Online gamblers will need to fight for their own rights.
By Sarah Polson
The idealist in me would like to think that large companies
with lots of money would use some of it to help out the greater
good or fight for what they think is right. The realist, however,
knows that companies mainly look at the bottom line, and the
bottom line for staying in the United States to fight online
gambling charges or an online poker ban is a lot more costly
than just settling and taking their business elsewhere.
That's why it's going to take the "little man" to
make big changes for online poker and gambling in the nation.
While many online gambling companies have kicked in funds
to help Antigua and Barbuda's efforts to change the U.S. online
gambling laws at the World Trade Organization level, some
have actually been presented with direct opportunities to
challenge the laws as well.
BetonSports was one of the first to see its people and its
business attacked. It began with the arrest of then-chief
executive David Carruthers for racketeering, fraud and tax
evasion charges related to the online gambling business.
Several other were also arrested in connection with the company,
and BetonSports itself faced federal racketeering charges
in the country, despite being based outside the United States.
Not only is it headquartered in another country, but BetonSports'
business is legal where it is based. Its only "crime"
was allowing U.S. players to access its site to play poker
and place other bets.
It was a perfect opportunity for a company to take a stand
and challenge the legality of the online gambling ban in the
United States. Instead, BetonSports took the easy, less costly,
route of pleading guilty and paying fines - and also agreeing
to provide evidence against its former chief executive and
its founder, who are still facing charges.
Another giant in the online gambling world, NETeller, also
had an opportunity to directly challenge the laws in the United
States.
It too is based outside the country and provides an e-wallet
service that allows customers to transfer money from their
banks to online gambling accounts or other online shopping.
Its co-founders were arrested earlier this year, and the company
also underwent investigation for promoting illegal online
gambling by allowing the transfer of funds to online gambling
sites.
Again, it's a business based outside the United States in
a place where its activities are considered perfectly legal.
Its only crime: allowing U.S. residents to use its service.
NETeller knew it was going to be in a bit of trouble once
the Unlawful Internet Gambling Enforcement Act was passed
last year specifically targeting the financial transactions
for online gambling. It started shutting down online gambling
transactions for U.S. customers and then in January its two
co-founders were arrested.
With Stephen Lawrence and John Lefebvre facing charges of
conspiring to transfer funds for the purposes of illegal gambling,
and NETeller itself under a microscope, the company chose
to cooperate with the case against its founders and pay a
fine rather than fight the charges.
Companies like NETeller have the money to truly contest the
online gambling ban in court and try to make a change. But,
as I said, the bottom line is about money. A $136 million
fine is apparently more appealing than a court battle which
not only costs them legal fees, but can put a dent in the
company's reputation and further affect already falling stock
prices.
And yet, there are people out there willing to take on these
laws on their own.
Lee Rousso filed a lawsuit against the state of Washington
because of its online gambling ban. As the state's representative
for the Poker Players Alliance and a proponent of the game,
he stepped up to the plate to challenge the law making playing
poker online a felony.
He argues that the online gambling ban is unconstitutional,
and is waging his one-man war against it at the state level.
Another person taking on the issue at the state level is
online poker player Tony Sandstrom in California. His petition
to set up a state-owned online poker site in California has
been garnering media attention.
His proposal would have a site set up with 45% of the rake
taken from the games going to teachers' pensions in the state,
and another 45% of the rake going to veterans' homes, mental
health programs for military personnel and the purchase of
hearing aids and artificial limbs for veterans.
The petition even addresses problem-gambling concerns by
allotting the remaining 10% of the rake to fund gambling addiction
programs.
In order to qualify for the ballot, Sandstrom will have to
collect 430,000 signatures on his petition by the end of the
year. The odds of that happening are still better than the
odds that some of the poker sites being threatened with legal
proceedings will step up and fight.
PartyGaming, owner and operator of PartyPoker, as well as
888 Holding, operator of Pacific Poker, are the most recent
online gambling companies to make the news for problems with
the United States. Apparently they're both in talks with the
U.S. Department of Justice to clarify legal issues they may
have with the United States, even though they've both shut
down their sites to U.S. residents.
It's pretty much expected that the two companies will try
to settle the issue rather than head into a court case that
could be even more damaging to their stock prices.
There is one small organization trying to let out a big roar
against the UIGEA. The Interactive Media Entertainment &
Gaming Association (iMEGA), a not-for-profit corporation headquartered
in Washington D.C., filed a lawsuit against the U.S. government
to challenge the law. The case has an initial hearing date
of Sept. 5, though the U.S. government has asked for an extension
for responding to iMEGA's complaint.
It's an honorable effort on iMEGA's part, but in all honesty
I still find it a stretch to believe that one association
will be able to take down the law. The "Average Joe"
fighting at the state level will be what it takes to get things
changed.
Gambling has always been something that the individual states
have control over within their own borders. That's why states
have varying laws regarding gambling, including legal age
and types of gambling allowed, and why in some states it's
completely banned.
Say iMEGA manages to get the UIGEA undone, and the federal
government goes ahead with Barney Frank's legislation to legalize
and regulate online gambling - the states still have the ultimate
power to decide if they want to legalize it for their residents.
Washington state could still keep its online gambling ban
while Nevada welcomes online gambling so the casinos in Las
Vegas can get in on the action.
If people want to continue to play poker online, they've
got to start taking the issue to their state governments as
well as continuing to put pressure on federal representatives
to get the UIGEA changed. It's not going to be easy, and it's
probably not going to be quick, but it's never going to happen
if we continue to sit back and hope that someone else will
work on the problem or that the companies that make money
from you playing will step up in order to protect their income
sources.
There are still millions of people in other untapped markets
out there whom the poker sites can potentially target to make
up for the loss of U.S. trade. They'll take the easy, more
affordable route, because that's just good business.
If poker players want to play online in a completely legal
environment, they're going to have to be the ones to take
the hard route and make it happen.
Related Articles:
iMEGA Files for Restraining Order on UIGEA
California Proposal Models Swedish Poker Site
NETeller Forfeits $136 Million to U.S.
BetonSports Plc. Pleads Guilty in U.S.
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Wild Jack Mobile Casino Gets User-Interface Overhaul
London, 20th July 2007 Wild Jack Mobile Casino (WJMC), one
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Nicc Lewis, UK Country Manager for WJMC said,WJMC prides
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Daniel Negreanu hunts WCP title
Daniel Negreanu will be playing for Team Canada in the WCP
IV final.
By Erik Sylven
PokerStar's World Cup of Poker IV is coming to an end in
Barcelona. Canada, with Daniel Negreanu on the team, has reached
the final along with Iceland, Romania and the U.S.A.
The preliminary team scoring round of PokerStars WCP IV was
completed on Thursday, and these are the results:
Iceland - 45 points
Romania - 44 points
Canada - 40 points
U.S.A. - 37 points
Portugal - 33 points
Ireland - 31 points
Germany - 21 points
Mexico - 19 points
The top four teams will play a four-handed, tag-team tournament
to determine which country wins the prestigious title and
the $100,000 first prize.
Daniel Negreanu is not the only star player who will participate
in the final. 2004 world champion Greg Raymer is playing for
the United States. Katja Thater's Germany was, however, knocked
out in the preliminary round.
The final can be viewed via webcast at PokerStars TV. The
action starts Friday night at 6.30 p.m. (CET).
For more information visit www.pokerstars.com/wcp.
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