World Trade Organization ruling favors Antigua

The World Trade Organization (WTO) released its public ruling in favor of Antigua and Barbuda (Antigua) in its dispute over internet gambling with the US. Last month a confidential version of the report was provided to the parties and leaked to the media, so today’s ruling came as no surprise.

“It vindicates all that we have been saying for years about the discriminatory trade practices of the US in this area, and we look forward to the US opening its markets on a fair and balanced basis as the WTO agreements and the international community requires,” said Minister of Finance and the Economy for Antigua, Dr. Errol Cort.
Cort added in a statement to Bloomberg News that today’s ruling “…offers hope to the global online gambling industry currently under siege by the U.S. Department of Justice.''

The big question is what happens next. The US is likely to appeal this finding, and if they do they’ll probably lose, but that will chew another year or so.

Antigua, with a population of approximately 70,000, can’t exert any real pressure by themselves. Their economy is too small to impact the US simply by increasing duties on goods.

They can seek sanctions called “cross-retaliation,” in which they would withdraw intellectual property protection for U.S. trademarks or copyright. These sanctions are legal at the WTO when an economy can't afford to impose traditional sanctions such as higher customs duties on goods.

While this is a drastic measure, it would have the effect of inviting software pirates and other intellectual property thieves to do business in Antigua in order to create the kind of disruption designed to force the US to bring its online gaming laws in line with their obligations to the WTO.

The prognosis is mixed. Mark Mendel, head of Antigua’s legal team, said: “The United States on one hand prohibits competition in remote gambling from Antigua while on the other promoting and protecting a massive domestic industry. If the WTO agreements apply under any scenario, they apply here.”

Las Vegas attorney Anthony Cabot was much more cautious as he assessed the situation, saying: “It means very little. Antigua is simply too small a trading partner with the US. If there is any potential in the ruling, it does at least give a roadmap to follow for any bigger trading partner with the US.”

Hey! Where's that official, public report from the World Trade Organization in the dispute over online gaming between the USA and Antigua?

Back in January I reported that the United States suffered another setback in long legal battle with Antigua over Internet gambling restrictions.

The trade dispute between the tiny Caribbean nation of Antigua and Barbuda and the United States centers on whether the United States should drop prohibitions on Americans placing bets in online casinos. A World Trade Organization ruling said that some U.S. laws were in line with international commerce rules, but others were not.

Antigua’s position is that that the United States has not complied with World Trade Organization (WTO) recommendations and rulings. The U.S. asserts that its laws are in line with trade rules. Antigua claims that online gaming is a lucrative source of revenue and provides an income for hundreds of islanders. They claim that US prohibitions harm Antiguan efforts to diversify what is now almost exclusively a tourist-based economy.

Antigua filed its case before the WTO in 2003, with the tiny nation — Antigua and Barbuda has a population of approximately 70,000 — still grappling with the economic muscle of the United States. An April 2005 WTO ruling, which both sides claimed as vindication, focused on the narrow issue of horse racing, saying that foreign betting operators appeared to suffer discrimination.

A three member panel met a few months ago to review the facts and render a decision. This resulted in a preliminary confidential report issued in January to both parties. A final, public report will be issued in March.

Gretchen Hamel, a spokeswoman for the U.S. Trade Representative's office, confirmed that the WTO panel "did not agree with the United States that we had taken the necessary steps to comply" with that ruling.

March has come and is nearly gone. I’m waiting to see the public report, which ought to be released any day now, and along with it, some official commentary from the US Government.

You ought to be eagerly awaiting this report too. It should provide some much needed muscle to push the US to modify its stance regarding gaming. While Antigua is a tiny nation that poses no real economic threat to the United States, if the ruling serves as a rallying point for larger nations with legally regulated online gaming — such as the UK — to stand shoulder to shoulder with Antigua, there might be enough leverage for something positive to happen.

Why Canada?

Earlier this week I reported that the Neteller Plc Group announced that they will no longer process transfers related to online gambling sites on behalf of customers residing in Canada or Turkey.

It's easy to understand why Neteller took the action they did in Turkey. The Turks enacted some new legislation making online gaming offlimits there.

But why Canada? The Canadian government did nothing to change it's posture regarding online gaming, and Canadians have been moving money into and out of online gaming site via Neteller since the day Neteller began operations, and they've been doing so with no heat whatsoever.

