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Sunday, December 31, 2006

Almost 30 video gambling machines seized

A video gambling machine raid in Ashburn Wednesday night proves successful.
Police seized 28 machines at six different stores. Police say some customers
were using their welfare checks to gamble on the machines. "This was
something that was just taking their money and is a violation of the law.
This is the first successful operation. This is not the first time we've
tried something like this but it's been the first successful operation that
we've had," says Chief Ben Sumner. The store owners have not been arrested
and police wont say if they will be.

Ranong strictly prohibits officials from gambling

Ranong Province warns state officials not to get involved in all forms of
gambling, especially lottery. They will face both criminal charges and
disciplinary punishments if they do. Ranong Governor Kanchanapa Keeman added
that the province also bans officials from listening to or watching programs
broadcasting government lottery drawing. She said officials should set a
good example for the general public by exempting from immoral activities. As
for underground lottery operators, the governor said she had instructed
police officers to keep a close watch on them and deploy income tax and
money-laundering laws to punish them.
At present the Government Lottery Office (GLO) halts the distribution of
two- and three-digits lotteries as the government is considering the
amendment of the controversial GLO Act.

Partygaming looks to buy Empire gambling sites

Sector leader PartyGaming said on Thursday it was in talks to buy part of
Empire, which confirmed it was selling gaming assets to become an investment
company.
"It'll include Empire's Noble Poker and Club Dice casino sites," said one
industry source, adding that the deal was expected to be completed by the
end of this week. PartyGaming is leading the race to consolidate the on-line
gaming sector, having moved into bookmaking by buying Gamebookers in August
and having held talks to buy 888. The group once towered over rivals with a
market capitalisation of nearly STG5 billion ($NZ14 billion), but when the
United States banned on-line gambling in November it lost over three
quarters of its value and began seeking ways to recover mass. Another source
said that after any deal was concluded, PartyGaming could strike a software
licensing deal with Playtech, which already powers Empire's sites. It would
be Playtech's first deal with PartyGaming.
PartyGaming shares gained 2.5 per cent to 30½ pence by 1245 GMT on Thursday,
while Empire's shares rose by as much as 7 per cent, but were later down by
2.3 per cent at 43 pence. The two companies have previously been partners,
but suffered an acrimonious split last year when PartyGaming ring-fenced its
own poker players from those of four affiliates including Empire, which
relied on PartyGaming software. The split hit Empire hard, knocking 10 per
cent off its profits, and causing it to sue PartyGaming last December. That
dispute was settled in February when PartyGaming bought assets including
Empire's damaged EmpirePoker business for $US250 million. Empire's Internet
casino generated revenues of $US30.2 million in the first half of 2006,
while its poker site generated $US8 million, but like most of its peers it
has since quit the world's most lucrative gaming market, the United States.
PartyGaming is planning to take on board some of Empire's marketing experts
who have helped it stand out against bigger rivals in the past, sources
said. Empire has been seeking to distance itself from on-line gaming since
September. On Thursday, Empire said, "Following any such disposal, the
company's intention is to become an investing company." "The proceeds of any
disposal would be used together with the company's existing cash of
approximately $US250 million to invest opportunisticly in both private and
public businesses and across the small, mid and large-cap range of
companies," it added.

Just What A.C. Needs: More Gambling

Casino impresario Steve Wynn is so needed in Atlantic City that a state
senator has suggested turning Boardwalk Hall into a casino for Wynn, writes
the Inquirer's Suzette Parmley. There's no real legislation he's planning,
but he did float the idea to see how "anyone who has an interest" would
respond. His model for the $3 billion renovation he's proposing is Union
Station in Washington D.C., only he wants to do it with slot machines. The
kicker? A full-scale renovation would pave the way for ex-bitter rivals Wynn
and Donald Trump to kiss and make up and operate an expansion of Trump
Plaza. The rumor is Trump would sell Trump Plaza to Wynn in exchange for
good land in Las Vegas, where Trump doesn't have a casino, oddly enough. So,
basically, what does this mean? More places to gamble in Atlantic City.
Yeeha! Oh, and supposedly the developers are supposed to build a new arena
to replace Boardwalk Hall if they want to turn it into a gambling mecca.

Gambling Probe Discovers Drugs, Fireworks, Costa Rica Wire Room

Suffolk County, Long Island gambling probe uncovered more than just money
from illegal gambling proceeds. Newsday reports that Suffolk District
Attorney Thomas Spota stood yesterday before a table covered with more than
$1 million in neat stacks of hundreds and several large bags of marijuana,
and said that the seized loot may be just a hint of "three major criminal
enterprises" uncovered by Suffolk investigators. "Spota announced the
results of a yearlong investigation that began as a sports gambling sting,
but grew to uncover multimillion-dollar marijuana and illegal fireworks
trafficking rings operating in Nassau, Suffolk and Queens."
17 suspects were taken into custody on assorted gambling and conspiracy
charges, and continue to search for one more - a Freeport attorney charged
with helping run "hundreds of pounds" of pot from California to Long Island,
according to Newsday. Among those arrested were Salvatore Gerrato, 45, of
2337 Hampton Ave., Seaford, who authorities said ran all three rings; Frank
Lonigro, 33, of 745 Terry Rd. in Hauppauge, who helped run the marijuana and
gambling operations, and accountant Stephen Tarnofsky, 59, who Spota said
earned $6,000 a week running a Costa Rican wire room for the gambling ring.
The arrests come just one month after a heavily publicized gambling raid by
the Queens District Attorneys office, considered the "biggest of its kind".
While both cases have connections to the offshore gambling world (call
centers and servers based in both Costa Rica and St. Marten, respectively),
the two organizations are widely viewed as thriving in the shadows of an
otherwise legitimate billion dollar online gambling industry. These types
of businesses, which thrive primarily on the use of "agents" employed within
the United States to collect and pay out customers who bet via credit, are
not representative of the online gambling industry as a whole. Law
enforcement agencies throughout the US have orchestrated investigations into
these types of operations long before the advent of the World Wide Web. But
with the new technology, "criminal enterprises" have fully capitalized
through the creation of websites for gambling purposes. Local US law
enforcement has especially begun cracking down on "gambling call centers"
that claim not to handle any gambling cash transactions but rather act as
facilitators to manage local bookmaking businesses offshore, similar to that
of US corporations utilizing inexpensive call center contract employees in
countries such as India. Unlike the arrests involving Florida resident
James Giordano and other alleged co-conspirators, the Long Island case would
not require extensive jail time - 1 1/2 to 4 years maximum (Giordano is
facing close to 10 years in prison and has not been able to make bail).
Spota said prosecutors will convene a special grand jury "to conduct a much
more extensive investigation" and likely bring more serious charges,
according to Newsday. "Spota said 30 search warrants uncovered computer and
paper records indicating that the criminal operations go far deeper than
investigators knew. "Spota said nine tons of illegal fireworks, transported
from Maryland to Long Island, were seized in May, and that the gambling ring
alone took in an average of $165,000 a week in bets. During one trip, the
marijuana traffickers were found on their way to California with $300,000
cash in a Winnebago recreational vehicle - much of it in a hidden "trap"
compartment. "The owner of the vehicle, Jeffrey Ackerman, 43, of 9 Trapper
Lane, Levittown, was charged with conspiracy. His attorney, Edward Burke Jr.
of Sag Harbor, declined to comment.
"Spota said during each trip, the suspects returned with marijuana worth $1
million to $1.5 million on the street. "Investigators used phone and
electronic surveillance, including a first-of-a-kind in Suffolk computer
wire tap to collect data from suspects' computers that uncovered "details
that we've never seen before" on a sports betting operation."

