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FRANK LAUNCHES NEW ATTACK ON ANTI-ONLINE GAMBLING REGS
New bill seeks to stop implementation of unworkable UIGEA regs in its tracksFollowing the recent Congressional hearings in Washington on the Unlawful Internet Gambling Enforcement Act, few can doubt that government agencies and the financial services industry required to police it have a monumental task in thinking up practical ways to implement this flawed law passed by Congress in 2006.
This week that task may have been made tougher by new legislation – H.R.5767 – introduced by influential House Financial Services Committee chairman Barney Frank and Republican presidential aspirant Ron Paul.
According to a statement from Frank and Paul, HR 5767 introduced this week seeks to prohibit the Federal Reserve Board of Governors and the Treasury secretary from “proposing, prescribing, or implementing any regulation that requires the financial services industry to identify and block Internet gambling transactions.”
If approved, the Bill will effectively curtail the further operation of the UIGEA.
Frank’s new initiative comes after intense criticism of proposed regulations drafted by government agencies to give teeth to the Unlawful Internet Gambling Enforcement Act, which was designed to disrupt financial transactions with online gambling companies but places the burden of enforcement on the U.S. financial services industry.
Both Congressmen claim the UIGEA unduly infringes upon personal freedoms. “The ban on Internet gambling infringes upon two freedoms that are important to many Americans: the ability to do with their money as they see fit, and the freedom from government interference with the Internet,” Representative Paul said.
Critics protest that the UIGEA is impossible to implement due to ambiguities in its language and a serious lack of definition, together with the impracticality of tasking an already stretched financial services industry with its complicated enforcement across a variety of financial and in many cases international instruments.
Congressman Frank has highlighted these flaws, saying: “I believe that even those who agree with it ought to be concerned about the regulations’ impact,” and pointing out that the recent Congressional hearing had showed that “the regulations are unworkable for the financial services industry.”
Federal government executive Louise L. Roseman to an extent confirmed that, warning that banks had expressed uncertainty about implementing the law at the hearing on April 2 (see previous InfoPowa report) and commenting on the difficulty in drafting effective supporting regulations.
“The payment system, frankly, isn’t well designed to be able to identify this activity,” Roseman said.
Congressman Frank has another card ready to play in his fight against the UIGEA. His HR 2046 Internet Gambling Regulation and Enforcement Act currently has 48 co-sponsors and seeks to regulate and licence online gambling in the United States, raising tax revenues at the same time as controlling the popular pastime of Internet gambling. If eventually passed, this bill could effectively overturn the UIGEA, although it is still in need of more political support.
A spokesman for the anti-UIGEA pressure group Safe and Secure Internet Gambling Initiative, Jeffrey Sandman applauded the new bill, saying: “The Frank-Paul bill would stop the U.S. government from taking any further steps on regulations that would require all of the country’s financial institutions to block Internet Gambling payments.”
“It’s a bold move, but a necessary one, in light of the warnings from the Treasury and Federal Reserve that they did not know how to write regulations to solve the problems created by UIGEA. Further, witnesses representing a broad spectrum of the financial services community unanimously stated that the current ban on Internet gambling is dangerous to the payments system and ineffective in stopping people from using the Internet to play poker, make bets on horses, or engage in other types of wagering.”
BANKERS APPLAUD ATTACK ON UIGEA (Update)
“We certainly appreciate the interest,” says banking associationThe Washington DC publication The Hill reports that the banking industry is cheering the fresh assault on the UIGEA (see previous InfoPowa report) mounted by House Financial Services committee chairman Barney Frank (D-Mass.) and Congressman and presidential aspirant Ron Paul (R-Texas).
Congressman Frank has teamed up with the libertarian-minded Paul, who crusaded against big government during his recent White House bid, on legislation to block the contentious 2006 legislation by forbidding federal officials from writing rules to implement it. Those officials have already admitted that the regulations supporting the UIGEA are proving difficult to draft, with strong opposition from the financial industry that is required to act as policeman for the federal government.
“I don’t know what can be done or will be done legislatively, but we certainly appreciate the interest,” said the top lobbyist for the American Bankers Association , Floyd Stoner, of the Frank-Paul legislation.
Frank’s new legislation attacks the practical hurdles regarding the implementation of the Unlawful Internet Gambling Enforcement Act, rather than its legitimacy.
“While I do disagree with the underlying objective of the act, I believe that even those who agree with it ought to be concerned about the regulations’ impact,” Frank said in a statement. He argued that the regulations proposed by the Federal Reserve and the Treasury were “…impossible to implement without placing a significant burden on the payments system and financial institutions.”
Supporters of banning online gambling have been quick to respond to the latest attack on the UIGEA, vowing to beat back the new effort to undo the law.
“Our office will vigorously oppose any efforts to repeal or water down any parts of the [federal law],” said Ryan Patmintra, a spokesman for Senate Minority Whip Jon Kyl (R-Ariz.), who was a chief sponsor of legislation to ban online gambling in the Senate.
“It’s another attempt to take apart a bill that was passed overwhelmingly by the House,” said Tom McClusky, the vice president for government affairs at the Family Research Council , which had pushed hard for the federal crackdown. He noted that 48 state attorneys general had pushed for the federal law to enforce their state bans.
The National Football League and other professional and amateur sports organisations are also gearing up to fight Frank’s new law, threatening to “vigorously oppose” the legislation, said Martin Gold, a lawyer at Covington & Burling and a longtime lobbyist for the NFL.
Federal law is murky on what constitutes illegal gambling online. Congress stopped short of defining it clearly in the 2006 law, directing the federal government instead to enforce state laws restricting such activities. It also excluded online horserace betting from the crackdown.
Now, writing rules to implement the law is bedeviling regulators. “The challenge we have is interpreting … federal laws that Congress itself isn’t sure what they mean,” Louise Roseman, a Federal official, testified on April 2 before Frank’s committee.
The banking industry has flooded the Treasury and the Fed with complaints about their proposed rules, arguing that it is too difficult for banks to sort out payments for legal wagers — such as on horse races — and those that are illegal.
“The banking system is just not set up to sort out whether one payment is a legal payment and one payment is not,” said the director of congressional affairs for the Independent Community Bankers of America , Steve Verdier. “We think the [Frank-Paul] bill would give everyone the chance to take a breath.”
Charles Rothfeld, a lawyer at Mayer Brown who has argued several cases before the U.S. Supreme Court, said that the Frank-Paul legislation is not likely to pose any constitutional problems. “Congress gets to say the way in which its legislation is implemented. If it wants to issue legislation to preclude the promulgation of regulation, it can do that,” he argued.
The Hill reports that aside from the banking industry, the Frank-Paul bill also has support from gambling aficionados and firms.
The American Gaming Association , which says its members do not include online gambling operators, has not taken a stance on the bill and remains “neutral” on the 2006 law. However, the association supports a bill sponsored by Representative Shelley Berkley (D-Nev.) to commission a one-year study of online gambling by a third party.
