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California Budget Makes Online Poker Easy Pass, Says Lobbyist
The political representative for the Poker Voters of America says California’s need for money may force legislators to rush the online poker bill into law.
The dire financial straits of the California budget put the state’s online poker proposal into great position to become law, says the main lobbyist for the Poker Voters of America. Chris Gallardo asserts the desperate need for revenue should usher in intrastate online poker as state lawmakers look anywhere for money to fund essential services.
Gallardo has been working the state legislature on behalf of the Poker Voters of America, an organization that concentrates on political expression for US and particularly California poker players. He thinks the need for state income, combined with inroads he has made into tribal councils opposed to Internet poker, may make the passing of the intrastate bill a done deal.
“We think we can help the governor and legislative leadership in trying to ease some of the pain of making cutbacks to essential programs,” Gallardo said.
Research firms have estimated that online poker could generate $250 million a year in revenue for state coffers. The budget shortfall in California is thought to be likely to reach an astounding $25 billion by year’s end.
Tribal lobbyists exercised their strength last year in fighting Internet poker, but Gallardo thinks the Indian groups are more accepting now of the proposal.
“I got to know a great deal of the tribes,” said the lobbyist. “I know online gaming can be a wonderful way to diversify their portfolio of gaming practices.”
Why Is the Online Gambling Issue So Complicated in the U.S.?
MajorWager.com’s Hartley Henderson offers an interesting historical analysis
Why has the online gambling situation in the U.S. wound up in such a legal mess? Why is the industry struggling for regulation and legalization in a political environment that’s hostile to the very concept of Internet gambling, even though most U.S. citizens seem to have no problem with gambling?
An interesting question, and one that deserves some attention. Gambling site MajorWager has taken a stab at trying to sort out all the details. Writer Hartley Henderson attributes the strange U.S. iGaming landscape on a number of factors: The unwillingness of offshore operators to unite at an earlier stage and their “taunting” of U.S. authorities, for starters.
Facebook Poker Players May Be Violating US Online Gambling Laws
Facebook Facebook is the largest social networking site in the world, and anytime that many people are involved with one site, there is the possibility that illegal gambling activity could be taking place. In this instance, that illegal activity could involve breaking US online gambling laws.
Facebook offers Texas Hold’em poker games on the site. There is no monetary value involved in the games, but some players may have found a way to break the law. That is why online payment system AlertPay has agreed to terms with Facebook to terminate operations where poker chips are being sold.
The operations involve players gaining chips for the Facebook poker application, and then selling the chips to other people who want to play the game. It is an operation that Facebook has quickly detected, and the site, along with AlertPay, are putting a stop to it.
“Facebook does not permit online gambling on its platform and some sellers attempted to convert the Texas Hold’em Poker application into monetized online gambling,” said a statement on the official blog of AlertPay.
According to the statement, AlertPay was particularly concerned with the possibility that these operations could have been violating US online gambling laws. The laws are vague, but unregulated Internet gambling is not permitted.
“Site offering for sale virtual poker chips for use with Texas Hold’em Poker are in violation of AlertPay’s User Agreement and in potential violation of state and United States Federal laws prohibiting unlicensed and/or gambling,” read the statement, “as well as the Unlawful Internet Gambling Enforcement Act of 20o6.”
Online Poker Payment Processor Hit With Lawsuit
QUEENSLAND’S baby-faced internet tycoon Daniel Tzvetkoff is being targeted in a $52 million legal action by an online gambling firm.
The lawsuit is the latest in a series of blows in recent months for the 25-year-old who first hit the headlines last year when he bought the state’s most expensive home, spending $27 million for an unfinished beachfront mansion on the Gold Coast.
Mr Tzvetkoff is the brains behind an online billing, payments and fraud-detection system which helped him and partner Sam Sciacca, 38, build a business empire worth an estimated $120 million in last year’s The Sunday Mail Top 100 Rich List.
Their firm, Intabill Inc, is now being sued by Kolyma Corporation AVV for payments which Kolyma says were not passed on.
