Online poker prohibition could be overturned
Poker Lobby & AGA groups aim to end Online Gambling Bill


The Poker Players Alliance and executives for the American Gaming Association (AGA) say they are hopeful that the recent political changes in the U.S. Congress will help them overturn the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA).

You may recall how the UIGEA was appended onto to the sure-to-be-passed Safe Port Bill when most Senators had already cast their votes and left, in the final hours before the Republican-controlled Congress adjourned for mid-term elections.

The UIGEA, while not making online poker illegal, did made it illegal for banks and financial institutions to process transactions for online gambling sites from U.S. customers when it was signed into law on October 13. Regulations that banks need to comply with have yet to be defined. A Government board has until July 2007 to define them.

AGA President Frank Fahrenkopf said the AGA previously opposed online gambling, saying, "Our policy changed back in April when we took a position that we thought the best way to go was to have an independent commission look at it."

Many analysts around that timeframe noted how online gambling actually lead to previously hesitant players coming to the physical casinos, swelling the number of overall casino visitors, which likely helped change AGA's perspective.

So the AGA board of directors will meet December 6, said Fahrenkopf, to consider whether "to support legislation in the new Congress calling for an independent study of Internet gambling to see if it can be properly regulated, controlled, taxed and licensed here in the United States."

Fahrenkopf pointed out, "My guess is that they are going to say let's go ahead and do it."

This past week Terry Lanni, chief executive of MGM Mirage who is an AGA board member, said the UIGEA is "ridiculous" because it was signed into law Oct. 13 as part of a larger port security bill -- and because it exempted horse races and lotteries, and online bets placed while on American Indian land.

Nevada Representatives Jon Porter and Shelly Berkley had previously introduced a bill to create a Congressional Commission to study Internet Gaming this past May. But the bill died. Noteworthy is that both Porter and Berkley were re-elected last week.

In contrast to the prior Congressional Commission proposed, if the AGA votes for a study it has already said it prefers an independent commission such as the National Academy of Sciences to do the study, noted Fahrenkopf, so results are free from the influence of lobbyists.

AGA's board includes CEOs from some the biggest live casinos in Las Vegas, such as Boyd Gaming CEO William Boyd, Harrah's Entertainment CEO Gary Loveman, MGM Mirage CEO Terri Lanni mentioned above, and Wynn Resorts CEO Stephen Wynn, amongst others.

Many bloggers have remarked if these well known casinos launch their own online gambling sites then a large majority of players will play at them because of brand recognition and huge marketing budgets, causing yet another re-alignment in the online gambling industry.

In an interview with Reuters news service, Fahrenkopf also remarked how the stated goal of the UIGEA was to protect American citizens. Instead, he noted, it caused many legitimate and responsible operators to pull out of the U.S. opening the way for unregulated companies to fill the void, since most US players were likely to continue gambling online.

He did not go as far as many others have to call the legislation Prohibition II, as did Pulitzer Prize-winning writer George F. Will in Newsweek's Oct 23rd edition and U.K. culture secretary, Tessa Jowell.

President of the 120,000-member Poker Players Alliance (PPA), Michael Bolcerek, said that results of the Congressional election have emboldened the PPA.

"Our members and other poker players went to the polls. They influenced the federal election," he said. "In the next 12 months we're confident that we'll get a study commission bill. We think an exemption [for online poker] is in order, as well."

Legal expert professor I. Nelson Rose, of the Whittier Law School, harshly criticized the UIGEA, saying how it is confusing and contradictory with all its exemptions, and noting how a portion of the bill even sanctions Internet betting conducted within states and tribal lands.

"It's a public embarrassment...it's a mess," said Rose. "Eventually I think they'll get Congress to change the law to do for Internet poker exactly what they did for Internet horse racing. It's an exemption but (based on) states' rights."

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Gambling911.com News Wire

Originally published November 20, 2006 1:28 pm ET

Greetings to you all.

Nice to read your postings and thoughts.

Re prty janet ......... I took profit on Friday afternoon.

Didn't fancy holding over the weekend.

Seems to me that after the news comes out they tend to drift back (remember I got sucked in last time ......... also , this is not really any fresh news)

So, Janet, I'm looking for a pullback to around 47, before another upward march.

Do any of you use charts with any suuccess?

Cheers
Amar

yes ...... but not on this stock as i don't like the sector at all

amardev if you are correct and prty do drop back down to around the .47p level. Then I may buy back in. Things are definatly changing all of a sudden. Gordon Brown has now decided in the budget to charge income tax on internet gaming. Charges are being dropped in louisiana, spelling may be wrong. I decision tomorrow will be sbt whether to sell or not. Has anyone heard any more news on this one being taken over by bwin. Time for a cuppa. good luck to all.

