eCOGRA Launches Affiliate Trust Program

by Hillary LaClair, Senior Editor

              With the online casino market always increasing, it is more crucial than ever that organizations like eCOGRA be used to monitor internet gambling websites. eCOGRA has broadened its oversight, as it will now be available to affiliate programs.

                eCOGRA’s goal is to ensure online casino gamblers fair gaming, player protection and responsible operator conduct. Upon joining the list of eCOGRA’s approved websites, internet casinos and now their affiliates will be subject to monthly inspection. If a gambling venue meets the operators’ standards of “Generally Accepted Practices,” they will be award a seal of approval. Gamers will recognize the Safe and Fair Seal that many internet casinos proudly display. Affiliate programs can now obtain the new eCOGRA Affiliate Trust seal which identifies said website as one that maintains the same standards of fairness and efficiency.

                In order to display the new Seal, affiliate programs must show that their program “establishes, enforces and monitors best practice standards.” More specifically, they must be able to demonstrate that they accurately calculate affiliate revenue, pay their affiliates on time, and accurately link players to affiliates.

                Fortune Affiliates of the Fortune Lounge group is the first to tout the Seal after an in-depth inspection of the website. “We are extremely honored to receive the very first Affiliate Trust Seal,” a spokesperson said. “The process was a tough one, but as our Affiliates have always known, we have always held ourselves to high standards.”

                The spokesperson continued, “Although there are others monitoring affiliate programs, eCOGRA provides the most public, structured and formal on-site approach, ensuring compliance with consistent standards through regular monitoring and full annual reviews carried out by highly qualified inspection and auditing teams.”

                Louis Fabiano, founder and president of CasinoAffiliatePrograms.com was not at all surprised by Fortune Affiliates recent accreditation. He commented, “One of CAP’s premier certified partners, Fortune Affiliates is one of the largest, oldest and most respected groups in the Microgaming family, and fully deserving of being the first affiliate program awarded with the prestigious eCOGRA seal.”

                The accreditation process is a painstaking one, as the company has set the highest standards in the industry. eCOGRA Ceo, Andrew Beveridge stated that the organization goes so far as to visit the physical locations of the affiliate programs in order to collect accurate player and affiliate data and ensure that everyone is properly taken care of and paid as they should be.

                “The eCOGRA Affiliate Trust Initiative is all about actually going and visiting the management and operations of affiliate programs, gaining direct access to check relevant player and affiliate data to ensure that affiliate members are being treated fairly.”

                In addition to the constant regulation of the online casinos, poker rooms and affiliate programs that display a Seal, a player dispute mediation service and an advocate are always readily available for arbitration to internet gamers, where it is legal. Accreditation is open to all online gambling operators and affiliates. More information about the Affiliate Trust program and their accepted practices may be found at www.ecogra.org/affiliates.

Former Bodog Staff Say the Website is in Danger

by Hillary LaClair, Senior Editor

                After allegations that Bodog will have tough time finding sufficient payment processors, the online wagering website has tried to assure its users that recent cutbacks involved its support companies rather than Bodog itself. However, according to some former staff, things aren’t as peachy as they seem.

                Following the recent management change, many long term employees have expressed their frustrations with the organization. Gambling911.com reports that in job-related posting forums, employees “paint quite a grim picture of the company, different than what we observed in the last six years.”

                The first indications of an internal conflict at Bodog were seen after one branch of the internet gambling site was terminated overnight. Bodog Fight, which was the organizations Mixed Martial Arts enterprise, was apparently unable to pay some of its workers and uphold a contract agreement, leading to its eventual demise.

                Matt Lindlad, a Greco-Roman wrestling Olympic silver-medalist reports that he signed on with Bodog Fight, in a one year contract that included three fights. Since then, Lindland claims that Bodog never allotted him two of the three fights in the agreement, and that he is still owed money.

                “I lived up to my end of the bargain,” says Lindland. “I haven’t fought since April, anticipating two more fights with Bodog.

“My contract was with Sixth Row Productions. Bodog and Sixth Row intermingled funds. I mean, I could go after Bodog Fight, but they have no assets. They set up these shell companies and they’re not paying their fighters. They don’t honor their contracts. It was very disappointing.”

