Let your mouth speak archive

Due to the relaxation of online gambling laws in the U.S. it is expected that many of the social gaming networks would get in on the action. However, apparently Zynga, the maker one of the leading social network poker games, is not interested. It has been reported that Zynga doesn’t want to risk losing their current loyal players and hasn’t even investigated the possibilities of real money gambling for countries where the laws are less strict.

Zynga currently operate Zynga Poker and they are preparing for the release of Zynga Casino and Zynga Bingo. This means that the infrastructure for real money gambling is already there are there are some rumours from Zynga HQ report that they are considering making the switch.

Last month Zynga debuted on the market and it is currently trading under its offering price of $10. At present they are facing intense competition from CastleVille, the newest and one of the most popular games on Facebook. CastleVille which was released by the makers of CityVille currently has 37 million active monthly users and Zynga will have to prove that they can keep producing popular games if it wishes to retain its place in the market.

However, Zynga has started experimenting with platforms outside of Facebook which could see their user base grow. It recently announced a number of releases for Google+ and just launched two new games for iOS. They have also recently launched Zynga Poker for Google TV.

Whilst Zynga don’t want to alienate their current user base by switching to real money gambling, they may find that as the social gaming market heats up it may be necessary in order to stay ahead. If the rumours from Zynga HQ are true then over the coming year it wouldn’t be surprising if they launched some real money gambling games.

Mobile gaming specialist Probability (LON😋BTY) today said it was excited by the possibility of online gaming being allowed in the US and had already started talking to possible partners.

The Department of Justice recently said that its ban on online gambling now applied only to sports betting, which observers said effectively allows legalisation of online poker and casino games on a state-by-state basis.

The LadyLuck's brand owner said it had noted “with interest” the recent developments in the US.

Charles Cohen, Probability’s chief executive, said: “We are very excited by the prospect of individual states opening their local markets and already it seems that several are making plans to do just that.”

"This is a perfect scenario for mobile gambling because mobile is the only platform where the location of the user can be assured with any degree of certainty at the time they place their bets. Over 109,000,000 Americans are already using apps on smartphones which are capable of running our games”.

"We intend to actively pursue this opportunity and are already engaged in early stage discussions with several parties in the US to explore our options," he said.

Probability added that trading was strong in all areas of its business in the last three months of 2011.

December saw record player deposits and activity with over £1m wagered on Christmas Eve.

Net Gaming Revenue rose 27% to £1.88 million over October and December compared to the same period last year, with total money deposited by customers into their gaming accounts 48% higher.

There was a 55% increase in the share of deposits coming from iPhone, Android and other Touch device users in the quarter.

Cohen added: “We are clearly seeing the benefits now of our increased and sustained investment in television advertising to attract new players. Yields per player have continued to increase, due to continued product investment and our market leading CRM capability. Net gaming revenues were not just better compared to last year, they were also 10% above July to September this year.”

“As with the Christmas period last year players had a higher tendency to withdraw profits than usual, but we would expect our operating margins to return to normal and have seen improvements already in the first two weeks of January. Also in line with previous years, we expect January to be a slower month overall.”

Probability is mulling an increase its TV advertising, though says because of the six-month payback time from a TV campaign this would affect profitability in the short-term.

A final decision on whether to go ahead will be taken later this month.

The gaming group is close to activating its service in Mexico with Caliente, with a live launch expected in the in the final quarter of this financial year.

Italy remains on hold, with the Italian regulator yet to authorise the offering of slots games and no time table for a decision.

The B2B business had a strong quarter with a number of new customers also in late stage negotiations.

Since the beginning of the New Year there has been an increase in the activity concerning the proposals for the secondary taxation on offshore online gambling operators in the United Kingdom. Both the government and the industry are involved.

A select parliamentary committee is studying several aspects of the gambling industry, including the possibility of secondary licensing and taxation of online gambling. Former political leaders responsible for gambling in the UK deposed before this committee. Among them were the former Sport and Tourism Minister Richard Caborn and former Culture Secretary Tessa Jowell. They mainly told the committee how the proposal for multiple land super-casinos was deferred following adverse media publicity in the run-up to the 2005 general election. Jowell said that this was a small price to pay for securing the 2005 Gambling Act. Jowell also said that the proposals for the betting machines had been put on probation because the Labour government felt that it would lead to problem gambling. Several other personages associated with gambling in the UK will be appearing before the committee in the coming days.

The online gambling operator William Hill had commissioned an independent survey by the respected international professional services group Deloitte. The results of that survey reveal that if the tax burden on online gambling was increased then UK punters would be driven to unregulated sites and smaller operators would be forced out of the market. If the additional tax was 10% then there would be a loss of 27% of current revenues and if the additional tax was 15% then there would be a loss of 40% of current revenues. There would be a cascading effect on corporation taxes and sports sponsorship as well. Deloitte pointed out that high rates of taxation in France and Italy have led to the emergence of a large unregulated sector. William Hill has submitted the report to the Treasury, which is reviewing a possible new tax regime for online gambling. Ralph Topping, chief executive at William Hill, said, "Money will always find a way out. More people will go overseas or to fly-by-night, unregulated sites where the consumer is not protected. I hope the Government sees sense on this."

