Online Casino News and Information

BankNet 360
Posted By: Vince Ryan
Aug 30 2006 06:00:10 PDT

ICBA Opposes Bill to Stop Illegal Online Gambling

Congressional legislation that would attempt to block electronic transfers between U.S. gamblers and offshore casinos is being opposed by the Independent Community Bankers of America, according to The Wall Street Journal. The ICBA is asking the Senate to revise a House version of the bill that passed n July.

The advocacy group, which represents 5,000 community banks, says it would be difficult, if not impossible, for banks to police electronic payments from gamblers to casions, in part because the transfers are not coded to show what type of business is on the receiving end.

The banks also do not have the capability to stop gamblers from using physical checks to move money into gambiling accounts, but the proposed law might require them to do so.

Although the Internet Gambling Prohibition and Enforcement Act would require greater regulation of banks, the Federal Reserve and the Treasury Department would devise a way to make complying with the law not overly burdensome, said Rep. Jim Leach (R-Iowa).

However, according to a former U.S. assistant attorney in New York, in addition to overhauling their systems, banks would need a constantly updated lists of names of online casino operations in order to comply with the law, similar to what is used to monitor payments to terrorist organizations and drug dealers.

Read this article at BankNet 360 http://www.banknet360.com

WINNERONLINE
SOURCE: Las Vegas Review-Journal

by Tony Batt
28 August, 2006

WASHINGTON — There may not be a better example of how much easier it is to block rather than pass legislation in Congress than the decade-long effort to prohibit Internet gambling.

The House and Senate have voted no fewer than six times to either outlaw or severely restrict online wagering. The closest vote in the Senate was 90-10 on July 22, 1998.

Just last month, the House voted 317-93 to outlaw Internet gambling, and the White House has signaled that President Bush is prepared to sign the bill into law.

But the House and Senate never have managed to pass an Internet gambling ban during the same two-year session of Congress.

Prospects appear bleak that the Senate will pass an online wagering prohibition when it returns after Labor Day for the final weeks of the 109th session of Congress.

Meanwhile, the Internet gambling industry continues its exponential growth. It has gone from 30 offshore Web sites taking in $30 million in bets in 1996 to a $12 billion industry with more than 2,300 Web sites this year.

Read the complete article at WINNERONLINE

For everyone who’s been watching the events unfold regarding David Carruthers and BetOnSports, a website is now available to help you keep track of the happenings in and out of court and to show your support for David. Just visit FREEDAVIDCARRUTHERS (http://www.freedavidcarruthers.com)

Keep up to date on the current happenings of the trial, judges rulings, lawyers filings and outcome of the case at FREEDAVIDCARRUTHERS.com

BusinessWeek.com
The Associated Press/ST. LOUIS
By CHRISTOPHER LEONARD
AP Business Writer

AUG. 16 3:17 P.M. ET Former online gambling executive David Carruthers was freed on a $1 million bond Wednesday after spending nearly a month behind bars following his arrest on racketeering and fraud charges.

Carruthers, 48, was freed after a hearing before U.S. District Judge Mary Ann Medler. He had been expected to be released as early as Monday but it took days to work out technical details. Among those details: A dedicated phone line had to be installed at the residence where he will stay.

The charges against Carters are part of a 22-count indictment against London-based BetOnSports PLC being prosecuted by U.S. Attorney Catherine Hanaway in St. Louis. Carruthers was chief executive of the company until shortly after his arrest, when he was fired.

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The case is one of the largest U.S. prosecutions of an online gambling company and has caused BetOnSports to close all of its U.S.-focused operations. It has caught the attention of the online gambling industry.

Early Wednesday morning, Carruthers entered Medler’s courtroom in leg irons and handcuffs, escorted by a security guard. Carruthers sat alone at a table and declined to speak with The Associated Press.

Carruthers, a British citizen, will live under house arrest in the St. Louis area until his trial on fraud and racketeering charges. The first hearing in the trial is scheduled for Aug. 21.

According to the terms of his bond, Carruthers will live in an upscale hotel in the suburb of Clayton. He will not be allowed to leave the hotel except for court appearances, meetings with his attorney or medical emergencies. Carruthers will wear an ankle bracelet to monitor his whereabouts.

