Online Casino News and Information

ABC NEWS/POLITICS
September 17th, 2006

Senate Majority Leader Frist Seeks to Add Internet Gambling Ban to Defense Bill, Sources Say

By NANCY ZUCKERBROD

WASHINGTON Sep 13, 2006 (AP)— Senate Majority Leader Bill Frist is trying use a bill authorizing U.S. military operations, including in Iraq and Afghanistan, to prohibit people from using credit cards to settle Internet gambling debts.

Frist, R-Tenn., and his aides have been meeting with other lawmakers and officials in both the House and Senate to get the measure attached to a compromise Defense Department authorization bill, according to a Senate GOP leadership aide.

The House passed a version of the Internet gambling measure in July, but the Senate has taken no action on similar legislation. Neither of the defense bills passed by the House and Senate mention it.

Frist is pushing for an approach that isn’t quite as sweeping as the House measure, said the leadership aide and lobbyists following the issue. All spoke on condition of anonymity because of the ongoing negotiations.

Frist, eyeing a 2008 presidential bid, recently discussed the online gambling measure in the politically important state of Iowa. He also called it a legislative priority in a recent speech on the Senate floor.

The measure’s supporters include the National Football League as well as conservative and antigambling groups. Some banking groups are lobbying against it.

Federal officials have made recent arrests involving offshore companies operating Internet gambling sites. The Internet gambling industry is headquartered almost entirely outside the United States although many of its customers live in the U.S.

The bills authorizing defense programs are: S.2507 and H.R.5122.

AS REPORTED ON ABC NEWS www.abcnews.com

Friday Police in France’s Alpes-Maritime region near Nice arrested Manfred Bodner and Norbert Teufelberger, top execs for Austria’s BWIN, for allegedly violating French gaming laws. These laws prevent online gaming and advertisements from companies other than the Francaise des Jeux, which runs the lottery, and the PMU which takes bets for horse races. These two gaming companies hold a monopoly in France.

This action has been declared “scandalous” by BWIN’s spokeswoman Karin Klein.

Vienna Stock Exchange suspended trading of BWIN shares Friday after news of the arrests was released.

THE WASHINGTON TIMES

FRIST SHOWS HIS HAND
TODAY’S EDITORIAL
September 16, 2006

Senate Majority Leader Bill Frist is trying to force through a restriction on Internet gambling by incorporating it into the FY 2007 defense appropriations bill, according to reports. By attaching a measure intended to ban Internet gambling to a necessary armed services appropriations bill, Mr. Frist would deprive the members of the opportunity to debate and voice their opposition to this controversial legislation. Indeed, no Senate committee has held a single hearing to debate online gambling prohibition. Although a bill banning Internet gambling passed in the House in July, companion legislation has not yet been introduced in the Senate. Mr. Frist should not be so eager to bypass a much-needed discussion on this legislation.

The legality of Internet gambling, which ranges from casino games to horse racing and lottery, is ambiguous. The Justice Department believes that it’s illegal under the 1961 Wire Act, but, without a successful prosecution, it’s not clear how that argument will stand up in court. Hence the House, led by Republican Reps. Bob Goodlatte and Jim Leach, passed an anti-gambling ban that would update the Wire Act and prevent credit card companies and banks from processing transactions from gambling Web sites, all in order to ban online gambling — with the exception, that is, of the carve outs secured by special-interest groups for online horse racing and the lottery.

We support an individual’s right to be free to gamble online and opposes a proscription on those grounds, and on the grounds that enforcement would be so difficult as to make it untenable. Between our view and the outright prohibition that Mr. Frist supports, however, is the position that regulation could legalize Internet gambling and bring the nearly $4 billion offshore industry back into the United States and under U.S. controls. This is the option that many gambling Web sites and their supporters have advocated, and it is clearly better than the complete moratorium Mr. Frist is trying to push through the Senate.

At the very least, this legislation deserves a thorough debate and vetting. Senators deserve the chance to ask some important questions. Why the carve out for horse racing and the lottery? How will the proposed prohibition function if gamblers use foreign banks not subject to U.S. regulations? And if it gamblers do circumvent the restriction, will federal regulators start banning access to certain Web sites? Or will they start targeting individual gamblers?

These are questions that should not be thrown to the wind, but will be if Mr. Frist succeeds and the legislation becomes a part of the defense appropriations bill.

READ THE ARTICLE AT THE WASHINGTON TMES ONLINE

TIMESONLINE (timesonline.co.uk)From Adam Sage in Paris
THE French national lottery warned online gaming executives yesterday that they could be arrested if they set foot in France, after the joint chief executives of BWin, of Austria, were detained by French police.