Though the gambling group Rank has operations in both land and online gambling, its CEO and chairman Ian Burke, pointed out that online gambling operators pay lower taxes than land based gambling operators. He stated that the European Parliament has found that online and land gambling are competitors, and that legislation that favors one over the other amounts to state aid and is bad government practice. Therefore he proposed an equitable and harmonized tax regime for both. Another factor to be considered according to Burke was that land casinos generate more employment than online ones. Therefore a shift from the former to the latter would result in rising unemployment.

Anyone who has held a lottery ticket knows the thrill of taking a gamble. Personally, I recall the emotional intensity of the poker games in the basement of my friend’s house as a child. With money on the table, even as a 12 year-old, this friendly get together was no longer a game. Five years later, I recall passing through an Atlantic City casino on a family trip shocked to see it full of yarmulke-wearing Jews. I wondered if gambling was an acceptable Jewish sport.

A few weeks ago, the Justice Department reversed its position on the 1961 Wire Act saying that it applied to sports betting but not online gambling. This change will give states the ability to legally operate more online gambling and will inevitably inspire an explosion of internet gambling across the nation. Casino advocates suggest that increasing access and funding to the gaming industry will provide more jobs and entertainment. Is every job worth filling? Clearly, we should not support prostitution simply because it employs more people. About $5 billion is spent on gambling in the U.S. every year. Those who are addicted to gambling can accrue tens to hundreds of thousands of dollars in debt, leading to bankruptcy, poverty, which in turn often lead to prostitution or theft. Further, neglecting to cultivate impulse control can lead to many other types of legal and moral mistakes. Gambling, at its worst, can lead to the most significant dangers. A study found that 17% of suicidal patients in Australia had gambling problems.

Many enjoy a casual game of poker with some friends. However, others have taken the game too far, to the point where gambling destroys them and their families. One need not be diagnosed as a “clinical pathological gambling addict” to know there is a problem. Gambling addictions can be manifest in many ways including certain careers where one is constantly playing the stocks with too much risk.

Statistics show that those with compulsive gambling problems are more likely to harm family members through domestic and child abuse. Further, children raised in a home with parental gambling problems are at significantly higher risk of suffering from depression, behavior problems, and substance abuse.

From a religious perspective, we are told to live by reason and faith (not luck of the dice) and that our parnassah (sustenance) should be attained through work.

The rabbis state that there are two types of gamblers that are untrustworthy and therefore not valid witnesses in a Jewish court of law. These are the dice-player and, according to one opinion, the man who bets on pigeon-racing (Rosh Ha’Shanah 1: 8 and Sanhedrin 3: 3).

The rabbis argue whether gambling constitutes thievery (Eruvin 82). Rabbi Yehuda argues that "Asmachta Kanya,” i.e., gambling is not theft. Since both parties who gamble are aware that they might lose their money, and they accept the terms of the game; the winner legally acquires the money from the loser. The Sages, on the other hand, argue that "Asmachta Lo Kanya" – earning money through gambling, where the bettors believe they will win and the loser surrenders his money halfheartedly, does not constitute a proper legal acquisition. The rabbis thus suggest that earning money through gambling is considered theft.

Tosafot follows the position of Rabbi Yehuda that gambling is not theft, but argues that significant gambling would be forbidden. Rambam, however, is more stringent and argues that gambling is indeed theft (via rabbinic decree). Rabbi Yitzchak Ben Sheshet (the Rivash) argues that even if gambling is not strictly forbidden by Jewish law, it is nevertheless a "davar mechu'ar" – a disgusting activity.

While it may technically be permitted, according to some, to play cards, bet on horses, and participate in a raffle in a social manner (Chavot Yair 61; Arik Responsa, ii, no, 65), when it’s taken to its extreme it should be condemned. Rav Ahron Soloveichik suggested that one has violated the Torah by being addicted to anything. A person shouldn’t run after the lusts of this world and sell oneself to them. We should seek activities of leisure that add meaning to our lives and benefit to others. One may justify an occasional casual, low-stakes game of cards to connect with friends, but gambling as a consistent high-stakes activity is forbidden at most and deeply frowned upon at least.

Our core Jewish values are most relevant not only when we work but also when we play. What games we play and how we play them when we’re “off” serves as one of the greatest indicators of our true character.

In a move reflective of its industry-leading product offering and proven dedication to the online poker community in the United States, the Yatahay Poker Network has announced a name change. Effective January 12, 2012, the Yatahay Poker Network has been renamed The Winning Poker Network.

“It’s more than a name, it’s a mantra,” stated a spokesman for The Winning Poker Network. “Our promotions are better, our guarantees keep getting bigger, and our software delivers everything players ask for. Players who love to win are hitting our network in record numbers and the entire poker world has good reason to be excited about what’s ahead.”

The name change is a natural fit for a network that has grown substantially since early 2011. After the fall of the big three last April, the Yatahay Poker Network positioned itself as the best destination for U.S. players looking for a safe, secure and fun online poker site. It did so by substantially improving its software, by acquiring respected online poker site DoylesRoom, and by committing big money to growing its online poker community.

The online poker network has seen substantial growth, thanks in large part to its desire to be the top online poker destination for U.S. players and those around the world. Players at The Winning Poker Network’s online poker sites—including Americas Cardroom, True Poker, BetCris and others—have seen prize pools in tournaments grow on a monthly basis over the last six months.

While the name is new, the online poker network has a stellar history of servicing online gaming customers. Established in 2001 as Yatahay, The Winning Poker Network offers cutting-edge software to operators that wish to offer online poker and casino games. The Winning Poker Network boasts a full-service operation catering to customers amongst established gaming operators.