A visit to Neteller's web site and their FAQs was less than helpful, as you'll soon see from this verbatim quote:

Why did NETELLER make this decision? NETELLER decided to cease online gambling transactions for Canadian members due to increased uncertainty about the status of certain activities related to online gambling in Canada.

So what does this mean in plain English? I'm not sure. The key phrase, "uncertainty about the status of certain activities related to online gambling" doesn't tell me anything.

Was there a gun to someone's head?

Were threats made? And if so, to whom? And who made them?

Did the US Government pressure Neteller into this action as a precondition for dropping charges against former Neteller driectors and founders Lawrence and Lefebvre?

Did the Department of Justice lean on the Canadian government and ask that they pressure Neteller?

There's something behind this decision and I'd like to know what it is. But I'm never going to know as long as the underlying reason is couched in such terms as, uncertainty about the status of certain activities related to online gambling in Canada.

Give me a break, please. Or give me the reasons in plain English. Either one will do.

Jamie Gold admits to two WSOP violations

Yesterday Harrah’s announced that the World Series of Poker will not penalize 2006 Champion Jamie Gold for two rules infractions that occurred during the 2006 WSOP Main Event.

Gold told the New York Times during an interview that he exposed a hole card to an opponent. He said that he also told an opponent he held top pair and top kicker after the opponent bet. Both actions violate WSOP tournament rules.

Under the 2006 WSOP rules, Gold would have been subject to a 10 minute penalty. Rules for the 2007 WSOP call for a 10-hand rather than 10-minute penalty.

After The New York Times interview appeared, WSOP officials reviewed video footage and talked to Gold about them. Gold acknowledged and attributed them to the excitement of playing in his first-ever WSOP Main Event.

The WSOP officials determined that Gold did not deliberately violate WSOP rules and that no penalties would be retroactively invoked.

Did the UK Hang Itself Out to Dry?

Is the UK about to shoot itself in the foot?
Everyone was set for an influx of online gaming operators into a regulated and controlled UK environment.

The UK was poised to become a model for how online gaming could be done right, while seizing control of the market, or most of it, in the process. Firms located offshore, including those situated in other European Union jurisdictions, were thought to be just a boat ride away from setting up shop in London or thereabouts.

But that possibility is vanishing like a herd of horses over the hill following the establishment of a 15 percent rate as the new remote gaming tax. This rate was announced just a few days ago in Chancellor Gordon Brown’s budget statement, to the dismay and shock of those in the gaming industry.

The new tax rate is set at the same level as the gross profits tax on UK bookmaking operations. Industry watchers were hoping, and had predicted, a much lower rate.

According to those close to the industry, a rate this high is likely to deal a fatal blow to any real hopes that the UK will become the center of the remote gaming universe.

John Coates, chairman of the Remote Gaming Association (RGA), said “This is a golden opportunity missed. Setting rates at an appropriate level could have attracted offshore remote gaming operators to the UK. This short-sighted decision may even force existing UK remote gaming businesses to relocate offshore to remain competitive.”

Online operators were not the only ones left disappointed by the budget. UK casino operators saw gaming duty raised to 15 percent also, while a new rate of 50 percent has been introduced for higher revenue casinos.

According to industry insiders, this tax rate was established without consulting the industry, and is almost certain to have a negative impact on profit performance throughout the sector.

Does the right foot know where the left foot is going?

It looks like a big failure to communicate. With the UK poised to get into the online gaming business in a big way, this action puts the kibosh on it. It’s difficult to see any firms eager to establish a presence in the UK under these conditions. Sure, it’s a properly regulated environment, with safety and checks and balances built into a system that only a stable government can offer, but the price is so high that it will render uncompetitive any online site locating in the UK.

While it’s usually better to be safe than sorry, this resembles a situation where firms locating in the UK would be choosing to be sorry over safe — and I don’t think that option is going to fly.

If you want to gamble on gambling....

The Stanford Group, a privately held firm that provides wealth management and investment banking for institutions and emerging growth companies, issued a rather interesting report. Essentially, if you want to gamble on gambling, the Stanford Group has set the odds.

They are not optimistic that efforts to overturn the Unlawful Internet Gaming Enforcement Act (UIGEA) will succeed. Their report says, "We do not believe there is the political will to overturn this legislation or to carve out poker from the prohibition. More likely would be legislation authorizing the National Institute of Science or a similar nonpartisan think tank to study whether Internet gambling could be effectively regulated and taxed. We also expect the Federal Reserve to release shortly the rules governing how banks should stem the flow of financing the Internet gambling websites."

