State Lotteries May Suffer Due to Online Poker Bill

The Americans love their online casinos and the possibility of legalization has had US players paying close attention to gambling news. Recent news articles say that legalization of online poker could hurt the state lotteries.

There was a great new article post on a site called NoDepositCasinoOnline.com:

Republican Representative Joe Barton from Texas introduced a bill last year called the Internet Gambling Prohibition, Poker Consumer Protection, and Strengthening UIGEA Act of 2011. State governors from around the country are now expressing their opposition to the bill saying that it will hurt the revenue stream of state lotteries. This would not only hurt the states’ budgets but it would also be a serious blow to the lottery-funded scholarships.

In Tennessee, the HOPE Scholarship is funded by the state lottery. Shirley Raines, the President of the University of Memphis explains that many students from socioeconomic backgrounds that normally could not afford university tuition are able to attend U of M thanks to these lottery funded scholarships. She fears that online gambling will cause a decline in state lottery revenues and dry up the funding for the scholarships.

Steven Cohen, representing Tennessee’s 9th district in the House, disagrees with Raines’s assumption that online casino games would affect lottery revenues. Having cosponsored the bill with Representative Barton, Cohen explains that lotteries and online casinos cater to different crowds. He said that if online gambling were to be legalized, he hopes that the Tennessee General Assembly uses some of the tax revenue toward the scholarship fund.

Barton’s bill is unique in that it does not legalize online gambling on a nationwide level; rather, it enables states to legalize and regulate online gambling locally. It facilitates the creation of USA online casinos on the state level. Online casino reviews are excited about Barton’s bill. Some say it is the perfect answer to the 2006 UIGE Act, because it does not contradict or erase the original act – it clarifies, defines, and channels it.

As scholarships and educational funding are extremely important, I have to wonder if this sways players’ opinions on online gambling. Scratch Lottery Tickets and watching the draw on television has been a huge part of many of our lives. Would you be sad to see it go in exchange for the right to gamble online?

Bodog’s Costa Rican Service Provider Closed

Fear of association have with the Bodog.com indictments all over the gambling news circuit have prompted the closure of their service provider’s office in Costa Rica. Calvin Ayre, founder of Bodog, announced that the office had closed in a statement on his website.

"A Costa Rican based business process outsourcing company (BPO) providing services to the Bodog Brand has expedited its closure after fears it will be wrongly associated with the Bodog.com Indictments. After the brand licensing agreement with the Bodog Brand and Morris Mohawk Gaming was terminated in December 2011, along with ever increasingly restrictive economic conditions in Costa Rica, the BPO had already started to make plans to wind down its operations.”

"The plan was for a gradual shut down of operations to minimize disruptions to their staff. But the closure was expedited after its management feared the mainstream media reporting of the indictments could result in the BPO wrongly being caught up in the proceedings.”

"The false claim that Bodog was employing hundreds of employees in Costa Rica comes from a misinformed view of international business," and "the company named in the indictment, Bodog Entertainment Group S.A. was only a domain management company. The Bodog Brand granted it use of the Bodog name to make it easier for the management company to go after trademark infringements under existing US trademarks. It never operated a gaming business in the US or otherwise. The company shut down in 2008 in a restructuring move after Scott Lewis of 1st Technology attacked Bodog.com, successfully stealing the domain. All of the domains the company managed were moved to a non-Costa Rican based management company."

Media reports have indicated that the BPO employees were not given proper warning of the closure and showed up for work only to find it locked. 

The DOJ Strikes at Bodog

The United States Department of Justice (DOJ) strikes again but this time it’s Bodog under scrutiny. This has taken the world of gambling news by storm. Here are the details from CBSNews.com.

(CBS/AP) BALTIMORE - The gambling website Bodog.com was shut down, and its founder Calvin Ayre was indicted, for illegal gambling that generated more than $100 million in winnings, federal prosecutors said Tuesday.

The website's domain name was seized Monday and the indictments of four people, all Canadians, were unveiled Tuesday in Baltimore.

Gamblers in Maryland and elsewhere were sent at least $100 million by wire and check from 2005 to 2012, the U.S. Attorney's office said, adding that Bodog conducted a $42 million advertising campaign between 2005 and 2008 to attract gamblers to the website.