State lawmakers who want to legalize Internet poker in Iowa are putting their chips on a new plan for online gambling that could open the door to multi-state poker pots with more players.

State Sen. Jeff Danielson, D-Cedar Falls, said Tuesday he believes a recent U.S. Department of Justice opinion will allow Iowa to enter agreements with other jurisdictions that have approved Internet gambling, including Washington, D.C. and Nevada, and possibly some foreign countries.

The Justice Department opinion, made public last month, says a federal law known as the Wire Act only prohibits sports betting over the Internet. In the past, the federal government has used the law to justify opposition to most forms of Internet gambling, which had led Iowa lawmakers to only consider offering Internet poker games within the state’s borders.

“We believe that because of the Department of Justice ruling, we can now have a multi-state compact,” said Danielson, chairman of the Iowa Senate State Government Committee. He compares his proposal to the agreement the Iowa Lottery uses to participate in Powerball, a lotto game with big jackpots offered in 31 states, plus Washington, D.C., and the U.S. Virgin Islands.

Danielson said he plans to draft a bill soon to legalize Internet poker in Iowa, and he expects it to be considered this session, although he doesn’t have a timetable yet.

At the direction of state lawmakers, the Iowa Racing and Gaming Commission last month released a report looking at establishing a regulatory framework for Internet poker within Iowa’s borders. The research estimates poker operators could pull in a “rake” of $13 million to $60 million annually from the games. Assuming a state tax rate of 22 percent — similar to Iowa casino taxes — those projections would generate an estimated $3 million to $13 million in potential annual tax revenue.

State Sen. William Dotzler, D-Waterloo, said Tuesday he will likely serve as floor manager of the proposed Internet poker bill.

“I think the evidence is pretty clear that Iowans are already gambling online. We are losing a lot of revenue here in the state of Iowa,” because Iowans are using off-shore Internet gambling accounts, Dotzler said.

No formal opposition has surfaced against Danielson’s Internet poker proposal, but the idea of Internet poker hasn’t been popular among the general public. A Des Moines Register Iowa Poll in January 2011 showed that 73 percent of Iowans were opposed to online gambling. Only 23 percent were in favor and 4 percent were not sure.

“I would absolutely have concerns about this, especially for young people who would be exposed to fast-action gambling on a computer terminal, said Tom Coates of Norwalk, a longtime critic of Iowa’s gambling industry.

A report last fall by the University of Northern Iowa’s Center for Social and Behavioral Research found that 5 percent of Iowa adults have gambled on the Internet and 2 percent had done so within the previous 12 months..

One strong supporter of legalized Internet poker is U.S. Digital Gaming of Beverly Hills, Calif., which has been lobbying Iowa lawmakers for two years in support of legislation. The company proposes to operate a “hub” for Internet poker in cooperation with Iowa’s existing casino industry.

“We believe that Iowa has enough of a population of players to support a network on its own; that you wouldn’t need the interstate component in order to make it viable. But it certainly makes for a more robust opportunity if you set up the interstate opportunity,” said Kirk Uhlers, vice president of governmental affairs for U.S. Digital Gaming.

But efforts in Iowa and other states to offer online gambling is raising some worries by casino industry officials who believe that Congress should address the issue nationally.

Holly Weitzel, director of communications for the American Gaming Association, a casino industry group based in Washington, D.C. said the Department of Justice ruling shows an urgent need for federal legislation. Her organization is concerned a state-by-state approach would result in a “patchwork quilt of rules and regulations” governing online gambling in the United States and the continued proliferation of unregulated foreign gambling web sites targeting millions of Americans playing online poker.

The Pokers Player Alliance, which claims 1 million members, expressed similar views. “This ruling makes it even more important that Congress act now to clarify federal law, and to create a licensing and regulation regime for Internet poker, coupled with clear laws and strong enforcement against other forms of gambling deemed to be illegal,” said John Pappas, the group’s executive director.

Wes Ehrecke, president of the Iowa Gaming Association, which represents 18 state-regulated casinos, said some members of his organization also favor a federal law to address online gambling. But in the absence of action by Congress, Iowa’s casino industry generally favors a plan to allow the regulation of Internet poker by the Iowa Racing and Gaming Commission to ensure the integrity of the games and to prevent minors from participating, he said.

While Australian politicians are debating how to minimise the harm done by poker machines, researchers are warning that sports betting and online casino games are the fastest growing form of gambling in Australia, and could become a serious problem in the future.

The biggest study of online gambling habits in Australia has found problem gamblers are losing an average of $825 a month.

Suzanne Hill reports.

SUZANNE HILL: Researchers from Southern Cross University's Centre for Gambling Education and Research surveyed 6,500 online gamblers, and found that half of them started playing online in the past six years.

Lead researcher Dr Sally Gainsbury says that means Australians are taking up online punting and gaming faster than any other form of gambling.

It's estimated Australians now spend $600 million a year on online gambling.

Sixteen per cent of the participants in the study were deemed to be problem gamblers and Dr Gainsbury said many of them admit the comfort of playing from home can be particularly addictive.

SALLY GAINSBURY: Internet gambling actually does offer unique risks compared to other forms of gambling. So because it's available all the time, it's private and you can gamble without anyone really finding out, people are saying that - half the internet gamblers, problem internet gamblers said that it disrupted their sleep and around a third reported it disrupted their eating.

So that constant availability is really disrupting people's normal functions.

