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."

----

Gambling911.com News Wire

Originally published November 20, 2006 1:28 pm ET

you must have better eyesight than me for i perceive nothing at all exciting in today's trading .... in fact just strengthens the dullness of narrow trading band

Hi Cynic

Whilst I do see the narrow trading range ...............

Do you see any reversal of the very short trend and perhaps the price breaking through recent highs?

Cheers
Amar

Good morning Cynic

If you are thinking of getting into Party.

I assume that you are looking for it to trade above the 200 dma.
How long for?
Do you think it's too risky before then?

Any other comment re the chart.

Cheers
Amar

worth keeping an eye on now it has broken 200 dma ..... can it hold there today and/or tomorrow? ..... if so, one could prob justify (rationalise!) a careful flutter

It seems a senator is taking the Unlawful On-line Gambling Bill to Committee tomorrow 26th April to set the repeal process in motion claiming the WTO has judged the law illegal wrt WTO rules. Friday may see further comment and return to democratic processes in USA with laws determined in debate and not sneaked thru by fundamentalist religious fanatics attaching their prejudice to a major necessary and essential legislation.

Thanks alanatml2, but I don't see why the sp fell 10% thursday( today)...is this MM's shaking the tree?....looks a tad rough!
I'm holding.

There is news about gambling in the US. Just heard it in Bloomberg

I take it its bad news then ?? Any more info ??

By William Roberts and Brian Faler
April 26 (Bloomberg) -- Representative Barney Frank,
Democratic chairman of the House Financial Services Committee,
said he will introduce legislation to allow online gambling in
the U.S.
The measure wouldn't directly repeal a ban enacted last
year. Frank said at a press conference that his legislation
would allow Americans to bet online by creating an exemption to
the current ban for operators licensed by the government.
``The existing legislation is an inappropriate interference
on the personal freedom of Americans and this interference
should be undone,'' Frank said in Washington.
Congress passed legislation Sept. 30 that curbs financial
payments from banks to offshore Internet casinos that are
illegal under U.S. law. Sponsored by Representative Jim Leach,
an Iowa Republican who lost a re-election bid in November, the
law is aimed at shutting down the payment system for Internet
gambling.
Internet-based casinos such as PartyGaming Plc and 888
Holdings Plc, operating in locations such as Gibraltar and
Antigua, took in billions from U.S. gamblers.

Another little titbit to add to the pile:

According to casinocitytimes
SOUTH AFRICA As reported by the South Africa Herald: "If you can't beat them, join them . . . or at least regulate them. That is the attitude that the government has adopted towards the rapidly expanding online gambling and online poker industry.
"Having learnt from the United States that outlawing online gambling and online poker does little to solve the problem, the government is now on course to legalise online casinos.
"The SOUTH AFRICA government is expected to publish legislation before the end of the year that will regulate online gambling and online casinos"
More and more countries are deciding to legalize online gambling, latest Poland, Spain, Italy, Singapore, United Kingdom and now South Africa just to mention a few.

Anyone know what time the news hit the market ?

Here is the full version.....

By William Roberts and Brian Faler
April 26 (Bloomberg) -- Representative Barney Frank,
Democratic chairman of the House Financial Services Committee,
said he introduced legislation to allow online gambling in the
U.S.
The measure creates an exemption to a ban enacted last
year. Frank said at a press conference in Washington that his
legislation would allow Americans to bet online with licensed
Internet operators that put in place safeguards against underage
and compulsive gambling and agree to be subject to U.S.
jurisdiction and taxes.
``No member of Congress ought to abrogate to himself or
herself the right to censure the leisure time activities of
other people,'' Frank said.
``The issue here is whether adults who work for their
money, in the comfort of their homes, should be allowed to
engage in a form of recreation which they enjoy and which has no
conceivable negative impact on anybody else,'' Frank said.
The proposed legislation would let the U.S. Treasury
Department set protections against money laundering and fraud.
It bars betting on college and professional sports whose
governing bodies such as the NCAA and NFL don't sanction
gambling.

Financial Payments

Congress passed legislation Sept. 30 that curbs financial
payments from banks to offshore Internet casinos that are
illegal under U.S. law. Sponsored by Representative Jim Leach,
an Iowa Republican who lost a re-election bid in November, the
law is aimed at shutting down the payment system for Internet
gambling.
Internet-based casinos such as PartyGaming Plc and 888
Holdings Plc, operating in locations such as Gibraltar and
Antigua, took in billions from U.S. gamblers.
Frank introduced the bill with Representative Peter King, a
New York Republican, and 10 other co-sponsors. Frank and King
said they expect many other members will come forward to support
the legislation.
``This is a kind of libertarian, let-people-have-fun kind
of thing,'' Frank said.
The ban has ``activated'' online poker players and others
who are lobbying now for a reversal, he said.
The government of Antigua, which is home to dozens of
online gambling operations and has brought a complaint against
the U.S. in the World Trade Organization, praised Frank's
initiative in a written statement.
``While we have not yet seen the legislation,'' said Errol
Cort, Antigua's minister of finance and the economy. ``We are
encouraged that such a prominent legislator in the United States
has stepped forward in support of a rational approach to the
provision of remote gaming services.''


any comments??

Around 2:15pm UK time.

I am not sure how the market will digest this news, but would think it to be seen at the very least as 'Encouraging'................. I will be holding 100k shares for a while yet based on the fact I have already pulled some comfortable profits from PRTY.....................................

so it loses 7.50

MM's its their opportunity for pre-market profits ! The news spells out a way forward and not a way backwards. Do you not think ?

Reasons for today's drop?:

LONDON (Thomson Financial) - Partygaming PLC and other UK gaming stocks were down sharply in trading today after US Congressman Barney Frank introduced legislation that could benefit American gaming companies at the expense of overseas firms.
Frank, chairman of the US House of Representatives' Financial Services Committee, wants to introduce a Bill to lift the American ban on online gambling transactions. The legislation would allow licensed operators to apply for an exemption to the ban providing they have safeguards to stop underage gambling.

Partygaming was down 12.8 pct to 51 pence, while Sportingbet PLC was down 3.24 pct and Global Gaming Technologies PLC fell 5.6 pct. 888 Holdings PLC fell 2.3 pct to 118 pence.

The downturn in UK shares follows recent speculation that prohibitions on online gaming would be eased.

One trader noted that the selling of UK stocks was overdone, as the proposed legislation concerns security controls but does not constitute a comprehensive ban against British internet gaming firms.

but in this particular stock, the chart is not at all encouraging

Greetings all .

The speed roller coaster ride in the sp is making me very indecisive.

When it goes down ....... I think it's going down further .... and when it goes up .....
I don't buy ....... cos I think I've already missed the boat ...... and yet it continues to rise.

It's certainly jangling my thought processes.

More views welcome.

Cheers
Amar

easy .... if in doubt, stay out!