It wasn’t just the severity of Afridi’s punishment that prompted US politicians to express their outrage by cutting Pakistan’s allowance. In US eyes, Bin Laden’s killing was an unqualified good; as an alleged ally, Pakistan should be celebrating along with the US, not imprisoning someone who may have helped achieve this result. This US reaction is predictable, even more so considering it’s an election year. But the Pakistani reaction to Afridi’s alleged involvement in the Bin Laden killing is equally predictable, if you stop to think about it.

Consider the continued presence on US soil of Cuban-born former anti-Castro CIA asset Luis Posada – a chief suspect in the explosion of a Cuban airliner in October 1976 that killed all 73 people on board plus bombings at Havana hotels in September 1997 that killed one man and injured 11 more. Imagine Cuba’s elite ‘Iguana Team Six’ commando unit slipping into Miami one night, putting a bullet through Posada’s eye then slipping back out of the US as quickly and clandestinely as they entered. Imagine Raul Castro going on Cuban TV and announcing this operation’s success, followed by images of throngs of Cubans dancing in the streets, waving Cuban flags and high-fiving each other. Now imagine the US discovered that one of their own citizens in Miami had assisted the Cubans in some small way. Would you expect the US to (a) look the other way or (b) hang a new nameplate on a door in Guantanamo?

THE WRONG SIDE OF HISTORY
It may not seem obvious, but there’s a parallel to be drawn here between Pakistan’s prosecution of Afridi and the US prosecutions of international online gambling companies over the past decade or so. Rightly or wrongly, Pakistan feels the Bin Laden raid’s explicit violation of their territorial sovereignty by a foreign power made them look militarily and politically impotent in the eyes of their own citizens as well as on the world stage. Again, rightly or wrongly, Afridi’s prosecution seems an obvious attempt by Pakistani authorities to reassert their claim to represent the ultimate authority in Pakistan.

Now consider the US online gambling situation. Despite what US authorities may have wished, large numbers of US citizens chose to bet with these companies, which were operating with the full legal blessing of their home jurisdictions. When US media outlets began accepting more and more of these companies’ advertising dollars, and US bettors’ unwillingness to obey the authorities’ wishes became more and more public, the authorities felt compelled to act. Each of the above scenarios represents a publicly embarrassed government punishing what many consider to be an innocent party in order to save face both domestically and abroad.

It’s clear the US felt justified in taking its action against Bin Laden – and much of the world agrees with them. It also appears increasingly likely that Afridi may not have known all that much regarding the ultimate aim of the CIA operation in which he was involved, making the US protests on his behalf that much more appropriate. Pakistan may eventually come around to the belief that – in Afridi’s case, at least – they’ve taken a stand that will be viewed as being on the wrong side of history. The US is expected to soon allow domestic companies to offer the same type of online gambling services it has long prosecuted foreigners for providing, which would suggest that – in the case of online gambling, at least – it was they who have been on the wrong side of history.

888 Holdings

A temporary injunction that prevented talks between Maltco Lotteries and the Lotteries and Gaming Authority (LGA) has been lifted. Malta Today report the injunction, which was pushed for by Betco, was lifted after finance minister Tonio Fenech and LGA chief executive Reuben Portanier issued certain assurances. “Under oath” both Fenech and Portanier told the court that Maltco’s licence will give exclusivity to them for just three games: Super 5, Lotto and the National Lottery. The judgment also means exclusivity cannot be extended to any other games and the court promised that Betco will suffer no future prejudice.

Sports betting site Pinnacle Sports are the latest to be licensed by the Alderney Gambling Control Commission (AGCC). Their category 1 licence was awarded earlier this week and means the popular sportsbook is now licensed in two jurisdictions – the other being Curacao. SportsbookReview report the company will be offering various different tennis odds, including alternative markets, as well as odds on a wide range of South American soccer leagues.

Faster than you could say ‘Shazam!’ (look it up, kids), Christie called a press conference in front of Resorts Casino in Atlantic City for Thursday afternoon, at which he declared New Jersey would forge ahead with its plan to offer sports betting to customers at AC’s dozen casinos and the state’s four racetracks. “It will be another exciting way to add to the experience here in Atlantic City, and I know this is something people have been waiting for for a long time.” Christie said the plan should be up and running by the time the National Football League kicks off its new season in September, adding that “if someone wants to stop us, then they’ll have to take action to try and stop us.”