9-to-1 Against Lifting the Gaming Ban
There is, in the opinion of the Stanford Group, “…only a 10 percent chance that Congress lifts the gambling ban."
The Stanford Group does not believe that legislation from the Judiciary Committee that would define poker as a game of skill will ultimately exempt it from the current law.

4-to-1 Against a Poker Carve-Out
"We believe,” their report says, “the odds are against [a poker carve out] for many of the same reasons that Congress will not overturn the broader prohibition. It leaves Democrats accused of interfering with criminal investigations and it would force them to figure out a way to overcome the ability of Senator Kyl to Stymie legislation in the Senate."

In the Stanford Group’s opinion, a poker carve-out is given a 20 percent chance.

A gaming study by an independent think-tank is an odd-on favorite to succeed
The good news in their report is “…a 60 percent chance for studying of legislation and taxation.”

"This is the option that has the greatest chance of passing,” said the Stanford Group. It provides a means for Frank and others who opposed the prohibition to declare victory without actually overturning the prohibition. We doubt that Kyl and others would expend substantial political capital to block an 18-month to 24-month study of whether it is possible to regulate and tax Internet gambling."

There you have it. If you want to gamble on gambling, now you know the price.

Neteller Pulls the Plug in Canada and Turkey

Good Night, Canada
The Neteller Plc Group announced that they will no longer process transfers related to online gambling sites on behalf of customers residing in Canada or Turkey.

They will cease processing online gambling related transactions for Canada-resident customers on Monday April 9, 2007.

As of today, March 26, 2007, Canada-resident customers are no longer able to deposit funds using Neteller’s instaCASH service either directly, or from any online gambling site.

Canada-resident customers will be able to continue using their e-wallet accounts for non-gambling transactions, including peer-to-peer and pre-paid debit transactions.

Customer funds, including those of Canadian residents, are held in a pooled, segregated trust account and will be available for withdrawal by customers, on demand. Canadian customers continue to be able to use their e-wallet accounts for non-gambling transactions.

Goodnight Turkiye, too
Because of recent Turkish legislation that prohibits certain forms of online gambling to be offered by any “unauthorized” domestic or foreign company to citizens in Turkey, Neteller is beginning a phased withdrawal of the payment services offered to online gaming customers in Turkey.

I’m not going to get into the details of it here, because I don’t think I have many readers in Istanbul, Ankara, Kusadasi, or anywhere else in Turkey. If you are reading this in Turkey, relax, pour yourself a nice glass of apple tea, and check things out at Neteller’s web site.

Neteller announced that their loss of Canadian business is likely to have a material negative impact on their results for the year ending 31 December 2007.

Significant reductions in staff are not anticipated, and Neteller will continue to focus on the growth markets of Europe and Asia.

Neteller’s shares remain suspended from trading on AIM because of continuing uncertainties.

Neteller is working towards finalizing audited annual results for the year ended 31 December 2006 and will announce the date when they will be published.

Further information is available on the Group’s website in the form of updated FAQs.

European Turf Wars Over Online Gaming Not Unlike Our Own

The United States isn’t the only place in the world where protectionism’s greed raises its ugly little pointed head in turf wars over online gaming. In much of Europe, betting is still a state-controlled monopoly.

But European Union members may not preclude foreign EU firms from operating in their country as long as they allow domestic companies to operate gambling sites and lotteries, or allow the national government to run all gaming as a monopoly.

Germany was recently warned by the European Union of possible legal action if it bans online betting and internet-based lotteries. According to Guenter Verheugen, the European Union's industry commissioner, German states have a month to rework their draft legislation.

The EU also criticized Denmark, Finland and Hungary for blocking foreign betting firms.

Germany, like the United States under the Unlawful Internet Gaming Enforcement Act (UIGEA), has a carve-out in their laws for horse racing.

The European Union asked Germany to reconsider their ban on lottery and internet sports betting based on a challenge brought forth by the United Kingdom and Austria. UK firms such as Ladbrokes, Stanley Leisure and Unibet, would benefit from more liberalized gaming laws, as would Austria’s Betandwin.com.

Planet Poker: R.I.P.

Planet Poker, the first of the online cardrooms, has taken their last bullet and will soon depart. The following press release was issued today.

After 9 years in business, Planet Poker has made the difficult decision to cease real money operations. Management regrets this decision but the impact of the Unlawful Internet Gambling Enforcement Act in the U.S. leaves no reasonable alternative.

