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Ladbrokes was the first company to launch a major ad campaign on television, earlier in October, under the new rules set by the recently enacted 2005 Gambling Act. Its campaign cost million of pounds, reportedly 5 million. 888, operator of Casino-on-Net, is now ready to join Ladbrokes and launch its own ad campaign. The deal, worth 6 million, was awarded to CHI and Partners. The two companies are registered and legal to operate under the new law. The changes in the UK have brought online casinos - those operating from countries that were "white listed" by the UK government and licensed with the Gambling Commission - to the masses. Not only is it now legal to offer the services, it is even legal to advertise the service across the country. The TV ad campaign will focus on casino games, with the theme being "life is one big game." Ladbrokes on the other hand focused mainly on sports betting, as its ad featured ex-footballers talking football scores. 888 will not forfeit its football and sports contacts. The company's CEO, Gigi Levy, said sponsorship of Sevilla FC and the World Snooker Championships will continue: "The success of these sponsorship activities is demonstrated in a recent survey showing 888.com with the highest level of brand awareness of any gaming and betting web sites in the UK, which continues to be the industry's most important market," Levy said last week. The ad campaign is a natural continuation of the company's efforts to spread its services globally, since the ban on online gambling in the US, its previously largest market.
The large and successful poker site Absolute Poker, established in 2003, operating in Costa Rica and licensed by the Kahnawake Gaming Commission, has had its name associated with a fraud case. The site itself and officials of the Mohawk Indian territory in Quebec have launched their investigation. The suspicion that games on the site were rigged was first raised by Marco Johnson, 21, of Las Vegas. Johnson asked the site in an email in September for a history of the cards he was dealt during a tournament, in which he finished second and felt cheated. "There were just too many weird hands at the final table," Johnson said. "My friends thought I got cheated." He received more than he asked for: a document with the hand histories of all tournament participants, along with their e-mail addresses and the IP address. Johnson was not sure if the file, with information of all hands played at the entire 14 tables tournaments, was sent by mistake or released by an insider, but was alert enough to pass it on, which then led to an investigation into the matter. Friends and trusted amateur poker players who Johnson contacted identified interesting trends. One poker player noticed that the user Potripper, who also happened to be the tournament winner, was making bad decisions, such as betting a large sum on a 10 high. Another computer wiz noticed there was a suspicious user by the name #363 who was present at each game Potripper was betting on, but was not seen by other players, only could likely see their hands. Playing Texas Hold'em, it was suspicious that whenever #363 was present, Potripper did not fold, for stretches as long as a half hour, a rare practice for a poker player. More suspicious even was that #363's IP address originated from where absolute Poker's offices are. It led investigators to company part-owner Scott Tom. The Potripper account led to the company's former director of operations, AJ Ripper. From there it quickly led to the sotry surfacing on The New York Time's Freakonomics blog and to the official investigations into what may be a fraud case of anywhere between $500,000 and $1 million over a two week period or so. Whereas the poker industry will probably be hurt a little by such stories, the industry, estimated between $9 and $12 billion will not be too hurt. It might use it as motivation to tighten security measures. Absolute Poker meanwhile has its reputation to defend. First they released a statement updating its members of the incident and the audit in process. It read the following: "We acknowledge a significant internal security breach whereby a resource who was infinitely knowledgeable about the system i.e. a company employee, OCR was able to get into the accounts in question. He played on those accounts and he saw hole cards." It is now also calling users personally, those whose information and hand history was disclosed on the file sent to Johnson, along with $500 to play at the site.