Christie’s announcement effectively dares the NFL and/or the federal government to seek an injunction to block New Jersey’s move, meaning the opposing sides will likely end up in court sooner rather than later. But Christie said he had “every confidence we’re going to be successful.” Apparently caught off guard, Lesniak told NorthJersey.com’s John Brennan that he didn’t know “why it happened just now, but I’m glad to see the light at the end of the tunnel.” And then we assume Lesniak went off and tested out his new magical powers of persuasion by ordering Donald Trump to take that damn thing off his head already.

Atlantic City casino execs – always desperate for additional revenue streams – also expressed their support for Christie’s stance, although some were adopting a wait-and-see stance before converting their buffets into sportsbooks. Tropicana Entertainment president Tony Rodio told the Associated Press he loved “the idea of playing offense and having the federal government to play defense against us. But I don’t know who’s going to want to be the first to open knowing they can shut you down.”

During one conversation, reported by Philly.com, Joseph Graziano, the purported owner of Beteagle.com, said: “If at the end of the year I can make two million and I gotta give away, like four or five hundred thousand … that’s a million and a half, you know. … My money.” This was before he admitted to hiding money “in the bushes” in order to avoid tax.

Mob members in the state have used bookmaking to raise cash for some time and the main difference with this case is they got with the times by moving operations online. Michael Ward, the FBI agent in charge of the Newark office, explained that it “demonstrates an evolution and increased sophistication” to their money making efforts. Meanwhile New Jersey U.S. Attorney Paul J. Fishman described it as a “new wrinkle” to what was one of their traditional money making ventures.

Another case that could be linked is being heard in a district court in Springfield, Missouri where the main defendant entered a guilty plea after reaching a plea agreement. Kenneth B. Lovett, 72, changed the plea late last week as he answers a single count of transmitting wagering information over the Internet. Joplin News report that both Lovett and his co-defendant William Lisle, 57, paid two Costa Rica based sites to handle their site. The names of the sites were GOTOHC and BETEAGLE, according to the article, and it would suggest that Lovett and Lisle are linked to the aforementioned case.

The plea bargain reached by Lovett states: “Lisle and Lovett’s gambling operation flourished when they began using the offshore gambling website in 2006. Their number of customers and the amount they wagered increased. One gambler would wager as much as $35,000 a weekend during football season.”

It still remains to be seen whether there is any link between these two cases and it could just be in the name. If they are linked then it begs the question as to how far the Beteagle net was cast.

The Administration understands that many Americans engage in paid online poker games for entertainment purposes. Online gambling on sporting events or contests violates federal law. The legality of other forms of online gambling is dependent upon the law of the states where the bettor or gambling business is located. It is left to each state to determine whether it wishes to permit such activity between its residents and an online poker business authorized by that state to accept such wagers, but online gambling that is not authorized by state law may also violate federal statutes.

The response then cited a laundry list of the usual clichés about the supposed predatory dangers and threats to national security made possible by online gambling, before concluding with a statement that the Obama White House was “open to solutions that would help guard against the use of online gambling sites as tools for conducting illegal activities or preying on unsuspecting individuals to the extent that online gambling is permitted.”

The response largely echoes sentiments expressed in the Department of Justice’s late-2011 opinion that the 1961 Wire Act addressed only sports betting and that the legality and availability of other forms of online gambling were decisions best left to individual states. All of which would suggest the huge sums various companies have spent lobbying the feds on this issue have ultimately been in vain. However, the (deliberate?) vagueness of the feds being “open to solutions” on illegal activities and consumer protection will give backers of federal online poker regulations cause for optimism (misguided though it may be). In other words, the White House response failed to definitively un-muddy the waters, and both federal proponents and their state-by-state counterparts will read into it what they want to read. But in the end, only one of these positions can be right, and the smart money is on the states.

In case you’ve been living under a rock, former Wynn director and single largest shareholder Okada was ousted and his shares were forcibly redeemed at a discount in February following allegations that he’d lavished inappropriate gifts on Philippine gaming regulators to smooth his bid for a Manila resort casino license. Arguing against Okada’s request on Thursday, Wynn lawyer James Pisanelli claimed Okada was “struggling and grasping at straws and hoping and praying that he can find something in the ledger, something that someone did in Macau that is like what he did in the Philippines.”

