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UK Based Gambling Industry Might Hit Jackpot
U.K.-focused financial news sources this week were buzzing with the possibility that France might soon open its online gaming market to other nations, a move that could dramatically boost the fortunes of some prominent U.K.-based companies.
That home market in the U.K. was estimated at $1.4 billion last year, according to the Swiss-Press. That figure was a result of research from the U.K.’s own Gambling Commission, a special governmental committee set up earlier this decade to oversee the “remote gambling” industry. It was also estimated that a fourth of that sum comes from the National Lottery, scarcely related to the traditional online gaming industry.
Still, the fortunes of leading companies such as 888, William Hill, and PartyGaming are fighting to overcome an increasingly sluggish home market.
But those companies could soon be getting a crack at a juicy new market: On October 7, France will decide whether or not to let foreign companies provide sports betting and poker services within its borders. Currently, the state lottery providers Groupe Francaise des Jeux and Pari Mutuel Urbain offer online gambling on horseracing in France; all other forms of online betting are banned.
“The size of the population and the appetite for gambling, and the group’s historically cautious approach to France make this a particularly exciting opportunity for us,” Jim Ryan, CEO of PartyGaming, told Bloomberg News.
If opened, it’s estimated that the French market could reach almost $1 billion in 2010.
Jon Kyl Gets Scolded in Senate Meeting on Thursday
Arizona Republican Senator and long time opponent of online gambling, Jon Kyl, was accused of causing delays during a Senate Health Committee. He later threw a temper tantrum that would have made Dennis the Menace proud.
Republican Sen. Jon Kyl of Arizona indignantly raised his voice after committee Chairman Max Baucus of Montana urged him to hurry up and finish a point. An outwardly irritated Kyl told Baucus he was not delaying, but was instead trying to make an extremely important point about flaws in the legislation. Baucus shot back that while Kyl’s point might be important, he also was holding up the panel’s work.
Kyl was speaking in favor of a GOP amendment that could have prevented the government from implementing the bill – even if it’s passed and signed into law.
In October 2006, Kyl pushed through in the dead of night an online gambling prohibition by attaching the measure to an unrelated Port Security Act. President Bush signed off on the Port Security Act and, by default, the Unlawful Internet Gaming Enforcement Act (commonly referred to as UIGEA) became law. It attempted to hold banks in charge of policing online gambling transactions while requiring these very same banks to allow bets for Internet horse racing. State lotteries were also exempt from the new law, however, banking institutions have made it clear there is no possible way to differentiate the “good” transactions from the so-called “bad” one’s such as online poker and sports betting.
Senator wants to fund health care with gambling
WASHINTON, D.C. — (PRESS RELEASE) — An increased focus on the benefits of Internet gambling regulation are expected as the Senate Finance Committee considers a proposal introduced on Saturday to use Internet gambling revenue to offset the costs of health care reform. The amendment offered by Senator Ron Wyden (D-OR) would dedicate Internet gambling tax revenue generated through implementation of the currently pending Internet Regulation, Consumer Protection and Enforcement Act (H.R. 2267) to increase low-income subsidies provided through the America’s Healthy Future Act of 2009. A PricewaterhouseCoopers analysis shows that collecting taxes on regulated Internet gambling would allow the U.S. to capture up to $62.7 billion over the next decade.
“We applaud Senator Wyden’s proposal to collect and put to good use tens of billions in Internet gambling revenue that would otherwise be lost in the underground marketplace,” said Michael Waxman, spokesperson for the Safe and Secure Internet Gambling Initiative. “The Senate Finance Committee should approve this resolution, finally putting to an end a failed prohibition on Internet gambling that leaves Americans unprotected and unlicensed offshore operators as the only beneficiary in a thriving marketplace.”
The Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2009 (H.R. 2267), introduced in May by House Committee on Financial Services Chairman Barney Frank (D-MA), would establish a framework to permit licensed gambling operators to accept wagers from individuals in the U.S. The legislation mandates a number of significant consumer protections including safeguards against compulsive and underage gambling, money laundering, fraud and identify theft. Additional provisions in the legislation reinforce the rights of each state to determine whether to allow Internet gambling activity for people accessing the Internet within the state and to apply other restrictions on the activity as determined necessary.
