Update on Internet Gambling Ban

[DisgruntledLionFan#54,927]

From my perspective, the legislation is poor based on many different reasons:

1) I do not believe in government legislated morality.
2) Futility
3) Manner in which the legislation passed.
4) Government hypocrisy

In regards to my first qualm with it, I don't agree with government legislated morality in any form. I do not like legislation regarding alcohol consumption, pornography, drug use, or censorship because it is the act of using the government to impose the moral views of one segment of society on another. If the religious right in this country does not believe gambling is right, then by all means they should feel free to abstain from the practice but they have no right to stop consenting adults from deciding for themselves how they want to spend their time and money.

Secondly, the law is largely unenforceable. No one believes this will stop internet gambling in the least. While it has pushed out some of the larger and better regulated sites, there are still plenty of sites available. Many have declared their intentions to stay in the market. Also, the banking industry has already declared that they have very little ability to stop transactions in the way that politicians desire and the law itself states that the banks will not be required to do very much. Unenforceable laws merely keep the market in a gray semi legal area.

The legislation itself was nothing more than a political move. When you look at the people passing it, the proximity to an election, the unenforceable nature and the carve outs for horse racing and state run lotteries, its nothing but a hypocritical attempt to pander to the religious right in an effort to get them out to the polls next Tuesday. Its crap. The legislation will not help anyone with a gambling addiction but it will stop adults from engaging in an entertaining activity the government has no right to keep them from partaking in.

Frist in '08!!!!!!!!!

It has been obvious for quite some time, and certainly since the Schiavo travesty, that the Bush-led Republican Party is the very an hesis of individual liberty and a limited federal government. The administration and its Congressional loyalists not only seek unlimited state power in name of combating terrorism but also in the name of enforcing private morality.

http://glenngreenwald.blogspot.com/2...te-sphere.html



BTW, how does throwing an addicted gambler in jail help them?

[MannyIsGod]

The legislative maneuver was seen as a way for congressional Republicans to show they'd done something for the religious right in a session in which Congress accomplished so little for almost everyone.

"Gambling from your bedroom or living room or dormitory is not a socially useful activity," according to a statement from the office of Rep. Jim Leach, R-Iowa, who pushed the legislation.

While accessibility of online gambling has surely lured its share of gullible gamers, just how comfortable should we be with government dictating which activities undertaken in our bedroom, living room or dormitory are "socially useful"?

http://seattlepi.nwsource.com/opinion/287412_gamblinged.html

House Speaker Dennis Hastert, R-Ill., concerned that his involvement with the discredited Jack Abramoff (lobbyist for Indian gaming interests) might jeopardize his re-election prospects in November, instructed the House leadership to pass a bill restricting Internet gaming in the United States — no matter what it took. The House did just that.

Senate Majority Leader Bill Frist, R-Tenn., who would love to run for President in 2008, was eager to do the same in the Senate to show the vocal Christian right wing of his party that he shares their aversion to gambling. (Remember the Reagan days, when the conservative wing of the Republican Party won elections by railing against big government meddling in people’s lives? I guess those folks will have to vote Democratic now.)

http://www.cbsnews.com/stories/2006/...n2061902.shtml

Casinos in the U.S. traditionally have "fundamentally opposed" online gambling, said Holly Thomsen, spokeswoman for the American Gaming Assn., the casino industry's lobbying arm. Without "proper regulations," she asked, who would protect the children or the "problem gamblers"? In April, however, the industry group adopted a more neutral stance, saying the issue deserves further study, which was perhaps not a coincidence, because MGM Mirage and Harrah's, both members of the American Gaming Assn., now say they would like a piece of the action if it were legal.


-----

The casinos say their interest in betting via modem is not because they fear the compe ion. Many have wrongly predicted the demise of Las Vegas because venues for legal gambling — riverboats, lotteries, Indian casinos — have expanded, said Robert LaFleur, gaming analyst with Susquehanna Financial Group. But over the years, the conventional wisdom has become "the more gamblers, the merrier," because they'll wind up eventually in Las Vegas. "Anything that creates more gamblers is good for brick-and-mortar casinos," said Dennis Forst, an analyst for Keybanc Capital Markets.

http://www.latimes.com/news/opinion/...nion-rightrail

[MannyIsGod]

These are important issues, and they deserve an honest debate. Unfortunately, the supporters of the three bills currently under consideration aren't interested in honest debate. All are pushing their bills as part of "lobbying reform," or the GOP's attempt to save face after many of its members have suc bed to their own moral failings.