While all this was going on, Los Angeles Superior Court Judge Joanne O’Donnell rejected a request by soft-porn producer Joe ‘Girls Gone Wild’ Francis to dismiss the defamation lawsuit filed against him by Steve Wynn. The high-profile pair have been waging a multi-year, multi-jurisdictional legal war that began when Francis couldn’t/wouldn’t make good on a $2m casino marker. Wynn’s defamation suit resulted in part from Francis’ claim that Steve had threatened to bonk him over the head (Francis’ least vulnerable spot) and bury his body in the Nevada desert. LAist.com reported that O’Donnell also authorized Wynn’s legal eagles to peruse Francis’ financial statements to determine whether the pervy producer has attempted to hide assets to avoid paying the $7.5m judgment Wynn was granted in February.

To alleviate constitutional concerns, both versions of the online gambling legislation would require online gambling servers to be located in Atlantic City, but the two bills differ greatly on the tax rate that will be applied. AC casinos currently pay 8% tax on gaming revenues, plus 1.25% to AC’s Casino Reinvestment Development Authority (CRDA). The Senate bill would impose a 10% tax on online gaming revenues, while the Assembly version is much harsher – 20% of revenues plus 5% to the CRDA. Sen. Ray Lesniak, one of NJ’s chief boosters of online gambling, warned the committee that too high a tax rate could make it difficult to form interstate compacts with states that imposed lesser tax burdens on their licensees.

A number of other stakeholders appeared before the Assembly committee to voice their support/concerns. The Casino Association of New Jersey’s Robert Griffin backed the bill, while state horseracing lobbyist A.J. Sabbath was agin’ it because he claims it would unfairly compete with online horse betting. Similarly, the lone ‘no’ vote on the committee came from Assemblyman Ralph Caputo, who voiced his displeasure that the legislation would preclude state racetracks from joining in the online gambling fun.

OH, RIGHT… IT’S AN ELECTION YEAR
Assuming both state bodies can resolve and pass their respective legislation before their summer break begins in July, the question switches to whether or not Gov. Chris Christie will sign it into law. Legislators have extensively revamped their bills to remove the offending bits that caused Christie to veto similar legislation last year, but Lesniak made headlines earlier this week when he suggested the Republican governor was waffling on the online gambling issue over concerns that Las Vegas Sands chairman Sheldon Adelson – a staunch opponent of online gambling and a major GOP backer – might retaliate by keeping his wallet in his pocket during the US federal election campaign.

Lesniak’s Christie comments were rubbished by iMEGA boss Joe Brennan Jr., who tweeted that they were “untrue & not supported by anything the Gov or his people have said.” But Lesniak has doubled down on his beliefs, telling PokerNews that Christie “certainly is wavering in his support and it is my belief that it is because of presidential politics.” Christie may also be keeping his options open in case GOP presidential candidate Mitt Romney taps the NJ guv as his running mate. In February, Romney told the Las Vegas Sun’s Jon Ralston he was opposed to online gambling. “I don’t want to increase access to gaming. I feel that we have plenty of access to gaming right now through the various casinos and establishments that exist.”

Romney would prefer to spend his summer attacking President Barack Obama on economic matters, but Obama’s “I support gay marriage” media bombshell on Wednesday suggests the 2012 campaign may (once again) be fought over social wedge issues – a category under which online gambling presumably falls. Watch this space…

“Christie is putting the future of A.C. in jeopardy because of his overriding concern for support from [Sheldon] Adelson, a right-wing money machine of Newt Gingrich and right-wing causes; Caesars, a huge contributor based in Nevada; and Woody Johnson, Jets owner and NFL opponent of sports gaming,” said Lesniak in an email sent after a meeting with key Christie staff.

Closer to gambling’s home in New Jersey is Chris A. Brown (R-Atlantic City) who contradicted Lesniak’s comments, saying: “It is my understanding that Gov. Christie supports intrastate Internet gaming. Namely, he wants to make sure we get it right.

“Obviously, this is a great opportunity for New Jersey to create new jobs and new economic activity.”

