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The leading search engines Google, Yahoo and Microsoft can look back at 2007 and sigh with relief. The class-action lawsuit, which was filed back in 2004, and which claims that the companies have earned hundreds of millions of dollars in advertising online gambling sites, reached a settlement. Google, Yahoo and Microsoft, which have reached the settlement with the US Department of Justice on December 19, will pay $31.5 million (about two thirds of it paid by Microsoft), but did none have admitted any wrongdoing. Although the sum paid in the settlement in insubstantial, compared to the amounts allegedly made from the practice over the past decade, the DoJ claims victory. Its intentions and serious pursuit have proved to pay off. Still, the companies will find themselves in court in the coming year as well. A civil trial is set to begin February 11, as some "believe the agreement with the government does not go far enough," as Reed Kathrein, lead attorney in the case and partner at Hagens Berman Sobol Shapiro was quoted saying in a press release issued by the law firm. The lawsuit asks the courts to restrict the potential for similar advertising and profiting to take place in the future. The federal case does not close the door on such cases being brought to the courts at the various states, as this one, in California. Victory for the prosecutors will be a deterring fine and an admittance of guilt by the search engine companies. The civil complaint also seeks full disclosure of their profits, and these amounts to be directed at education and rehabilitation of gambling addiction. This is already the case in the recent settlement. Of the sum paid, many millions have gone to benefit the International Center for Missing and Exploited Children, will be spent on public service ads and so on.
The New Year is only two days old and we already know what one of the big stories of 2008 is going to be. Germany opened the year with an accord that bans private betting companies from the local market, while protecting German state monopoly. All Out Ban The accord that bans private betting companies from Germany was ratified in December and took effect on January 1, 2008. It will keep private companies - even those with EU licenses to operate anywhere in the continent - out until 2010. Thirteen of 16 states have ratified the accord, making the necessary requirement for it to take effect. German government spokesperson Eric Braum said "That's the required majority and we expect to have all the rest coming in by New Year's Eve." In the two years until 2010 the states will be able to continue capitalizing on the market as they develop a system to allow competition. What the ban means is a 'Nein' to all Internet gambling and betting games, specifically any such actions involving companies based outside Germany. 'Nein' was also said to any form of advertising online gambling, and even allows blocking access to gambling sites. The World Responds The ban, although having gone into effect yesterday, will not pass without opposition. One large online gambling company that understands the word 'nein' all too well is the Austrian BWin Interactive Entertainment AG. It and other betting companies - some 20 of the world's biggest - are expected to file a legal complaint. "The accord breaches EU law because it excludes foreign betting companies with EU licenses from the German market," said the head of the legal firm representing the companies, Wulf Hambach of Hambach & Hambach. The law firm that represents BWin, Redeker, said it expects to see thousands of online gambling companies take legal action against Germany. With these comments and the large stakes involved, it is a sure bet that 2008 will see continuing legal battles over the issue of state monopolies.
The Gambling Act, which came into effect late in 2007, has been a brave and wise move for the UK government. Three million English men and women gamble online regularly. It does indeed make little sense to fight against this widely popular practice. The UK government has decided to play along. But will it see profit from this move? Surely they will, with an entirely new advertising niche created, for example. So online casino companies will operate in the UK and even participate in the various marketing industries. They seem not to hold any sentiments, however, and do not base their operations in the UK proper. They even seem to leave the UK and relocate elsewhere. And it's not for the sunshine, or lack there of. Online casino companies, such as Totesport Casino, which is a branch of government-owned bookies Tote, are doing the simple math and prefer operating from countries that are included in the Gambling Act's whitelist and offer a lower tax than the UK's 15%. Gambling - responsible gambling - is no doubt encouraged by the Act. But the companies business has no incentives to operate from within the country. The relatively high tax rate set by then Chancellor Gordon Brown, does not compete with Gibraltar and the Channel Islands The gamblers themselves will not be hurt by this; on the contrary, they will enjoy legitimate and regulated casinos and government protection. But the UK itself was either too greedy or lacked the foresight when it set a high tax on gambling companies.