Rep. Goodlatte and Sen. Kyle in particular have attempted to push their bills as "anti-Jack Abramoff" measures, referring to the now-disgraced lobbyist. I debated Rep. Goodlatte on his bill a couple of weeks ago, and was surprised when he spent most of his time talking not about the merits of his legislation, but about how passing his bill would send an important message to the American people about lobbying and corruption in Congress.

http://www.cato.org/pub_display.php?pub_id=6003

[MannyIsGod]

According to the New York Times, the gambling ban moves to the House floor for a vote next week, where it’s almost certain to pass. Here’s the kicker:

The majority leader, Representative John A. Boehner, Republican of Ohio, announced a few days ago that the measure would be voted on this summer as part of what the Republicans call their American Values Agenda.

So because the Republicans have garnered public scorn for the unethical, corrupt, morally bankrupt way they’ve governed over the last decade, they’ve decided to make a last-ditch attempt to hold on to power by passing judgment on the morals of their cons uents (most of whom, polls show, oppose the bill).

http://www.cato-at-liberty.org/2006/...ng-marches-on/

[MannyIsGod]

It only gets worse from there. When the lobbying reform package fell apart, the Republicans tried a new approach, bundling the ban with flag burning, gay marriage, and a number of policies on the GOP social agenda as part of the "American Values" agenda. That's how it passed the House.

http://www.foxnews.com/story/0,2933,224157,00.html

[DisgruntledLionFan#54,927]

The American Gaming Association, while publicly supportive, was actually very luke warm regarding this provision. They had supported Senator Kyl earlier this Congress, but had stopped pushing for passage some time ago. So what happened to change their mind? One, the specific language of this proposal. It doesn't treat all forms of gambling in an equitable manner - specifically horse racing and lotteries. This is a no-no for the AGA. The second reason is much more interesting. The knee-jerk reaction to online gaming from the US casino companies (and the Indian casinos) was to do everything possible to shut down the unregulated, offshore compe ion. Once some of these offshore companies went public in London, their market values caught the eye of the US companies. The US casinos (and the reservation locked Indian casinos) then began to see that this offshore market - if legalized and regulated - could create a significant new stream of revenue. They essentially didn't want to burn a bridge that they might someday want to cross. . . . This provision was passed in spite of corporate sentiment, not in reaction to it. I doubt that you will find corporate casinos celebrating - or commenting at all - on the passage of this bill.

http://corner.nationalreview.com/pos...k0YzM1Y2YyYjM=

Vegas always wins.

[MannyIsGod]

Nice find.

[Spurminator]

"Gambling from your bedroom or living room or dormitory is not a socially useful activity," according to a statement from the office of Rep. Jim Leach, R-Iowa, who pushed the legislation.

I'm utterly speechless.

[DisgruntledLionFan#54,927]

I just want the sandwiches:

U.S. officials have declined to participate in Tuesday's gambling summit in London, where lawmakers from 30 countries will discuss ways to regulate the industry, including the protection of minors and keeping the industry free of crime.

Officials from Australia, South Africa and New Zealand, Malta, Costa Rica and Antigua and Barbuda are expected to attend.

Antigua in particular has been engaging in a strong defense of Internet gambling, one of the tiny Caribbean state's few economic success stories.

It argues that the U.S. ban is in direct contravention of a ruling by the World Trade Organization last year that the United States amend some of its legislation to permit Antiguan gambling operations to offer their services to U.S. citizens on a level playing field.

Makes complete sense that we wouldn't attend, especially right after passing this ban. Right?

She also said that America's Prohibition legislation in practice forced otherwise law-abiding customers into the hands of the bootleggers.

Under new British gambling laws, online operators have a "social responsibility" duty written into licenses and policed by the independent Gambling Commission.

It requires them to work to prevent underage gambling, give prominent warnings about addiction and inform users how much time and money they have spent on the site.

http://www.insidebayarea.com/argus/news/ci_4566673

[Marklar MM]

I'm utterly speechless.

I agree with you. They should just ban the internet if you ask me. It makes everyone socially useless.

[SequSpur]

Spin.

[Aggie Hoopsfan]

"Gambling from your bedroom or living room or dormitory is not a socially useful activity," according to a statement from the office of Rep. Jim Leach, R-Iowa, who pushed the legislation.

Good thing I sat in the kitchen to play. What a joke.

[1Parker1]

Thanks for article quotes Manny and Pistons fan!

[Slomo]

Gambling sites play double or quits

Non-Americans like poker, too

By Burke Hansen in San Francisco → More by this author
Published Friday 29th December 2006 12:01 GMT

House of Cards A recovery in the online gaming economy act is gaining traction, according to several reports. The passage of the Unlawful Internet Gambling Enforcement Act by the US left a swath of economic misery in its wake, but efforts by the major players in the industry to refocus their energies on Europe and Asia are starting to pay dividends.

Both Sportingbet.com and Partygaming.com reported stronger than expected earnings last week, as increasing numbers of players from the European and Asian markets offset the loss of the enormous American market.