                The reports don’t stop there, however. Many have said that Calvin Ayre got out of the game at the most opportune time, freeing him from U.S. Department of Justice laws and the internal issues with the company’s management. According to a former staff member for Bodog Music’s “Battle of the Bands” program, employees were given a divided share of nearly one million dollars to deposit in several Bank of America accounts so that the money could be easily transferred from the U.S. without attracting unwanted attention from the IRS.

“I know that outside of the gambling industry no one respects this brand and no one gives them any credit for their success as large as they might be. Business is business and Bodog had to do what they had to do to protect themselves but people have a right to know they are putting themselves at risk when working for an online gambling company,” the former employee reports.

More layoffs are expected to ensue in the near future, leaving more angry employees with comments on the site’s integrity. Sources say that Bodog will remain open to the U.S. internet wagering market via NFL and College Football season, but that the chance of Bodog leaving the states is very good.

                “It’s really bad at Bodog,” opined a source for Gambling911, “They want to pay people (customers). That’s not the issue. The problem is they can’t find processing. The processors are out there but none of them want to deal with Bodog right now because they are considered such a high profile target.”

Mansion Group Launches New Online Bank

by Hillary LaClair, Senior Editor

                A new form of payment just opened up to online casino gamblers, as the Mansion group has announced its new online bank under the oversight of the UK Financial Services Authority. Ivobank, owned by the Sampoerna family, is the first independent bank to launch since the “dotcom boom” in 2001. It is also the first financial institution to be authorized and regulated by the UK FSA.

 

                Ivobank offers a fast and secure method of online payment and money transfer, particularly for internet gamblers. Its customers will now be able to instantly transfer money from an online account to friends and families overseas, making it the ideal form of payment to online casinos. The Sampoerna family expects to see over one million customers within the next five years. Ivobank Managing Director, Timothy Sawyer, says that the bank, while available to anyone, was created with internet gamblers in mind.

                “The online gaming industry has developed rapidly in recent years, but the financial services supporting it have not kept pace,” said Sawyer, “Many online businesses and customers have been ill-served to date, resulting in relatively high costs and relatively low levels of service. Ivobank aims to plug the gap by offering instant and highly secure online payment services, combined with competitive interest rates.”

                Competitive rates, indeed. The bank is offering interests rates of up to 4.25% AER on deposits, and all monies moved by customers will be insured and transferred immediately as part of a 24/7 operation. Foreign exchange will also be available with a lower transaction fee.

                Anyone may apply for an online account at Ivobank’s website, free of charge with no required deposit. Account holders will then be given access to a digital debit card, or Ivobank Virtual Card, used to make online purchases. The card can be securely used online wherever MasterCard is accepted. Ivobank also has around-the-clock customer service available by means of telephone, e-mail or Live Chat.

New Site Dedicated to US Casino Players Opens

by Hillary LaClair, Senior Editor

              A new alternative has opened up to online casinos players in the U.S. The name says it all with Casinostakingusaplayer.com, whose mission statement is to provide U.S. player with all the necessary information needed to decide on an internet casino. In addition to software reviews, they inform potential users of the best online casinos remaining in the American market, although this information can be difficult to access when visiting the site.

                The site will also show casino players which deposit methods are still available in the slimming options for the U.S. While the website stresses that it wishes to keep all players informed, they put a special emphasis on the U.S. market, where it can be extremely difficult to find a good online gambling venue. Spokesperson Walt Emerson says, “We really felt as though there was a need to inform first time players about some of the ins and outs of the online casino world. We know the roadblocks that American consumers run into when trying to get started. After all, we were new players at one time too!”

                CasinosTakingUsaPlayers has made sure to list appropriate gambling platforms for both highrollers and novice players alike. Information is provided for online poker rooms and available sportsbooks as well, where players will find bonus information and site reviews. The site caters to gambling consumers of all kinds. “Players on sportsbooks and poker rooms need to know that they are available for bonuses too!” says Emerson.

CasinosTakingUSAPlayers shows the difference between which sites accept certain forms of payment, such as prepaid cards or eWallets. Perhaps the handiest feature, however, is the USA Players Guide which answers many questions that Americans have about online gambling policies in the U.S.

                Emerson went on to explain, “Players are our number one priority. We know they want the most bang for their buck. That is why our USA casino guide makes it easy for them to get all the bonus information they could ever need. Our reviews are second to none, and our visitors will find the lists to be very useful. Our staff has done the work to take the guess work out of choosing a casino.”