During the past several months, Planet Poker explored every reasonable option to continue real money operations. This included working with other cardrooms and ecommerce processors to find solutions to the issues existing in the industry today. Unfortunately, no viable solution surfaced.

As always, your funds are safe and secure at Planet Poker. We are pleased to announce that we have made arrangements to allow players to transfer remaining funds from Planet Poker to another cardroom. Please sign into Planet Poker and select the "Transfer Now" button to start the transfer process. Alternatively, you may elect to cashout remaining funds via the Cashier page.

Real money tables and tournaments will continue at Planet Poker through to 31 March 2007, but effective immediately you can no longer make a deposit.

Neteller and Feds Reach Agreement to Return Customer Funds

Neteller announced that it has signed agreements with the United States Attorney’s Office for the Southern District of New York (“USAO”) earlier today, These agreements will allow for the transfer of funds back to US customers within 75 days.

As part of this process, Neteller hired Navigant Consulting, Inc., a forensic accounting firm, to examine Neteller’s financial position and provide a report to the USAO. These agreements give Neteller a roadmap and a timetable by which they can extricate themselves from their difficulties, and return customer funds according to schedule.

“We continue to be committed to returning funds to our US customers and working with the US Attorney’s Office,” said Ron Martin, Group President and CEO. “Progress, while not always visible to the outside observer, has been steady and these agreements mark a milestone in the process.”

Further updates with relation to the US situation will be made as soon as there are any material developments.

In the meantime, US customers should visit updates.Neteller.com more information, including newly updated FAQs that provide additional clarity around certain issues raised in a number of public forums. Additionally US Customers can contact Neteller Customer Service on the web or by phone at 1-888-258-5859.

Follow-up on the Nolan Dalla Chip Confiscation Story

Here’s an update on the Nolan Dalla story. For those of you unfamiliar with it, please go to my blog entry for Tuesday, March 13, 2007, entitled, MGM Grand confiscates $5,000 chip from Nolan Dalla.

The entry on March 13 was my words. The italicized material is all Nolan’s.

On Monday afternoon, I went down to the Nevada Gaming Board and spoke with an Enforcement Agent. From our conversation, it looks like I am in serious danger of losing my money. Federal and state laws both declare that chips are "casino property." Casinos have an obligation only to the player who played with the chip, and no one else.

Never mind that there are 70-year old traditions dealing with the exchange of casino chips and public misconceptions (myself included) that the chips are legal tender in Las Vegas. Nothing could be further from the truth.

I have told the truth about this chip and its source to everyone who has asked me about it. I have also produced valid ID and followed every law with regard to exchanging the chip for cash. That does not seem to matter to MGM.

The reason why I am fighting this case has everything to do with player/gambler/consumer rights versus the powers of corporate casinos. Here is yet another example of the decay, if not extinction, of those rights.

Several persons contacted me and asked why I did not -- (a) ....break the casino into smaller denominations prior to approaching the window (b) ....use what contacts I have within gaming to get the chip cashed (c) ....refuse to turn over the chip (d) ....lie at the cage and say I got the chips from a gaming table.

My answer is -- sure, I could have done a number of things differently that may have increased my chances of successfully cashing the chip. However, I have done nothing wrong here and am determined to make this a test case which illustrates how far some casinos can (and do) go to screw over the public and gamblers.

This is an important precedent that needs to be understood by everyone, not to ever accept any chips as an exchange or payment. Also, be wary of cashing any and all large denomination chips. If I were anyone out there reading this, I would NEVER take any chip larger than $100 from any source -- and that includes activities within the casino. If you are asked why you will not accept a "color up," cite this case.

I have never had any problem cashing chips of this denomination at the Bellagio, LV Hilton, or the Horseshoe (pre-2003). I assume that non-MGM casinos would not have treated me like a criminal, since I have never encountered a problem anywhere else before. This is an issue which is entirely the doing of the MGM.

As for my actions and what I recommend, here are my statements:

(1) I will continue to fight this publicly and will do everything in my power to tarnish the name and reputation of the MGM Las Vegas.
(2) I do not ask for nor encourage a public boycott. Everyone is free to take what information I provide about this case and make up his or her own decisions about his own consumer activities.
(3) I may take legal action. In the meantime, my role will be to educate my friends and fellow gamblers about how far some casinos will go in their dealings with you.

