Online Casino News and Information

Archive for October, 2006

INTERNET POKER BAN USHERS IN NEW ERA OF SOUR FEELINGS

Thursday, October 19th, 2006

MySA - MySanAntonio.com
Web Posted: 10/18/2006 11:05 PM CDT
San Antonio Express-News

Well, that certainly didn’t take long.

President Bush was quick to sign the Unlawful Internet Gambling Enforcement Act last Friday — legislation loosely tied on to the broader Port Security Act — sending the online poker community into a tailspin.

The signing of the legislation was marked as a triumph for the security of the country. The $400 million port-security bill is designed to further inspect shipping containers, keeping them void of nuclear, chemical and biological weapons.

Bush was ecstatic during the signing ceremony, and for good reason. In this post-9-11 world, security talk is the kind of stuff people like to hear from elected officials.

“We’re going to protect our ports. We’re going to defend this homeland, and we’re going to win this war on terror,” Bush said to reporters at the signing ceremony.

All of the talk was focused on security, and Bush made no reference to the part of the bill that attacks the online poker industry.
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The G.O.P.’s Bad Bet

Thursday, October 19th, 2006

THE NEW YORK TIMES
By CHARLES MURRAY
Published: October 19, 2006

LAST week President Bush signed a law that will try to impede online gambling by prohibiting American banks from transferring money to gambling sites. Most Americans probably didn’t notice or care, but it may do significant political damage to the Republicans this fall and long-term damage to Americans’ respect for the law.

So, a month before a major election, the Republicans have allied themselves with a scattering of voters who are upset by online gambling and have outraged the millions who love it. Furthermore, judging from many hours of online chat with Internet poker players, I am willing to bet (if you’ll pardon the expression) that the outraged millions are disproportionately electricians, insurance agents, police officers, mid-level managers, truck drivers, small-business owners — that is, disproportionately Republicans and Reagan Democrats.

In the short term, this law all by itself could add a few more Democratic Congressional seats in the fall elections. We are talking about a lot of people (an estimated 23 million Americans gamble online) who are angry enough to vote on the basis of this one issue, and they blame Republicans.

In the long term, something more ominous is at work. If a free society is to work, the vast majority of citizens must reflexively obey the law not because they fear punishment, but because they accept that the rule of law makes society possible. That reflexive law-abidingness is reinforced when the laws are limited to core objectives that enjoy consensus support, even though people may disagree on means.

Thus society is weakened every time a law is passed that large numbers of reasonable, responsible citizens think is stupid. Such laws invite good citizens to choose knowingly to break the law, confident that they are doing nothing morally wrong.

The reaction to Prohibition, the 20th century’s stupidest law, is the archetypal case. But the radical expansion of government throughout the last century has created many more.

For example, all employers are confronted with rules and regulations from Occupational Safety and Health Administration and the Equal Employment Opportunity Commission that they regard with contempt — not because they cut into profits, but because they are, simply, stupid. They impede employers yet provide no collateral social benefit. And so employers treat the stupid regulations as obstructions to be fudged or ignored. When they have to comply, they do not see compliance as the right thing to do, but as placating an agency that will hurt them otherwise.

The same thing applies to lesser degrees to all of us who find ourselves doing things that we know are pointless (think of various aspects of tax law) only because we fear attracting a bureaucracy’s attention. For millions of Americans, our day-to-day relationship with government is increasingly like paying protection to the Mafia — keeping it off our backs while we get on with our lives.

The temptation for good citizens to ignore a stupid law is encouraged when it is unenforceable. In this, the attempt to ban Internet gambling is exemplary. One of the four sites where I play poker has blocked United States customers because of the law, but the other three are functioning as usual and are confident that they can continue to do so. They are not in America, and it is absurdly easy to devise ways of transferring money from American bank accounts to institutions abroad and thence to gambling sites.

And so the federal government once again has acted in a way that will fail to achieve its objective while alienating large numbers of citizens who see themselves as having done nothing wrong. The libertarian part of me is heartened by this, hoping that a new political coalition will start to return government to its proper functions. But the civic-minded part of me is apprehensive. Reflexive loyalty to the rule of law is an indispensable cultural asset. The more honest citizens who take for granted that they are breaking the law, the more their loyalty to the law, and to the government that creates it, is eroded.

