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Vote To Study Online Poker Industry Postponed

August 1, 2008

Yesterday was the last day of the 2008 Congressional session, before adjourning for an August recess. There were several matters on their plates, namely Karl Rove, plus 12 bills due for markup. Among those bills was the Internet Gambling Study Act, officiously known as HR 2140, proposed to study the online poker and gambling industry.

Congresswoman Shelley Berkley of Nevada proposed the Internet Gambling Study Act last year, and it has just now made its way to the markup phase in Congress. Unfortunately, the House Judiciary Committee spent the entire day discussing the Karl Rove situation, and whether he should be held in contempt. The remaining bills were set aside until the committee reconvenes in September 2008, leaving the online poker community hanging in stalemate.

“We knew the bill was scheduled to come up, but probably wouldn’t be voted on,” stated John Pappas, Executive Director of the Poker Players Alliance (PPA). “It was a combination of other priorities of the House Judiciary Committee and that they weren’t 100% confident of the vote count.”

HR 2140 requests a 1-year study of the online poker and gambling industry and the practicalities of regulating the industry in the US. The study is also intended to examine the effects of the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006. First proposed in May 2007, Berkley’s bill has received the most co-sponsorship of any online gambling related bill thus far, with 73 signatures.

While the PPA is in support of HR 2140, it is not a main priority for them. I link to information regarding the bill can be found on the web site, as the PPA feels that a study of the online poker industry is a step in the right direction. However, Pappas believes enough studies have been executed, providing sufficient data to move forward with the regulation process, further proven by the fact that “developed countries have already begun to regulate internet gambling.”

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    Written by Donna Norman · Filed Under Online Gambling News, Poker News, UIGEA, iMega, Gambling Ban, United States Gambling Law 

    Poker Player Tossed Out Of Borgata For Offensive Body Odor

    July 31, 2008

    As a reporter and analyst of online gambling, I’ve spent several years now studying the online poker industry. I could write paragraph after paragraph of the differences between online poker and land-based poker rooms, and the advantages presented by each. But today’s story out of Atlantic City beats all reasoning I’ve ever managed to come up with, as long-time poker player Michael Wax was thrown out of the Borgata Casino for offensive body odor.

    Pokerstars Banner He must have been on a roll that day, having played 17 hours straight at the poker room before 440-pound Michael Wax was approached by a casino manager when he entered the restroom. Wax was told that his body odor had become offensive to his fellow table-mates and several complaints had been received.

    Dismissing the message, Wax attempted to return to his table, only to be notified again by casino managers of the situation, this time accompanied by a request to stop playing and leave the premises. Michael asked the manager if the casino would grant him a free hotel room, just long enough to freshen up. The casino refused, forcing Wax to leave immediately.

    At 54 years of age, Wax claims to be a frequent poker player at the Borgata. The incident resulted in his immediate filing of a complaint against the casino with the Casino Control Commission for embarrassing him in front of the other poker players. The complaint is currently under review to decide whether any gambling laws or relative regulations had been broken.

    Though he admits there definitely was an issue of personal body odor, Michael would at least like an apology from the casino for his public embarrassment. In the casino’s defense, there was an attempt made to inform Mr. Wax of the situation in a private manner (within the restroom). In the same token, Wax was not forced to leave until returning to his table, thereby creating an awkward situation for everyone.

    Again, as an analyst of the gambling industry for many years now, I understand exactly how comps and benefits work at both land-based and online casinos. A frequent player, such as Wax claims to be, especially one who had spent the last 17 hours creating profits for the casino, should certainly have been offered the chance to wash-up and continue his poker game at no charge – at least in my opinion. If such a customer is not valuable enough to the casino to supply a little hot water and complimentary soap, perhaps Michael Wax would be better off playing elsewhere anyway.

    Which brings me to my last obvious point: online poker rooms have a lot of advantages, and the ability to avoid complaints – both to and from a player - of offensive body odor is the newest addition to a long and continuously expanding list.

      Written by Donna Norman · Filed Under Casino News, Online Gambling News, Poker News 

      Professor Recommends Online Poker Be Legalized

      July 31, 2008

      After an extensive study, Professor June Cotte of the University of Ontario is recommending legalization of online poker. The results of the study revealed several key issues that Cotte believes could be stamped out through regulation of the online gambling industry in the US.

      Working alongside fellow Professor Kathryn Latour of University of Nevada, the two spent a great deal of time studying the online poker industry and its effects on online gamblers. Throughout the study, 20 regular casino gamblers and 10 online gamblers were interviewed at length.

      The staggering $12-$15 billion brought in by the online gambling industry came as a surprise to Cotte, knowing the risk US players undergo to gamble over the Internet in an unregulated market. “The horse is out of the barn,” Cotte expressed in a Times magazine interview. “There are a huge amount of people doing this already.”

