Online Gaming News Weekly Review

Industry News

Online Gaming News Weekly Review The top news in online gaming for April 11 - 18th 2008

FRANK LAUNCHES NEW ATTACK ON ANTI-ONLINE GAMBLING REGS

New bill seeks to stop implementation of unworkable UIGEA regs in its tracks

Following the recent Congressional hearings in Washington on the Unlawful Internet Gambling Enforcement Act, few can doubt that government agencies and the financial services industry required to police it have a monumental task in thinking up practical ways to implement this flawed law passed by Congress in 2006.

This week that task may have been made tougher by new legislation - H.R.5767 - introduced by influential House Financial Services Committee chairman Barney Frank and Republican presidential aspirant Ron Paul.

According to a statement from Frank and Paul, HR 5767 introduced this week seeks to prohibit the Federal Reserve Board of Governors and the Treasury secretary from "proposing, prescribing, or implementing any regulation that requires the financial services industry to identify and block Internet gambling transactions."

If approved, the Bill will effectively curtail the further operation of the UIGEA.

Frank's new initiative comes after intense criticism of proposed regulations drafted by government agencies to give teeth to the Unlawful Internet Gambling Enforcement Act, which was designed to disrupt financial transactions with online gambling companies but places the burden of enforcement on the U.S. financial services industry.

Both Congressmen claim the UIGEA unduly infringes upon personal freedoms. "The ban on Internet gambling infringes upon two freedoms that are important to many Americans: the ability to do with their money as they see fit, and the freedom from government interference with the Internet," Representative Paul said.

Critics protest that the UIGEA is impossible to implement due to ambiguities in its language and a serious lack of definition, together with the impracticality of tasking an already stretched financial services industry with its complicated enforcement across a variety of financial and in many cases international instruments.

Congressman Frank has highlighted these flaws, saying: "I believe that even those who agree with it ought to be concerned about the regulations' impact," and pointing out that the recent Congressional hearing had showed that "the regulations are unworkable for the financial services industry."

Federal government executive Louise L. Roseman to an extent confirmed that, warning that banks had expressed uncertainty about implementing the law at the hearing on April 2 (see previous InfoPowa report) and commenting on the difficulty in drafting effective supporting regulations.

"The payment system, frankly, isn't well designed to be able to identify this activity," Roseman said.

Congressman Frank has another card ready to play in his fight against the UIGEA. His HR 2046 Internet Gambling Regulation and Enforcement Act currently has 48 co-sponsors and seeks to regulate and licence online gambling in the United States, raising tax revenues at the same time as controlling the popular pastime of Internet gambling. If eventually passed, this bill could effectively overturn the UIGEA, although it is still in need of more political support.

A spokesman for the anti-UIGEA pressure group Safe and Secure Internet Gambling Initiative, Jeffrey Sandman applauded the new bill, saying: "The Frank-Paul bill would stop the U.S. government from taking any further steps on regulations that would require all of the country's financial institutions to block Internet Gambling payments."

"It's a bold move, but a necessary one, in light of the warnings from the Treasury and Federal Reserve that they did not know how to write regulations to solve the problems created by UIGEA. Further, witnesses representing a broad spectrum of the financial services community unanimously stated that the current ban on Internet gambling is dangerous to the payments system and ineffective in stopping people from using the Internet to play poker, make bets on horses, or engage in other types of wagering."

BANKERS APPLAUD ATTACK ON UIGEA (Update)

"We certainly appreciate the interest," says banking association

The Washington DC publication The Hill reports that the banking industry is cheering the fresh assault on the UIGEA (see previous InfoPowa report) mounted by House Financial Services committee chairman Barney Frank (D-Mass.) and Congressman and presidential aspirant Ron Paul (R-Texas).

Congressman Frank has teamed up with the libertarian-minded Paul, who crusaded against big government during his recent White House bid, on legislation to block the contentious 2006 legislation by forbidding federal officials from writing rules to implement it. Those officials have already admitted that the regulations supporting the UIGEA are proving difficult to draft, with strong opposition from the financial industry that is required to act as policeman for the federal government.

“I don’t know what can be done or will be done legislatively, but we certainly appreciate the interest,” said the top lobbyist for the American Bankers Association , Floyd Stoner, of the Frank-Paul legislation.

Frank’s new legislation attacks the practical hurdles regarding the implementation of the Unlawful Internet Gambling Enforcement Act, rather than its legitimacy.

“While I do disagree with the underlying objective of the act, I believe that even those who agree with it ought to be concerned about the regulations’ impact,” Frank said in a statement. He argued that the regulations proposed by the Federal Reserve and the Treasury were “...impossible to implement without placing a significant burden on the payments system and financial institutions.”

Supporters of banning online gambling have been quick to respond to the latest attack on the UIGEA, vowing to beat back the new effort to undo the law.

“Our office will vigorously oppose any efforts to repeal or water down any parts of the [federal law],” said Ryan Patmintra, a spokesman for Senate Minority Whip Jon Kyl (R-Ariz.), who was a chief sponsor of legislation to ban online gambling in the Senate.

“It’s another attempt to take apart a bill that was passed overwhelmingly by the House,” said Tom McClusky, the vice president for government affairs at the Family Research Council , which had pushed hard for the federal crackdown. He noted that 48 state attorneys general had pushed for the federal law to enforce their state bans.

The National Football League and other professional and amateur sports organisations are also gearing up to fight Frank's new law, threatening to “vigorously oppose” the legislation, said Martin Gold, a lawyer at Covington & Burling and a longtime lobbyist for the NFL.

Federal law is murky on what constitutes illegal gambling online. Congress stopped short of defining it clearly in the 2006 law, directing the federal government instead to enforce state laws restricting such activities. It also excluded online horserace betting from the crackdown.

Now, writing rules to implement the law is bedeviling regulators. “The challenge we have is interpreting … federal laws that Congress itself isn’t sure what they mean,” Louise Roseman, a Federal official, testified on April 2 before Frank’s committee.

The banking industry has flooded the Treasury and the Fed with complaints about their proposed rules, arguing that it is too difficult for banks to sort out payments for legal wagers — such as on horse races — and those that are illegal.