FRANCE GEARING UP FOR ONLINE GAMBLING (Update)
Major new policy now evolvingThe French daily newspaper Aujourd’hui en France has confirmed earlier reports in Le Parisien (see previous InfoPowa reports) that France is moving toward the regulation rather than prohibition of online gambling, perhaps as early as 2009. The newspapers report that “everything is ready” for France to initiate discussions on its proposed framework for online gaming and betting.
In current moves, former MP Bruno Durieux handed in the results of a study he carried out on online gambling for the French finance inspectorate at the end of last week, and President Nicolas Sarkozy is expected to give his final approval for the policy shift in the near future.
President Sarkozy has displayed a more open mind to a competitive betting market in France, and Budget Minister Eric Woerth and other French government representatives have held talks with European Commission officials in Brussels this year.
Woerth disclosed earlier this week that the president favours a controlled approach to opening up the market, ensuring that competition is even and balanced.
The timeframe for “a new era in online gaming and betting” is thought to be towards the end of “2009 or early in 2010”, according to Woerth.
Reports suggest that France intends to develop a new “system” for online gaming and betting in partnership with other EU states such as Belgium, Germany and Holland, rather than adopt existing models such as those in the UK or Italy. An initial steering committee will gather at the end of April to move this agenda forward.
At a national level, operators will have to be licensed to offer their services in France and conform to the system, with strict guidelines relating to money laundering and player protection.
In his latest disclosures, Minister Woerth said that France was not acting under threat from the European Commission (which has engaged with the French on the country’s monopolistic gambling policy) but to address the changes brought in by technological developments and the Internet. He added that horse racing betting had to evolve, but he would not allow fixed-odds betting products to be offered on the sport.
For other sports such as football, fixed-odds bets would be offered, but Woerth added: “A sports bet is not betting on the colour of a tennis player’s jersey. The bet must be linked to the sporting performance, if not it can be the source of all kinds of dubious activity.” The French government would also expect to share in betting revenues by way of taxes, he added.
Regarding online casino and poker gaming, these activities will be licensed, although further study is necessary, Woerth said. Slot machines are for now at least not approved on grounds that these types of gambling were thought to be too addictive, the minister said.
Formerly one of the most aggressive opponents of any competition to its state gambling monopolies, France along with 9 other recalcitrant EU nations has been under increasing pressure from the European Commission, which is determined to enforce European Union requirements that member nations in the trading bloc permit free passage of goods and services with other members.
LADBROKES LAUNCHES NEW ‘THRILL BUDS’ AD CAMPAIGN
Adventure the theme of latest GBP 2 million advertising pushUK gambling group Ladbrokes has launched its latest campaign, a GBP 2 million initiative crafted by M&C Saatchi to promote the company’s online casino.
Shot in South Africa, the ad. “Climb” drives the campaign and is the first in a series that show adventurers pushing themselves too far in their quest for the ultimate thrill. The tagline, “Quench your thrill buds,” makes the point and attempts to tap into the emotional thrill of playing online casino games.
Shot in a documentary style, “Climb” is narrated by the local mountain man Nolbert Fernandez, who tells the story of his friend Pedro – a man who can’t “quench his thrill buds”. Pedro goes to ridiculous extremes to get his thrills by climbing in increasingly dangerous ways, which ultimately leads to his downfall.
The mockumentary concludes by suggesting he should have “quenched his thrill buds” at Ladbrokes Casino.com instead of risking mortal danger.
Shortly after television advertising was opened up to gambling advertisements in Britain late last year Ladbrokes begin running the first nationwide TV advertising by a major bookmaker with a GBP 5 million campaign entitled ‘café,’ again developed by M&C Saatchi.
The campaign had a tag of “everyone’s got an opinion” and a football flavour, and starred sports personalities Ian Wright, Lee Dixon and Chris Kamara as well as Rangers’ Assistant Manager Ally McCoist as builders enjoying a fry-up in a traditional café. TV presenter Kirsty Gallacher appeared as a waitress, with the original TV pundit Jimmy Hill, 79, making his screen comeback as the chef.
eWALLET FIRM DEPARTS U.S. POKER SCENE
ePassporte calls it a day, citing US enforcement activityThe California based e-wallet service ePassporte appears to be about to exit the United States online poker market, although as InfoPowa went to press Sunday this had not been confirmed by a general public statement from the company.
However, both Cake Poker and Full Tilt Poker have been advised by ePassporte management that “…a widespread investigation of Internet gambling, including poker” by the United States Attorney’s Office for the District of Southern New York” is responsible for the decision, according to online media reports from Poker News.com.
Back in the day when Eliot Spitzer controlled the New York AG’s office it conducted a number of busts involving online gambling and ancillary services, such as the prosecution against Neteller.com’s founders which was eventually settled for well over $100 million.
“Although we do not believe we have done anything illegal, we do not wish to be associated with anything that might be considered illegal by the United States Government,” a communication sent to poker operators by ePassporte on Friday is understood to have read.
A Cake Poker email to players advised: “We have received notice from ePassporte today that they are unable to continue to provide CakePoker with merchant e-wallet services. We have since confirmed that this situation is not unique to CakePoker and is, in fact, industry wide.”
Full Tilt Poker told its players: “We have recently been notified by ePassporte that they are no longer able to facilitate deposits or withdrawals between ePassporte and Full Tilt Poker player accounts.”
LUCKY ONLINE GAMBLER
Two royal flushes in 3 days – and this is not the first time!The Golden Tiger online casino reports an exceptionally lucky online gambler this week, identified only as “PS”, who has scored two royal flushes and picked up a GBP 100 000 jackpot for each….all within 3 days.
The British player defeated all odds this month by hitting his second royal flush in only three days…and as recently as February this year he managed to do the exact same thing, and then again in March 2008, bringing his total winning balance up to GBP 400 000 in a mere three months, reports Golden Tiger spokesperson Emma Hall.
The royal flush is rare enough to be remarkable and is the best hand in poker, consisting of a 10, jack, queen, king, and ace all of the same suit. Probabilities of being dealt such a hand are over 600 000 to one.
Golden Tiger belongs to the Australian online gambling group Casino Rewards, which recently acted the white knight in taking over six failed online casinos from the liquidated Casino Action group, also Australian owned.
MORE BIG WINS AT CASINO REWARDS
Online casino group reports another double jackpotLast week it was a British player at the Golden Tiger in the Casino Rewards group who had scored two royal flushes and picked up a GBP 100 000 jackpot for each….all within 3 days (see previous InfoPowa report). This time around another online casino in the same group – Blackjack Ballroom – reported making another lucky player wealthy after dishing out two jackpots in two days totaling more than $200 000.
Seasoned video poker player PL from Idaho collected the serious cheque with two royal flushes in a 48 hour period.
“I won $200 000 by hitting two Royal Flushes within two days,” PL recounted. “This money is going to pay off my mortgage, student loans and start a very good savings account for my children to help them in their future.”