If it's hot, you can probably bet on it online. Such is the case with all sports, the Superbowl winner around this time of year; European Football during the season and all other sports branches. As mixed martial arts (MMA) tournaments grow in popularity, it is only a matter of time until it too is available on online gambling sites for gamblers to bet on. MMA is a full contact combat sport that includes a number of fighting practices and techniques. It dates back to the 1920s, in Brazil, but has reached great success ever since 1993, with the launch of the Ultimate Fighting Championship, which has fighters of different styles meet in the rink. It currently draws thousands to the tournaments and many more to pay-per-view broadcasts on television. Of course, the Ultimate Fighting Championship may not keep its high rate of popularity. It might need to be reinvented before it reaches long lasting success. It might also keep its status and even grow for years to come. (We leave that to time to tell.) It might reach that status when online betting sites offer higher limits and greater action, such as is the case with boxing, for example. Currently, the gambling world is not doing much to promote the sport. It offers micro limits and little action until only a few days before the matches. Perhaps the online gambling providers are waiting for the sport to lead the way, instead of taking charge. To us it seems like a safe bet. The crowd at the tournaments is young and tech-savvy. They will surely welcome online wagering and participate too.
The gambling world includes a world of entertainment, beyond mere placing bets and playing games. Examples vary from this very entertainment news article to the Bodog Music record company, owned by the online gambling operator. The company's lead act, Juno Award-winning Bif Naked, formerly known as Beth Torbert, has revealed she has been diagnosed with breast cancer and is to undergo surgery this week. The Canadian punk-rock singer leads a healthy lifestyle. At the age of 36, she works out regularly and keeps to a vegan diet. She has recently married The Vancouver Sun's sports writer, Ian Walker. She is famously and openly bisexual. In a radio interview on The Strombo Show, Naked said: "It is a very surreal situation for Ian and I at this time. Two weeks ago I was doing a self breast exam and discovered a lump. I went into my doctor for a checkup and he immediately sent me for tests, including a mammogram, which indicated a high possibility of cancer." This week, only two weeks since being diagnosed, Naked is scheduled to undergo surgery and have the growth removed. Naked is a busy promoter for Bodog Music. She is one of the hosts of Bodog Fight (since 2006) and among the three judges on Bodog's Battle of the Bands 2007. She is currently in pre-production stages on two new albums. With her latest health concerns to go along with her busy schedule, Naked said she will take things "one day at a time." In addition, she has some advice for us, readers, players and people at large: "It is important for everyone to understand that cancer is non-discriminatory and even those in great health can be subject to cancer as a diagnosis."
Although the ban on online gambling has been in effect for over a year, since late 2006, US citizens continue placing wagers online. The authorities, on their behalf, continue pursuing the ban. Most recently, US authorities announced the arrest of eight people for their involvement in a gambling website, based in Costa Rica, serving American users. Twelve men were charged altogether. Six of the arrested men were picked up in New York, and the other two in Maryland and one in Massachusetts, all on the east coast of the US. They are said to have managed and profited millions of dollars in supporting online gambling over the web and phone. The official charges are of gambling, conspiracy to engage in gambling and money laundering. As sports bookies in the US could not process wagers by their customers, the website would offer offshore services for a weekly fee, which the bookies were charged. The fee ranged between 15 and 30 dollars per week per gambler. The number of gamblers in the US does not seem to have dwindled. Many Americans continue to gamble online, an activity that is viewed by many as a freedom that cannot be taken from them, namely that of what they choose to do in their spare time, their privacy and with their own money. The ban, though enforced, as in this specific case, does not stop the mass gambling trend. In spite of the arrests, it seems not to be very successful in moving toward the goal of eliminating online gambling, only of closing down one website or another.
The Southeast Asian country of Vietnam has been an example of economic growth for the region. The country of 85 million records top growth numbers, such as its GOP growth of over 8 percent in 2006. Although only recently shaking off its scars from past wars, and living in the shadow of China to its north, Vietnam proves to be making the wise moves economically year in and year out. It is considering these days legalizing online gambling, in an attempt to boost growth even more, by drawing tax revenues, so reports the VNA news agency. Its ministries of Finance, Planning and Investment drafting legal documents that will be the foundation for allowing gambling providers to set up shop in Vietnam, as the country assures no criminal activities accompany the policy. This takes place at a time that China is about to become a center for gambling with Macau designated The Next Las Vegas. It is also contemporary with competing global trends to regulate the industry (UK) and ban it (USA, Germany). Currently, all forms of gambling save the state lottery are illegal in Vietnam. The region, however, is considered by the industry to be a prime target market for the coming years, with Asians taking a liking of the online gambling selection they are presented with. Another element factoring in to the Vietnamese decision will be the illegal gambling operations that take place in the lack of a regulated industry. Vietname, like practically any place where gambling is prohibited, proves that the players will play regardless sof the law, and that accepting that and moving on to dealing with the situation is the best modus operandi. The Vietnamese online betting market is valued – today, in its illegal state – at $1 billion.