The arrest of Manfred Bodner and Norbert Teufelberger as they prepared for a press conference at Monaco football club, which is sponsored by BWin, sent a fresh shudder through the online gaming industry. The sector has been battered by the recent arrests of two British online gambling executives, Peter Dicks, the Sportingbet chairman, and David Carruthers, the chief executive of BetOnSports, in the US.

A spokeswoman for the state-owned Française des Jeux (FdJ), which runs the national lottery, the football pools and scratch-card games in France, said yesterday: “It is reasonable to assume that any other executive from an online bookmaker who came to France would also be arrested. We are doing exactly the same as the authorities in the US who arrested the British executives.”

At least ten police officers took part in the arrest of the BWin executives, which happened in front of startled sports journalists at the Monaco training ground, which lies in French territory.

The executives were questioned in the changing-rooms before they were taken to a police station in Nice last night. The operation in France follows the revocation of BWin’s betting licence in Germany and comes after the FdJ filed a lawsuit against BWin and other online bookmakers.

Internet betting infringes French legislation, which allows gambling run only by the FdJ, the PMU, a state-run body specialising in racing, and by casinos, according to the spokeswoman for the FdJ.

She said that lawsuits had been filed against all online bookies “seeking custom in France through publicity”.

These include Gamebookers.com and 888.com, which, like BWin, are sponsoring professional football clubs.

Shares in 888 fell 6 per cent to 141¾p in London yesterday, PartyGaming slipped 9 per cent to 175¾p and Sportingbet dropped 10 per cent to 172p.

An investigating magistrate in Nanterre, outside Paris, has opened a formal inquiry into the claims that online bookmakers have organised “illicit gambling” and “the publicity of an illicit activity”, according to a judicial source.

THE COMPLETE ARTICLE CAN BE FOUND AT TIMESONLINE.co.uk

GUARDIAN UNLIMITED

Andrew Clark in New York
Friday September 15, 2006
The Guardian

The chairman of the gaming firm Sportingbet has severed ties with the company in order to pursue his fight against criminal charges of encouraging illegal online betting in America.

Peter Dicks informed Sportingbet of his resignation just minutes before a court appearance in New York yesterday at which a judge gave him permission to return temporarily to Britain. In a statement, Sportingbet said that with “great reluctance” it had accepted his decision to quit, adding: “Mr Dicks indicated that he wishes to concentrate on personal matters.”

Law enforcement officers arrested Mr Dicks when he arrived at New York’s Kennedy airport last week, citing a warrant issued in Louisiana for breaking state gaming laws.

But New York’s governor, George Pataki, has withdrawn permission for his extradition to the southern state pending “further investigations”, prompting speculation that authorities were yet to be convinced that there is compelling evidence against Mr Dicks. A further hearing has been set for September 28.

Mr Dicks’ court appearance in a down-at-heel outer suburb of Queens attracted a large pack of photographers who pursued him down the street.

Dressed in grey trousers, a turquoise tie and a smart blue blazer with a carefully folded handkerchief poking out of its breastpocket, the 64-year-old’s appearance was in stark contrast to the street-wise attire of other defendants in court facing assault and drugs charges.

Mr Dicks’ lawyer, Barry Slotnick, told the judge: “Mr Dicks is a foreign national, a respected businessman from the UK.

“Over the next two weeks, he would like the ability to travel home and see his family.”

Mr Dicks is the second prominent British online gambling boss to fall foul of the American authorities this summer. David Carruthers, the former chief executive of Betonsports, is under house arrest in St Louis, Missouri, awaiting trial on more serious charges of breaking federal racketeering laws. Some industry watchers have pointed out that the crackdown has coincided with the passage of controversial new anti-gambling legislation through Congress.

Founded in 1998, Sportingbet describes itself as the world’s leading online gambling company. It took 48 million bets last year, generating £1.5bn, and has 2.7 million registered customers. At its peak earlier this year, the company had a market value of more than £2bn. Its shares, which have halved since May, jumped 39p to 192p yesterday with the news that the US prosecution was running out of steam.

Other British gambling executives are avoiding travel to America. Louisiana’s state police say they have other warrants outstanding in connection with Mr Dicks’ case, although they have declined to disclose the names of the wanted people.

Meanwhile, Jeremy Crook, who is accused of defrauding shareholders at his former company Peregrine Systems, became the latest British businessman to be extradited to the US under a controversial treaty intended to speed up the prosecution of suspected terrorists. He is due in court today.

