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

sit tight richard

probably the wrong call ...... difficult to do, but i believe the hard-nosed would always say run the profit but cut the loss ..... few of us (self included) are much good at following that wise adage.

I'm guilty of finding that hard to do also.

All gaming stocks down a touch this morning. Let's hope it's just through lack of any news.

Would like to see party hold the 50p level.

Cheers
Amar

Greetings to all holders.

Janet ........ are you still in.

Nice rise over 2 days and still looking strong.

Cheers
Amar

yes I still have the 30,000 not a bad buy at .5172p. Any idea why they are on the up.

Ok I went in at 40.47p, the big question is when should I now come out ??

The news about this guy in US going to try and get the law repealed was headlined yesterday.

Good to hear from you.
Remember to take a profit at some point.

Cheers
Amar

Well done to you too Mengelbretson.

I think a lot depends on how many you bought as well.

A 100k shares will tempt you to cash in more than if you're only holding 10k.

Best of luck.
Amar

while admitting that i will not touch this sector, my strong advice would be to run tight stoplosses for though there have been some good rallies, i really cannot believe that all will be sweetness and light in the foreseeable future.

Fair comment Cynic.

If you are a trader ........... it certainly is a good trading stock.

Amar

Drifted lower this afternoon.

Sold out at a profit.

Cheers
AMAR

someone (amardev?) told me off quite correctly the other day on another thread for being prejudiced against this sector/stock, so decided to take a look ....... the chart below implies that 200 dma (black) is or will prove something of a resistance ..... rsi is also a bit hefty

25 dma (red) at 50 should support, but if both presumptiosn are corrcet that gives very little room for volatility, so no hurry to get in as a trader.

Good to get some dialogue on this thread.

Let's keep it gentlemanly.

Any reason why you chose the 25 dma as opposed to a shorter period.

I'm anticipating a gentle climb upwards.

Cheers
Amar

if there was 20 day, i would use that ..... my guru in these matters tells me 20, 50 and 200 are the key daily averages to watch ..... of course charts are byt no means failsafe, but they do provide some useful guidance in all sorts of ways.

not sure what effect if any next rate hike will have on the market, but i certainly see hurry to get in as yet.

by the way, unlike some, i do not get my rocks off with personal abuse

Thanks!

Hear! Hear!

Amar

Morning all

Lack of any news? ................. causing the stock to drift.

Cheers
Amar

chart tells you plenty ..... markets in general are very weak following release of chinese gdp showing stronger growth than expected = interpreted to mean higher underlying inflation .... markets in general due for correction following 6 from 8 days of gains

Hi all.

I wonder if it will retest the 50 dma.

Cheers
Amar

Not today its not !!

currently tracking in a very narrow band ..... will look at taking a position once it restarts it usual volatility ...... good enough for you amardev ... lol?