SUZANNE HILL: She says the amount of problem gamblers online is only likely to grow.

SALLY GAINSBURY: Absolutely, internet gambling, one of the most important things is that these people are at risk because it's so easy to do. It's actually happening to a new population, so you're getting more people gambling. It means that there are going to be a greater number of people reporting problems relating to internet gambling in the future.

SUZANNE HILL: Dr Gainsbury is calling on the Government to look into more regulation for the online gambling industry, something she says should be easy to do.

SALLY GAINSBURY: Similar to the efforts put into making sure that the pokies are played in as safe a way as possible, there needs to be more responsible gambling strategies for online. So we should be seeing pop up messages telling people how long they've been playing for and how much they've been spending.

These type of things are actually much easier to do with online because you can track an individual player. People are using accounts, they're not putting cash in, so we can tell how much individual players are spending.

TONY EASTLEY: Dr Sally Gainsbury from Southern Cross University ending that report from Suzanne Hill.

Internet gambling is on the rise in Australia according to new research from the University of Sydney and Southern Cross University, with factors such as convenience and ease of access contributing to its popularity.

The study shows that internet gamblers had significantly more positive attitudes towards gambling and that people appear to be gravitating towards online gambling because of its availability and convenience.

Professor Alex Blaszczynski, from the School of Psychology at the University of Sydney, collaborated with lead researcher Dr Sally Gainsbury from Southern Cross University's Centre for Gambling Education and Research (CGER).

Also collaborating on the study, An investigation of internet gambling in Australia, were CGER director Professor Nerilee Hing and the University of Lethbridge's Dr Robert Wood.

"For people with existing gambling problems, internet gambling may create additional risks," Dr Gainsbury said.

"Overall the research showed internet gamblers were not more likely to be problem gamblers, but they do appear to be at higher risk of developing problems."

The findings are part of the largest survey of internet gamblers to date in Australia, with more than 6680 participants taking part in the self-selected, online questionnaire.

Over half of the 450 problem internet gamblers responding to the survey said the use of credit cards or internet bank transfers increased the amount they spent, compared to less than one in 10 of the 2270 non-problem internet gamblers.

"While internet gambling has been around since the 1990s its popularity has soared in the past few years, with clear trends indicating an increasing number of participants starting to gamble online," Dr Alex Blaszczynski said.

Most study participants played on Australian-based sites, where these are available (wagering and lottery), but they showed little concern about the legality of sites and where they are based.

"This is a worrying trend as playing on offshore sites may result in identify theft, fraud, losing funds and cheating, leaving Australians with little recourse," Dr Alex Blaszczynski said.

Internet gambling was perceived to be too addictive by 15 percent of players and poses unique risks, particularly for vulnerable populations: young, single, uneducated and unemployed gamblers.

"Gambling problems take a while to set in before causing severe consequences so as people continue to play online more problems are likely to emerge from this form of gambling," Dr Blaszczynski said.

"The study's researchers are calling for the online gambling space to be made safer for users. Among our recommendations are that players be encouraged to set limits on their spending; pop-up messages suggesting a break in long continuous sessions; and self-tests to determine the risk of developing gambling problems."

A report has been released showing the potential tax revenue, generated income and growth that expanded gaming could bring to the commonwealth. The study, commissioned by the horse racing industry, precedes Gov. Steve Beshear’s proposal for expanded gaming.

Spectrum Gaming Group says eight casinos at horse racing tracks would have an overall economic impact of nearly $1.7 billion the first year, including nearly $1.4 billion in gross gaming revenue. The report touches on potential job growth, saying as many as 11,000 directly related jobs could be created.

It further says casinos would provide a much needed funding source to boost the state’s racing industry. The research firm estimates in 2010 Kentuckians spent over $500 million gambling in other states and says the Commonwealth is losing races and other performance indicators, benefiting states such as Indiana and Pennsylvania that use gaming revenues to support their racing industries.

The report does not include much evidence in the report to support its research leaving a lot of unknowns to be determined if Beshear is able to push expanded gaming legislation through. It also warns that the estimated benefits may vary depending on how expanded gaming laws are written and it assumes additional growth like a London/Corbin casino track would develop.

Beshear expects to introduce a constitutional amendment allowing expanded gambling by the end of the month.

Well, it's a pity that they finally divorced. I hope Katy is all right. I'll support her music forever!

Get ready for the full-scale return of online gambling. Less than a year after three top offshore poker sites were shut down, a ruling by the U.S. Department of Justice appears to open the door for almost any kind of intrastate gaming, except sports betting.

The ruling was issued the Friday before Christmas. It updated the Wire Act of 1961, which bars betting over telecommunication systems that cross state lines or national borders. The Justice Department concluded that the Wire Act's "prohibitions relate solely to sport-related gambling activities in interstate and foreign commerce."

What does it mean? Simply that almost any other kind of betting is legal within state lines, which appears to clear a path for reintroduction of gaming, ranging from state lotteries to online poker.

"Internet gambling is about to explode across the nation, made legal under state laws," said I. Nelson Rose, a senior professor at Whittier Law School and a consultant to state governments and gambling companies. He blogged about the decision Dec. 24 on his website, Gambling and the Law. "Any state that wants to can now authorize Internet gambling," he said.

Though the opinion was triggered by New York and Illinois' request for clarification on the Wire Act as it relates to lottery tickets, the broad ruling applies to other gaming as well. At a time when states are desperately in need of revenue, the ruling appears to clear a legal path to taxing online gaming to add funds to state coffers.

