Issue N19, 2007
May 17, 2007
U.S. Department of Justice Announces New Online Gambling Indictment
The Department of Justice in the United States announced earlier this week that it would be indicting seven individuals and four companies over charges relating to online gambling. One of the companies mentioned is the very popular sportsbetting company, BetUS. The DOJ charged that the parties with processing credit cards and Western Union transfers between bettors and sportsbetting sites. It is alleged that the individuals and companies knowingly disguised the nature of these transactions, making it look like they were not gambling related.
It was cited in the DOJ indictment that the charged parties used a clearinghouse in the Philippines for Western Union transfers and were able – in this way – to hide the true nature of their businesses. The charges brought against the individuals and companies range from bank fraud, money laundering, RICO conspiracy and violation of the wire-wager act. Maximum penalties could lead to those found guilty sitting for decades in prison for their crimes.
Another popular gambling company, BetonSports was also mentioned in the indictment but was not formally charged. This is because the company was charged last year already and managed to reach a settlement with the Department of Justice without its staff being prosecuted.
PPA Chairman Praises Barney Frank’s UIGEA Repeal Attempts
The chairman of the Poker Player’s Alliance, Mr. Alfonse D’Amato praised Congressman Barney Frank’s attempts to pass a law aimed at repealing the Unlawful Internet Gambling Enforcement Act. In a newspaper article written by D’Amato for the Boston Herald at the weekend, the former Senator said the Barney’s attempts to legalize internet gambling were ‘heroic’.
D’Amato also blasted the United States’ legislation system for passing the UIGEA and equated this law with prohibition. In his article, D’Amato was relentless with his criticism of the new law: “Today, the prohibition on Internet gambling promises to funnel players underground, diminishing society's ability to deal with serious challenges such as underage and problem gambling, and, more importantly, interferes with the right to individual liberty and privacy," he wrote.
D’Amato stated that there was clear evidence in the rest of the world that regulation of the gambling industry was possible and that the technology to do so existed today. He also said that the United States should not overlook the revenue that it was losing out because of its stubborn refusal to consider regulation. He estimated that internet gambling could bring in $4-billion annually in revenue to state coffers. Alfonse D’Amato ended his article with these words: “Only meaningful regulation of online poker, like the Frank plan, will produce positive outcomes for the players, children, the economy, the taxpayer, and society in general.”
Despite Official Clampdown, Korean Internet Gambling is on the Rise
The Korean Internet Safety Commission told media reporters this week that the number of internet gambling sites that targeted Korean speakers had risen dramatically in the past few months. In 2004, local internet service providers were requested by the Commission to block access to 96 foreign-based online casinos. In comparison, the Commission demanded that these ISP’s block access to 550 online casinos in March of this year alone!
Despite the ban on internet gambling, especially in light of a recent gambling scandal that rocked the country and claimed many innocent victims, the industry is growing at neck breaking speed. The government is following a policy of intense crackdown on all internet gambling sites that provide services to Koreans. However, many companies have managed to avoid the arm of the local law and transferred their services to foreign shores such as Canada. It remains to be seen whether Korean officials are able to continue to carry out the ban, due to the enormous volume of traffic on internet servers and the demand by Korean players to access online casino sites.
Popular E-mail Magazine to Sponsor CEO Poker Tour
This year’s CEO Poker Tour is to be sponsored by the popular e-zine, High Limit Magazine. The event, due to take place from Atlantic City, New Jersey to Las Vegas, Nevada, is a high profile poker tour that attracts hundreds of players each year. High Limit Magazine spokesman, John Fried, said: "Sponsorship of the executive poker series is a natural for us. Our players enjoy poker, and are always searching for networking events, put the two together and you have a winner."
High Limit sends its magazine free of charge to over 100,000 casino players each month and is considered one of the most popular e-zines around. The magazine provides players with the latest in industry news, new promotions and other interesting features. The easy-to-use magazine uses a simple, yet high-resolution flash link to open up – thus bringing the information to the readers’ fingertips in one literal click. The magazine is also a powerful advertising tool, allowing advertisers to follow how many times their ads were viewed by readers and how many people visited their websites, following advertising in High Limit.