The perfect online gambling bill, what would that entail for an industry and on a national front? Poker, casino games, bingo and even perhaps a bill legalizing all aforementioned forms of gambling, with a no bad actor clause, players joined together on an international level holding hands and singing Kumbaya as jackpot bells echo across the land.

Sounds to good to be true does it? Well perhaps that’s what many believe Peter Kings Bill is, the Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2013, i.e., (UGRCPEA), just to good to be true. U.S. Senator Harry Reid’s Bill failed and he has little hope that Kings Bill will meet greater success.

In 2006, the U.S. Congress enacted the Unlawful Internet Gambling Enforcement Act,(UIGEA) which prohibited acceptance or processing of financial instruments for the purpose of unlawful Internet gambling, but which did not clarify which bets or wagers are prohibited by law.

Many U.S. states are seeking legalization individually – New Jersey, Delaware, Nevada, Illinois to name a few and others seem to be waiting, waiting for the day when online gambling will be given the green light.

Calvin Ayre produced a video outlining Joe Brennan’s (iMega – Interactive Media Entertainment & Gaming Association) speech at the recent New Jersey regulation at the iGaming SUPER Show, Brennan shares his opinion of a focus should shift from “bad actors” to regulation, watch below:

Over on the Shore, New Jersey regulators gave Atlantic City’s casinos until June 30 to submit requests for an online gambling permit although November 26 is the official date for New Jersey’s launch of online gambling.

In the publication release of FAQs for Internet Gaming from the Division of Gaming Enforcement, read the announcement here, Director David Rebuck states, “The Division of Gaming Enforcement is fully committed to a robust Internet gaming system in New Jersey that promotes public confidence in the effectiveness and integrity of the regulatory process and oversight of gaming operations.”

Vendors are required to complete all filings by July 30th.

In an update to Pokerstars battle with Atlantic Club Casino, the parent company to the online poker mega group has issued an appeal of the New Jersey Superior Court ruling. Stars’ $11 million dollar deal was put to rest after a ruling stated their deadline to obtain preliminary approval from state authorities to own the Atlantic City Club Casino had not been met.

“This is a matter of great public importance, to the Atlantic Club’s employees, to the highly regulated casino industry, to (state casino regulators) and to plaintiffs, who invested more than $11 million in the Atlantic Club in connection with the purchase agreement,” Rational wrote in its appeal.

Rational Group’s appeal claims Superior Court Judge Raymond Batten “misconstrued” the purchase agreement, making many errors on behalf Stars’ parent group as he “improperly considered” testimony from Atlantic Club’s witnesses and considered included documents that were not formally entered as evidence.

Pokerstars’ filing of the appeal comes days after CEO Mark Scheinberg signed a consent order of forfeiture of $50 million dollars in a settlement with the U.S. Department of Justice.

Stay tuned for more on this case as we are sure this is going to get good.

In this week’s weekly recap of online gambling news, we take a look at EU consumer protection and the Internet Gambling Regulation, Consumer Protection and Enforcement Act 2013 and various other top stories that have impacted to online gambling industry.

U.S. Republican Congressman Peter King offered a bill Thursday to license online gambling at the federal level. King, a member of the House of Representatives since 1993, introduced his Internet Gambling Regulation, Consumer Protection and Enforcement Act 2013, the stated intention of the bill, to regulate Internet gambling, to provide consumer protections, and for other purposes.

“A common federal standard will ensure strong protections for consumers, protect against problem and underage gambling and make it easier for businesses, players, lawmakers and regulators to navigate and freely participate,” said King.

The aim of the bill would give states/Native American tribes the right to opt-out of a federal system and keep their own internal gaming practices. It would also let states hold online lotteries, a measure that might win support from states that oppose other online gaming legislation.

Nevada Online Gambling

Over in Nevada, Governor Brian Sandoval has been granted permission, to act on behalf of the state, to enter into agreements with other licensed jurisdictions, including U.S. states, tribal and foreign governments in related to online gambling compacts.

The recent approvals fall under the amendments in Assembly Bill 360 (AB360), it defines eligible compact partners as “any governmental unit of a national, state or local body exercising governmental functions, other than the United States Government. This term includes, without limitation, any such governmental unit that has authority over gaming and gambling activities.”

EU, Consumer Protections

The European Parliament’s Committee on Internal Market and Consumer Protection voted 32-3 in favour of stricter guidelines and stronger consumer protection within the online gambling industry this past week.

