Online Casino News and Information

The political waves are reaching newer heights this week as Costa Rica enters the scene with Antigua and Barbuda, Japan, India and the EU, seeking compensations from the online gambling ban set forth by the U.S.

You can find more information on this by The Associated Press release yesterday.

From the hardships brought on by the US related crackdown on online gambling, the confirmation that Costa Rica, a Central American nation, is now seeking compensations of its own. Costa Rica, which services the most web-based gambling firms in the world, has been hurt the most by the recent US online gambling legislation.

Here is where you can find the confirmation from point-spreads.com in this article.

Here you can find more on this article from gambling911.com.

As we had mentioned in an earlier article, how much will it take before this online gambling ban is dropped? Now there are more countries stepping up seeking compensations for their loss from the US online gambling ban.

The waters are getting choppy between the East, West and the Caribbean against the U.S. banning Internet gambling to U.S. players and their U.S. funds going to other countries.

Geneva-The Caribbean nation of Antigua and Barbuda, yesterday said; that for the United States’ failure to comply with a World Trade Organization ruling that it’s Internet gambling restrictions are illegal, the U.S. should face commercial sanctions worth more than 3 billion U.S. dollars each year.

Antigua has mentioned, that before the ban on Internet gambling set forth by the U.S., the online gambling had helped end its relying on tourism for an income, and also aided in the clean-up from a series of hurricanes that had passed through in the late 1990’s.

More on this gambling feud can be found in these Articles.

Two other nations have filed compensation requests with the trade organization, Japan and India, because of the attempt Washington made to change details of its obligations under the General Agreement on Trade in Services of 1944. The European Union filed a similar request on Tuesday, stating that other trade sectors should be opened up by the United States to compensate for deleting part of the treaty.

More on the EU can be found in these Articles.

The Associated Press contributed to this report.

The possibility that about half of the world’s online gamblers reside in the U.S. may have brought about Washington’s decision to restrict U.S. online gamblers, and the fact that over $15 billion U.S. dollars were going overseas. But, what about the fact of all the winnings those U.S. online gamblers won? Where are the articles on the maybe billions of dollars in winnings which came back into the U.S.? The door in online gambling swings both ways, but we are only shown the negative side of online gambling.

How much will it take before the ban is lifted on U.S. online gambling? Not just a questions of many American citizens, but it is now a world-wide question on the minds of The World Trade Organization, The European Union, British online gaming operators and many others are stacking up on this list as the months go by.

Online gambling was a profitable income for hundreds of citizens in Barbuda and Antigua, which were damaged by a series of hurricanes in the late 1990’s, and this profit was helping to end the dependence on tourism among the islands. The EU, the world’s largest consumer market, has joined the twin-island nations in seeking out compensation for their losses.

Gaming operators, such as Leisure & Gaming PLC and Sportingbet PLC, in the British online gaming industry were forced to quit in the U.S. online market last year due to Washington shutting down online gambling credit card and banking processes outside of the U.S.

The United States holds almost half of the world’s online gamblers who spent over 15 billion last year, of which the Unlawful Internet Gambling Enforcement Act cut off, the income to many companies around the world.

The loss to European businesses will be the focus in initial negotiations, an EU official said, the concessions Europe will be looking for would likely be other trade sectors with commitments. The EU official quoted, “We need new concessions that would be equal with the benefits lost.”

It is a good thing that the U.S. does not like to lose, but after losing the case of unfairly targeting offshore casinos and announcing to take unprecedented legal steps of changing the international commitments towards the World Trade Organization, it is time to give in. The U.S. declined to challenge the WTO ruling where it could keep restrictions against sport betting if it were also applied to American businesses.

The bill that was introduced by U.S. Republican Barney Frank in April, 2007 would reverse the Unlawful Internet Gambling Enforcement Act, but the opposition from the Bush administration puts this bill in question and at long odds in Congress.

Associated Press Writer Bradley S. Klapper in Geneva contributed to this report.

We the people did not vote on an online gambling act, which is a separate issue with wire tapping and terrorism, and believe that by rocking the boat you will scare away the big fish. Well, Washington is scaring away the big fish, and the way to stop this is to take off the Unlawful Internet Gambling Enforcement Act, and let everyone go back to their normal online gambling lives.

First, Rep. Barney Frank (D-MA) introduced the IGREA (tabled after hearings held Friday) then Rep. Robert Wexler (D – FL) introduced the Skill Game Protection Act, which is geared toward exempting games of skill like chess, mahjong and poker from the UIGEA

Now another bill has been introduced by Rep. Jim McDermott (D – WA) titled Internet Gambling Regulation and Taxation Enforcement Act which would define the tax structure for the IGREA.