I have had some fun with these PRTY, I CFD them at 45p, there is a 20% margin on these so the leverage is only 5 times, still have more than doubled these guys...

Iagree Janet things are looking much brighter-I am now back into prty and sbt in a small way. I'm hoping to make back my previous losses in fact if I'd held my nerve and doubled my holdings I'd be well up by now!

I am still way down with losses from these gaming shares from back in october. I keep getting some money back here and there but I still have a long way to go. If we all had the crystal ball and could see what is happening with these shares we would be all on to a winner. We will have to keep plodding on. Sometimes we will win and sometimes we will lose. A fortnight ago I had 133,000 shares in prty, I sold some at .40759 and in the afternoon some at 45.3p. I bought 28,000 back at .42.5p sold at .445p. Then my bottle went. I thought then that they had gone as far as they were going. Then look what happened they went to 55p. Unfortunatly I did not replace the 133,000. Lets see what the coming week brings. This is all good fun. good luck. I think we all need a little.

Janet ..... draw a line under old losses and certainly do not be foolish enough to try to recoup same from the stocks that cost you so dear ..... move on .... if by some fluke, these gaming stocks look genuinely attractive, then buy them but on their merit on the day

I think PRTY will continue to go upwards. It was oversold and with recent European Union support on internet gambling and release of charges on SBT directors on this issue, this has to be a BUY.

Maybe, but BWIN is planning to out perform PRTY.
PRTY need to broaden their customer base or be left behind, imo.
Moral: If you can't afford to lose it, don't buy.

Great to hear all your different points of view.... that afterall, is what makes the market place.

Cynic .. we all know that Torex is currently suspended ............... did you have a view on it, when it was making positive noises back in November.

Cheers
Amar

ps. good luck to all traders

Greetings hlyeo98 ................ I agree there is more mileage in prty.

But surely it can't 'continue upwards' in a straight line.

I still feel a pullback, consolidation, then an upward march ........... to who knows where. I could be substantial as these climbs are all new highs, after the rout of last year.

Cheers
Keep posting
Amar

amardev .... sorry but have never even looked at that stock .... not even sure what they are supposed to do, but clearly did not!

Thanks anyway cynic.

I only asked the question, to debate your view on investing / gambling.

I bought into the story ........ had 150k shares a week before they were suspended.

At time of suspension I was holding 25k shares. IT HURT!

Regards
Amar

sorry to be dense, but note that torex was something to do with retail software ..... what is the link between that and investing/gambling ..... with regards to the last two words, i think there is little difference .... one is just a euphemism for the latter - i.e. a way to try to make or lose a quick buck

Looks like the onslaught on online gambling is not over yet...bad news below.


BETonSPORTS founder arrested in Dominican Republic
Friday March 30, 08:26 PM

NEW YORK (Reuters) - The founder of the London online gambling operation BETonSPORTS, Gary Stephen Kaplan, was arrested late Wednesday in the Dominican Republic, a U.S. attorney in Missouri said on Friday.

Kaplan was indicted in June by a federal grand jury in the Eastern District of Missouri, the U.S. attorney's office said in a press release. The indictment accuses Kaplan and 10 others of engaging in racketeering, conspiracy

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and fraud, arising from the operation of Costa Rica-based Internet gambling businesses, including BetonSports.com.
Following Kaplan's arrest in the Dominican Republic, the U.S. attorney said he was sent by Dominican authorities to Puerto Rico to make an initial appearance before a U.S. Magistrate Judge.

The U.S. attorney's office in St. Louis, Missouri plans to ask the Magistrate Judge to order that Kaplan be sent to St. Louis immediately or be held in custody pending a hearing to remove him to St. Louis, and that he be held without bond.

BETonSPORTS, which once traded on the London Stock Exchange, was forced in August 2006 to close down its U.S. business which accounted for 95 percent of its profits.

The U.S. crackdown on online gaming began last July with the arrest of BETonSPORTS Chief Executive David Carruthers during a layover at a Texas airport.

old news mate....was arrested thursday anyway

recent news last week

DOJ May Drop Charges Against Gary Kaplan Family Members
Rumors abound that BetonSports founder Gary Kaplan's arrest in the Dominican Republic was no coincidence and its timing had nothing to do with the World Trade Organization decision related to the United States "illegal" online gambling ban.

"G (Gary) is a super smart guy...always has been no matter how he conducted himself," a valuable source tells Gambling911.com.

It should be noted that Gambling911.com sources warned of massive arrests on Wednesday. Approximately 12 hours after our initial report, over 70 people were arrested throughout the day Wednesday, resulting from their role in a lucrative bookmaking operation. Kaplan was arrested later that evening.

According to stories coming out of Costa Rica, Kaplan's wife wanted back in the United States. Gambling911.com can confirm that she had intended to leave Costa Rica years ago and live separately from Gary. One of the reasons Gary chose to bring his company public in fact was an "escape route". He wanted to eventually leave Costa Rica and live with his wife and children back in the States.