The operation allegedly moved funds from Bodog's accounts located in Switzerland, England, Malta, Canada and elsewhere to pay winnings to gamblers. The accused each face up to five years in prison for conducting an illegal gambling business and 20 years for money laundering. Bodog.com faces a fine of up to $500,000 for gambling and money laundering.

The indictments follow federal prosecutions last year of three of the biggest websites involved in online poker. More than 75 company bank accounts in 14 countries have been frozen, and authorities are seeking $3 billion in fines and restitution, in that investigation.

In addition to the 50-year-old Ayre, prosecutors say the indictment of Bodog names website operators James Philip, David Ferguson and Derrick Maloney. A U.S. Attorney's Office spokeswoman said arrest warrants had been issued for the four.

Ayre posted a statement on his website, CalvinAyre.com, saying that his company did not take U.S. bets.

"Bodog UK, Bodog Europe and Bodog Asia have never taken bets from the US," the statement said. "The Bodog Brand is currently consulting with its legal advisers with a view to having the domain returned."

Ayre also wrote, "I see this as abuse of the US criminal justice system for the commercial gain of large US corporations. It is clear that the online gaming industry is legal under international law and in the case of these documents is it also clear that the rule of law was not allowed to slow down a rush to try to win the war of public opinion."

An affidavit filed along with the warrant to seize the site said investigators created accounts with Maryland addresses and received checks in the mail for winnings. The affidavit also said investigators interviewed a former Bodog employee who named top officers and directors and said the company had hundreds of employees in Canada and Costa Rica handling day-to-day operations.

"Sports betting is illegal in Maryland, and federal law prohibits bookmakers from flouting that law simply because they are located outside the country," said U.S. Attorney Rod J. Rosenstein. "Many of the harms that underlie gambling prohibitions are exacerbated when the enterprises operate over the internet without regulation," Rosenstein added.

At first, the interesting aspect was that they attacked a .com domain that has been inactive for a while. Now it all makes sense. I’ve read quite a bit about this issue on gambling forums. Many people believe that this was a long time coming and that Ayre has dangled his brand and operations in the face of the US government. I tend to believe that this opinion is well founded. Would you agree and do you have sympathy?

Online Gambling to Become a Reality in California?

Legalization of online casino play in the USA is still the center of gambling news and will continue to be until it happens. Gambling prohibition is really getting old as I’m sure that US players are well aware of. The restriction makes no sense when you look at all the other things that are legalized. It’s a shame they can’t their money as they see fit. As we know, it’s all about the government getting their piece. This week we travel to the state of California. I found the details on latimes.com.

California Senate leader co-sponsors Internet gambling bill

A proposal to allow Californians to gamble in games, including poker, on state-sanctioned Internet sites gained new momentum when state Senate leader Darrell Steinberg signed on as the co-author of legislation introduced Friday.

The bill would allow gambling firms to apply to the state Department of Justice for 10-year licenses on condition they ante up $30 million in licensing fees for each website.

Steinberg, a Democrat from Sacramento, joined Sen. Roderick Wright (D-Inglewood) in introducing SB 1463 on the last day for legislation to be proposed for this year.

"We believe that there are millions of Californians already gambling illegally on the Internet,'' said Mark Hedlund, a spokesman for Steinberg. "This bill sets up some standards and regulations and consumer protections.''

Senate President Pro Tem Steinberg also believes that the bill potentially could bring the state coffers hundreds of millions of dollars.

A coalition of card clubs and Indian casinos has been trying to get Internet poker legalized in the state for years, but previous bills by Wright stalled in the Legislature after other tribes objected that websites would hurt the business of their casinos.

Do you think that the addition of online casino sites would hurt business for American Indian casinos? I say any way to bring in money is a plus.

2012 Predictions Courtesy of Calvin Ayre

This week’s gambling news features Calvin Ayre and his thoughts for 2012. The founder of Bodog online entertainment and gaming brand has made a series of interesting industry predictions for this year. Last year’s rang true so he’s the guy to take notice of this year when it comes to online casinos.

I found Ayre’s predictions for each region on Casino.com. I had to laugh when I saw the misspelling of his name throughout.

Europe
There will be not a lot in terms of significant developments in the online gambling industry. Ayres has stated that “with faith in a common currency significantly shaken in 2011, the ongoing Balkanization of Europe’s gambling markets will only accelerate.”

