Issue N5, 2008

January 31, 2008

Odds Defying Progressive Jackpot Win for US Grandfather

For all those players who never try the progressive jackpot machines because of what they consider the nearly impossible chances of winning the Big Prize, here’s an inspiring tale: A 92 year old grandfather made history after hitting the jackpot on the Megabucks slot machine for the second time! The lucky player defied odds of 1 in 10 million (!) when he grabbed a whopping $21-million at the Cannery Casino and Hotel in Las Vegas on the International Game Technology Machine last week.

In 1989, Elmer Sherwin, a Vegas resident, won $4.6-million while playing the same type of slot machine at the Mirage in his hometown. IGT’s Megabucks has a jackpot that rises steadily from its minimum $7-million reset value every time players try their luck in the network of games. To hit the top prize, players need to play the maximum amount of $3. “I'm glad I finally hit as I've been trying to do it again,” said Sherwin, after his previously unheard of hit. Sherwin also announced that he was now ready to face beating another record by trying to hit the jackpot for a third time.

European Commission to Challenge German Anti-Gambling Law

The new German legislation governing online gambling in the country is barely a month old and it is already being challenged by the European Commission. Reuters news agency reported this week that the Commission is seeking to step up on legal action against Germany on the basis that its laws, which block foreign competition within the country’s borders, go against free trade agreements in the Europe.

On January 1, 2008, Germany’s new laws kicked in after they were voted in by all sixteen states, essentially protecting state run monopolies from foreign competition and putting massive restrictions on gambling advertising campaigns. It is expected that a formal letter of protest will be issued to German authorities in the coming weeks.

This is not the first time that a European country has been warned about its gambling policies. The European Commission, at the suggestion of its Internal Market Commissioner, Charlie McCreevy, has launched proceedings against at least ten other nations. Germany has also been experiencing strong opposition to the new law by gambling companies who already run successful businesses within the country and these companies have vowed to take the legislation to court. If Germany decides to ignore the warning letters sent by the European Commission, the issue could be taken to the European Court of Justice for intervention.

Finnish Government Calls for State Run Poker Site

Finland is another country in Europe that is trying to sort out the issues surrounding online gambling legislation. Last week, the country’s Minister for Culture and Sport, Stefan Willin suggested that the state-run slot machine association, RAY (Raha-Automaattiyhdistys) or the lottery and betting monopoly take on the responsibility of creating an official Finnish online poker site. Willin’s idea is that all the revenue from the site would go towards state projects and help in combating compulsive gambling habits.

The idea, however, has been met by strong opposition by others in the government, including Kari Paaso, the Minister of Social Affairs and Health. Paaso countered that an online poker site would make it even harder to help addicts over their problems, even if the point of creating such a venture was to draw Finns away from foreign poker casinos.

RAY, the organization with exclusive rights to run slot machines in Finland, has noted that it has the technical capabilities to create such a poker site if it is requested to do so by the Finnish government.

DGS Members Bolt for Other Networks

Members of the troubled poker network, Dynamic Gaming Systems (DGS), are reportedly looking for other networks to join, after experiencing serious communication problem with the Costa-Rican based DGS. A number of industry reports have shown that DGS has ceased all payouts, resulting in online poker sites such as G2Gpoker joining networks such as Merge and Gold Chip (run by Dobrosoft). Some poker rooms have even had to pay winners out of their own pockets after DGS failed to communicate with these sites and settle claims.

It was reported last week that DGS was negotiating with the British Virgin Island-based Cintaly Holding Corporation to enter into a take-over agreement. DGS released an announcement in which it said that Cintaly was ‘excited’’ to be taking over ‘one of the finest software networks online today’. However, there was no mention of the critical issues facing DGS and its commitments to its present member sites, besides stating that: “It is our understanding Cintaly Holding Corporation intends to honor all verified existing player balances and licensee agreements”. The announcement also said that DGS would be back in operation within 72 hours.

Casino News, January 2008