Casino Rewards, an Australian owned group that recently acquired 6 premium online casinos from the liquidated Casino Action group, claims a total of 11 major jackpot winners in March alone at its range of 18 online gambling venues.
ROUSSO COURT DATE CHANGED IN ONLINE GAMBLING CHALLENGE
Washington dispute will now be heard May 15After many months of legalistic stonewalling by Washington state representatives, it looks as if Seattle lawyer Lee Rousso is at last to get his day in court to challenge the constitutional legality of draconian state bans on Internet gambling.
Probably hoping to bury Rousso’s challenge in demands for volumes of personal information, Washington state legal representatives have for months delayed the hearing as part of the discovery process. Rousso fought this on grounds that certain information is personal, confidential and is entitled to Fifth Amendment protection.
Initially defeated on this aspect by the King County Superior Court, Rousso took the issue on appeal, and this week secured a largely favourable ruling from Judge Mary E. Roberts that enables him to move forward with the real case – a challenge to the Washington state laws on online gambling after one more requirement is answered.
Rousso, a lawyer and the state representative for the Poker Players Association, is questioning the constitutionality of Washington’s player-centred online gambling ban, and keeps PPA members informed of progress on the association’s website.
He contends that there is a strong and constitutionally illegal element of protectionism in legislation passed by a state that has licensed many other forms of (land) gambling despite its moralistic claims. Protecting the state’s licensed gambling venues would be a violation of the U.S. Constitution’s commerce clause forbidding individual states from passing protectionist laws.
Rousso’s court date has now been postponed to May 15 from the original April 25, and the PPA is encouraging those members who can to make an appearance at the court in a show of solidarity.
BWIN DEFENDS ONLINE GAMBLING IN SLANDER CASE
Austrian online gambling group strikes back for the industryThe Vienna-listed online gambling group Bwin has revealed that it has taken the organisers of the French Open tennis tournament to court for slander in a legal counterattack following litigation to ban Internet betting at the Grand Slam tournament.
The case dates back to February this year, when the tennis organisers filed complaints in Belgium and Paris claiming that computer betting companies stain the reputation of the clay-court championship.
“Following claims by the French tennis federation that services offered by online sports betting operators present a danger to the ethics of sport, Bwin is suing the organisers of the French Open for damages before a Paris court,” a Bwin statement advised.
A Belgian court in Liege heard arguments in the case last Friday and is expected to rule before the French Open starts on May 25.
The issue of integrity in tennis surfaced last year when an online betting site – Betfair.com – voided all wagers on a match in Poland between fourth-ranked Nikolay Davydenko and 87th-ranked Martin Vassallo Arguello because of irregular betting patterns.
The French federation is suing Bwin, Betfair and Ladbrokes – demanding a court injunction to stop these companies from taking bets on the French Open. It seeks a fine of Euro 50 000 euros a day for any violations (see previous InfoPowa report).
Bwin spokesman Antoine Costanzo claims that the head of the French tennis federation made slanderous comments when he launched the court case and that his company seeks Euro 1 million in damages as a consequence. Bwin claims legal standing because it is a major provider of online gaming entertainment.
Countering the allegations of French Open organisers, the European Gaming and Betting Association said that the Internet is an excellent tool to trace any irregularities in betting operations. The organisation, which has most of Europe’s top online gambling companies among its members, said Internet operations left “…a perfect audit trail, one that can, where appropriate, be shared with regulators and other authorities in order to trace bets and hence provide valuable evidence in the fight against fraud.”
French Open organisers said that betting companies are tainting the reputation of the tournament and unfairly using it as a way of making money. They argued that if a match-fixing scandal hit the French Open, it would undermine the value of the tournament, which in 2007 had revenue of Euro 118 million and attracted 450 000 fans to Roland Garros.
The EGBA insisted betting companies stood to lose just as much. “Any match-fixing would penalise bookmakers severely as they take financial risk when setting odds for all sporting events,” it said in a statement.
Vienna-based bwin has said it was confident it would be able to stave off the legal challenge, insisting it does no more than offer a fair and legal service. Along with football and horse racing, tennis is among the most popular sports to bet on in Europe.
AIRBORNE MESSAGE FOR ONLINE POKER SITE
“Poker Excitement” is PKR’s slogan in helicopter campaignPKR.com’s marketing director Simon Prodger is nothing if not adventurous in his marketing tactics, this week introducing a new airborne campaign to get the PKR message across in big, bold letters.
The 3 D online poker company has commissioned a giant banner three-quarters the size of a football pitch which, when trailed through the skies behind a helicopter, will be seen by millions in the London area.
The company worked with Helicopter Overcity Banner Systems to produce the 25 000 square foot “Poker Excitement” banner which will be used in and around London during major sporting events.
Prodger claims the banner is visible for over 10 miles and with three flights already undertaken, he’s pleased with the results, saying: “It’s a pretty awe-inspiring spectacle, and one that no one expects to see. We’ve had reports of sightings from all over London, and people have even been sending in their own camera phone images of the big banner.”
Next time a giant shadow passes over, look up to see PKR’s flying advert, especially on April 26 when the next banner flight takes place over central London and Stamford Bridge during the Manchester United vs. Chelsea Premiership match
WAGERWORKS LAUNCHES ON BOYLESPORTS
Fully managed online casino solutionWagerWorks/IGT announced this week that Irish bookie group Boylesports has ‘gone live’ with its fully managed end-to-end online casino solution. The new system replaces that previously used from Chartwell Technology, and integrates with the Finsoft MarginMaker sportsbook platform.
The new, fully managed system gives Boylesports full access to WagerWorks’ entire suite of casino games, allowing its casino to provide players with top quality online slot games. A Wagerworks spokesman said that the feature- rich WagerWare casino platform will additionally assist in Boylesports marketing campaigns through better data mining and player database management.
Boylesports’ new casino offering will augment their existing platforms and be available across all of their online betting and gaming sites.
Commenting on the agreement, Tom Kenny, Commercial Director of WagerWorks, said, “Boylesports required a fully managed solution that was adaptable as well as progressive. Our ability to provide a full turnkey casino solution, along with a steady stream of proven quality game titles, will let Boylesports provide its players with top-performing games now and in the future.”
Conor Grant, Head of Gaming at Boylesports, commented: “We had a very specific brief and were also aware we needed a supplier who ensured the integrity of our brand. WagerWorks’ overall package and brand image fitted our needs best. We look forward to a fruitful future with them.”
The integration to the Finsoft MarginMaker sportsbook platform will allow other Finsoft customers access to the high quality content available from WagerWorks, which is now able to offer integration to both Orbis and Finsoft, two of the leading sportsbook providers.
BWIN REPORTS NET PROFITS OF OVER EURO 50 MILL
Vienna listed betting group achieves an important turnaroundBwin, the Vienna-listed group that is a major force in the European online gambling sector has released 2007 results that show a turnaround for the business year, with net profits of Euro 50.4 million, a major improvement on the losses of Euro 539.6 million euros in the previous (2006) year.
