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In his final State of the Union Address as US President, on Monday, George W. Bush tried a bipartisan approach when invoking subjects that range from the economy to the Iraq war. Bush left out one subject that millions of Americans and many more around the world have been affected by. In his 53 minute speech, the President did not mention online gambling. His administration has, meanwhile, been pushing forward the Cyber Spy Initiative, an initiative that will enable the government to monitor online gambling. In the address, Bush demanded that Congress and the Senate comply with his administration's controversial no-warrant eavesdropping program. The Foreign Intelligence Surveillance Act has yet to be revised to his liking, with stern opposition by representatives who find it a throw-back to the Watergate-era. The law would allow the government to spy on people who conduct searches on the web too, including on The Google, as bush referred to the famous search engine. Ironically, the State of the Union came exactly on the date that the international Data Privacy Day. The price tag of the initiative is estimated at $6 billion. That will be the cost of building a secretive system protecting US communication networks. Who is it protecting the US from? Online gamblers! While the Bush administration is designing cyber spying initiatives, the European Union is taking the polar stand. IMEGA reports that the EU is even considering having IP addresses, by which one can tell where the computer user is located, qualify as personal data, thus protected from such spying schemes. Such a step would, however, hurt web companies, Google included, and other Web 2.0 services, who personalize their sites to users based on the IP addresses. But right now the only address to concern web users in the US and elsewhere around the world is Bush’s address.
The Weekly Edition, an OCR Live! video, in which Kate brings you the headlines from the past week, including: Customer Service Audit The Talisma Customer Service Audit for 2007 released. It was summed with two words: significant improvement. UK White List Online gambling operators from around the world want to enter the UK. Only 30 have so far made it on the Gambling Commission’s White List. The UK’s Expansion English casino companies are looking to spread east. Online gambling operator 888 has signed a deal Entertasia to provide its products in China. Talking About Poker A Word of Mouth advertising campaign has London’s taxi drivers talking poker with their passengers.
News consumers can now become participants too. That, of course, if they are willing to put their virtual money, and their reputations, on the line. A new website has launched this week at a technology start-up conference in Palm Desert, California, which allows virtual betting on news stories. The Edinburgh, Scotland-based website, Hubdub.com, provides a platform for playful betting with virtual money. Hubdub co-founder Nigel Eccles believes the website will challenge people to put their (virtual) money where their mouths are. It’s not enough any longer to talk the talk. Hubdub has people walk the walk. Membership is free. Upon registering, users receive 1,000 Hubdub dollars. Their comments, questions, postings and bets all go toward the various stories’ rankings. By voicing their opinions, users risk their credibility. In turn, they can receive "leader board" recognition, the virtual alternative to bragging rights. "One of the things we discovered is that people value reputations more than they do cash. It is an even bigger currency,” said Mr. Eccles. As Hubdub focuses on the US market (its most popular story is currently Britney Spears), it is being careful to obey the gambling law, known to real money gamblers as the ban on online gambling.
Facebook is bigger than MySpace. This much has been established in 2007, the year that the young social network website has made its giant leap. Poker is bigger than Facebook, or so seems to be the case. In spite of the Unlawful Internet Gambling Enforcement Act, no less than 30 million Americans play poker, though for free. Poker room operators have recently introduced their products on Facebook, where they have been greeted by millions of enthusiasts. In free games, players win points – not cash – by winning hands and participating in social activities, such as getting friends to join, etc. Bodog, Absolute and Ujogo are among the poker rooms who offer free poker game applications on Facebook, as well as use the network to spread word of mouth advertising of their websites. At this point in time, users must leave Facebook and reach the poker rooms themselves to play for real money (where gambling is legal, of course). But there is a lobby with a strong case – a $7 billion case – that calls for legalizing poker of all games, as a game of skill. Poker rooms, social networks and the US economy will all benefit from this, if carried out properly. Ujogo’s free Texas hold'em poker is the third most popular application on Facebook. Now imagine what it would be like if playing for money was legal. Would the law change, social networks fully incorporate online gambling, and industry leaders enter the gaming market (Yahoo! already has), we might see great changes in the year ahead.
