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Internet Gambling Report

Germany, poker and more...

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In an interview with IGamingNews, Internet Gambling Report contributor Henrik Hoffman explains the Ministry of Taxation's announcement that sectors of the country's monopolistic gambling market will be liberalized.

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Lawrence Walters examines a question on the minds of many online gambling executives.

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Featured Video: IGE 2009

How to Handle Online Age Verification

Phishing out Online Threats

Age isn't just a number when it comes to online gambling. As Alderney Gambling Control Commission's senior regulatory inspector, Tom Fears works with online gambling operators on the best way to keep underage folks out. He tells us what's new in online age verification.

Wherever there's big money to be made, organized crime won't be far behind. During his tenure with the FBI, Edward P. Gibson saw a surge in online organized crime. Now as chief cyber security advisor for Microsoft, he keeps an even closer watch on the bad guys.

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Blogs
Author:Sue SchneiderCreated:2/22/2009 11:31 PM
Sue SchneiderOne the most respected authorities on Internet gambling takes on all topics affecting the business and tells it as she sees it.

This town is one of a kind. It’s where every permutation of human being is drawn like a bug to a bright light.

My first night in Vegas started out rather tamely. Dinner at Little Buddha with someone with whom I’ve spoken with on the phone and emailed a lot but never met. Those are always interesting. It was good to meet Lisa in person and I’m sure we’ll find ways to work together.

When Frank Fahrenkopf and the AGA crowd showed up, I joined them at the bar when my friend left. We dissected the recent political developments in the US. As former Chairman of the Republican National Committee, I’m always curious to hear his views…. although we agree to disagree.

I was fortunate to ride along on their coattails into the G2E reception at the Rain Nightclub and avoid the long queue developing. Once in the club, I perched in one of the upstairs conversation pits awaiting the arrival of my office colleagues (two new folks on their first trip to G2E.) Unfortunately, they faced a series of delays at the airport, hotel check-in lines, etc. so I made new friends who joined me in the pit. As the grousing about the long lines at the food stations and bars increased and the music turned from conversational to increasingly louder “ooonz ooonz ooonz” I decided to move back to my base of operations, Paris.

Luckily, my old friend Andy called right then so he met me in the bar in Paris for a catch-up. Before long, a man came up to our table and began to tell us a story. I kept surreptitiously asking Andy if he knew him since the guy was acting like he was his long lost friends He emphatically said No.

Andy then asked the guy why he stopped to talk to him. Andy says this kind of thing happens to him all the time with crazy people coming up to chat him up and he’s curious why. Our guest was stumped though and couldn’t put his finger on it. Of course, I was thinking, “takes one to know one” but that was too easy.

The guy had a tall tale, quite pornographic in nature, about his recent trip to the Paris hot tub where a couple made his acquaintance……in a big way. He even pealed off his newly purchased Paris socks to show us how shriveled up his feet were from hours in the Jacuzzi. The hot tub encounter led to being invited to their room to continue the escapade. Andy and I were enthralled by the story at that point and had found our entertainment… temporarily.

The guy then finished his story, saying that the couple then kicked him out of the room under threat of calling security. His biggest complaint was that they kept his bottle of Absolut. (It just goes to show that people who come to Vegas often engage in risk-taking behavior that goes above and beyond gambling.) We got more of his life story which was a bit convoluted to say the least.

I made the mistake of asking our visitor what was in the duffel bag at his feet. Andy made a crack referencing a movieand by then I was beginning to get a bit uncomfortable. The guy struggled with opening the bag when it was determined that the zipper had no zipper thingee. But, he was determined so he just ripped open the zipper and showed us the bag. It was completely empty. He must have really left that hotel room in a hurry.

By then, we were bored and a little creeped out. Andy very deftly, ushered the guy out of our space saying that we hadn’t seen each other in a while and wanted to catch up. Gratefully, our visitor got it and moved up to the bar to his next audience. Within 15 minutes, we watched him be escorted out of Paris by security.

We spent another couple of hours discussing politics, life, love, business but we kept coming back, in awe, to our strange encounter at the beginning of the evening. Ya’ gotta’ love this town!

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I’m constantly amazed at how hard it is to explain the US legislative system to those not familiar with it. It’s been challenging since ’95 when I got in this business and it continues today. As one friend likes to remind me, when he asked about the perennial i-gaming prohibition bills pending in Congress, I was quick to let him know that he was being “too rational” in trying to understand US politics. That situation was only exacerbated with the procedural shenanigans of Senator Bill Frist in passing the UIGEA. No hearings, no debate, hell, not even a bill introduced in the Senate.

