Issue N10, 2007
March 15, 2007
US Citizens Find a Way To Bet on the Upcoming NCAA Basketball Tournament
In previous years, it was quite possible for Americans to spend their time and money betting on the results on the exciting NCAA tournament. When President George Bush signed the Unlawful Internet Gambling Enforcement Act last year, lawmakers were of the opinion that citizens would not be able to go online and take part in sportsbetting activities. After all, they reckoned, all financial institutions, credit card companies and banks were banned by law to transfer funds to offshore gambling sites.
However, this week proved that the average U.S. citizen is not going to sit back and have the law dictate they can have their fun. Industry experts revealed that Americans have found ways to circumvent the UIGEA law by paying for their internet gambling fun through other means. E-wallets, such as Nu-Charge, Ecocard and Make a Deposit do not use US currency and instead focus on Euros, Canadian dollars and British Pounds. These have become popular payment methods for Americans gambling online. The UIGEA does not target individual gamblers and does not prohibit them to gamble offshore – it simply makes it nearly impossible for them to pay for their fun. Nearly impossible, but not altogether impossible, it seems!
Channel Islands Internet Gambling Regulator May not Attend GIGSE
The annual Global Interactive Gaming Summit and Expo (GIGSE), due to take place in Montreal in June, has traditionally been the meeting place of the Who’s Who in the internet gambling world. Online casino operators, affiliates, software providers and watchdog groups get together to discuss the future of the industry and check out what is new. This year’s Expo may be dampened by the fact that a leading industry regulator, Alderney, may not participate officially – leading to speculation that other similar groups will follow suit.
It seems that the Channel Island online gambling regulator is concerned with the new UIGEA law passed by United States authorities, which may have led to their decision to reconsider their participation at GIGSE in June. “We have not yet confirmed our level of participation at GIGSE for this year, it has always been a great event but with the recent issues in the US we are not that certain how popular it will be at this time,” an Alderney spokesman commented this week. He went on to say that the group would be focusing on its participation in events the invested in the European and other foreign markets, such as the EIG in Barcelona in summer, 2007.
Online Gambling Sites can Advertise from September in the United Kingdom
English authorities announced this week that from September, 2007, internet gambling sites, betting shops, casinos and bookmakers would be allowed to advertise their companies in the local media under strict regulations. The ban was lifted as part of the country’s gradual movement to a more controlled, yet open gambling market. The Advertising Standards Authority will monitor the ads very strictly to ensure that they do not break any of the strict rules that have been set up by the Gambling Commission.
Advertisements are not allowed to target children or young people. In fact, actors in ads should not appear to be younger than 25 years of age and radio ads cannot run where the target market is specifically the younger set. In addition, the advertisements should not encourage irresponsible gambling in any way that may lead to social or financial problems for the target audience. Implicit sexual messages, linking gambling to financial success and depression quick-fixes are also a big no-no. The National Lottery has been the only gambling activity that has been allowed to advertise freely in the local media up until now.
Online Casino Company, 32Red Reports on Annual Losses
It has been a difficult year for the distinctly English online casino company, 32Red. The company announced this week that its annual losses were 3.75-million Pounds. The company’s CEO, Ed Ware (former MD of Ladbrokes International) said that there were several reasons for this loss. He blamed the high number of winning favorites in the United Kingdom horseracing sector and unpredictable football results in the Champions League.
Another reason for this loss in finances was the fact that 32Red purchased BetDirect in June of last year for 12.5-million Pounds. As a result, administrative costs went up by 265%, countered by a very weak 12% growth in traditional gaming activities such as poker. Ed Ware noted that the past financial year’s results indicated that the company was in a transitional stage and reiterated that the future would look much brighter once 32Red ironed out these issues. The company has already moved its headquarters to Gibraltar in a bid to save on expenses and it will be investing future capital in rebranding its name.