Gambling duo prove there's no tax on luck

Brian and Terry Leblanc were once a couple of average guys, spending their
days washing windows and their nights drinking beer and watching sports on
television. In the late 1980s, the brothers won about $90,000 at Toronto's
Woodbine race track and decided to put that money toward more sports
betting. Within a few years, the Leblancs were managing a full-time betting
operation from their home in Aylmer, Que., wagering up to $300,000 a week
mostly on games such as Pro-Line. Their strategy was simple: bet huge
amounts on events with incredibly long odds. Naturally, they lost most of
the time, but, when they won, they won big. They pocketed $1.7-million three
times - on two bets in 1996 and one in 1999 - and won about $5.5-million
from 1996 to 1999. During that period, they wagered $52-million. It wasn't
long before the Canada Revenue Agency took note. In 2000, the agency sent
them a notice of reassessment for the years 1996 to 1999, saying their
gambling was a business and subject to tax. The case ended up at the Tax
Court of Canada and, last week, Mr. Justice Donald Bowman ruled in favour of
the Leblancs. "It is true, they won but to say they won because they had a
system has no basis in the evidence at all," Judge Bowman said in his
ruling.
"They won in spite of having no system. If one is looking for a pattern, it
is that they bet massively and recklessly and in those games where they
could, they bet on long shots. Certainly it meant that if they won they won
big, but the converse is that if they lost, they lost big and, given the
astronomical odds against winning, their chances of losing were far greater
than their chances of winning." The judge said the Leblancs were compulsive
gamblers, but they were not running a business and their winnings were not
taxable. William Vanveen, an Ottawa lawyer who represented the brothers,
said the ruling was an important victory for gamblers everywhere. "What it
boiled down to was that luck is not taxable," Mr. Vanveen said Wednesday. In
order to win its case, he said the CRA had to prove that the men developed a
system to minimize their risk, something like a pool shark who practises by
day and then takes on unsuspecting drunks by night. "The mistake CRA made
was they just looked at the volume [of betting] and said all this volume
amounts to a business," Mr. Vanveen said. "These [lotteries] are advertised
and are accepted to be tax free. [The brothers] have a big win, they don't
work after that, so what's the problem?" The lawyer representing CRA was
unavailable for comment. The CRA could still appeal the ruling. They grew up
in the Toronto area and had little more than high-school education when they
joined their father's window-washing business in the 1980s. After winning
money on the track, they decided to jump into Pro-Line, which was launched
in 1992. They lost about $10,000 in their first year, but soon scored big
with two $1.7-million wins in January and February of 1996. By the
mid-1990s, they moved to Aylmer, near Ottawa, so they could play both
Ontario and Quebec lotteries. They kept their lives simple, driving old cars
and eschewing flashy jewellery. "They spent their time playing lottery games
or watching sports on television," the judge noted. "They also played Ping
Pong and golf and sat around the house drinking beer and eating pizza." Not
everything went well. Around 1996, Terry Leblanc fell in love with a
stripper named Josée Dubreuil and showered her with gifts, including an $850
engagement ring, $2,000 for breast implants and $14,000 in cash, according
to court records. The relationship ended after Ms. Dubreuil stole $124,000
worth of winning lottery tickets from a jar the Leblancs used to store
winning bets (the theft prompted them to buy a safe). Ms. Dubreuil was later
convicted and given an 18-month suspended sentence. In 2000, they also got
into a spat with dog-racing regulators in Australia who withheld nearly
$200,000 the brothers won via an online bet. The Australians alleged
manipulation but eventually backed down and gave the Leblancs their
winnings. Brian, now 35, and Terry, 41, were not available for comment
yesterday. According to Mr. Vanveen, Terry still lives in Canada while Brian
has moved to Britain.

Almost 30 video gambling machines seized

A video gambling machine raid in Ashburn Wednesday night proves successful.
Police seized 28 machines at six different stores. Police say some customers
were using their welfare checks to gamble on the machines. "This was
something that was just taking their money and is a violation of the law.
This is the first successful operation. This is not the first time we've
tried something like this but it's been the first successful operation that
we've had," says Chief Ben Sumner. The store owners have not been arrested
and police wont say if they will be.

