Inside Gaming has issued a response to Aspiritus Gaming’s claims that it is responsible for the demise of the online casino operation. Inside Gaming has denied the allegations made, reporting that the were “totally unfounded” and that Aspiritus decided to end their operation of their own accord. Moreover, the team says that Inside Gaming absolutely complied with the terms of their contract in delivering goods and services.
The statement provided by Inside Gaming says that the management agreement was signed off by Aspiritus’ attorneys. The online casino gambling management team claims that Greg Kennedy, who may have been involved in a pyramid scheme with World Games Inc, was also responsible for much of the site development for Aspiritus.
“Aspiritus were paying all fees due up until May of this year. After that date when no settlement was received by the due dates Inside Gaming queried this with Greg Young, who had no idea as to why settlement had not been made. He referred the matter to Greg Kennedy who had been responsible for the authorizing all the past payments,” the statement read. “Some time later we were informed by Greg Young that Greg Kennedy had told him that he was to take instruction only from Clare Isaac, their legal counsel, and that in shirt he wished to pay Inside Gaming the money owed and close the operation down.”
In what may prove to be bad tidings for Aspiritus users, Inside Gaming states that it was only recently informed of the online casino’s closing, and that no contact information was provided for players to collect their balances owed. Apparently, any recent attempts to contact Isaac were unsuccessful.
After a two-year investigation into Bodog, the IRS has seized over $24 million from two payment processors accused of processing payments for the online casino gambling, poker and sports betting website. $14.2 million was taken from JBL services between January and February of this year, according to federal court documents. An additional $9.87 was seized from ZipPayments on July 2nd, but Bodog says it hasn’t had an effect on business. In fact, Bodog has continued its timely payment to customers; an area where many other online casinos fail.
“Not one single player failed to get paid when this processor was disrupted,” said Alwyn Morris, chief executive officer after JBL came into question, “Customer deposits are safe and every player has and will always be paid. All operators outsource payment processing functions to third parties and these payment processors are subject to regulatory constraints wherever they operate, and, occasionally in the U.S., are subject to legal action because of the uncertain legal environment there.”
Bodog first came into question in 2003 following an IRS conducted interview with Calvin Ayre. A formal investigation was not put into play until 2006. Unfortunately because of the investigation, IRS Special Agent Randall Carrow became well acquainted with the payment process to and from online casinos.
“Because of various developments, it has become more and more difficult for internet gambling website operators to move money into and out of the United States,” Carrow reported, “To continue to make ‘payouts’ to gamblers, some internet gambling operators have begun using money processing businesses in the United States. Based on my training and experience, I know that, typically, the gambling website operator will send a U.S. processor a check or wire transfer of a relatively large sum of money, usually hundreds of thousands or millions of dollars. The processor then distributes the money to individuals, either by check or electronic transfer of some type. None of the transfers identify the money involved as gambling proceeds.”
Thanks to an informant, Carrow was able to determine the payment processor owned by Calvin Ayre near the end of 2006. The IRS had access to credit card transactions used to deposit money to Bodog and its affiliated companies. An undercover agent opened a gambling account in December of 2006, and was able to place 40 bets, amounting to well over $35,000, by January of 2008. In doing so, the agent tracked checks down to a Direct Channel bank account with Mercantile Bank. With the help of the checks and “cooperating individuals,” the IRS was able to link Bodog to JBL Services and Zip Payments.
Bodog maintains that not all of the money seized from Zip Payments belongs to them. In a statement released by Bodog, officers stated, “This is simply false.”
A management dispute between two online casino operations has ended in the closing of Aspiritus Gaming. Aspiritus was operating under a Curacao license and Playtech gaming software, but following a “major bust-up” with Inside Gaming, the gambling services were cut off.
The partnership between Inside Gaming and Aspiritus was short-lived. Those trying to access Aspiritus were informed that it was closed for maintainance. By July 29th, users were given a notice that the online casino operation was searching, however unsuccessfully, to find a different software provider or partner. The notice said that due to “time constraints on delivering new products, the cost of obtaining new licenses or a mixture of both” the site was left inoperable.