Charles Murray is a scholar at the American Enterprise Institute.

READ THIS ARTICLE AT THE NEW YORK TIMES

NETELLER WILL COMPLY WITH US REGULATIONS ONCE DETERMINED BY US FEDERAL RESERVE SYSTEM

Thursday, October 19th, 2006

19 October 2006
NETELLER PLC

Update on US position

Further to the Company’s announcement on 12 October 2006, NETELLER Plc today
announced the following update in the light of the action on 13 October 2006 by US
President George W Bush to approve and sign into law the SAFE Port Act
incorporating the Unlawful Internet Gambling Enforcement Act of 2006 (”UIGEA” or
the “Act”) which includes certain provisions to prohibit “unlawful internet gambling”
by restricting gambling sites from accepting certain payments from US residents.

NETELLER, a company registered outside the US, will comply with the Act and its
related regulations as if it were subject to the Act’s jurisdiction. This action is
intended to ensure that the Company is able to continue to operate with the support of
its principal commercial partners and to protect its shareholders, business partners,
employees and reputation.

Various provisions of the Act, including the obligations of financial transaction
providers such as NETELLER, remain unclear. This uncertainty should be largely
resolved when the Secretary of the Treasury and the Board of Governors of the
Federal Reserve System issue the regulations they are required to prescribe within 270
days.

In view of the importance of these issues, NETELLER has accelerated its review of
the Act and all other relevant laws and pertinent developments. The Company also
continues to closely monitor the regulatory situation and is determining what actions
to take well before the conclusion of the 270-day rulemaking period.

In the interim, US-resident customers are able to use the NETELLER service as
normal. The funds of US-resident customers are held in trust accounts and will be
available for withdrawal, on demand. The ability to withdraw funds will exist
regardless of the customer’s location or ability to transfer to any site.

NETELLER customers not resident in the US are not affected at all by the legislative
changes in the US, and the Company will continue to operate its non-US business as
normal, maintaining existing customer and merchant support across all the other
markets it currently serves.

NETELLER remains focused on developing its business in line with its stated
strategic objectives including geographical and product diversification. The Company
continues to launch localised services within the European market, most recently in
Sweden and Denmark, and has plans for three further launches later this year. As
well as focusing on the gaming sector outside of the US market, the Board considers
the development of additional products and services for wallet users to be integral to
its diversified market strategy. We expect to share more information on these
initiatives in the coming months. The Company is committed to maximising
shareholder value both in the short and longer term, and will explore all possible
strategic alternatives, including utilising its substantial resources, to ensure the
achievement of its strategic objectives.

The Company’s trading update for the third quarter will be issued on Tuesday,
October 31st, 2006. In the meantime, the Company will endeavour to keep
shareholders informed of any material developments as and when appropriate.

ONTARIO TO INTRODUCE LEGISLATION TO END ONLINE GAMBLING

Thursday, October 19th, 2006

NATIONAL POST
Peter Nowak - Thursday, October 19, 2006

Ontario is looking to quash Internet gambling by introducing a bill today that will ban such Web sites from advertising, a move legal experts say oversteps the province’s authority.

Gerry Phillips, Minister of Government Services, will table a bill of amendments to Ontario’s Consumer Protection Act, including a section aimed at banning media organizations from running ads by gambling Web sites.

The primary driver behind the legislation is the dramatic rise in Internet gambling addiction among teenagers, according to ministry spokesman Paul de Zara. A recent survey by the Responsible Gambling Council found that addiction among people aged 18 to 24 rose 400% between 2001 and 2005.

“The addiction rates for children are pretty startling,” Mr. de Zara said.

The legislation is only targeting illegal sites — namely those that take money bets — and will exclude “for-fun” sites. Mr. de Zara said all Web sites that take money bets from Canadians are illegal under the Criminal Code because the provinces have exclusive authority over all forms of gambling.

