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Conference News

iMEGA Director Joe Brennan Jr

Interactive Media Entertainment and Gaming Association (IMEGA) chief Joe Brennan, Jr. recently made an appearance on the Quadjacks.com radio show to talk about anything and everything related to the gambling industry.

Ever the brilliant man that he has been billed up to be, Brennan touched on a number of topics with host Marco Valerio. He shared his insight and opinions on his drive to legalize online gambling in New Jersey, the battle between federal and state legislation, and his thoughts on the country’s poker community.

Brennan is considered one of the brightest minds in the industry today and the words that come from him carry significant weight. In talking about New Jersey’s unprecedented drive towards legalized online gambling, Brennan revealed the approach he took and the seemingly open – and fruitful – correspondence he has had with state leaders.

“Gaming affects legislators all over the state, not just in Atlantic City,” he said. “We came in and listened to them first, and then responded in ways that were meaningful to them. Gaming taxes and revenue may not be key issues for politicians in the north of New Jersey, but what might be key issues to them are jobs and quality of work. North Jersey, for example, has the highest IT infrastructure density than anywhere else on the planet. The iGaming industry is an industry that could use an awful lot of this unused capacity. In North Jersey, that means jobs, investments, ribbon-cuttings for these politicians. That’s something they can bring back to their constituencies.”

Regarding the topic of online gambling regulation and who gets first dibs on doing it between the federal government and state legislators, Brennan made it clear which side he thinks is actively pursuing it and which side is, in his own words, “ambivalent about the issue”.

“I’m not anti-federal…but it’s never been in the cards,” he said. “There is no congressional appetite to have a vote on this right now, and there hasn’t been since 2006, when the UIGEA was introduced. The vast majority of congressmen are either unaware or ambivalent about the issue, for a number of reasons. We went down the state route because that seemed to be where there was the most interest, but more importantly, you have two historical precedents regarding gambling in the United States that evolved on a state-by-state basis: casino gambling and the lotteries.”

The IMEGA chief also talked about Sands CEO and chairman Sheldon Adelson’s long-standing stance regarding online poker, specifically his opposition to make online poker legally available to the American public.

“He may have the best take right now on the economics of Internet poker. Relatively speaking, it is a smaller pie than the rest of the gaming industry, and even online, it’s smaller than sports, casino, and bingo when it comes to liquidity,” Brennan said.

Despite not embracing Sands’ position, Brennan wasn’t afraid to be candid to poker advocates, especially to those that think the game should carry certain gambling exceptions based on the notion that it’s a game of skill. At the end of the day, it’s still all about how big of a business it is, and Brennan bared the truth on the matter.

“I know this might upset some of your listeners, but at the end of the day, poker is not a big business,” he said. “The reason why those companies – PokerStars, Full Tilt Poker, UB – were successful is because most of the liquidity was concentrated in those two or three companies. In the long term, the only way you can be successful in the poker business is if you can dominate the market in terms of share.”

“If the cost of getting legal, near-universal real-money Internet poker in the U.S. means also having real-money blackjack and real-money slots and real-money bingo online, the poker community should embrace that wholeheartedly.”

Poker News

The two bills are updates of last year’s historic casino deregulation and Tourism District legislation, with new elements, such as that of mobile gaming.

Sponsor of both bills, Sen. Jim Whelan, who also chairs the Senate State Government, Wagering, Tourism and Historic Preservation Committee, will be heading the discussion today in what he describes as an attempt to interest younger gamblers. He said: “They play computer games, and so on, and they text and they Facebook on their iPads and their smartphones, and so forth, and so I think it makes sense to recognize what was not even thought of 30 years ago and is now a reality.”

The report maintains that discussions with regulators in the past have made him confident such devices could be kept out of reach of underage players. He added that though it would free gamblers from the casino floor – it’s still a long way from real, full-blown internet gambling, which remains illegal in the state of New Jersey.  “You step off the premises and this thing goes kaput,” he added. Instead, what the bills would allow is wireless play limited to gamblers with established accounts, playing approved games inside the casino property on regulator-approved devices.

The lobbying arm of the resort’s casinos – The Casino Association of New Jersey – is in support of it, with association President, Bob Griffin, stating: “This innovation would provide an additional amenity to help Atlantic City further distinguish itself as the East Coast’s premier gaming destination.” Whelan said this was a long-standing request from the Greater Atlantic City Regional Chamber.

If passed, will the bills pave the way to legal internet gambling in Atlantic City, or even the state of New Jersey? If not, will they at least help it get back on track against the big boys?

Legal News

Tuxworth cited the H2 Gambling Capital and Gambling Compliance when advising the committee – stating that online gambling in South Africa could generate Rands 6 billion in revenue and add up to Rand 1 billion in taxes.

He said that the expected level of growth would be approximately 10% a year until 2015 and also suggested that a change in gambling laws could give the country an opportunity to become “a technology hub” for the industry.