A companion to Chairman Frank’s legislation introduced by Rep. Jim McDermott (D-WA), the Internet Gambling Regulation and Tax Enforcement Act (H.R. 2268), would raise revenue for the U.S. Treasury primarily through ensuring that applicable individual taxes, corporate taxes and license fees on regulated Internet gambling activities are collected. Without this legislation, this revenue will remain uncollected while millions of Americans gamble online without consumer protections.
Russ Hamilton and 31 accomplices are fingered in UB cheating scandal
The Kahnawake Gaming Commission (KGC) confirmed today through the release of an 11-page document that cheating occurred at online poker room UltimateBet and that the point man for the incident — former World Series of Poker Main Event champion Russ Hamilton — did not act alone.
In the release, the KGC named the accounts used to cheat UB players out of their bankrolls and stated that Hamilton was “the individual who ultimately bears responsibility” for that cheating and that he had 31 accomplices, who were not named in the report. But the 117 usernames used in the cheating were listed in the report.
The KGC added that it has “provided extensive information to law enforcement authorities, including the names of 31 individuals who were associated, to varying degrees, with Russell Hamilton, the cheating accounts and/or transactions related to the cheating accounts.”
The 11-page document also reported that Tokwiro, the owner of UltimateBet, refunded more than $22 million to players affected by the cheating and also paid $1.5 million in fines. It also revealed that there were 23 accounts and 117 usernames used in the cheating and the majority of the money was paid through player-to-player transfers on UB.
“Despite the unfortunate circumstances that resulted in this cheating, we are satisfied that the actions taken by the (KGC) provided an equitable result for affected players – our first priority,” KGC Chairman Dean Montour said in a press release. “We remain optimistic that this experience and the lessons learned from it will result in a higher standard of gaming regulation for companies licensed and regulated within the Mohawk Territory of Kahnawake and elsewhere.”
It was almost a year ago that the KGC released the initial findings of an audit conducted on UB in regards to the cheating allegations that took place between May 2004 and January 2008. The incident marked the second time in less than a year that a Tokwiro property has had to investigate unfair play at one of its poker rooms. Earlier in the year the KGC fined Tokwiro’s Absolute Poker $500,000 after it was revealed players with “superuser” accounts that could see hole cards of opponents had cheated.
GoldenCasino.com Under investigation by DOJ
Gambling911.com is reporting that the US Attorney’s Office out of Maryland in conjunction with the US Attorney Office out of New York and Louisiana State law enforcement in addition to US Customers have been investigating Golden Casino, an online casino group.
Agents posing as individuals looking to join Golden Casino were routinely told they were not permitted to play at the casino from their said jurisdiction. Eventually, one of the customer service representatives allowed an agent to join the casino according to documents.
As part of the investigation, which commenced last August, law enforcement agents also met with US-based customers of Golden Casino.
The task force overseeing the investigation into this activity reported that small banks were also approached and convinced that processing for online gambling ventures was “not illegal” under current laws.
It is unclear as to why US Customs officials are involved in this matter.
Sources close to Gambling911.com have advised that more developments are likely soon in this ongoing investigation.
The Unlawful Internet Gaming Enforcement Act (UIGEA) will be cited in this matter and it is the first time the new law (passed in October 2006) has been mentioned as part of an ongoing US Government investigation.
Big Winner’s At Club World Casino
Wow! The Club World Group had some amazing pay-outs during August! All three casinos had some huge wins last month, but Club World Casino in particular was practically handing cash out!
Joseph from Rhode Island is feeling a bit like a tycoon himself, after winning a nice chunk of change on ‘Texan Tycoon’. $12,422.55, to be exact!
Alabama player, Hobert, had great success while playing four slots (‘Honey to the Bee’, ‘Pay Dirt’, ‘Triple Toucan’ and ‘Crazy Vegas’). His ultimate payday was a slick $48,649.71.
$50,853.54 has a nice ring to it, doesn’t it? Tracy from South Carolina thought so, after winning that amount while playing ‘Cleopatra’s Gold’!