“You can’t advertise something that is illegal,” he said. “We don’t let drug dealers advertise crack houses.”

READ THE COMPLETE ARTICLE AT NATIONAL POST

BLACK MARKET ON THE CARDS FOR ONLINE GAMBLING INDUSTRY?

Thursday, October 19th, 2006

e-consultancy
Posted 13:24 19 Oct 2006 by Richard Maven

Sportingbet has warned that the US is encouraging the creation of a black market through its online betting ban, after announcing it is taking a hit of £210m on the sale of its business Stateside.

Announcing its annual results this morning, the UK-based firm said its profits had risen by 75% to £71.5m, but that next year’s conditions will be very different following the legislation’s approval by president Bush last week.

Of the £303.3m in gross profit Sportingbet generated in the year to the end of July, £196.7m came from US-based users, which the firm said made up 56% of its customer base.

Last Friday the company sold its US operations to an Antiguan company for just $1. It now says it is focusing on Europe and the rest of the world.

Nigel Payne, Sportingbet’s executive director, said there was “little sign” that governments would embrace its call for international online gambling rules.

“The Board has continued to lobby for the adoption of consistent and transparent policies promoting the benefit of proper regulation.

“However this year has seen a fragmentation of the Group’s efforts, with many governments compromising this policy for various motives, be they fiscal protectionism or political gain.”

READ THE COMPLETE ARTICLE AT e-consultancy

World Gaming falls victim to crackdown

Thursday, October 19th, 2006

VNUNET.COM
David Jetuah , Accountancy Age
19 Oct 2006

Lack of debt and a strong cashflow have left the online gaming industry ripe for consolidation, the administrators of e-betting company World Gaming said this week.

The industry is facing a period of upheaval following US moves to clamp down on online gambling.

But despite fears that the collapse of World Gaming could be followed by others in the sector, Andrew Andronikou, of UHY Hacker Young, said it was an isolated incident.

‘We’re going to see consolidation in the industry over the next few weeks,’ predicted Andronikou as Sportingbet and Leisure & Gaming both sold their US operations for a token $1 on Friday. ‘Competitors are shutting down their US operations and concentrating on the European market.

‘I’ve spoken to most of them and Europe is still an attractive investment because of the industry’s low overheads. Most online gaming companies are effectively debt-free cash cows. The difference with World Gaming was that it had debts which were funding expansion.’

Andronikou is overseeing the administration of World Gaming alongside Peter Kubik.

READ THE COMPLETE ARTICLE AT VNUNET.COM

US PLAYERS AT CASINOMEISTER BUT NO CASINOS THAT TAKE US PLAYERS

Thursday, October 19th, 2006

iGAMING BUSINESS
16 October 2006

Casinomeister says the new U.S. legal climate presents ‘definite risks’

One of the longest established and most successful information portals in the online gambling industry, Casinomeister has reluctantly decided to discontinue promoting online operations that accept U.S. bets.

The portalmaster, Bryan Bailey says that the move is a consequence of the new Unlawful Internet Gambling Enforcement Act which attacks U.S. financial channels used to fund online gambling but also contains confusing provisions regarding information sites and possible interference with ISPs.

‘Last week was a tough week. Tough but informative,’ Bailey says in announcing that he has had to consult with experts before reluctantly making a ‘command decision’ to stop listing online casinos that accept bets from U.S. players.

‘One thing for sure, there is a very *big* problem in the US when it comes to dealing with online casinos and poker rooms,’ says Bailey, who is based in Germany. ‘It’s a mess and no one has any answers on how to deal with this. There is also a definite risk to anyone who is continuing to accept US bets. A number of casinos have decided to block players from certain jurisdictions in the States - but even this is not clear.

‘So, a command decision was made: *Casinos that accept bets from US based players will not be listed at Casinomeister. *’

Bailey goes on to assure his many American members that whilst his accredited online casino links will shrink in the short term, players will remain welcome on the site.

‘Everything else is business as usual,’ he says, highlighting the site’s popular dispute resolution facility, active forum, current industry news pages, webcast and newsletter. He also hints that Skill Games [which are unaffected by the US law] may be joining the Casinomeister landscape.