I'll keep you up to date on this story as it develops. While there is law that states that chips are not a parallel currency, there is an overriding tradition in which gamblers in Las Vegas have traditionally settled wagers with casino chips, and the casinos have a long-established past practice of accepting chips in the vast majority of circumstances without checking to make sure that the person cashing them is the person who purchased the chips to gamble with in the first place.

Something smells here. And I think it's the huge disconnect between what the law says and the traditional way things have always been done. If the MGM wants to adhere to the letter of the law, and back away from past practices, I think some signs around the casino cage notifiying gamblers of a change in policy and a date on which the change takes place would have beent he way to do it.

To just wake up and decide to do things differently one day is capricious management at best, and Nolan Dalla shouldn't have to lose $5,000 to help effect a policy and procedure change at one casino.

It's just not right.

Neteller Two Hearing Postponed Until April; Angry Customer Coalition Threatens Legal Action

Neteller Case Rescheduled for April 16
The March 16, 2007 hearing for two former Neteller Board members, Stephen Lawrence and John Lefebre, was postponed until April 16, according to an announcement by Rebekah Carmichael, Information Officer for the United States Attorney, Southern District of New York. This hearing deals with arrests of Neteller co-founders Stephen Lawrence and John LeFebvre, who were charged with conspiracy to transfer funds with the intent to promote illegal gambling.

Rumors circulated all last week that the case could be dropped and that this delay may be a response to recent activity from lobbyists.

No Release of Funds on the Horizon
The continuance has a dark side too. It prevents the release of evidence, including funds now frozen, from US customers.

Neteller Customers Form Coalition and Contemplate Legal Action
More than 250 frustrated Neteller customers organized into a group called the Neteller Customer Coalition. Members of that group are furious over Neteller’s decision to deny US customers access to their funds.

According to the group’s Eric Goldstein, “more and more people are losing patience every day, and these people better hear some good news from Neteller very soon.” The group is been considering initiating legal action against Neteller as early as March 19.According to Goldstein, the group has grown quickly since its inception back in late February, with an average of 30-40 new members daily.

Some members of the group only have a couple hundred dollars at Neteller, while others have tens of thousands. “The injustice of this whole debacle is much larger than just dollar amounts,” says one member who is due $800.

Another member has $84,000 frozen by Neteller, funds he earned legitimately as a site affiliate -- not by gambling. And yet another victim was cut off from the $35,000 he was paid as a writer for various poker publications.

In total the group’s members have over $750,000 frozen by Neteller, and more than a dozen individuals have more than $20,000 frozen.

PokerPages quoted coalition founder Goldstein as saying that, “These are the kinds of figures that can keep a killer legal team motivated.” He also said that “There are still thousands of other Neteller customers who don't know about us.” Despite a lack of presence in the media, word of mouth is brining in about 30 – 40 new members daily.

Goldstein is angered by both the Government’s stance and Neteller’s passivity. PokerNews quoted Goldstein as saying, “Between Neteller and the DOJ, thousands of citizens who have done nothing wrong have millions of dollars being confiscated without any real explanation or means of resolution.”

For Further Information
For questions or further information, contact yahboohoo@hotmail.com, NetellerCustomerCoalition-owner@yahoogroups.com, or http://sports.groups.yahoo.com/group/NetellerCustomerCoalition

Congressional Action Looming to Overturn UIGEA

Nevada Congressional Delegation Seeks Study of Online Gaming

Nevada congress members Shelley Berkley (D-NV) pictured right, and Jon Porter, (R-NV) are working on legislation that would require the National Academy of Sciences to conduct an 18-month study of online wagering. A bill is expected within the next few weeks, and its supporters believe that the study will assure Congress that safeguards are in place to adequately regulate online gaming.

“The purpose of our bill is to provide a comprehensive study with detailed information on the expanded growth of Internet gambling," Berkley said.

When complete, the study will also set the stage for legislation after the next presidential required to enter this market in the future.

Barney Frank (D-MA) Considering Legislation to Overturn UIGEA

Meanwhile, the office of Congressman Barney Frank (D-MA) confirmed that he is considering legislation that would repeal the Unlawful Internet Gambling Enforcement Act (UIGEA).

A news item about this appeared on the Financial Times website earlier this week and was confirmed by Frank’s press liaison in a conversation I had with her yesterday. Frank is on record as calling UIGEA one of the “stupidest laws” ever passed and has stated, “I am working on legislation to cut back on this internet gambling thing… I think it’s preposterous.”

