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

IMHO, the founders took tons off the table for themselves and in return left the greatest risks with the punters ...

Outcry as US targets City firms over online gambling

normal IPO then axdpc :-)

Fundamentalist :-) Yah, IMHO seldom in the history of IPOs have so much been taken from so many to give to so few ... !

and i thought i was the cynic round here fundy! ..... clearly "a bit of reality" is proving slightly contagious

cynic ..you should have took your brokers advice. LOL.

personally, would not touch on-line gaming shares with a bargepole .... much easier ways of making money

cynic...you'll never get rich with that attitude...he who dares

FILL YA FRIGGIN BOOTS!#

UK gaming takes on Europe
By Mark Choueke, Sunday Telegraph
Last Updated: 11:52pm GMT 10/03/2007



Britain's leading gaming companies intend to use a ruling from a top European court to fight for greater freedom to operate around Europe.

The Continent's state-owned monopolies have so far been reluctant to open their markets to foreign competitors. Many such monopolies are being challenged in a variety of courts by individual British bookmakers, online gaming firms and betting exchanges. If the $100bn (51.7bn) European gambling market were opened up to allow foreign competitors to trade freely it could be worth $140bn by 2012, said experts.

The UK companies said last week's European Court of Justice (ECJ) "Placanica" ruling that Italy's restrictions on Liverpool firm Stanley International Betting were discriminatory and out of step with EU law, will prove vital in their individual battles. The ECJ ruled that countries can write their own rules on gambling, but if they allow gambling companies to operate, they cannot discriminate against or restrict licensed competitors from abroad.

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Ladbrokes is currently fighting on four fronts, challenging Sweden, Norway, Denmark and Holland over trade restrictions. A spokesman said: "We are looking at how we can use Placanica to fight our cases. The market has to be prised open, the judgement makes it difficult for nation states to bring criminal proceedings against us."

Gala Coral chief executive Neil Goulden said the ruling brings the UK "one step closer to breaking down the European protectionists".

Betfair, the betting exchange, is currently trying to break into Germany where the authorities fear entry of foreign companies may encourage sporting corruption and financial fraud.

But Betfair managing director Mark Davies said all the UK companies fighting for free trade are not only well regulated but also "a million miles ahead" of the European monopolies in crime prevention. "Our British gambling brands can share our methods of crime detection with others in Europe if they allow us in. Betfair has a fraud and integrity team 60-people strong. Their reluctance to let us in has more to do with each country wanting the UK kept out to allow them time to develop their own gambling services and products which are less developed than ours," he said.

Warwick Bartlett, lead partner at Global Betting and Gaming Consultants, predicts the European market will be worth up to $140bn by 2012 if restrictions on trade are removed. "What the Europeans are saving in revenue by protecting state monopolies is less than the earnings they could rake in through tax revenue, jobs and foreign exchange if they lifted restrictions."

The EU commissioner for internal market and services Charlie McCreevy said the judgment will have "an important bearing on other EU countries."

Whats the news! Can't find a thing !

news at miday - partying gaming was the top performer on rehashed talk the us could relax its gaming laws. This is the reason for todays rise.

Apparently the reason is more like to be this janetbennison.

Stocks Surge Following Hopes that Charges Will be Dropped Against NETeller"

"The gaming sector was in demand on Wednesday. 888 added 4p to 120p on talk that Ladbrokes was about to come out with its bid, although some traders doubted this, saying Ladbrokes had been distancing itself from a move on 888 recently.

Other tales to explain the buoyancy in the gaming world, according to the Guardian, included a suggestion that charges against the founders of online payment group Neteller, suspended at 176p, were about to be dropped in the US. Alternatively there were hopes the US would introduce a new bill to water down some of the more draconian anti-online gaming measures. There was even talk that Gordon Brown was planning tax breaks for the industry in next week's budget.

None of this could be confirmed but online gambling stocks rode the wave of speculation Wednesday. The trend continued throughout. PartyGaming put on 3.5p to 41.5p and Sportingbet 2.5p to 58.25p.

A hearing will be held Friday to determine whether the US government pursues its case against two NETeller co-founders. Both men were charged in January with racketeering and money laundering.

blue lady the news I left is from the afternoon news from money am. I appreciate your news above and must say the rise could be to do with your news above. I sold my stock today. I may buy back in when the market stabilises. Thankyou.

Hi janetbennison,

Who knows the real reason for the rise, the main thing is the share price rose.

This I found from another BB.

Gaming Shares Rise as FT Says Frank Wants Ban Repeal (Update1)

By Louisa Nesbitt

March 14 (Bloomberg) -- Online-gambling stocks rose after the Financial Times said House Financial Services Committee Chairman Barney Frank wants to repeal a law passed last year that criminalized the industry.

Shares of Gibraltar-based PartyGaming Plc, the world's biggest Internet poker operator, rose the most since 2005. 888 Holdings Plc and SportingBet Plc also advanced in London.