“The banking system is just not set up to sort out whether one payment is a legal payment and one payment is not,” said the director of congressional affairs for the Independent Community Bankers of America , Steve Verdier. “We think the [Frank-Paul] bill would give everyone the chance to take a breath.”

Charles Rothfeld, a lawyer at Mayer Brown who has argued several cases before the U.S. Supreme Court, said that the Frank-Paul legislation is not likely to pose any constitutional problems. “Congress gets to say the way in which its legislation is implemented. If it wants to issue legislation to preclude the promulgation of regulation, it can do that,” he argued.

The Hill reports that aside from the banking industry, the Frank-Paul bill also has support from gambling aficionados and firms.

The American Gaming Association , which says its members do not include online gambling operators, has not taken a stance on the bill and remains "neutral" on the 2006 law. However, the association supports a bill sponsored by Representative Shelley Berkley (D-Nev.) to commission a one-year study of online gambling by a third party.

BRILLIANT MAIDEN RESULTS FROM ASIAN LOGIC

Recently-floated online and land-based gaming company turns in golden results

Recently listed gambling group Asian Logic plc has produced an impressive set of maiden results that include a 210 percent growth in pre-tax profits and annual revenues up 95 percent.

The company, which has a close association with online gambling software developer Playtech, reported pre-tax profits of $12.4 million, 210 percent up from the 2006 comparative of $4 million. Annual revenues rose 95 percent to $54.3 million (2006: $27.8 million) with average daily casino turnover up 67 percent to $6.2 million (2006: $3.7 million)

Average daily poker rake and tournament fees soared 14 fold in 2007, and average net gaming revenue per day increased 57 percent from $92 243 in January to $145 249 in December.

AsianLogic floated on the London AIM last December, raising GBP44.3 million and has since embarked on an energetic acquisition strategy that has seen it acquire the Asian Poker Tour, secure a licensing agreement with Philweb and achieve the rollout of two additional casinos and one poker room powered by Playtech.

A statement from the company advised that current trading and outlook were positive and that further agreements were in progress to acquire a 25 percent stake in a long established European online gambling marketing firm; buy an Asian e-gaming operator and obtain a strategic stake in a quoted Asian gaming company with a view to developing a range of joint venture projects.

5 YEAR GERMAN ONLINE GAMBLING DEAL FOR CHARTWELL

Saxony-licensed online casino operator chooses Canadian gambling software

One of the German states will soon have an online casino operation up and running. Calgary-based online gambling software developer Chartwell Technology has revealed that it has been successful in clinching a deal with Spielbanken Niedersachsen GmbH (SNG), the exclusive Lower Saxony state licensed and regulated casino operator, for an online gaming system.

SNG plans to launch its Internet gambling venture to complement its existing landbased business. The agreement is for five years and calls for the initial launch of both casino and soft games, with provision for the roll-out of additional gaming products to SNG sister companies as and when locally permissible in Germany. The launch of the Flash technology casino is scheduled for early next (May) month, with a preview currently available at www.casinoland.de

Owned by leading international gaming operator Casinos Austria International, which itself has been involved in online poker development with Sweden's Svenske Spel and Boss Media recently (see previous InfoPowa reports), Spielbanken Niedersachsen has been providing games of chance to the people of the German Federal State of Lower Saxony for almost 20 years.

Last year SNG's gross win exceeded Euro 94 million. The company holds the exclusive state licence to offer internet gaming to the residents of Lower Saxony, the second largest German state, with a population of 8 million inhabitants.

"We are delighted to provide our gaming system for SNG's launch into online gaming" said Darold H. Parken, President and CEO of Chartwell.

"We have gained an exceptional industry partner with a well established gaming business, helping to ensure our future growth in the key regulated German market. It has always been our strategy to align Chartwell with blue-chip licensed operators, and in SNG we have a perfect example" Parken said, adding: "Chartwell went through an extensive vetting process to win this contract with SNG. Our software and people passed the test and we are extremely excited with the opportunity to work with SNG in this growing gaming market."

Rainer Chrubassik, CEO of SNG commented: "We shall be launching Germany's first legal virtual casino, and are required by law to ensure the highest standards of security. With Chartwell as our partner we can fulfil our obligations in this respect, while at the same time offering an outstandingly attractive range of products. The intense process of system implementation has been a great challenge to all of us, but one we have succeeded in mastering. The project is unique in Germany and will point the way for future developments."

The advent of the German online casino project will be watched with interest by the European Commission, which has been pressuring Germany and 9 other EU members to open up their online gambling industries to private companies both within the country and in other EU nations.

SPIN 3 LAUNCHES NEW MOBILE POKER GAME

3 Card Poker already a firm favourite

Mobile gaming solutions provider Spin3 powered by Microgaming has launched a new 3 Card Poker gambling game for mobile phones.

3 Card Poker is a popular table game in land-based casinos around the world because it is easy to learn. Played with a standard deck of 52 cards that is shuffled before each game, 3 Card Poker consists of two games in one - the Pair Plus game and the Ante game - which can be played together or as individual games.

The launch of 3 Card Poker on Spin3's interactive platforms follows the recent launch of a Pub Fruity AWP slot, and joins classic games such as Roulette and Blackjack as well as slot and scratch card games in Spin3's growing mobile casino games portfolio.

Matti Zinder, Head of Spin3, says: "Our 3 Card Poker game is easy-to-follow because it is intuitively designed and comes complete with terrific graphics. With 13 mobile casino games, Spin3 is at the forefront of developments in the mobile casino industry and offers one of the most compelling portfolios of mobile casino games around."

3 Card Poker will be available to Spin3 customers currently utilising the GameWire platform for their mobile casino systems over the next few months.

FRANCE GEARING UP FOR ONLINE GAMBLING (Update)

Major new policy now evolving

The French daily newspaper Aujourd’hui en France has confirmed earlier reports in Le Parisien (see previous InfoPowa reports) that France is moving toward the regulation rather than prohibition of online gambling, perhaps as early as 2009. The newspapers report that “everything is ready” for France to initiate discussions on its proposed framework for online gaming and betting.