Our source has disclosed that Gary Kaplan was already in negotiations prior to the July indictments with the IRS to pay taxes so he could return home.

"G met in 'Dom' as a 'safe' place to negotiate with DoJ," our source adds. "(There is) some sort of deal on table including disgorgement and
dropping charges against family members."

Many industry experts questioned what Kaplan had been doing in the Dominican Republic, a country that has a strong extradition relationship with the United States and is only a short flight away from Antigua, which has demonstrated it is willing to protect online gambling operators and provide them with a safe haven. Kaplan also had strong ties to the island nation. BetonSports maintained a license and accounting facility there.


Once brimming with activity, the BetonSports reception area is now dead quiet and closed

Furthermore, another co-defendant in the BetonSports case is still at large in Costa Rica. Norm Steinberg, who ran BetonSports sister gambling firm Millennium, freely moves around in the Central American nation. Steinberg has served some prison time for a violation unrelated to internet gambling not more than two years ago.

The only other co-defendant still "on the lamb" is Peter Wilson. He is not believed to be considered a major target in this case. "Peter Wilson" (AKA Peter Wolf) is also believed to have been an alias. Wilson was turned by BetonSports executives when he attempted to find out what he should do in regard to the complaint. Wilson was merely an "employee" in the enterprise, much like some thousand others.

Gary's sister is facing a 20-year sentence if convicted. Reports suggest she was not a major figure in the BetonSports organization during her tenure there. Aside from CEO David Carruthers, none of the British Board of Directors are yet to be charged with any criminal activity despite failing to pay out millions to customers.

A brother, Neil (AKA Scott) is believed to have had little to do with BetonSports daily operations much of the time the investigation had transpired.

Neither Neil or the sister (Laurie) have any prior arrest records. Most of Gary's family members were made aware of his arrest by late Wednesday within hours of his detention.

The legal team representing Kaplan family members has been working hard to move the venue from St. Louis to Florida.

In an interesting twist, the US government has reportedly been waiting on the outcome of the World Trade Organization decision before scheduling a trial. The defendants cannot use the WTO in their defense since they were not specifically part of the complaint brought by Antigua and against the US. The United States, however, could have used the WTO decision in their favor if the World Trade Organization had not sided with Antigua. In this sense, the WTO decision does have important implications for this case.

The United States new law would be recognized as "legal" by the World Trade Organization only if they remove provisions that make horse racing legal. The WTO ruled this carve out to be "protectionism".

On the surface, the US government might not have much to fear from tiny Antigua imposing sanctions on it (no more bananas maybe, no more sugar cane). In reality, Antigua's power is much greater.

Antigua may seek sanctions in the form of withdrawing intellectual property protection for U.S. trademarks or copyright. Known as ``cross-retaliation,'' such sanctions are legal at the WTO when an economy can't afford to impose sanctions in the form of higher customs duties on goods.

``We're really hoping that as their options run out and the U.S. sees that they can't delay any more, they'll enter into negotiations with us,'' Mark Mendel, chief legal counsel to Antigua said in a telephone interview from the Caribbean.

``The writing is on the wall, and anyone who takes the time to read the report will realize it's not true'' that the ban can be justified on moral grounds, he said.

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Christopher Costigan, Gambling911.com

Originally published April 1, 2007 12:53 am ET

Greetings!

What are your thoughts on the impact of this on prty, in the short term.......or has the sp already reacted.

Thanks for your comments.
Amar

Small price-changes, as the Market twists about. I'm not convinced PRTY was ever a good value stockat 1++...but it was oversold at c 30p when I bought. Currently (50p) I suppose it depends on "when" you buy - if you are staring at losses, that will make you harden against the Management...who made easy money in the US, although the writiing was on the wall it would stop.
I guess we have to wait and see what profits are being made in Europe (and East) as this will put a floor on the sp. For those about to buy I'd suggest they wait until it becomes clear; IMHO there isn't enough headroom visible to allow any safety-margin. At a buy-in of 30p I can hold-on without worry. If you trade frequently you will make yr broker rich. Better to look for another lowly stock the Market has missed....can't think of any just now, but PRTY is unlikely to give a spectatular gain short-term IMHO starting now at 50p. Furthermore I'm not too happy with their EGM-deal with the Co located in Gibralta....difficult to go round and check...

Bloomsbury looks out of favour and there's a new H-P Book soon! Thats bound to cause excitement - ignore their losses and lack of good Titles - this B-stock is for trading....what do I know? The H-P printers, St Ives(SIV) saw a 50% rise in a few months.....nice when combined with a healthy yield.
I hold PRTY and SIV -both qualify for ISA.