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The preparations for the next Grand Slam event are on the way. Tickets for the Australian Open, which opens January 14, are already on sale. The concern among tennis and event officials is, however, that the games themselves might be on sale. Match-fixing is one of the greatest worries that tennis has had to deal with in a long time. Some see it as a threat on the sport itself. Tennis governing bodies have held meetings this month with representatives from various organizations on an updated anti-corruption program. The Australian Open intends to make sure the games are clean of any such suspicions. As the first Grand Slam to follow these meetings, the Australian Open has taken several measures to combat match-fixing in January. It has hired a security consultant, Calibre International, and established a team whose goal is to prevent match-fixing at the games. Match-fixing has not skipped major events and top seeded players. It is by no means an issue for small time tournaments and insignificant matches. Only this week did Wimbledon doubles champion Michael Llodra tell if an offer he was made to forfeit a match. "I was in my hotel room and somebody called to ask me not to try too hard the next day," he told French radio. Even though this happened four years ago, having no channels to report this has allowed the corrupt practice to continue unabated. Indeed, Llorda said that he has "the feeling that a lot of people have been approached. There's a lot of talk about it on the circuit." Even the Paris Masters, perhaps the world's most prestigious indoor tennis tournament, taking place this week, is being inspected carefully for possible match-fixing incidents. The lessons learned and tactics used in Paris will be shared with the Australians and serve to keep the Open clean and corruption-free.
The arrest of Unibet CEO Petter Nylander can be summarized as an awkward affair. The French government did not really want Nylander arrested, but he was taken into custody nevertheless, surprising the French and embarrassing them too. Unibet Group PLC chief executive Petter Nylander was arrested for violating French betting laws. The arrest was made at the Schiphol airport in Amsterdam. It followed a lawsuit made by the French online gambling monopolies, Francaise des Jeux and PMU. Nylander has previously refused an invitation made by French officials to come in for an investigation into the online gambling industry. The French, he said, refused to guarantee he would not be arrested when he showed up. But even having thus disrespected the French, it did not want his arrest, surely not accompanied with the publicity that followed. Perhaps the French have managed to save face by allowing Nylander to be released, on €200,000 bail, on Wednesday. But now the French and the world can hear Nylander's side of the story, and he surely has something to say. Nylander Strikes Back In a statement, Nylander said he has always abided by the law. He is most likely referring to the European Commission, which opposes state monopolies on gambling, as the one that is in place in France. Nylander would not be violating the law if the EU's free internal market rules were indeed in place. He added and expressed his vision of the online gambling industry: "It is Unibet's strong belief that the French consumer should have a choice regarding online betting and gaming, with specific regulation." Nylander is not the only one who opposes the French policy. If he was, then it wouldn't be too bad. But Brussels is also after the French, pressing them to change their policy, which the French seem to accept as an inevitable outcome, though they stall the process as long as they can. The arrest has brought the spotlight back on to the French, at a sensitive time before the European Court of Justice forces them to reform their policy. Hence the embarrassment. Unibet Unibet, the gambling group that Nylander heads, has 2 million customers, a ¼ million of them active. The European company is active in over 100 countries. It is also a successful business, and has shown strong numbers in its reports for the third quarter of 2007. Profits at Unibet have risen by 22.6% to £6.5 million this past quarter. Gross winnings from non-sports betting amounted to double the sum, £13.7 million, for the quarter, poker leading the way with 35% of revenue. It is most successful in Scandinavia. Sweden is Unibet's largest market, about a third of total gross winnings. The rest of the Nordic region accounts for another quarter of its business. As the legal climate is changing, most likely in the direction of banning state run monopolies, though the French are an example of stubborn opposition at the moment, Unibet is optimistic about the future. With Nylander released, it expects reason and fair trade to rule and Unibet to gain from these potential changes going forward.
