largest publicly traded online gaming software supplier, said it had won market share in poker after a bumper fourth quarter saw it exceed its own expectations.

 

It said revenues for the quarter were $32.7m (£16.7m), an increase of 101 per cent from a year ago and up 22 per cent from the third quarter.

 

Mor Weizer, chief executive, said growth was down to the launch of Playtech's iPoker network, whose risin... [More]

Urban legend: Teen gambles away family savings

By PAUL LAVERS | February 11, 2008

Part of my daily routine is to follow online gambling in Google News. Some days I wonder why I bother.

It is hard to find a more depressing topic - at least that's the way it looks according to the daily news as scoured and filtered by Google.

Take a look at this article, which is today's Top Story at the Dubuque, Iowa, Telegraph Herald. This story is a perfect example of a journalist trying to create a big story where not much exists, so he resorts to sensationalism.

In order to make the story interesting, it opens with a hook about an unnamed college student who desperately called the local gambling help line after losing $500 playing online blackjack.

Something about this story rings false. I went to university. I have a little experience about how university students react to gambling experiences. The fact that this kid in the story felt the need to call for help immediately after losing $500 tells me that:

This is somebody who learned his lesson pretty quickly, is quick to panic, and therefore has ZERO risk of becoming a future gambling addict. He's lying and he really lost WAY more than $500 - which is unlikely since his credit card probably doesn't have much more than a $1000 limit. The story is made up to be interesting. Let's be charitable and call it a story "inspired by real events".

In any eve... [More]

Ex-NFLers: How online gambling can give back

By JOE MACDONALD | February 6, 2008

I caught myself watching Real Sports with Bryant Gumbel the other night on HBO, something I rarely do.

This time I'm actually glad I watched it, although I missed the usual presence of Frank Deford or as I like to call him, Baron Franklin von Draculon Deford III. If you don't know what I'm talking about, check out Deford's picture.

But I'm not here to talk about the good Baron. The latest episode actually cleared up a misconception I had about ex-NFL players.

Like most people, I have heard the tales about ex-NFL players who were suffering from permanent physical problems coupled with financial difficulties. However, I had the view that most of those who were having the tough times were players who played decades ago. Players from the 60s, 70s, and 80s. Back when the salaries were fathomable and the helmets were free loose just like the cheerleaders and painkillers.

I remember that SI article from a few years ago, when Johnny Unitas blasted the NFL for his inability to move his throwing hand. That's who I thought was complaining. The older guys who were sour they never had a chance to cash in on free agency and they weren't getting any financial help from the current players.

At least that's w... [More]

New gambling regulation bill introduced

By JOE MACDONALD | February 1, 2008

It's about time politicians started listening.

On Wednesday, Paul Lavers wrote a scathing column on Covers.com regarding how the American ridiculous endeavour to chase away Internet gambling while allowing the subprime mortgage situation to nearly collapse the American economy. Paul ended the piece by predicting the politicians would have to come around and embrace online gambling as a way to generate tax revenues and compensate for the slumping economy.

Not even a full day later, Representative Jim McDermott (D-WA) introduced the Internet Gambling Regulation and Tax Enforcement Act (H.R. 2607),  designed to tax and regulate Internet gambling.

I know it seems unlikely McDermott read our column and immediately set to work creating his legislation to have it announced hours later. But it is fun to be ahead of the curve.

On the other side, my column from Monday failed to generate enough votes to have our online gambling question asked at the Democratic Debate held last night. So, we'll have to wait before knowing exactly where Barack O... [More]

The trillion dollar scandal that made online gambling illegal

By PAUL LAVERS | January 30, 2008

I'm going to go a little off topic here, but trust me, I'm going somewhere with this.

Most of you have been affected by the downturn in the economy over the past five months. Even if you were not directly affected, I'm sure you know someone who has either lost their house, lost all their equity in their house, or has lost a significant amount of money in their savings. What I'm talking about is the American sub-prime housing fiasco, which is quickly becoming a worldwide financial concern.

For those who are not financial junkies like myself, let me give the brief version of what has happened in the financial markets in recent years. As usual, it has a lot to do with greed, subterfuge, and a lack of foresight.

In 2003, banks and financial institutions realized that the only way to keep the housing bubble inflated was to keep people buying homes. The problem was that most of the eligible market had already been serviced in the previous few years and the market was threatening to dry up.

Luckily, they identified a huge untapped market of potential home buyers: people who could not afford homes. These people would ne... [More]

Let's make gambling an election issue

By JOE MACDONALD | January 28, 2008

As a Canadian company serving primarily American customers, we at SportsDirect have an unfortunately large amount at stake when it comes to American politics - especially during elections. Simply put, anything that changes the American political and legal landscape can have a huge effect on our business.

Therefore, we spend an embarrassingly large amount of time watching political news shows. From the Sunday morning buffet of George Stephanopoulos, Tim Russert, and Chris Wallace, to the late night foolishness of Jon Stewart and Steven Colbert. You name it. We follow it all because we have to.

At least this obsession this gives us a pretty strong base of knowledge from which to develop informed political opinions.

Naturally, we are slightly biased towards politicians we believe will bring a positive change to our industry. Viewing the current state of our industry in America, it isn't a stretch for us to think that change is good.

From our standpoint, that means we have been internally pulling for a candidate we thought represented the biggest change. For the last few months we have thought that candidate was Barack Obama. But some recent news has caused us to reconsider our opinion.

While we have generally shied away from supporting Hillary Clinton - does she really represent change? - we might have a new reason to give her a second look as a candidate for gamblers to support.

As... [More]

Sports Direct's political mission

By JOE MACDONALD | January 28, 2008

It sometimes comes as a surprise to our users when they find out that SportsDirect Inc. (the mother ship that owns and operates Covers.com, Wagerline.com, and ProSportsDaily.com) is actually a Canadian company. We are proud of our Canadian roots, but like most Canadians it's not something we trumpet.

Since the majority of our clients and users are American, there's not a lot of business value to be gained by exhibiting excessive Canuck patriotism. We have had outspoken columnists in the past. But each venture was ultimately - and probably wisely - cut short by our marketing department. I believe I can sum up their sage collective opinion by paraphrasing, "People - especially Americans - don't like to have their country criticized by outsiders."

In short, commenting on American affairs can be financially risky for non-Americans who count on American goodwill for their lifeblood.

This puts us at a real disadvantage. As a company that finds itself regularly buffeted by changes in the American political landscape, not to mention ever-changing US legal and financial policies, it can be frustrating to not have an outlet to vent opinions and effect change.

This situation becomes even more frustrating when we know that we have ideas and opinions that we think should be h... [More]