Betfair has also made news over in Australia today, with the company saying that Prime Minister Julian Gillard is at odds of $2.92 to be Labour leader at the next election.

In a statement, the bookmaker said their customers only give Gillard a 30% chance of holding her job.

“Unlike betting with the bookmakers or the TAB, odds on the Betfair exchange are set by punters themselves, meaning the market acts like a real-time opinion poll of public sentiment,” the statement said.

Foreign Minister Kevin Rudd’s odds of becoming Prime Minister also shortened to $1.47.

A Betfair spokesman added: “Betfair punters think it’s all over for Julia Gillard and are increasingly sure Kevin Rudd will be back in the Lodge in time for the next election. Julia Gillard had traded as low as $1.55 to hold on, but Betfair punters remember what happened last time leadership speculation reached this level, and all the money since Australia Day has been for Kevin Rudd.”

Business News

The person in question is executive vice president and general counsel for USDG, Melissa Riahei.

In a report by Khon2 News, the exec showed state lawmakers a nifty PowerPoint presentation that exhibited stats for online poker and how it could reach an estimated $19.6 million in the first year, with the state retaining $2.5 million as profit, if it was to become legalised.

“They turn out to be really large numbers that can really benefit in funding essential services for the state of Hawaii,” Riahei said.

By the fifth year revenues could soar to an estimated $103.9 million with $78.8 million just for the state’s pocket.

Riahei added: “It is a very significant sum. What we were doing is basically just informing the senators and the representatives of what’s going on across the country right now in the digital gaming world and what different states are doing.”

Although a new Council on Revenues projection in Hawaii has projected a 312 million deficit by fiscal year 2016, lawmakers in the state are still not warming to the idea of online gambling. Perhaps another bad sign is the fact that two bills to allow slots and video poker in Waikiki hotels that were introduced by state Senator Donna Mercado Kim failed to make it out of committee in years 2009 and 2011.

A reason for this gambling repulsion in Hawaii could be down to the anti-gambling lobby, a body that remains resilient in the Aloha State despite its financial difficulties in the past few years.

However, the state has some reason to be hopeful, at least. Donalyn Dela Cruz – a spokesperson for Hawaii Governor Neil Abercrombie - mentioned Tuesday the governor would welcome any gambling bill that lands in front of him: “Whatever is formulated and it actually survives the session and it gets to the governor’s desk, then he’ll look at it,” she said.

Legal News

"Don't f*** it up."

One of the main proponents of online poker legalisation in the USA – Rep. Barney Frank (D-MA) – announced this week he will be stepping down at the end of his current two-year term after more than 30 years work in various governmental positions.

But what does this mean to the online gambling industry, and players who want online gambling legalised in the US? Well, more than you think. When looking into who is set to replace him, it seems worrying times could be ahead.

As the ranking Democratic member of the House Financial Services Committee, which oversees the country’s banking and credit card systems – and makes laws regulating them – Frank does their bidding. Meaning he supports legalisation of online gambling because it would make money for the banks and credit card companies.

However, as of 31 December next year when he is set to be replaced; filling his shoes will be California congresswoman Maxine Waters. Yep, Waters is the second-ranking Democratic member on the House Financial Services Committee so puts her next in line. What a way to welcome in year 2013: a number that will be even more unlucky for some. Here’s why:

• When good old Frank voted against the bill passed by the U.S. House of Representatives in 2003, which would make it illegal for credit cards to be used to fund online gambling – Waters voted in favour of it. (Although it never became law because it wasn’t approved by Senate that year)
• Then, when the bill was brought back to life three years later, in 2006 (part of a larger bill involving port security in the U.S), Waters voted in favour of the bill yet again. This helped it along its way, which eventually saw it passed by both the House of Representatives and the Senate. Do we even need to mention Frank’s position? He was against it, of course.

So, a year from now – when Barney Frank retires – we have none other than Waters to look forward to. Online gamblers looking for legalisation in the U.S will certainly be living in fear of what changes she will bring to the table. Our bets are, they won’t be pro-gambling ones.

What damage do you think Maxine Waters could cause…to the online gambling industry, that is ?

Legal News

The StarTribune reported yesterday that the Minnesota State Lottery is almost a year into an experiment to get more Minnesotans to gamble online through a subscription lottery service. Gasp!

So what makes it so secret? Well, the report maintains that there hasn’t been a single press release or announcement about lottery officials looking at the Internet to boost sales. It’s thought online is the way forward though, as more Minnesotans (who want to change the gambling laws) reject traditional lottery tickets, and become more comfortable playing games and buying goods online, like second-hand sex toys off eBay…presumably.

To shine a light on why it may have come about, acting Lottery Director, Jenny Canfield, said at a lottery seminar last year:  ”We are seeing that decline and it’s happening very rapidly. We have to react quickly to grab back our players, to build up our player base again.”