American poker players count, according to estimates, anywhere between 15 and 23 million. Needless to say they are all of voting age... One of the largest lobbying groups, representing over 800,000 poker enthusiasts, the Poker Players Alliance, is organizing a two day campaign in Washington, DC. The ban on online gambling is not contested as such. The lobbyists simply argue for the exemption of poker from the wide ban. Precedents of excluding forms of gambling already exist, as the law does not ban online horse races, lotteries and fantasy sports. One hundred representatives of the organization, which was founded two years ago, will visit the Capitol this week. Among the representatives are famous WSOP champion Chris Moneymaker who was an online poker player to begin with. Representing the organization is another familiar name, known better for his career in politics than his poker skills, former New York Sen. Alfonse D'Amato (R.). Their arguments are two: 1) One way in which they present the issue, is describing how poker simply fell into the category with other forms of gambling. The law makes it illegal for US banks and credit card companies to process payments from sites outside the country. Poker is a bystander casualty of sorts. Careful phrasing of the law will allow poker to be excluded. 2) Poker is not a form of gambling per se. Rather it is a game of skill. A more carefully phrased law would make this distinction and exclude poker from the ban. Furthermore, the lobbyist will present positive ways of regulating the online gambling industry. They will present numbers that show how billions of dollars can be profited if only a minor tax would be implemented. In fact, several bills have been drafted and are discussed at the various House committees. The bills include: Protecting skill games - e.g. poker, backgammon, bridge, chess and mahjong - from the ban (H.R. 2610) Rep. Barney Frank's bill to regulate the industry and allow licensed companies to operate online gambling services (H.R. 2046) A third bill that calls to amend the Internal Revenue Code of 1986 to regulate Internet gambling (H.R. 2607). It will still require convincing some opponents that poker is indeed a game of skill. There is still a gap between John Pappas, executive director of the PPA, who says "The individual skill of the player determines the outcome, unlike betting on the horses or betting on the lottery," and Keith Whyte, executive director of The National Council on Problem Gambling, who agrees to some extent that "Poker certainly has elements of skill," but added that "the predominant element has to be chance." Yet Howard Lederer, a two-time WSOP bracelet winner, said it best: "Poker is the great American game." Is that a winning argument to allow Americans to play it online? Time will tell.
It seems strange for a country that tries to keep a low profile with all that regards online casino gambling to make such a high-profile arrest. France seems to have realized this, even if a little too late. Since the arrest of a chief executive at Unibet the country has tried to distance itself from the move. A Visible Hand Laissez faire, in French, means that the economy is to run itself without a guiding hand. This has later been adopted by practically the entire Western world, perhaps better known as an invisible hand policy. Something has apparently gone over France, which now insists on a non-laissez faire policy, at least with all that regards online gambling. France has been trying to operate state-run online casinos and protect them as monopolies. Française des Jeux and PMU are the only licensed operators in the country. France has been in talks with the European commission on the issue, for such monopolies are in contrast to European free-trade agreements. Officially claiming that offshore gambling operations are poorly regulated, it has kept to its stand against opening their market. It was believed that France will move toward gradually opening up its betting market. French budget minister, Eric Woerth, will meet with EU officials to discuss the issue on November 6. Hence the surprise that the arrest has brought - among industry analysts and among French officials too! Out Come the Handcuffs Swedish citizen Petter Nylander, chief executive of Unibet, has been arrested by Dutch authorities when passing through Amsterdam's Schiphol airport on Monday as he was about to board a flight to London, where he resides. The arrest was made at the request of the French, on charges issued by a French judge of money laundering and Internet crime. Unibet is one of the two most popular online bookmakers in France. The other top gambling operator, Bwin, has also experienced similar "harassment," to borrow the term used by Unibet in its response to the arrest. Two executives of Bwin have been arrested 13 months ago. The two, as well as 888, PartyGaming, Zeturf and Partouche Group - all active in France at one point, operate from Gibraltar or Malta and do not hold a French license. Hands Off Unibet has been an active player in France, more than just a popular betting destination. It has sponsored France's largest poker tournament and a French cycling team, but was not able to present their logo on the shirts worn by the team at the Tour de France after a police raid. Nylander himself did not show up when asked to for interviews that the French have held earlier this year with various gambling site operators. The French could not assure him he would not be arrested would he show up. Hands Up On Tuesday, the French government has already distanced itself from the arrest. It even ordered the case be dropped. It has exposed a sensitive point, at a sensitive time: France is arguing that it does not protect state-run monopolies, and yet its state-run operators filed the complaints that led to the arrest warrant. Unibet's operations are legal under EU law. Its conflict with French law is contested. In an official response following the arrests, a French budget ministry spokeswoman said: "It is not a matter between the state and Unibet." She then added that "Française des Jeux and PMU will be told to drop their complaint." Pulling its hand from the unfortunate arrest will prove France is indeed willing to "find a new framework for gambling if conditions are respected," as the French Europe minister, Jean-Pierre Jouyet, said in his latest comments on the issue.