Now these may seem like impressive wins, but they have nothing on Eric from Wisconsin’s MONSTER jackpots! Eric had some sizeable wins, but they don’t hold a candle to the sort of unimaginable wins he had in August! Here’s the breakdown (try not to drool in envy!):
Eric began his winning with a $55,590.00 win on the exclusive, ‘Club World Casino’ slot game. Next was a $43,485.00 win on ‘Crystal Waters.’ He added to his winning with a $15,735.00 hit on ‘Fruit Frenzy’. From there, Eric scored $35,345.00 on ‘Mystic Dragon’ and then $49,641.43 on ‘Sunken Treasure.’ Another $15,060.00 was won on ‘Tiger Treasures.’ But as these wins were all impressive, they were only the precursor to ‘the big one’…
While playing ‘Goldbeard,’ Eric won a mind-boggling $238,713.71!!! Absolutely incredible! Whatever Eric is doing for luck is certainly working!
A big congratulations to all the winners, big and small and best of luck to everyone in September!
Online Poker Player Ordered To Turn Over Winnings
Earning a living from playing poker is illegal, even if online poker games are run outside Denmark, the Supreme Court rules.
A 35-year-old unemployed man has been told by the Supreme Court to hand over 194,000 kroner he won playing online poker.
The court ruled that because the man had earned the money over the course of an entire year, and because it was his sole form of income, he had violated laws banning earning a living from gambling.
The court chose, however, to throw out a 5000 kroner fine the man had been given by the Eastern High Court when he was originally convicted in November due to uncertainty about whether online poker was covered by the law.
The man is the second person found guilty of the charge in recent months. In June, the Eastern High Court found a long-timer organiser of poker tournaments guilty of the same charge.
His sentence was later overturned by the Supreme Court, but the court upheld laws banning poker tournaments.
That decision covered only poker tournaments. Online poker was not considered during the trial. The court grounded its decision to waive the fine on the uncertainty over rules governing internet poker.
In issuing its decision today, the court ruled that even though computer servers used to run the poker games are placed outside of Denmark, the individual computer used to play is located in the country and subject to Danish law.
An estimated 50,000 Danes play online poker, according to poker website pokernet.dk.
Lawyers for the state underscored that the decision does not outlaw online gambling.
‘We will decide on a case by case basis whether someone is playing professionally,’ Crown Prosecutor Svend Larsen said.
Planet Hollywood Poker Scam Nets Four Supervisors
Four Las Vegas Strip resort casino supervisors and managers have been charged in an alleged plot to take phony jackpot payoffs.
Nevada State Gaming Control Board investigators uncovered the scam at Planet Hollywood after months of investigation, said David Salas, deputy enforcement officer for the board.
Losses to Planet Hollywood are “in the thousands of dollars,” and the investigation is continuing, Salas said.
The four men worked in Planet Hollywood’s poker room, where “high hand” jackpots sweetened the payouts on 26 different hands, Salas said. If a person got one of those 26 hands, the player was to get a higher payment. But investigators said the four supervisors allegedly filled out false paperwork documenting that players had “high hands” when they didn’t — then they kept the additional money that would have gone to the card player.
It took three levels of documentation for the resort to pay a player for the special hands, Salas said. “These four were working in concert to generate false documents to embezzle their employer,” Salas said.
Jonathan Sanner, Jason Peterson, Thomas R. Kordick, all of Las Vegas, and Scott Marshall of Henderson were arrested Aug. 21 by Gaming Control Board officers, Salas said.
The four are charged with crimes including forgery, embezzlement and conspiracy.
The Gaming Control Board began an investigation after another employee caught on to the scam and became suspicious.
Bodog Launches Bodog.ca for Canadian Players
It has been a monumental year for the Bodog brand and its licensees, and Bodog Europe is excited to officially announce yet another key milestone in the brand’s history: the launch of the Bodog experience to the Canadian market. Perhaps fittingly, Bodog Europe’s launch of www.Bodog.ca coincides with the 15-year anniversary of the Bodog brand, for the first time giving Canadian players the ability to cash in on some hot new promotions just in time for the remainder of the CFL season and the beginning of the NFL and NHL seasons.