Nevertheless, no specifics about how this might be accomplished were available from Frank’s office, and no timeframe was given — though his staff stated that “the Congressman is still thinking about it, and has not begun to develop any new legislation.”

Berkley was quoted as saying that she and Frank talked a few days ago and plan to meet again soon to discuss this issue.

While supporting legislation to overturn or modify UIGEA might not be sufficient to accomplish the task, just bringing it forward could signal the US Department of Justice to discontinue their witch hunt against the online gaming community.

Rumors Continue to Surface. Will Charges Be Dropped Against Neteller Two?

On a somewhat related note, rumor mills are rife with the possibility that charges will soon be dropped against John Lefebvre and Stephen Lawrence, the former Neteller directors charged with violating the 1961 Wire Act, which deals with the illegality of sports book operations.

A statement from the office of Michael J. Garcia, United States Attorney, Southern District of New York, says that the arrests were made for the “creation and operation of an internet payment services company that facilitated the transfer of billions of dollars of illegal gambling proceeds from US citizens to the owners of various internet gambling companies located overseas.”

None of this speaks to poker, although it’s clear that these arrests and Neteller’s subsequent pull back from the US market dealt a strong blow to the poker community too.

World Series of Poker Announces Changes for 2007

The World Series of Poker announced yesterday that a wing will be built next to last year's tournament area to accommodate more tables and players at this year’s event, which runs from June 1-July 17. The total number of tables used for tournament play will be 258, up from 200 in previous years.

Other changes for this year’s WSOP range from the number of starting chips in each event to dealer training.
Approximately 300 Las Vegas-based dealers will be trained and certified in all the games scheduled to be played this year. Las Vegas based dealers will handle most of the WSOP work, while dealers from properties outside of Las Vegas will backfill fill their shifts at other casinos.

Harrah’s will double the number of starting chips to give players more play. So rather than beginning with $1,000 in a $1,000 buy-in event, players will begin with $2,000 in chips.

Harrah’s is making plans to host 10,000 players for the main event (8,773 people played last year). Even if the attendance is actually smaller, their planning is based on 10,000 — better to be safe than sorry.

While Harrah’s has loosened its rules on wearing logos, it will ban logos on from online sites that serve U.S. customers. Logos from sites that DO NOT serve U.S. customers will be allowed.

For more details and a complese schedule of events, check out www.worldseriesofpoker.com

MGM Grand confiscates $5,000 chip from Nolan Dalla

Like so many others in Las Vegas, my good friend Nolan Dalla made the unfortunate mistake of assuming that casino chips liquid, just like cash. It turns out they’re not, and the lesson he’s learning might cost him $5,000.

Dalla, who’s the media director for the World Series of Poker and for Harrah’s WSOP circuit poker tournaments, received the $5,000 MGM Grand chip as payment for a gambling debt. When he tried to cash it at the MGM, it all went horribly wrong.

Asked how he had gotten he chip, Nolan told the employee in the cashier’s cage that the chip was received in payment of a debt. They person who gave Dalla the chip was phoned, but he told them that he received it from a someone else. Because he couldn't prove that the chip had been obtained legally, it was confiscated by a cage supervisor and all Dalla had to show for his efforts and his chip is a receipt.

The sad truth of this fiasco is that chips are not currency, and today’s Las Vegas is not the good old days, when casino chips amounted to a parallel currency. Though chips still circulate as parallel currency throughout Las Vegas, they are not legal currency. The use of chips for any monetary purpose outside the casino is prohibited by law, and while chips are considered a stand-in for cash, it is only for gambling.

According to Dalla, “…it's very scary for gamblers that the burden of proof is on us. It's like the IRS. They think everyone's a cheat."

Despite the seizure of his $5,000 chip, there is some light at the end of Dalla’s dark tunnel. While the burden of proof is initially on the person trying to cash a chip to show how he obtained it legitimately, once a chip is seized and the customer complains to state regulators, the burden shifts and the casino must prove its case.

Still, it’s a sobering, somewhat frightening, and ultimately an ugly picture, and we’ll see how this one plays out in the months to come.

International Gaming Conference to meet in Ireland, May 6-8

The International Gaming Conference & Expo (IGCE) scheduled its first 2007 gathering May 6-8, at The Burlington Hotel in Dublin, Ireland. The chosen venue destination is a four-star property with proximity to the city, airport, shopping, and tourist attractions.