``I am working on legislation to cut back on this Internet gambling thing,'' the FT cited Frank as saying on its Web site, referring to last year's law. ``I think it's preposterous,'' and the law is one of the ``stupidest'' ever passed, the FT cited him as saying. ``Maybe we can make some money off it,' he added.

Online-gaming stocks plummeted across Europe in October after Congress unexpectedly banned the collection of credit-card payments from gambling Web sites. PartyGaming lost about three- quarters of its revenue as a result of ending U.S. operations, while 888 lost about half its revenue.

``The slightest indicator that operators may get business back in the U.S. is going to get speculators coming in,'' said Andrew French, a sales trader at E*Trade Securities in London.

Stock in Gibraltar-based PartyGaming, the world's biggest Internet poker operator, rose 4.75 pence, or 13 percent, to 42.75 pence, the most since Dec. 8, 2005. Sportingbet, the owner of Paradise Poker, gained 3 pence, or 5.4 percent, to 58.75 pence. 888 added 4.5 pence, or 3.9 percent, to 120.5 pence.

Payment Processing

To crimp the flow of funds to betting sites, Congress passed the bill Sept. 30 to bar credit card companies from processing payments for the industry. Bush signed the measure into law on Oct. 13.

http://www.ft.com/cms/s/357d90ac-d29c-11db-a7c0-000b5df10621.html

Gaming shares up on hopes of end to ban

By Stephanie Kirchgaessner and Jeremy Grant in Washington and,Roger Blitz in London

Published: March 15 2007 02:00

Shares in online gaming companies jumped yesterday after a powerful Democratic lawmaker gave the industry a glimmer of hope that the sweeping ban Congress passed last year might be repealed.

Barney Frank, Democratic chairman of the House financial services committee, told the Financial Times the ban, formally known as the Unlawful Enforcement Gambling Act, was one of the "stupidest laws" passed.

"I am working on legislation to cut back on this internet gambling thing . . . I think it's preposterous," he said.

"I'm looking for ways, maybe we can make some money off of it," he said, signalling that he could be considering a proposal to make online gaming legal by regulating - and taxing - the industry. A spokesman for Mr Frank said he had not yet drafted any legislation and was still at a "thinking stage".

Although the Massachusetts Democrat represents a potentially powerful ally to pro-gaming interests, people who watch the issue in Washington expressed scepticism about the prospects for repeal. "It would be hard enough to get through the House. It is not clear how it gets through the Senate," said one lobbyist.

Under the rules of the upper chamber, a single lawmaker can - in most circumstances - block legislation from getting a vote. A spokesperson for Jon Kyl, a Republican senator who supports the ban, said he would oppose any effort to repeal the legislation.

Mr Frank said he was not ready to provide details about his proposal. "I am not ready to get into specifics yet. People have come to me with some ideas. Not Al D'Amato . . . and I'm looking at it," Mr Frank said, referring to the former New York senator recently named chairman of the Poker Players' Alliance, a lobby group that is fighting to legalise online poker.

Mr Frank's remarks prompted PartyGaming's shares to rise 12.5 per cent in London, while 888 Holdings was up 3.9 per cent on revived hopes of a takeover by Ladbrokes, the British bookmaker. Sportingbet, also the subject of a bid, was up 5.4 per cent.

Shares in the online gambling sector, rapidly seeking to consolidate, have been battered by the US ban and are vulnerable to worries about regulatory pressures.

A Washington lobbyist said that although Democrat Harry Reid, the Senate's majority leader, represented the gambling state of Nevada and had expressed reservations about whether online gambling could be regulated effectively, he was far from being an ally to online gaming interests.

He said yesterday's surge in share prices in part reflected the fact that investors did not understand the hurdles facing such legislation, which he said had less than a 50-50 chance of passing.

Greetings All

Sure turning out to be a white knuckle ride this one.
I don't seem to have the stomach to watch the sp gyrate so much.
Little worried it could drift down as quickly as it came up.

Regards

I sold out yesterday sold some in the morn at 40.75 then I sold the rest in the afternoon at 45.3p the day before they dropped down to .37p when last fri I could have sold at .415 like you say this can be up one day and down the next. I read a comment this moring that there is a less than a 50 percent chance of the bill being passed. I would buy back in a a lower price. with some more news they could go to .50p. Need to watch very carefully. I wish you all the very best of luck.

sensibly acted Janet!

this has been great trading share buy on the dips and set sell prices 2-3 % up lots of money to be made here

Hi All

Sure sgree with you in principle, but my timing seem to be out of synch.

I seem to get sucked into each rally and it hurts.

Cheers

casinos thrive on people who reckon they can beat the system! ..... have no reason to change my mind that this sector is best avoided, at least with real money ...... it's not even as much fun to watch as the lamented SUB which at least had an exciting product, even if it could not get it to work