Currently, online gambling in Canada is in the legal grey-zone, largely affected by its neighbor, the United States. Be it poker, state-run casino operations or another form of gambling to take the lead, it is quite clear that one day this reality will change and gaming will be emraced, legal and regulated. When the Unlawful Internet Gambling Enforcement Act (UIGEA) will be removed, Canada too will open up and there will be a large market to serve. Some companies are not wasting their time in preparing for this day. Explore and Consider Online Gambling The Atlantic Lottery Corporation (ALC) is one such company. It has solicited video game makers to develop gambling games for it. Its formal request was phrased with the words: “explore and consider a suite of Internet-based lottery products (including) instant win products, casual games as well as other popular games played by consumers on this online medium.” Is Canada preparing for the day online gambling will be legal? Of course, there are voices that call against such a reform, experts worried about an increase in gambling addictions. ALC spokeswoman Paula Dyke tries to calm this voices, saying the lotto corporation isn’t necessarily expanding its offerings just yet. Rather, it is refreshing the products that exist already. “At this point,” Dyke said, “we’re looking to see what’s out there.” A History of Indecision The Atlantic provinces in Canada already see $100 million annual revenues from ALC’s products. It is the provinces that will decide the fate of gambling. The federal law in Canada outlaws setting up online gaming sites. This does not change the fact that Canadian companies are big players in the international gambling market (e.g. Cryptologic). Kahnawake, a Native reserve in Quebec, has recently faced some legal chamllenges with regard to the operations it hosts in its territory, under its licensing board. The law, however, does not address gamblers. It only addresses whoever is found in a "common betting house." Do virtual casinos qualify? Canada even has a history of trying to legalize online gambling. As long ago as in 1997, federal MP David Mills promoted a bill to make it so. His argument was well ahead of its time, and is used now: the underground gaming economy should be regulated. There is even profit for government if it will be done. Either unaware of the direction the market was going (a 2001 survey suggested one in 20 Ontarians had tried online gambling at least once), or afraid to handle the hot potato, Prime Minister Jean Chretien did not support the bill, and it failed. So, What Will Be? Of course we have no knowledge of what the answer to this question is. If we had, we would bet on it, not tell you… But the only realistic guess is that the ALC and whoever else is preparing for the day that online gambling be legal – anywhere around the world, not only in Canada – is doing the right thing.
At first all we reported was that a shooting occurred in Costa Rica that involved an online gambling official. The identity of the victim and his condition was unknown. New reports reveal the victim was Joey Rizzo, one of the partners behind BETUS, the popular online sports betting website. Mr. Rizzo was not seriously hurt, suffering a blow to his leg. Joey Rizzo, who uses the name as an alias, was shot at when driving through a bad part of town. The shooting is assumed not to be related to his gambling connection. Mr. Rizzo’s bodyguard is not in any serious condition either, as he was in the car at the time of the shooting as well. Setting the Story Straight The shooting incident happened on Monday night, January 21, in San Pedro, Costa Rica. It was reported on our site as soon as word made its way out of the Central America country on January 24. Unlike the original reports, no one involved is in any serious condition. Also, the central role that Costa Rica plays in the world of Internet gambling raised the possibility that the shooting might be related to the industry, echoing past incidents (Bodog’s Calvin Ayre was shot at once). However, it seems to be unrelated.
It’s the Big One alright. There are 300 ways to bet on the super Bowl, but only one sure bet. It’s going to be one heck of a game. Super Bowl XLII will feature the best team of the decade, pursuing an undefeated season and its fourth Super Bowl title under the leadership of Bill Belichick and Tom Brady against a team from the nation’s largest sports and media market, led by a charismatic young quarterback from a distinguished line of quarterbacks, Eli Manning. The New England Patriots will meet the New York Giants Sunday, 1 o’clock eastern standard time. Of course you know this by now. The only thing you do not know is who will win the coveted trophy. That and the answer to hundreds of other bets that are available online at sports betting sites. It is estimated that these bets will draw $10 billion in wagers by kickoff time. The Patriots are comfortable 11 to 13 point favorites to win the match. We have listed a few of these prop bets for you here: Total passing yards by each team’s quarterback. Best odds, 5-1, that Manning will pass 216-225 or 241-255 yards). Will Manning throw a touchdown or an interception first? Will Tom Brady throw a TD pass in the 3rd quarter? Which player will record the longest single reception in the game? Randy Moss leads with 3-1 odds of recording the longest pass, ahead of the Giants’ Plaxico Burress (4-1). Which will be the highest scoring quarter, with the 2nd as favorite? And even what the effect will be on trade on Wall Street on Monday.