Aspiritus’ management goes on to say, “Over the last week, Aspiritus management has been reviewing the business and it is with great regret that we will have to close the Aspiritus business with immediate effect as the impact… of the recent contractual dispute, and ultimate termination of the contract, with our gaming operator has been devastating.”
The notice does not specify what really happened between the two operators, but it does continue, “The dispute has put Aspiritus under further financial strain and after reviewing the cash flow of the business, the Aspiritus management team has been left with no alternative.”
From what anyone can gather, the dispute may be the result of contractual and financial disagreements. Aspiritus implied that the fees and charges from Inside Gaming were too substantial to both the operators and the members. It was mentioned that Inside Gaming was charging 35% more than was agreed to in the contract.
“With the recent transfer restrictions placed on our members, Aspiritus suffered major losses as the casino and poker products make up 95% of revenues. The effect this has had on the goodwill and reputation of the business in supplying services, especially for a community based site such as Aspiritus, are devastating.”
It has also been announced that Aspiritus will transfer its online casino players to an unidentified gaming operator so that users are do not feel the effects of the site’s closing. According to the notice, “While the decision has been made to close the Aspiritus business, Aspiritus management has held discussion with a new gaming operator, who will be opening their website in August, and they have agreed to place Aspiritus members into their database.”
This leaves former Aspiritus users discomforted, however, as the site is not only new to them, but brand new to the market. Members holding Club Equity credits have also express concern that the time and effort put into obtaining these credits will be for naught. Aspiritus has stated, however, that they will further negotiate with the mystery-casino operator in attempt to give value to the credits through future ownership of the new company. Aspiritus also intends to convince the new company to transfer the VirtuDAQ and S8 + Superdraw products.
Inside Gaming has not yet issued a statement, claiming that spokesperson Richard Hogg is away on leave.
Playtech is releasing an exciting new software development that online casino aficiondos are calling "an epic in the works." Playtech has been established as one of the leading, safest and most impressive software developers for the internet casino industry. Players will remember the Lara Croft Tomb Raider game as an example of a themed game that casino gamblers received with much anticipation. Now Playtech has announced that it has obtained the rights to develop online slots games based on the movies, Gladiator and the Untouchables.
Playtech is notorious for its great graphics, features and exclusive license with Paramount Digital Entertainment to develop games based on users favorite movies. Online gamers could think of no better developer to take on this project.
"We are pleased to have secured this important deal with Paramount Digital Entertainment, which will enable our licensees to offer games featuring two very well-known brands, Gladiator and The Untouchables. We are confident that this exclusive material supplied to our licensees will support their marketing efforts by increasing the profile of their games portfolio and enhancing the gaming experience for customers," said Mor Weize, Playtech CEO.
Online casino gamblers have seen such recognizable themes in casino games, but Playtech has the most impressive portfolio by far. Evidence of such is seen in licensing agreement between such a lucrative movie franchise like Paramount and Playtech. The company has quickly become a major competitor in the industry, and the license has been the center of attention in the industry.
Playtech, the world’s largest publicly traded online gaming software supplier, has released its second quarter trading update and key performance indicators this week, showing its continued growth in the industry. Playtech’s CEO More Weizer proudly announced revenues this year of over $42 million, a 75% increase from last year and 9% from the first quarter.
“The second quarter of 2008 was a further significant period of growth for Playtech. This level of performance, particularly considering the impact of the Euro 2008 football tournament and traditional seasonality, is very impressive with licensees continuing to win relative market share,” said Weizer. “For the year to date, total revenues have increased by 85 percent. The Company has had a good start to July with further continued growth in both casino and poker. With organic growth and the launch of new licensees in Q3 and beyond we look forward to a strong quarter and the Board is highly confident of the prospects for the full year.”
