Issue N23, 2008

June 5, 2008

No Settlement in Sight in Ongoing WTO Antigua Case

Despite a June 6th deadline set by the World Trade Organization for the United States and Antigua to reach an agreement regarding the settlement money due to be paid out to the Caribbean island state, Antiguan officials are pessimistic of any breakthrough happening in the near future. While negotiations have not exploded just yet, analysts are privately saying that they are not sure just how long Antigua will have the patience to continue sitting across from the table with the United Statets.

"I don't think there is any chance of an agreement by Friday," said Mark Mendel, Antigua’s acting legal counselor. "But the government may decide to continue its negotiating efforts in hopes that some progress is forthcoming.” Mendel also added tactfully that Antigua "is trying hard to get the U.S. to understand that finding common ground makes sense."

Errol Cort, the Antiguan Finance Minister said about the situation: "I am very encouraged that there are at least components of a possible settlement agreement. Having said that though, we have not yet reached a position where I can say that the issue has been settled."

The United States was ordered to pay Antigua the equivalent of $21 million by a World Trade Organization arbitration panel, which ruled that the US was not honoring regional trade pacts by banning Antiguan-based online gambling companies from operating within the country’s borders. Several deadlines have come and gone since last year’s ruling.

eCOGRA Earns Isle of Man Approval

The eCommerce and Online Gaming Regulation and Assurance (eCOGRA) has been awarded approval as an accredited testing facility by the strict Isle of Man Gambling Supervision Commission. The eCOGRA team spent nearly a year presenting its credentials to the commission, explaining how its testing methodology worked and how its tough industry standards were set.

eCOGRA CEO Andrew Beveridge said: “We are delighted that a regulator of the caliber of the Isle of Man Gambling Supervision Commission has accepted our credentials, audit experience and professional qualifications after intensive study. Our testing principles and methodologies have now been recognized by several international jurisdictions concerned with protecting players through the professional and continuous testing of online casino and poker room operators."  

"Over 130 tier one online casinos and poker rooms currently use our test and audit services, and we number 25 leading operator companies and 16 quality software providers among our clientele. In addition, we have the added scrutiny of the leading audit firm KPMG through its annual quality assurance reviews, thus providing an unrivalled verification program."

Poker Forum Exposes Another Online Site Cheating Scheme

Gamblers on a poker forum have revealed yet another cheating scheme that occurred over a period of at least 22 months, scamming players out of millions of dollars. The poker site involved, Ultimate Bet, has confirmed that a super-user cheating scandal had been uncovered on the site, but hurried to add that the events occurred before the present owners, Tokwiro Enterprises, bought over the company from Excapsa. Tokwiro Enterprises also owns the other Kahnawake-licensed poker site, Absolute Poker, which was involved in an industry-rocking scandal at the beginning of the year. It is also interesting to note that Tokwiro is owned by Chief Joe Norton, former Grand Chief of the independent Kahnawake territory.

Meanwhile, the poker industry is up in arms over the fact that the Kahnawake Gaming Commission is not taking the necessary steps to name the 18 users who used an unauthorized software code to obtain hole card information during live games, thereby cheating players out of millions; nor is it showing any signs of punishing the offenders other than a metaphorical slap on the hand. One account holder, NioNio, for example, managed to grab $600,000 in the space of four months. Tokwiro said it was cooperating with the Kahnawake Gaming Commission to "conduct a thorough investigation that included a comprehensive review of hand histories and game data, thorough analyses of software and network security, and audits of its security practices and procedures."

New Bingo Network on the Cards

With the growth of the online bingo industry in Europe and the United Kingdom, it comes as no surprise that two of the biggest software companies in the gambling industry, Parlay Entertainment and Chartwell Technology are pairing up to bring bingo fans a new bingo network, BingoNexus. The new site will combine back and front end products from both firms, as well as a series of bingo, slot and side games for players to enjoy. The network will be licensed in Malta and will be launched as early as this summer.

Scott White, President and Chief Executive Officer of Parlay Entertainment, said: "This is a huge win for licensees and bingo players alike. By combining the strengths of Parlay's industry-leading bingo games with Chartwell's advanced administration system and network operations expertise, we're creating a very compelling bingo network solution. Player excitement will grow exponentially as bingo sites pool their liquidity to create bigger games, huge jackpots and lively communities."