Saturday, December 30, 2006

Take the buyout or stay at Ford? Either way, workers are nervous

DETROIT Scott Swiercz smoked a cigarette and drank a beer at The Final Score
lounge in Brownstown Township, Mich., mulling the biggest gamble of his
life. Ford Motor Co. had offered him and its 75,000 other U.S. hourly
workers a choice of buyout packages. One option: A $100,000 lump-sum payment
to sever his relationship with Ford. Taking the money would mean no job and
no health care. For Swiercz, 40, who has two ex-wives and pays $157.50 each
week in child support for his 14-year-old son, taking the buyout would be
the equivalent of a third divorce. The math just didn't work. The cheapest
health insurance he found cost $450 a month. With child support, he'd pay
$1,080 each month before he paid rent or put gas in the car. Like all hourly
workers, he had to make a decision by Nov. 27. He chose to stay on the
production line at Ford's Woodhaven Stamping Plant, where he's weeks away
from hitting 11 years seniority. He's gambling that the plant will stay
open. He's gambling that, if it does, enough workers will take buyouts so
Ford can avoid layoffs there. He's gambling that a worker from a closing
plant who has more seniority won't bump him off the job. For hourly workers
at Ford, making a decision on the buyout offers required a combination of
economic calculations and soul searching. Some 38,000 Ford workers roughly
half of Ford's U.S. hourly work force said they would take one of Ford's
eight buyout packages. The workers who are staying are every bit as nervous
as those starting over. The buyout and the future have been the dominant
topic of conversation at the Woodhaven plant for six months, Swiercz said.
"You talk to 25 people a day, that's what 10 people are talking about," he
said. "Not, 'How are your kids?' or 'What are you doing for Christmas?'
(It's) 'You taking the buyout? Everybody's worried about everything now."
Hard times at Ford, General Motors Corp., DaimlerChrysler and their
suppliers mean hard times for Michigan, where all three are based and where
the auto industry dominates the economy. The state is on track to lose
336,000 jobs between mid-2000 and the end of 2006, the longest stretch of
job losses since the Great Depression.
Contracts expire between the United Auto Workers and the Big Three in 2007,
and some argue union concessions are the only way the Big Three can compete
with Toyota Motor Corp. and Honda Motor Co.

UAW critics say union work rules make it nearly impossible to fire a bad
worker. A 21/2-hour lunch for a union worker at one of the bars near a plant
wasn't unheard of. And union workers didn't pay a penny for health insurance
until last year; now a family pays only $700 a year, said Donald Grimes, an
economist at the University of Michigan's Institute for Labor and Industrial
Relations.

Auto workers counter that it's punishing work.

Cynthia Allison was a single mother raising a daughter, Donielle, and
getting welfare before she got a job at Ford's Dearborn Truck plant. Nothing
had prepared her for how physically punishing it would be.

Her first day, "I kept saying, 'The money, Cindy, the money. A future for
you and for Donny.' When I got off that 4 a.m. shift, each step I took, my
head said, 'Boom. Boom. Boom.'"

She's stayed at Ford 12 years. She's popped her knee, she's popped her back,
she cut herself, she got hit in the head with a Mustang.

Allison, 41, who also raised one of her nieces, is taking the $100,000
buyout.

"I think I would be more afraid to stay than I am nervous to leave," she
said.

PartyGaming Confirms Talks To Buy Empire's Online Gambling Assets

Online gambling firm Partygaming has confirmed it is in talks to buy the
gaming assets of smaller rival Empire Online. Analysts said the deal could
be worth about $40m (£20.4m), and would probably include Empire's Noble
Poker and Club Dice Casino websites. Shares in Partygaming rose 2.5% on the
news in mid-day trading in London. The company has been refocusing its
business after it pulled out of the US market following the tightening of
anti-gambling laws there. Partygaming previously made 75% of its earnings in
the US. Analysts have been expecting a wave of consolidation in the industry
ever since the US moves began.
Empire said it planned to become an investment company after selling off its
internet gambling assets. The firm's Online Casino generated revenues of
$30.2m in the first six months of 2006, while its Online Poker site made
$8m.

L.I. Gambling and Drug Rings Are Broken Up, Authorities Say

A sophisticated Long Island gambling ring that took in $8.6 million a year
was broken up with the arrest of 14 people, the Suffolk County district
attorney said on Wednesday. The district attorney, Thomas J. Spota, said
that the 14-month investigation also uncovered lucrative marijuana and
fireworks smuggling rackets that were run by the chief bookmaker, Salvatore
Gerrato, 45, of Seaford. In addition, three people were charged in the drug
case. "Surveillance of phone and computer communications established that
the gambling ring took in an average of $165,000 a week in bets," Mr. Spota
said. He added that the operation, which involved betting on professional
and college sports, had a wire room in Costa Rica. Mr. Spota said that a
59-year-old accountant, Stephen Tarnofsky of Merrick, was the leader of the
wire room. The gambling case eventually led investigators to the marijuana
and fireworks operations. According to the authorities, Mr. Gerrato oversaw
the smuggling of fireworks from Maryland and marijuana from California, and
these were distributed throughout the New York metropolitan region.
In May, the Suffolk Highway Patrol seized nine tons of illegal fireworks
from a vehicle returning from Maryland, according to Mr. Spota. The
authorities also confiscated more than $300,000 in cash from a recreational
vehicle that the smugglers planned to use to buy 100 pounds of marijuana in
California, Mr. Spota said. He added that on a typical cross-country run,
the smugglers could stash the vehicle with enough marijuana to yield $1
million to $1.5 million in street sales.
In raids on Dec. 14, investigators seized $1 million in cash, including
$600,000 from Mr. Tarnofsky's home, Mr. Spota said. Of the 17 people
arrested, 14 have been charged with promoting gambling in the first degree,
including Mr. Tarnofsky, Mr. Gerrato and Frank Lonigro, 33, of Hauppauge.
Three others were charged with fourth-degree conspiracy to possess
marijuana. Both charges are felonies and carry a maximum prison sentence of
four years, the district attorney's office said.
Mr. Gerrato was previously convicted of promoting gambling and, in 2001, was
sentenced to five years' probation, Mr. Spota said. Detectives were still
looking for Andrew Petrone, 34, of Freeport, a lawyer who, according to the
authorities, participated in the marijuana operation. He was arrested in
June for possession of a controlled substance in an unrelated case, Mr.
Spota said. He pleaded guilty and was scheduled for sentencing next month.
All the defendants were released on desk appearance tickets, and were
scheduled to appear before a judge in March, the authorities said. Mr. Spota
added that the investigation was not over. "I am sure it's a much larger
operation," he said.