In current moves, former MP Bruno Durieux handed in the results of a study he carried out on online gambling for the French finance inspectorate at the end of last week, and President Nicolas Sarkozy is expected to give his final approval for the policy shift in the near future.

President Sarkozy has displayed a more open mind to a competitive betting market in France, and Budget Minister Eric Woerth and other French government representatives have held talks with European Commission officials in Brussels this year.

Woerth disclosed earlier this week that the president favours a controlled approach to opening up the market, ensuring that competition is even and balanced.

The timeframe for “a new era in online gaming and betting” is thought to be towards the end of “2009 or early in 2010”, according to Woerth.

Reports suggest that France intends to develop a new “system” for online gaming and betting in partnership with other EU states such as Belgium, Germany and Holland, rather than adopt existing models such as those in the UK or Italy. An initial steering committee will gather at the end of April to move this agenda forward.

At a national level, operators will have to be licensed to offer their services in France and conform to the system, with strict guidelines relating to money laundering and player protection.

In his latest disclosures, Minister Woerth said that France was not acting under threat from the European Commission (which has engaged with the French on the country's monopolistic gambling policy) but to address the changes brought in by technological developments and the Internet. He added that horse racing betting had to evolve, but he would not allow fixed-odds betting products to be offered on the sport.

For other sports such as football, fixed-odds bets would be offered, but Woerth added: “A sports bet is not betting on the colour of a tennis player’s jersey. The bet must be linked to the sporting performance, if not it can be the source of all kinds of dubious activity.” The French government would also expect to share in betting revenues by way of taxes, he added.

Regarding online casino and poker gaming, these activities will be licensed, although further study is necessary, Woerth said. Slot machines are for now at least not approved on grounds that these types of gambling were thought to be too addictive, the minister said.

Formerly one of the most aggressive opponents of any competition to its state gambling monopolies, France along with 9 other recalcitrant EU nations has been under increasing pressure from the European Commission, which is determined to enforce European Union requirements that member nations in the trading bloc permit free passage of goods and services with other members.

LADBROKES LAUNCHES NEW 'THRILL BUDS' AD CAMPAIGN

Adventure the theme of latest GBP 2 million advertising push

UK gambling group Ladbrokes has launched its latest campaign, a GBP 2 million initiative crafted by M&C Saatchi to promote the company's online casino.

Shot in South Africa, the ad. "Climb" drives the campaign and is the first in a series that show adventurers pushing themselves too far in their quest for the ultimate thrill. The tagline, "Quench your thrill buds," makes the point and attempts to tap into the emotional thrill of playing online casino games.

Shot in a documentary style, "Climb" is narrated by the local mountain man Nolbert Fernandez, who tells the story of his friend Pedro - a man who can't "quench his thrill buds". Pedro goes to ridiculous extremes to get his thrills by climbing in increasingly dangerous ways, which ultimately leads to his downfall.

The mockumentary concludes by suggesting he should have "quenched his thrill buds" at Ladbrokes Casino.com instead of risking mortal danger.

Shortly after television advertising was opened up to gambling advertisements in Britain late last year Ladbrokes begin running the first nationwide TV advertising by a major bookmaker with a GBP 5 million campaign entitled 'café,' again developed by M&C Saatchi.

The campaign had a tag of "everyone's got an opinion" and a football flavour, and starred sports personalities Ian Wright, Lee Dixon and Chris Kamara as well as Rangers' Assistant Manager Ally McCoist as builders enjoying a fry-up in a traditional café. TV presenter Kirsty Gallacher appeared as a waitress, with the original TV pundit Jimmy Hill, 79, making his screen comeback as the chef.

NEW MOBILE SLOT LAUNCHED

Slovakian software developer Inlogic hopes for mobile phone action

The Slovakian software developer Inlogic Software has released a new slot game for use on mobile phones, but at present the game is for fun only.

Players stake virtual amounts of money on three differently themed slot machines, in this latest product from the company says Jan Kalafut, Head of Business of Inlogic Software: "Inlogic has already developed several gambling games based on popular card games.

"Now we wanted to bring something new to the public: a game which would have, on one hand, a gambling character but, on the other hand, easy-to-play rules. Slot Machine is full of fun, graphically attractive and, of course, catchy."

Slot Machine will shortly be available for download via Inlogic's website, and will be compatible with most of the J2ME enabled mobile phones on the market.

Based in Slovakia, Central Europe, Inlogic Software has previously developed other mobile games for J2ME handsets, including Star Defence, Suicidal Squirrels, Ali the Penguin, Roboros and FootBallz.

eWALLET FIRM DEPARTS U.S. POKER SCENE

ePassporte calls it a day, citing US enforcement activity

The California based e-wallet service ePassporte appears to be about to exit the United States online poker market, although as InfoPowa went to press Sunday this had not been confirmed by a general public statement from the company.

However, both Cake Poker and Full Tilt Poker have been advised by ePassporte management that "...a widespread investigation of Internet gambling, including poker" by the United States Attorney's Office for the District of Southern New York" is responsible for the decision, according to online media reports from Poker News.com.

Back in the day when Eliot Spitzer controlled the New York AG's office it conducted a number of busts involving online gambling and ancillary services, such as the prosecution against Neteller.com's founders which was eventually settled for well over $100 million.

"Although we do not believe we have done anything illegal, we do not wish to be associated with anything that might be considered illegal by the United States Government," a communication sent to poker operators by ePassporte on Friday is understood to have read.

A Cake Poker email to players advised: "We have received notice from ePassporte today that they are unable to continue to provide CakePoker with merchant e-wallet services. We have since confirmed that this situation is not unique to CakePoker and is, in fact, industry wide."

Full Tilt Poker told its players: "We have recently been notified by ePassporte that they are no longer able to facilitate deposits or withdrawals between ePassporte and Full Tilt Poker player accounts."

A VALUABLE DOMAIN

Casino770 buys "770.com" for GBP 175 000

Online domain marketplace Sedo.com has reported brokering the sale of the domain "770.com" to Casino770.com, widely believed to be associated with the French land casino group Partouche, for an impressive GBP 175 000 this week. The previous owner is described only as "a private investor."