During the hearing, Carruthers asked the judge only one question: “The house incarceration: Is that 24 hours a day?”

Medler told him it was. Federal officials overseeing Carruthers’ bond wouldn’t say whether he will be forced to stay in his room, or have access to the entire hotel. Carruthers’ attorney Scott Rosenblum said his client is not a flight risk.

“He’s looking forward to responding to these charges in court,” Rosenblum said. He said he’s happy Carruthers will be out on bond.

“Certainly it will help in having access to Mr. Carruthers to defend him in court,” Rosenblum said.

Federal prosecutors insisted that none of Carruthers’ bond money come from the treasury of BetOnSports, Rosenblum said. He wouldn’t say how Carruthers came up with the full payment, but said all the money was raised through legal means.

Hanaway said she will continue to prosecute the case against BetOnSports regardless of the company’s decision to close its offices and stop accepting U.S.-based bets. She said the move does not absolve the company from taking illegal bets in the past.

This article can be found at BusinessWeek.com

SI.com
Justin Doom > Doom’s Day
Tuesday August 15, 2006 4:12PM

The only safe place to bet on sports is in Las Vegas.

At this rate, it’s only a matter of time before I’m in jail. In fact, I wonder what the odds on that would be. Maybe I can find a Web site that will offer a line. But I’d better find it soon.

Did you hear what happened to the folks over at BetOnSports.com? After recently being singled out and indicted by U.S. prosecutors, the Web site, which according to The New York Times took between 70 and 80 percent of its wagers from U.S. residents, announced last week that it will shut down most of its operations.

David Carruthers, the former CEO of BetOnSports, was arrested at the Dallas-Forth Worth airport last month during a layover. Carruthers’ company has been charged with, as the Times story noted, “running an illegal gambling operation.” The story continued: “United States prosecutors assert that offshore Internet casinos violate the Federal Wire Act of 1961. Legal experts, noting that the position is untested, say the law seems reasonably construed to cover sports betting but is less clearly applicable to casino games, like blackjack and poker. The House of Representatives recently passed legislation to strengthen the laws against operating Internet casinos but the Senate has not yet passed the legislation.” Prosecutors are seeking a $4.5 billion penalty against BetOnSports and its execs.

So now, instead of just keeping careful track of how much money I bet on sports, I’ll now have to track exactly how I do it, to say nothing of my meager online poker expenses. (By the way, as of June 7, playing online poker in the state of Washington is a felony. A felony!)
(more…)

An Interview With Lawrence G. Walters: Part I, originally published at WINNERONLINE - http://www.winneronline.com
by Karl Yu, Winneronline
15 August, 2006

There are a lot of legal implications when it comes to online gaming and America’s stance against it. Over the past six months the U.S. has launched a major offensive on the industry on both the federal and state level.

CEO’s have been detained, sites have been shutdown, anti-gaming legislation is progressing from House to Senate, an outright ban has gone into effect in one state, online poker newspaper articles have been pulled and both investors and online poker players are left wondering what the fuss is all about.

Lawrence G. Walters is an attorney who specializes in internet/gaming law and First Amendment and censorship issues. He has first-hand knowledge of all that is transpiring and offered insight into the challenges that the online gaming industry faces and could face.

Winneronline: Could you tell us a little about yourself?

Lawrence G. Walters: I’m an online gambling attorney; I’ve been doing this for over a decade and represent some of the larger companies in the field. I have written a number of articles and Law Review pieces on internet gambling issues. My firm is a firm of about 10 lawyers, I’m one of the partners and we focus on constitutional and internet issues and we’ve been involved in some of the most important free speech cases throughout the United States, including seven cases in the United States Supreme Court. I’ve been doing this for awhile and my particular focus is on the internet gambling issues.

Winneronline: What was your initial reaction when you heard of David Carruthers’ detention by U.S. officials?

LGW: I was disappointed, but not entirely surprised. This was a potential outcome that had been discussed in industry circles for quite some time.