      A few key factors came to light during the study of online poker. Internet gamblers had a tendency to play much more frequently and aggressively, and when things weren’t going their way, often paid less attention to the amount of money they lost.

      According to the study, online gambling operators were deemed problematic. Located offshore, some of these companies occupied a legal ‘gray area’, lacking proper regulation to guarantee players security and provide a responsible gambling environment.

      Cotte believes that there are great benefits to legalizing online poker because it would grant players – who are already gambling online regardless of the risks – a regulated market. Through regulation, says Cotte, much of the harmful effects of online gambling could be controlled.

      Cotte suggested a few elements of online poker regulation, including the addition of enforcing ‘cooling-off’ periods when a player suffers significant losses. Cotte suggested a pop-up window that would warn players how much time they have spent playing online poker in a single session. The availability of online counseling was also proposed.

      In October of 2006, the US government passed the Unlawful Internet Gambling Enforcement Act (UIGEA), which re-enforced the prohibition of online gambling in the United States. Since that time, a number of studies have been executed and numerous public officials, mostly lead by Congressman Barney Frank (Mass), have fought to halt implementation of the UIEGA.

      Thus far, all attempts have failed. Perhaps, (seemingly against all odds), Cotte’s study will enlighten a few more influential individuals enough to turn things around in the US, opting for legalization and regulation of the online poker industry.

        Written by Donna Norman · Filed Under Online Gambling News, Poker News, UIGEA, iMega, Gambling Ban, United States Gambling Law 

        Love At First Slot: Online Gambling Couple Married

        July 28, 2008

        Online gambling is not just a pastime anymore – “Swede” and “Cynthial” met on an online gambling forum just over a year ago and last week, their relationship hit the universal landmark of matrimony. Crossing international waters, love slowly blossomed and thus the happy couple have joined together as one.

        “Swede”, hailing from Sweden (as you may have guessed), crossed paths with “Cynthial” of the US in June of 2007, and what began as innocent conversation soon intensified to daily emails, continuous instant messaging and intercontinental telephone conversations. Even with thousands of miles between them, destiny is not so easily thwarted. The two eventually met in London, choosing a neutral half-way point for a one-week getaway.

        In that week’s time, the couple decided they were inseparably compatible, sharing the same interests, including their love for online gambling. Swede went about the process of closing down his antiques auctioneering business and made the monumental move to join Cynthial in the United States, where she runs a construction products business.

        Arriving on US soil in April, Swede and Cynthial were married just last week. They have a new life plan now, intending to open a restaurant along Albuquerque, New Mexico’s famous Route 66.

        On a personal note, I would like to wish Swede and Cynthial all the happiness the world has to offer. I myself met my husband online and we have been together for nearly 6 blissful years, with one gorgeous 2 year old daughter to show for it.

        It just goes to show that while ‘online dating’ and ‘online gambling’ have both seen their fair share of scrutiny, wonderful things, well beyond our imagining at the time, can quickly blossom.

          Written by Donna Norman · Filed Under Online Casino News, Online Gambling News 

          PayPal Opening Online Gambling Payment Records To IRS

          July 28, 2008

          PayPal, once the most popular online payment method in North America, has announced it will be revealing the payment records of its members to the Internal Revenue Service. Apparently, the US government has demanded these records in reference to offshore transfers, and without the slightest bit of argument, PayPal obliged.

          This action has caused an enormous upset from the online gambling community, resulting in a unanimous outcry of “sell-out”. For many online poker and casino players, PayPal was the only option left for funding and withdrawals from such accounts. In lieu of the request from the IRS, PayPal will now be opening its clients account books to the US government for scrutinizing – accounts that were at one time thought to be secure and confidential.

          The online gambling industry is not exactly the intended target of the investigation. The US government is attempting to ‘crack down’ on individuals making use of ‘tax havens’ and hoping to unearthing ‘unclaimed income’. The online gambling industry would fall into the unclaimed income category, therefore making it a specific target, as well.

          PayPal was one of the largest suppliers of Internet-based fund transfers between online gambling operations and US citizens, but a hefty fine imposed by the Attorney General in 2002 put a stop to that, for the most part. PayPal has made a great effort to steer clear of the industry ever since, though there are still a few online gambling operations who offer PayPal as a viable way to transfer funds.

          Because of the secure and confidential policies PayPal was supposed to uphold regarding member information, it is likely we will see a slew of civil lawsuits against PayPal in the near future. Even the summoning of such records from the IRS does not validate such a breach of contract.

          Online gambling analyst Gordon Price offered his opinion on what is being termed the ‘PayPal Sell-Out’, “Even if they had kept themselves away, there was no reason for them to sell out the many people who gave them money and trusted them with private information.”

            Written by Donna Norman · Filed Under Online Gambling News, Poker News, United States Gambling Law 

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