The report shows that internet casino gaming is responsible for most of the revenue this year. Online casino revenues saw a 77 percent increase from $27.2 million last year to $30.8 million. To show how widely used Playtech software is, the entire online casino industry this year saw a 78% increase at $58 million. Playtech makes up 52% of that revenue. Online poker revenues totaled $11 million, showing a 74% increase. Overall the industry has grown 109% at $22 million.
The online gaming developer also announced its intention to seek further acquisitions and partnerships. Playtech has signed 10 new license agreements this year. Among Playtech’s new partners are Betsson, Vista Global limited, a subsidiary of Genting International, and Paramount Digital Entertainment, allowing for Playtech licensees to host games featuring Paramount Pictures brands, “Gladiator” and “The Untouchables.” The company intends to sign 8 more license agreements, as part of its emphasis on well established and reputable online casino operators. The team has partnered with Italian operators, and is currently working on a poker network for the Italian market.
Weizer commented, “This has been another outstanding quarter for the Group. With significant new license agreements signed during the period and with the soft launch of the Asian P2P games and flash poker product, Playtech is well positioned to grow in Q3 and beyond.”
It is no coincidence that since its founding in 1999 that Playtech has become the leading software for online casinos and other gaming websites. Playtech is incorporated in the British Virgin Islands, its head office located in the Isle of Man. The group mainly operates out of Estonia, Bulgaria, the Philippines and Israel. Playtech has offered a platform in which gaming activities such as online casinos, Bingo, online poker, mobile gaming, fixed-odds games, live gaming and land based kiosk networks may function as “stand-alone applications.” Of the sea of software developers, Playtech offers the widest variety of games, most efficient random number generators and technical systems testing, and state of the art graphics, making every gaming experience enjoyable.
The gaming community was hit with yet another count of fraudulent activity recently. It seems that Casino Webcam, based in Costa Rica, has been added to the list of rogue online casinos. Scrutiny against the site arose when one of its users reported that he has gone some time without seeing a payout for his $38,000 in winnings. The user has enlisted the arbitration of Casinomeister, a website dedicated to the fair treatment of internet gamblers.
Casino WebCam had introduced one of the newest advancements in online casinos. Its users could play live with live dealers, dice and reactions via webcam. Players could also chat with the dealers, providing a very realistic style of play. This made the site safer all around for its users because they did not have to worry about random number generators. It also gave its U.S. Players legal clout in that they were literally gambling out of a casino in Costa Rica. The online casino offered substantial bonuses and promotions with a 15% NETeller bonus every day. There have been very few complaints about its operating methods until now.
So what happened? The user with the dispute against Casino WebCam claims that he has requested a payout for several months now with no luck. The online casino only allows its players to withdraw $5,000 per month and was initially responsive to the user’s requests for his payout. However, communication with the user and Casinomeister was severed. They have been unable to get a response from the facility through e-mail or telephone. Since soliciting the aid of Casinomeister, the online casino has inexplicably gone offline. Those wishing to access the site at casinowebcam.com will see a blank page stating that the site has been blocked. It has been reported that the manager and owner of the internet gambling site has gone AWOL.
Casinomeister allows internet casino users free arbitration with any online casino, providing that it’s a legitimate complaint. There is a $500 penalty for any illegitimate findings. If the site is found, as was the case for Casino Webcam, to be non-responsive or fraudulent the website is then added to a rogue list. Since the beginning of this year, 103 complaints have been made against various online casino establishments.
This also illustrates why it is important for the government to consider internet gaming regulation. To further prevent the exploitation of online gamers and their finances, certain laws should be put into effect monitoring the activity of these gambling websites. Despite what is said, internet gambling is not illegal, so long as financial institutions do not provide a means for gamers to pay for this activity. It is not unreasonable for gamers to expect federal legislation to be put in place to protect these finances the government claims to have jurisdiction over.
The amount of fraudulent activity has significantly increased since the industry flourished. For this reason it is important that gamers protect themselves when choosing a casino to play in. Online casino users should regularly check in with blacklists and thoroughly research a facility before using it.