The Presidential election campaign has been going on for quite some time. Election Day itself is still nine months away. But today, Tuesday, February 5, 2008, was circled in everybody’s calendars. Largest Super Tuesday to Date Welcome to Super Tuesday. No less than 24 states, from New York to California, will hold caucuses and primaries today. A lot is on the line, as the winner between Hillary Clinton and Barack Obama on the Democratic side, and John McCain and Mitt Romney of the Republican Party, will be the likely candidates facing each other come November elections. There is even more on the line. Online sports betting sites, such as Betfair, are offering a range of bets on the US election and Tuesday’s outcomes. As the candidates seem locked in statistical dead heat, the betting action online becomes more exciting. But online gamblers have not only their wagers on the line. Rather the stakes are much higher. The Gamblers’ Perspective The candidates have campaigned with their proposed policies and opinions about the war in Iraq, immigration, health care reform and other topics. Quite a number of people are curious about their opinion of online gambling. The 900,000 people strong Poker Players Alliance (PPA) has released a guide on the matter. Barack Obama, though not a PPA member, is a poker player and has expressed his interest in conducting a study on regulating and taxing Internet gambling in the US. Hillary Clinton too has expressed interest in a study that will see whether the industry can be fairly regulated and be safe for individuals and businesses. The Republican candidates meanwhile are not as open to the idea of regulating online gambling, for they largely represent the religious and conservative base. Since Ron Paul is not a likely winner today, his pro-online gambling stance is insignificant. John McCain has expressed his disconcert with wagering on college sports, in any form, online or not. He was also seen throwing dice and playing blackjack over the years. Mitt Romney’s stance is unclear. He seems to be interested in the religious vote mainly, and has a record of blocking slot-parlor expansion in Massachusetts. A Day at a Time Lobbying the candidates aside, online gamblers may bet on this day, just another day or a critical day for the candidates and the world of gambling.
It is taken for granted that ever since the United States passed the ban on online gambling, there is no legal way for Americans to play casino games for money online. Think again. An American website, WorldWinner, based in Massachusetts, enables players to compete against each other for cash, what was assumed to be illegal. How Is That Possible? The website mixes games with gambling, without taking any revenue from bets lost, other than an entry fee, usually about $2. In other words – there is no house. Over 30 million players are registered to the site, some for free games, which do not require any fees, and many for real-money action. In total, the site operates millions of tournaments every month. Games include Dynomite, Solitaire, and many more. The games require downloading the software from the site, registration and little else. Cash game winnings show up in the player’s account, and can be withdrawn at any time. The average payout is about $6, though larger payouts are possible. How Is This Legal? The games and tournaments at the site are skill games. That, and the fact that there is no house profiting from players’ losses, makes it unlike a traditional gambling site, and more like charity golf tournaments, to borrow the analogy offered by Peter Blacklow, the operating company’s president, or like a video arcade hall. Gambling, in essence, but by another name.
Last year was a good year for McGuirewoods Consulting. The National basketball Association paid the lobbying firm $330,000, according to the Senate's public records office. The large chunk of the sum, $280,000, was paid in the second half of 2007, after the NBA learned one of its top referees was engaging in gambling activities. The league’s response was to increase its lobbying efforts, as expressed in the financial investment, into preserving the ban on sports gambling particularly, and to strengthen the ban on online gambling in general. Most lobbying efforts by the NBA were directed at drugs and steroids policy and in support of work visas for foreign players. These are obvious interests of the NBA. But when the NBA lobbies against online gambling, is it really the right move? Some voices heard point at the positive results that may come out of lobbying for the contrary. They are two: Legalizing and regulating sports betting online would prevent underground and illegal activities from taking place, and Income from taxing such gambling activities can go toward players’ pensions and other good causes. For now, the lobbying efforts are successful mainly in keeping the status quo, namely barring online gamblers from collecting earnings on their wins and lobbying groups the only ones involved making money above the table. With some thought and effort, this might yet change.
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