Thursday, May 7, 2009

UPDATE 2-Bill unveiled to reverse U.S. online gambling ban

* Rep. Frank's bill reverses ban on online bets

* U.S. Treasury would get authority to license operators

* Online gamers' share prices rise (Adds share prices, details)

WASHINGTON, May 6 (Reuters) - Legislation aimed at reversing a 3-year-old ban on Americans placing online bets was introduced on Wednesday by U.S. House Financial Services Committee Chairman Barney Frank.

The Internet Gambling Regulation Consumer Protection & Enforcement Act would establish a federal regulatory and enforcement framework for online gaming.

Frank said the bill would give the U.S. Treasury Department the authority to establish regulations and license Internet gambling operators.

The Treasury would also have the authority to revoke or terminate the license of any operator that violates the law. Enforcement actions could also include fines, according to the bill.

"The government should not interfere with people's liberties," said Frank.

The Massachusetts Democrat also told reporters he is introducing separate legislation to freeze the implementation of online gambling regulations under a Bush administration-era law.

He added that he has not spoken to members in the Senate or the White House about the issue but plans to do so soon.

Hopes that the U.S. ban would be reversed pushed stocks of online gaming companies PartyGaming (PRTY.L) and 888 (888.L) higher. Shares of 888 gained 7 percent to 104.75 pence, and PartyGaming rose 6 percent to 276 pence.

"This legislation will be politically contentious and take time to be passed or defeated. During that time online gaming shares are likely to perform well as the option value of a potential return to the U.S. market increases," said Evolution Securities analyst Ivor Jones.

European online gambling firms lost billions of euros in value after Congress made it illegal for banks and credit card companies to make payments to online gambling sites.

Republicans controlled the White House and Congress when the Bush-era law was approved. Now, Democrats are in control in both branches of the government, but it is unclear how the Obama administration will handle the issue.

Frank's bill quickly drew criticism from a senior Republican lawmaker opposed to gambling.

"Illegal off-shore Internet gambling sites are a criminal enterprise," said Representative Spencer Bachus, the top Republican on the financial services committee. "Allowing them to operate unfettered in the United States would present a clear danger to our youth, who are subject to becoming addicted to gambling at an early age," said Bachus from Alabama.

Frank said safeguards are in place to make sure wagers are of legal age, protect privacy and combat fraud and money laundering. (Reporting by John Poirier; Additional reporting by Matthew Scuffham in London; Editing by Tim Dobbyn, Richard Chang)
(Credit: Reuters)

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New Online Gambling Bill Introduced in U.S. Congress

Internet Gambling Regulation Consumer Protection & Enforcement Act introduced today

May 6, 2009 (CAP Newswire) -- The eagle has landed! After months of anticipation, U.S. House Financial Services Committee Chairman Barney Frank has introduced into the U.S. Congress new legislation that would not only reverse the UIGEA (Unlawful Internet Gambling Enforcement Act of 2006), but would also establish a legal regulatory framework to allow online gambling in the United States.

The new bill, officially called the Internet Gambling Regulation Consumer Protection & Enforcement Act, would give the U.S. Treasury Department the authority to regulate how Internet gambling is conducted in the country. This would be accomplished through a system of licensing of gaming companies; the Treasury Department would have the authority to issue or revoke such licenses.

In an interesting side note, Representative Frank told reporters that he will also introduce a separate piece of legislation that will "freeze" the implementation of the UIGEA.

The bill is highly anticipated not just in the United States, but overseas as well. Online gambling firms based in Europe have “lost billions of euros in value” because of the UIGEA, reports Reuters news services. In addition, the ban has resulted in a tense trade situation between the U.S. and the EU, and some unfortunate (and many say unfair) prosecution of European gambling companies like PartyGaming.

The fact that the Congress and White House are now in Democratic hands is predicted to help passage of the new law. However, it’s still not a sure bet, as opposition to online gambling (and all forms of gambling) remains strong in some U.S. political quarters.