The new owner will use the domain to expand its online web presence and market the 770 brand aggressively.

"In such a competitive online gaming market, it's crucial we secure the right names to grow and develop the company's online brand," said a spokesman for Casino770. "Using Sedo's marketplace and brokerage service, the business has secured an unforgettable name. It's short and sweet and fits the brand like a glove."

"We're pleased to have brokered such a high profile sale," said Nora Nanayakkara, director of business development for Sedo UK. "Short generic names like 770.com are red hot commodities - far more so than a physical business address. Any growing business looking to make its Internet presence felt will know its online strategy and domain portfolio are key components to successful brand development."

Sedo's online marketplace now lists over 10.5 million Internet domain names. It holds regular auctions for buyers and sellers.
Gambling related domain names sold by Sedo recently include Mobile.co.uk ($247 000) MicroJuegos (Micro Games in Spanish) $15 065 and FreeOnlineCasinos.com ($11 500)

LUCKY ONLINE GAMBLER

Two royal flushes in 3 days - and this is not the first time!

The Golden Tiger online casino reports an exceptionally lucky online gambler this week, identified only as "PS", who has scored two royal flushes and picked up a GBP 100 000 jackpot for each....all within 3 days.

The British player defeated all odds this month by hitting his second royal flush in only three days...and as recently as February this year he managed to do the exact same thing, and then again in March 2008, bringing his total winning balance up to GBP 400 000 in a mere three months, reports Golden Tiger spokesperson Emma Hall.

The royal flush is rare enough to be remarkable and is the best hand in poker, consisting of a 10, jack, queen, king, and ace all of the same suit. Probabilities of being dealt such a hand are over 600 000 to one.

Golden Tiger belongs to the Australian online gambling group Casino Rewards, which recently acted the white knight in taking over six failed online casinos from the liquidated Casino Action group, also Australian owned.

MORE BIG WINS AT CASINO REWARDS

Online casino group reports another double jackpot

Last week it was a British player at the Golden Tiger in the Casino Rewards group who had scored two royal flushes and picked up a GBP 100 000 jackpot for each....all within 3 days (see previous InfoPowa report). This time around another online casino in the same group - Blackjack Ballroom - reported making another lucky player wealthy after dishing out two jackpots in two days totaling more than $200 000.

Seasoned video poker player PL from Idaho collected the serious cheque with two royal flushes in a 48 hour period.

"I won $200 000 by hitting two Royal Flushes within two days," PL recounted. "This money is going to pay off my mortgage, student loans and start a very good savings account for my children to help them in their future."

Casino Rewards, an Australian owned group that recently acquired 6 premium online casinos from the liquidated Casino Action group, claims a total of 11 major jackpot winners in March alone at its range of 18 online gambling venues.

CHARITY DONATION COULD MAKE POKER TOURNAMENT ECONOMICALLY UNPLAYABLE

WPT and players disagree in percentage-of-prizepool donation plan

Entry into the World Poker Tour Ladies Tour scheduled for Las Vegas next week may be influenced by a disagreement over a charity donation which surfaced during a radio talk show this week.

Apparently the WPT has decided that the Las Vegas event at the Bellagio will have a 15 percent chunk of the prize-pool donated to
Susan G. Komen for the Cure (SGK), a breast cancer charity which the WPT has supported in the past.

Although the cause and the vehicle are regarded as worthy, it is the size and method of the deduction that is causing some waves, and these became apparent on the radio talk show Poker Talk America when former WSOP Ladies Event champion Susie Isaacs declared that she would not play in the Ladies Championship. She had earlier posted her decision on her blog titled The World Poker Tour Ladies Championship Controversy, saying:

"As a working player who would gladly have donated 5 percent of any win I may have taken, I am very disappointed that this event is no longer on my schedule. With the 15 percent (donation) and the juice I don't believe it is playable from a financial point of view."

Lisa Adams, the poker player hostess of Poker Talk America, joined Isaacs in boycotting the event because of her perception that withholding charity funds from the prize pool is unfair to players.

Both women have made it clear that they feel any event with part of the prize pool withheld for charity should be advertised as a charity event, not as a championship.

Steve Lipscomb, the CEO of WPT defended his company's decision, saying it was simply trying to do a good deed.

"We're trying to promote women in poker and promote a good cause," Lipscomb said, appearing as a guest on the show along with Isaacs.

That the WPT had partnered with a worthy charity was not questioned; the concern was over the equity of the issue, said Isaacs.

With 15 percent going to the charity, an additional 3 percent withheld for the tournament staff and a further $25 500 earmarked to provide the winner of the tournament with a seat in the WPT Championship, the prize-pool is likely to be depleted by almost 25 percent before play even starts.

Jesse Jones, founder and chairman of the World Poker Association, supported Isaacs in her opposition, writing a letter to the WPT in which he said: "I believe you are taking advantage of women, especially novice women who have no idea about prize pools and their equity in an event."

Jones went on to suggest that a better solution to the problem may be for the WPT to make the donation from its own treasury, based on the number of players entering the event, and then invite players to make a matching donation.

However, it appears that the WPT intends to continue on its present course, although it has said it will consider suggestions for future events.

UPDATE: The World Poker Association has issued a statement on this issue, with chairman Wendeen H.Eolis advising that the organisation has not yet taken a public position regarding the WPT Ladies Championship “obligatory charity donation”.

"Jesse Jones, Chairman Emeritus and founder of the Association has expressed his personal support for the ladies in question in a letter to the WPT," Eolis writes. "I am the chairman of the WPA and as its chief elected officer, I have been in discussions with many of the ladies and the top WPT officials. The WPA’s executive committee will be meeting on this matter, following which I will issue a public statement.

FOOTNOTE: The WPA subequently held its meetings and came out on the side of the women players, who were not opposed to donating money to charity but objected to the unilateral approach by the WPT organisers to set and deduct donations from the prize pool.

"The furore has centred on the WPT's insensitivity to the varying financial means of 'working players' and more broadly on the decision to compel a charitable donation in an event labeled as a championship," said Wendeen Eolis, World Poker Association chairman.

