Libertarians Love Online Gambling

A few months ago, I posted about how 15% of the general population now has political beliefs that fall within the definition of "libertarian", and how one of their preferred talking points should be the legalization of online gambling.

Well, as it happens, actual libertarians seem to agree with me.

The June edition of Reason Magazine is out, and it features a great article by Jacob Sullum titled Some Bets Are Off, which I consider to be a must-read for anybody looking to update themselves on the various political hypocrisies that are being used to keep online gambling from thriving in America.

It reads like a Jason Bourne movie, with new enemies poping up left and right to each take a shot at the good guy. The story starts with a re-hash of the arrests of the BetOnSports leaders, follows through with the ludicrous passage of the UIGEA, peaks with the dispute between America and Antigua, and then mellows out with a semi-positive outlook of the future. Really, this is pure Hollywood fare.

There's no way you can read the article and come out with any opinion other than "How can so many people make some many bad decisions?"

If HBO can turn the 2000 election into a movie as ... [More]

Betfair is hunting down the cheats

The NY Times published a great article yesterday discussing the growing problem of gambling scandals in sports, and how Betfair has been on the frontlines trying to combat the problem.

Given the subject matter, I have to admit that it was a pretty balanced article as it stayed away from perpetuating the hysteria that generally arises whenever somebody discusses the possibility that sporting matches can be fixed.

Because, let's face it, it happens.

And as an industry fighting for the right to exist, this issue could very well prove to be the most important factor deciding whether or not online gambling ever achieves mainstream acceptance.

For too long, we gamblers have looked at the problem of game-fixing with a wink and a smirk. As if to say, "That's terrible. I wish I had gotten in on the right side of that bet." That's the wrong attitude. Not only did you NOT get in on that bet, but you might have actually been on the wrong side of it without knowing... and you are still not pissed?!?

Instead, we should be looking at these betting scandals as if they were our industry's version of Enron or Tyco. Examples of pure unadulterated greed gone berserk, and they should be rooted out and punished to the fullest extent of the law. That's the only way they are going to stop.

... [More]

US vs. Antigua WTO dispute update

One of the stories I've been following for a while now is the progress of the Internet gambling dispute between America and the tiny Caribbean island nation of Antigua and Barbuda.

This story has been going on for years but it refuses to die, mainly because the United States refuses to relinquish its position. This despite the fact its position has been judged illegal by the WTO in a number of different court cases and appeals.

But this week has at least seen a couple of new developments.

First of all, is the news that the anti-globalization group, Public Citizen, is suing to force the US Trade Office to release details of the WTO Internet gambling deal.

For those unaware, this is referring to a situation that occurred last December, when America signed a trade deal with the EU and Canada which caused those classy countries to abandon their support of Antigua at the exact critical moment when the WTO was considering the severity of the financial penalty that would be levied against America for its continued ignorance of the previous WTO rulings.

Not only that, but the terms of those trade deals were classified under national security guidelines, which means that we, the public, don't even know what terms and perks America was willing to give up in order to bribe the EU and Canada out of the dispute. This unnecessary secrecy has a lot o... [More]

Legal online gambling in America... it's true!

I'm a regular watcher of CNBC, and it is not just because of my crush on the Money Honey, Maria Bartiromo, but because I'm somebody who likes to follow business trends.

Anyway, for the last few months - and especially the last few weeks - I have been regularly perturbed as I watched CNBC's evening shows, starring Larry Kudlow and Jim Cramer.

What has been bothering me is their incessantly frequent references to the current market prices for Hilary Clinton and Barack Obama on Intrade.com.

I'm not sure why it gets me angry, but it does.

I think it is because these guys discuss the subject as if it is perfectly legal for Americans to bet these props, and yet for some reason, it isn't legal at all.

No, that's not what pisses me off.

Frankly, I've been trying to find a way to complain about this for a week now, but I just can't figure out exactly what it is about this situation that bothers me other than the fact that Americans should be allowed to bet on that stuff.

But after a couple of days of writing posts that w... [More]

Estimated 750,000 Problem Gamblers Among America’s Youth

Yesterday, I posted about the results of a study indicating that online gambling was one of the few risky Internet activities that teenagers were NOT participating in. Instead, they were viewing porn and purchasing weapons and alcohol online.

Today comes a different study that seemingly indicates otherwise.

According to a survey produced by the University at Buffalo's Research Institute on Addictions, there are "approximately 750,000 young problem gamblers nationwide" in America, or about 2.1% of the population between the ages of 14 and 21.

Those are some scary numbers, and given the methodology explained in the press release, there doesn't appear to be any reason to doubt the results.

Unfortunately, the full results of this study aren't going to be revealed until the June issue of some journal called the Journal of Gambling Studies. Which brings up a couple of questions:

There is a Journal of Gambling Studies? Why wasn't I notified?