For example, Representative Spencer Bachus, also on the House Financial Services Committee, has already come out in attack of the new bill. "Illegal off-shore Internet gambling sites are a criminal enterprise," Bachus was quoted in the Reuters article. "Allowing them to operate unfettered in the United States would present a clear danger to our youth, who are subject to becoming addicted to gambling at an early age."

To read the original Reuters story, click here.

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Online gaming gains Harrah's as supporter, by Arnold Knightly - Las Vegas Review-Journal - 6th May 2009

Casino giant Harrah's Entertainment has thrown its support behind legislation introduced today that would allow Internet gambling by individuals in the United States, something that could open a whole new market for the owner of the World Series of Poker brand.

The proposed Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2009, which was introduced today by Rep. Barney Frank, D-Mass., would establish a framework to permit licensed gambling operators to accept wagers from inside the United States.

The legislation provides safeguards against compulsive and underage gambling, money laundering, fraud and identity theft.

"We really believe this industry already exists," said Jan Jones, Harrah's Entertainment's senior vice president of communications and government relations. "It just exists in a wild west setting. If you say you care about protecting children and fraud and money laundering, then the only way you can put those protections in place is to put in a strong regulatory frame."

The casino company spent $405,087 in the first quarter and registered as a lobbyist to try to build support for the new proposal.

Harrah's Entertainment has also hired Tony Podesta, a long-time Democratic fundraiser who has lobbied for Wal-Mart and Sallie Mae, and his brother John Podesta, an adviser to President Obama.

Jones said Americans are already spending $6 billion annually gambling in an unregulated online environment.

The bill would establish regulations that would be enforced by the U.S. Treasury Department. The federal department would also issue licenses to Internet gambling operators.

Frank's bill was co-sponsored by Rep. Shelley Berkley, D.-Nev., whose district includes Clark County.

It would repeal the Unlawful Internet Gambling Enforcement Act of 2006, which made it a crime for banks or other institutions to process financial transactions used to place illegal bets online.

The Bush administration implemented regulations, which are set to go into effect on Dec. 1, to enforce the banking ban.

Separate legislation introduced by Frank today would delay those regulations from taking effect.

"What we have now is an unworkable law passed by those opposed to all gaming, whether it's done by adults in Las Vegas or on the Internet," Berkley said in a statement. "So there is no question we must act to correct the problems caused by this failed crusade to ban Internet gaming."

Similar legislation failed in the last Congress. MGM Mirage today expressed support for the idea of legalizing, regulating and taxing Internet gambling, but cautioned that company executives have not read Frank's new bill to know if it is the right bill to support.

Alan Feldman, MGM Mirage's senior vice president of public affairs, called the 2006 law bad legislation, which was passed without any hearings.

"The original ban was absolutely ridiculous, just absurd," Feldman said.

Youbet.com and the Poker Players Alliance, which is headed by former Sen. Alfonse D'Amato, are also lobbying for the legalization of online gambling.

Not every supporter of online gaming expressed blanket support for the new bill.

David G. Schwartz, director of the University of Nevada, Las Vegas' Gaming Research Center, expressed concern about having the federal government oversee the industry. He said the new proposal would basically set up what he described as a federal Gaming Control Board.

"It would have the federal government regulating gambling, which goes against 220 years of how we've interpreted the Constitution, which is that states have the right to regulate gaming," Schwartz said. "This seems to hoist an overly complicated bureaucracy on the gaming industry."

Jones said Harrah's supports a federal oversight role because regulating online gambling at the state level would be nearly impossible.

"The whole nature of Internet gaming is that people can be on all over the world," Jones said. "It makes much more sense to have a federal regulatory oversight, with an opt out by the states, which this bill provides."

Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893. Bloomberg News Service contributed to this report. (Credit: Las Vegas Review-Journal)

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Barney Frank Introduces Comprehensive Internet Gambling Legislation, by Dan Cypra - Poker News Daily - 6th May 2009

On Wednesday morning, Congressman Barney Frank (D-MA) unveiled the Internet Gambling Regulation Consumer Protection and Enforcement Act, which establishes a comprehensive licensing and regulatory framework for the industry in the United States. Legislation to delay the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) by one year was also introduced.

