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.

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24poker

The company that owns 24poker, BPR Ltd, is listed by Companies In The UK as being run from an address in County Durham with one director listed as a Mr A Moody. It’s still unclear as to exactly what caused the license to be suspended and until they divvy up with the KGC it won’t be reinstated.

PokerStars.de is the latest to enter the German football sponsorship market ahead of new gambling industry regulations. Following in the footsteps of Betfair, the global poker behemoth has spray-painted its name in 10-foot-high letters on the side of fourth division side VfB Lübeck’s Stadion an der Löhmuhle. The 18,000 capacity theatre of football becomes the PokerStars.de Stadium and they’ll hope to attract more than the current 2,000 fans to the cavernous venue on a weekly basis. For the duration of the three-year-deal, the club receives €120,000 per season with the option to extend it to 2016.

It’s no coincidence the team is situated in the German state of Schleswig-Holstein – the one Lander that is decided to go its own way with regard to changes to gaming industry laws. It remains to be seen whether changes to UK gambling industry law will lead to similar deals being signed with lower league sides. If Devon and Cornwall decided to develop its own gambling regime then Plymouth, Torquay and Exeter would all be up for grabs.

Changing sports, Boylesports.com has inked a three-year contract with Leopardstown Racecourse. The deal sees the online gaming industry firm become title sponsor of the opening day of the Dublin course’s January Jumps Weekend. Boylesports.com will sponsor the grade-B hurdle at the course and provide a cash bonus of €100,000 should a horse win that and go on to victory in March’s Cheltenham Festival. The same deal is in place on the Boyles’ sponsored grade-two novice steeplechase with the prize a more modest €50,000.

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Unless you’ve had your head buried deep in a prostitute’s vagina for the past six months, you’ll know that the Black Friday Indictments saw the DoJ close down numerous poker websites in the USA on April 15. The DoJ alleged that Absolute Poker, UltimateBet, PokerStars and Full Tilt Poker broke the Unlawful Internet Gambling Enforcement Act (UIGEA) by engaging in money laundering and bank fraud when processing money transfers to and from their customers’ accounts.

Kahnawake Gaming Commission (KGC) released a statement specifying how they had been in talks over the past several weeks with Blanca gaming – who bought out Cereus in August 2010 – in regards to how best to sort out the mess of owing players their money. The statement detailed how “advised of a potential solution” by Blanca Gaming, who promise to liquidate their assets and deliver proceeds to players. KGC state that it’s imperative that the return of US and non-US players’ funds is done  “as quickly and completely as possible” due to such a long wait without any positive developments.

Clearly, the proposed reinstatement of the funds is great news for poker players who have been waiting more than six months to withdraw money from frozen accounts with Absolute Poker and UltimateBet. We’re sure they’ll be eagerly rubbing their hands together right this minute as they anticipate receiving what is due to them. Woohoo! But players shouldn’t get too excited just yet. Obviously it’s great news, but getting the hopes up of those players waiting for what’s rightfully theirs has happened before. Back in May there was talk of an agreement with the DoJ that could result in the refunding of balances…but nope. That didn’t happen. Five months on, will that be the case once again? For the past player’s sakes; we hope not.

The Gaming Commission’s release did also point out that the proposed process has been presented to the United States District Court for the Southern District of New York (SDNY) for their “consideration and approval”. But until anything is confirmed, perhaps players should leave their champagne bottles in the cooler.

Poker News

The Kahnawake Gaming Commision, which recently renewed Full Tilt Poker’s secondary gaming license after FTP’s primary license was suspended by the Alderney Gambling Control Commission, has not been as kind to Galaxiworld.com. A KGC release dated July 29 reads as follows: Following a Show Cause proceeding conducted by the Commission, the Client Provider Authorization held by Telton Limited, operating as GalaxiWorld (www.galaxiworld.com) was revoked, effective July 28, 2011. No further explanation was provided.