Adjusted operating profits were Euro 72.8 million in 2007, after losses of Euro 585.8 million in 2006, and gross gaming revenues surged 21.4 percent to Euro 350.3 million.
The company statement said Bwin had experienced the strongest organic growth across the European industry over the 12-month period to the end of December 2007 and had enjoyed record gross and net gaming revenues during the fourth quarter of 2007, as well as achieving revenues higher than those achieved before the company’s voluntary exit from the US and Turkish markets due to legislative developments in those countries.
Fourth-quarter profits were up to Euro 51.2 million, after a loss of Euro 489.8 million in the same period in 2006.
The turnaround was mainly due to a reversal in impairment charges in connection with the company’s acquisition of Ongame Group, an online gaming company, Bwin said.
Earnings before interest, taxes, amortization and depreciation (EBITDA) was Euro 13.2 million, compared with a negative EBITDA of Euro 2.6 million in the fourth quarter of 2006.
Bwin has shifted its focus on its core markets and products following , and in the future it will seek to increase its sports sponsoring activities, where legally possible. The record gross gaming revenues it had enjoyed were the rersult of the strong performance of its core sports betting and poker products, the company revealed, saying this justified its strategy of investing in proprietary poker and sports betting platforms to safeguard future earning potential, and of cautious regional diversification.
Gross gaming revenues for the year were up 21.4 percent to Euro 350.5 million (2006: Euro 288.6 million). Sports betting gross revenues were up 19 percent to Euro 191.9 million, and annual margins were 8.7 percent.
Poker in Europe appears to remain a strong performer, with Bwin’s revenues for the year up an impressive 38.6 percent to Euro 82.3 million. Net gaming revenues for the year were up 25.9 percent to Euro 309.7 million (2006: Euro 246 million) despite a fall in the number of active customers to 1 659 819 (2006: 2 162 250).
Trading thus far in 2008 has been strong enough for Bwin to anticipate another record quarter, with gross gaming revenues up 4.7 percent on the previous quarter to date.
POSITIVE SIGNALS FROM POLAND
Senior government minister hints strongly at a regulated online gambling policyThe Deputy Minister of Finance in Poland has reportedly made a public statement this week that the EU country plans to regulate and license online gambling, and this could happen as early as the second half of 2008.
Minister Marek Kapica was quoted in Polish media reports as being pragmatic on the issue, saying: “We cannot control this process anyway and it is better that the budget at least derives some revenues from it.”
Kapica’s ministry is apparently drafting legislation to introduce a regulatory regime, and this will be sent to the European Commission to ensure that it meets EU requirements for the free passage of goods and services between EU member states as required in the trading bloc’s treaty.
STUDY ON INTERNET POKER BILL PROGRESSES
California legislative proposal moves forward to Assembly Appropriations Committee.California legislators appeared to be taking a sensible and pragmatic view of online poker in the state this week as the Assembly Governmental Organization Committee (AGOC) unanimously forwarded a proposal to study the issue thoroughly to the Assembly Appropriations Committee.
AB 2026 calls for the California Gambling Control Commission and the Department of Justice to initiate and carry out a study into factors surrounding the authorisation of online poker in California, reports Cardplayer magazine. The results of the study would be presented to the California Legislature by June 30, 2009 if it is approved.
The Cardplayer report revealed that Democrat Assemblyman Lloyd Levine is the bill’s author (see previous InfoPowa report).
The AGOC hearing took testimony from bill proponents Poker Voters of America President Jim Tabilio and Rod Blonien, who represented the card rooms of Commerce Club, Hollywood Park, the Lucky Derby, the Lucky Lady, Garden City and Lucky Chances.
“Many of the clubs that I mentioned are maxed out on Friday and Saturday nights. We have more players than we have seats available,” Blonien said. “Many of those people go home and play online.”
He had some strong opinions on Internet poker, characterising the industry as an unregulated and dangerous place for American consumers. “There’s no place that a law abiding Californian can go (online) and play a level game,” he claimed. “What Californians really need is a government regulated and fair website where they could go to play Internet poker.”
Concerns regarding conflict with anti-online gambling federal law were addressed by the state’s Legislative Counsel on Levine’s request, which concluded that California would be allowed to operate an intrastate card room even with the rules of the UIGEA and the decades-old Wire Act in place.
One group opposed to the AB 2026 was the California Coalition Against Gambling Expansion, a group that wants to decrease the number of gambling options California residents have.
POKERSTARS VIDEO BETA TESTING GOING WELL
Good public response to Pokerstars.tvThe new Poker Stars public video initiative (see previous InfoPowa report) appears to have been well received in its beta testing phase at Pokerstars.tv.
Still in the test phase, the video site provides live webcasts of major events and a unique collection of high quality poker footage. Understandably, there is a marked promotional element that includes current Stars-sponsored events and the latest happenings from the growing Team PokerStars.
A popular element is the tutorial on how to use the facility, which is narrated and presented by ace player Daniel Negreanu and gives an overview of the site content and how to make best use of it. Visitors are encouraged to try the various tabs, which reveal a wealth of interesting and diverse content. There’s a searchable database of filters, so videos sorted by player, event, type of hand, or many other topics can be easily found.
Content is available only in the English language at present, although Poker Stars has plans to introduce its video libraries in other languages, too. PokerStars.tv allows registered users to e-mail video links to other players, or to embed the code for a given video on other websites. Registered users can also ‘customise’ their faves by creating personal video “channels” and selecting their preferences.
BWIN CHALLENGE TO GERMAN BAN HAS A GOOD CHANCE OF SUCCESS
Schleswig-Holstein law adviser says German bans won’t stand the test of ECJBwin Interactive Entertainment AG, probably Europe’s biggest private online sports-gambling company, may win a legal fight that threatens Euro 118 million in annual revenues, or a third of its take, reports the Bloombergs business news service this week.
The service quotes Johannes Caspar, a law professor at Hamburg University and legal adviser to the Schleswig-Holstein state legislature, who says that Vienna-based Bwin may succeed with lawsuits challenging the January 2008 ban in Germany on Internet sports wagering.
Bwin argues the prohibition, approved in all 16 German states, violates European Union law.
“It won’t stand the test at the European Court of Justice,” Caspar said.
The EU’s executive arm the European Commission started “infringement proceedings” against Germany on January 31 this year over the state laws, a process that may lead to an appearance before the European Court of Justice on claims that the ban flies in the face of EU requirements for the free movement of goods and services between EU member states.
The professor’s views come on the heels of the decision earlier this week by Spielbanken Niedersachsen GmbH (SNG) the exclusive Lower Saxony state licensed and regulated casino operator, to enter online gambling using a Chartwell Technology technology package (see previous InfoPowa report)
BETSSON STEPS UP FOR RESPONSIBLE GAMBLING
Swedish online gambling firm offers research scholarshipsKudos to Swedish online betting group Betsson, which has stepped up to contribute to the real need for research into the impact and consequences of problem gambling in the industry.