Although the bill has not yet been formally assigned a number, Frank’s licensing measure focuses squarely on protecting consumers when they gamble online. The bill states, “Internet gambling in the United States should be controlled by a strict Federal licensing and regulatory framework to protect underage and otherwise vulnerable individuals, to ensure the games are fair, to address the concerns of law enforcement, and to enforce any limitations on the activity established by the States and Indian tribes.” Operators must be in good legal and financial standing, utilize proper safeguards to thwart underage and problem gambling, and have systems in place to prevent money laundering. These concerns have been brought up repeatedly in markup hearings of past internet gambling bills introduced by Frank.

The Secretary of the United States Treasury is charged with overseeing the industry and licensing the companies that would be allowed to accept U.S. customers. Applicants may be asked to provide criminal records, credit histories, comprehensive financial statements, an outline of the corporation’s structure, and their methodologies to combat underage, compulsive, and problem gambling. Licensees must also protect against “fraud, money laundering, and terrorist finance.” Licenses last for five years each and may be renewed at the end of that time period. The bill also calls for the establishment of a “program to alert the public to the existence, consequences, and availability of the self-exclusion list, and shall prepare and promulgate written materials to be used in such a program.”

Sports betting or any wager that would be considered a violation of the Professional and Amateur Sports Protection Act (PASPA) is not allowed under Frank’s legislation. However, fantasy sports and other “simulation games” are exempted. The bill does not overturn the UIGEA, which was passed in 2006. Instead, it exempts licensees from the three year-old law.

The bill appears to require a companion measure to provide for taxation of the industry. During the last Congress, that piece of the puzzle came in the form of HR 2607, which prescribed that 2% of the funds deposited online be taxed. PricewaterhouseCoopers released a study utilizing a similar bill along with Frank’s HR 2046, the Internet Gambling Regulation and Enforcement Act, to reveal that up to $52 billion could be raised over a 10 year period by taxing and regulating the industry. However, that figure relied heavily on the involvement of professional sports leagues.

A separate bill introduced by Frank on Wednesday, dubbed the Reasonable Prudence in Regulation Act, called for the regulations of the UIGEA to be enacted on December 1st, 2010, one year after the scheduled date. The House Financial Services Committee website explains, “The legislation will stop Federal regulators from enforcing the UIGEA until Congress has had a chance to decide national policy.” In essence, lawmakers on Capitol Hill will have an extra year under Frank’s second bill in order to pass legislation concerning internet gambling. The regulations of the UIGEA were approved in November as midnight rules and implemented on January 19th, one day prior to U.S. President Barack Obama taking office. As it currently stands, the financial services industry must come into full compliance by December 1st, 2009.

Poker Players Alliance (PPA) Chairman and former three-term Senator from New York Alfonse D’Amato commented in a press release, “Online poker is a legal, thriving industry and poker players deserve the consumer protections and the freedom to play that are provided for in this legislation. We are grateful for Chairman Frank’s leadership and will be activating our grassroots army made up of over one million members to help him drive legislation.” In an article published by the Associated Press last month, it was revealed that the PPA is planning to sink $3 million into lobbying efforts during the current Congressional session. (Credit: Poker News Daily)

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Wednesday, May 6, 2009

Police Conference on Outlaw Bikers at Casino Attended by Outlaw Bikers - Gambling911 - 5th May 2009

"Yesterday the Hells Angel's met up with some law enforcements top brass at Darwin SkyCity Hotel and Casino in the most unusual of circumstances. I can't help wondering whether they stopped in to sink a few cold ones to watch Network Nine's finally Underbelly screening of the season," says Greg Tingle of MediaMan.com.au"

Over 2 million Aussie's enjoyed the explosive finale.

"Legend has it that a couple of Australian bikie gangs once re enacted a bike massacre that was in the classic cult film by Gary Young 'Cosy Cool'," says Tingle.

"Sydney based producer of 'Brothers At War' Richard Bradley, has been closely monitoring the situation. It sounds like more episodes of 'Underbelly' are being written at the speed of news. The thin blue line relationship continues between Aussie bikers and legal top brass the world over."