The corporation, based in the former Dutch colony of Aruba in the southern Caribbean, operates Full Tilt Poker, one of the most popular and lucrative online gambling sites.
It was one of the biggest clients of Intabill, which is based in the Brisbane suburb of Milton.
Kolyma is seeking payment of an alleged debt of $US43 million ($A52.75 million) plus interest, which it claims has been increasing at $US13,532 a day (about A$16,590) since May 25.
The action, lodged in the Supreme Court in Brisbane on May 25, names as defendants Intabill, which is registered in the British Virgin Islands tax haven, and the Australian-registered holding company BT Projects. It also targets Mr Tzvetkoff and Mr Sciacca individually, saying they gave a guarantee to pay Kolyma money claimed to be owed.
Mr Tzvetkoff told The Sunday Mail they would defend the lawsuit “but I can’t comment further”.
Mr Sciacca could not be reached for comment.
Intabill had more than 5000 customers in 70 countries. It is understood that about half its revenue came from business linked to online gambling operations, with fees from just one operator topping more than $150,000 per day.
In April, Intabill laid off 96 employees – keeping about 20. Mr Tzvetkoff blamed market conditions and increased loan funding costs.
In May, Intabill withdrew a multimillion-dollar sponsorship of the Team IntaRacing V8 Supercar team, announced only months earlier.
Asked on Friday about the current state of his businesses, Mr Tzvetkoff said: “We are continuing to work to rebuild during these tough times.”
Mr Tzvetkoff was raised in Brisbane’s southern suburbs by a school teacher mum and a father who runs weekend markets.
Benefiting from the boom times of his business, he drove a black Lamborghini Gallardo with the number plate BALLER and owned a Ferrari 599, an Audi S6, Range Rover and a Ford GT40. He had a luxurious boat and used chartered private jets.
He is a part-owner of the Zuri Lounge celebrity nightclub in Brisbane’s Fortitude Valley.
It is understood the boat and most of the cars have been sold.
A year ago, Mr Tzvetkoff emerged as the mystery buyer of the $27 million half-built mansion on “millionaire’s row” at Hedges Ave, Mermaid Beach, which was formerly owned by tourism tycoon Tony Smith.
The property, spread over four waterfront lots, was to be a family home for Mr Tzvetkoff, his fiancee Nicole Crisp and their son Hugo, now aged two. They planned to marry last October and move in late last year. But the wedding was postponed because Mr Tzvetkoff said he was too busy with business commitments.
The Hedges Ave property is still unfinished and they have not moved in yet.
“At the moment we are on hold,” Mr Tzvetkoff said yesterday.
Salvatore “Sam” Sciacca is a lawyer with a background in commercial and corporate work, including e-commerce.
He is a cousin of former federal minister for veterans’ affairs Con Sciacca, and has kept a much lower profile than Mr Tzvetkoff.
Poker Money Freeze Update
A week after the U.S. government made its first moves to freeze some $33 million in online poker winnings by blocking several payment systems. A flood of media coverage seems to have worked in favor of the poker industry.
Stories like the one that recently appeared on ABC News about an online poker player who may be blocked from participating in the land-based (and completely legal) World Series of Poker (WSOP) because of complications from this freeze are piling up. And they’re also helping to stoke public outcry against the government for making this move.
Over at the political blog site Huffington Post, a fairly high-profile blogger has accused President Obama’s Attorney General, Eric Holder, of outright theft. The blogger does a good job of outlining the facts: The government has no right to seize the money, because no illegal activities were involved. And even if there were, the government doesn’t have the right to seize money already won.
Meanwhile, Harrah’s has released a statement saying that the asset freeze has had “no impact” at all on the ongoing WSOP event in Las Vegas.
The sites affected have reassured players that the inconvenience is only temporary and that they will soon be paid they winnings they are owed. Reports are that Full Tilt has already began paying players the owed money.