A more tolerant stance on online gambling and the benefits of legalizing an industry that could provide millions of dollars to an overworked and much abused budget seems to be growing but can only be described as at a snails pace. Still, Rome wasn’t built in a day.

The Plain Dealer reported that the UGREA, a bill that would legalize and regulate online gambling, has been tabled until its author, Rep. Barney Frank, can gather more support for his bill.

“There are more votes for my position now than there were a year ago, but there aren’t yet enough,” Frank said after a hearing at which Barberton minister Greg Hogan Sr. described how his son, Greg Jr., robbed a bank to pay Internet poker debts.

Hogan, who lives in Hudson, listed his son’s achievements, which included playing at Carnegie Hall piano recitals and being elected president of Lehigh University’s sophomore class, before describing his descent into addiction and the Hogan family’s futile efforts to stop it. Greg Jr. is now serving a 22-month prison sentence.

Frank says he won’t push the bill through his committee until he thinks it could pass the full House of Representatives.

Well the expected announcement from Neteller regarding the release of funds from US accounts arrived and the expected details of prompt money distribution did not. In a statement released by Neteller, it was stated “we are disappointed not to have been able to return funds to our US customers at this point, we believe that the steps we have made in our discussions are significant and we hope to be able to announce further progress with the USAO by 13 July 2007.”

The Press Release stated in part::

“The NETELLER Plc Group (LSE: NLR), the independent global online payments business, today announced that it has agreed to a plan for the distribution of funds to its US customers.”

“NETELLER is continuing to cooperate with the investigation being conducted by the United States Attorney’s Office for the Southern District of New York (“USAO”), under the advice of its legal advisers and in accordance with court orders in the Isle of Man. The Company is in discussions with the USAO for the purpose of resolving the investigation. The Company has advised the USAO that it will use its best efforts to resolve the investigation no later than 13 July 2007.”

“The agreed Distribution Plan details the process and mechanisms for the return of funds to US customers. US customers will be able to access their NETELLER accounts online for a certain time and make a request for their funds. In accordance with NETELLER’s Terms of Use, no interest on account balances will be paid. NETELLER will not charge fees to customers to process requests for funds. Funds will be distributed either by electronic transfer to the bank account on record with NETELLER or by a cheque to be sent to a mailing address as confirmed by the customer. If a US customer has a bank account already registered with NETELLER, funds transfer will be by electronic transfer subject to confirmation by the customer that the registered bank account remains valid. US customers will receive the entire balance of funds in their account; no requests for partial payments will be processed. US customers cannot use their accounts for any transaction other than to request the funds.”

“Ron Martin, Group President and CEO said: “The agreement on the Distribution Plan represents a milestone in our cooperation with the US authorities. While we are disappointed not to have been able to return funds to our US customers at this point, we believe that the steps we have made in our discussions are significant and we hope to be able to announce further progress with the USAO by 13 July 2007.””

Representative Barney Frank delivers as promised, taking the subject of online gambling to the House Committee on Financial Services last week. TMJ4, an NBC affiliated television station, carried this report “Regulated Internet Gambling: Better Protect American Consumers“

“Top experts testified Friday before the House Committee on Financial Services and offered further evidence to Members of Congress that a regulatory framework for Internet gambling would protect consumers and ensure the integrity of Internet gambling financial transactions.

Leaders in the fields of internet payment processing, identity identification and online safety described how existing systems and technology have proven successful in combating underage and compulsive gambling and protecting against money laundering, fraud and identity theft.”

“It was made clear at today’s hearing that online gambling can be effectively regulated,” said Jeffrey Sandman, spokesman for the Safe and Secure Internet Gambling Initiative. “Instead of prohibiting Internet gambling, which is futile, the government should regulate and tax Internet gambling to ensure proven and effective security controls are implemented to protect consumers and capture billions in revenue that is needed for critical government programs.”

“Friday’s hearing provided additional momentum by clearly demonstrating how regulated Internet gambling could protect against underage and compulsive gambling and ensure the integrity of financial transactions.”

The article covered Combating Underage Gambling with Andrew Poole, head of online services for GamCare providing testimony that a robust regulatory policy can combat underage gambling and manage potential for harm. He is quoted as saying “We are satisfied that if the move towards more responsible operation continues to gather pace, as is increasingly observed across Europe and the rest of the world, that the continued legitimate development of the industry need not be off-set against significant increases in problematic gambling,” said Poole. “Robust, formal regulatory frameworks undoubtedly represent the best opportunity for achieving this.”

