Tuesday, August 18, 2009

The Great British Lobby - The Telegraph

A technology group advised by David Blunkett, the former Home Secretary, is one of several British companies spending millions of pounds lobbying American politicians in a bid to shape legislation in the US.

UC Group, an online payment services group, has spent some $5.23m (£3.2m) on lobbying fees in recent years, one of several companies deploying millions to influence gambling legislation in the US.

Sportingbet, PartyGaming and Pokerstars have all hired high profile lobbying firms in the US to represent their interests as they prepare for the likely opening-up of the US online gaming market.

UC Group acts for 10 gaming companies, offering back-office and anti-money laundering operations and hopes to profit from any opening of the market. The group has worked to promote Senator Barney Frank's efforts to overturn the ban on online gaming.

The size of the company's lobbying expenses - which stretch to $2.31m since last September - are particularly eye-catching given it made just £3m in pre-tax profits last year.

Kobus Paulsen, UC Group's chief executive, suggested it was part of the group's long-term strategy. "We are certain that our efforts will yield an open market for non-US based gaming operators," he said.

Ruth Parasol and Russell De Leon, the PartyGaming founders, have spent up to £929,000 on lobbying fees since last September to influence online gaming legislation in the US.

It remains unclear whether any of those fees have been channelled towards lobbying over issues related to their potential prosecution for allegedly breaking US laws banning internet gambling.

Anurag Diskit, another founder, stunned the gaming industry in April this year by pleading guilty to breaking US laws and agreeing to pay a $300m fine. Ms Parasol, Mr De Leon and a third founder, Vikrant Bhargava, have yet to settle with the US Department of Justice.

Lobbying records for Sportingbet, the online gaming firm that also faces potential charges, show the company has paid $60,000 over the last year in relation to the "settlement of potential criminal charges related to online gambling". (Credit: The Telegraph)

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Saturday, August 15, 2009

One tribe proposing legalization of Internet poker in California, by Jim Miller - The Press Enterprise - 12th August 2009

SACRAMENTO - The Morongo Band of Mission Indians near Banning is at the forefront of an effort to craft legislation legalizing online poker in California.

The influential Inland tribe, which runs a successful casino off Interstate 10, has collaborated with some Southern California card clubs on a proposal to create a "tribal intrastate Internet poker consortium." It aims to make California the first state with online poker that complies with federal law.

"This would be a game for Californians, run by Californians," said Patrick Dorinson, a spokesman for the tribe. Participating tribes, card clubs and the cash-strapped state would share in the revenue, but an exact split hasn't been determined, he said.

There are an estimated 2,300 online poker sites generating $4 billion in revenue. An estimated 1 million Californians play online poker.

The sites avoid 2006 federal restrictions on online poker by operating outside the U.S. Under some legal interpretations, federal law would allow online poker when players are in the same state as computer servers hosting the games.

No bill has emerged and there is no author for the proposal so far. Any measure would be considered during the final four weeks of the legislative year after lawmakers return Monday from their summer recess.

Already, though, the idea has received a cool reception by some other tribes with casinos.

The California Tribal Business Alliance, which includes several wealthy tribes with casinos, this week announced its opposition to the idea.

In a letter, the group called the online card game proposal "ill-conceived" and warned that it could lead to "the wholesale expansion of non-Indian, off-reservation gambling in California" by potentially bringing casino-style machines to card rooms.

"It's way too complicated to rush something through at the end of session," said Alison Harvey, the alliance's executive director.

In the Inland area, the Morongo tribe belongs to the Tribal Alliance of Sovereign Indian Nations, which includes several tribes with casinos in Riverside and San Bernardino counties.

The normally tightknit group has taken no position on the online card game proposal. Two nearby group members with large casinos -- the San Manuel Band of Mission Indians near San Bernardino and the Agua Caliente Band of Cahuilla Indians in the Coachella Valley -- also are neutral.

Morongo officials have been briefing tribal leaders from around the state in recent days. No other tribes have endorsed the proposal, Dorinson said.

The two legislators whose districts include the Morongo reservation and casino have not been approached about the tribe's proposal.

State Sen. John J. Benoit, R-Bermuda Dunes, questioned if there would be enough time to consider online poker legislation before lawmakers adjourn their regular session Sept. 11. Prison reform and water are expected to dominate the end-of-session agenda.

"I'm all ears. But it certainly would be an uphill battle to get it done in the time frame they're talking about," Benoit said.

Federal legislation

The online poker proposal has been in the works for several months. Talk of its introduction as a bill comes as the U.S. Senate prepares to consider related legislation.

New Jersey Sen. Robert Menendez introduced a measure last week to regulate online poker and other games. In a news release, the senator's office said the legislation could raise up to $3 billion in revenue while protecting players from unscrupulous offshore poker sites.

"Pulling Internet poker out of the shadows and into the light of the law, we have the opportunity to help our economy while protecting our families," Menendez said in a statement.

Dorinson said the California proposal would ensure that revenue from online poker played here would help the state.

At least one online poker group is skeptical about the idea.

John Pappas, executive director of the Poker Players Alliance, said the California proposal would give a monopoly to just a few entities. California, he said, instead should license a variety of online poker sites or host its own games. The players alliance is funded by the Canada-based Interactive Gaming Council, which represents online poker sites.