Seriously, there are a couple of things I would like to know or mention:

Why does every gambling survey seem to break down the ages between 13 or 14 and 21 or 22?
To me there is a BIG difference between the matur... [More]

Who's protecting the children?

I don't know whether to laugh or cry.

As somebody who regularly has to defend the online gambling industry against baseless arguments about lax security and the supposedly rampant problem of underage online gambling, I naturally have a mixed opinion about reports like this coming from the GB Group, an identity verification company operating in the UK.

Let me summarize... Yes, teens are using the Internet to access and purchase all kinds of unsuitable material, but none of it is online gambling - it's more like everything else but online gambling.

And the numbers are pretty scary for any parent. According to the article...

Nearly half (48%) of teenage boys under 18 have tried to buy adult DVDs or violent video games online in the past year...and over three quarters of these were successfulOne in 20 (5%) 14 year olds have successfully purchased alcohol onlineA similar number of 15 year olds have been able to buy dangerous objects online such as knivesA quarter (25%) of teenage boys and over a third (38%) of teenage girls under 18 have managed to buy items online using someone else’s credit card

Then the report goes on to say, and I quote:

...while the UK online gambling industry has embraced latest age and ID verification processes, to protect young an... [More]

Will Holland enact its own UIGEA?

I just can't figure out the Dutch.

One the one side, Holland is probably the most libertarian country on Earth, which explains their hands-off approach to drugs and prostitution.

But libertarianism cuts both ways, and can lead to some isolationist policies. An example of this mentality is the stance Holland is taking against online gambling.

Unlike America which takes the stance that online gambling is evil, Holland is OK with the idea of online gambling, but wants to keep it strictly within its own borders - and monopolized by the government.

According to this Reuters article, "only the Dutch state lottery De Lotto has a permit to offer online gambling, and last month the Dutch upper house defeated a bill that would have allowed Holland Casino to open a gambling website on a trial basis."

Furthermore, as the article states, Holland's Justice Ministry intends "to crack down on illegal online casinos and are calling on banks to stop providing financial services to them".

In other words, a Dutch UIGEA. Which would probably be pronounced "van der UIGEAtoom", or something like that. But I digress.

Either way, this is not going to sit well within the EU.

After all, the EU has a policy that all countries within the EU should allow open competition within the online gambling market. And in this inst... [More]

Mexico goes for online gambling

We are getting closer and closer to a situation where America is surrounded on all sides by online gambling friendly jurisdictions and yet still won't let its own citizens participate.

Wait a minute. Did I say "getting"? We are already there. With online gambling being offered from Canada, the Caribbean, and now Mexico, America is surrounded by infidels.

Mexico, you say?

That's right. Welcome to Palmas Casino which is, as far as I know, the first legit and fully licensed online casino operating out of Mexico.

According to their website, Palmascasino.com is the "online casino division of the Emex Group, Mexico's leading operator of fully licensed land-based casinos and sports betting. The group has held a full Mexican Federal gaming license since 2002 and employs over 1,000 staff."

Too bad the site doesn't have a sportsbook yet.

Anyway, let's cut to the chase... will they be taking bets from Americans?

Well, their terms of use says...

3.4 Some legal jurisdictions have not addressed the legality of online gambling and others have specifically made online gambling illegal. We make no representation or warranty with respect to the legality or otherwise of (1) the access to and use of the Online Casino and/or the Website, and (2) the making of Deposits to the Online Casino and receipt of any Winnings from it, under any Applicable L... [More]

More patent woes for online casinos

After its success against Bodog, it looks like 1st Technology is continuing its quest to sue online casinos over some obscure patent matter.

I am not going to comment on the validity of the patent or any potential infringements, as I am not especially familiar with the case.

That being said, I will concede that from a purely strategic perspective, their plan is very sound. By concentrating on mainly offshore casinos, 1st Technology is choosing operations with management teams that may have reasons not to visit America. This adds a level of complexity to a defense which the outdated American patent system already makes pretty difficult.

As somebody who has a bit of experience in American patent litigation (someday, I will tell the whole story), I can tell you that it is a system set up very much in favor of the patent-holders, and defending a suit can get very expensive in a hurry.

The system is designed in a manner that the patent trolls lawyers can simply use photocopiers and fill-in-the-blank forms to generate mounds of document requests and court filings, while the defendant needs to spend many thousands of dollars simply trying to keep up, let alone mount a strong defense.

A company can easily get wrongfully included in a patent suit, and still have to spend $100K or more just to get their name tak... [More]

NY is concerned about piracy

The state of New York is obviously getting very concerned about the problem of movie piracy, and is aiming to crack down.

According to Broadcasting & Cable, Attorney General Andrew Cuomo held a press conference stating that the state was losing $2.6 billion and thousands of jobs as a result of piracy.

As an aside, I'd love to see the accounting that comes up with those numbers, but that's for another post.

Anyway, Cuomo is actually proposing potential jail time for the offenses. I am assuming he is referring to large scale operations that process thousands of DVDs at a time, but the story doesn't split those hairs.

