The Interactive Media Entertainment and Gaming Association, or iMEGA, did not receive the ruling it was hoping for in its last legal conflict with U.S. legislation and the UIGEA, but it was given some political clout with which it will continue to battle for the legalization of online casino gambling. iMEGA intends to launch a further attack on the UIGEA before the end of September.
iMEGA had filed notice on April 1st of this year in the Third Circuit Court of Appeal that which questions to dismissal of the suit iMEGA vs. Keisler (Acting USAG) among others, further challenging the UIGEA.
President Ed Eyden announced that iMEGA, an organization dedicated to the advancement of the internet, is preparing for its case. iMEGA intends to file another suit with the Appeals court before the limit for litigation expires.
iMEGA was founded in 2007 with the idea of continuing the growth of the internet and the online casino gambling industry by cooperating with the government at all levels as well as concerned citizens and corporations to make constructive and practical decisions in the industry. The organization promotes “improvement, openness and freedom as the path to even greater advantage of this medium for all.”
The upcoming suit is expected to run over well into 2009, due to other organizations who may wish to participate and ask for an extension. iMEGA is filing for an “amicus briefs” from third parties who have gathered crucial information to facilitate the eventual decision, and forcing judges to think practically about the subject.
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.”
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.”
Cantor Gaming continues to appease its users, and now offers professional blackjack, deemed Statjack. The interactive blackjack game provides live guidance on the best selection to make, counting the cards for players, making play more enjoyable and most profitable.
Manu Gambhir, Marketing Director of Cantor Gaming said, “We have a lot of enthusiastic players at our casino who enjoy excitement of blackjack a never-before experience. We wished to produce a direction for every blackjack users to take pleasure in this same stage of excitement and that’s how Stackjack was started. In the design procedure we put thrilling new bets permitting players to bet on the Dealer’s hand – these bets have turned out to be very popular with high rollers and new players alike.”
With the new additions to their gaming software, Cantor Casino offers players what no live casino can. The new form of betting, making wagers on the Dealer’s hands gives players even more opportunities to win. Moreover, there is no live casino where players would be allowed to count cards, let alone a provided means to do so.
The guidance feature provides users with a “basic strategy” leaving novice players with further understanding of the game and how to beat it. Essentially, players are given a digital advisor, directing them in playing the game and explaining which some plays are good and others are bad.
Finally, the new software allows members to view the percentage of other players who have chosen the same alternatives when dealt the same cards to facilitate decision making in the game. There is no question that Cantor will continue to lead the online casino industry, as it seems to always be one step ahead in the game.
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.
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.
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.
Paf, a Finnish online casino operator, has joined with Ethoca’s fraud management network to ensure the safety of its users. Ethoca has brought more awareness about fraudulent activities to the internet gambling community, urging that it does not stop at the use of credit cards.
Ethoca has fraudulent activity on the internet, especially in online casinos, occurs in many forms of dishonest activity such as in the case with Paf where the company was experiencing a slew of “chip dumping.” When Paf joined with Ethoca, it was brought to the management’s attention that players were intentionally losing for their chips to the remaining players in a group. Now it is possible for Paf to identify suspicious player activity before it jeopardizes profits or player confidence.
Paf, being an online casino company that processes hundreds of thousands of transactions per day, has become an ideal platform for fraudulent activity. It’s partnership with Ethoca is crucial in the survival of the company in that they may share their experiences with others who have encountered the same activity and encourage a wider community of anti-fraud gambling websites.
Marko Hieto, head of fraud and forensics for Paf commented, “As a gaming company, fraud is far more than a chargeback. It is any unwanted activity that threatens our bottom line and impacts the integrity of the environment of our loyal players. Paf has been building a powerful internal fraud team to tackle these activities and we see Ethoca as the perfect partner to keep chip dumping at bay.”
Pete Session’s HR 6663 has gained the support of the Remote Gambling Association, contrary to the Poker Players Alliance having said that confuses the issue of internet gambling. The RGA has endorsed the Unlawful Internet Gambling Enforcement Clarification and Implementation Act of 2008, and in doing so, caused the European Union to launch an investigation into the discrimination against European online casinos by the U.S. Department of Justice.
The issue of U.S. discrimination has not been addressed by either side of the debate thus far, and the RGA feels that the internet gambling situation has been worsened by U.S. companies who remain open to the market without consequence. The European Union’s investigation is due to reach a decision by the end of this year which will decide whether or not to seek further arbitration with the World Trade Organization. There could be punitive action against the U.S. if the European Union wins, although as we’ve seen with many other countries involved in the same matter of dispute, it could be years before results are made.
If HR 6663 is passed, however, and prosecution against online casinos that withdrew from the U.S. market after the UIGEA was signed ceases, tensions could be considerably lessoned.The RGA’s chief executive, Clive Hawkswood states, “We took our case directly to U.S. legislators who have heard out message, understood the inequity of the Department of Justices’ stance, and appreciated both the unfairness in their enforcement policy and the risk to U.S. priority interests and its reputation if the policy was pursued further. This could be a major step in demonstrating that the rule of law and integrity of the WTO are still important in Washington.
“Although this is a good sign, unless and until the legislation is passed and comes into force, all EU operators who have ever taken business from the US market are potentially still under threat of prosecution and we will be forced to pursue this matter as far as it needs to go to obtain a sensible solution and fair justice,” said Hawkswood.
Hawkswood went on to express his assent to HR 6663’s supporters as he feels they are justified in their decision to avoid an unnecessary dispute with European countries, and to enforce the principles of fairness and decency in the trade relations between the U.S. and the European Union.
In addition to the UIGEA Clarification and Implementation Act, Congressmen Robert Wexler and Steve Cohen sent two separate letters to the U.S Attorney General, urging that prosecution of European Union companies for activities prior to the UIGEA be stopped, saying that it could lead to a dispute between the U.S. and the E.U.
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