America
Ayres long predicted that there would be no positive momentum for legislation regarding online gambling at a federal level even before the United State’s Department of Justice admitted that their Wire Act did not go past sports betting. However, with the recent announcement by the Department of Justice, it can be seen that the states are the ones holding onto the gambling decisions. in 2012, there is a 50 percent likelihood that one of two states will do emote gambling.

Asia
The Asian market is still in the infants’ stage, but it is much bigger than the rest of the world if individuals take a look at its brick-and—mortar casino profits. There has been no determination in regards to the companies that will be making a name for themselves in this region, but it will most likely not be public companies.

Latin America
While the continent of Latin America and never rival the continent of Asia in regards to scale; however, as far as gambling terms, Latin America is still mainly a virgin territory. With recent economic downturns hitting a majority of the area, causing the countries to look for new venues for money, Latin America may be second best (right behind Asia) market for targeting during the 2012 calendar year.

India
India is a huge market that tends to get overlooked a lot. Once an online gambling company figures out how to open this market, it will be like a slot machine getting all cherries – huge payout!

It could be a good year for the USA in terms of legalization. One can only hope. What are your thoughts on his predictions?

Gambling Commission Investigating Red or Black

Simon Cowell has managed to work his way into gambling news. I found the scoop at unrealitytv.co.uk. I’ve played the Red or Black slot game at an online casino but I’d have to disagree that the show makes it look easy to win.

“Simon Cowell may be in hot water yet again, after The Gambling Commission decided to launch an investigation into his ITV gameshow Red Or Black.

It has been reported that the gambling watchdog is concerned that the series – which aired on ITV1 last summer – may have glamorized betting by making it look ‘easy’ to win.

The series ran for seven nights and on each episode, one lucky contestant had the chance to walk away with a whopping £1 million, all based on a game of roulette. In the end, the show made four millionaires in a week and questions have now been raised about whether the premise of the format, would encourage vulnerable people to turn to betting, in a bid to solve their money worries.

Sources have told The Sun that the commission met with ITV bosses this week and want assurances that there will be changes made to the show, if it returns for a second series, so that it looks harder and requires a certain level of skill from the eventual winners.

Although the regulatory body does not have the official powers to shut the show down, it has been reported that ITV would keen not to upset officials and a source said:

“Put it this way, if the Gambling Commission kicks up a big fuss about your show publicly, it is unlikely that you would go ahead with it.”

“The Commission has concerns the show is glamorising gambling as so many people won £1million last time and did the best part of nothing to get it.”

It’s not yet clear whether channel bosses will want to throw their weight behind a second run anyway, as Red Or Black came nowhere near the expected ratings when it debuted in 2011.”

I thought it was down to pure luck when people won. For someone to think that it’s so simple doesn’t seem rational to me. Wouldn’t we all be rich if gambling was easy and glamorous? What do you think?

Women Gamblers on the Rise in the UK

More women in the UK are gambling these days. An interesting gambling news article in the Daily Mail. With the increase in accessibility of online casino, it’s no surprise that more and more woman catch on to the trend.

There has been a surge in gambling by women over the past decade, experts have warned MPs.

Excluding those who only enter the National Lottery, the proportion of the female population who gamble has soared by a third to more than half for the first time.

So many women are now problem gamblers that one addiction centre in London is offering child-minding services to encourage mothers to attend.

There have been particularly large rises in the numbers of women buying scratch cards, playing slot machines and betting online.

At the same time the number of ‘grey gamblers’ – over-75s and particularly widowed people – who have taken up betting has increased.

The revelation comes just weeks after the Daily Mail disclosed that teenagers are now twice as likely to have a gambling problem as adults.

A submission by the National Centre for Social Research to the Commons culture select committee, which is investigating the working of Labour’s 2005 Gambling Act, gives details of the changing profile of gamblers over the past decade.

The researchers wrote: ‘We see more women and older people becoming involved with gambling and an increase in the proportion of people who gamble regularly.

‘The latter is particularly important as higher levels of gambling involvement are associated with problem gambling.’

Figures in the British Gambling Prevalence Survey for 2010, quoted by the research team, show that men are still more likely than women to gamble, but that the gap is getting narrower.