Many will point to this simply being a case of political mudslinging as the two sides of this debate are from America’s largest political establishments. It would be no surprise were the legislation to be delayed until after this November’s election. Delays will impact on the state losing the first-mover advantage and IMEGA’s Joe Brennan Jr was only too clear as to what effect this would have.

“One of the ways to recapture this [gaming] revenue going across state lines is to offer it online in-state as a competing product. If New Jersey continues to lag in passing this legislation, they’re giving up the opportunity to become the Silicon Valley of the online gaming industry in the United States.”

The longer this bill takes to pass the longer, in the view of some, the decline of Atlantic City’s casino business will last. In an election year it could be that it’s delayed until 2013 and how damaging an effect that will have is currently unclear.

Another bill is in the pipeline that would see Internet wagering allowed at Atlantic City casinos. John J. Buzichello, Vincent Prieto and Ruben J. Ramos Jr. sponsor A2578 and it would allow patrons to play a number of games inside venues. Chris Krafcik from Gambling Compliance explained in a tweet: “For perspective, S1565, the Senate companion to A2578, has already passed the Senate Budget and Gaming Committees. #NewJersey #gambling”. The new bill will be heard on Thursday at 10am ET by the Assembly Gaming Committee.

In mid-April, Antigua Prime Minister Baldwin Spencer met with US Trade Representative Ron Kirk to discuss the case. Spencer said Antigua’s online gaming industry had been “decimated by the actions of the United States and we believe that we must be fairly compensated for those losses.” Spencer said there had been “no fairness in the proposals received from the United States to date” but Kirk assured Spencer that the US “remained committed to working with Antigua and Barbuda in finding a solution to the case.”

In a subsequent hearing at the WTO, Antigua presented a letter detailing their frustration with the apparent unwillingness of the US to present any concrete plan designed to bring the dispute to a satisfactory conclusion. The US responded by blaming the lack of progress on Antigua. On Wednesday, Antigua’s legal advisor Mark Mendel told the Antigua Observer that the US statement was an “unfortunate” attempt to give the impression that Antigua had been “very intransigent and demanding and refusing to compromise … where the opposite is really the truth. We have been very open and very willing and very, very forthcoming; we have never refused to do anything. Really what they want us to do is drop the case and go away. Win and then lose.”

Mendel also took issue with the US statement on the WTO website that Antigua’s version of events “did not reflect history or reality.” Mendel called this argument “particularly misleading … We have been fair, honest and open and they have been unwilling. It takes two people to negotiate.” To underscore this point, Mendel pointed out that Antiguan representatives have made over a dozen trips to Washington trying to negotiate a settlement, while the USTR has visited Antigua just once.

Mendel says not only is the US “not really negotiating, but they are continuing to aggressively violate their WTO agreement” by bringing prosecutions against Antigua-based online gambling operators. “There is no other WTO member in the world that puts people in jail for conducting lawful trade … It really is particularly egregious, I think, because we have a very clear decision in our favor saying that we are entitled to do that.”

The ruling has sparked optimism among other other Florida facilities looking to add slots to their operations. Voters in Gadsden, Hamilton and Washington counties have already approved referenda that would allow the addition of slots, but state Attorney General Pam Bondi issued a ruling in January declaring these referenda illegitimate. Following news of the Supreme Court ruling, the state Department of Business and Professional Regulation told News-Press.com they would respect Bondi’s opinion and decline to issue any slot licenses based on these counties’ referenda. Meanwhile, Hialeah plans to launch 950 slots and 30 poker tables by March 2013.

Florida’s Seminole Tribe has yet to comment on the ruling, although expansion of slots outside Miami-Dade and Broward counties could fall afoul of the 2009 compact the tribe signed with the state. Under the terms of that deal, the Seminoles contribute $150m annually to state coffers. The Seminoles played a vocal role in helping to kill Florida’s recent push for destination casinos because they felt they were being sidelined in favor of companies like Las Vegas Sands and Genting. (It didn’t help that the backers of the casino bills called the Seminole’s compact “not worth the paper it is printed on.”) Casino proponents are choosing to interpret the Supreme Court’s ruling as handing sole responsibility for gaming decisions back to the state legislature, meaning the issue may return to the fore quicker than previously expected.

The new amendments mean that government agencies can now use the shared information for the “investigation and prosecution of cybersecurity crimes”, the “protection of individuals from the danger of death or physical injury” and the “protection of minors from physical or psychological harm”.