Eolis pointed out that the WPT has not previously done this, and called upon the WPT to "reverse this mistake" for future events. Lyle Berman, chairman at WPT Enterprises reiterated CEO Steve Lipscomb's undertaking to reconsider, and said that in future there would be "...no such requirement in a WPT championship event."

Poker player Susie Isaacs, who initiated the protest against the WPT move, posted her satisfaction on her blog.

"I am no longer sad [about not playing] in the WPT Ladies Championship. It was worth it," Isaacs says in her blog. "I believe that the efforts of a group of women, from coast-to-coast, have made a big difference for the future of ladies poker tournaments."

The WPT Ladies Championship went ahead as planned with the 15 percent removed from the prize pool for the agreed charity. One hundred and fifty players entered.

FIRST '21', NOW 'DEAL' AWAITS GAMBLING MOVIE LOVERS

Coming to a theatre near you from April 25....

Several top international poker aces have cameo roles in a new gambling movie set to follow closely on the heels of the popular "21" currently on the global cinema circuit (see previous InfoPowa report) Titled "Deal," the new film is all about poker and stars Bret Harrison, Burt Reynolds and Shannon Elizabeth in the main character roles.

Appearing in cameo roles as themselves are Antonio Esfandiari; Joe Hachem; Phil Laak; Chris Moneymaker; Greg Raymer and Vincent Van Patten.

Many poker fans are quick to point out that the 1998 movie "Rounders" is the one to beat when it comes to a true depiction of the game and its action and appeal, and pre-launch reviews for "Deal" have already favourably compared the new film to its distinguished predecessor.

Apparently the plot of "Deal" involves a former poker pro coaching a cocky college student, which ultimately draws him back into the professional poker arena and the World Series of Poker, where he faces his protege across the felt. This is not an altogether dissimilar storyline to that in the 1986 classic "The Colour of Money" in which Paul Newman and Tom Cruise featured, albeit in a different game.

Movie and poker fans can get a preview taste at http://www.dealthemovie.com/

ROUSSO COURT DATE CHANGED IN ONLINE GAMBLING CHALLENGE

Washington dispute will now be heard May 15

After many months of legalistic stonewalling by Washington state representatives, it looks as if Seattle lawyer Lee Rousso is at last to get his day in court to challenge the constitutional legality of draconian state bans on Internet gambling.

Probably hoping to bury Rousso's challenge in demands for volumes of personal information, Washington state legal representatives have for months delayed the hearing as part of the discovery process. Rousso fought this on grounds that certain information is personal, confidential and is entitled to Fifth Amendment protection.

Initially defeated on this aspect by the King County Superior Court, Rousso took the issue on appeal, and this week secured a largely favourable ruling from Judge Mary E. Roberts that enables him to move forward with the real case - a challenge to the Washington state laws on online gambling after one more requirement is answered.

Rousso, a lawyer and the state representative for the Poker Players Association, is questioning the constitutionality of Washington's player-centred online gambling ban, and keeps PPA members informed of progress on the association's website.

He contends that there is a strong and constitutionally illegal element of protectionism in legislation passed by a state that has licensed many other forms of (land) gambling despite its moralistic claims. Protecting the state's licensed gambling venues would be a violation of the U.S. Constitution's commerce clause forbidding individual states from passing protectionist laws.

Rousso's court date has now been postponed to May 15 from the original April 25, and the PPA is encouraging those members who can to make an appearance at the court in a show of solidarity.

BWIN DEFENDS ONLINE GAMBLING IN SLANDER CASE

Austrian online gambling group strikes back for the industry

The Vienna-listed online gambling group Bwin has revealed that it has taken the organisers of the French Open tennis tournament to court for slander in a legal counterattack following litigation to ban Internet betting at the Grand Slam tournament.

The case dates back to February this year, when the tennis organisers filed complaints in Belgium and Paris claiming that computer betting companies stain the reputation of the clay-court championship.

"Following claims by the French tennis federation that services offered by online sports betting operators present a danger to the ethics of sport, Bwin is suing the organisers of the French Open for damages before a Paris court," a Bwin statement advised.

A Belgian court in Liege heard arguments in the case last Friday and is expected to rule before the French Open starts on May 25.

The issue of integrity in tennis surfaced last year when an online betting site - Betfair.com - voided all wagers on a match in Poland between fourth-ranked Nikolay Davydenko and 87th-ranked Martin Vassallo Arguello because of irregular betting patterns.

The French federation is suing Bwin, Betfair and Ladbrokes - demanding a court injunction to stop these companies from taking bets on the French Open. It seeks a fine of Euro 50 000 euros a day for any violations (see previous InfoPowa report).

Bwin spokesman Antoine Costanzo claims that the head of the French tennis federation made slanderous comments when he launched the court case and that his company seeks Euro 1 million in damages as a consequence. Bwin claims legal standing because it is a major provider of online gaming entertainment.

Countering the allegations of French Open organisers, the European Gaming and Betting Association said that the Internet is an excellent tool to trace any irregularities in betting operations. The organisation, which has most of Europe's top online gambling companies among its members, said Internet operations left "...a perfect audit trail, one that can, where appropriate, be shared with regulators and other authorities in order to trace bets and hence provide valuable evidence in the fight against fraud."

French Open organisers said that betting companies are tainting the reputation of the tournament and unfairly using it as a way of making money. They argued that if a match-fixing scandal hit the French Open, it would undermine the value of the tournament, which in 2007 had revenue of Euro 118 million and attracted 450 000 fans to Roland Garros.

The EGBA insisted betting companies stood to lose just as much. "Any match-fixing would penalise bookmakers severely as they take financial risk when setting odds for all sporting events," it said in a statement.

Vienna-based bwin has said it was confident it would be able to stave off the legal challenge, insisting it does no more than offer a fair and legal service. Along with football and horse racing, tennis is among the most popular sports to bet on in Europe.

AIRBORNE MESSAGE FOR ONLINE POKER SITE

"Poker Excitement" is PKR's slogan in helicopter campaign

PKR.com's marketing director Simon Prodger is nothing if not adventurous in his marketing tactics, this week introducing a new airborne campaign to get the PKR message across in big, bold letters.