“Gambling is an economic activity of a special nature, where restrictions are needed for consumer protection, fraud prevention, the fight against money laundering and the preservation of public order and public health,” EPP group spokeswoman Sirpa Pietikäinen MEP said.

There will be a “reliable electronic identification” to protect players on a higher level as well as minors, and to help prevent money laundering.

“Simultaneously, common principles of consumer protection have to be improved,” she added. “Online gambling may involve a greater risk of addiction than traditional offline gambling. Therefore any customer self-excluding or surpassing their gambling limits from one gambling operator should have the option to be automatically self-excluded from all other licensed gambling operators.” 

Gambling Market – Spain

Over is Spain, the economic crisis battled on as reports came in stating that the Spanish internet gambling market has shown a significant decline in the first quarter of 2013.

Gross gaming revenue (GGR) on all products fell to €60.84m for the three month period, a quarter-on-quarter decline of 1%, while turnover dropped 0.7% to €1.37bn. In the same period official figures released by the government said the economy shrank by 0.5% and unemployment hit 27%.

Sports betting was the all out leader in the market, responsible for 49.7% of GGR and 34% of amounts wagered. Poker was up 19.6% with tournaments’ revenue share growing to 9.9%. Casino slots, table games etc, made up another 20.6% of amounts wagered, and 13.8% of total market GGR with the launch of online slots.

Social Gaming

In social gaming news, Zynga cut back almost 20% of its workforce in a move they are calling “substantial cost reductions”. The layoffs of 520 workers are spread across their Los Angeles, Dallas and New York offices.

Zynga’s anticipated second-quarter loss of $28.5 million to $39 million and the tumbling shares of 12%, to $2.99 is what experts are claiming is the reason for the layoffs. This is Zynga’s largest cutback in over 6 years.

Zynga CEO Mark Pincus revealed in an email to employees, “None of us ever expected to face a day like today, especially when so much of our culture has been about growth,” “But I think we all know this is necessary to move forward. “The scale that served us so well in building and delivering the leading social-gaming service on the Web is now making it hard to successfully lead across mobile and multiplatform, which is where social games are going to be played.”

Belgian Gambling Commission

In Belgium there are currently 74 sites that the Belgian Gambling Commission has added to their internet domains of blacklisted illegal online gambling operators. The latest are BetVictor, the 60 year old online gambling operator formerly known as Victor Chandler, UK operated TVMUK Ltd’s Casino GrandLuxe and MonaCasino – both operated by UK-registered company TVMUK Ltd, Curaçao licensees City Club Casino and RoyaalCasino.

Be sure to post your comments, feedback and opinions below, we love to her you voice on these matter!

There are several “rules of engagement” in Galaxy Gaming’s guiding principles that seem to conflict with a recent ruling made against the companies CEO Robert Saucier.

Administrative Law Judge Catherine Frink made no bones about her ruling deeming the CEO as “evasive and, in some instances, intentionally dishonest.”

The Las Vegas manufacturer of casino table games, was denied the right to doing business in California due to a lengthy and ongoing investigation calling into question several unsavory business practices that could have an unfavorable outcome of the companies Nevada gaming license.

Saucier is under scrutiny for misleading and misrepresentation of information regarding business ventures, signing unapproved licensing deals with California tribal casinos, lawsuits and even information that may have been false about his own personal past.

In 2002 Saucer applied for a gaming license with Tule River Tribe Gaming Commission, at that time the Commission began an investigation with the help of the Bureau of Gaming Control. The investigation uncovered that Saucier did not give full disclosure of very pertinent facts and what could be harmful business ventures that are very relevant to approval by the state of California.

According to the 2002 report Saucier list of information that was never disclosed included:

• Failure to mention an order to pay a $1.5 million judgment to Sherron Associates, a creditor in a hotel-casino project.
• Failed to reveal gambling taxes owed to City of Spokane in WA State by his Mars Hotel and Casino, a hotel that eventually failed.
• Misrepresented his past drunk driving conviction stating it was dismissed
• Failed to list a valid address. He filed his personal federal income tax returns in Washington, listed a condominium in Mexico as his home and had a license for a home-based business in Las Vegas.
• Failed to disclose multiple businesses: Galaxy Gaming of Nevada, LLC; Galaxy Gaming of Oregon, LLC; Bonus Blackjack, LLC; Intergalactic; and others.
• Failed to mention gaming licenses from other states, including Washington and Nevada.
• Did not reveal that he pays child support.
• Did not disclose his involvement in past lawsuits. For instance, he sued the Mars Hotel for $1.6 million in 1998. “In essence, he sued himself and received a default judgment,” Frink wrote.
• Failed to mention a foreclosed house and two personal credit card bills that were sent to collections.
• Had no Nevada business license, as required, from 2001 to 2004. He blamed the missing license on an “oversight by staff.”
• Claimed to have graduated from UNR, but he did not.