Actually the bar event was a police conference about outlaw biker issues, but nobody expected the Hells Angels to actually attend. That's exactly what happened according to the Sydney Morning Herald.

Within hours of the senior police and their entourages arriving at Darwin's hotel and casino complex, SkyCity, Northern Territory police security realised the commissioners were sharing a hotel floor with two Hells Angels.

The Hells Angels had not arrived to cause problems, but for "rest, relaxation and a party", a bikie source said.

From the Sydney Morning Herald:

"NT police security assessed the situation and gave the two members the option to change their rooms," a NT police spokeswoman confirmed. "The two members declined and chose to take accommodation elsewhere."

In one of the more humorous moments, the two Hells Angels arrived to get on a commercial fishing boat the day after the conference ended only to find six police commissioners also planning a spot of fishing.

"The members were interrogated by police as to what they were doing there - you know, assassination plot or fishing plan," the bikie source said.

However, he said the federal police commissioner, Mick Keelty, "went into a hyper state" after running into two Hells Angels in the foyer of SkyCity.

A spokesman for Mr Keelty said there was no "incident or interaction whatsoever with the commissioner and any bikies or bikie associates".

"We do not support any of your source's views aside from the fact that the commissioner was in attendance at the conference," he said.

"To report on anything other than this would not be factual and something we would take a very dim view of.' (Credit: Gambling911)

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Gambling returns $1.6 billion - The Age - 6th May 2009

Tax revenue from suburban poker machines in Victoria has reached a new milestone, delivering more than $1 billion to State Government coffers in the last financial year.

Revenue from lotteries also grew, to $343 million, but it was $11 million less than the Government hoped for and follows Intralot's disastrous entry into the market last July.

Overall, the money the Government collected in tax from gambling in 2008-09 is now expected to total $1.625 billion — higher than ever, but $26 million less than expected.

The Government expects about $1.64 billion in the coming financial year, including another $1 billion from pokies.

However, Treasurer John Lenders has not revealed how much he expects to make from the auction of the 27,500 poker machines outside Crown Casino next year, which industry sources say will be at least $2.7 billion.

Laws covering the new arrangements are yet to pass parliament. "Next year, when the legislation is done, we'll presumably factor that into the forward estimates," Mr Lenders said.

Mark Zirnsak, of the Interchurch Gambling Taskforce, said the Government's projected growth was a disappointing sign of its gambling revenue dependence.

"We think that's a sign they need to be moving more quickly on measures to rein in problem gambling and we would expect to start seeing a decline."

Dr Zirnsak said the Victorian Government needed "a long-term strategy to wean itself off gambling revenue".

Tax from Crown Casino rose to $142 million in 2008-09 and is expected to grow to more than $200 million by 2012-13. (Credit: The Age)

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Great Women of Gaming for 2008 award winners honored - Indian Country Today - 5th May 2009

Casino Enterprise Management Magazine spotlights gaming executives for outstanding professionalism, perseverance, drive, commitment and mentorship

FARGO, N.D. – Casino Enterprise Management Magazine named the winners of its 2008 Great Women of Gaming Awards, now in its fourth year.

This year, 10 award winners were broken down into two categories: Proven Leaders and Rising Stars. To qualify as a Proven Leader, candidates must have worked in the gaming industry for a minimum of 10 years and have been in their current position for at least one year. They must also work for a gaming industry company and hold a position of director or higher, having demonstrated exceptional achievement in at least three of the following areas: 1) ability to go above and beyond job responsibilities; 2) commitment to company and co-workers; 3) contributions to the industry as a whole; 4) commitment to mentoring; and 5) strong overall life balance.

The 2008 Great Women of Gaming Proven Leader Award winners are:

• Cath Burns, vice president, Asia-Pacific and managing director, Bally Macau.

• Libby Francisco, chief operations officer, Tohono O’odham Gaming Enterprise.

• Jana McKeag, president and co-owner, Lowry Strategies.

• Cynthia Kiser Murphy, president and COO, New York – New York Hotel & Casino.

• Linda Roe, vice president of business development and client relations, Thalden-Boyd-Emery Architects.