Poker Money Freeze a “Wake Up Call”
Signs indicate that U.S. government is preparing to enforce old anti-gambling laws in new ways
Technically, using the Internet to gamble has never been legal in the United States. Even before the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006, the Federal Wire Act of 1961 calls for the fining or imprisoning of individuals using communications channels for “betting or wagering”. This was the basis for Minnesota’s recent attempt to force Internet service providers (IPSs) to block consumer access to online gambling websites.
However, as with the UIGEA, the exact details of the Wire Act have always been rather vague, and the government has been haphazard in the application and enforcement of the law.
But that appears to be changing. “So many players assumed the Federal Government couldn’t do anything about internet gambling,” Rich Muny, the State Director for the PPA (Poker Players Alliance) in Kentucky, told PocketFives.com. “Congress passed a bill to target the financial services end of it and this should be a wake up call.”
Muny is referring to the recent actions by Arlo Devlin-Brown, the Assistant U.S. Attorney for the Southern District of New York, who has ordered the seizure of about $30 million in funds allegedly used for “money laundering transactions and illegal gambling offenses,” also according to an article at PocketFives.com.
This money is owed to 27,000 players at four poker sites based outside of the United States, adds the New York Times. (PocketFives puts the number at 24,000.) These sites include PokerStars.com and Full Tilt Poker, two of the Internet’s most popular gaming destinations. The article goes on to state that the freezing of these funds is being carried out through Citibank, Wells Fargo, and “two smaller banks”.
$30 million is relatively small change for the online poker industry, and the sites in question have vowed that their players will get paid eventually no matter what happens legally. But the larger issue is that the government is taking this action in the first place, and that it may scale up its efforts to include more sites and more money. After all, the government has, in the past, usually set its sights on betting and wagering, not poker playing.
The PPA is already fighting the action, claiming that this freezing was not legal due to the lack of a proper warrant, thus violating the U.S. constitution’s due process laws. “I see this ending in a strong fight,” Muny said. “The PPA has a solid record of winning state lawsuits. It’s do or die on this one. If the sites lose, the settlement would be that they could no longer do business in the United States.”
As of today, the websites affected by this are still unable to properly pay out their winners, and are asking for patience while the matter gets resolved. But just how much patience will be needed, and how long will this situation take to fully play out? It’s hard to determine the government’s big picture strategy; whether this is the personal crusade of one U.S. district of part of a broader effort by the government to finally enforce its gambling laws.
Either way, it’s true that this is a “wake up call” to everyone in the online poker industry, from affiliate and players to the executives of the companies involved in this marketplace. No longer can we ignore the politics of the U.S. situation; there has never been any clearer evidence that Barney Frank’s and Jim McDermott’s proposed laws to legalize and regulate online gambling must be passed — and soon.
Bodog.com is BACK!!!
June 10th, 2009, marks the day Bodog returns to its incredibly well-renowned Bodog.com online address. As most people that gamble online know, Bodog is a pioneer in the world of Online Gaming and Online Entertainment.
Bodog.com is one of the world’s most successful and well-established digital entertainment and online gaming giants with a well-deserved reputation for being safe and secure while offering top quality customer service.
On the eve of Bodog seeing its 3 millionth player sign-up for one of the most coveted accounts in online gaming, the fact that Bodog.com is now back in action is fantastic news! Already in 2009, Bodog.com has soared to new levels by offering industry-leading payout time-frames.
It is with great pride that Morris Mohawk Gaming Group announces the official return of Bodog.com. Starting today, Bodog.com will once again become the center of operations for the Bodog brand’s United States facing business!
Go Bodog.com!!!
Online Poker the Winner in Minnesota
Minnesota drops action against ISPs that provide access to online gambling sites.
The Minnesota Department of Public Safety has dropped enforcement action against Internet Service Providers that provide access to online gambling sites, it was announced last week.
The department had earlier in 2009 written to 11 ISPs asking them to block access to around 200 gambling Websites.
In making the announcement, Representative Pat Garofalo credited the Poker Players Alliance and the Interactive Gaming Council with contributing to the decision.
Garofalo said the agreement was reached after the “legal position underlying the issuance of the notices was reconsidered.”
The PPA, with more than 15,000 members in the state of Minnesota and more than one million members in the entire US, played a major role in the campaign against the anti-poker moves.