Rose says the ruling will allow gaming beyond state lines. "There is now no reason for states to limit their online gambling to residents of the United States," he said.

But what happens in a state like California?

"The politicians will likely move to legalize Internet poker solely to raise revenue, not to protect the local operators," Rose said. "Giving the exclusive right to Internet games to the state lottery might bring in more money in the long run, but the state is desperate for cash now."

Here's the bottom line: After Black Friday (April 15), when Full Tilt and two other top online poker sites were shuttered by the Department of Justice, the White Friday ruling opens a path toward what many gamblers and regulators want: a fair, open and legal system for playing online.

Hopefully we'll soon be able to look back and say that the days of shady offshore gaming sites are gone. Replacing them will be a system in which players can easily collect winnings from local banks, and states earn tax revenue to support essential programs.

Lawmakers said the expansion of online gambling allowed by a recent U.S. Department of Justice ruling will spread quickly to Maine and urged the establishment of regulations just as quickly to address that inevitability.

Members of the Legislature’s Veterans and Legal Affairs Committee on Wednesday heard from three of its members who attended a recent gambling conference in Las Vegas. All three said online gambling, including online poker and Internet sale of lottery tickets, is poised to explode and Maine needs to be ready.

“This is a very sophisticated business that we need to catch up on; that was a stark reality,” said Sen. Debra Plowman, R-Hampden.

Added Rep. Linda Valentino, D-Saco: “After eight years, there is so much that we don’t know.”

So how can lawmakers take what they heard at this national conference and turn it into policy?

A carryover bill, LD 227, sponsored by Valentino, sought to adopt a comprehensive state policy that regulates the construction and operation of casinos in Maine. Members of the Veterans and Legal Affairs Committee can use that bill as a framework and amend it or rewrite it as needed to cover online gaming.

On Wednesday, members decided to create a small subcommittee to research and determine whether Maine should pass one comprehensive bill on gambling regulations or consider several individual bills.

That subcommittee will report back to the full committee, which will then decide how to proceed.

Asked whether a bill could get passed during this session, Valentino said: “We can’t not do something because we don’t have enough time. It’s our duty.”

Since casino proposals first cropped up in Maine, the Legislature has been mostly reactive in terms of policy. All measures have gone out to a statewide vote, but among about a dozen initiatives in the last decade and a half, only two have passed.

Hollywood Slots in Bangor has been in operation since 2005. A casino in Oxford County was approved in 2010 and is under construction.

During the November 2011 election, voters rejected two proposals that would have drastically expanded gambling in Maine.

Plowman and Valentino both said now might be a good time for the state to be proactive on gambling regulations since there is no casino proposal on the horizon.

Last month, the U.S. Justice Department reversed its interpretation of the 1961 Wire Act that banned online gambling and said state lotteries are not prohibited from offering online wagering within their state.

Plowman said the Justice Department’s decision still allows states to impose their own regulations but in the absence of any regulations, things could move quickly.

Rep. Doug Damon, R-Bangor, said the popularity of online poker has grown exponentially.

“If we don’t have some oversight, it’s our citizens who are participating. Do they need some protection? Possibly so,” he said.

Both Hollywood Slots and the Oxford County casino could be affected by an increase in legal online gambling.

“This will need to be addressed by the committee. It’s going to be a race for states to see how they deal with this,” Valentino said.

Will the Internet as we know it survive the next decade? That serious question is being asked by millions of internet users who regard it as a system that shouldn’t be messed with. Huge entertainment firms in the USA both for music and film have brought the anti piracy act before Congress hoping to change the laws regarding copyright in that country.

Online gambling depends on the internet of course and this slippery slope to censorship is being created by the new laws for the web. Large and powerful companies are taking sides on this issue. Google has let it be known they are not in favour of the anti piracy laws preferring to see the internet and access to knowledge left free. To bring attention o the potentially damaging bills in Congress the well used and respected Wikipedia has blacked out its 3.8million English-language pages in protest against the SOPA and PIPA bills.
Wikipedia posted this on its web site, “Imagine a World Without Free Knowledge” The message continues: “For over a decade, we have spent millions of hours building the largest encyclopedia in human history. Right now, the U.S. Congress is considering legislation that could fatally damage the free and open Internet. For 24 hours, to raise awareness, we are blacking out Wikipedia.”

Everyone is encouraged to sign the online petition to protest the SOPA and PIPA actions. Google’s Senior Vice President of Corporate Development and Chief Legal Officer, David Drummond, said in a blog post: “These bills would grant new powers to law enforcement to filter the Internet and block access to tools to get around those filters. These bills would make it easier to sue law-abiding U.S. companies. Law-abiding payment processors and Internet advertising services can be subject to these private rights of action.” Adding, “These bills wouldn’t get rid of pirate sites. Pirate sites would just change their addresses in order to continue their criminal activities.”

The hearings conducted by the United Kingdom Parliamentary Select Committee for Culture, Media and Sport are continuing. The objective is to give direction to online gambling regulation in the country. The latest to depose before the committee were the regulators from Alderney and Gibraltar. They are very much interested parties because they are on the United Kingdom white list. Their licensees can operate and advertise in Britain but do not pay taxes there. If the United Kingdom decides to go for secondary licensing then these online gambling operators would be affected. During the hearing the spokesmen for these two regulators expressed differing opinions.