Originally it was only cases where “cyber security” and “protection of national security” was threatened and the new measures aren’t likely to please the act’s detractors. They will be slightly heartened by the agencies not being allowed to use library, medical and gun sale records, tax returns and education documents. After five hours of debate, Republican Mike Rogers, chairman of the House intelligence committee, said: “This is the last bastion of things we need to do to protect this country.”

From a gaming industry point of view we can report the Poker Players Alliance didn’t manage to catch the coat tails of this act with a federal poker bill and that will be something that pleases many players.

Those in the Obama camp are safe in the knowledge that it still has to pass the Senate and even then the boss can still veto it. They would prefer a Senate bill that gives Homeland Security the primary role in overseeing cyber security. The argument from this side of the fence is a compelling one with the belief that privacy erosion is not something to be taken lightly.

“In an effort to foster information sharing, this bill would erode the privacy protections of every single American using the internet. It would create a ‘wild west’ of information sharing,” said Representative Bennie Thompson of Mississippi, the leading Democrat on the House homeland security committee.

Even with the new amendments the bill has a large number of grey areas and is a scary proposition for anyone that uses the Internet.

Pechanga.net owner Victor Rocha said the California Tribal Business Alliance (CTBA), the Yocha Dehe Wintun Nation and the Habematolel Pomo of Upper Lake were all opposed to SB1463 passing in its present form. Rocha also said he was told the Tribal Alliance of Sovereign Indian Nations (TASIN) would be putting its objections in writing soon. CTBA chairwoman Leslie Lohse stressed that the tribes weren’t “saying no to be obstinate. [Online gaming] cuts at the core being of revenue and we have to find a way of continuing to put money back into the tribal community.”

The tribes’ principal complaints include the feeling that they haven’t been properly consulted on this issue and that the state is treating them like commercial businesses rather than sovereign entities. Michael Lombardi, chairman of the Augustine Band of Cahuilla Indians’ gaming commission, also questioned the need to include racetracks on the list of eligible online poker licensees. Lombardi maintains that because such facilities currently don’t offer poker or casino games, they “have no reason to be in the internet gaming business.” Lombardi suggested that SB1463 sponsor Sen. Roderick Wright was “throwing a bone to the racing industry” due to the presence of the state’s largest track in Wright’s legislative district.

SB1463’s provision to broaden the online gambling scope beyond poker two years down the line has also united tribes, who see this as a direct threat to their brick-and-mortar bread-and-butter. Lombardi said the online availability of slots, table games and real-money social gaming would create “a huge problem for tribes.” The California Online Poker Association (COPA), which supported Sen. Lou Correa’s SB40 poker bill last year, also has doubts about any legislation that isn’t “poker-only,” but suggested that amendments could change their tune. Any such amendments would have to be accomplished long before the current legislative session closes on August 31.

NEVADA ONLINE POKER LICENSES BY SUMMER?
While California stalls, Nevada continues its slow but steady march toward issuing the nation’s first online poker licenses. On Wednesday, Nevada Gaming Control Board chairman Mark Lipparelli told GiGse attendees that the first licenses could be issued before fall, assuming all goes well at license application hearings currently scheduled for June or July (although these were previously scheduled for May or June). By then, Lipparelli suggested as many as a dozen of Nevada’s 30-odd applicants may be in a position to proceed to the next step of the process: submitting their technology for approval by the state’s independent testing labs.

Lipparelli also used the occasion to restate his preference for a federally legislated online poker regime. As reported by GamblingCompliance, Lipparelli believes the state-by-state alternative would essentially be like herding cats. “Trying to get regulators to cooperate on even the simplest of terms is difficult and to think that there are legislative compromises that must be made in order for online legislation to be passed, once you get past the first or second state partnership, I think you get into a matrix that is almost impossible to solve.”

FEDERAL LEGISLATION MOVEMENT?
After a long period of inactivity surrounding the HR2366 online poker legislation introduced last year by Rep. Joe Barton (R-TX), three new sponsors have added their support. Openly declaring their love of federally regulated poker are Frank LoBiondo (R-NJ), who also backs his home state’s sports betting bid; Mark Amodei (R-NV) and Adam Smith (D-WA). The trio brings the bill’s total sponsor count to 30.