Gambling duo prove there's no tax on luck

Brian and Terry Leblanc were once a couple of average guys, spending their
days washing windows and their nights drinking beer and watching sports on
TV.
In the late 1980s, the brothers won about $90,000 at Toronto's Woodbine race
track and decided to put that money toward more sports betting. Within a few
years, the Leblancs were managing a full-time betting operation from their
home in Aylmer, Que., wagering up to $300,000 a week mostly on games such as
Pro-Line. Their strategy was simple: bet huge amounts on events with
incredibly long odds. Naturally, they lost most of the time, but, when they
won, they won big. They pocketed $1.7-million three times -- on two bets in
1996 and one in 1999 -- and won about $5.5-million from 1996 to 1999. During
that period, they wagered $52-million. It wasn't long before the Canada
Revenue Agency took note. In 2000, the agency sent them a notice of
reassessment for the years 1996 to 1999, saying their gambling was a
business and subject to tax. The case ended up at the Tax Court of Canada
and, last week, Mr. Justice Donald Bowman ruled in favour of the Leblancs.
"It is true, they won but to say they won because they had a system has no
basis in the evidence at all," Judge Bowman said in his ruling.
"They won in spite of having no system. If one is looking for a pattern, it
is that they bet massively and recklessly and in those games where they
could, they bet on long shots. Certainly it meant that if they won they won
big, but the converse is that if they lost, they lost big and, given the
astronomical odds against winning, their chances of losing were far greater
than their chances of winning." The judge said the Leblancs were compulsive
gamblers, but they were not running a business and their winnings were not
taxable. William Vanveen, an Ottawa lawyer who represented the brothers,
said the ruling was an important victory for gamblers everywhere.

"What it boiled down to was that luck is not taxable," Mr. Vanveen said
yesterday.

In order to win its case, he said the CRA had to prove that the men
developed a system to minimize their risk, something like a pool shark who
practises by day and then takes on unsuspecting drunks by night.

"The mistake CRA made was they just looked at the volume [of betting] and
said all this volume amounts to a business," Mr. Vanveen said. "These
[lotteries] are advertised and are accepted to be tax free. [The brothers]
have a big win, they don't work after that, so what's the problem?"

The lawyer representing CRA was unavailable for comment. The CRA could still
appeal the ruling.

As Judge Bowman noted, the Leblancs led unusual lives.

They grew up in the Toronto area and had little more than high-school
education when they joined their father's window-washing business in the
1980s. After winning money on the track, they decided to jump into Pro-Line,
which was launched in 1992. They lost about $10,000 in their first year, but
soon scored big with two $1.7-million wins in January and February of 1996.
By the mid-1990s, they moved to Aylmer, near Ottawa, so they could play both
Ontario and Quebec lotteries. They kept their lives simple, driving old cars
and eschewing flashy jewellery.

"They spent their time playing lottery games or watching sports on
television," the judge noted. "They also played Ping Pong and golf and sat
around the house drinking beer and eating pizza."

Not everything went well. Around 1996, Terry Leblanc fell in love with a
stripper named Josée Dubreuil and showered her with gifts, including an $850
engagement ring, $2,000 for breast implants and $14,000 in cash, according
to court records. The relationship ended after Ms. Dubreuil stole $124,000
worth of winning lottery tickets from a jar the Leblancs used to store
winning bets (the theft prompted them to buy a safe). Ms. Dubreuil was later
convicted and given an 18-month suspended sentence.

In 2000, they also got into a spat with dog-racing regulators in Australia
who withheld nearly $200,000 the brothers won via an online bet. The
Australians alleged manipulation but eventually backed down and gave the
Leblancs their winnings.

Brian, now 35, and Terry, 41, were not available for comment yesterday.
According to Mr. Vanveen, Terry still lives in Canada while Brian has moved
to Britain.

Both are still gambling, he said. "Not like they were before."

Compact with Spokane Tribe paves way for video gambling

The hottest gambling action in Washington would get even hotter under a new
compact proposed between the state and the Spokane Tribe of Indians. Under
the deal, to be announced at a news conference in Seattle today, the tribe
would be the first in the state to legally operate cash-operated,
single-push-button video-gambling machines that have been popular cash cows
elsewhere but have been banned in Washington. For the Spokanes, the compact
would end 15 years of litigation over the tribe's gambling operations, which
have been running without a formal compact. And that would help the tribe
expand to better compete with neighboring tribes. "This is a real good day
for the tribe," said Gerald Nicodemus, secretary of the Spokane tribal
business council. It may benefit other tribes, which could also make a play
for the new machines, potentially triggering an explosion in the video-slot
business statewide. Washington's tribal casinos are generating about $1.2
billion a year, or 65 percent of all annual gambling revenue, using the
older, more cumbersome machines that take paper tickets instead of cash.
That's one reason the proposal has some powerful detractors, such as state
Sen. Margarita Prentice, D-Seattle, who chairs the Senate Ways and Means
Committee and sits on the State Gambling Commission that will vote on the
compact. Wednesday she called the proposal "really offensive." "This is way
beyond what the public wants to swallow," Prentice said. "I can't imagine
how we can possibly approve this."