Andre Wilsenach from the Alderney Gaming Control Authority suggested the need to tighten the regulations. This was understandable because last year its licensee Full Tilt Poker had been indicted for violations of license conditions. He advocated carefully assessing the risk profiles of the licensee operators. Based on where operators do business, under which licensing jurisdiction, what their financial processing arrangements are and other factors, the operators could be assigned a risk rating. Online gambling operators with higher risk profiles should be subject closer oversight, including independent audits on a quarterly basis, at the operator's expense. Such a system could benefit the UK Gambling Commission in its regulation of online gambling.

Philip Brear of the Gibraltar Gambling Commission focused on the relationship between his organization and the United Kingdom regulator. He suggested that it had not been as productive as he would have wished it to be. Brear indicated that the UK Gambling Commission had considerably less online gambling regulatory experience than Gibraltar. He even pointed that the UK body's main adviser operated from Australia. Brear also deposed that the present regulatory provisions of the 2005 Gambling Act were sufficient to protect the interests of British online gamblers, and therefore could remain largely unchanged.

Meanwhile, the latest gambling prevalence statistics have been released by the UK Gambling Commission and they do not bode well for online gambling operations within the country. The Commission observes that most British players gamble at overseas regulated websites. It was estimated that the total UK online gambling market was £1.9 billion for 2010, of about one third went to British regulated online gambling sites. Online gambling on bingo and casino games has declined by 19% over the last two years, due to the relocation of significant UK brands with offshore regulators. The report said, "We expect the GGY from Commission licensed operators to decline in the future as the effect of Betfair moving offshore is seen in regulatory return data. Further relocations of operators overseas cannot be ruled out."

TRACY BOWDEN, PRESENTER: Independent MP Andrew Wilkie says he's still determined to achieve poker machine reform, with the introduction of mandatory pre-commitment schemes to pubs and clubs by 2014.

But it seems there may now need to be some compromise to ensure that the deal struck with the Prime Minister goes ahead.

Mr Wilkie has not been prepared to reveal details of the latest discussions but an announcement is expected in the coming days.

Earlier I spoke to independent Senator Nick Xenophon, a long time anti-gambling campaigner and supporter of Andrew Wilkie.

Nick Xenophon, the Prime Minister, Julia Gillard signed an agreement with Andrew Wilkie 18 months ago. You've been speaking to Andrew Wilkie this afternoon, is that deal now off?

NICK XENOPHON, INDEPENDENT SENATOR: Well from Andrew Wilkie's point of view it isn't off. The deal is a deal that he entered into with the Prime Minister. It was a deal that got the Prime Minister into the Lodge.

Andrew Wilkie was the first of the crossbenchers to sign up with the Prime Minister. It was his support that was crucial to get her across the line and as far as Andrew Wilkie is concerned, a deal is a deal and it's a deal in the public interest to tackle problem gambling.

TRACY BOWDEN: But there's been talk of compromise, what's Andrew Wilkie thinking on that front?

NICK XENOPHON: Well I think Andrew Wilkie's been upfront. If the compromise would involve some delay in the implementation in accordance with the Productivity Commission's original recommendation to have mandatory pre-commitment in place by 2016, then I would think, I would advise Andrew that would be a reasonable thing to do, rather than 2014 which was always ambitious.

But if the compromise involves watering it down, going down the path of voluntary pre-commitment which is, in effect, something that wouldn't work at all, which we know from the research doesn't work, from the trials that have been undertaken, then that would be a complete sell-out and I can't imagine that Andrew Wilkie would go down that path.

TRACY BOWDEN: What has led to this possible change in policy? Because everyone was very firm on what they wanted when it all started.

NICK XENOPHON: Look, well I think there are two things. Firstly, the Government is obviously concerned about the campaign by Clubs New South Wales which has been an effective campaign but I think it also reflects on the Government's inability to sell, I think, a very fundamental reform, given the damage that poker machines cause in the community.

And the second thing is clearly the Peter Slipper deal has given the Government more of a margin and less need to rely on Andrew Wilkie but I think that itself could backfire given I think a huge blow to the Government's credibility if they back away from poker machine reform.

TRACY BOWDEN: So there was a time when Julia Gillard wanted to keep Andrew Wilkie happy but that's no longer so important?

NICK XENOPHON: Well apparently not. Look, I heard rumours of Peter Slipper's ascendency to the Speakership a few weeks before it happened. I dismissed them. I didn't think it would happen and I was obviously too naive at the time but clearly the Government thinks they've got themselves a bit of a margin but sometimes craven manoeuvring such as that can backfire and I think people can see through that.

TRACY BOWDEN: How do you think it will look for the Prime Minister if she reneges on this deal?

NICK XENOPHON: Well I think it will be a massive blow to her credibility and I don't think she could recover from that and I'd like to think that the Prime Minister will honour this deal to bring about real meaningful poker machine reform.

This is a big issue. This is an issue that affects literally hundreds of thousands of Australians who are hurt each year by poker machine addiction.

Don't take my word for it. The Productivity Commission made it clear in its report 18 months ago; nearly 100,000 Australians losing an average of $21,000 each on poker machines who are deeply addicted. Another 250,000 plus Australians who are already showing the signs of developing a full blown addiction. Almost $5 billion a year, 40 per cent of pokies' losses, lost by problem gamblers.

I mean this is a big problem that we need to tackle.

TRACY BOWDEN: Andrew Wilkie was initially talking very tough on this issue, now he's talking compromise. Do you think if he feels very strongly he should stick to his guns?

