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Sooner or later, countries respond to online gambling in one or two ways: they either embrace it or reject it altogether. A news report from South Africa suggest that the country, a major online gambling market, is likely to adopt the former policy, one that is closer to the UK government practice, rather than following in the aggressive denouncement of online gaming. According to the report, South Africa's Department of Trade and Industry is considering regulating the industry, not fighting it. A positive embrace of this sort has been the English policy over the past year and seems to be working. The alternative policy, a ban on online casinos, as in the United States, seems to be working as well, but raising vocal opposition and continuing doubts whether it will be able to remain in place for long. Apparently, a study that the Department has ordered regarding online gambling technology and jurisdictions serves the policy makers in deciding the task is doable and the profits considerable. A legislative proposal based on a thorough survey results is the key for a successful policy, be it regulation or a ban, it matters not. Of course crime, fraud, an addiction problem and underage betting are concerns. These and other issues are likely to dictate government involvement and strict regulation. Such is the practice in the UK, which so far seems to be not only working but even profitable. Such a move was expected from the South African government for several years, with a considerable penetration and a welcoming atmosphere. As the industry is about to take the next step, it is high time for such as a National Gambling Amendment Bill to be formulated and enacted.
The micro-nation of Sealand, off the coast of Suffolk, England, located in the North Sea, may have only about 20 member-citizens in all, but it does have its own flag, currency and even an Internet site, where you can learn more about the peculiar state. Sealand is now preparing to launch a new Website, an online gambling casino. In one sense - its name - Sealand should be most comfortable on the web, as it is hardly a land. Its fictitious nature would be most fitting with the virtual world. In an age of widely available high speed Internet, this allows a country - any country, Sealand included - to get a slice of the gambling cake as it does so. The mini-state was founded on September 2, 1967, when Major Paddy Roy Bates occupied the once abandoned sea fort in International waters. It faced international confrontation time and again, having never received recognition officially. Yet it has gone on to print local stamps, de facto functioning as a state, albeit a really small one. The site is likely to continue this low intensity confrontation policy. It is not clear at the time how the casino will provide appropriate international banking services for its customers, but it is set to launch on the festive 40th anniversary of Sealand, on September 2, 2007. The news may have an effect on the international gambling market, draw interesting response from the United States (opposed to the gaming industry) and the UK (working to regulate the entire market). For now it is the source of some humorous comments, as what welcome bonus will the casino be able to offer, as it never even welcomes tourists or visitors, located on a World War II floating pontoon facility. Now as the state is also on sale, so announced by its leader, Major Paddy Roy Bates, the winning jackpots may actually go towards buying the house altogether Whichever way it goes, we are sure to hear more about the new casino.
Web portals such as AOL and Yahoo! have already made their first steps in the online gambling world by partnering with a sports betting company (the former) and introducing a poker portal (the latter). This is not the first step really for these companies. As search engines, they had a bigger role than many realize in the industry. Now, with a third player, perhaps the biggest of all three or the biggest of them all, Google, is entering the online gambling world in a way. Voices commenting on the positive contribution to the regulation of the industry, in light of such government interventions such as the case was with the United States, are heard around the Internet. Gamblers reach their online casinos in one of many ways either via direct marketing methods (advertising emails or banners across the Internet, for example), from recommendations posted at forums, chat rooms and blogs, via specific and professional portals or from search results on Google and other search engines. Taking this information, the search patterns of the gamblers, the search engine can filter the sites and regulate the casino sites in the selection. The engine itself is able to regulate online gambling, a much needed measure that some governments (read: the United States) are not keen to do, instead opting to ban the industry and leave it to corrupt operators. Sites that are popular can be noticed by the search engine and will also be linked to other betting sites and portals around the online gambling world. Corrupt casinos, for example, will fall off the search results and not be linked to other sites listed on the search engine. This is a natural regulation system that is dictated by users and search engines. It worked well until the US intervened.
Party primaries are a prime opportunity to raise issues that are populist and popular, in an attempt to pursue a large following and support, and no less important - funding. But for some politicians and Presidential hopefuls, the limelight and media attention are an opportunity to raise some contested issues as well. One such candidate is Republican presidential candidate Ron Paul, and the issue on the table is online gambling. Ron Paul, one of nine candidates for the Republican nomination in the 2008 Presidential election, has voiced his support of an initiative, an alternative to the current Unlawful Internet Gambling Enforcement Act (UIGEA), which was passed during the current administration, called the Internet Gambling Regulation and Enforcement Act (IGREA). Congressman Barney Frank, Chairman of the House Financial Services Committee, is a member of the Democratic Party. Paul decided to back Frank on grounds that he does not believe the government should regulate the Internet in principle. Paul added, with clear reference to gambling online, that he believes "strongly that people should be free to engage in the activities they wish as long as they are willing to take responsibility for their actions." The Presidential Primaries season is prime time indeed for politicians to step up and speak clearly. Paul is obviously not concerned with being labeled as "pro-porn" or "pro-gambling." Such labels have too often been thrown at Congress members who have supported such initiatives as the IGREA. Speaking his mind is a welcome step. It can only be hoped that it be followed by other candidates and that the issue be resolved in an open and democratic way.
