Tips2Play

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The United States government is trying to deter people away from online casino gambling. Certain politicians, such as Rep. Barney Frank, realize the need to regulate an industry that could bring in billions of dollars.

Any politician who is opposed to what the expanded legalized gambling can do economically for the country, need look no further than casino gambling figures released by the American Gaming Association that were released Wednesday.

The report indicated that nearly twenty five percent of Americans visited a casino in 2007. It also revealed that those gamblers lost $34.1 billion. That figure is up almost seventy five percent from ten years ago.

Individual states are coming around to the idea that gambling revenue can help make up for budget deficits. Many states have legalized casino gambling in the past several years, with many more at least discussing the issue.

In Washington, however, the government is trying to keep online casino gambling from being regulated. They are putting restrictions on banks from dealing with online gaming operators, and are handcuffing these financial institutions.

Frank has introduced a Bill that would start the process towards regulating the industry. Money that could be generated for the government could be used for better health care, and the creation of jobs for struggling Americans, among other things.

AGA Chief Executive, Frank Fahrenkopf, echoed the sentiments of many Americans, “In looking at the last decade, it is evident that we are not only an economic force on a national level, but that we are major players in the local communities where we provide steady jobs and economic development.”

KENT, Wash.– Online gamblers are vowing not to fold after a King County Superior Court judge on Thursday upheld a state law that makes internet gambling a Felony, punishable by up to five years.

Poker players protesting outside the courthouse call that ridiculous.

“We’re good people. I mean, we’re trying to have some fun, engage in a game of skill,” said gambler Andy Weber.

The law, signed in 2006, is a Class C felony, making it equal to torturing an animal or making threats against the governor. At the same time, games like the state lottery and taxable casinos remain legal.

Judge Mary Roberts upheld the law and rejected the argument that it is unconstitutional.

“The vast majority of Washington citizens have no objection whatsoever if their neighbor, co-worker, relative is playing poker on the internet from the privacy of their own home,” said Lee Russo, attorney for Poker Players Alliance.

Officials at the state gambling commission who support the law say it was designed to stiffen penalties against the online casino operators and that nobody is planning to arrest gamblers. The commission wants people to realize that placing bets through unregulated, offshore casinos is far too risky.

“You don’t know who’s behind that screen. You don’t know if the games are unfair or honest. You don’t know if you will get paid your winnings,” said Susan Arland, Washington State Gambling Commission. “Also, by disclosing information that should be secure, you could be the victim of identity theft or credit card fraud.”

Opponents say the law is the stiffest in the nation and they do plan to appeal, but with only 30 percent of cases overturned on appeal, the odds are against them.

AFTER MAKING ONLINE GAMBLING illegal in Holland last month, Dutch authorities, on a roll, have now ordered Dutch banks to stop servicing illegal Web casinos.

The move was confirmed by a not particularly mellow Justice Ministry spokeswoman, who also noted that banks in Holland had been asked to freeze financial services to between 30 and 50 illegal gaming companies, of whom Unibet (a Swedish company) and Holland’s home-grown Oranje Casino were but two.

Much to Brussels’ chagrin, Holland is still holding out against EU efforts to push online gambling to its citizens, in a bid to promote increased market competition. The British have already opened up to almost every kind of online gambling, but the Netherlands has long held out, allowing only the national Dutch lottery to offer cyber gaming.

Last month a bill that would have allowed gaming operator Holland Casino to open a gambling web site on a trial basis was smacked down in a tight 35-37 vote by Holland’s upper house, even after the lower house had passed it back in 2006.

Holland says it’s worried about the potentially detrimental effect of gambling addictions on its population, who have access to all the legal marijuana and prostitutes they can stomach. The government isn’t worried about them getting addicted to drugs or sex apparently.

More likely, the Dutch government is concerned that the lucrative online gaming industry, which Merrill Lynch has estimated could reach $48 billion by 2010, would be a blow to state betting monopolies which would probably lose money as a result.

The Justice Ministry spokeswoman also told Reuters that files on illegal gambling firms were being drawn up in order to pass them round to the public prosecutor who would bring them to court. If that isn’t pointing the Dutch finger, then what is?

Calvin Ayre, the famous founder of Bodog online casinos, has decided to retire, having already sold off most pieces of his empire. Most of Ayre’s recent work has been as the face of the company, selling his image as a playboy living the life of luxury.

Ayre sold the North American brand of Bodog to Morris Mohawk Gaming Group, located outside Montreal in the Indian territory of Kahnawake, last year. An operational team of executives has been put in place to run Bodog’s European and African casinos, and to follow up on plans for South American expansion.

Ayre has promoted his image as a charming pirate, but many view him as more of a true scoundrel. He avoided prosecution in a marijuana smuggling case which sent his father to jail years ago, but questions of his involvement remained. Further, an insider trading scandal caused him to effectively be banned from doing business in British Columbia.

Since riding the crest of the online gambling craze, Ayre has made headlines for continuing business in North America when many other didn’t, and for flaunting his wealth a la Hugh Hefner or Richard Branson, traveling with a squad of Bodog Girls in private jets to tropical paradises.

Ayre says his retirement is designed to allow him to live a quieter life at his home in Antiqua, and to promote his charitable eponymous foundation.