In 2010, some 75 per cent of men said they had gambled over the past year, slightly down on the 76 per cent recorded in 1999. However, the proportion of women who gambled went up from 68 to 71 per cent.

If the effect of the National Lottery is taken out, the rise among women is from 41 to 53 per cent – almost a third.

Some 33 per cent of women took part in gambling during the week before they were questioned, the survey found, against 38 per cent of men.

Around 0.3 per cent of women are deemed to be ‘problem gamblers’, up from 0.2 per cent in 1999. 

Women aged between 45 and 65 are most likely to be frequent gamblers.

The report also looked at types of gambling. Women are far more likely to play bingo than men.

But while men are less likely to gamble on slot machines than a decade ago, the percentage of women playing them has gone up from 8 to 10 per cent.

Spelling out the soaring numbers of pensioners, widows and widows taking up gambling, the report said: ‘Estimates among those aged 75 and over increased from 52 per cent in 1999 to 63 per cent in 2010.

‘However, for those aged 16-54, estimates in 2010 were largely similar to those observed in 1999.’

In the UK, Bingo is very popular. Do you think that much of this could be due to women visiting their local bingo club? Is bingo really gambling in your opinion?

Source: Daily Mail

The Greatest Gathered in London

Making gambling news this week is the Gaming Intelligence Hot 50 list of 2012. Here’s all the info you’ll need from prweb.com.

The great and the good of the global online gaming industry turned out in London this week to celebrate the achievements of the Gaming Intelligence Hot 50, the annual list of the most talented, innovative and inspiring individuals working in online gambling.

The Hot 50, as chosen by a panel of experts, includes entrepreneurs and CEOs, regulators, technology wizards, lawyers and marketers from across the globe, reflecting the diverse range of talent that is driving an incredible growth curve.

“We often write about the success of companies and their top executives, but the aim of the annual Hot 50 list is to recognise the achievements of all those who are shaping the future of this vibrant industry” said Bobby Mamudi, Managing Editor of Gaming Intelligence.

Growth in the online gambling industry is bucking the global economic trend with the GIQ20 quarterly ranking of the fastest growing listed companies in online gaming showing an average growth rate of 58.9 per cent during the third quarter of 2011.

The GIQ Hot 50 includes industry legends such as Denise and John Coates of Bet365 and Isai Scheinberg of PokerStars, influential regulators such as the UK Gambling Commission’s Jenny Williams, as well as relatively unknown talents such as Daniel Lindberg, the CEO of online casino supplier QuickSpin, which is yet to launch a product.

Andrew Bulloss, a Hot 50 judge and the head of betting and gaming at international headhunters Odgers Berndtson, commented: “The list of industry heroes, some well-known, some unsung, recognises how the industry has changed and the diversity of talent needed for success. The industry is becoming much deeper, broader and international as it moves into the mainstream.”

According to Global Betting and Gaming Consulting (GBGC), the world-wide gross gaming yield in 2011 is estimated at US$34.4bn. The UK generates nearly 14 per cent of this amount with US$2.5bn and UK citizens accounted for 40 per cent of the Hot 50. The next most represented nations are Sweden, Israel and Canada, representing the innovation centres that have shaped the industry thus far.

As a player, who is your top in the industry?

What in the World is ICE?

I was playing at the WMS online casino, Jackpot Party, this week and I saw some chat going on about ICE. The player was asking the chat host about their booth and I had to wonder what that was all about. Jackpot Party is licensed in the UK and accepts only UK players at this time. The iGaming conference is taking place in London this month and WMS will have a booth there displaying their latest games. I wish they would launch another site. Now, that would be gambling news to me! Anyway, here’s the scoop on ICE directly from their website.

Everyone's talking about ICE…

Original thinking meets inspirational products underpinned by passion for delivering profitable gaming solutions. That's the compelling mix at ICE Totally Gaming.

ICE is all about:

Meeting world-leading innovators from every sector of the gaming industry

Getting a world view that no other event can deliver

Discovering new ways to drive your business forward

So, if you want to be part of the gaming event everyone's talking about, be sure to make the trip to London in January for ICE 2012!

The conference will be taking place in Earls Court. You’ve got vendors from every aspect of gaming including payment processors, software developers and casino operators. Apparently, online gaming folks come here to get deals and offer amazing exclusive offers to us, the players. They meet and wheel and deal to give us the best experience possible.