                The reviews are not as extensive as the site claims. It’s a good stop for U.S. players to explore their options, but it is always advised that an online casino player thoroughly research each casino on their own to ensure to safety and security of the site. It is important to remember that many affiliate sites, no matter how reputable, are guilty of providing biased reviews and information because they’re getting paid to refer online casino players to various sites. The best way to ensure one’s safety is to research what other gamers have to say about a particular site, and share experiences.

The site can be quite difficult to navigate, as guests are redirected to sister sites when clicking on virtually any resource provided, and each site is overcrowded with links. Still, it’s one of the better resources for new players wishing to explore their choices.

American Indian Casinos at All Time Low When it Comes to Increased Revenue

by Hillary LaClair, Senior Editor

                Tribal casinos based out of Las Vegas Nevada have reported that their annual growth rate is the lowest it’s been in the past twenty years. Casino City’s Indian Gaming Industry Report states that casinos, while seeing a 4.9 percent increase from $25.3 billion to $26.5 billion between 2006 and 2007, it was the lowest year-over-year figure yet reported in the industry. It certainly has not seen the growth that the online casino industry has experienced over the past year.

The report discussed several reasons that may have led to the slowly decreasing interest in land casinos, the first being the hurting U.S. economy. It has also been said that public policies prohibiting gaming expansion may have also resulted in the lower percentage of growth this past year. There were several reasons not discussed in the statement, such as the growing popularity in online casinos, or the recent decision to tax U.S. citizens in American Indian reservations.

Alan Meister of the Los-Angeles based Analysis Group that released the report said, “Indian gaming tends to be less impacted by the general economy. Indian gaming tends to be more regionalized and localized.”

Still, some nongaming areas of Indian casinos have seen substantial increase over the year.  Nongaming revenues rose 9 percent from $2.9 billion to $3.1 billion in 2007. Additionally American Indian casinos in Oklahoma grew 22 percent in 2007.

“It’s still a healthy industry,” said Meister. “Oklahoma draws customers from states like Texas and Arkansas, which don’t have a lot of gaming opportunities. That’s why you see their figures climb.”

Excalibur Offers Online Casino Style Poker

by Hillary LaClair, Senior Editor

                Online poker is essentially expanding into live casinos like Excalibur, where players are being introduced to a fully automated poker room. Much like one would find in an online casino, there are no cards, no chips and no dealer.

It seems that in order to generate more public interest in poker at live casinos, the resort has attempted to make the game feel more like an online casino, with its electronic poker tables. Excalibur will run a trial period using the automated poker table for six months in order to evaluate customer approval.

The Nevada Gaming Commission gave its assent to PokerTek to field test the system with 12 games at the table. Excalibur is not the first to implement this technology into live casinos, as PokerTek has over 230 machines running, 25 of which are in Casino du Montreal.

According to Todd DeRemer, Vice President of Casino Operations at Excalibur, “In the past three years, interest in poker has declined significantly at the Excalibur. We have tried to figure out how to make the room successful and to fit our customer. We’ve never run high-limit games. We don’t have the clientele with that type of interest.”

Unfortunately, more than 40 dealers have lost their jobs at the expense of the electronic tables to which DeRemer responded, “A majority have been placed, and we’re working diligently with everyone else.” Some dealers were transferred to different casinos, while other were offered other positions at Excalibur.

The risks of such an operation and the loss of employees have not concerned Excalibur’s management. DeRemer concludes, “We like the appeal of the technology. We think that will be a draw for our casino.”

EiG Has Impressive Panel for Conference in Barcelona

by Hillary LaClair, Senior Editor

                European Interactive Gaming, or EiG, is due to hold another conference in Barcelona to discuss, among other things, the legal standing of internet casino gambling in the United States. The debate will include an impressive legal team to lead the discussion.

                Clarion Gaming was appointed to organize the conference, announced this week several U.S. experts and poker operators who run legal businesses within the U.S. that will join the panel and discuss U.S. domestic and international law.

                At the top of the roster is Frank Catania, eCOGRA’s independent director and President of Catania Consulting Group and former Assistant Attorney General. Catania is well known for his extensive knowledge of regulatory law and the UIGEA. Catania and his team have dedicated their time and service over the years to obtaining access to the legislative, administrative and regulatory processes on gambling issues. Several publications have been made by Catania on a wide variety of casino gaming and government-related topics, and was a key element in drafting interactive gaming regulations for many online casino operations. He joins the panel to discuss the UIGEA and its impact on online casino operations overseas.