888 has mostly been in the cards dealing business. A new deal reached with British gambling firm Rank will have it enter the sports betting world as well. The company has been successful at what it does. Even with the scare a year ago, namely the ban on online gambling placed in the United States, which had the company and the industry at large lose about half its players and sources of revenue, 888 has shined bright. Third quarter numbers released earlier this week show an increase in revenue for the company from the same time last year. After entering new markets around the world, it now feels ready to enter a new field as well. The deal between the two British companies will have Rank provide a sports betting service for the online poker and casino company. Rank already has a platform for managing fixed odds betting and sports content. 888 has its proven payment processing platform and a hold in markets around the world. This latter point was in Rank's comments following the deal signing when they said: "We will benefit from 888's international experience and liquidity as we extend our reach beyond the UK." The new service is expected to be launched in the first quarter of 2008.
For over a year now, US lawmakers have based their policy on conservative, partisan, even stubborn politics. Naturally this refers to the Republican Party, with Senator Jon Kyl (Arizona) at the helm. Kyl, along with the Las Vegas lobby, has led the gambling industry to its current state, namely the ban on internet gaming. But this criticism goes for both sides of the coin. Partisan politics are such only if two polar opinions exist. The truth is that neither side has brought any contribution, such that is based on facts, to the table. Emotions and ideology, possibly verging on predilection and even self-interest have ruled the discourse. Now, perhaps a little too late, research is being conducted by legitimate institutions, into the effect of the 2006 Unlawful Internet Gambling Enforcement Act. Policy should be based on such data, which evaluates in scientific terms the state of the industry. The Annenberg Survey Researchers at the Annenberg Public Policy Center at the University of Pennsylvania have conducted research into the state of gambling among college age Americans. College students have been a large group among online gamblers. The reasons are many and were discussed often, on this site too, and include: Leisure time between classes Remoteness from home Internet savvy Accessible internet everywhere on campus Legitimacy among fellow students Gambling viewed as part time income source, and Available funds (from parents, loans) The current law, which reduces accessibility and availability of online casino sites, by stopping credit-card payments to off-shore gambling sites, has brought to a decline in gambling among the youth. The percent of gamblers among college students has fallen from 5.8 percent to 1.5 percent since the law went into effect, in a year's time. Background Noise Unfortunately, the Annenberg research is not the only one talked about around the industry. Focus on the Family Action, a gambling research and policy group, has commented on the stats, praising the law for reducing the "accessibility and availability of gambling to people who might not otherwise gamble." Sure, online gambling has peaked for now, and the college age gamblers decline is a good example for this passing fad. The law does work. But long term results cannot be measured at the moment, and it is yet to be seen if this persists.
The ban on online gambling may keep Antigua-based sites out of the United States. But as long as the two countries keep any sort of relations - it is obvious that they will - the issue will not be forgotten. Antigua is determined to alter the status quo. It is pursuing the US at international organizations. Most significant is the pending case being discussed at the World Trade Organization, which threatens to penalize and fine the US government for unfairly blocking Antiguan, and other, sites. But as 10 members of Congress visit Antigua for an annual Caribbean business conference, the host government plans on raising the hot issue. The delegation is made of 10 Democratic members of Congress, including Reps. Charles Rangel of New York, Maxine Waters of California and Danny Davis of Illinois. The conference that begins today (Thursday) might turn out to be a platform for change, which can only come in open discussions. Meeting face to face, at the conference, in private meetings and in organized events such as a planned tour of the country's Financial Services Regulatory Commission will be such opportunities. The Caribbean nation plans on hosting the US lawmakers at several Internet companies as well. The aim of the visits, tours and meetings is one and the same: to prove that "we do have the capacity to adequately regulate these gaming operations," said Antigua's Finance Minister, Dr Errol Cort. The existing law has been in place for over a year. It is believed to have caused the Caribbean country and others around the world damages of millions and even billions of dollars, by barring American banks and credit card companies from processing online gambling payments. Antigua has sued the US at the WTO for losses of $3.4 billion, which might be inflicted in the form of trade sanctions. The 12th Annual Caribbean Multinational Business Conference is directly related to the issue, as it is to discuss and promote bilateral business investment between the two countries. The ban, here contested, was also the focus of a decision by the Administrative Court of Appeal in Hessen state, Germany this week. The court has overturned a ruling by a lower court, now allowing Austrian online gambling operators to provide services to German customers. The reasoning that led the court to the decision was mainly that enforcing such a ban is practically impossible. With this ruling, Germany is making a step towards the prevalent policy across the European Union and the entire world according to trade laws and with a careful concern for issues such as moral and criminal implications. Left behind in France, which is in a similar process, currently pursuing online gambling companies while defending its state-run monopolies, but believed to be moving closer to the fold of the European Court of Justice (ECJ) and EU law. Oh, left behind is also the US. Time proves the market is becoming more liberal and regulated at once. Time is also one thing that seems yet to have affected the US. Its approach is of yesteryear. A trip to Antigua this time of year might do it well.