The initiative by California resident Anthony "Tuff Fish" Sandstrom has received the proper attention across the industry and in political debates at large, as it well deserves. (Here at Online Casino Reports too we covered the story on August 8.) The echoes are sure to continue bouncing off blogs, forums and news articles for time to come, as we already know what the potential of a YouTube video may be. One such response has already been made, and it is clearly one to pay attention to. Perhaps the number one expert in the world when it comes to the legal developments involving the online gambling world, Professor I. Nelson Rose, who teaches in Costa Mesa, California, has commented on the initiative of his fellow state resident. This happened earlier this week, at the ninth annual Global Interactive Gaming Summit & Expo Entering (GIGSE) in Montreal. The two being from the state of California, and the initiative focusing on benefiting the state's roads with income from a proposed government-run poker site, are essential, Professor Rose says. The law professor said he has long believed that progress would be made at the local level indeed, rather than on the federal level. California, both progressive and semi-independent in its political life, is a good prospect to lead such a change before other states. Perhaps following the Nevada precedent, which allows it to run casinos while they are prohibited elsewhere in the country, California can also excuse itself on legal grounds from the UIGEA. A state-owned poker site has tremendous potential in a large state such as California. Keeping the money in-state may benefit the citizens in return, mainly road infrastructure, but also bring the online gambling world back on the table, where it can be regulated, supervised and safe. If gambling will indeed be resolved as a states' rights issue, not a federal law case, the fruits that California may see will be tremendous. Ninety percent of revenues will be directed to local road repair, and the remaining 10 percent invested in programs that will help problem gamblers. Thus the stakes are high for both gamblers and non-gamblers alike.
On the one hand, the UK decided to allow for online gambling sites to operate and for British citizens to play and gamble on the sites. This goes hand in hand with a comprehensive effort to regulate the industry as a whole, protect underage gamblers, help problem gamblers, enforce strict guidelines and other similar efforts that will keep the industry viable and honest. On the other hand, the efforts apply to local, UK operated online casinos, if for protectionist interest or for the simple reason that policing the entire global online gaming industry is practically impossible. The latest development in this process has had about 1,000 such gambling sites based outside of the UK banned from advertising in the country. The ban is to come into force on September 1. Broadcasters and publishers those based online and others will face either fines or even prison sentences for breaching the ban. Meanwhile, there is also a "white list" of sites that can advertise in the UK, namely local and European sites. Their TV, radio, Internet and print media ads will thus enjoy a boost in validity, as the operators receive the government approval in a back-door way. To post any ads, these operators would have had to show that they abide by the UK's strict regulations. Behind the ban is UK Culture, Media and Sport Minister James Purnell. It is part of the greater online gambling bill. Secretary Purnell justified the measures as a necessary means to protect English punters from "websites operating from places that don't meet our strict standards."
While England is moving forward towards the September 1, 2007 date on which the online gambling regulating law will come into effect, in a determined move towards allowing gabling on the Internet under certain rules and supervision, the United States is still debating with itself on the best course to take. One of the concerns that have motivated the ban initiators and is lingering in the US debate on the issue is underage gambling. While the initial reaction was to ban all betting activity on the Internet as a means to protect underage gamblers, other voices are being heard. Safe and Secure Internet Gambling Initiative (SSIGI), an American pressure group, has released an announcement, which says new technologies can do the job as well, if not better. Age verification technologies have been developed so as to stand up to the task, while allowing gamblers of legal age to gamble as they wish. The announcement follows and is used by US Congressman Barney Frank and his bill that will re-introduce the industry in the country and reverse the tide against online gambling, named the Internet Gambling Regulation and Enforcement Act legislation. The opinions of experts quoted in the announcement can potentially convince some skeptics or simply draw enough support to pass the proposed bill. In fact, it is not surprising. The UK, with its embrace of the industry, has been running such underage gamblers protection technologies. This is the case in other countries that have regulated their markets. Michael Colopy of Aristotle Inc. is quoted in the announcement saying the technologies are more accurate and efficient than scanning driver's licenses "that suffices for alcohol or cigarette purchases in America's neighborhoods."