Bookmaker.eu is now the operable domain for the company that was originally found via Bookmaker.com, but switched to Bmaker.ag around the time the US Department of Justice decided to ‘borrow’ the .com address on Blue Monday.

Malta-licensed Bet24.com, which recently admitted to having had some of its player data compromised by hackers, has appointed Lars Kollind, co-founder and president of Poker Icons, as poker manager. Bet24 COO Thomas Petersen says Kollind will be responsible for marketing, PR and event activities.

Following a public furor, Sportsbet has backed off its plan to prosecute an Australian gambler who lost $80k in less than a week after the online gambling operator provided him the money to bet on credit. When the unnamed punter couldn’t pay Sportsbet back, the company took him to court and tried to have his house seized. The punter’s mother, who also lives in the house, contacted federal MP Alan Tudge, who went public with the man’s story. Finally acknowledging their no-win PR plight, Sportsbet has agreed to forgive the man’s debt, but Tudge is vowing to press on with his efforts to change the laws allowing Aussie betting outfits to offer credit to punters.

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To maintain a Secondary CPA, a licensee must maintain a valid licence to operate interactive gaming that has been issued by a comparable jurisdiction (the “primary jurisdiction”). Accordingly, the Commission is closely monitoring the proceedings being conducted by the Alderney Gambling Control Commission (the “AGCC”) concerning the eGambling Licences held by Filco Limited, operating as “Full Tilt Poker”. The AGCC has confirmed to the Commission that, although the eGambling Licences held by Filco Limited are presently suspended pending the outcome of a hearing, these licences are still considered to be valid.

The AGCC hearing into the operations of FTP was adjourned last week to take place no later than September 15th. The beleaguered poker operator will have to use that period to look to find a party of new investors who are interested in taking on the business.

The release also added:

Presently, Full Tilt Poker is not offering gaming to the public, or accepting player deposits, from servers that are located within Kahnawake or under the Commission’s supervision.

The KGC’s license is one of the best but it’s concerning that FTP can be given any type of license that isn’t contingent on them paying out all player balances. The same goes for Absolute Poker and Ultimate Bet.

Legal News

Since July, 2010, Kolyma Corporation A.V.V. (“Kolyma”), carrying on business as Full Tilt Poker, has held a Secondary Client Provider Authorization, issued by the Kahnawake Gaming Commission (the “KGC”). The KGC issues a Secondary CPA only in cases where an operator holds a valid license issued by a primary jurisdiction and has its head office and focus of operations in that primary jurisdiction. The KGC is aware that the Alderney Gambling Control Commission (“AGCC”), has recently issued Suspension Notices against several companies collectively operating as Full Tilt Poker. In view of these recent actions, the KGC is reviewing all available information to determine whether the Secondary CPA presently held by Kolyma will be continued. A further announcement will be made shortly.

While rumors continue to fly that FTP has been attempting to relaunch operations under a KGC banner since Wednesday (the ‘system maintenance’ banner on FTP has now been changed to ‘system update‘), it’s worth noting that the AGCC’s public statement on its suspension of FTP’s license specifically prohibited FTP from registering new customers, allowing existing customers to deposit or withdraw funds, or allowing any kind of gambling transaction before its AGCC hearing in London on July 26.

✖ French gaming regulator ARJEL released a statement in which it suggested it’s not quite ready to revoke FTP’s French operating privileges, but advised FTP to get its ass in motion to restore French players’ accessibility to the .fr site “without delay.” ARJEL president Jean-Francois Vilotte said his organization has ordered FTP “to find technical solutions to continue to serve the French players who need to access the site.” Failure to do so in a timely manner means FTP “will draw the consequences.”

✖ QuadJacks.com host @AgentMarco claims a source inside FTP told him “Jack Binion is now the company’s investor.” Binion was rumored to have been discussing investing in the floundering poker company earlier this week. Marco claims his source has been right before, but that’s the sum total of the details he’s been given so far. FTP’s own site had claimed that the company was engaged in discussions with multiple parties about taking a chunk of FTP, and a CalvinAyre.com source has since told us that bwin.party (Pwin) had a US $185m offer on the table to buy FTP outright. Pwin co-heads Norbert Teufelberger and Jim Ryan were reportedly in Dublin negotiating with FTP honcho Ray Bitar, but yanked their offer off the table and their asses out of Ireland after Alderney pulled FTP’s plug.