The Schwarzenegger administration does not have a position on online poker, a spokeswoman said.

Last summer, the Legislature considered a bill that would have legalized online poker. It stalled after major opposition from some tribes and tribal organizations, including the Tribal Alliance of Sovereign Indian Nations.

Political fights

Underlying the latest proposal is the recent acrimony between some of the groups involved.

In 2004, tribal casinos defeated a ballot measure pushed by card clubs and horse tracks that would have ended the tribes' monopoly on slot machines.

In 2007 and 2008, some members of the tribal business alliance spent millions in an unsuccessful campaign to overturn 2006 casino-expansion agreements between the state and the Morongo tribe, along with several others.

Last year, the tribes joined forces to push through legislation to ban devices in some nontribal bingo halls run by various charities. Critics called the devices illegal slot machines. But opponents of the bill said it hurt the charities' fundraising. (Credit: The Press Enterprise)

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Friday, August 07, 2009

Breaking News! Online Poker Bill Introduced in U.S. Senate

New Bill Is Separate from Barney Frank's Similar Online Gambling Bill, with a Higher-Profile Position in the Senate

August 6, 2009 (CAP Newswire) -- New Jersey Democrat Robert Menendez has just introduced into the U.S. Senate a brand new piece of legislation designed to legalize and regulate Internet poker.

"To amend title 31, United States Code, to provide for the licensing by the Secretary of the Treasury of Internet poker and other games that are predominantly of skill, to provide for consumer protections on the Internet, to enforce the tax code, and for other purposes," the bill begins.

The bill would establish a new legal regulatory framework for Internet poker in the United States, and also put in place certain consumer protections such as age restrictions. Officially entitled S.8309, the Internet Poker and Games of Skill Regulation, Consumer Protection, and Enforcement Act, it was introduced today.

No matter what success this bill meets with, it represents another huge milestone in the nationwide struggle to reclassify poker from gambling to a game of skill. This movement seeks to enable online poker to be not only legalized but also change the way it is regarded in popular culture.

That movement has gained a lot of transaction over the past year, with smaller court victories in states such as Colorado, Pennsylvania, and South Carolina, and with Representative Barney Frank’s recent efforts to legalize and regulate certain sectors of online gambling with his own legislation (which is separate from this bill).

Home to the original U.S. gaming resort destination, Atlantic City, New Jersey has long had its own internal struggles regarding the legality of gaming, and has recently clashed with the federal government on this basis. So it makes sense that the author of this new legislation is is from New Jersey — and a Democrat, the party that is apparently more open to the idea of fully legalized online gambling. (Although it technically has bipartisan support, the vast majority of supporters of Barney Frank’s recent pro-Internet gambling efforts have been Democrats.)

The Poker Players Alliance (PPA) not only supports the new bill, but has provided a copy of it at its website. Check it out here. (Credit: CAP)

Greg Tingle comment...

This online poker bill is most welcome news, and has been a long time coming.

Down under in Australia poker and I dare say, online poker, is already a strong part of our popular culture, just as are kangaroos, meat pies and Holden cars, and having a punt on the (horse) races and a bit of a spin on the pokies. By the way, Sportingbet is introducing V8Bet, so punters can be on the V8 Supercar racing, (Holden and Ford).

Some may not like this, and some will, but there's strong rumblings that sports betting might try to significantly ride off the back of this poker bill, as there could be legal arguments that there certainly are elements of skill (knowledge etc) in picking sports bet winners. A similar scenario of sorts with the game known as "Spot The Ball", which has long been a part of British culture, with numerous British newspapers running Spot The Ball competitions. Property listing companies such as Play4Property.com are taking the Spot The Ball game internationally, which isn't that hard to do with the internet as an medium of media, backed up by traditional media, journalism, marketing et al.

Friends, the rules have changed, and will continue to, in regards to online poker, online games of skill, online gambling, and the way business is conducted between people, corporations, media companies et al.

A few apt quotes from some gentlemen with some good ideas and track record of success, getting things done, and changing the world, and the rules of play!

James Packer - "Internet is like electricity"

Rupert Murdoch - "Big will not beat small anymore. It will be the fast beating the slow"

Charles Darwin - "In the long history of humankind (and animal kind, too) those who learned to collaborate and improvise most effectively have prevailed"

My tip, look to California to plug into online poker, online sports betting, and quite likely, online gambling as a whole. They have been pro active and early adopters on other social issues such as the environment, poverty and health.

You can bet that Harrah's Entertainment and their chain of hotel - casino - resorts will be watching this space, as will Macau's Cotai Strip, and even Parliament House down under in Canberra, Australia.

In this space, I'm sure glad to be a journalist, media agent and website portal developer, rather than an owner of a casino or online casino. The online poker and online casino happenings are most certainly extremely newsworthy items to cover. It's of course part of the larger civil liberties and freedom of speech - censorship debate. We should have the right to do what we like in our homes, as long as it doesn't hurt anyone. Also remember, sometimes the law is an ass, so just because something is legal or illegal, doesn't mean it is necessarily right or wrong. It just means its (current) law, some of which get changed for the better, some not.

As always, know your limits, bet with your head, not over it. If the gambling, or poker playing stops being enjoyable, its likely time to stop. Have fun, whether poker, pokies, spot the ball, or some other game tickles your fancy.

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