Partygaming.com reported an increase in daily poker revenue from $637,000 in October to $721,000 in November. Overall daily revenue in November, excluding the sportsbook, averaged $921,000.

Sportingbet.com reported an increase in traffic from 6,000 players per day to about 7,000 according to Gamingpublic.com, an industry trade paper. Banking giant UBS responded by upgrading its stock evaluation from reduce to neutral.

The wave of consolidation in the sector continues to pick up steam.

Harrah’s has agreed to a $27.8bn buyout, according to a company press release. The largest gambling conglomerate in the world is being taken private by a group of investors led by the Texas Pacific group, in one of the largest leveraged buyouts in history. Harrah’s began as a bingo parlor in Reno in 1937, and became the first Casino operator to be listed on the NYSE back in 1973. This comes on the heels of Murdoch’s BskyB’s takeover of 365 Media, which itself had just gobbled up longtime compe or Bowman’s.

It also follows the announcement a strategic partnership between the Sands and Cantor Gaming, and the confirmation by El Reg of ongoing merger talks between Ladbrokes and 888 Plc.

Scandinavian-oriented poker site Purplelounge.com recently rejected a $59m offer for half the company, according to Gambling911.com.

The collapse of the sector after the passage of the UIGEA has provided both the opportunity for consolidation- i.e., ridiculously low stock valuations relative to the cash generated by the sector- as well as the impetus to get big enough to weather any adverse legal developments in jurisdictions such as Germany, France or South Africa where internet gaming remains controversial.

It’s easy to imagine the online gaming sector going through same growing pains that beset the search portal industry in the late ‘90’s- too many compe ors in a field likely to be dominated in the long term by a few major brands. Ironically, major American players like The Sands or MGM Mirage, with strong brands and cash to invest, are well positioned to pick up the pieces of a fragmented, weakened market.

Another response to the knee jerk reaction against online gaming by American authorities has been the development of poker currency exchanges to facilitate wildly popular online poker tournaments. Sites such as Pokerstars.com offer tournament credits which can be redeemed at a third party site for real money at discounted rates.

American authorities just can’t seem to squeeze that genie back in the bottle. ®













http://www.theregister.co.uk/2006/12...ites_round-up/

[MannyIsGod]

The American Market is still in full play for sites like Poker Stars and Full Tilt, but there is going to be another crucial day when the Feds come out with the completed regulations which should happen in the beginning of this year. I retain high hopes that the regs will be meaningless and do little to nothing to stop things, but there has been real damage done by the act mearly because so many casual players don't understand the legal situation and think it is illegal to play. Many thought it was illegal before, but they think that they're in danger of getting in some sort of trouble now (they are not). Hopefully with time they will move back into the market.

[GINNNNNNNNNNNNOBILI]

Manny, What's the deal with the whole neteller situation?

[MannyIsGod]

They pulled out. I have no idea what it means other than a big ass headache for now.

[screamformelongbeach]

Manny, What's the deal with the whole neteller situation?

Neteller's 2 head honchos were arrested the other day for violating the new legislation, which precipitated the shutdown of its U.S. operations. And this comes on the heels of Pinnacle Sports, regarded by most in the gaming industry as the best offshore sportsbook in the world, shutting down its U.S. operationsthis week. And I just read that Citadel, a leading processor of EFT's for the offshore gaming industry, is following suit. Obviously, a lot of dominoes are falling right now....

[MannyIsGod]

They weren't arrested for violating the new legislation. They were arrested for tax evasion or longer running violations of the law. They had no official position with the company, but either way I suspect you are right that Neteller made this move right now because of their arrests.

[Kori Ellis]

They weren't arrested for violating the new legislation. They were arrested for tax evasion or longer running violations of the law. They had no official position with the company, but either way I suspect you are right that Neteller made this move right now because of their arrests.

Are you sure?

Lawrence and Lefebvre are both charged with conspiring to transfer funds with the intent to promote illegal gambling. If convicted, both defendants face a maximum sentence of 20 years’ imprisonment

[Kori Ellis]

Manny, there's nothing about tax evasion in the Department of Justice statements. It's all basically about money laundering and promoting illegal gambling.

[Phil Hellmuth]

Neteller is a goner

[MannyIsGod]

Interesting, must be the money laundering that was mistaken for tax evasion. The illegal gambling must be for the wire act, because they aren't part of Neteller anymore so it can't be for the new law.

[MannyIsGod]

BAck then UIGEA was setup, I setup an account with click2pay. They are still operating and I'm using them for the time being, but I'd be lieing if I said I was confident they'llb e around long.

[1369]

Interesting interview on FSR this morning about Netteller. Neither one of the two guys for Netteller have never had an office in the US (They're Canadian) and the whole operation is based out of the UK which regulates them heavily. The guy on FSR (Forgot his name, but he does consumerbets.com) said he sees Netteller fighting heavily on the charges.