                Mark Hichar will also be featured on the panel. Hichar is a partner at Edawrds Angell Palmer & Dodge LLP,  team of over 75 M&A lawyers who specialize in advising public and private buyers and sellers.  In the conference at Barcelona, he will examine proposals to legalize intrastate regulated i-gaming industries.

                Mark Mendel, partner at Mendel-Blumenfeld LLP and Lead Council in the dispute between Antigua, the World Trade Organization and the United States, involving America’s discrimination toward overseas internet casino gambling, will discuss the impact of international punitive action. The discussion will involve the World Trade Organization’s ruling in favor of Antigua and what the U.S. plans to do next. Mendel-Blumenfeld LLP is a law firm whose practice areas include corporate and securities law, public law, employment law, litigation and more importantly international trade law and internet gambling law

                CEO and Co-Founder of Pureplay, Jason Kellerman is also featured on this year’s roster where he will inform operators on what they need to know regarding the legality of internet gambling in the U.S. and other legal forms of business for i-gaming.

                Finally, the panel will feature Tony Coles, Partner at Jeffery Green Russell and Vice President of the International Masters of Gaming Law who will oversee debate on these issues and how the results of the upcoming election in the U.S. will impact i-gaming companies.  The panel will also prepare for the various outcomes of the general election, or changes in U.S. legislation in favor of internet gambling, if they should occur. The IMGL is a non-profit organization comprised of attorneys, gaming regulators and gaming executives dedicated “to the education, advancement and gaming law profession and exchange of professional information concerning the local and global practice and development of all aspects of gaming law.”

                The conference will be held between September 23 and September 25th this year.

Online Poll Shows More Support for Online U.S. Gambling

by Hillary LaClair, Senior Editor

                A recent survey conducted by Andrew Curtis, the infamous Vegas aficionado, showed that there are an enormous percentage of people who support online casino gambling in the United States. The poll, posted on Las Vegas Advisor.com appealed to 5,000 voters.

                Not only did the survey show that there is a strong approval rating for internet gambling, 68 percent over 32 percent, but also the reasons for which people voted in favor of online casinos. 27 percent of those who expressed their support for internet gambling said that they themselves didn’t play, but felt that it was an American’s right to do so.

                The poll which ran from July 30th to August 12th inquired of participants, “Should online gambling be legalized? Have recent scandals soured you on ‘gambling in space’?” The responses which followed were not mere “yes” or “no” answers, but a series of choices:

                “Yes, although I don’t like to play online myself, I think everyone should have the right to.” (1275 votes – 27 percent)
                “Yes, and I would play online for money if it was clearly legal.” (1104 votes – 23 percent)
                “Yes, I never stopped playing online but would be happier if it was definitely legal and regulated.” (848 votes – 18 percent)
                “No, there have been too many scandals and I don’t trust that it can be regulated.” (839 votes – 17 percent)
                “No, I think online casinos result in underage gambling and addiction.” (733 votes – 15 percent)

                The some 5,000 votes that this particular poll attracted made the survey one of the most participated in in the Las Vegas Advisor, although its management says that the yes/no percentages were more narrow than they’ve seen in other surveys.

                “With all three Yes categories totaled, 68 percent were in favor of legalization, while 32 percent were opposed via two No categories,” reports Curtis, “That’s a convincing majority, but less than the 75 percent – 92 percent (in favor) that we’ve seen from other sources.” Curtis is thought to have alluded here to a major Wall Street Journal poll conducted earlier in the year.

                Curtis went on to say that the several responses in the poll may have resulted in the differing outcome between the two sources. “For starters, considering the 17 percent who voted no due to ‘recent scandals,’ it could be argued that as a high 85 percent would be in favor if online gambling was properly regulated, “ he said. “But it also illustrates that online problems (hole-card spying in poker likely being the most prominent) are not going unnoticed.”

                Curtis is referring to the latest UltimateBet and Absolute Poker scandals, in which the sister sites were found to have its employees abusing their ability to view players’ hands.

                The website thought that it was interesting to note that the 15 percent of people who were against internet gambling due to the underage and problem gambling issues existed on a website devoted to gambling in Las Vegas.

                Curtis finished his report saying, “It’s a result that causes us to reflect on earlier plans to act as a go-between for players and reputable sites. We don’t foresee reliable regulation in the near future, but responsible third-party oversight seems to be the next best thing – but only if that third party had enough clout with the online sites to exert influence.