The reason I find this story interesting is because of the looming potential for the country of Antigua and Barbuda to become involved in pirating American intellectual property, with the full cooperation of the WTO.

If I was involved in the movie pirating business, I would be staying away from New York and moving to Antigua ASAP.

Visiting Senator Jon Kyl, R-AZ

Ahhhhh... death and taxes have nothing compared to the eerie consistency of Senator Jon Kyl, R-AZ. One thing we know is that he doesn't like online gambling. Another thing we know is that he won't let minor things like sensible judgement, open-minded perspective, or ethical legislative procedure get in the way of his mission to outlaw online gambling.

His single-minded crusade is getting reminiscent of those who still think Elvis is alive despite all of the facts. But facts, honest debate, and even common sense won't sway Kyl from his quest.

Just last week, he was writing a letter to Congress urging them not to overturn the Unlawful Internet Gambling Enforcement Act (UIGEA). In the letter, Kyl references a study by the Annenberg Public Policy Center which reported, among other things, that "weekly use of the Internet for gambling among college-age youth also declined, going from 5.8 percent in 2006 to 1.5 p... [More]

Senator Kyl's crusade against common sense

At Covers, we first became aware of Senator Kyl back in 1996, when he made his first feeble attempt at crafting anti-online-gambling legislation, which resulted in his introducing the Internet Gambling Prohibition Act of 1997 (S 474) in the Senate. He managed to get his bill passed in the then-Republican-dominated Senate, but the bill blew up in Congress (HR 2380) once the many ambiguities and carve-outs became apparent.

Rather than accepting that there wasn't enough support for the issue, he instead decide to double-down and try to force his minority opinion upon the majority of Americans. Over the next several years, he either personally introduced or publicly supported several bills in the Senate and Congress, including:

The Internet Gambling Prohibition Act of 1998 (HR 4350)The Internet Gambling Prohibition Act of 1998 (HR 4427)... [More]

Canada's missed opportunity

As part of the Canadian Gaming Summit, representatives of the Kahnawake reserve finally showed up to discuss issues surrounding aboriginal gaming in Canada and North America - and that's when things at the summit finally got interesting.

The Montreal Gazette, which appears to be the only major Canadian paper regularly following the summit, reported today that former Kahnawake Grand Chief Joe Norton told the summit audience that, in 1999, both Canada and the province of Quebec were offered an "opportunity to be a partner with us (in the venture) but they wouldn't."

Furthermore, Norton goes on to mention how the province of Quebec appeared very close to taking part in some sort of agreement, but ultimately pulled out for legal reasons.

Looking back, that decision was undoubtably a bad one for both the country and the province. Even in a legally grey area, the Kahnawake reserve is still currently pulling in millions of dollars each year. If Canada had legalized and legitimized the industry back in 1999, there would have been a mass migration of online gambling companies to Canada. There is no reason not to expect that the count... [More]

Your are now free to bet on the French Open

Another interesting story I missed yesterday was the result of the court case in Belgium between the French Open and several major online gambling sites.

Similar to American sports leagues, the French Open is very concerned about the possibility of a match-fixing scandal. And like the American sports leagues, rather than trying to implement controls and restrictions on their players, they figure the most prudent path is to try to inconvenience and alienate their most ardent viewers by taking as much pleasure out of the experience as they can and forcing all sports gambling under the table.

After all, we all know that the only proper way to enjoy an athletic event is to sit very still on your couch watching the game on TV and basking in the pure athleticism and thrill of the event - while being sure to pay particular attention to the advertisements on the field, jerseys, banners, blimps, scoreboards, and of course the TV screen during the commercials and the slo-mo replays presented by the always hilarious Geico gecko. You must also be sure to stay attentive for the Gilette Half-Time Show - brought to you by Doritos. If you have to pry your eyes off the mesmerizing telecast to go to the bathroom, be sure to have your mobile phone handy to get the latest scores and video highlights, as well as live studio commentary from ESPN's crack team of analysts, ... [More]

A Canadian Gaming Summit... who knew?

I was busy yesterday, so I was unable to follow the breaking news and therefore, of course, missed a couple of good ones.

Apparently, happening right now in Montreal is something called the 2008 Canadian Gaming Summit, which describes itself as "... the only conference and trade show in Canada that serves the Canadian Gaming Industry... from all gaming sectors, disciplines and regions within Canada and beyond. Attendees include Senior Gaming Executives from Provincial Lotteries, Casinos and Race Tracks, First Nations, Slot and Table Games, Procurement, Operations, Entertainment, Marketing, Security, Charitable Gaming/Bingo, HR, Finance and Investment, Legal and Regulatory, F&B and more."

Yup, all sectors of the Canadian Gaming Industry is attending - except the folks from the Kahnawake Reserve, which only hosts hundreds of online gambling sites and probably represents the largest concentration of gaming operations ... [More]