The company has launched a scholarship for problem gambling research in its native Sweden. The scholarships, each amounting to 15 000 SEK, will be awarded twice a year by a panel of experts knowledgeable in the field of gambling, from a list of candidates pre-selected by the respective student faculty. Betsson has previously used the services of the G4 for responsible gambling guidance.
Formerly known as Cherryforetagen AB, Betsson AB is a publicly listed company, active within the gaming industry. The company is engaged primarily in the provision of casino, automated betting, maritime games, Internet games, lotteries and competitions, and is active though three main business areas: Betsson.com, a betting exchange which offers sport, casino and poker games with 300,000 members mainly from Scandinavia; CasinoEuro.com, an Internet casino which offers casino and poker games in 16 languages for the European market, and CherryCasino.com, an Internet casino for the global market. The company operates through two subsidiaries: Betsson Ltd. and Betsson Malta Ltd.
ECONOMIC DOWNTURN IMPACTS GAMBLING
Analysts take a pessimistic view in the short termReports from the Las Vegas Gaming Wire and mainstream business news outlets are suggesting that times are already tough, and could become tougher, in the gambling industry due to weakening economic conditions.
The LVGJ reports that gaming revenues on the Las Vegas Strip fell 3 percent in February, with the sinking economy, high gasoline prices, airline troubles and other downbeat financial news causing casino customers to stay at home or hang on to discretionary income.
Deutsche Bank gaming analyst Andrew Zarnett painted a bleak picture for investors should Las Vegas visitation and gaming spending continue to suffer, when he opined: “Looking specifically to an individual property on the Strip, we believe a 10 percent decline in revenues, linear across the board, including room rates as well as casino play, will likely lead to an approximate 20 percent reduction in EBITDA.”
Las Vegas casino operators, Zarnett said, have reduced labour hours. What follows will be a reduction in staffing levels to reduce costs, and this has already manifested itself in the 440 lay-offs announced by MGM Mirage this week (see previous InfoPowa report)
Investment firms downgraded gaming stocks recently. Quarterly earnings for the period ended March 31 are forthcoming, but analysts, are not predicting good news. “We see both regional trends and destination markets like Las Vegas and Macau below previous estimates,” Wachovia analyst Brian McGill said.
Goldman Sachs gaming analyst Steven Kent said stock prices are weak and operating results over the next few quarters will be challenged.
In Connecticut, the Connecticut Day newspaper reported: “Slot revenues continued to decline at both the state’s casinos during the month of March, but while the losses at Foxwoods Resort Casino continued to grow, Mohegan Sun experienced its smallest decline in recent months.
Foxwoods saw their revenues slip 12 percent from March 2007 to $60.8 million, while Mohegan Sun’s numbers dropped 1.4 percent to $76.8 million compared to last year.
Both casinos continue to blame the economy for declines in slot revenues and pointed out that casinos in other markets, like Atlantic City, are also struggling with sliding revenues.
Due to the decline in slot revenues, the state of Connecticut will also see lower contributions this year as compared to last year.
Mohegan Sun sent $19.2 million to state coffers, about $264,000 less than last year, and Foxwoods sent $15.2 million to the state, about $2 million less than in March 2007.
Patrons at Foxwoods appear to have cut back on their spending at the casino as the amount of money they spent at the slots, or handle, decreased by 12 percent to $694 million.
GAMING VC TAKEOVER PLANNED?
Mystery approach to acquire online gambling groupPiqueing the interest of online gambling analysts and observers this week was a curt regulatory notice from the non-executive chairman of Gaming VC Holdings SA, Adrian Smith.
In a brief statement, Smith advised that the firm, which includes Casino Club, Casino Club Poker, Betaland and Poker Kings among its online gambling interests, has received a preliminary approach which may or may not lead to an offer being made for the entire issued and to be issued share capital of the Company.
The Board of Directors of Gaming VC Holdings S.A. is considering the approach and will make further announcements as and when appropriate. In the meantime, shareholders are advised to take no action in respect of the preliminary approach.
JACKPOT FACTORY LAUNCHES ONLINE BINGO
All Bingo Club has lots of balls…The Microgaming-powered Jackpot Factory online casino group has entered the world of online bingo with the successful launch of All Bingo Club.com this week.
Under the slogan “We’ve Got Balls,” All Bingo Club deploys the latest bingo technology to bring 90 ball bingo straight to its players’ homes. The bingo action is totally secure and continuous around the clock, backed by a full 24/7 support team.
Mikki G., All Bingo Club’s Manager, said: “Online bingo is very popular here in the UK because it’s a fast moving game that is played for low stakes and in a friendly environment. All of our games have a special chat feature, which is moderated by experienced bingo hosts, who make sure the fun never ends. It’s a great way to spend an evening since it doesn’t cost much and players get to meet loads of people without leaving their home.”
In addition to a GBP 5 introductory offer, All Bingo Club gives players a 100 percent matchplay bonus maxed at GBP 100, on their first deposit. After that, players receive a 25 percent matchplay bonus, up to GBP 25, on every purchase.
ONLINE POKER SITE GRANTED ORDER AGAINST BOSS MEDIA (Update)
Poker Trillion succeeds in freezing Boss bank accountsThe dispute between online poker website Poker Trillion and its former network operated by Swedish Internet gambling provider Boss Media (see previous InfoPowa reports) has resulted in the award of a garnishee (or freezing) order on the bank accounts of Boss Holdings Limited and Boss Media Malta Poker Ltd.
The application, number 532-08, was heard in the First Hall Civil Court, Malta, and the order has been executed at all seven banks in Malta where the Boss Media companies hold bank accounts.
PokerTrillion.com C.E.O Andy Pyrah had earlier commented: “As a small and new entrant to the market we are taking a zero tolerance approach to being mistreated by Boss Media” in a statement on the dispute.
The order relates to a Euro 45 million initial law suit instigated by PokerTrillion.com against Boss Media and its associated companies in various jurisdictions, including but not restricted to, Sweden and Malta.
PLAYTECH ONLINE CASINO DEAL SIGNED WITH BETSSON
Bespoke product to be delivered to Betsson to complement other Internet gambling productsBetsson, an associate company of the major Swedish public gambling company Cherry Fortragen has commissioned online gambling software developer Playtech plc to supply an online casino product to Betsson, itself one of the largest publicly traded online gambling operators to the European market.
Under the terms of the licence agreement, Playtech will provide Betsson with its download casino portfolio, consisting of over 110 games, and integrate its back-end system, allowing Betsson to effectively manage and maximise the potential of the portfolio.
The bespoke product will be tailored to meet the unique demands of Betsson and will cater for a range of local style games, initially in 11 languages, for players based mainly across Europe. The deal also includes the provision of Playtech’s download casino to Betsson’s additional brands Cherry Casino.com and Casino Euro.com.