“In a highly regulated industry such as gaming, the failure to be forthcoming with relevant information was inexcusable,” commented Frink.

Saucier’s case was assigned to the Attorney General’s Office in 2007 for prosecution and is still pending further investigation. Mired in lawsuits and controversy, it still seems as though that Saucier may not have to answer to his past when it comes to his Nevada.

Apparently different states in the US have vastly different laws and regulatory standards. Nevada’s Gaming Control Board chairman, Burnett stated,

“Other states sometimes have vastly different laws and regulatory standards than we do.”  “There are cases when a ‘denial’ doesn’t mean the same thing as it does in Nevada. For example, in some states in the Midwest, there have been denial proceedings but they’re for various transactions and don’t necessarily relate to the integrity or the suitability of the company itself.”

The WTO, granted sanctions on the United States Antigua and Barbuda this week in its long running dispute over online gambling. This ongoing dispute initially began in 2003 after the United States refused to engage in meaningful negotiations and “commenced the dispute resolution process of the World Trade Organization (“WTO”) to challenge the United States’ total prohibition of cross-border gambling services offered by Antiguan operators.”

A few years later in March 2007, the Dispute Settlement Body of the WTO ruled that the US had failed to comply with the 2005 ruling against prohibitions on Internet gambling. Later in the year, the WTO granted Antigua US$21 million in annual trade sanctions against the US as compensation for damages.

Just a few days ago, news sources revealed that Antigua was granted WTO authorization to suspend US copyrights giving Antigua the authority to provide materials such as software, music, movies, books, etc how they see fit without any compensation to the American entity who owns the materials.

This new allowance by the WTO to Antigua have many believing this could and will lead to a $21 million annual piracy booty as the initial outcome to this 10 year dispute.

“The economy of Antigua and Barbuda has been devastated by the United States government’s long campaign to prevent American consumers from gambling on-line with offshore gaming operators,” Antigua Finance Minister Harold Lovell said. “We once again ask our fellow sovereign nation and WTO member, the United States of America, to act in accordance with the WTO’s decisions in this matter, before we move forward with the implementation of the sanctions authorized this day by the WTO.”

Online gambling was Antigua’s second largest form of economic resources providing more billions of dollars to the Antiguan economy. From a maximum revenue of $2.392 billion and 59% of global online gambling in 2001 while employing 1,014 people, the Antiguan online gambling industry shrunk to an estimated $948 million in 2007 and a miserly 7% of global online gambling with just 333 people employed.

“Antigua has decided to utilize its right under international law to compel treaty compliance by the United States — this decision did not come easily,” said Colin Murdoch, trade ambassador for Antigua. “After countless proposals from our government have been more or less ignored by the Office of the [US Trade Representative] – numerous decisions by the WTO declaring the United States Government’s position illegal – and failure of the United States Government to provide meaningful proposals to end the dispute, the WTO provides this remedy not to encourage illicit behavior by nations; but rather to provide them with a way to secure their legal rights as sovereign nations.”

Will this latest stir in the pot finally get the US to adhere to the original WTO agreement that allowed cross-border gambling and betting services; or will Antigua and Barbuda continue in a “tit-for-tat” battle with the US as the little island getaway is now being dubbed the new “Pirates of the Caribbean.”

Antigua’s government says its goal remains a negotiated settlement.

Gambling has been taking a more prominent role in the state of Illinois with the expiration of the state’s authorization for advanced deposit wagering (ADW). ADW allows placement of horse racing bets online or by telephone. All that is needed is the creation of an account and the means to fund the bets.

In 2012, advanced deposit wagering bets reached $122 million dollars or 20% of the state’s gross gaming revenue. However, the law was set to expire on December 31st and the legislature chose to not send an ADW renewal to Governor Quinn because of his prior veto threats. With the loss of tax revenue due to the expiration of ADW authorization, the gaming commission has lost 28% of its annual funding. Horse betting websites such as www.freebetsfree.com.au are really confused by the decision.