The 3 D online poker company has commissioned a giant banner three-quarters the size of a football pitch which, when trailed through the skies behind a helicopter, will be seen by millions in the London area.

The company worked with Helicopter Overcity Banner Systems to produce the 25 000 square foot "Poker Excitement" banner which will be used in and around London during major sporting events.

Prodger claims the banner is visible for over 10 miles and with three flights already undertaken, he's pleased with the results, saying: “It’s a pretty awe-inspiring spectacle, and one that no one expects to see. We’ve had reports of sightings from all over London, and people have even been sending in their own camera phone images of the big banner.”

Next time a giant shadow passes over, look up to see PKR's flying advert, especially on April 26 when the next banner flight takes place over central London and Stamford Bridge during the Manchester United vs. Chelsea Premiership match

WAGERWORKS LAUNCHES ON BOYLESPORTS

Fully managed online casino solution

WagerWorks/IGT announced this week that Irish bookie group Boylesports has ‘gone live’ with its fully managed end-to-end online casino solution. The new system replaces that previously used from Chartwell Technology, and integrates with the Finsoft MarginMaker sportsbook platform.

The new, fully managed system gives Boylesports full access to WagerWorks’ entire suite of casino games, allowing its casino to provide players with top quality online slot games. A Wagerworks spokesman said that the feature- rich WagerWare casino platform will additionally assist in Boylesports marketing campaigns through better data mining and player database management.

Boylesports’ new casino offering will augment their existing platforms and be available across all of their online betting and gaming sites.

Commenting on the agreement, Tom Kenny, Commercial Director of WagerWorks, said, “Boylesports required a fully managed solution that was adaptable as well as progressive. Our ability to provide a full turnkey casino solution, along with a steady stream of proven quality game titles, will let Boylesports provide its players with top-performing games now and in the future.”

Conor Grant, Head of Gaming at Boylesports, commented: “We had a very specific brief and were also aware we needed a supplier who ensured the integrity of our brand. WagerWorks’ overall package and brand image fitted our needs best. We look forward to a fruitful future with them.”

The integration to the Finsoft MarginMaker sportsbook platform will allow other Finsoft customers access to the high quality content available from WagerWorks, which is now able to offer integration to both Orbis and Finsoft, two of the leading sportsbook providers.

JAXX SPONSORS THE SCOTS

Motherwell FC deal valued at GBP200 000 a season

Scottish Premier League football club Motherwell has signed a new two-year sponsorship deal with the German online sports gambling firm English subsidiary JAXX.com.

The deal, valued at up to GBP 200 000 per season with revenue share, will see the JAXX brand appear on Motherwell's distinctive claret and amber strip from the beginning of the 2008-09 season, replacing Anglian Home Improvements, which has built significant market share in Scotland on the back of its association with the club.

In addition to the shirt sponsorship and advertising presence within Fir Park, a co-branded JAXX / Motherwell FC website will be established in time for the new season, including a range of betting propositions tailored specifically for the club's fans, 5 000 of whom regularly attend home games.

Motherwell chief executive Ian Stillie said, "The shirt sponsorship deal is the most important partnership for any club due to the strong association between the two brands. We were very impressed by the freshness and vitality of the JAXX brand and its sports betting offering, as well as the company's proven dedication to partnerships in football.

"The fans are paramount to the application of the Motherwell brand and we felt the commitment to consistently high quality offered by JAXX fitted well with our own values. The dedicated club betting page will also be a welcome addition to our online offering and we're looking forward to a successful long-term partnership.

"Our strip launch today has been strategically planned so Motherwell fans would be the first to see it. With the deals we've agreed with both JAXX and Bukta, we are confident the strips will be worn for the entire 2008 - 2010 seasons.

Mark Irvine, managing director of JAXX (UK) Ltd said he was pleased to partner with Motherwell FC, "Since we launched in the UK in 2007, we have worked to expand our network of football affiliations, signing betting partnership deals with West Ham and Newcastle United, but I was particularly keen to secure a presence in Scotland," he said.

"The Motherwell deal is a significant step in our brand development north of the border and we'll be working very closely with the club to make the partnership a success."

JAXX UK is operated by a dedicated UK-based team, including traders, marketers and affiliate managers. The new shirt deal was facilitated by Fuse Sport who specialise in developing sports related sponsorship packages for major brands.

BWIN REPORTS NET PROFITS OF OVER EURO 50 MILL

Vienna listed betting group achieves an important turnaround

Bwin, the Vienna-listed group that is a major force in the European online gambling sector has released 2007 results that show a turnaround for the business year, with net profits of Euro 50.4 million, a major improvement on the losses of Euro 539.6 million euros in the previous (2006) year.

Adjusted operating profits were Euro 72.8 million in 2007, after losses of Euro 585.8 million in 2006, and gross gaming revenues surged 21.4 percent to Euro 350.3 million.

The company statement said Bwin had experienced the strongest organic growth across the European industry over the 12-month period to the end of December 2007 and had enjoyed record gross and net gaming revenues during the fourth quarter of 2007, as well as achieving revenues higher than those achieved before the company’s voluntary exit from the US and Turkish markets due to legislative developments in those countries.

Fourth-quarter profits were up to Euro 51.2 million, after a loss of Euro 489.8 million in the same period in 2006.

The turnaround was mainly due to a reversal in impairment charges in connection with the company's acquisition of Ongame Group, an online gaming company, Bwin said.

Earnings before interest, taxes, amortization and depreciation (EBITDA) was Euro 13.2 million, compared with a negative EBITDA of Euro 2.6 million in the fourth quarter of 2006.

Bwin has shifted its focus on its core markets and products following , and in the future it will seek to increase its sports sponsoring activities, where legally possible. The record gross gaming revenues it had enjoyed were the rersult of the strong performance of its core sports betting and poker products, the company revealed, saying this justified its strategy of investing in proprietary poker and sports betting platforms to safeguard future earning potential, and of cautious regional diversification.