Mor Weizer, Chief Executive Officer of Playtech, commented: “We are delighted to have reached this agreement with Betsson, one of the largest online gaming operators in Europe, and look forward to a productive working relationship.”
Thomas Kalita, CEO of Betsson Malta Ltd said: “We are pleased to add yet another quality product to our broad offering. Playtech’s proven track record as a software supplier, supported by its wide range of languages is of great value to Betsson especially when
expanding into new territories.”CANBET CHOOSES INCOME ACCESS AS AFFILIATE PROGRAM
Significant marketing leverage in Europe expected to flow from new dealInternational online bookmaker and gambling operator Canbet has selected Income Access as its affiliate marketing program, making available to its affiliates the opportunity to promote a revolutionary football product where punters have access to Live ‘In-Play’ Football Betting on over 500 global games each week, along with a comprehensive selection of live Asian Handicap markets.
Microgaming-powered Canbet offers online poker, casino and live dealer games that give players access to millions in progressive jackpots, over $1 million a week in tournament guarantees, the latest in live gaming entertainment and generous sign up bonuses.
“Income Access is established and respected in the European affiliate market, giving Canbet significant marketing leverage as we become a major player in the United Kingdom, Europe and Asia,” Julia Van Heerden, Head of Marketing & Gaming at Canbet, said.
“We are delighted to be partnering with Canbet and supporting the growth of their affiliate program pioneered by their world-leading Live ‘In-Play’ football betting service and unique products,” Nicky Senyard, CEO of Income Access commented. “Their innovation in the gaming market coupled with an established presence and aggressive expansion plans will be a welcome addition to all our casino, poker and sportsbook affiliates.”
Affiliates can expect to earn up to 35 percent commission on the net revenue generated by their referred players. Attractive benefits include no negative carry over and separate poker calculation. The affiliate program will also offer complete marketing tools including XML-datafeeds, themed landing pages, and special promotions to help maximize revenue for affiliates.
NOSTALGIC STREET FIGHTER CULTURE IN NEW CRYPTOLOGIC GAME RELEASES
Online gambling software developer plans new slot themesThe Dublin-based online gambling software developer Cryptologic is in synch with the current wave of nostalgia for the Street Fighter genre which has seen a resurgence of the late ‘eighties game fighter culture, characterised by the imminent release of Street Fighter IV and a new movie featuring the SFII hero Chun-Li.
Cryptologic will be in the mainstream of the resurrection with the release of a new SFII themed slot game.
Street Fighter made its debut at the gaming arcades in 1987, designed by Takashi Nishiyama and Hiroshi Matsumoto. The player originally took control of a lone martial artist named Ryu, who competes in a worldwide martial arts tournament spanning five different countries and ten opponents. Demanding skill and concentration, the genre evolved and expanded into a far more sophisticated game through the early ‘nineties as technology and trends developed.
Cryptologic’s well established successes with comic character-based games such as its Marvel series undoubtedly helped in its negotiations for the Street Fighter licensing from the current publisher Capcom.
Crypto’s VP for Marketing and Product Development Justin Thouin confirmed this when he commented: “Comic book characters that have a story behind them and have [storylines] that can be integrated and woven into slot machines in a gaming experience really do translate well and players love the experience.”
Much like the video game, in Crypto’s upcoming slot, players will choose a fighter from the likes of Ryu, Ken, Chun-Li, Guile or boss Sagat, and will then battle it out with final boss M. Bison in a 25 payline game.
Scoring five claw symbols will score players a top prize of 5 000 times their line bet and the Street Fighter bonus feature pops up whenever a substitute symbol appears in reel 2 and the M. Bison symbol in reel 4, with the player’s chosen character fighting against the Shadowloo dictator in a re-enactment of the arcade game.
“Street Fighter really ignited the fighting game genre,” Thouin comments. “I think the series has sold more than 500 000 coin operated units and 24 million console games worldwide, so this is a massive brand with huge global popularity and I think it’s going to be a phenomenal experience for players.”
The game will be released initially for InterCasino and William Hill online casinos this week and will hit other online casinos powered by Cryptologic a little later.
AFFILIATE MYSTERY ON JACK N QUEENS
Or “How to make a fast quarter million?”Reports from the online gambling affiliate marketing community are starting to surface regarding what appears to be the failure of an affiliate program that offered members the prospect of million dollar returns at 65 percent commission rates….all for an initial outlay of a thousand dollars for membership. Alas, from accounts by some of those who signed up and paid their cash, it appears it was all too good to be true.
In mid-2006 one Blake Vantrees of a new outfit called Jack n Queens apparently owned by JNQ Global Inc used a bellsouth.net email address to start contacting various online poker webmasters with the attractive offer, advising them that the deal was relatively exclusive in that only 250 affiliates would be taken on board. He gave a money-back guarantee that covered a period of 90 days after beta testing commenced.
For those affiliates that signed up and sent in their money things appeared to be going well for awhile, with communications answered promptly, but towards the end of 2006 the excuses, and erratic communication started. Apparently there was a software development problem with the system, which was supposed to be using webcams to add a new dimension to online poker playing.
However, the concerns of the affiliates were assuaged in March 2007 by the news that alpha testing was imminent.
What happened after that, noone knows. Communications, even via private messaging on forums where Vantrees was known to post, went unanswered and the embryo website for the venture was closed.
Some affiliates claim that Vantrees is still around, albeit keeping a low profile but playing on online sites like Titan Poker as recently as early this year.
Any further information from affiliates still chasing their $1 000 refunds would be welcomed as InfoPowa seeks further confirmation on this story.
L&G REVENUES DOWN
Restructuring impacts businessLondon listed Leisure & Gaming plc has released current results, revealing that its first-quarter gross profit declined to Euro 2.1 million euros from Euro 2.5 million a year ago, but adding that trading in the period was in line with expectations.
In a trading statement, the betting and gaming group said results were below the comparative period in 2007, which benefited from exceptional sports results and was based on a larger estate of shops.
“Having restructured the operations of the company, we are confident that we can deliver sustainable profitability going forward,” Chief Executive Henry Birch said. “Furthermore, we believe that as and when the Italian regulator allows for gaming products such as casino, poker and bingo, this profitability will substantially increase.”
The betting group announced a drop in net win revenues of Euro 6.5 million for the first quarter of 2008 compared with Euro 8.7 million for the equivalent period in 2007.
Extensive restructuring has involved LNG’s main subsidiary Betshop Italia, and the removal of underperforming outlets from the Betshop network and a new operations centre in Italy. The company remains focused on growing its operations in Greece, Cyprus and Romania and has signed an agreement with a local marketing partner to promote Betshop.com in Greece.
Birch said: “Having restructured the operations of the company, we are confident that we can deliver sustainable profitability going forward.”