At issue for Governor Quinn is the need to address pension reform in Illinois. The state faces a $95 billion unfunded liability and funding the annual payouts to retirees is exacerbating the state’s deficit. Thus far, the governor has not been able to win enough support in the legislature to cut pensions for current and future pension recipients sufficient to bring solvency to the state’s five pension funds.

Governor Quinn has been vocal that the only pension reform he will accept will reform four out of the five funds. The legislature produced support for a scaled back reform last year but it touched only two of the five pension funds prompting the governor to say the reform measure wasn’t sufficiently “comprehensive”. Governor Quinn has been holding up passage of gaming legislation as a means of winning the concessions he desires on pension reform.

Also caught in the tug of war between pension reform and gaming legislation is Chicago Mayor Rahm Emanuel. Emanuel has been fighting intensely for authorization of Chicago casino and possible authorization for slot-machines at Chicago O’Hare and Midway airports. The mayor has even taken up lobbying the Illinois House to pass a pension reform bill suitable to the governor’s liking but those efforts have come up short.

Then, the lame duck legislature suddenly released the hold on the gaming bill the governor previously threatened to veto. By state law, that gives the legislature 30 days to send the bill to the governor for his signature. The same statute gives the governor’s office 60 days to sign the bill. The governor has yet to make a formal statement regarding the gaming bill despite his earlier veto threats.

At the inauguration of the new legislature, Governor Quinn stated that he wasn’t commenting on the gaming bill at this time because the occasion was not about him or any legislative initiative. He explained that the new legislature was enjoying the swearing in ceremony which should be enjoyed by the new members of the assembly and their loved ones. In his own words the governor said, “I think it’s important to “kind of give” the House and Senate their day. There will be plenty of time for us to work on bills. ” The governor has struck a conciliatory tone about bi-partisanship expressing the hopes that both parties could come together on the pension and gaming bills.

With both the 30-day and 60-day windows that the legislature and governor have on the gaming bill, it is hoped that some reform can be reached by the spring.

About the Author: Zilko Ravi is a guest blogger writing articles pertaining to gambling laws concerning horse racing and wagering and the effects on bettors.

Recent suggested changes to Assembly Bill 5 drafted by the control board has Nevada looking at a gaming bill that would allow intrastate wagers with similar interactive gaming laws.

The draft bill was submitted to the Legislature as Gaming Control Board wants to amend interactive gaming regulatory language that would allow Nevada’s governor to enter agreements with other states that legalize Internet poker.

Allowing Nevada Internet poker websites to accept bets from gamblers within states that have similar laws would initially increase the player size pool.

Control Board Chairman A.G. Burnett, stated it is “beneficial to Nevada because Congress has not enacted federal legislation to legalize Internet poker.” “The need to make clear the governor’s ability, should he choose to negotiate such agreements, was paramount,” Burnett said. “I don’t know if there are specific negotiations right now.”

Currently, there are 17 licensed gaming operators and technology providers under the state’s interactive gaming regulations that were approved last year with Interactive poker websites possibly launching in Nevada by the spring.

Since the death of the Reid/Kyle bill in December, Kyle has since retired and the focus has shifted for federal Internet poker legalization to a state-by-state legislation.
NJ Gov. Chris Christie has until Feburary 3rd, to yay or nay on the legislation which would allow the acceptance of the states residents to play casino games and poker online as well as players outside the state if it is determined legal.

Christie has been “mulling” over signing off or vetoing the bill for over a year stating,

“I think [New Jersey] should be an epicenter for [the Internet gaming] business, but I want to do it right — I do not want to rush and get legislation that either doesn’t pass state constitutional muster, or creates other problems for us,” he said.

Last December Macquarie Securities gaming analyst Chad Beynon stated that, “as more states adopt online gaming regulations, it will become less likely that federal online poker bill will make it through Congress.”

Nevada Gaming Control Board chairman AG Burnett told the Las Vegas Review-Journal, “The need to make clear the governor’s ability, should he choose, to negotiate such agreements, was paramount. I don’t know if there are specific negotiations right now. “We wanted to make sure the authority was there, however, to add more options in order to help the state.”

Until a federal legislation authorizing interactive gaming is passed or approved by the US Dept of Justice, Nevada will have to wait as the bill has been referred to the Committee on Judiciary.

Earlier in December of 2012, State Senator Eddie Rodriguez (D-Austin) introduced and filed State of Texas Bill H.B. 292, Poker Gaming Act of 2013. The bill states that “all poker gaming conducted in the state of Texas and authorized by law will be regulated and licensed unless the state or federal law specifically states otherwise and bans Internet poker.”