Bailey concludes by telling U.S. players: ‘You may need to venture out of your house and check out the local poker room dives in your neighborhood, or anticipate a freaky road-trip to Vegas or some nearby Indian reservation. But if you’re looking to join casinos from here, sorry - I can’t help you out.

‘Sorry that it has to be this way, I hope you understand.’

The operator reaction to the Casinomeister decision was fast and innovative. A number of the casino groups/casinos that were removed are putting together casino sites that will accept all non-US players, and then they will be readmitted to the accredited section.

READ AT iGAMING BUSINESS

PARTYGAMING HONCHO PLACES ATTENTION AND FINANCES ON FILM

Wednesday, October 18th, 2006


THE OBSERVER

James Robinson and Nick Mathiason
Sunday October 15, 2006

Russ Deleon, the co-founder of gambling website PartyGaming, plans to use some of his multimillion-pound fortune to become a film mogul.

The Californian gambling tycoon, who started the website with his wife Ruth Parasol in 1997, wants to invest in new talent. DeLeon attended a conference of TV executives in the south of France last week to scout for ideas.

DeLeon’s foray into the world of films will raise eyebrows as the business he set up flounders in the wake of US Senate legislation signed off by George Bush on Friday, which outlaws gambling firms taking credit card payments from US citizens. This has resulted in a catastrophic slide in PartyGaming shares. The firm last week was booted out of the FTSE 100 and is trading at a fraction of its float price.

READ MORE - THE COMPLETE ARTICLE IS AT THE OBSERVER

Same Song, Second Verse - Prohibition II: Good Grief

Wednesday, October 18th, 2006

MSNBC - Newsweek
By George F. Will
Newsweek

Oct. 23, 2006 issue - Perhaps Prohibition II is being launched because Prohibition I worked so well at getting rid of gin. Or maybe the point is to reassure social conservatives that Republicans remain resolved to purify Americans’ behavior. Incorrigible cynics will say Prohibition II is being undertaken because someone stands to make money from interfering with other people making money.

For whatever reason, last Friday the president signed into law Prohibition II. You almost have to admire the government’s plucky refusal to heed history’s warnings about the probable futility of this adventure. This time the government is prohibiting Internet gambling by making it illegal for banks or credit-card companies to process payments to online gambling operations on a list the government will prepare.

Last year about 12 million Americans wagered $6 billion online. But after Congress, 32 minutes before adjourning, passed its ban, the stock of the largest online-gambling business, Gibraltar-based PartyGaming, which gets 85 percent of its $1 billion annual revenue from Americans, declined 58 percent in one day, wiping out about $5 billion in market value…..
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Online Gambling top gaining category before Bill passed

Wednesday, October 18th, 2006

EGAMEPULSE (www.egamepulse.com)
Tuesday, October 17. 2006

Ironically, just prior to the landmark legislation passed by Congress in early October to stem gambling over the Internet, Online Gambling was the top gaining category in September, posting a 17-percent gain versus August. Leading the category was embattled PartyGaming with 10.9 million U.S. visitors, a 75-percent increase, followed by SportingBet PLC, the second-biggest gaining Web property during the month with 5.4 million U.S. visitors (up 194 percent).

“Congress’ move to outlaw online gambling comes at the prime time for football season, as people around the country are placing bets on their favorite teams,” said Jack Flanagan, executive vice president of comScore Media Metrix. “As speculation continues about the future of these online gambling sites, fans will very likely continue to turn to fantasy games on traditional sports Web sites, which also saw big increases last month.”

Indeed, in addition to placing bets, Americans also checked out sports Web sites in September, triggering a 7-percent increase to the sports category overall. Leading the category was ESPN with 20.4 million visitors, a 14-percent increase versus August, followed by Yahoo! Sports with 17.5 million visitors (up 27 percent) and FOX Sports on MSN with 16.5 million visitors (up 25 percent)….

THE COMPLETE ARTICLE CAN BE FOUND AT EGAMEPULSE (www.egamepulse.com)