The day may still come where Ayre wishes he had not so frequently thumbed his nose at the U.S. Justice Department. Even though the laws against online gambling may hopefully soon change, government agents have long memories and would love to prosecute Ayre for his actions when the law was not favorable.

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WASHINGTON, D.C. — The much anticipated House subcomittee hearing finally allowed banks to voice their concerns with the UIGEA, an extremely unpopular piece of legislation. Banks were given a rare chance to openly and democratically discuss the issues. For those outside of the banking industry, it shed light on the difficult reality US financial institutions are facing.

“The federal government couldn’t stop Americans citizens from betting at offshore casinos, so they decided to put the burden on the banks”, said Casino and Gaming industry editor, Lee Rockwell.

Banks in the US are faced with confronting illegal internet gambling. They must decide which transactions are illegal and cancel the credit, performing the job of a web rent-a-cop. This task may seem pretty simple to those outside of the financial industry, but anyone who understands the ease in which companies can mask their products and services, knows stopping internet gambling automatically is next to impossible.

“You can’t simply write a program that can filter out online gambling transactions. In order to block these offshore casinos, you would need to manually authorize every transaction by contacting the seller”, says Rockwell.

There are simply too many ways that a transaction can be disguised.

Many in the online casino industry were very happy with the events. The heated discussion brings the debate into the mainstream, something Congress would not allow before secretly attaching the bill to a must-pass piece of legislation back in 2006.

“The banks have finally gotten their chance to speak, now its time for the US government to swallow their pride and create better regulations that will actually help US citizens and businesses”, he added.

Canadian gambling software developer Chartwell Technology has announced a deal with Spielbanken Niedersachsen GmbH (SNG) to develop Germany’s first legal online casino operation.
SNG is the Government-licensed and regulated casino operator for the northern German Federal State of Lower Saxony and stated that it is launching the virtual venture to complement its existing land-based operation.

Calgary-based Chartwell said that the five-year agreement calls for the launch of casino and soft games followed by, subject to German law, additional gaming products to SNG affiliate companies. It stated that an online casino utilising Flash technology would be launched early next month with a preview currently available at CasinoLand.de.

‘We are delighted to provide our gaming system for SNG’s launch into online gaming,’ said Darold Parken, President and Chief Executive Officer for Chartwell.

“We have gained an exceptional industry partner with a well established gaming business, helping to ensure our future growth in the key regulated German market.

‘Chartwell went through an extensive vetting process to win this contract with SNG. Our software and people passed the test and we are extremely excited with the opportunity to work with SNG in this growing gaming market.’

‘We shall be launching Germany’s first legal virtual casino and are required by law to ensure the highest standards of security,” said Rainer Chrubassik, Chief Executive Officer for SNG.

“With Chartwell as our partner we can fulfil our obligations in this respect while, at the same time, offering an outstandingly attractive range of products. The intense process of system implementation has been a great challenge to all of us but one we have succeeded in mastering. The project is unique in Germany and will point the way for future developments.’

Saxony-licensed online casino operator chooses Canadian gambling software

One of the German states will soon have an online casino operation up and running. Calgary-based online gambling software developer Chartwell Technology has revealed that it has been successful in clinching a deal with Spielbanken Niedersachsen GmbH (SNG), the exclusive Lower Saxony state licensed and regulated casino operator, for an online gaming system.

SNG plans to launch its Internet gambling venture to complement its existing landbased business. The agreement is for five years and calls for the initial launch of both casino and soft games, with provision for the roll-out of additional gaming products to SNG sister companies as and when locally permissible in Germany. The launch of the Flash technology casino is scheduled for early next (May) month, with a preview currently available at www.casinoland.de

Owned by leading international gaming operator Casinos Austria International, which itself has been involved in online poker development with Sweden’s Svenske Spel and Boss Media recently (see previous Online-Casinos.com/InfoPowa reports), Spielbanken Niedersachsen has been providing games of chance to the people of the German Federal State of Lower Saxony for almost 20 years.
Last year SNG’s gross win exceeded Euro 94 million. The company holds the exclusive state license to offer internet gaming to the residents of Lower Saxony, the second largest German state, with a population of 8 million inhabitants.

“We are delighted to provide our gaming system for SNG’s launch into online gaming” said Darold H. Parken, President and CEO of Chartwell.

“We have gained an exceptional industry partner with a well established gaming business, helping to ensure our future growth in the key regulated German market. It has always been our strategy to align Chartwell with blue-chip licensed operators, and in SNG we have a perfect example” Parken said, adding: “Chartwell went through an extensive vetting process to win this contract with SNG. Our software and people passed the test and we are extremely excited with the opportunity to work with SNG in this growing gaming market.”

Rainer Chrubassik, CEO of SNG commented: “We shall be launching Germany’s first legal virtual casino, and are required by law to ensure the highest standards of security. With Chartwell as our partner we can fulfill our obligations in this respect, while at the same time offering an outstandingly attractive range of products. The intense process of system implementation has been a great challenge to all of us, but one we have succeeded in mastering. The project is unique in Germany and will point the way for future developments.”

The advent of the German online casino project will be watched with interest by the European Commission, which has been pressuring Germany and 9 other EU members to open up their online gambling industries to private companies both within the country and in other EU nations.