Meanwhile, things may once again be heating up in the Senate. On Wednesday, the Wall Street Journal’s Alexandra Berzon claimed “people briefed on the matter” had confirmed that Senate Majority Leader Harry Reid (D-NV) and Sen. Jon Kyl (R-AZ) are indeed working on online poker legislation. The chalk-and-cheese pair have long been rumored to be collaborating on such a bill, which would legalize online poker but strengthen prohibitions against other forms of online gambling, allowing anti-gambling zealot Kyl (who is retiring this year) to walk off into the sunset with a somewhat clean conscience. However, those same anonymous sources told Berzon it wasn’t clear whether such legislation would hit the Senate floor during the current legislative session.

Before Saturday’s sighting, Tzvetkoff had not been seen in public since his arrest. He was rumored to be in the New York area under some form of house arrest/witness protection along with his family. The Courier Mail reported that Tzvetkoff’s wife, son and baby girl (his wife was pregnant at the time of Tzvetkoff’s arrest) were with him as they took “a leisurely family stroll” down Mott Street in Chinatown.

When approached by the Courier Mail’s reporter, Tzvetkoff initially denied his identity. When the reporter refused to back off, Tzvetkoff told him: “Look, you’re going to get in a lot of trouble. There are people with us who you’re going to be in trouble with.” Asked by the reporter to clarify just who these ‘people’ might be, Tzvetkoff dodged the issue, saying: “Look mate, you’re going to get in a lot of trouble with me right now.” When it became clear that bluster wasn’t going to put the reporter off, Tzvetkoff bundled his family into a taxi and made his getaway, but not before the reporter snapped the picture seen at right.

If, as Tzvetkoff claimed, there were ‘people’ shadowing his family on their stroll, the Courier Mail made no mention of being subsequently approached by anyone claiming to be some kind of authority. It remains unclear just how short a leash the US attorneys are keeping on Tzvetkoff. All we really know is that New York City’s thriving pigeon population has increased by at least one.

But Campos’ sweetheart deal hit a snag when Judge Lewis Kaplan questioned its leniency. Kaplan pointedly asked prosecutors whether they were “basically walking away” from the case, and prosecutors admitted they had genuine concerns about their chances in front of a jury, especially given the DoJ’s recent about-face on the applicability of the Wire Act towards online poker. There was also the concern that a ‘not guilty’ verdict may have jeopardized future trials of the other, more senior, Black Friday figures. Unconvinced, Kaplan ordered prosecutors to submit a written argument in favor of the deal.

US Attorneys Preet Bharara, Arlo Devlin-Brown and Andrew Goldstein duly put pen to paper, claiming that Campos’ involvement was “relatively minor” compared to some of the other indicted figures. The feds also suggested that the sentencing guidelines for the lone misdemeanor charge were about the same as the original felony charges. Kaplan appears to have bought into this argument, and Campos now faces a maximum of six months in jail when sentence is pronounced on June 27.

Also not expecting quick action on the online poker front is Rep. Barney Frank (D-MA). In an interview with PokerNews’ Matthew Kredell, Frank said he doubted poker legislation would pass at the federal level during the current legislative session. “I’d like to do it but I’m not optimistic. It’s still possible. [Sen. Harry] Reid wants to do it. A lot of people here want to do it. It might get done in the lame duck [session between the November election and the New Year]. It could get done as part of an overall package. But I think other things will replace it.”

Frank painted a dire picture of the competing forces at work on Capitol Hill. The Department of Justice’s pre-Christmas flip-flop on the Wire Act had alerted federal lawmakers to the potential “threat of different states doing different things. The chaos inherent in that is a good argument for legislation.” But obstacles to legislation remain in the form of Indian tribes and traditionally anti-gambling Sen. Jon Kyl (R-AZ). While Kyl was said to have undergone a ‘road to Damascus’ conversion on the gambling issue, Frank says Kyl’s position is more nuanced. Unlike most online poker backers, Kyl remains opposed to adding a revenue component to any online poker bill, lest it be interpreted as the government encouraging more people to gamble.

According to Frank, who like Kyl, is not seeking re-election this fall: “We might have to wait until Kyl is out of office for this to get done.” But Frank’s been around Washington long enough to never say never. Frank feels that the best hope for online poker lies in the Senate. If legislation passes there, Frank’s convinced the House will go along. But that’s a big ‘if’, considering Frank’s view of the playing field. “The Senate’s got a lot of problems these days.”