What the critics had to say

Gambling critics are said to be surprised by the move, including legislators, who said they were “deeply troubled by what they see as secrecy, aggressive tactics and a bypassing of legislative approval.”

Assistant Senate Majority Leader David Hann – an Eden Prairie Republican who tried to abolish the lottery six years ago – called it “reprehensible”. Telling how he wants to explore whether the state lottery has the legal authority to sell tickets online, he added: “We are spending a lot of taxpayer money to lure people into throwing money down the toilet so we can spend it on something that we think is more important.”

Gov. Mark Dayton’s administration felt like the last to be in the know. Apparently they learned about the online ticket-buying service only late last week. Don’t you just hate it when that happens? Dayton spokesman, Bob Hume, said the practice “started before Dayton took office and that they have not looked into it.” Oh dear.

State Representative, Ryan Winkler, of DFL-Golden Valley, also had something to say about it. As a sitter on committees that review gambling issues, he said it should “absolutely” be reviewed by legislators. He added: “I certainly want to find out if they have the authority to do it. It looks like they are trying to avoid public attention.”

“Within our guidelines”

However, contesting those who denounce the lottery for keeping it all hush-hush, officials have said there was nothing secretive about the subscription service. Apparently, they intentionally staged a “soft launch” because they anticipated only a fraction of Minnesotans would use the system and they didn’t want to spook retailers who make a commission selling lottery tickets. Hmm, soft launch…clandestine…same thing right?

What was Canfield’s justification? “We had to be sensitive,” she said.

Nevertheless, lottery officials insist say they don’t need legislative approval. The reason? Their online subscription service, which allows players to gamble no more than $50 a week, is “electronic commerce” NOT “Internet gambling” and is within their guidelines.

Only a few states offer online lottery ticket sales like Minnesota, but legislators in other states such as New Jersey are now considering it. What a lottery pioneer Minnesota is. Although North Dakota and New Hampshire offer similar online lottery subscription services, and neither got legislative approval.

Office spokesman, Ben Wogsland, revealed that the Minnesota attorney general was never asked to review the idea, and said: “No one has requested it and no one has given any advice from our office.”

A spokeswoman for the U.S. Department of Justice – that has shut down numerous online gambling operations around the country – declined to comment on the legality of the online ticket sales.

More comfortable online

There is no advertising campaign for the online service – which can be found by clicking Buy Online on the lottery’s home page – but nearly 8,000 Minnesotans are signed up for it. Subscription sales made up $607,000 of the $500 million businesses. “Some people just feel more comfortable online,” Canfield added. “Some more affluent people prefer it.”

The online subscription service allows Minnesotans to buy tickets for most lottery games around the clock. For those oblivious to how it all works and want a low-down, here are the terms and conditions:

• Players can select a subscription from six weeks to a year for a half-dozen lottery games, playing $2 to a maximum of $50 per week.
• Once an online purchase is made, the same numbers must be played for the duration of the subscription.
• Customers can not change the numbers or cancel a subscription before the subscription runs out.
• The lottery can suspend a subscription if the customer’s bank account runs out of money, but penalties will be assessed.
• The lottery does not accept credit cards and requires that subscriptions be paid by direct access to a checking or savings account.

Minnesota’s Internet lottery ticket sales are said to be an aspect of a long-term online strategy. This is due to the fact lottery officials realised that consumer habits have changed in the 23 years since Minnesotans changed the state Constitution to allow lottery gambling – especially among young adults.

Showing just how successful it is, even in a bad economy, the Minnesota State Lottery set a fourth consecutive sales record in fiscal year 2011, bringing in $504.4 million. With this in mind, do you think other states will follow suit? Or would the uncertainty of legislative approval be too much of a risk?

Business News

In addition, the company will introduce ancillary fees ranging from $6-$25 for those account holders that don’t use the bank’s other services.

The news is sure to drive several gamers from the institution, as the company’s reputation has already been shaken by problems related to their online banking feature which temporarily froze the accounts of many gamers for gaming transactions that the server labeled as suspicious, according to Casino Gambling Web. These fears proved unwarranted, however, as the server was actually down for all online banking customers.

Business News

OnlineCasinos.com is reporting that mixed martial arts (MMA) is fast becoming the hot pick at online gambling establishments around the globe. Driven primarily by the Ultimate Fighting Championship (UFC), MMA has become a fiercely competitive ground for punters who love the bloody action, the last-second rallies to win a fight and the fact that there is no off-season in the sport.

Unlike more traditional sports like rugby or baseball, punters wagering on MMA don’t deal with points spreads, instead opting for adaptable odds, or “moneylines.” These moneylines are meant to balance out a bookies sheet, so that everyone betting that Anderson Silva will waltz through his next opponent will have less heading their way than if whatever punching bag they throw at the UFC Middleweight Champion pulls of the upset.