A year in review. Online casinos and Gambling May

Part two in a series of news reviews covering the online casino and gambling
sector. May - Las Vegas Sands win a casino licence to build the first
casino in Singapore, costing three billion dollars. A bid from Coventry to
operate one of the super casinos in the U.K was thrown out by the
government, leaving the city's officials demanding answers. Kent town,
Dartford, suffered similar fate, where as Sheffield went the over way and
was put on the shortlist of candidates. The full list of candidates in
competition for the UK's first super casino was announced: Blackpool,
Wembley Stadium, Cardiff, Glasgow, the Millennium Dome, Manchester,
Newcastle upon Tyne and Sheffield were all short-listed. Two men were jailed
in Nottingham after they raided a casino and escaped with £45,000. They
received a total of 22 years in prison. Kerzner International sells their
casino operation to its management in a $3.2 billion deal, netting the
Cayzer family $237 million. June - As the world cup begins, bookies reveal
they are having a hard time as all the favourites seem to be performing as
expected. However, they appear to be crocodile tears, as a survey conducted
by Nielsen/Net Ratings showed that approximately 2.5 million Britons went on
to gambling sites, with bookies doubling their winnings to over £1 billion
from the last world cup in 2002. Lads' mag, Maxim, agrees to lend its name
to a £640 million Las Vegas hotel and casino. 32Red buy Littlewood's ailing
Bet Direct in a deal for over £11 million and was met with open arms by
investors. However, that optimism would not last the whole year as Bet
Direct turns into the industries hot potato. There are calls in Australia
for revenue gained from betting on sports events by gambling companies to be
put back into the sport. The French National Lottery is accused of cheating
players by printing scratchcards in a predetermined fashion. A successful
businessman, Robert Riblet, went on to file a two million Euro lawsuit
against the lottery. Tessa Jowell confirms that the UK will host an
International Gambling Summit, scheduled for October, in an attempt to unify
the various legislations of the numerous regulatory bodies. July - In a
massive shock to the gambling industry, David Carruthers, chief executive of
online gaming group BetOnSports, was arrested as he changed planes in
America en route to Costa Rica. He was charged by American federal
prosecutors with racketeering, conspiracy and fraud.

Shares in online gambling companies plummet as panic spreads throughout the
industry and many close their US facing businesses. Sportingbet were amongst
the worst hit, losing 50% of its revenue as almost £1 billion was wiped from
the market in days.

UK Deputy Prime Minster, John Prescott, reacted angrily to claims of
corruption over his friendship with Philip Anschutz, as the US tycoon looks
to open a super casino at London's Dome.

Top Irish jockey, Kieren Fallon, loses his appeal over allegations he was
involved in a betting scam but always maintained his innocence.

The government announce that casinos, betting shops and online gambling
websites will be allowed to advertise on television from next year, under
new proposed laws in the Gambling Act.

Ladbrokes return to the casino industry after a gap of more than five years
when it opened the £5 million Ladbrokes Casino and Sports Bar at the Hilton
in Paddington, London.

Rank look into the possibility of selling its world-renowned restaurant
business, the Hard Rock Café for a potential £500 million.

August
The government face more criticism as it's revealed that Anschutz
Entertainment Group (AEG) have admitted they have started building work on a
casino at the Millennium Dome. AEG claimed it would be too costly to wait
for a decision on the location of the UK's new casinos. Many see this move
as antagonising and somewhat presumptuous.

The world's very first strip poker tournament was hosted by Paddy Power in
London. Winner John Young from Slough generously gave the £10,000 prize
money to charity.

After the world cup in Germany, bookies report record figures with over $2
billion wagered would wide. William Hill announced that punters were betting
almost £30 million per day.

Spain begins to look more closely into the possibility of regulating
gambling as a partnership between William Hill and Codere hint at a possible
relaxing of laws.

Harrah's eyes a potential buyout of the UK's Stanley Leisure and London
Clubs International.

Ladbrokes announces that it will not be entering the US market, although the
decision was not final and would be up for review in the coming months. That
review would turn out to be very brief indeed.

There is speculation that PartyGaming is the prime candidate for acquiring
the Victor Chandler Group which includes an online casino, online poker
room, sportbook and telephone betting operation.

Friday, December 29, 2006

Gambling lessons

Although youth appears to be in charge at both Allegheny County and
Pittsburgh city government levels, the "Old Boys' Network" is alive and
well -- along with some poor math skills. Let's revisit some key points
related to the awarding of Pittsburgh's slots license: Why did the state
award a slots license for $50 million that many gaming experts agreed would
fetch between $300 million and $500 million? I have to suspect that $250
million to $450 million would have built a nice arena and left several
million for developing the lower Hill District. Because of the political
allies that Forest City engaged for its Station Square bid and its ties to
our political leaders, neither County Executive Dan Onorato nor Mayor Luke
Ravenstahl (who personally favored the Isle of Capri casino proposal) had
the wherewithal to support the Capri bid for fear of upsetting their
political friends. They also lacked the foresight to strategically negotiate
Plan B. While Don Barden's bid and Majestic Star's North Shore location may
ultimately appear to be the best plan for the region, does anyone at the
county and city understand the time value of money? The sum of $290 million
today is worth a whole lot more than $7.5 million a year over 30 years. If
Isle of Capri could afford to offer $290 million to build an arena, did
anyone think that asking the other two casino companies for $7.5 million a
year over 30 years might be too low? Now that the license has been awarded,
Barden is under no pressure to increase his contribution. Maybe we should
have asked before the license was awarded? Now Dan and Luke are upset that
the Pens will not return their phone calls. THEY are willing to negotiate.
Negotiate with whose money? If the original intent was to use slots money to
reduce property taxes, I am glad to hear that my relief is now being reduced
because our visionary leaders cannot add.