The Alderney Gambling Control Commission (AGCC) has announced a public hearing into the fate of the new Full Tilt Poker. The licence application, made by Orinic Limited, will learn its fate at the Braye Beach Hotel in Alderney on May 3, 2012 at 2 p.m. local time and if approved it will mean the company could return to the world of online poker. The AGCC statement was as follows:

In the matter of an application by Orinic Limited for a Category 2 eGambling licence, TAKE NOTICE that the Alderney Gambling Control Commission, pursuant to Section 4 of the Alderney eGambling Ordinance, 2009 and Regulation 23 of the Alderney eGambling Regulations, 2009, will hold a public hearing at which oral representations may be made.

It will bring back memories of the last time the AGCC had a hearing regarding the firm last year when deciding if the firm’s licence should be revoked. That eventually became a private hearing. This time is unlikely to be anywhere near as controversial and it not being in London means there are likely to be less people attending.

Plans to change the UK remote gambling taxation system from point of supply to point of consumption were officially confirmed in George Osborne’s budget last week.

While this did only confirm what we essentially already knew it doesn’t change the fact that it spells trouble for offshore jurisdictions which are currently home to UK-facing operators. These jurisdictions have received positive assurances from the Department of Culture, Media and Sport with regards to their position plus some operators such as 32Red, Betfair, William Hill and Coral are among those that are very unlikely to leave their offshore locations for the foreseeable future.

However, it’s hard to see how the offshore jurisdictions will be able to maintain their current position with the industry once the incentives for operators to be there no longer exist. If they wish to remain in iGaming these jurisdictions will have to look for other ways in which they can succeed in this area.

One offshore jurisdiction which appears to have such a plan firmly in place is the Isle of Man (IOM). Ray Davies is eGaming development manager for the Isle of Man Gambling Supervision Commission and he explains that the Commission is confident of retaining iGaming business in a new regulatory system, He says: “The Isle of Man will still have a very good story to tell. Basing in the Isle of Man will still have a benefit for those companies seeking to adopt a UK license, in terms of reduced compliance effort and possibly even fees.”

But there will be much more to it than that with offshore jurisdictions not only having to compete against each other but against mainland UK again. In order to do so Davies admits that it’s going to be a case of adapting as quickly as possible to a fast paced industry.

“As the eGaming industry continues to grow and mature, the Isle of Man will continue to seek ways in which to make our licenses fit the operators’ needs too – from those operating regionally to those who have a global presence.”

These ways will come in numerous forms with a couple of them already currently on display. One of which is the new network service which was launched by the IOM Commission. This is a service which has already attracted a large number of well known operators who are already operating successfully.

Davies explains: “Our new Network Service Licence gives Isle of Man based companies the opportunity to make their platform available to business customers around the world”.

“ONEworks became the first company to gain the licence at the end of last year, and its creation demonstrates how we can keep pace with the dynamism of the eGaming industry without making licensing too complicated. It’s another step forward in making access for our companies to the world’s markets even greater and easier.” 

Another way that is becoming an increasingly important part of iGaming is testing. As  established companies can ill afford to launch products that are soon found to be faulty the need to try them out in a contained environment is imperative.

In days past it was conceivable to push products live in a soft way and fix bugs they go. However the new era of professionalism means that not only do users expect more but so do the creators themselves.

This is an area that the Isle of Man appears well positioned to exploit. The island is currently home to a large number of testing houses. In these houses the latest and greatest live dealer and gaming software is put through its paces.

As in the more general aspect of acting as an iGaming jurisdiction, providing successful testing facilities will come down to being able to keep up with the industry. Davies explains: “Because of the pace of development – particularly software development – we rely on the test houses to stay abreast of the latest innovations and to develop satisfactory tests to make sure that the games are still fair.”

The testing measures described by Davies are extremely rigorous. Which they must be in order to be regarded as an international hub for iGaming. But despite what appears to be a very high quality testing set up, Davies believes that the IOM have no particular advantage in this area.

“Most jurisdictions that do publish standards say pretty much the same thing,” he says.

“As an example, our regulator commissioned a test house a few years ago to appraise the gap between another jurisdiction’s requirements and our own. They concluded that while the regulations vary dramatically in tone, they are essentially compatible with a few tweaks.” 