Sports News

When asked about his new position on the team, Truche told the press that playing for Everest is a dream come true…presumably in a snooty accent while blowing smoke in the air.

“I cannot believe I am this lucky! After a terrific year with the Live the Dream team, I cannot wait to be a part of Team Everest and represent my favorite poker room,” said Truche.

Poker News

“With the amount of countries that have legalized some form of online gambling, that number will most likely continue to grow over the next decade,” the company’s Gaming Analyst, Steve Schwartz, told the press. “If that is the case, the industry could become one of the most relied on in the world when it comes to tax revenue created.”

The study speculates that the growth could push the industry to more than $40 billion by the year 2014, though the ongoing struggles to legalize online gambling in the U.S. may be an impediment to that growth.

Business News

Punters hoping to hit the jackpot have three games to choose from including Blackjack Multi Hand Pro, Blackjack Single Deck and Blackjack Bonus Pairs. As a stroke of marketing genius, the symbol has been programmed to be more likely to appear when gamers place more money on the line, so high rollers have a better chance of winning.

Marketing News

The move comes after the recent publication of a Norsk survey that found that more than 4 percent of Norwegians of legal gambling age are currently placing their bets with offshore companies. While that may not seem like a lot, it was more than enough for Huifeldt to spring into action and enact measures like Internet Service Providers blocking and filtering of foreign domain names related to online gambling.

“Such measures have been successfully used in Italy, Estonia and France, and the concept has found favor in Denmark,” the future Darth Vader told the national newspaper, Dagbladet.

An opposition movement has made itself known in the guise of Liberal leader Ove Vanebo, who claims the moves stamp on the freedom of the Norwegian people to choose where they game.

Legal News

Despite this groundswell of support from his constituents, New Jersey Governor Chris Christie is now expected to bow to his conservative overlords and veto recently passed legislation that would license and regulate both online gambling and sports betting.

Should Christie decide not to tow the party line, as he has hinted in the past, it would likely set off a chain reaction of events, with similar legislation passing in California, Florida and other states seeking new sources of revenue to fill gaps in their budgets.

Legal News

The win notches Ivey back into the black for the year after the 35-year-old pro hit a rough patch last month and started the year off more than $600K in the hole. Yet with this win, the New Jersey Native once called “No home Jerome” is already up $300,000 for the year.

At this stage in his career, Ivey has never booked a losing year online, and PokerListings.com speculates that his online cash game winnings could exceed $18 million in pure profit.

Poker News

It’s no secret that the Republican Party at large has been largely opposed to the legislation, and with no clear frontrunner for who the party will run against current president Barack Obama in 2012, Christie doesn’t want to ruffle too many stuffed shirts in the hopes of a potential party nod.

Though let’s be honest, unless some miracle man named John Reagan Everyman comes marching through a cornfield holding the second amendment in one hand and a bald eagle in the other, that nomination is likely going to the mildly bangable, but hopelessly terrible Sarah Palin. As such, Christie may want to risk pissing off a few of the old guard, and help his state climb out of debt.

Legal News

Damn if they don’t sound reasonable too, with an official statement from the opposition even accepting warning labels over outright prohibition.

“If restrictions were essential, it would be more acceptable to treat gambling in the same manner as smoking, with warnings of the possible dangers associated with wagering carried on any advertising, rather than outright bans,” an industry spokesperson wrote in an official statement.

Legal News

Now that buck has all but officially been passed from a national decision to a state one, and Campbell believes this progress could lead to a wider acceptance of the online gambling community at large.

The gambling market in the U.S. is estimated to produce about $90 billion, while the global online gambling market in its entirety is only worth an estimated $30 billion. Campbell claims that a country-wide adoption of iGaming legislation could add an additional $7 billion to that total.

Legal News

Unlike it’s Apple counterpart, the S2 operates on the Android 2.3 platform, though may be upgraded to the 2.4 system by the time it hits shelves later this year. That means that the phone will come prewired for the Android marketplace’s numerous online casino, sports betting and poker apps fresh out of the box. The announcement that Microgaming will be making all of its games Android compatible doesn’t hurt either.

Spec-wise, the phone will feature an upgraded 4.3-inch AMOLED+ screen that runs 80 percent more efficiently and improves colors to the Nth degree.

Lifestyle News

Just last night, the Great Dane made high stakes pro Rui Cao his bitch, taking a remarkable $500,000 off of the French Full Tilt player in just over 100 hands at the $500/$1,000 capped PLO tables. This brings Hansen’s winnings at PLO tables for 2011 alone to over $2 million, according to Pokerlistings.com.

Whether it was winning his first bracelet at the 2010 WSOPE or just the pestering phone calls of his creditors, to say that Hansen has silenced the haters (myself included) is an understatement.

Poker News