THIS ARTICLE CAN BE READ AT THE GUARDIAN

First Ever Online Poker Room for GLBT - Gay, Lesbian, Bisexual and Transgendered Community Opens
New Poker Game Launched For GLBT - No Straights

ComeOutPoker.com, the world’s first online poker site catering exclusively to the Gay Lesbian Bisexual Transgender (GLBT) community, launched its real online poker room today. While some of the big- name poker sites may claim gay members, ComeOutPoker.com makes sure they stay true to their claim of being the first site that exclusively caters to the GLBT community. This includes raising the community aspect of the site above and beyond that found at traditional online poker sites, as well as offering the first ever gay poker game, known simply as ComeOut Hold’em.

Online Poker for Gay Lesbian Community Opens: ComeOutPoker
Netherlands Antilles, September 12, 2006 — ComeOutPoker.com, the world’s first online poker site catering exclusively to the Gay Lesbian Bisexual Transgender (GLBT) community, launched its real online poker room today.
Recent surveys report that the poker boom is still experiencing record growth. An estimated one-in- five or 18% of American adults have reported playing poker during 2005. Considering that there are an estimated 200 million American adults, that means an estimated 36 million adults played poker during 2005. By contrast, it is estimated that 1 in 10 American adults is gay. That means there is close to 3.6 million gay poker players in the U.S. alone.

(more…)

THE REGISTER
www.theregister.co.uk
High Wire Act
By OUT-LAW.com
Published Thursday 14th September 2006 19:04 GMT

The US Department of Justice has admitted that the 1961 Wire Act which it uses to prosecute executives of online gambling companies is “dated”. The Department insists, though, that the law is sufficient for the prosecution of gambling executives.

Referring to the laws under which it prosecutes, including the controversial 1961 Act, Justice Department spokeswoman Jacqueline Lesch told OUT-LAW: “They include language about a wire communication facility which we believe includes the internet. They are dated but they cover online gambling.”
Sun Microsystems

Two UK businessmen have been arrested in the US in recent weeks in connection with internet gambling. Betonsports chief executive David Carruthers and Sportingbet chairman Peter Dicks were arrested at US airports when they landed. Carruthers’s case is being handled by the DoJ, while Dicks may be prosecuted under state laws by the state of Louisiana.

The latest edition of OUT-LAW Radio looks into the confused legal status of online gambling in the US. “It is certainly very confused because they are relying on statutes that date back to the 1960s and you have the added complication of states interpreting them in different ways,” said John Hagan, a lawyer at gambling law specialist firm Harris Hagan. “Certainly I’m confused and no doubt the online gambling operators are equally confused and when you’re talking about the risk of criminal penalties and being arrested in transit through the states it’s not a very satisfactory state of affairs.”

“We don’t think it is confusing,” the Justice Department’s Lesch said. “We think it contravenes three statutes, the Wire Act, the Travel Act and the Illegal Gambling Businesses Act. This has long been a concern of the DoJ.”

Many legal observers question the use of the 1961 Act to prosecute individuals for using technology and services that were not invented when the Act was written. “They are certainly taking a very strong view of outdated legislation and applying an interpretation for their own purposes,” said Hagan.

A new law which would outlaw all internet gambling has passed through the House of Representatives in the US but has not yet passed through the Senate. Most observers believe that it will not be passed. “The chances of it actually passing through the Senate are quite low,” said Wayne Brown, an analyst at Altium Securities who follows online gambling firms. “The same bill has in various other forms been tried to pass over the last few years.”

The DoJ spokeswoman said that it intended to continue prosecuting under existing laws. “When the evidence allows, we will continue,” she said.

Copyright © 2006, OUT-LAW.com

OUT-LAW.COM is part of international law firm Pinsent Masons.

THIS ARTICLE CAN BE FOUND AT THE REGISTER

Linux Insider
Scotland on Sunday
09/11/06 9:22 AM PT

“The New York State Supreme Court released Sportingbet Chairman Peter Dicks on $50,000 Friday. He is required to turn over his passport and stay in New York City under terms of the release. Shares in Sportingbet fell 38.5 percent in London on Monday, having dropped as much as 43 percent in early trading….“

“New York police pulled him in as he disembarked at John F. Kennedy Airport. As part of an ongoing investigation into Sportingbet, the arrest has sent an intimidating message across the Atlantic to the online gambling industry….“