Sports betting site Betfair has been around for quite some time. Over nearly a decade of activity, the entertainment website saw two US presidential elections. It has probably never seen such a loss over its faulty predictions as it has this week. For some reason – which we will try to explain in the following – the European online gambling website has posted extremely unfavorable odds on Democratic Presidential candidate Hillary Clinton to win the New Hampshire caucuses. The odds were posted after her main rival, Barack Obama, won the Iowa caucuses. This mistake cost BetUS $75,000. It should be noted that American websites have not mistaken so badly as their European counterparts, Ireland’s Paddy Power included. BetUS and the American sites have had Americans placing bets too, helping it establish a more accurate prediction. This input the European sites have lacked. For who in their right mind could have listed Clinton’s odds of winning in New Hampshire at a measly 50/1? This spells out to an unbelievable payout of $5,000 for every $100 bet. Some around the European gambling market have gone out of their way to already crown the winner. Paddy Power declared that the Democratic Nomination race "is well and truly over and are already paying out on Barack Obama to be the successful Democratic nominee” before the race on Monday. Obama meanwhile received odds similar to those American bettors saw in the US, namely in the range of 4/1 to 9/4. There are also odds on who – Clinton or Obama – would become president in a year, but these we will leave out at this stage, understandably...
British independent research company Talisma has conducted an audit of 100 UK online casino sites in October 2007, a year after its first audit of this kind. The recent audit has revealed a noticeable improvement in a key factor: Customer Service. The Talisma Customer Service Audit for 2007 main findings, other than the quoted bottom line that states "significant improvement" in customer service levels, is as follows: Score: The average score of sites checked was up from 54 to 61, out of a maximum score of 100. The score is higher than online retailers and broadband providers, at 51 and 54 respectively. Answering Calls: more calls were being answered, up from 60 to 74 percent this year. Chit-Chat: a considerable 42 percent of websites provided support via online chat. On the Mark: chat sessions and emails scored a perfect 100 in accuracy of the information provided. On the downside, some results showed the service still lacks on several issues: DIY: there was a lack of self-help tools, amassing greater load on the call and email services. Personalize it: phone calls lacked personalization, at a mere 8 percent. Emails and chats have been personal, however. History: no unified interaction history records were kept, confusing matters when contacting both email and call centers, for example. Conclusion These finding were enough to impress vice president international operations at Talisma, Jon McNerney, who was nonetheless clear on the further progress and work still needed for the industry to become efficient. McNerney said: "While it is encouraging that the UK online gambling sector has significantly improved customer service in 2007 there is still huge scope for improvement." With the Gambling Act in place, the competition as great as ever and the volume of visitors considerable and more, customer service is expected to continue its upward climb. See you next year with the next audit released.
The UK Gambling Commission has granted operating license to a Canadian-based online gambling software company. Bingo software company Parlay Entertainment is the 30th company on the White List. The world's leading supplier of Internet bingo software is headquartered outside Toronto, but has subsidiary offices in Bridgetown, Barbados and Valletta, Malta. It is through the latter office that Parlay has received the license, which will allow it to develop, supply, install and adapt gambling software in the UK. The White List, an unofficial name of the list of companies that are not based in the European Union, Malta or Gibraltar, but are allowed to operate in the UK market, has thus reached 30 companies. Parlay is the only bingo software company of the 30. Parlay’s European Managing Director, Steve Cook, for whom this is great news on a personal level too, expressed this sentiment, saying: "We’re thrilled to have been granted a UK license." "It means we’ll be able to continue serving our existing UK-based licensees as well as signing up new ones. We’re also pleased that we are currently the only online bingo developer to receive a remote gambling software license in the UK," he added. The White List was made up to protect the UK market and its gamblers. The Gambling Act's objectives, by which Parlay will have to abide, are three: keeping crime out of gambling, ensuring fair and open gambling, and protecting gamblers from exploitation. The latest to join the List will also be able to take part in the ICEi show in London, later this month (January 22-24). There it will be able to promote its latest software and take an active part in the sought-after UK market.