The bill would also permit, allow existing pari-mutuel facilities, bingo halls and tribal concerns to apply for licenses to operate poker games, where tournaments would feature a maximum buy-in of $100 but there would be no limits applied to cash games.

The taxation of 18% of gross revenues will be levied and a portion going to the Texas Department of Housing and Community Affairs is planned to help with the states homelessness issues.

The bill claims regulation of poker gaming in Texas is important to ensure that poker gaming is conducted honestly and competitively and free from criminal and other corruptible elements. Stating public confidence and trust can be maintained only by strict regulation of all persons, locations, practices, associations, and activities related to the conduct of poker gaming and service industry.

Licensing for Poker in Texas will be valid for one calendar year, upon which time a renewal is required with annual fees paid, fees for licenses in Texas and renewals:

• $1,000 for a poker operator’s license
• $100 for a poker dealer’s license
• $250 for a manufacturer’s license
• $250 for a distributor’s license

The Casino Gaming Act of Singapore was created to make provisions for the operation and regulation of casinos and gaming in casinos and to establish the Casino Regulatory Authority of Singapore.

Recently, two of the city-states largest resorts faced fines for violation of social safeguards that required citizens to pay daily and annual entry levies who find it difficult or impossible of having self restraint with casino gambling.

Both Genting’s Resorts World Sentosa and Las Vegas Sands’ Marina Bay Sands where charge with fines totaling S500k (US$400k) for their failure to observe social safeguard requirements.

Singapore plans to be carried out by the middle of next year will impose limits on the number of times per month that citizens who willingly acknowledge or are judged to have a gambling problem may visit the city-state’s two integrated resorts.

The limits take three forms:

a. First the individual can apply to the National Council on Problem Gambling for voluntary self-imposed limits.

b. Family members can apply for family visit limits;

c. or the NCPG will have the power to appoint a Committee of Assessors to determine whether a third-party visit limit should be imposed on a person. Individuals will have the right to be heard and the right of appeal.

“Though the casino is a small component of the entire IR development, we recognize the impact it can have on law and order and problem gambling,” said Second Minister for Home Affairs, Trade and Industry S Iswaran. “The government is determined to keep Singapore safe and secure, and to ensure that our society’s strong work ethics and values are not compromised.”

Social safeguards for non-casino gambling, including remote gambling, are also being studied.

A total of twelve online operators have all secured approval in Schleswig Holstein issue of its first online casino and poker licenses. The twelve major gambling operators include, bwin.party, Bet365 and PokerStars, each receiving six-year licences to offer casino and games to the residents of Schleswig Holstein.

Back in August of this year the German state awarded five sports betting licences to operate across the country, while considering over 40 operators including 22 for online casino games and online poker once the criteria for approval was meet.

Analyst Ivor Jones of Numis Securities stated,

“European law requires that the laws of member states are ‘coherent,’ i.e. consistent in application to companies inside and outside the country. A situation has now been created where the law will not even be coherent within Germany.”

More information will be updated to this breaking news story once details become available.

If Mayan prophecy is proven correct the end of the world will be in just 5 short days and the Reid/Kyl bill will have been mourned and forgotten as the push for online poker regulation in 2012 has seen its demise.

Both Senators Harry Reid and Jon Kyl have failed to produce enough support from both parties to keep the spark alive, causing Reid to fire off, “Two weeks before Christmas, without being vulgar, what the hell would I put it on?”

Just a few days after his statement, Reid officially called it quits on online poker for 2012.

“As much as I would prefer a different outcome the reality is that we have simply run out of time in the legislative calendar to pass an Internet poker bill,” Reid said. “I am disappointed but Senator Heller and I remain committed to this issue and it will be a priority for us in the new Congress.”

Reid, disappointed by lawmakers’ failure to reach a deal to legalize and regulate interstate gambling online, said he’ll take up the effort again next session, along with U.S. Sen. Dean Heller, R-Nev.

John Pappas, executive director of the Poker PlayersAlliance (PPA) weighed in on the topic, stating,

“It is an extremely disappointing end to a year where tremendous progress was made. I am most upset for the players, who have been calling on Congress for years to pass an Internet poker law that protects consumers, restores their freedoms and raises revenue. While I don’t think these voices have fallen on deaf ears, I am discouraged that Congress could not coalesce around a solution in the wake of the ongoing fiscal cliff crisis.”