IGCE’s press release press release stated that the original location was to have been Cancun, Mexico, but the high degree of difficulty in traveling there from Europe offset the ambience.

I’m taking this to mean that a lot of potential attendees don’t want to chance setting foot in the United States when they change planes. Given the current political climate, Costa Rica, which looked like a natural alternative to Cancun, was scratched too because many attendees would have to travel through the United States to get there.

Dublin is accessible for all of Europe and Asia and provides all the amenities required for a conference except for a white sandy beach and warm water for attendees to dip their toes in.

The focus of the conference in Dublin is billed as "What's Next?" as attendees attempt to determine the direction of the gaming and gambling the U.S. and off-shore.

Additional information on the conference is available by emailing info@igconference.com, or by calling 1.215.441.5887.

IGCE has tentatively scheduled its Fall (September) conference for Bangkok its September conference.

World's largest law firm to advise Neteller in their fight with the US Department of Justice

According to the publication “Legal Week,” London-based Clifford Chance, the largest law firm in the world, has been retained by Neteller to advise them on the ongoing investigation by the US Department of Justice (DoJ).

Clifford Chance has regulatory and securities teams on hand in New York and London to support Neteller in their discussions with the DoJ, which froze the payment processor’s funds a month ago.

Regulatory specialists and white-collar crime experts from within the firm are also advising Neteller in the US while UK equity capital markets experts are working closely with Neteller in the UK, where the company had its stock listing suspended last month.

Another team is working closely with Neteller on its obligations to the UK's Financial Services Authority (FSA), an independent body with a wide range of rule-making, investigatory and enforcement powers aimed at promoting efficient, orderly and fair markets and to help retail consumers achieve a fair deal.

All of this came about following the arrests of Neteller’s two Canadian founders, John Lefebvre and Steven Lawrence on racketeering and money laundering.

Former U.S. Senator and devoted poker player Al D'Amato leads efforts to protect America’s favorite card game

On February 15 — three weeks ago — I reported that former US Senator Alfonse D’Amato would soon be lobbying on behalf of the online poker industry.

While it was a widely reported open secret within the poker community, the Poker Player’s Alliance did not confirm that the deal with D’Amato was done until yesterday. The Poker Players Alliance (PPA), a grassroots organization of more than 160,000 poker enthusiasts, announced on March 5 that Alfonse D'Amato joined them to serve as Chairman of the Board and help lead efforts in Washington D.C. to protect the game of poker.

"I have had a passion for poker since my childhood, and for politics almost as long. This new position will allow me to fuse these passions and help establish sensible policy that allows Americans to enjoy the great game of poker in the venue of their choosing," said the former senator from New York, Alfonse D'Amato.

Michael Bolcerek, president of the PPA added, “We are thrilled to have Senator D'Amato take up our cause to promote and protect the game played by millions of Americans. His enthusiasm, tenacity and political astuteness will bolster the influence of the PPA and help earn poker a much deserved exemption from the recent online gaming law. For the past 18 months Linda Johnson, the First Lady of Poker, skillfully lead our organization as Chairwoman, today the First Senator of Poker will lead the charge."

The Poker Players Alliance will work with Congress to provide a skill game exemption for poker and pave the way for eventual regulation and taxation of the industry in the United States.

"Prohibitions don't work; they only create unintended consequences. The American people know this and we are going to make sure Congress knows it too," said Senator D'Amato. "We need common sense regulation of Internet poker. Prohibition will only drive the industry underground and strip away any protections for children and services for problem gamblers."

Poker and Charity: A continuing Good News Story

Antigua’s Finance Minister, Dr. Errol Cort, announced that the Calvin Ayre Foundation is implementing two initiatives aimed at advancing the educational opportunities of the local Antiguan youth.

The sponsorship is part of billionaire Calvin Ayre's interest in contributing to Antigua’s social development on the island that is home to his foundation's headquarters. "We're extremely motivated to build on the educational needs of the local Antiguan youth, and we look forward to carrying out many more projects in this area in the years to come."

Calvin Ayre Foundation was created by Ayre in 2004 as a way to increase the size and scope of the charitable projects Ayre carried out throughout the previous decade. The foundation is now actively involved in charitable initiatives in the Philippines, Vietnam, Costa Rica, Antigua and North America, and plans on increasing its presence in several other regions of the world in 2007, including the sponsorship of the higher education needs of underprivileged youths; constructing schools and sponsoring the educational development of underprivileged children; and constructing housing for those who could not otherwise afford basic living essentials.