Gross gaming revenues for the year were up 21.4 percent to Euro 350.5 million (2006: Euro 288.6 million). Sports betting gross revenues were up 19 percent to Euro 191.9 million, and annual margins were 8.7 percent.

Poker in Europe appears to remain a strong performer, with Bwin's revenues for the year up an impressive 38.6 percent to Euro 82.3 million. Net gaming revenues for the year were up 25.9 percent to Euro 309.7 million (2006: Euro 246 million) despite a fall in the number of active customers to 1 659 819 (2006: 2 162 250).

Trading thus far in 2008 has been strong enough for Bwin to anticipate another record quarter, with gross gaming revenues up 4.7 percent on the previous quarter to date.

POSITIVE SIGNALS FROM POLAND

Senior government minister hints strongly at a regulated online gambling policy

The Deputy Minister of Finance in Poland has reportedly made a public statement this week that the EU country plans to regulate and license online gambling, and this could happen as early as the second half of 2008.

Minister Marek Kapica was quoted in Polish media reports as being pragmatic on the issue, saying: "We cannot control this process anyway and it is better that the budget at least derives some revenues from it."

Kapica's ministry is apparently drafting legislation to introduce a regulatory regime, and this will be sent to the European Commission to ensure that it meets EU requirements for the free passage of goods and services between EU member states as required in the trading bloc's treaty.

STUDY ON INTERNET POKER BILL PROGRESSES

California legislative proposal moves forward to Assembly Appropriations Committee.

California legislators appeared to be taking a sensible and pragmatic view of online poker in the state this week as the Assembly Governmental Organization Committee (AGOC) unanimously forwarded a proposal to study the issue thoroughly to the Assembly Appropriations Committee.

AB 2026 calls for the California Gambling Control Commission and the Department of Justice to initiate and carry out a study into factors surrounding the authorisation of online poker in California, reports Cardplayer magazine. The results of the study would be presented to the California Legislature by June 30, 2009 if it is approved.

The Cardplayer report revealed that Democrat Assemblyman Lloyd Levine is the bill’s author (see previous InfoPowa report).

The AGOC hearing took testimony from bill proponents Poker Voters of America President Jim Tabilio and Rod Blonien, who represented the card rooms of Commerce Club, Hollywood Park, the Lucky Derby, the Lucky Lady, Garden City and Lucky Chances.

“Many of the clubs that I mentioned are maxed out on Friday and Saturday nights. We have more players than we have seats available,” Blonien said. “Many of those people go home and play online.”

He had some strong opinions on Internet poker, characterising the industry as an unregulated and dangerous place for American consumers. “There’s no place that a law abiding Californian can go (online) and play a level game,” he claimed. “What Californians really need is a government regulated and fair website where they could go to play Internet poker.”

Concerns regarding conflict with anti-online gambling federal law were addressed by the state’s Legislative Counsel on Levine's request, which concluded that California would be allowed to operate an intrastate card room even with the rules of the UIGEA and the decades-old Wire Act in place.

One group opposed to the AB 2026 was the California Coalition Against Gambling Expansion, a group that wants to decrease the number of gambling options California residents have.

POKERSTARS VIDEO BETA TESTING GOING WELL

Good public response to Pokerstars.tv

The new Poker Stars public video initiative (see previous InfoPowa report) appears to have been well received in its beta testing phase at Pokerstars.tv.

Still in the test phase, the video site provides live webcasts of major events and a unique collection of high quality poker footage. Understandably, there is a marked promotional element that includes current Stars-sponsored events and the latest happenings from the growing Team PokerStars.

A popular element is the tutorial on how to use the facility, which is narrated and presented by ace player Daniel Negreanu and gives an overview of the site content and how to make best use of it. Visitors are encouraged to try the various tabs, which reveal a wealth of interesting and diverse content. There's a searchable database of filters, so videos sorted by player, event, type of hand, or many other topics can be easily found.

Content is available only in the English language at present, although Poker Stars has plans to introduce its video libraries in other languages, too. PokerStars.tv allows registered users to e-mail video links to other players, or to embed the code for a given video on other websites. Registered users can also 'customise' their faves by creating personal video "channels" and selecting their preferences.

BWIN CHALLENGE TO GERMAN BAN HAS A GOOD CHANCE OF SUCCESS

Schleswig-Holstein law adviser says German bans won't stand the test of ECJ

Bwin Interactive Entertainment AG, probably Europe's biggest private online sports-gambling company, may win a legal fight that threatens Euro 118 million in annual revenues, or a third of its take, reports the Bloombergs business news service this week.

The service quotes Johannes Caspar, a law professor at Hamburg University and legal adviser to the Schleswig-Holstein state legislature, who says that Vienna-based Bwin may succeed with lawsuits challenging the January 2008 ban in Germany on Internet sports wagering.

Bwin argues the prohibition, approved in all 16 German states, violates European Union law.

"It won't stand the test at the European Court of Justice," Caspar said.

The EU's executive arm the European Commission started "infringement proceedings" against Germany on January 31 this year over the state laws, a process that may lead to an appearance before the European Court of Justice on claims that the ban flies in the face of EU requirements for the free movement of goods and services between EU member states.

The professor's views come on the heels of the decision earlier this week by Spielbanken Niedersachsen GmbH (SNG) the exclusive Lower Saxony state licensed and regulated casino operator, to enter online gambling using a Chartwell Technology technology package (see previous InfoPowa report)

BETSSON STEPS UP FOR RESPONSIBLE GAMBLING

Swedish online gambling firm offers research scholarships

Kudos to Swedish online betting group Betsson, which has stepped up to contribute to the real need for research into the impact and consequences of problem gambling in the industry.

The company has launched a scholarship for problem gambling research in its native Sweden. The scholarships, each amounting to 15 000 SEK, will be awarded twice a year by a panel of experts knowledgeable in the field of gambling, from a list of candidates pre-selected by the respective student faculty. Betsson has previously used the services of the G4 for responsible gambling guidance.