As well as the aspects listed above there are obviously many more benefits for iGaming companies to place themselves on the Isle of Man. Not least the flexibility offered by their global license which allows companies to retain this and then gain other licenses for specific markets. 

Whatever the IOM Gambling Supervision Committee has been doing in recent years it appears to have been working. The jurisdiction is home to iGaming giants such as Microgaming, Pokerstars, Paddy Power, SBO Bet and many more. With this amount of iGaming talent on the island there is an incredible amount of new technology created. So are there any products or companies that have particularly stood out?

He says: “Aside from the dominant players such as Pokerstars, SBO Bet and Paddy Power I would say that Mahjong Logic’s offering is the most exciting and the offerings from Microgaming and Edict are first class.”

The European Betting and Gaming Association (EGBA) has published a five point plan for the future of responsible online gaming on the continent as part of a new manifesto. The five points are as follows:

1. The European Commission fulfilling its role as Guardian of the Treaty

2. Structured regulatory cooperation among national authorities

3. An EU legal framework for online gambling

4. Problem gambling prevention measures based on evidence

5. EU action to fight sport fraud

The release comes ahead of the European Commission’s next meeting with gambling regulators in order to discuss EU-level cooperation. Secretary general Sigird Ligne commented: “We are calling for the introduction of European rules to ensure proper protection for consumers while affording fair and transparent licensing conditions for EU operators.”

Austrian restrictions on gambling industry advertising have been deemed “discriminatory” and represent a “potential hidden total ban on cross border advertising”. The ruling was made by the European Union Court of Justice’s Advocate General (AG) Mazak and EGBA Director for Regulatory Affairs Maarten Haijer added: “We welcome AG Mazak’s opinion also for pointing out that the actual level of protection provided by the operator should be considered. All EGBA members comply with the agreement on Responsible Remote Gambling Measures that was agreed in the context of the European Standardisation Committee.” The opinion doesn’t mark the end of the debate on this issue and the court will make its final ruling before the summer.

GIVE ME 10 POUNDS OF TOMATOES AND 500 ON MAN UNITED
Still in Singapore, an illegal football bookie spared the state a trial by pleading guilty to 11 counts of online sports betting naughtiness. District Court Judge Wong Peck sentenced vegetable seller Goh Weng Soon to a year in prison and fined him $390k, although Goh’s inability to pay the fine will add another 19.5 months to his stint behind bars. Goh claimed he was a part-time bookie for two years after being recruited by a Malaysian operator.

Goh’s customers placed their bets online, then they’d settle up in person every Monday and Goh would drive to Johor Baru in Malaysia to drop off the balance (minus his commission). In the five weeks preceding his arrest last spring, Goh handled $288k worth of wagers, on which his commission would have been $80k. Goh was carrying the especially good final week’s worth of wagers ($146k) when he was arrested. Police found another $10k at Goh’s flat, but he claimed that was the entirely legal proceeds from produce sales at his market stall.

HAVE CASINOS, WILL TRAVEL
In a recent Reuters article, Caesars Entertainment’s president of international development Steven Tight said Singapore had “provided a very good template for emerging jurisdictions to liberalize gaming entertainment.” Just last month, Vietnam’s finance minister traveled to Singapore to study the city-state’s approach to sports betting. But Vietnam is unimpressed by Singapore’s approach when it comes to local residents’ access to the casinos. Singapore residents are required to pay a stiff entry fee, but they’re at least allowed that option. Vietnam is looking to develop a few resort casino projects of its own, but politicians are adamant that locals won’t be allowed inside.

That’s bad news for the estimated 3,600 Vietnamese gamblers who cross the Cambodian border every day looking for more hospitable facilities. Despite the reported dangers of such visits, Vietnam’s Ministry of Public Security reported that the number rises to 5,000 on weekends. Tuoi Tre News quoted the Criminal Police Department as saying the Cambodian casinos employ traveling marketers to drum up business in both rural and urban areas of Vietnam. These marketers even arrange transportation to the casinos (junkets on wheels). Nationwide police stats show a 10% increase in the number of gambling prosecutions in 2011. Expect that number to keep growing unless Vietnam starts treating its locals with the same respect it plans to show tourists.