Paul Wasicka wins National Heads Up Poker Championship

Kudos to Paul Wasicka for winning the National Heads Up Poker Championship.

With this win, his second place finish in the 2006 World Series of Poker, and his fourth place finish just a week ago in Commerce's Los Angeles Poker Classic final event -- good for more than $450,000 -- Wasicka is showing that he is not just a one-time-wonder. He's had an amazing run over the past year, and with these finishes, he now has the bankroll to prove it.

Sometimes it takes a while to determine who goes on to stardom. In the aftermath of the 2006 WSOP, which was dominated by the Jamie Gold-Crispin Leyser dispute over Gold's obligation to Leyser, not much attention was paid to the other finishers.

But more than half a year later Wasicka seems to have broken out of the pack with a couple of amazingly good performances under his belt, and is poised to join poker's elite if he keeps it up.

Online poker rooms moving INTO the US market

StraightFlush Poker and BetUS.com have moved their poker rooms to the Cake Network, an addition to the number of online poker rooms serving US players.

With firms pulling out of the US market on a seemingly weekly basis, it’s refreshing to see movement in the opposite direction.

The rub, of course, is the same as with all other online poker rooms serving US players: How do I conveniently and quickly move money into and out of my poker account now that Neteller has flown the coop?

That still remains to be answered and we’ll see what develops in the coming weeks and months.

Get your facts right...

I read an article over on another web site that was headlined, “Party Poker Reports Huge Losses.” The article read as follows: PartyGaming PLC, the parent company of Internet poker room Party Poker (www.partypoker.com), has announced that its annual net profits for 2006 are down a whopping 56% from what they were in 2005.

The company blamed the drop-off on U.S. anti-online gambling legislation that passed last year and forced Party Poker to abandon the U.S. market, which was most of its business.

Annual net profits for 2006 were $128 million, down $165 million or 56% from the $293 million in annual net profits the company recorded in 2005, PartyGaming officials said.

The article went on to describe Party as an "also ran." I don't know about you, but in my book as it’s tough to call a firm earning $128,000,000 an "also-ran." While they’re not dominating the market as they were prior to passage of UIGEA, their numbers are still higher than the vast majority of their competition, despite suffering a catastrophe not of their own making, and having to turn on a dime in order to rebuild their business in a new market.

While Party is surely not the company it was prior to UIGEA and probably never will be, they are still a viable, big player in online poker.

There’s an enormous disconnect between the headline and the text of that article, and the headline is disingenuous at best and completely false in terms of stating PartyGaming's financial results for 2006. Party Poker did not lose money. While they certainly earned less than they did the preceding year, a net profit of $128,000,000 is anything but a loss, and whoever is responsible for writing the headline that accompanied that story ought to get his ducks in a row.

Just another strange day at the office.....

Playtech 2006 Revenues Rise Despite Pulling Out of the USA

Poker and casino software developer Playtech showed an annual rise in total revenues of 89 percent to $90 million. While casino revenues increased 81 percent in 2006, poker revenues rose by 309 percent.

Expansion in Europe spearheaded their success along with licensing agreements with Sino Strategic International, China’s largest gaming network. They also put together a successful licensing deal with a leading Mexican casino operator. This expansion more than offset losses in the USA, where online gaming operations were shut down with the enactment of the Unlawful Internet Gaming Enforcement Act (UIGEA).

Chief executive Avigur Zmora said: “The US Unlawful Internet Gambling Enforcement Act 2006 forced many gaming operators to radically change their business model to survive in the new international environment, (but) it highlighted the great strength of Playtech as a software provider to the wider gaming industry and clearly vindicated the board's strategic decision made over three years ago to concentrate on geographical diversification.”

France Mimics the USA; How Strange is That?

France moved to eliminate any online poker and online gaming not controlled by their state-owned monopoly. They did this by passing laws making competition illegal and by pressuring competition to close down.

Seemingly taking their cue from the United States, France justified their actions by calling them anti-terrorist measures designed to combat money laundering, which, in my opinion, is something the French government never seemed to care much about in the past.

Their state-owned monopolies, La Francaise des Jeux (lottery and sports betting) and Le Pari Mutuel Urbain (horseracing) have the French wagering field all to themselves.

In the past few days PartyPoker announced that it will not accept any new real money accounts from French players, though existing French players can continue playing, for now. No reason for this move was given.
In the fast moving world of online poker and gaming, this is just another day at the office.