“Last night, staff at rival online gambling firm PartyGaming were told travel to the U.S. was a personal decision. Few would blame them if they canceled their visits stateside….“

“On Thursday, shares were immediately suspended at the company’s request, while other sector stocks plummeted on the news. Analysts who have scrutinized the indictment of Carruthers and seven others on racketeering and other charges have said the U.S. authorities mean business….“

“Part of the reason is that there is a long history of corruption in sports betting in the U.S., which dates back to the fix of the 1919 baseball World Series. Both the Republicans and Democrats are vying to win votes from the Bible belt electorate ahead of this year’s mid-term elections….“

“Dicks will now face a hearing on Thursday as to whether he will be extradited from New York, where he was arrested, to Louisiana….“

“Meanwhile, PartyGaming and others are seeking to diversify into other markets, such as Asia, where gaming is a way of life — while firms, such as Playtech, that supply licensed software to online casino, poker and bingo operators have taken to issuing statements to the market distancing themselves from online gambling…. “

To read the complete article, go to Linux Insider

iGAMING
iGAMING BUSINESS
12-09-06

iGaming Business has spoken with US lawyer David Schollenberger about the recent arrest of Peter Dicks and the wider implications that the detention will have for online gaming in the United States. Although Mr Schollenberger does not believe that the Goodlatte/Leach Bill, looking to outlaw online gaming in its present form, will makeit through the Senate in the current session, he does point to the growing trend of using current legislation to prosecute gamin operatives.

What impact is the arrest of Peter Dicks likely to have on sports betting in the United States?

I should think that the effect will be to chill and discourage online sports betting operators from taking bets in the US and focusing on other markets.

Does this arrest signal a shift to more arrests in the United States?

In addition to the Department of Justice enforcement of the Wire Act, there are 8 states that have laws prohibiting online gaming. With the dramatic impact that the DOJ action against David Carruthers and Louisiana’s action against Peter Dicks appears to have had so far, other states may be encouraged to do the same.

Will the state of Louisiana now become the focus for efforts to curb online gambling?

With the greater DOJ resources for prosecution and 7 other states that have online gaming legislation, it isn’t clear that Louisiana will become the focus, although I believe it is the first state to prosecute a non-US citizen executive of a foreign operator so it may open the floodgates.

Does this arrest mean that proprietors of online casinos and poker rooms are now at risk as well as those from sports books?

The position of the DOJ and the texts of the state statutes do not distinguish between sports betting and online casino games such as poker. I believe that they are equally at risk of prosecution.

With the Senate back in session, are we likely to see an aggressive push on the Goodlatte/Leach combination bill?

I believe there may be a push by supporters of the Bill, but they will likely run out of time since the legislative session is due to expire at the beginning of October. The Bill has not made it through the Senate several times before, as it appears not to be a legislative priority for moderate senators. I think the recent prosecutions of David Carruthers and Peter Dicks demonstrate that the DOJ and states with anti-online gaming legislation feel that they can work with existing legislation to reduce online gaming in the US, even if the more directed legislation of the Goodlatte/Leach bill fails again in Congress.

Peter Dicks faces another hearing on Thursday 14th September.

READ THE COMPLETE ARTICLE AT iGAMING.COM

The Sunday Times
John Waples
TIMESONLINE
September 10, 2006

PETER DICKS, chairman of the online gaming group Sportingbet, had to raise $50,000 on Friday for his bail. He was also forced to surrender his passport. But a lot more rides on the outcome of his Supreme Court hearing this Thursday.

That is when Dicks will be told whether he will be extradited to Louisiana to face a charge of soliciting a local citizen to make a sports bet online. If he is extradited, the fallout could be immense.

Dicks would be the latest British businessman to face criminal charges in America. But his predicament deserves more sympathy than that of many others.

Yes, Sportingbet has been taking illegal bets in America, but there were other ways of seeking redress than seizing Dicks at New York’s JFK airport. He is a non-executive chairman and has no operational interest in the company.

America has a real chance this week of lowering the temperature before this develops into an international incident. At the moment every executive of a gaming group — and many fund managers who invest in them — are refusing to travel to America for fear of being arrested. For two countries that have a special relationship, that is not a satisfactory situation.

It appears that an enthusiastic Louisiana law enforcer was behind the warrant for Dicks and he is preparing to serve a lot more of them. If Dicks is sent south, a number of things will happen. Gaming stocks will become stock-market lepers and any non-executive director of one of these companies who holds a position on another board will come under pressure to resign.

PLEASE READ THE COMPLETE ARTICLE AT TIMESONLINE.COM