ENTERTASIA SIGNS UP CRYPTOLOGIC
Asian company follows 888.com agreement with another major online gambling dealFresh from a partnership deal with online gambling giant 888.com (see previous InfoPowa report) Entertasia has signed an agreement with turnkey provider CryptoLogic in which Entertasia will provide CryptoLogic licensees with its Live Dealer software platform. The deal will help licensees to penetrate the Chinese speaking market with relevant online offerings.
Entertasia will initially deliver its Asian gaming platform to one of the best known Crypto licensees, Playboy Gaming. With the launch of the Playboy Asia online gaming site it is creating a brand extension into a new region for the online gambling interests of the renowned global entertainment group.
A CryptoLogic spokesman commented: “We recognised early on that Asia’s e-gaming market has vast potential for profitable growth. With Entertasia as experienced and respected partners, combined with CryptoLogic’s global reputation for innovation, we are poised to make a major impact, not just in China but across the entire Asian region”.
Jason Chan, the CEO at Entertasia, said: “As one of the leading gaming software developers and providers in Asia we are very pleased with the agreement signed with these branded companies, as this will further strengthen our position in this industry”.
MORE SLOTS FROM CRYPTOLOGIC
Intercasino will be the first to receive six new games this monthHard on the heels of its release earlier this week of a new Street Fighter themed slot (see previous InfoPowa report) the Dublin-based online gambling software developer Cryptologic has announced a further six new game launches.
Roamin’ Gnome is a 5-reel, 30-payline Slot in which players follow the Roamin’ Gnome to historic and exotic locations around the world and can win massive cash prizes and free spins. Bets from 1 cent to $600 per spin are possible as the player trys to reach the Holiday Bonus feature game.
Dad’s Day In is a 30-payline Slot game which puts Dad in charge of the house. Minimum wager is 1 cent and maximum per spin is $600. Players who match the fun five Worried Mother symbols can make the whole family happy with winnings of 6 000 times line bet.
Silent Screen takes players back to the early days of movie-making, before anyone had figured out how to make films with audio tracks. Players can wager 1 cent or $500 per spin, with the chance to win 5 000 times the line bet if they manage to line up five or more Goddess of the Silver Screen symbols.
Fantasy Realm is a game for dreamers – online gamblers can escape into a world of fantasy playing this 25-payline Slot. Wager 1 cent up to $500 and the maximum win on a single spin can be as high as 3 000 times the line bet.
Outta Space Adventure is a 25-payline ‘out of this world’ space Slot game. Match three or more Planet symbols and trigger the Free Games feature to be rewarded with a double winnings multiplier and 20 free spins.
Sunday Afternoon Classics is another brand new 25-payline Slot game. Lucky gamblers can win 6 000 times line bet by matching three or more Leading Lady symbols. Wagers from as little as 1 cent or as much as $500 can be made.
SPANISH LICENSING COMPETITION HOTS UP
Intralot among companies that lost out to Will Hill in Basque license bidsThe business and financial new specialists Thomson Financial advise that Greece’s Intralot SA and two Spanish companies were among those which lost out to William Hill plc on the tender for the license to operate the lottery in Spain’s Basque region.
The Thomson sources said Intralot was among the six short-listed parties, which also included Ladbrokes plc.
Winner William Hill will be working in cooperation with Finsoft, a subsidiary of U.S.- based G-Tech Corp.
All is not gloomy for Intralot, however – the company recently said its Spanish unit, Intralot Iberia, had been awarded a five-year license to manage sport betting games throughout the autonomous community of Madrid.
The sources said the Madrid license is not exclusive and there was no tender, only submissions from interested parties. They said William Hill also won a Madrid license and will again be working with Finsoft.
WILL COSTA RICA LAND CRACKDOWN IMPACT INTERNET OPERATORS?
Land casinos subject of significant new restrictionsCosta Rica, the Central American republic that is home to many online casino operators, is currently cracking down on land casino venues within the country in moves that will change the way that such operations are run and could ultimately discourage new casinos being built.
A six month window for the implementation of the new requirements has been provided.
Reports in the local English newspaper AM Costa Rica suggest that any new gambling establishments will have to match 3 star resort with 60 rooms standards and offer complete services. The casino floor space must not accommodate any more than 15 percent of the resort’s total floor space and must not be accessible directly from the street.
Existing hotels with casinos, and stand-alone casinos, must regulate their hours to 8 hours a day from 6pm until 2am – a radical reduction from the current 24 hour operations many venues now offer. The issue of free alcohol is also to stop, and more stringent restrictions on access for minors introduced.
Costa Rican Tourism Minister, Carlos Ricardo Benavides, stated this week that there were other places in the world where the main attraction is gaming such as Las Vegas, and it was not government’s intention that Costa Rica should follow suit. The coluntry also has a new security minister, Janine Del Vecchio which could see a tightening up in enforcement.
Industry observers predict that the reduced hours and other requirements could have a serious impact on operating costs, leading to staff cutbacks. Questions are also being asked regarding the online gambling industry, and whether government will take an equally close look at toughening up regulations in this sector.
Costa Rica filed for World Trade Organisation (WTO) arbitration on January 28 this year, seeking compensation from the United States as a result of the U.S. withdrawal of its commitment on cross-border gambling services.
WSOP EUROPE WILL BE WELL TELEVISED
Sponsor Betfair has released details of Sky TV coverage
The European version of the World Series of Poker sponsored by online gambling group Betfair will be extensively televised, according to an announcement on the 2008 London-based event this week.
The 2008 edition of the series, which begins on September 19th will be covered by Sky Sports Xtra and Sky Sports 2 and 3 from 21 September through 28 September in broadcasts that will reach throughout the UK and Europe.
MARCH MADNESS BUILDS INTERNET GAMBLING TRAFFIC
14 percent gains in online gambling activityOnline gambling activity soared 14 percent during March, according to statistics from comScore which attributed the increase in gambling site visits to the NCAA basketball tournament known as “March Madness.”
The boost came despite the political turmoil in the United States over online gambling, illustrating the continuing demand for the pastime in America.
The UK Internet gambling group Sportingbet increased its traffic by 35 percent to 975 000 visitors, while Upickem.net jumped 174 percent to 396 000 visitors and SportsBetting.com rose 114 percent to 145 000 visitors.
“American sports featured prominently in the top-gaining categories and properties in March,” said Jack Flanagan, executive vice president of comScore Media Metrix.
“The NCAA tournament drove substantial traffic to online gambling sites during the month, while the start of spring training made MLB.com one of the top gaining properties. Both events also contributed to ESPN.com’s surge in the top properties rankings.”
Away from online gambling per se, radio sites continued an upward swing that saw a 27 percent surge in visits in March to 61.8 million visitors, making it the top-gaining category for the month. AOL Music led the way with 21.9 million visitors (up five percent), followed by Yahoo Music with nearly 20.8 million visitors (up four percent) and Clear Channel Online with 11 million visitors (up two percent).