Bodog Europe is lead by industry veteran and Managing Director Keith McDonnell, and is regulated and licensed by the Antigua & Barbuda Financial Services Regulatory Commission, Directorate of Offshore Gaming. McDonnell noted, “We’re extremely excited to be able to bring the unique Bodog experience to Canadian players. Canadians are passionate sports fans and are extremely savvy consumers. The Bodog brand is known world-over for its unmatched customer service and here at Bodog Europe we put the player’s experience and entertainment ahead of all else – I’m confident that we’re going to quickly earn Canadians’ loyalty and trust.”
Bodog.ca offers Canadian players safe, secure and simple access to world-class sports betting, a thriving and dynamic poker community, and a full Vegas-style casino with more than 80 web-based and downloadable games. Bodog Europe offers its players a simple, feature-rich sports betting product, offering a vast selection of sports betting opportunities across all major leagues and featuring live betting and an 80+ track Racebook. The Bodog.ca Sportsbook also has a particular focus on Canada’s most popular sports: NHL Hockey and CFL Football.
Bodog Europe – the upstart Bodog brand licensee already taking the UK by storm with its European-facing site www.Bodog.co.uk – had originally secured the rights to the world-famous “Bodog” brand for use in Europe only. However, when Bodog Europe Managing Director Keith McDonnell learned of BodogBrand.com’s willingness to entertain proposals to license the brand for use within Canada, he was quick to act, and secured the exclusive Canadian license.
“The Bodog brand is celebrating its fifteenth year anniversary this year – an absolutely remarkable pedigree and testament to its enduring values in an industry that quickly kills off mediocrity. The brand has gone through quite an evolution during that long history, and Bodog Europe is looking forward to carrying the torch forward for at least another fifteen years of world-class customer service, unbeatable promotions, and, above all – fun.”
To learn more about Bodog Europe’s Canadian site, visit http://www.bodog.ca.
UIGEA Challenge Ruling In, States Have Burden
While a 3rd Circuit Court has upheld the Unlawful Internet Gaming Enforcement Act (UIGEA) as law, the Court has effectively now placed the burden on states making this decision somewhat of a win for online gambling.
“There are essentially 44 states where online gambling is now legal based on this decision,” said Joe Brennan, Jr, head of iMEGA.org, the Internet trade organization which filed the suit.
To the extent that Interactive’s hypothetical raises a vagueness problem, it is not with the Act, but with underlying state law. It bears repeating that the Act itself does not make any gambling activity illegal. Whether the the transaction… constitutes unlawful Internet gambling turns on how the law of the state from which the bettor initiates the bet would treat that bet, i.e. if it is illegal under that state’s law, it constitutes “unlawful internet gambling” under the act.” p6., iMEGA v. Holder, US 3rd Circuit decision.
“The 3rd Circuit decision on our UIGEA challenge came back this morning. They upheld the law, but as indicated by questions during oral arguments, they seem to be saying – ‘if the state where the bet is placed says internet gambling is illegal, then processing that payment is illegal”…meaning that it is not illegal if the state doesn’t have a law saying internet gambling is illegal.’”
The Court makes clear that the UIGEA does not make any gambling activity illegal and, instead, refers back to the state. While Washington State is the only jurisdiction within the U.S. that expressly prohibits its residents from placing bets over the Internet, five other states have incorporated laws that do not permit for gambling across state lines, which can loosely be interpreted as betting via the Internet with operations that exist in locales such as Costa Rica and Antigua.
The Act prohibits a gambling business from knowlingly accepting certain financial instruments…if such gambling is illegal where the business is located or from which the individual initiates the bet (note: the state where the bettor is), p6., iMEGA v. Holder, US 3rd Circuit decision
“So, we lose, but in a way, we have some measure of a victory here. Arguably six (6) states make it illegal to engage in internet gambling,” Brennan, Jr. said. “Forty-four (44) do not. UIGEA does not make internet gambling or processing transactions for internet gambling illegal in those forty-four states.”
CSR Approved Casinos