To qualify as a Rising Star, candidates must have worked in the gaming industry for a minimum of three years and have been in their current position for at least one year. They must also work for a gaming industry company and hold a position of manager or higher, having demonstrated exceptional achievement in at least three of the same five areas as proven Leaders.

The 2008 Great Women of Gaming Rising Star Award winners are:

• Michelle Chatigny, vice president of compliance, International Game Technology.

• Catina Moore, senior manager of operations, WMS Gaming.

• Valerie Morris, regional vice president of sales, communications and community relations, Harrah’s Entertainment.

• Treena L. Parvello, director of marketing and public relations, Tohono O’odham Gaming Enterprise.

• Jennifer Roberts, associate attorney, Gaming and Regulatory Department, Lionel Sawyer & Collins Las Vegas.

This year’s judging committee comprised of former Great Women of Gaming award winners and other industry leaders including Brenda Boudreaux, vice president of product management, International Game Technology; Dona Cassese, creative director of global marketing communications and operations, Aristocrat Americas; Tracey Chernay, senior vice president of sales and marketing, Transact Technologies; Christie Eickelman, senior director of worldwide marketing, Gaming Laboratories International; Christie Modlin, tribal chair, Iowa Tribe of Oklahoma; Shelia Morago, executive director, Arizona Indian Gaming Commission; Courtney Muller, group vice president, Reed Exhibitions; Debra J. Nelson, vice president of corporate diversity and community affairs, MGM MIRAGE; Mary Lynn Palenik, director of development, research and analysis, PricewaterhouseCoopers LLP; and Lynn “Nay” Valbeauna, vice chair, San Manuel Band of Mission Indians.

“This year’s candidates were an accomplished group of women from all facets of the gaming industry,” said Peter Mead, publisher of Casino Enterprise Management Magazine. “Our judges had a difficult decision choosing the winners, and I believe they did an excellent job selecting the top 10. But, in the end, each woman nominated is a Great Women of Gaming to our industry. It’s been a pleasure of ours to continue to honor these women as they continue to strive for personal and professional excellence.”

An in-depth article featuring profiles of this year’s 10 award winners will be featured in the May issue of Casino Enterprise Management Magazine. The winners will also receive the prestigious crystal Great Women of Gaming Award and will be honored at a dedicated ceremony. (Credit: Indian Country Today)

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State plays its hand in targeting online gambling websites, by Paul Walsh - Star Tribune - 1st May 2009

Users may be finding ways around Minnesota's attempt to cut off access to the 200 Internet game sites.

The state of Minnesota on Friday released the names of 200 online gambling websites it is trying to prevent Minnesotans from using, warning that Internet wagering is illegal.

The specific sites being targeted will be of interest to Minnesotans who use them and are concerned that any balances they have with those operations could be lost if the state succeeds in blocking access.

Fulltime online poker player and instructor Chris Wallace of St. Paul scoffed at the list built by the state, however.

"I'm certain they didn't do a whole lot of research," Wallace said. "The largest poker site in the world [Poker Stars] is not listed."

Wallace also said he's confident that he won't lose any money because of the state's block. "I do have money in many of these sites," he said. "The worst is that I will drive over to Wisconsin and request a cashout."

He said he has already shifted his computer to a server in the Cayman Islands and was back on his favorite site within 20 minutes at no expense, thereby getting around any block that Minnesota wants put in place.

On Wednesday, a division of the state Department of Public Safety that enforces gambling and alcohol laws said it has instructed 11 national and regional telephone and Internet service providers (ISPs) to block access by all Minnesota-based computers to the websites on the list.

Minnesota says all online gambling within its borders is illegal, even if the games are hosted outside the United States.

Operators of these types of sites are spread around the world, most commonly in the United Kingdom and the Caribbean, as some of their names suggest: Casino Euro, English Harbour and Virgin Games, among others.

Written notices from the division were served Monday to AT&T Internet Services, Charter Communications, Comcast Cable, DirecTV, Dish Network, Embarq and Sprint/Nextel, Frontier Communications, Qwest, Verizon Wireless and Wildblue Communications. (Credit: Star Tribune)

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