Some leaders in the industry had openly questioned why Mr. Carruthers would come to the United States at all and expressed concerns about the risks associated with his travel to the U.S. given the company’s operation of a sports betting business and so I guess it wasn’t entirely surprising. But it is disappointing that the government is using its scarce prosecution resources on an entertainment activity that is supported by over 80 percent of the United States’ citizens and especially given the other significant concerns of their law enforcement like terrorism and public corruption and many of the other more significant criminal enterprises that are prevalent throughout the world.

Winneronline: With recent actions against Jessica Davis and Bill Scott of WWTS (World Wide Telesports) and the Carruthers situation, is the U.S. government saying that they are serious about imposing our rule on the online gaming industry?

LGW: I think the U.S. government has always been serious about enforcing online gambling laws against sports betting operations. I don’t think that you can extrapolate anything further into other forms of online gambling such as poker since the law is at best unclear and more likely does not apply to any other form of online gambling despite the Justice Department’s pronouncements to the contrary.

Obviously the [U.S.] government has opened up a new front when it comes to pursuing foreign companies and citizens for online gambling violations. I think it’s unprecedented for the U.S. to pursue a foreign individual like Mr. Carruthers for an online gambling violation and so that certainly sent out shockwaves through the industry given this new kind of tact that the Justice Department is taking with regards to foreigners, but as far as opening up a wider front and concluding that the government is now willing to take on the internet gambling industry as a whole, I don’t think that’s what this case means.

READ MORE: Read the complete interview with Lawrence G Walters at WinnerOnline

It’s been reported that shareholders of BOS are considering legal action against BOS advisors based on the fact that they (advisors) did not mention any unfavorable background on Gary Kaplan, previous owner of the company prior to the the stock offering. It’s rumored that Kaplan has left Costa Rica for parts unknown but the middle east is suspected. He was included in the indictment against BOS for, among other charges, fraud and racketeering. Apparently, the advisors, Evolution Securities and Baker Tilly, felt there was no obligation to report any Kaplan history of previous gambling offenses since he was no longer associated with the company. However, some shareholders believe this information was critical in making sound investment decisions and should have been made available.

Mention should be made here that David Carruthers, the former CEO of Betonsports, who was arrested and held on a $1 million bond over a week ago is now counting his release in hours. It’s been reported that friends and family have raised the necessary money and arranged for housing and other stipulations as required for release on bond.

Meanwhile, BOS was busy firing David Carruthers and 800 other employees of BOS and announced they were out of the US market. They look to Asia to bolster their coffers but Asia is comparably a much smaller market and observers don’t believe this will be the cure, or even an effective bandage for the ailing company.

Gambling Standards Authority Issues its 107th “Play It Safe” Seal to Accredited Online Casinos and Poker Rooms

LONDON, August 14 /PRNewswire/ — The online gambling standards and player protection body, eCommerce and Online Gaming Regulation and Assurance (http://www.eCOGRA.org), today announced it achieved its target of accrediting 100 online casinos and poker rooms before December 2006.

eCOGRA launched its 100 Seals campaign in May this year with 76 accredited sites. In just more than three months the organization has exceeded its goal, with 107 “Play It Safe” seals awarded to tier-one online casinos and poker rooms. These operators use a variety of different software platforms which includes major international providers 888 Holdings, Ongame and Microgaming.

Achieving the target within a matter of months is a reflection of increasing demand from players for the seal, and to the commitment of growing numbers of online gambling operators who want to commit to higher standards of player protection, service and operational efficiency.

“Not only is this a major milestone for eCOGRA, these 107 seals signify a major change in the industry in which players are consistently seeking out the “Play It Safe” seal, and there is a real desire and ability for the industry to self-regulate,” said eCOGRA CEO Andrew Beveridge. “To all online operators, if you’re ready to meet the 21st century challenges
facing the industry, we invite you to commit to our standards and join the ranks of some of the most successful online gambling sites in the world.”

The latest “Play It Safe” seals were awarded today to the following sites:

Online casinos:

http://www.vegassplendido.com
http://www.aztecrichescasino.com
http://www.blackjackballroom.com
http://www.captaincookscasino.com
http://www.casinoclassic.com
http://www.casinokingdom.com
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