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Status of VIP Profits
October left no shortage of excitement for the online gaming industry, and brought with it some new challenges to overcome. We are historically very good at overcoming challenges, so not to worry!
On September 30th, 2006, the U.S. Congress passed the SAFE Port Act, which also contained certain provisions known as the Unlawful Internet Gambling Enforcement Act of 2006. This Act effects the processing of payments between online gaming companies and US customers.
President George W. Bush signed the legislation into law on (talk about irony…) Friday, October 13th, 2006.
The impact of this bill has been varied to date, and will not be entirely known for months to come. Some companies have decided not to offer their services to US customers any longer, while others are operating normally and uninterrupted.
The VIP group continues to offer services to all customers.
This bulletin will, most importantly, update you on the status of VIP Profits and our merchants after recent events. Some other very important updates are also included, so please read on.
VIP Profits merchants back to private ownership
That same Friday the 13th, Leisure and Gaming Plc announced the sale of all its US facing businesses, in a show of compliance to the legal developments in the US. This will allow the company to operate and grow its UK and European operations, free of any potential contravention of US regulations.
This means that the industry leading US facing brands are again secure under private ownership. This group of sites includes VIP.com, Nine.com, BetGameDay.com, EnglishHarbour.com and more.
These sites are still servicing all gaming enthusiasts world wide, including US based clients, and affiliates can continue promoting these high-conversion sites and get credit for all traffic referred.
It’s business as usual! So, and I quote “Stay the course!”
VIP.com Poker and US Players
As a member of the Microgaming Poker Network, VIP.com Poker will no longer be able to offer access to US players from the following states:
Michigan, Illinois, Louisiana, Oregon, Wisconsin, Washington, Indiana, Nevada, New York, New Jersey and South Dakota
Please note that this only applies to the Poker product. Players from these states will still be able to make use of all other products.
These exceptions aside… it’s business as usual.
Cashier options for Players and Affiliates
While the US government has until July 2007 to define how banks and financial institutions must comply with the new regulations, some processors have made their own interpretation of the law and chosen their course already.
FirePay is no longer allowing transactions from US customers as of October 26th, 2006. Moneybookers has taken the same stance, although they have yet to issue an official statement.
VIP Profits merchants offer over 10 cashier solutions and are continuously looking for respectable and trustworthy additional options.
Aside from the 2 processors mentioned above, it’s business as usual for all of our other processing partners!
Points for Affiliates to consider…
It is still very unclear what this new law will mean for US webmasters promoting gaming operators, and lots of speculation is circulating online. If you have any legal questions at all, we always recommend to retain your own legal counsel.
I would recommend that you stay calm and evaluate the situation from all angles before you make any significant decisions about the future of your affiliate business.
In the interim, I am recommending that affiliates add simple legal disclaimers to relevant pages of your site. An example disclaimer is as follows:
“The information present on this web site is intended for entertainment purposes only. Please check your local, state and provincial laws before you gamble online. If your local laws prohibit online gambling then we recommend you consider an alternative form of entertainment.”
You should also consider hosting your website outside of the US to avoid any interruptions in your service. To secure hosting in a gaming friendly jurisdiction such as Great Britain, Antigua, Costa Rica or Canada would be even better.
Also recommended for US based affiliates, although a bit more costly, is to create an offshore corporation to transfer your domains to and to receive your commission payments. Costs are generally under $2,000 and will vary per country.
Again, if you have any questions, consult an attorney that is competent enough to advise you on the best ways to reduce your exposure under the new laws.
Other News:
Nine.com joins VIP Profits
Nine.com will be joining VIP Profits in the second week of November. This popular entertainment brand will be moving from the ASI software platform to the IGW platform, currently used by all VIP Profits merchants.
This also means that all 9am affiliates will be joining us at VIP Profits – very exciting!
It is our mission to make this transition as smooth as possible and you will be kept updated throughout the process.
Additionally, this means that VIP Profits will also get some cool updates.Stay tuned for more on this, as important details will follow!
Poker Data and commissions
For the past two months we have not been able to pay affiliates for poker revenues. This is due to issues we have had with the data we have been receiving from the download poker client.
There is good news: all the correct data for August and September will be added to the commission payments for October.
Starting next week, the system will update Poker Data on a weekly basis, so you will have better visibility into your poker commissions.
The Poker numbers currently displaying in the online stats are not yet correct.
We apologize for any inconvenience this may have caused. If you have any questions about this, please feel free to let us know!
Make sure to stay tuned for more updates!
In the meantime we have Football and Basketball to promote on the sports side and the Breeder’s Cup around the corner in horse racing!
Check out the banners for these current events in the Self Updating Section of your account.
Till next time… Stay the course!