With the United States implementing and pursuing its policy of banning online gambling; the United Kingdom taking measures to regulate the industry; France arresting online gambling companies' executives; and other trends pro and con i-gaming around the world, Antigua and Barbuda are taking the lead on many an important front. The small Caribbean nation unfroze BetOnSports' assets in the country, allowing the British sportsbook company to pay off some of its creditors. BetOnSports has pleaded guilty to a US racketeering conspiracy charge on May 24. The US court barred the removal of any of the company's funds. BetOnSports has also agreed back then, at the St Louis federal court to furnish evidence against its founder, Gary Kaplan, and 11 co-defendants. Kaplan who awaits trial, has been refused release on bail after having fled a US government indictment for illegal Internet betting once in the past. Money collected from debtors, now made possible thanks to Antigua and Barbuda, will be used to repay bettors as the plea agreement dictates. But Antigua and Barbuda's role in the developments in online gambling does not end there. Beyond getting involved in the case between the US and the London-based sportsbook, the tiny nation has taken on the US directly, through the channels of the World Trade Organization. There, at the WTO, a case between the two countries are in the midst of a legal battle. The small nation has sued the US for compensation for having shut down offshore online gambling sites in what is argued to be unfair trade action. A settlement was supposed to be reached earlier this week, but is now scheduled for December 14, 2007. Though the extension puts the affair on hold and the world in suspense, Antigua and Barbuda is assuming the role of David, from the story of David and Goliath.
The Gambling Act that came into force in the UK on September 1, 2005 has allowed gambling companies to advertise their services and websites on television and other media. It was one month later that Ladbrokes launched the first of its ad campaign. The ad, as all advertisements from now on, must accord to guidelines stated in the Gambling Act. It has, however, been flagged and several complaints have been submitted to the Advertising Standards Authority. The ad features several ex-footballers and a female television sports presenter on their lunch break discussing gambling. The ad's punch-line has one person dare his friend to "put his money where his mouth is." The ASA is an independent regulator for advertisements in the UK. It will look into allegations that the ad influences young people to gamble. It should be made clear that the ASA investigates all complaints that it receives, and that no specific violation can be determined at this point. A Ladbrokes spokesperson said the company is not surprised such complaints have been made, this being the first ad of its kind. "But we don't think we have transgressed and we will vigorously defend our case," the spokesperson added. Examples for complaints of breaching the advertising guidelines are easy to find. The above mentioned Ladbrokes ad was aired in the middle of the day during the Rugby World Cup only recently. Assuming the 9 PM rule should have made that illegal, the ASA received complaints. But since it was broadcast during a live sports event, an exception the law makes, it was legal nevertheless. It is agreed in the industry that by being the first ad to air, Ladbrokes will draw such criticism and complaints. In fine-tuning the regulations and setting precedents it will also be remembered as being the first and its name associated with the regulatory revolution.
Rep. Barney Frank (MA-D) has met with Harvard professor of Law Charles R. Nesson this week and has even received his endorsement of Frank's bill to legalize online gambling once again. Frank's bill, also known on its full title as the Internet Gambling Regulation and Enforcement Act, or IGREA, is the response that enjoys the widest support on Capitol Hill to the US ban on online gabling. Professor Nesson and frank have met on Monday in Washington, as part of the week's events that had poker enthusiasts lobby for regulating the industry. Nesson, as well as many others who attended similar meetings and events, believes the bill is a good one, but thinks its chances to pass are slim. Nesson, who founded Harvard's Berkman Center for Internet and Society and of the Global Poker Strategic Thinking Society, and many others, focus their efforts on the game of poker. The esteemed cyberspace specialist said: "I'm in support of the bill, but I'm dubious about its likelihood of passage." He added though that he is supports "an initiative that would recognize the legality of tournament poker." Such a limited bill would present poker as a game of skill and strategy. Furthermore, Nesson suggests the game should be taught to kids, in formal education programs. Such educational programs accompany the legal discussions and initiatives of the organization Nesson has founded. All together, he believes, will help the game be viewed as a "positive, educational game." More specifically, teaching poker strategy would help make the game seem legit in the eyes of people and help such a law that will allow poker games online pass more easily.