From there it moved on to Addressing Compulsive Gambling and Keith Whyte, executive director of the National Council on Problem Gambling discussed the opportunity to use technology and controls now available on the internet to combat compulsive gambling. “Problem gambling is a serious and even life-threatening mental health disorder,” said Whyte. “However, the graphical and interactive structure of the Internet provides a revolutionary opportunity to create informed consumers with access to a variety of information designed to encourage safe choices and discourage unsafe behavior. The technology also exists, unlike for other forms of gambling, to allow players and operators to set limits on limits on time, wagers, deposits, etc … as well as to exclude themselves. Clearly gambling on the internet raises some difficult issues, but it provides theoretical opportunities for operators to deliver responsible gaming programs that meet or exceed current standards in the ‘bricks & mortar’ gaming industry.”

Protecting Against Money Laundering, Fraud and Identity Theft was another topic addressed in the hearing with Jon Prideaux, chief executive of Asterion Payments and a former senior executive at Visa providing testimony that it is feasible to protect consumers in a regulated environment. “On the basis of my experience I can unequivocally state that Internet gambling can be regulated, and that abuses can be effectively regulated and controlled,” said Prideaux. “Regulation ensures that players get a fair deal and are not cheated. … We owe it to people who have experienced problems with Internet gambling in the past to introduce a regulated environment where the proper protection can be provided to the vulnerable.”

There were several industry leaders available that spoke on the concerns of online gambling. Read the article at TodaysTMJ4 for the original copy.

The GIGSE or Global Interactive Gaming Summit & Expo as its formally known, is usually the online gaming industry’s biggest event, last year drawing 1800 attendees. Then came the arrests of online gambling executives while in the US and the attendance at this year’s GIGSE drew about half that amount. In an article in the Philadelphia Daily News they take a look at what happened and the repercussions.

“Last July, David Carruthers, the chief executive officer of BetonSports.com, was arrested in Texas and charged with 22 counts of racketeering and fraud. Carruthers is under house arrest and awaiting a trial date… His arrest marked the beginning of a government crackdown on the $12 billion online-gambling industry. And it convinced officers of those companies that it would be wise to avoid visits to North America.”

“There’s a lot of fear,” Robert Gustavsson, marketing director for Snowmen Solutions, an online-marketing and technology company out of Stockholm, Sweden, said of the sparse attendance. “People are stressed.”

“The annual conference…attracts online-gaming operators, regulators and technology manufacturers from around the globe”.

“Because of the new law, most of the companies won’t take U.S. clientele anymore, so those U.S. customers are gone now,” said Mark Balestra, publishing director of River City Group, which puts together the GIGSE event. “The law is a setback for the industry.”

Among those absent from the event were many foreign online-gambling companies that had relied on the US customers for most of their business.

Way back in March, Neteller announced that it had signed an agreement with USAO and Navigant to outline terms and a timeline that Neteller would use to re-distribute the confiscated funds of its US customers. “The Group is pleased to announce that on 20 March 2007, it signed agreements with the USAO and Navigant which, among other things, outline terms and a timeline under which NETELLER will work toward the orderly distribution of funds to its US customers. Per the agreements, the Group anticipates that within the next 75 days it will announce a plan by which the funds will be distributed to US customers. Navigant will also provide a report to the USAO on the Group’s current financial condition.”

That deadline is today. There are a lot of antsy people waiting for this information, many of who belong to the Neteller Customer Coalition. There is a lot of speculation on who’s funds will be released and what conditions if any will be attached to it. Most agree the dollar amounts will play a deciding factor in the repayment structure. Players with small amounts will probably be on the short list for receiving funds while players with larger amounts will have to worry about availability of funds not to mention IRS requirements. You can be sure the IRS has made a list and checked it more that twice for all accounts with monies over 10K to make sure the right forms were filed and taxes paid.

Bloomberg reports that PartyGaming has been voluntarily having talks with the US Department of Justice about their activities before the UIGEA was signed last year. “…the world’s biggest Internet poker company said it has held discussions with the U.S. Department of Justice relating to its activities prior to October last year, when the country outlawed Internet gambling.”

PartyGaming is ” “voluntarily” responding to a request for information from the U.S. Attorney’s Office for the southern district of New York, PartyGaming said in a statement, adding that it’s too early to say what the outcome will be.”

““If PartyGaming can positively resolve this it will be good news for the share price,” because anxiety about legal issues has been “holding up potential M&A activity,” said Julian Easthope, an analyst at UBS AG in London. Potential acquirers and lenders are concerned about possible future legal action or costs related to past activity in the U.S., Easthope said.”

It would be nice to know what kind of information is trading hands in these talks and how far PartyGaming is willing to go…what kind of deals they are willing to make to ensure the price of their stock.