✖ German magazine PokerOlymp printed an interview with an anonymous/disgruntled employee of FTP’s Irish-based support operation Pocket Kings, who claims FTP’s CFO was incapable of even surveying the full picture of the company’s financial woes post-Black Friday, let alone solving them. The employee also said that all ‘non-vital’ budgets had been effectively reduced to zero. Other complaints include that Ray Bitar had issued but a single statement to employees since Black Friday, and even that was merely to thank them for their efforts during such trying times. This slapdash communications strategy was allegedly systemic at FTP (US players don’t need to be told this), as the employee claimed that obtaining approval or disapproval on any project from higher-ups could take months. PokerOlymp stressed that there was no way of corroborating the employee’s allegations, but that they considered him to be trustworthy.

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As history shows, government oversight does not ensure compliance, quality, or consumer protections. This has been made evident by the scandals and problems that have plagued government-run and government-regulated Internet gambling sites over the years. Examples abound.

Consider the province-owned Internet gambling site PlayNow, launched by the British Columbia Lottery Corporation on July 15, 2010. It was touted as North America’s first legalized Internet gambling platform, but was shut down on the first day of operation due to a software glitch that allowed some players to access the personal information of other players and to use their funds. After a delay of 35 days, the government lost an estimated $5 million Canadian ($4.8 million U.S.).

Two of the most well-known scandals in online poker occurred in 2007 and 2008 at UltimateBet.com and AbsolutePoker.net. Hackers created “super user” accounts, which gave them the ability to see all players’ cards and thus cheat their opponents out of thousands of dollars.

These scandals didn’t occur at unregulated operating in a “wild West” frontier. Both of these privately owned sites were based in an area of Canada that put them under the regulatory authority of the Kahnawake Gaming Commission, a tribal authority in Canada. And it was independent players on the sites who uncovered the cheating scandal, not government regulators. Lawmakers should seek to strengthen such private self-policing, not undermine it.

Private regulatory bodies generally result in stronger consumer protections, greater competition, higher quality products, and lower regulatory costs. Electric appliance manufacturers, for example, consider the approval of Underwriters Laboratories (UL), an independent third party rating agency that holds products to high safety standards, as essential to winning consumers’ trust. (UL is funded by fees companies willingly pay in order to garner its coveted seal of approval.)

Similarly, the certification company eCogra rates Internet gambling sites based on information security and fairness of play. All sites must agree to eCogra’s mediation process if a customer files a dispute in order to receive its “Safe and Fair” seal of approval. Of eCogra’s nearly 150 certified sites, none have been involved in scandal.

Lawmakers are finally moving in the right direction in regard to Internet gambling. It should be legal and perhaps taxed, but there is no evidence that an extensive government regulatory framework is necessary. Private regulators and consumer diligence are more effective and efficient and provide greater competition and consumer security than a government monopoly.

Legal News

The 2010 MOU builds and expands on the relationship first established between the KGC and the FSRC when in 2005 they signed a Memorandum of Understanding (2005 MOU) that facilitated the exchange of information regarding their respective licensees.

The 2010 MOU will enable a process under which an operator that holds a “Primary Licence” in either jurisdiction can apply to the other jurisdiction for an “Inter-Jurisdictional Authorization”. The holder of an “Inter-Jurisdictional Authorization” will be entitled to be hosted in either jurisdiction. The regulatory body that issues the “Primary Licence” will regulate and supervise all of the operator’s activities within both jurisdictions.

The 2010 MOU is designed to recognize the inter-connectedness of remote gaming regulators – providing operators an unprecedented degree of flexibility for their licensing and hosting needs – while respecting the independence and international obligations of each jurisdiction.