"Starting September 1, the ban on all forms of gambling advertisements will take force in the United Kingdom. Although this is part of a greater move to regulate the entire industry, at least the part of it that caters UK gamblers, the ban on advertising has come as somewhat of a surprise and has stirred quite a reaction. Some 1,000 gambling sites are expected to be affected by the ban. These sites, the operators of which are not based in countries on the ""white list"", will not be allowed to advertise on television, radio, in print (newspapers and magazines), on taxis, buses or the tube and anywhere on the Internet. Needless to say they will be losing out on a major market, one that is not only considerable in business volume, but also one with an assured future and a clear path under new regulatory standards. The "white list," published by the UK government, includes all jurisdictions that are acceptable in British eyes to host online gambling companies, mostly members of the European Economic Area. Casino operations based in these territories will be allowed to advertise in the UK, if they so wish. These countries need to prove to the British that they adhere to similar regulatory standards. Moving Ahead of the Ban The ""white list"" has kept some countries out, causing a stir in the industry. First there are the governments, such as Antigua, who have an interest in hosting such companies as bases for operations overseas, including England. Antigua is still not white listed, rather under consideration. The stakes are high and the small Caribbean island is on it best behavior, pointing out their objectives are in line with those of the UK. No words of criticism from the company, currently sitting on the fence. While Antigua hopes to join the likes of the Isle of Man and Alderney, which have made the UK's ""white list,"" others are not so lucky. The Dutch Antilles was not included in the list. As a consequence, it is already losing business. William Hill Casino, a popular website based in the country, has decided to relocate to Gibraltar, ahead of the advertising ban. As an EEA territory, Gibraltar is expected to make it on the "white list." As gamblers, we are most likely not going to see any changes in the operations. A spokesperson for the casino, soon based in Gibraltar, said ""The business won't be affected in any way because we have been aware of the change for some time."" Securing Ad Deals While some online gambling operations are to be affected, either negatively, or required to change their operations to avoid such negative impact, others see this as a business opportunity. English bookmaker Ladbrokes, for example, has announced that it will partner with The Sun and News of the World tabloids to provide sports betting and online poker services under the new rules that take effect in September. Teaming up, inviting the publication's customers to access a suite of betting and gaming services using the same account, advertising at high profile locations, like The Sun's Page 3, are ideal spring boards to the greater English market, especially in light of the re-organizations, or mere re-locations, that other operations have to go through."
Former Neteller customers have received emails over the past days inviting them to log on to their Neteller accounts and withdraw money from their positive accounts, which were frozen in January, at the time the probe against its co-founders began. This they did. So far, $70 million has been withdrawn. Throughout the federal investigation, for several months, until just recently, the US has tied up the funds in about 250,000 accounts. A deal reached with the US Attorney's office in Manhattan has allowed for the good news to reach customers and the money to be released from the hold. Neteller was the largest payment methods and solutions company at the time in the US and perhaps in the world. PayPal, operated by Ebay, was not a competitor in the online casino business, not since pulling out of it in 2003, and so it was mainly Neteller's domain. Arresting its co-founders and freezing its activity as part of the ban on online gambling in the US sent a shockwave throughout the industry. Neteller, PayPal and other payment method providers are active in other countries, over 150 of them, where online gambling is legal. The funds were held as potential evidence, so the FBI explained. Releasing it was compared by some of the costumers as winning the jackpot. The total amount of funds caught in the crossfire is estimated at 136 million dollars. This is sum that Neteller is required to forfeit. A large part of it belongs to American account holders, at 94 million dollars. Of course they must also admit violating the US law against online gambling. On a video aired on YouTube, Neteller CEO Ron Martin stated that the company's top priority is to return funds to US customers. This is offered in one of two ways - through an electronic transfer to a bank account or by check. Most have opted for the former, a process that takes only about a day to complete. They are also asked to sign a waiver release, agreeing with Neteller not to sure each other. Customers have until late January to withdraw their sums.
As if it is not enough that the cycling sport has suffered blow after blow with drug use scandals, the Tour de France fiasco still fresh in our memory, the Amaury Sports Organization, which runs the Tour de France, has decided to ban a cycling team because its sponsor was a Swedish online casino operator.The gambling site Unibet has therefore pulled out of the team, leading to the cycling teams disbanding at the end of the year. One of the cyclists on the team, Matteo Carrara of Italy, had a good run at the Tour de Suisse earlier this week, coming in fourth overall, but the team was not allowed to take part at the high profile French competitions, the Tour de France and the Paris-Nice road race.Other sports are enjoying the generous sponsorship of teams and clubs by Internet gambling sites, which seems to many as a natural combination. The target markets of both sports and gambling often overlap and both are enjoying increased revenue, traffic and overall business.Still, the French race organizers were reluctant to allow a foreign-run casino operation to participate in races on French soil. The teams case was supported by enough powerful institutions around the cycling business, including the International Cycling Union (UCI) and European Union regulators. It brings to light the competing regulatory efforts and legitimization of gaming across Europe, with wide open competition on one hand, state monopolies on the other hand, and various regulatory and political factors.Criticism of the decision abounds. Sponsors are leaving the sport, most famously the Discovery Channel sponsored team, once the logo worn by Lance Armstrong. Not allowing new players, new media, new business and new money to join in on the action is the wrong message, many believe. Pat McQuaid, president of UCI, has pointed at this issue, saying: "If sponsors aren't guaranteed their team can race, they won't commit to the sport."The EUs support is not surprising. The continental body is promoting a large scale regulated gambling industry. Resistance on a national level, as in Frances case, still exists. In the meantime, not only do the races lose out on teams and sponsors, and the sites lose out on sponsorship opportunities, so are we, the players, lose.
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