NICK XENOPHON: Look, I think Andrew will stick to his guns in terms of the basic principles. The essential principle is to tackle problem gambling in a way that is meaningful, that is effective and let's put this in perspective, his first position was, and I was in the room with him when he used my office as a base when he was negotiating with the Prime Minister back in August 2010, was to have $1 bets.

That was a simpler, cleaner solution, lower cost to implement than what we've ended up with, mandatory pre-commitment.

The Government wouldn't come at that so his compromise was mandatory pre-commitment. He's already compromised. If the Government is serious about dealing with poker machine reform, if they think mandatory pre-commitment is too difficult to explain, too messy to implement, then they should go down the path of having $1 bets which would be a much better solution and one that the Productivity Commission has recommended as an immediate, virtually policy change in terms of bringing about a fundamental reform.

TRACY BOWDEN: So was the mandatory pre-commitment idea a mistake to begin with? Was it just too complex, too difficult to explain? Should you have stuck with the $1 maximum bet idea?

NICK XENOPHON: Well hindsight's a wonderful thing. I think Andrew Wilkie at all times has acted in good faith and with a principled position. Mandatory pre-commitment could work, it could still work. It is something that the Productivity Commission has outlined

Andrew Wilkie and Nick Xenophon needn’t worry: the pokie barns will soon be deserted because the customers will be at home gambling on their computers or online TVs or iPads or smartphones.

Gambling is one of the industries being disrupted and/or ruined by the internet, joining a long list: photographs, encyclopedias, books, newspapers, film, music, retailing, postage etc.

So, unfortunately, by the time squirming politicians get around to doing something about problem gambling in 2016, the problem will have been solved for them. Those whom Messrs Wilkie and Xenophon, ably supported by the Productivity Commission, are trying to protect will have quietly gone home to hand over their money to foreign bookies and thieves in private.

The Productivity Commission’s detailed report into Australia’s gambling industries in June 2010 was a shocking indictment of a nasty, predatory industry and, by implication, the lazy politicians and bureaucrats who use it to tax the poor and vulnerable.

It said gamblers lost an average of $1500 each in 2008-09 (it’s no doubt a fair bit more now), that 600,000 people play the pokies at least weekly and that 15 per cent of them lose 40 per cent of the money because they’re addicted to it. In a passionate departure from its usual focus on business and market efficiency, the PC recommended some sort of pre-commitment regime as well as an upper limit of $1 per bet to help the addicts control their problem.

As a direct result of that, the independent Member for Denison, Andrew Wilkie, went into the negotiations in August of 2010 following the election of a hung parliament demanding implementation of both the PC’s recommendations in return for his vote in parliament. The eventual Prime Minister, Julia Gillard, agreed to do pre-commitment but not $1 bets.

Now, following ferocious lobbying from those who harvest the gamblers’ losses – including state governments – she is squirming. Pre-commitment will now be studied, not just introduced. Wilkie hasn’t got what he asked for, but is the delay sufficient for him to bring down a government? Probably not, so he’s in a difficult spot. Xenophon, meanwhile, has switched to demanding $1 bet limits, but he’s in the Senate and doesn’t have a casting vote.

Meanwhile, Southern Cross University’s Dr Sally Gainsbury yesterday produced research showing that the use of internet gambling has accelerated in the past two years – that is, since the Productivity Commission collected data for its 2010 study.

Gainsbury and a group of other researchers surveyed 6680 people, of which 2270 – a third - were internet gamblers. Of them, 450, or 20 per cent, called themselves ‘problem gamblers’. Their losses averaged $825 a month.

Nick Xenophon, among others, is now calling for the government to “do something” about online gambling, but what? Online poker and casino games could be banned in Australia, but players have access to any number of sites based overseas.

In any case, online wagering is allowed and as a result, sport betting in general is exploding and disrupting the traditional offline operators and totes.

This morning Wikipedia is still blacked out in protest against the ‘Stop Online Piracy Act’ and the ‘Protect Intellectual Property Act’ (known as SOPA and PIPA), which the editors of Wikipedia say represent an unacceptable intrusion into the freedom of the internet.

That legislation is an attempt by a group of 42 US legislators to prevent some of the internet’s disruptive powers. President Obama has never supported it, and yesterday, in the face of Wikipedia’s blackout, three of the bills’ sponsors made their excuses and backed out.

China’s Communist Party does pretty well at controlling the internet. When I was there last year, I could not get access to YouTube, Twitter or Facebook as soon as I crossed the border. There were ways around the blocks through virtual private networks, and social media sites are popping up within China, but the Commies are showing you can control it.

But I’d say it won’t be controlled in the west, and that the internet walls will eventually come down in China, thus adding the Chinese Communist Party to the list of industries being disrupted by the internet.

That means online gambling won’t be controlled, and the clubs, companies, politicians and other vultures that harvest the cash of those who currently have to show up at venues to lose money, will lose their prey – not to Andrew Wilkie and Nick Xenophon, but to rather more shady characters in Nigeria and Russia.

Gov. Dannel P. Malloy says he expects this year's upcoming legislative session will deal with online gambling in Connecticut, saying this state needs to protect its gaming industry interests against similar efforts in surrounding states.

Malloy, speaking during an editorial board meeting today at The Day, said that New Jersey has already passed legislation dealing with online gambling in the Garden State and said New York state also is exploring increased gambling within its borders. Massachusetts has approved legislation allowing casinos there.