The 2010 MOU comes into effect 90 days from the date of signature, to allow each jurisdiction the time to complete the necessary amendments to their regulations.

A copy of the signed 2010 MOU can be obtained from the KGC’s website: www.gamingcommission.ca and www.antiguagaming.gov.ag

About Kahnawake

The Mohawk Territory of Kahnawake is a sovereign jurisdiction located just outside Montreal, Quebec, Canada. The Kahnawake Gaming Commission was established in 1996 and has been continuously licensing and regulating online gaming since July, 1999 – longer than almost any other jurisdiction in the world.

Operators that are licensed by the Commission host their equipment at Mohawk Internet Technologies, a world class ISP and data centre located within the Mohawk Territory of Kahnawake: www.mohawk.ca

For more information about the Commission go to: www.gamingcommission.ca or contact:
Murray Marshall
General Counsel
Kahnawake Gaming Commission
murray.marshall@gamingcommission.ca

About Antigua and Barbuda Financial Services Regulatory Commission

Antigua and Barbuda, Financial Services Regulatory Commission (FSRC) was established in 2002 following a series of amendments to the International Business Corporations Act, Cap 222, as amended.

The FSRC license, regulate and supervise a range of financial services and activities, to include interactive gaming and interactive wagering. The legal and regulatory framework for internet gaming companies is provided in the International Business Corporations Act, Cap 222, as amended, the Interactive Gaming and Interactive Wagering Regulations, 2007 and the ancillary control systems guidelines.

The jurisdiction’s gaming regulatory model is founded on five distinct pillars: prevention of money laundering and terrorist financing; licensee integrity, transparency and accountability; and, above all, safeguarding the interests and well-being of the players.

On November 21, 2008, the United Kingdom formally designated Antigua a trusted, “white listed” jurisdiction, a designation that recognizes the jurisdictions robust licensing and oversight controls. The white-listed status enables Antiguan licensees to advertise their gaming services within the UK. In December 2009 the jurisdiction was white-listed after having substantially implemented the internationally agreed tax standards of the Organization for Economic Co-operation and Development (OECD)

For more information about the Financial Services Regulatory Commission visit www.fsrc.gov.ag or contact director@antiguagaming.gov.ag

Press Releases

If anyone Kahn...

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Alderney's white-list status is under threat

The announcement by the Alderney Gambling Control Commission and the Kahnawake Gaming Commission, that they are to collaborate with each other on matters of common interest, is an interesting development in the ever changing world of egaming.

“The Kahnawake Gaming Commission and the Alderney Gambling Control Commission confirm that they have signed a Memorandum of Understanding which will provide an efficient and reasonable channel for the exchange of information and material with respect to past, existing and prospective licensees for the purpose of ensuring effective regulation between both jurisdictions,” read a press release.

The specifics and extent of the collaboration have not been specified, save to say that, “the KGC and AGCC have agreed that the specific content of the MOU will remain confidential.”

The KGC, which is based near Montreal, Canada, is one of the largest licensers of online gambling companies in the industry, with hundreds of internet gambling sites owned by scores of major companies bearing its logo and subject to its regulations and authority.

The AGCC, of Alderney in the Channel Islands, is not thought to have as many licensees, but it has forged a reputation as one of the most respected and effective regulators in Europe. It gave a licence to the much-troubled Full Tilt Poker in October and currently boasts UK advertising white-list status.

However, much like Malta, Alderney is beginning to see its existing business model flounder in the face of recent moves by EU member states to create national regimes, notwithstanding the EU Treaty.

As Alderney is not part of the EU, its white list status is under serious review, leaving the long-term benefits of an Alderney license within Europe very much in doubt. So it now appears to be making a shift towards selling itself as a preferential corporate tax jurisdiction and infrastructure hub, rather than a strict gaming regulator.

Malta, on the other hand, is rumoured to be preparing legal challenges inside the EU itself to enforce the open market rules that would enable any Maltese licence holder to offer a pan-European service from Malta. If successful, a Maltese licence would be the world’s best online gaming licence for Europe.