It is not called the King of Casino Games for no reason. Roulette, the spinning wheel game, is the top favorite casino game of most gamblers, according to a survey conducted by Gambling Portal, the results of which were released this week. Nearly two out of three gamblers said they prefer roulette over poker, blackjack or any other game, even slot machines, which used to be the most popular destination at land based casinos. Even when facing unfavorable odds - the famous Nobel Prize winning physicist Albert Einstein said the game of roulette cannot be beat "unless you steal money from it" - it offers plenty of excitement, simple rules, a classic and clean environment, and the attention of online casinos in designing superior versions. Perhaps roulette is identified with professional gambling, a step or two above the amateur level, and as such is looked favorably upon. Those "in the know" play the game, and the rest want to play it... The spinning wheel has another effect on the players and on the game's popularity. Perhaps more than any other game, the moments that pass between the time the bet is placed and the time the ball rests in one of the compartments and the wheel ceases to spin, are moments rich with adrenaline and excitement. There is also very little else to it. No counting cards or calculating the opponent's moves. Placing a bet and watching the wheel spin is all that is to it. Apparently, from the survey results, it seems that gamblers are kin to this simplicity. And finally, the online casino industry has designed terrific versions of roulette. The games available online are rich with graphics and sound, realistic looking and with options that include live dealers, for an even more realistic experience. It seems as if the King of Casino Games reigns still.
A Minute to Learn, A Lifetime to Master Charles Nesson is not just another tourist visiting the capital. Mr. Nesson is an esteemed law professor in Harvard, and his visit was part of the ongoing lobbying efforts to convince lawmakers that online poker should be exempt from the ban on Internet gambling. Even if lawmakers hold on to their positions and unwelcoming of new ideas, someone is listening. In fact, many are. College students, youngsters like those that the professor teaches in his classes, are the fastest growing market in the fastest growing game online. Websites, accordingly, are increasing their marketing efforts directed at this sector, in television ads in the UK, where they were legalized recently, among other channels. Perhaps there is no real need of such marketing schemes. Professor Nesson seems to have done much the same through non-commercial means, by establishing an online university curriculum centered on poker. Lessons Learned The program uses online poker as a teaching tool for strategic thinking and other skills and practices that students go to college to learn. Besides geopolitical analysis and risk assessment, the students-players learn money management this way as well. If taught well, also by establishing playing groups that meet regularly and have players play in a group environment, poker can be less harmful and compulsive gambling kept in check. With betting limits and a community that watches, the players will not end up spending sums they cannot afford. Poker proves to be a hit among students not only for its scholastic value. It also serves mental escapism among the young players. Players may even play with their gender identity, switching from male to female behind the anonymous username, in an age that sexual identity is being explored. Marketing to Students Having realized this, poker websites offer discount rates, holidays cruise prizes and other specifically catered towards students. Poker sites offer sponsorship of university poker societies. One original twist on the game has it that a part-time job, popular among students, reduces time spent with friends. Poker can replace the income and leave enough spare time to socialize. Poker is extremely popular. That is also the case on college campuses and among students, perhaps even more so the case. It is still early to grade poker as a teaching method. This will be done when the students leave campus and join the society as productive citizens. It will also be measured by strict standards of how well it manages to keep students away from the risks of online gambling.
The ban on online gambling in the United States is clearly in place. The UIGEA has changed the global market in so many ways that it cannot be ignored. It has, however, started counter-efforts that try to repeal the ban and regulate the industry, thus bringing it back to the millions of Americans who have been playing for a decade or longer. These efforts have been followed rather closely by us. Rep. Barney Frank (D-MA) and his Internet Gambling Regulation and Enforcement Act (IGREA) have received our coverage. It has now also received the support of the 40th House Member. Rep. James Moran (D-VA) has added his support to House of Representatives 2046 - the official name of IGREA. Symbolizing the growing support of the initiative on the Hill, Moran represents a district on the other side of the Potomac, practically overlooking Washington, DC. Perhaps indicating a shift in another sense, Virginians have been opposed to online gambling using credit cards, even voting against the practice in 2003. With 40 supporters on the Hill and high profile lobbying efforts (namely the wide coverage Harvard Law professor Charles Nesson received during his campaign this week) the wheel might be rolling in the right direction.
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