“Minnesota poker players made our voices heard, the state listened and ended its ill-advices and improper attempt to circumvent the rights of Minnesota poker players,” said PPA Minnesota State Director Matthew Werden.
“We commend Representative Garofalo for literally taking this misguided effort head on and resolving it without incident.”
Australia Tells Casinos and Betting Operators No Free Bets
Free betting marketing schemes by casinos and gaming companies in Australia are being eliminated as a temptation leading to problem gambling.
Casinos and gaming operators in the Australian state of Victoria will no longer be allowed to use complimentary bets to lure new customers. A bill working its way through the Victoria Parliament will make it illegal for betting services to offer free plays as advertising and marketing ploys.
New South Wales and South Australia have both already passed similar laws. Last year, laws restricting gambling advertising were loosened, resulting in a tumult of new marketing by bookies and gambling operators.
Victoria chief executive Rob Hines said the incentives invited problem gambling incidents, and praised the new law.
“It’s a responsible gambling issue. We have always held the view that people should be very cautious in their betting,” he said.
Many companies had offered new patrons a free play for a sum ranging from $50 to $500 as enticement to visit their sites or use their service. But most gaming industry owners are already ending the free bet programs.
Betfair and Luxbet had voluntarily closed their free bet ads before the bill was introduced.
“We don’t believe free bets cause problem gambling, but we can see governments banning them nationwide,’ said Betfair CEO Andrew Twaits.
Full Tilt Poker eCheck Problems Leaves Customers Frustrated
Following news this past week that the United States Attorney out of New York has managed to shut down an eCheck processor for Full Tilt Poker, that online poker room hasn’t exactly been upfront with its customers. They suggested the problem was only temporary. PokerStars has encountered the same problem and the world’s largest online poker room let its customers know right off the bat that the processor in question had its funds froze.
Here is what Full Tilt Poker was telling its customers over the weekend:
Thank you for contacting Full Tilt Poker Support.
We’re sorry your deposit attempt with Instant eChecks was unsuccessful. Unfortunately, Instant eChecks is temporarily unavailable for use on Full Tilt Poker.
We apologize for any inconvenience and are working to resolve the issue as soon as possible.
Meanwhile, we recommend using another payment processing option to fund your Full Tilt Poker account. If you would like to view alternate deposit options available to you, please visit our website at: http://www.fulltiltpoker.com/deposit-real-money
When players ask about a safe and reliable method to deposit funds, we recommend opening a Click2Pay account.
To make a deposit using Click2Pay, you’ll need to open a Click2Pay account through the Full Tilt Poker software by following these steps:
1) Log in to your Full Tilt Poker account.
2) Go to the Cashier window.
3) Select “Make a Deposit”.
4) Select “Click2Pay” and follow the instructions provided.
When you make a deposit to your Full Tilt Poker account using Click2Pay, the deposit amount will be automatically deducted from your bank account or credit/debit card.
Your account information should consist of characters within the normal alphanumeric range. Otherwise, your deposit will be unsuccessful. For example, your deposit will be declined if your account information contains underscores or apostrophes.
If you need help depositing, Tilt Pay Support provides deposit assistance on behalf of Full Tilt Poker. You may speak with a representative by calling toll-free in North America to 1-888-TILT-PAY (1-888-845-8729) or international long distance by dialing your country’s International Direct Dialing prefix (IDD), followed by Tilt Pay’s telephone number. For example, from the U.K., dial: 00-1-888-845-8729. Please be advised that Tilt Pay Support can only assist with deposit issues and is unable to assist with general support questions, deposit limit increase requests, or Cash Transfer inquiries.
If there’s anything else we can help you with, please feel free to ask. We’re always here to help.
That’s just wonderful but some of the checks received by customers are bouncing at banks and it is the customer that has to pay the fee incurred for insufficient funds.
Full Tilt Poker was yet to offer an explanation for the dismantling of its eCheck system as we headed into Monday, more than 48 hours after the report of the crackdown.
CSR Approved Casinos