Antigua and Kahnawake would still be the best licensers for North American facing operators and Cagayan Philippines is the best for Asian-facing business. Most truly global brands will also end up getting a UK licence for the global stature this would accord their brands.

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CalvinAyre.com is a not-for-profit website. All profit generated from the Tablog goes to support initiatives of the Calvin Ayre Foundation.

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While Quebec is already home to the Kahnawake Gaming Commission which houses many other online gaming entities, statements released by government officials indicate that Kahnawake is viewed as a competitor. Furthermore, statements suggest that the Quebec government is stiffening its stance against Kahnawake and what they term as illegal online gambling. It was a big fat French backhand with a white silk glove to the face, and the Mohawk Council of Kahnawake fired back denouncing the sentiments of the Quebec government.

The Quebec government referred to Kahnawake as an underground economy, and referenced them as illegal gaming. Interestingly enough, Kahnawake doesn’t actually offer any online gaming themselves. In fact Kahnawake’s role is more closely defined as a world class host for online gaming and a major third party regulator for online gaming practices. Surely, the Quebec government is aware of this, non? It would appear not, judging from various statements made. The notion that Quebec will suddenly break into the online gaming market and just start bullying the competition is ridiculous, anyone in the industry knows that. Quebec will only be offering their online services to Quebecers residing in the province, they will be competing with established entities like PokerStars, PartyGaming and Full tilt, so how much of a market share can they really take?

So much for the Statement of Understanding and Mutual Respect, in which the Quebec government acknowledged and accepted Kahnawake, now the tune being sung is different. It appears all bets are off with the Quebec government and Kahnawake. But it doesn’t have to be that way. Conventional wisdom would suggest that instead of being at odds with Kahnawake, why not utilize their expertise to offer the best product possible to give the best chance at competing in an already established market. Furthermore, why turn your back on Kahnawake, which has been operating for twelve years providing in province jobs and conducting its business with class and without reproach? It makes you scratch your head when you really think about it. It’s fair to say the Mohawk Council of Kahnawake isn’t happy about the Quebec government’s stance and under the circumstances, they have every right to be disgruntled.

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It’s a small step for Loto Quebec and one big step for the online gambling industry, or one small step for the online gambling industry and a big step for Loto Quebec, it depends on how you look at it, either way, both are taking a step forward.

Loto Quebec plans to follow the Swedish regulated online gambling which produced a whopping 600 million dollar in 2008 and saw its market share grow by 25% within hours of entering the market. With figures like that and millions of dollars there for the taking, it makes you wonder what took so long? Well it won’t be long before Loto Quebec sets up shop. Plans to launch full services are already in motion and the gaming monopoly hopes to be in full business by the fall.

It’s not like Quebecers don’t already have access to online gambling sites, so the competition will be healthy. The south shore of Montreal is home the Kahnawake Native reserve, where the Kahnawake Gaming Commission houses hundreds of online gaming servers in the community. It will be interesting to see how Loto Quebec deals with the competition that its government officials describe as illegal gaming. The Quebec site will be limited to offering its services only to resident within the province, but this move could have far reaching after shocks outside the borders of Quebec. The subject of legalization of online gambling has been on the backburner in many other Canadian provinces, with Quebec now accessing the market and soon to be raking in millions in revenue, how long will be it before other provinces both nearby and across the country follow suit?

With all of the money the province and Loto Quebec will soon be pulling they probably won’t give a shit about what the rest of Canada is doing. Quebec might even opt out of Canada and become its own country…Probably not, but we’ve heard that talk before. We’ve also heard the talk of legalization of online gambling from provinces like British Columbia, who already offer government online gambling sites. But even BC doesn’t offer single game sports betting. The fact is money talks, and many provincially run online entities are losing business to off shore firms that offer a wider array of gaming options. Loto Quebec is now in position to compete, is Canada bracing for a domino effect? Only time or should I say, only money will tell.

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