From what I understand, these conferences are open to those in the industry. No one can just walk in and explore. I think it would be amazing to allow players to enter and provide feedback. I have to wonder if there would be some fists flying.

What are your favorite online casinos? As a player, would you love the opportunity to meet the people that rule the world of online gambling?

Thoughts on Interstate Gambling

Legalization of online gambling has taken twists and turns and makes headlines on gambling news. An article was published called “Top-10 ways the industry could screw up online gaming in the U.S.” on CasinoCityTimes.com. Here’s one portion to ponder.

10. A federal or bust strategy

There are all sorts of logical reasons to want the federal government to regulate online gaming. At it's heart, online gaming is and should be interstate e-commerce. And as a result, it makes sense to create a national framework for online gaming. But there are significant obstacles facing federal legislation -- and the creation of good online gaming policy at the federal level (more on that later). And as a result, going federal or bust doesn't make sense.

In the House of Representatives, the Barton bill (named after chief sponsor, Rep. Joe Barton (R-Tex.)) faces an uncertain future. The bill, which would legalize online poker and criminalize other forms of online gambling, including lotteries, hasn't reached the mark-up stage. If the bill gets through the Subcommittee on Commerce, Manufacturing and Trade, and if the bill gets through the House Energy and Commerce Committee, it still faces a full floor vote. Barton has not been promised a floor vote by House Speaker John Boehner. And even though Barton told the Digital Gaming and Lottery Policy Summit he believes he has the votes in the House, it's hard to envision a scenario where Boehner will make his caucus take a pro-gambling vote in an election year. So a bill out of the House is unlikely.

In the Senate, the DOJ reversal on the Wire Act has given Senate Majority Leader Harry Reid more leverage. The Nevada Democrat can convince Republicans, including Unlawful Internet Gambling Enforcement Act (UIGEA) architect Sen. Jon Kyl (R-Ariz.), that in order to ensure most forms of online gambling are prohibited, they should legalize online poker and ban everything else. The problem in the Senate is senators who receive money from politically connected Indian tribes will not back Reid's approach, which confers a significant advantage to the Vegas casino companies Reid represents. In fact, it is in the best interest of many Native American casino operators to scuttle federal legislation -- especially with local casinos in position to enjoy the fruits of the DOJ Wire Act reversal.

Combine that with the fact that the best way for Reid to pass online gaming legislation is attaching a bill to must-pass legislation -- which is tricky enough in the best of circumstances, let alone an election year -- and the outlook for a federal bill is murky at best.

So if the outlook is murky at best, why insist on a federal or bust strategy when there are opportunities at the state level? I'm not sure. I would take what I could get, and use it as leverage to force Congress to act.

I absolutely agree with what was said in this article. Why go all the way when there is an opportunity for a beginning. This mess has to start somewhere and taking what you can get is certainly a smart strategy. Would you agree?

Online Gambling in the USA: A Business Opportunity

The hope that the USA will soon be free to gamble their hearts out in online casinos has taken center stage in recent gambling news. I found an interesting article that discusses the American Indian tribes in America and the possibility of those involved in the gambling industry to expand into the online market.

A government ruling that will allow states to legalize some online gambling could prod lawmakers to pass federal Internet poker legislation. This is a prospect that is dividing Indian tribes dependent on the gambling industry for their livelihoods.

Some tribes see legalization as a business opportunity to expand their operations into the online world. It’s dividing tribes because there are those that don’t have the means to make an investment into the internet gambling market. There is fear that they won’t be able to compete with some of grand sites to hit the net and brick and mortar locations may be swallowed up in the process.

Tribal leaders and American Indian casinos agree that federal online poker legislation as written, which would make online gaming legal across the country except in opt out states, would put too much pressure on the tribes.

“Now they are concerned that this ruling is going to be the impetus for the federal legislation,” said Penny Coleman, a lawyer representing the tribal nations. “They’re worried there’s going to be this big push now.”

The Justice Department, in a massively important ruling on December 24th, gave states the go ahead to start cashing in on intrastate online gambling systems that exclude sports betting.

States are already lining up and so are American Indian tribes.

There’s so much more to this issue. It seems that every aspect of online gambling in the states has caused upset somewhere. Is it all worth it?