Well, with the recent maneuverings of the Bush administration and their “midnight rule-making”, the head-scratching continues among international observers of our politics. What good will we garnered for having the sense and guts to elect Barack Obama was already challenged by these incumbent tricksters.

In spite of the appearances of a government person and former NFL lobbyist (the most vocal proponent of the prohibition) behind these maneuvers and the dictates of the White House Chief of Staff last May that there would be no rules propagated beyond November 1, we find ourselves now faced with the long-awaited “final” rules.

What can be done about it? Lawyers and lobbyists representing the industry have been deep in discussions about this. I-gaming is not the only industry affected, of course, and www.politico.com was quick to point out that there is some banding together and consideration of the use of the Congressional Review Act to overturn these “midnight” rules. All of this is being done under the backdrop of discussions of which of the “regulatory” bills introduced this year will crop up again next session under what the industry hopes will be a more rational and sympathetic Congress.

Clearly, as we say here, Congress has ‘bigger fish to fry” in 2009 and beyond. But, given the fact that any regulation (and taxation) of i-gaming and particularly poker (the sport of presidents) is “found money” in a struggling economy, we’re keeping our fingers crossed that positive movements on either the state or federal levels may emerge. In what has been, over the years, an increasingly fractured industry from an advocacy standpoint, I’ll ask again for cohesion and a search for the most reasonable and politically expedient approach to getting our foot in the door in the US regulatory landscape. To my mind, that’s poker. I think most veteran observers now realize that online sports betting in the US is a non-starter. If it happens in my lifetime, it will be a shock to me. But poker is a uniquely American game which continues to be played by millions in spite of the roadblocks thrown in front of them.

I’ll be spending next week in Vegas at G2E and will be listening closely to the myriad of discussions on this topic. Stand by for more observations on the debates regarding this issue.

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For those who are fans of Real Time with Bill Maher on Comedy Central (and if you're not, you should be), you'll know that irreverent looks at politics are his main fare.  And if you watch the show, you know that one of his contributors is Matt Taibbi, an irreverent writer with credentials such as Rolling Stone Magazine.  Taibbi typically takes no prisoners and he took a shot at the i-gaming industry this week. 

In a piece on the Democratic Convention, he began at the "free speech" zone which looked like a ghost town.  Then, he moved on to the rash of lobbyist sponsored parties which were going on all over town.  At that point, he heard that there was a poker tournament going on (organized by the Poker Players Alliance) and he tried to get in.  Although you never can be sure about the brutal editing he does, a rather ineffectual tournament gatekeeper was featured with a true "deer in the headlights" look.  When he was refused entrance to the poker tournament for not being on the list, he proceeded to blast the internet gambling lobby (which had legislation pending in Congress) as he would any other big lobby. 

So does that mean that i-gaming has "arrived" if they draw the ire of liberal pundits who go after lobbying interest for "big business"?  Perhaps.  We won't really be able to say that until we're successful getting a proactive piece of legislation passed.

In the mean time, we'll keep an eye out for when this Real Time piece is posted to the internet and make it available.

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Hey, folks. Remember Congressman Jim Leach, former Republican Representative of Iowa? This was the gentleman who was a thorn in the side of our industry for many years and was the FoB (“Friend of Bill”…..Frist, that is) who was tied into the passage of the Port Security bill.  We all know that story.  Leach subsequently lost his election last November, an outcome for which the Poker Players Alliance has publicly taken credit.

Anyway, oddly enough, Leach turned out to be a surprise token Republican speaker at the Democratic National Convention in Denver on its first night.  For a policy junkie like me, the content of his speech was interesting and served as a historic treatise on the finer points of our country’s two party system.  Unfortunately, the delivery was professorial (not in a good way) and pedantic.  I found myself wondering if Howard Dean (Democratic Party Chairman) knew what he was doing when he put this guy up there and how long they were going to let him drone on until the hook emerged from stage right.

But, as one would expect in the circumstances, he was there to endorse Obama who he said would be a “transcendent” candidate good for all Americans.

It was an interesting tidbit in a night of truly moving speeches by both Senator Ted Kennedy (who looked remarkably healthy in spite of being mid-treatment for a malignant brain tumor) and the poised Michelle Obama who did a plausible job of showing that she and her husband are just "folks."

Stay tuned for more observations.

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