Jesuit Priest Sits on Fence Regarding Legalized Casino Gambling

by Hillary LaClair, Senior Editor

               The Catholic community was in an uproar last week as Jesuit priest Richard McGowan did not take a stance on the issue of legalized casino gambling in Guam in a heated forum debate.  McGowan, an associate professor at the Carol School of Management, was enlisted by Guam Greyhound wishing to build a casino at the Tamuning Dog Racing Track.

                He shocked his audience with his unorthodox response to the issue that contradicts the principles of the Catholic Church. “I will not say one way or another how you should vote on this,” said McGowan, who continued to provide several examples of success in the legalization of offline and online casino gambling and going against Archbishop Anthony Apuron who upholds the staunch Catholic line that gambling should remain unlawful in the island of Guam.

                McGowan alluded to both Atlantic City and Cairo, where casinos are regulated by the government to only permit entry to those holding foreign passports. A similar concept has been suggested in legalizing casino gambling in Guam, in which entrance would require an international departure ticket.              

                While McGowan chastised Atlantic City, mentioning that divorce and bankruptcy rates increased substantially after the legalization of casino gambling, he countered his statement arguing that the industry generated $400 million in tax revenue. Archbishop Apuron soon responded that McGowan’s was not an expert opinion, although his studies were conducted at Harvard.

                A vote will take place on November 4th that will decide whether or not Guam will get its casino. Guam Greyhound has expressed no intention in backing down on the issue to change the law and legalize gambling within the city.

Is Internet Bingo Affecting the Land Casino Market?

by Hillary LaClair, Senior Editor

                The recent struggles that land casinos have faced in the industry, such as smoking bans, restrictions on slots machines and tax increases have not made an impact online casinos and bingo halls, according to the Telegraph this week.

 

                The UK based newspaper went on to say that the online bingo industry is generating revenues of some 600 million GBP. 888.com chief, Gigi Levy added, “Online bingo is booming everywhere. But it’s a mistake to link it to traditional bingo, because that’s a completely different proposition. Our women [online customers] are young, above average income and typical internet consumers. Land-based bingo is about elderly people, smoking and aggressive slot machines.”

                Levy mentioned that 888.com’s ladies’ bingo profits had quadrupled from their previous quarter, and suggested that the recent drop in land casinos could be due to the lack of exclusively female-oriented bingo.

                “People are cutting back on leisure, but they are staying home and spending only in the low tens of pounds a month with the chance of winning some extra cash,” said continued, “The beauty of it is there are very low costs and a huge number of players, so despite low margins, it is very profitable.”

                Based on a UK Gambling Commission study, the amount of online bingo participants increased from 250,000 to 500,000 in just one year in 243 registered and licensed bingo websites. The Telegraph further reports on newer bingo operators like ITV’s Emmerdale-themed website, the Sun’s new BSkyB, and even some games whose prizes are sex toys. Ann Summers is hosting a new bingo game with a “series of outrageous new nicknames,” where winners can exchange the number 66 from “clickety-click” into “kinky tricks.”

                A young female online casino player told the Telegraph that she preferred playing online because of more attractive nature of online bingo websites that offer much of the same features, “…but you can make a noise without being shushed by the old ladies, play in your pajamas and start a game at any time of the day.”

                The woman continued, “There are so many free bonuses and prizes. I feel sorry for land-based bingo because it’s really suffering, but online has so much more to offer.”

                Some still feel that much of the revenue lost in land casinos is due to the ever growing online market, but Steve Baldwin of the Bingo Association states that both are capable of flourishing in the market. “When online bingo was invented, land-based bingo feared the competition,” said Baldwin. “Now they have realized there is only a 10 percent crossover of their players. Within a year, there had to be some consolidation. People will start to value recognized online brands and recession might not be a bad thing, as the ‘me too’ brands won’t stay the course.”

                Because newer bingo websites are emerging into the market daily, and within a year seeing over 12,000 consumers, this may not be the case for land casinos. Comparatively, it costs much less to gamble in online bingo halls than it does any other form of internet gambling, and that is what many feel is drawing more people from the land casino market.

                The article ended with a young woman who opined, “Online is so easy and anonymous. I wouldn’t ever go back to club bingo. If it was a number, you’d have to call it 28 [in a state], but online bingo is like a number 20.”