Gambling to save face on Iraq

"You can always count on Americans to do the right thing but only after
they've exhausted every other possibility." --Winston Churchill(1874-1965),
former Prime Minister of England Sometimes, when a snake tries to swallow a
porcupine, it gets stuck in its throat and the predator has no choice but to
spit it out. The neoconservative Bush-Cheney administration, under the
pro-Israel Lobby's influence, thought that Iraq would be an easy meal, to be
savored while doing an easycakewalk, in the words of neocon Ken Adelman: "I
believe demolishing Hussein's military power and liberating Iraq would be a
cakewalk." Now, the Bush-Cheney administration will spend the next two years
it has left attempting to extricate itself from the morass they have brought
upon Iraq and upon the United States. According to former U.N. General
SecretaryKofi Annan, the U.S. is 'trapped in Iraq', and faces a no-win
situation. This is reminiscent of what former Secretary of State Colin Powel
is reputed to have said to George W. Bush before the military invasion of
Iraq: "If you break it; you own it!" How long and after how many more deaths
will this Iraq quagmire last? The geopolitical consequences of having a
country like the United States trapped in Iraq are enormous.
The Iraq conflict is turning into another Vietnam war-like fiasco. Already,
the Iraq war costs more in nominal terms than the Vietnam war and 58 percent
of Americansnow believe that George W. Bush led them into a new Vietnam-like
mess. Even though the 10-wise-person Baker-Hamilton Commission has
unanimously recommended that the U.S. terminate its open-ended presence in
Iraq and begin its disengagement and "redeployment" from the country, and
even though fewer than 30 percent of Americans approve Bush's policies in
Iraq, you can bet the house that George W. Bush will not follow the
recommendation of his father's advisors. Instead of beginning an orderly
troop withdrawal in 2007, as recommended by the Baker-Hamilton Commission,
G. W. Bush would rather gamble and raise the ante, and will risk turning
Iraq into an even bigger mess than it is today. It's like Bush's SUV has no
reverse gear! In a last attempt to salvage a losing and misguided
enterprise, and deep in his continuous state of denial, Bush will throw good
money after bad and will send thousands of additional American troops to
"secure Baghdad" and give the impression of some stability in Iraq. In
reality, Bush's "new approach" for Iraq may well have the consequence of
enlarging the conflict, possibly bringing Iran, Syria, Turkey and Saudi
Arabia into the inferno. In other words, the neocon inspired Bush-Cheney
team will do exactly the reverse of what the Baker-Hamilton Commission has
recommended. No wonder former president George H.W. Bush is crying aloud in
public. The Bush-Cheney administration invaded a foreign country illegally
and now thinks that its presence there has become indispensable. That takes
some gall. Trying to save face with "a last big push" to give the impression
of "salvaging" the situation is not a real policy for solving the Iraq mess.
This will only perpetuate the on-going civil war in that country and pile up
more deaths on the already high mountain of deaths. It is a cop-out, but
sadly in line with what one would expect from a dysfunctional
administration.

Village upholds old gambling rule

A small village in Lishui, Zhejiang Province, has been following a special
rule since 1843 anyone in the village who wants to gamble must invite all
the local families for a meat-filled meal. The rule was established by the
ancestors of the village's Xie family during the Qing Dynasty (1644-1911)
and has been duly followed since. Senior residents read the rule to
villagers on December 10 every year. According to one senior resident, the
rule was set up in the 19th century because the villagers had become
impoverished through gambling. Inviting all the other families to eat a meal
of meat would have cost any gambler dearly and was considered a hefty
punishment.

Top 5 Gambling Stocks for 2007

In this column, we'll unleash the best gambling stocks in 2007 and give you
the 5 companies we believe will help your portfolio. Each stock is evaluated
and assessed based on a variety of factors, including management philosophy,
growth opportunity, risk and price per share. We'll give you company
background, contact information, stock and ticker symbols, Web site
addresses, as well as insider tips on reasons to purchase, possible
shortcomings, and a snapshot of historical financial figures. 1. Churchill
Downs Current Price >> $40.65 With the passing of the Unlawful Internet
Gambling Enforcement Act (UIGEA) in October 2006, the United States
horseracing industry stands to benefit the most. There is no other company
better positioned than Churchill Downs. Over the past 5 years, the company
has traded in a tight range between $35-$45 per share. The new law blocking
financial transactions to offshore gambling companies stands to benefit the
racing and pari-mutuel companies. We believe Churchill is poised to break
out of the 5 year trading range. Churchill Downs 2007 expectation: $54.50 2.
Las Vegas Sands Current Price >> $89.03 Sands is the largest gambling
company in the world, with a total outstanding market cap of around $31
billion dollars. They own and operate The Venetian, The Sands Expo and
Convention Center in Las Vegas, Nevada, and The Sands Macao Casino in Macao,
China. The Company is also in the process of developing additional casino
resorts and properties in Las Vegas and Macao, including The Palazzo Resort
Hotel Casino, which will be connected with The Venetian. There is no other
gambling company that possesses the shear cash as Sands. Their return on
investment (ROI) in Macau has been unbelievable. We expect them to continue
their dominance throughout 2007. Las Vegas Sands 2007 expectation: $112.80
3. Penn National Gaming Current Price >> $41.59 Penn is probably the most
diversified gambling company in the industry. They own and operate top-notch
casinos in Colorado, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi,
Missouri, Ontario and West Virginia. Penn National Gaming also owns 1
racetrack and 6 OTWs in Pennsylvania, a racetrack in Ohio, a racetrack in
West Virginia and a racetrack in Maine, and through a joint venture, owns
50% of a racetrack in New Jersey. This Pennsylvania based gambling outfit
has all the makings of an industry leader. We expect continued growth in
2007 and additional real property investment for the company. Penn National
Gaming 2007 expectation: $51.29 4. Harrah's Entertainment Current Price >>
$82.79 What would the industry be without Harrah's? They are the flashiest
casino-entertainment provider in the world, owning 39 gambling casinos in
the USA. They operate gambling casinos primarily under the Harrah's, Caesars
and Horseshoe brand names, and include 20 land-based gambling casinos, 11
riverboat or dockside casinos, 4 casinos on Indian reservations, 2 casinos
on cruise ships, a combination greyhound-racing facility and casino, and a
combination thoroughbred racetrack and casino. The Company's facilities have
an aggregate of approximately three million square feet of gaming space and
40,000 hotel rooms. They're strategic acquisitions around the world make
them a viable candidate for 2007. We expect a 10-15% growth rate from the
company next year. Harrah's Entertainment 2007 expectation: $95.00 5. Isle
of Capri Casinos Current Price >> $26.77 We feel the most underpriced stock
in the group is Isle of Capri. They have consistently proven themselves
year-in and year-out. At just under $30 dollars per share, ISLE is a
bargain. They are a developer, owner and operator of branded gaming
facilities and related lodging and entertainment facilities in markets
throughout the United States and internationally. Isle of Capri Casinos
wholly owns and operates a pari-mutuel harness racing facility in Pompano
Beach, Florida, a location with double and possibly triple digit growth
rates for 2007. The company is based out of St. Louis Missouri and manages
casinos all across the US and in the Bahamas. They're CEO, Bernard
Goldstein, is considered one of the most intelligent executes in the entire
industry. Isle of Capri Casinos 2007 expectation: $33.60

Gambling boss selling firm to rival company

Noam Lanir, owner of the Empire Online, will sell his remaining shares in
the gambling company to rival PartyGaming for USD 40 million. A year and a
half after the company was put up on the London Stock Exchange, Lanir seems
to be heading out of the gambling business. Lanir will use revenues from the
sale of Empire, which total USD 300 million, to invest in real estate. The
sale deal with PartyGambling, the world's largest operator of gambling Web
sites, is expected to be finalized by the end of the week. Experts said
Lanir's decision is a signal that the two remaining Israeli online gambling
companies traded on the London Stock Exchange, 888.com and Playtech, will be
selling their shares in the future over US law banning online gambling. The
US Senate approved a the law on September 29, making it illegal for US
banks, credit card and companies to make transactions carried out in the US
to online gambling companies. Empire was worth USD 928 million when first
traded in London, but its shared fell significantly in recent months. The
company is estimated at USD 244 million today after its shares fell by 80
percent.