RTL is one of the most popular, widely broadcast and largest commercial television station in Germany. It is now on its way to leave its mark on the poker world, too. The German media group has signed an exclusive agreement with England's PartyGaming. The two companies will launch together a new website, RTLpoker.de, with linked advertisements to the PartyGaming's website. RTL is already a popular destination on the web, with over 6 million visits a month. The cross marketing between the existing site content and online gambling is a new frientier that may turn out significant. The German market is one of the most sought after frontiers with all that concerns online gambling. The central European country has yet to regulate the market, thus it is untapped. The potential market share, based on other European countries' success and neighboring Austria's successful Bwin, for example, is considerable. The RTL television station will also be part of the deal. Party's website and poker school will be advertised on the TV station. It is not, PartyGaming emphasized, a white label deal. The two companies will join services, not present one in the disguise of another. Party's CEO Mitch Garber did not hide his excitement when he said "This is a hugely exciting opportunity for us to work with the German internet division of Europes leading broadcaster."
The French policy regarding opening their online gambling market to competition has been in the spotlight recently. A week ago, Unibet's CEO Petter Nylander was arrested in Amsterdam following an arrest warrant issued by the French. Persecuting industry executives has not been looked favorably upon. In fact, the French have pretty much regretted the incident and released Mr. Nylander on bail. But would France go the next step - the obvious step - of opening up the market and letting go of their firm hold on the local market? Think again. Speaking on the topic a few days after the release on bail, Budget Minister Eric Woerth said France is not ready to change its rules regarding online gambling. Only a little. It may consider loosening the monopoly on horse racing. "We are not opposed to a certain opening but we will remain firm on certain points," Woerth added. His comments precede a high profile and much anticipated meeting with European Union officials on this matter. France presents its policy as protecting its industry and the gambling community. Mutual recognition does not suffice, Mr. Woerth said. "Just because an operator is recognized in a foreign country is no reason for us to have to open our gates to them in France." Stubborn? Out of sync with the current and future trends? Anti-EU at heart? It is not our guess what stands behind the French policy. But we do promise to keep following its travails.
It is quite obvious that behind the ban on online gaming in the United States is a strong lobby of casinos, most of which are based in Las Vegas, though quite a few more spread across the country. This battle between land based casinos and online gambling sites has been going on since the early days of the Internet industry. The ban, passed in October 2006, was only the climax of this battle. The current face-off in Massachusetts is an exemplary paradigm of this greater battle, which has been going on and escalating for ten whole years. In the right corner stands governor Deval Patrick. In the left corner, Representative Barney Frank. Both are Massachusetts politicians. But they do take opposite corners. What are their stands and can they meet in the middle? Playing Politics Why can't we all just get along? Why can't we just sit down for a game of poker? Instead, as in so many cases in the past, we find that our representatives play politics. Governor Patrick has been leading a program to license three resort casinos in his state. Patrick fears that this large scale plan will not be profitable would his state residents be allowed to gamble online. The logic follows these lines: if Americans end up playing online, they will visit the new casinos less frequently, and the companies might decide not to build them in the first place, which will result in loss of income for the state. Online gambling, on the other hand, does not need to be based in Massachusetts; it can be operated from overseas. (Did anyone say 'Antigua'?) Patrick has pursued his plan with a fine on online gamblers, to go along with his new casino construction plans. He has proposed jail terms of up to two years and $25,000 fines for his state residents who violate the ban. Playing Poker Meanwhile, US Representative Barney Frank (D.) of Massachusetts has sponsored federal legislation to license and regulate online gambling nationally. He is clearly at odds with his state's governor. Frank criticized Patrick's