Formerly known as Cherryforetagen AB, Betsson AB is a publicly listed company, active within the gaming industry. The company is engaged primarily in the provision of casino, automated betting, maritime games, Internet games, lotteries and competitions, and is active though three main business areas: Betsson.com, a betting exchange which offers sport, casino and poker games with 300,000 members mainly from Scandinavia; CasinoEuro.com, an Internet casino which offers casino and poker games in 16 languages for the European market, and CherryCasino.com, an Internet casino for the global market. The company operates through two subsidiaries: Betsson Ltd. and Betsson Malta Ltd.

ANOTHER USE FOR BLACKBERRIES

'Bet on the Move' service now available

If you have a Pearl, Curve, 8700 or 8820 Blackberry handset, you'll now be able to use Sporting Index's 'Bet on the Move' sports services following an announcement from the company this week.

The move comes as new reports show that mobile betting revenues have increased by 29 percent over the last year.

Blackberry betting fans will be able to access in-play markets instantly via Live Now; check account balances and open bets and deposit and withdraw funds after following some basic setup steps.

LADDIES GETS MADRID LICENCE

Joint venture with Cirsa set to pay off under liberalised regional betting policies

Sportium, the 50-50 sportsbetting venture between Cirsa Slot and Ladbrokes has been awarded a license for the Madrid region, opening up strong possibilities for the new company, which is headed by CEO Alberto Eljarrat.

The group plans to open up to 70 outlets by the end of the year, and in 2007 announced an investment in the venture of Euro 30 million, forecasting more than 150 betting points employing 150 people in the first year.

Initially the activity will be focused on sporting bets, covering a broad range of sports that will include soccer, golf, tennis, basketball and flat racing, among others. Turnover is expected to reach Euro 80 million for the first year of operation.

ECONOMIC DOWNTURN IMPACTS GAMBLING

Analysts take a pessimistic view in the short term

Reports from the Las Vegas Gaming Wire and mainstream business news outlets are suggesting that times are already tough, and could become tougher, in the gambling industry due to weakening economic conditions.

The LVGJ reports that gaming revenues on the Las Vegas Strip fell 3 percent in February, with the sinking economy, high gasoline prices, airline troubles and other downbeat financial news causing casino customers to stay at home or hang on to discretionary income.

Deutsche Bank gaming analyst Andrew Zarnett painted a bleak picture for investors should Las Vegas visitation and gaming spending continue to suffer, when he opined: "Looking specifically to an individual property on the Strip, we believe a 10 percent decline in revenues, linear across the board, including room rates as well as casino play, will likely lead to an approximate 20 percent reduction in EBITDA."

Las Vegas casino operators, Zarnett said, have reduced labour hours. What follows will be a reduction in staffing levels to reduce costs, and this has already manifested itself in the 440 lay-offs announced by MGM Mirage this week (see previous InfoPowa report)

Investment firms downgraded gaming stocks recently. Quarterly earnings for the period ended March 31 are forthcoming, but analysts, are not predicting good news. "We see both regional trends and destination markets like Las Vegas and Macau below previous estimates," Wachovia analyst Brian McGill said.

Goldman Sachs gaming analyst Steven Kent said stock prices are weak and operating results over the next few quarters will be challenged.

In Connecticut, the Connecticut Day newspaper reported: "Slot revenues continued to decline at both the state's casinos during the month of March, but while the losses at Foxwoods Resort Casino continued to grow, Mohegan Sun experienced its smallest decline in recent months.

Foxwoods saw their revenues slip 12 percent from March 2007 to $60.8 million, while Mohegan Sun's numbers dropped 1.4 percent to $76.8 million compared to last year.

Both casinos continue to blame the economy for declines in slot revenues and pointed out that casinos in other markets, like Atlantic City, are also struggling with sliding revenues.

Due to the decline in slot revenues, the state of Connecticut will also see lower contributions this year as compared to last year.

Mohegan Sun sent $19.2 million to state coffers, about $264,000 less than last year, and Foxwoods sent $15.2 million to the state, about $2 million less than in March 2007.

Patrons at Foxwoods appear to have cut back on their spending at the casino as the amount of money they spent at the slots, or handle, decreased by 12 percent to $694 million.

MATT SAVAGE WILL HEAD UP APT MILAN

Quality all the way for Asian poker epic

The Asian Poker Tour (APT) has announced that Matt Savage has signed on as tournament director for the APT’s Manila Main Event next month.

Few men are as qualified for the position. Savage was appointed tournament director for the World Series of Poker (WSOP) in 2002 after working his way up the poker ladder. On his watch a boom in prize money at the tournament from £6 million to £25 million developed, and he has worked on more than 300 televised poker shows, in 2003 being awarded the inaugural Benny Binion award for outstanding service to the poker industry.

As tournament director for the Asian Poker Tour Manila leg, Savage will oversee six days of all-out poker action which is expected to attract around 400 players from all over the world. A third of the participants are expected to come from the Philippines, which has seen poker’s popularity surge in recent years.

The ultra modern Dusit Thani Manila Hotel has been announced as the luxury venue that will stage the first leg of the 2008 APT. The exclusive venue in the Philippines’ central business district will provide a fitting backdrop and is the perfect venue for the event as it gives easy access to accommodations, shopping malls, tourist spots and transport services.

After the Philippine leg, the tour moves on to events in Macau, South Korea and Singapore. The buy-in at all four events is $2 500 and the prize pool will be a guaranteed $1 million.

Alongside some of the world’s best players will be a host of internet qualifiers competing for the money at all the venues. These qualifiers will be making their way to the main event by way of online satellite tournaments. The prize packages awarded from these satellites, which are worth $6 000 and cover hotel and travel expenses, wil appeal to many internet players.

The first leg of the APT 2008 runs from May 27 to June 1.

GAMING VC TAKEOVER PLANNED?

Mystery approach to acquire online gambling group

Piqueing the interest of online gambling analysts and observers this week was a curt regulatory notice from the non-executive chairman of Gaming VC Holdings SA, Adrian Smith.

In a brief statement, Smith advised that the firm, which includes Casino Club, Casino Club Poker, Betaland and Poker Kings among its online gambling interests, has received a preliminary approach which may or may not lead to an offer being made for the entire issued and to be issued share capital of the Company.

The Board of Directors of Gami

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