Buyouts dominate holiday talk at Ford

Ford Motor Co. had offered him and its 75,000 other U.S. hourly workers a
choice of buyout packages. One option: A $100,000 lump-sum payment to walk
away forever. No job and no health care. For hourly workers at Ford, making
a decision on the buyout offers required a combination of economic
calculations and soul searching. For Swiercz, 40, who has two ex-wives and
pays $157.50 each week in child support for his 14-year-old son, taking the
buyout would be the equivalent of a third divorce. The math just didn't
work: The cheapest health insurance he found cost $450 a month. With child
support, he'd pay $1,080 each month before he paid rent or put gas in the
car. He chose to stay on the production line at Ford's Woodhaven Stamping
Plant. The decision feels "100 percent" like a gamble, he said. He's
gambling that the plant will stay open. He's gambling that, if it does,
enough workers will take buyouts so Ford can avoid layoffs there. He's
gambling that a worker from a closing plant who has more seniority won't
bump him off the job. "A lot of people I talk to say, 'It's just like craps:
It's a roll of the dice,' " he said. Some 38,000 Ford workers -- roughly
half of Ford's U.S. hourly work force -- said they would take one of Ford's
eight buyout packages.
The last will be gone by fall. Workers who are staying are every bit as
nervous as those starting over. The Woodhaven plant still runs three shifts.
Workers there got good news the Friday before Christmas that it will stay
open. The buyout and the future have been the dominant topic of conversation
there for six months, Swiercz said. "You talk to 25 people a day, that's
what 10 people are talking about," he said. "Not, 'How are your kids?' or
'What are you doing for Christmas?' (It's) 'You taking the buyout?'
"Everybody's worried about everything now," Swiercz said. Auto workers, who
can make $60,000 a year without overtime, and more than $100,000 with it,
"know they're never going to make this kind of money again," said Denise
Brooks, who has worked for 131/2 years at the Brownstown Ford plant. Cynthia
Allison was a single mother raising a daughter, Donielle, and getting
welfare before she got a job at Ford's Dearborn Truck plant. Nothing had
prepared her for how physically punishing it would be. Her first day, "I
kept saying, 'The money, Cindy, the money. A future for you and for Donny.'
When I got off that 4 a.m. shift, each step I took, my head said, 'Boom.
Boom. Boom.' " Allison is taking the $100,000 buyout and planning a future
without her $27 an hour salary. She's moved from a $1,200-a month apartment
in suburban Southfield to a $700 apartment in Detroit. She has no home
phone, no cable, she's stopped shopping for everything but necessities, she
no longer eats at restaurants and she's bartending nights. She's not bitter,
saying: "Thank you. Thank you, Ford, for helping me raise my daughters,
making it possible as a single parent. I don't want them to think I didn't
appreciate the time. Without them, I couldn't have done a lot of the things
I did for my daughters, or my family."

Thursday, December 28, 2006

Tide, Cowboys handling gambling concern differently

Alabama football players in town for the Independence Bowl didn't waste time
getting into one of the prime attractions in Shreveport: casinos. Oklahoma
State coach Mike Gundy has prohibited his team from visiting the gambling
halls. But The Oklahoman newspaper reported Tuesday that some Crimson Tide
players spent Christmas Eve in casinos after arriving for the game, which
will be played Thursday afternoon. The newspaper said Alabama players age 21
and older were seen ordering alcoholic drinks and betting at blackjack,
roulette and poker tables. Alabama's interim coach, Joe Kines, advised his
players not to waste their money but didn't prohibit them from visiting
casinos. "We set up a box at the door and told our players to drop their
money in and we'd give it back (after the bowl game)," Kines said. Informed
that several Alabama players were seen with a stack of chips, a few turning
a profit at the Horseshoe Casino, Kines smiled: "I didn't hear that," Kines
said. "Three-fourths of our team is under 21 which shows you how young this
team is." Only about one-third of Oklahoma State's 90 or so players who made
the bowl trip are 21 or older, which is the legal age for gambling in
Louisiana. State law mandates two days in jail and a $500 fine for minors
who try to visit a casino. Oklahoma State coach Mike Gundy prohibited his
players from visiting casinos. "If our guys want to play poker or gamble,
they have the rest of their lives to do that," Gundy said. "I don't have
anything against it. But they're still on our time. "Our opinion is this
isn't a professional team. They're representing a university and they're
students. We're down here to enjoy each other and win a football game."

Oklahoma State linebacker Rodrick Johnson said he would resist the
temptation of sneaking out to a casino.

"All the guys were pumped because we knew casinos were here, and then they
told us we weren't allowed to go," Johnson said. "I guess it's for the best.
But I'd love to go to the casino one day and play a little poker. Blackjack
is my game."

Legislation would raise minimum gambling age

Rhode Island's minimum gambling age would be changed from 18 to 21 under
legislation that a freshman state lawmaker plans to introduce in the General
Assembly next week. "It's just a vice that might be with them for a long
time," Fellela, a mother of four, said Tuesday. "I think it's a way of
protecting them a little bit longer."
The bill would raise the minimum age required to gamble in the state's
licensed betting facilities, to buy state lottery tickets, and to bet at
racetracks or play Keno.
Larry Berman, a spokesman for House Speaker William Murphy, D-West Warwick,
said similar legislation was introduced in 2002 but failed to advance. He
said Fellela's bill would be formally introduced next week and then assigned
to a committee. Messages left at Lincoln Park and Newport Grand, the state's
two gambling parlors, were not immediately returned Tuesday. The Rhode
Island Lottery does not have a position on the bill, said lottery
spokeswoman Jennafer Rampone.