Malloy said he's been involved in talks with this state's two Indian-owned casinos, the Mohegan Sun and Foxwoods Resort Casino, describing them as "pretty broad based" discussions at this point. He said that Lt. Gov. Nancy Wyman will continue with those discussions on gaming-related issues, including online gambling.

"We certainly want to play offensively" as well as defensively on gaming issues, Malloy said. He said he wants to ensure that Connecticut continues its role as "a premier casino destination" in New England and beyond, even with the increased competition.

Zynga continues to dominate the social gaming space and has made significant inroads in mobile gaming, but its stock performance has failed to impress as it continues to trade below its IPO price.

However, a recently ruling by the Justice Department which enables states to allow online gambling could present a significant opportunity to Zynga to generate billions of dollars in revenue from casino games through online gambling.

The online gambling market could be worth more than $40 billion by 2014, with online poker and casino games accounting for a major portion of the total market. [1] Zynga competes with Electronic Arts, Playdom which was recently acquired by Disney and other independent social gaming studios. Zynga’s crown jewel to become even more valuable

Zynga already operates Texas HoldEm Poker, which is its most valuable game. It currently has close to 30 million monthly active users, and is by far the most popular casual gambling game online. If Zynga enables users to play its casino themed games like Poker with real money, it could lead to a significant increase in the average revenue generated per user, and account for a major portion of Zynga’s total revenues. Last week, International Game Technology, a slot machine company acquired a Facebook game developer – Double Down Interactive – for $500 million. [2] Double Down had just 4.7 million monthly active users, much fewer than Zynga’s Texas HoldEm Poker.



Zynga hasn’t made any related announcements yet, but expect a significant boost in its stock price, if it announces that it plans to enter the online gambling space.

Texas HoldEm Poker currently accounts for nearly 30% of Zynga’s $10 Trefis price estimate, which stands nearly 15% above its market price.

INTERNET gambling is on the rise, with convenience and accessibility contributing to its popularity, research has found.

The findings follow the largest survey of internet gamblers to date in Australia with more than 6680 people participating in the self-selected, online questionnaire.

Dr Sally Gainsbury, from Southern Cross University’s Centre for Gambling Education and Research, said internet gamblers had

significantly more positive attitudes towards gambling.

“People appear to be gravitating towards online gambling because of the availability and the convenience,” she said.

“It can be accessed anytime, anywhere.

“But for people with existing gambling problems, internet gambling may create additional risks.”

Dr Gainsbury said overall the research showed internet gamblers were not more likely to be problem gamblers but they did appear to be at higher risk of developing problems.

She said internet gambling posed particular risks to players; it was constantly available and people could play online in private with relative anonymity.

More than half of the 450 problem internet gamblers responding to the survey said the use of credit cards or internet bank transfers increased the amount they spent compared to less than one in 10 of the 2270 non-problem internet gamblers.

Southern Cross University and the University of Sydney conducted the research.

Anita Hartley at Mission Australia’s North Coast Gambling Counselling Service is not surprised by the research findings.

“Our service is seeing a steady increase of people with online gambling issues and it is a real concern,” she said.

Ms Hartley said she had seen first-hand that it did appear to target the vulnerable.

She said we needed a strong approach to work out sensible safeguards for people, including good government regulation.

“We would encourage the Australian government to take a leading role in influencing the design of global consumer protection standards while online gaming is still in its infancy,” Ms Hartley said.

Internet gambling’s popularity has soared in the past few years with trends indicating an increasing number of people starting to gamble online.

More than half of the survey participants started gambling online from around 2006.

Mission Australia recognises while Australia has a ban on online gaming, Australians can gamble using offshore websites.

“While we do not wish to see a proliferation of online gaming in Australia, we also recognise that a well regulated Australian industry could help to reduce the impact of unscrupulous overseas providers,” Ms Hartley said.

It has been a troubled week for online gambling operators on both sides of Atlantic. In the UK the hearings led by the United Kingdom Select Committee for Culture, Media and Sport heard a variety of opinions from regulators who operate in Alderney and Gibraltar. While in the US a number of industry analysts have expressed concern that the new statement from the Department of Justice over intrastate gambling is too simplistic and that there are many more hurdles to be overcome. In the UK Andre Wilsenach from the Alderney Gaming Control Authority said that he believes there is a need to tighten online gambling regulations. He believes that a careful assessment of the licensee operators needs to take place and for operators to be assigned a risk rating based upon factors such as where they do business, under which jurisdiction and their financial processing arrangements.
However, Philip Brear from the Gibraltar Gambling Commission had a very different view. He believes that the current 2005 Gambling Act contains sufficient provisions to protect the interests of British online gamblers and should remain mainly unchanged.

In the US, the DoJ’s statement that intrastate online gambling could be legal was initially greeted with enthusiasm, however, now many experts are pointing out flaws. Andrew Zarnett, the gaming analyst at Deutsche Bank, believes that all the DoJ has done is moved the debate on online gambling from “whether” to “when”. It is not clear what forms of gambling will be legalised or when this will take place.
In Las Vegas, the gaming attorney Jennifer Carleton said that whilst the DoJ announcement is a huge step forward there is still a need to be alert, attentive and proactive. She is worried that future rulings from the DoJ could reverse the latest announcement.

Only time will tell, but at present California, Nevada, Illinois, Iowa, New Jersey and Washington D.C. are all hoping to have some form of online gambling operating in the near future.