politics and logic in a clear statement last week, when he said: "Why is gambling in a casino OK and gambling on the Internet is not?" The governor's actions should indeed be doubted. While the federal Wire Act, a 1961 law that was used by those supporting a ban on online gambling, allows penalizing the operators of such sites. Patrick proposes the same sanctions be placed on the gamblers - his state residents. Patrick has not responded to Frank's comments, nor has he defended his rationale on the issue. "Clarifying the laws relating to gaming" in Massachusetts, as the state's secretary of economic development Daniel O'Connell described the proposed bill, seems to actually preventing competition and drawing casinos to start their businesses there. David G. Schwartz, director of the Center for Gaming Research at the University of Nevada, Las Vegas presented the cynical interpretation of the move, namely that it is "setting up a monopoly for the casinos." Playing the Dollar Game Whereas poker is a game of money, the licenses that the proposed bill will draw are worth a lot of money. Bidding on licenses is expected to attract 10-year licensing fees of $200 million to $300 million for each casino. Meanwhile, the bill is facing not only the opposition of Congressman Frank and the Poker Players Alliance, the quarter million members strong organization, 16,000 of which are in Massachusetts. It is also being opposed by Casino Free Massachusetts, a coalition of anti-casino advocates. Its spokeswoman, Laura Everett, said "We think the whole bill is a problem," in line with her organization's overall opposition to gambling at large. And that can serve as an example of two political antagonists meeting on common ground. Will Frank and Patrick follow suit?
For a few months now, since June this year, when the iPhone was launched in the United States, Europeans were watching from afar and wishing the cool gadget - the gadget that practically made 'cool' into its own trademark - would hit their stores. This past Friday, it finally reached the stores in the United Kingdom, as well as in Germany, ahead of releases in other countries across the continent scheduled for the coming months. Many others have followed advice, suggested by Forbes Magazine and others, to sit out this date and wait with their purchase. The highly regarded magazine said the iPhone "is slower, more expensive and less flexible than other devices available to them." So, will the Brits buy the iPhone as Americans have? That question, apparently, has become the topic of gambling online. The British mobile phone supplier O2 expects 200,000 units will be sold through the coming holiday season and by the end of the year. This will depend on the price tag, currently set at £269, considerably higher than the updated price overseas, which was drastically reduced about a month ago. One topic to bet on is when the first price reduction will take place, with the following odds: 5-2 that it happens by January 8. 10-3 for a price reduction taking place between February 8 and April 8. 7-2 for May 8 and July 8. 3-1 for August 8 and October 8, and 9-4 for any date after October 8. Another comic (and somewhat disconcerting too) bet that went on gave 20-1 odds that someone will get trampled on the Friday launch...
One could have thought Congress to be Radley Balko's homecourt. The widely published columnist was introduced favorably by Presidential hopeful Rep. Ron Paul and has taken the stage to argue for online gambling, a game "as mainstream and uniquely American as baseball." One could think so, indeed. But that would be the wrong impression. Congress and Mr. Balko do not see eye to eye on this matter. The guest has come to speak his mind and urge the government to repeal the Unlawful Internet Gaming Act. "What Americans do in their own homes, with their own money, on their own time, is none of the federal government's business," he said. Ron Paul is one of a few - currently numbering 40 - Congressmen and women who oppose the ban policy in place. This was stated clearly in his introduction of Balko as "One of the most perceptive critiques of government policies the prevent individuals from engaging in what the government considers immoral or unhealthy behavior." Balko described the origins of online poker in the game of poker, itself developed and popularized during the Civil War years. Today, there is no justification to ban online poker, as Las Vegas enjoys wide popularity, as do Indian reservation gambling facilities, horse racing tracks and cable television tournaments. Even the Supreme Court had a monthly poker game until recently. Poker is as American as baseball. It should be protected under Civil Liberties.
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