FEDS CLAIM BUSTED GAMBLERS WERE MONEY LAUNDERING
Over $100 million in transactions processed in illegal sports betting operationThe Deseret News reports that federal prosecutors are claiming seven busted Las Vegas residents were involved in an elaborate money-laundering service for illegal Internet gambling sites, which at one point was processing more than $100 million in transactions.
During an evidentiary hearing in federal court this week, federal prosecutors gave a glimpse of an automated cash laundering system that ran parts of its operation in Draper, Utah and in the UK, Korea and Antigua. Prosecutors allege that the system would allow online gambling sites to process credit card transactions without reporting to credit card companies and banks that the transaction was for gambling purposes.
Federal agents gave evidence that U.S.-based gambling patrons would place bets on illegal gambling websites that offered gambling games and sports event betting. The bets were then forwarded to servers managed by Baron Lombardo, Count Lombardo and Richard Cason-Selman.
Gateway Technologies and Hill Financial Services Inc. out of Draper would then process credit card transactions, reporting the transactions as something other than bets. The laundered funds would then be sent back to Web sites.
The accuseds were busted in a major enforcement action in May of last year (see previous InfoPowa reports)
“This process was entirely automated,” said assistant U.S. attorney Loren Washburn, who said the system was run on custom software and complex accounting software.
The operation catered to more than 40 online gambling sites and also did transactions for an online pharmacy, which sold prescription drugs, as well as several adult sites.
IRS agent Jamie Hipwell testified that the investigation uncovered several e-mails in which group members wanted to find a bank that would be willing not to process its transactions with the betting transactions code. Hipwell said the group settled with a Korean bank, which later was fined by Mastercard and Visa for violating transaction policies.
The e-mails also showed group members wondering if they should move their operation overseas to London, England.
Washburn said in addition to the credit card operation, the group also ran a second, more manual system in which gambling wins from websites were wired via Western Union to a contact in the Philippines.
The group was charged with counts involving racketeering, bank fraud, wire fraud and money laundering.
Defence attorneys contend that some of the seven had nothing to do with the credit card side of the operation but rather were focused on the Western Union operation. They are seeking to have charges dropped against their clients.
Attorneys for the group also say much of the government’s witness testimony comes from former employees from the Draper offices who were disgruntled and went to the authorities as ‘whistle blowers’.
U.S. District Judge Ted Stewart will weigh the government’s evidence to determine if it is enough to support taking the defendants to trial, scheduled to begin May 10, 2009.
NEVER A TRUER WORD
US legislative hypocrisy encapsulated in a commentOnline poker information website operator Jay Lakin effectively summed up the hypocrisy of online horse race and state lottery betting legislative carve outs this week in an interview with the Las Vegas Review-Journal.
Commenting on the exclusions from the UIGEA and other federal legislation, Lakin said that he wanted the Internet gambling ban repealed as hypocritical because it included exemptions for horse racing, state lotteries and fantasy sports but not poker.
“That’s like telling me I can go into a liquor store and buy vodka, but no gin,” Lakin said. “I’m just disgusted by it.”
PLAYBANKS DEBACLE NEARS FINALITY
Failed sportsbook owners directed by Malta authorities to settle up with playersThis month will hopefully see the final resolution and payouts to players in the Playbanks affair, a small sportsbook rated “F” by Sportsbook Review which failed in late 2006, leaving players unpaid. The Malta licensing agency the LGA stepping in to safeguard player interests in a task bedevilled by apparently inaccurate records and undeclared chargebacks.
This week Frances Blenheim, the complaints officer at the Lotteries and Gaming Authority on Malta advised players as follows in a notice on the licensing authority’s website:
“Playbanks.com Player Funds Claim PB International Limited – Payment
The Lotteries and Gaming Authority has directed the Management of PB International Ltd., operator of playbanks.com, to pay all players having a legitimate balance on their account.
The Authority contacted all players concerned in January 2008, many players responded and have since been paid the full balance in their player account. However a number of players have not yet responded to collect their funds.
The Authority is advising those players, who are still owed funds to contact us on [email protected]. Legitimate claims by players may be made to the Authority in the following format:
1. Supply of documents to verify identity: copy of passport, copy of Credit Card back and front, copy of Utility bill/Driver’s licence;
2. User name or Account Number used on playbanks.com;
3. Real name, address and contact number;
4. Bank details: Account Number, Account Name, Bank Name and Address, Swift Code, IBAN.
Payment will not be made to Players until the verification of their identity and legitimacy of their claim has been substantiated and approved.
Any claims found to be false or fraudulent will be reported to the Malta Police.”
The owners of Playbanks.com, PB International Limited, closed the site down late in 2006, starting a long train of delays for players who had not been paid out on their account balances despite promises that this would be done timeously. By early 2007 complaints of non-payments were still appearing, although there was still confidence in the LGA’s requirement that customers’ funds must be kept separated from the sportsbook’s money.
By mid 2007 the issue was still dragging on, with Mario Galea, Chief Executive of the Malta Lottery and Gaming Authority, informing Bookmakers Review that the bank statements for Playbanks had just arrived, and the processing for payments would start shortly. Galea added that the delay was caused by many allegedly false claims for payments submitted by players.
Seven weeks later the Review was still receiving emails from unpaid players. Complicating the issue, it appeared that there were inaccuracies in the Playbank records as to who had been paid, and questions about bankwires which were apparently not despatched as claimed. Presumably this caused further delays whilst it was investigated.
This week, it appears that the LGA has managed to find order in the Playbank chaos and that players will, at last, be paid.
440 MIDDLE MANAGERS DISMISSED IN COST-CUTTING MOVE
As the economic slowdown bites, MGM Mirage takes drastic actionMGM Mirage Inc., the largest casino operator on the Las Vegas Strip, told more than 400 middle management employees Monday they would be terminated immediately in a cost-saving move, Associated Press reports.
The decision will save $75 million annually and came after the company saw weakness since August at its properties, which include Bellagio, MGM Grand, Mirage and Mandalay Bay, spokesman Alan Feldman revealed.
The move is the largest and swiftest by a casino operator in the current economic downturn, although the use of so-called “extra board” employees such as dealers and busboys who take fill-in shifts as needed has been down citywide.
“We were able to see the signs of trouble on the economic horizon last August,” Feldman said. “The economy was beginning to worsen and clearly was not going to get better in the immediate term.”
Budget-tight guests have shown a tendency to spend less in all major segments of the business, Feldman said.
“Instead of four days, people stay for three. Instead of a five-star experience, they are going for four stars. Instead of two shows, they’re going to one,” he said. “There certainly is the possibility that there are people who are also making a decision to gamble less.”
The cutbacks were at the middle-level corporate and property management areas in all departments from marketing to accounting and affected employees in Michigan and Mississippi, though the bulk were in Las Vegas.
No further cuts were planned unless the “economy should take a serious dive for the worse,” Feldman said.
MGM Mirage opened the joint venture MGM Grand Macau in December and is constructing another joint venture, the $8.1 billion CityCenter complex, which is set to open on the Las Vegas Strip in late 2009.