Israeli Police Crackdown Could Have Impact Worldwide

Israeli police have begun to crack down on internet gambling operators,
including those who run backgammon websites. Some of the more prominent
online gambling firms are run by Israelis including PokerStars, 888.com and
Titan Poker. While the majority of Israeli owned online gambling businesses
are based out of places like Gibraltar and The Isle of Man (similar to US
businessmen running internet gambling companies from Costa Rica and
Antigua), many of these websites contract employees within Israel for
marketing purposes. According to OnlineCasinoNews.com, reports suggested
that Major General Yohanan Danino, head of the Police Investigations and
Intelligence Unit, had notified Interlogic, which operates the Play 65
internet site, that both the police and the attorney general consider the
operation of a gambling site for backgammon games a criminal offence. The
official warned the company that it must cease to allow players on the site
to gamble real money on the results of the game, even though the game of
backgammon itself, or gambling with virtual money, is not prohibited.

Sheriff's dealings outlined in papers filed in gambling case

Documents filed in a criminal gambling case in Grady County indicate that
Sheriff Kieran McMullen and his wife paid more than $10,000 to the Elks
Lodge during the year preceding a September gambling raid. Helen McMullen
also received numerous payments ranging from $50 to $550 for winning on the
lodge's electronic gambling machines, records indicate. The documents are
among nearly 600 pages of discovery filed last week by District Attorney
Bret Burns. Attorneys for the McMullens and seven other law enforcement
officers facing criminal charges also received downloadable hard drives
showing 20 hours of video shot inside the lodge during a yearlong undercover
investigation. Kieran McMullen, the sheriff since 2003, faces felony charges
of conspiracy, conducting illegal gambling and engaging in illegal gambling
as a peace officer, along with two misdemeanors. The felonies carry
punishment of up to 10 years in prison upon conviction.
Facing the same charges are his wife, Helen, 51, who was a Chickasha police
lieutenant until her firing earlier this month; sheriff's deputy Robert
Clinton Cacy, 57; and Jerry Don Tyler, 51, who retired as a Chickasha police
officer after his indictment. Three Grady County deputies face charges of
engaging in illegal gambling, a felony, and neglect of duty, a misdemeanor.
A fourth faces only the misdemeanor neglect of duty charge. Earlier this
month, a judge denied a defense motion to remove Burns from the case. The
defendants and their attorneys have alleged Burns has a long-standing feud
with Kieran McMullen, 57, and that he frequented the Elks Lodge and
sometimes participated in the lodge's lottery drawings. The judge agreed to
consolidate the preliminary hearings for the McMullens, Cacy and Tyler. All
face hearings Jan. 5. The others' preliminary hearing will be Jan. 4. Burns
has claimed that Sheriff McMullen tipped off lodge members of an impending
inspection after an Alcoholic Beverage Laws Enforcement Commission agent
notified him that he was in Chickasha.

Lodge secretary Don Stephens conceded in a Sept. 12 interview that the
sheriff suggested turning off the machines before the inspection.

"Nothing was said like ABLE's coming...He said, uh, I think that uh, you
know, we need to make sure that everything is copasetic and that might
include um, just to be on the safe side, shut down the machine room,"
Stephens was quoted as saying.

Stephens, a state Department of Human Services employee, estimated the
machines produce $4,000 to $6,000 per month in revenue. The sheriff, who is
an Elks Lodge trustee, told investigators the lodge takes in $25,000 to
$30,000 per month from a membership of about 360 people.

Contacted Friday, Kieran McMullen said, "We haven't done anything wrong. The
truth will come out." He declined further comment, citing advice from his
attorney.

The sheriff told investigators he never has played the lodge's electronic
games. Several other lodge officials backed that claim.

Bank records filed in the case show Kieran and Helen McMullen wrote checks
totaling $10,453 between August 2005 and July. In many instances, Helen
McMullen wrote multiple checks of $100 on the same night, records show.

The court discovery also includes copies of several dozen slips for cash the
lodge paid out to winning gamblers in late June and July. It includes 14
payouts totaling $3,160 to Helen McMullen.

Legislation would raise RI minimum gambling age

A new bill being introduced in the General Assembly next week would raise
Rhode Island's minimum gambling age from 18 to 21. The bill is being
introduced by Deborah Fellela, a Johnston Democrat who was recently elected
to her first term. She says the legislation is aimed at helping teenagers
steer clear of gambling addiction and preventing them from wasting their
money. The bill would raise the minimum age required to gamble in the
state's licensed betting facilities, to buy state lottery tickets, and to
bet at racetracks or play Keno. Similar legislation failed when it was
introduced in the House in 2002.

Las Vegas Sands move in the online gambling market is a positive sign

Mitch Garber, Chief Executive of PartyGaming, said he was unfazed by the
threat of Las Vegas casino operators stepping into the online gambling
market in Europe. "It's a very positive sign for our business and should be
for our stock," he said. Garber also commented on PartyGaming's appetite for
mergers and acquisitions. "We will continue to pursue deals that are
accretive and can add either management or product expertise to any of our
operational lines, and we will be pushing further into new territories as a
main and key objective of M & A and in our organic business plan," he said.
Dresdner Kleinwort, PartyGaming's company broker, reduced the share price
target from 56p to 50p, while Swiss broker UBS upgraded its advice on the
online poker operator to 'neutral' from 'reduce'.

Wednesday, December 27, 2006

Holidays provide opportunity for gambling

While the holidays are supposed to be a festive time, they can often be
problematic for people who have a gambling addiction, researchers say.
"People gamble when they have time on their hands," said James Whelan, an
associate professor and psychologist who researches and treats problem
gambling at the University of Memphis. Though no known statistics link
gambling to the holidays, Whelan's colleague Andrew Meyers, said "people
often use vacation time to focus on gambling." Whelan and Meyers founded The
Institute for Gambling Education and Research in the University of Memphis
psychology department in 1998.
The program includes The Gambling Clinic, which offers five-session
treatment for problem gamblers for $150 with a promise of $75 back if the
patient returns in six months for a follow-up. The clinic, which is one of
two research-based clinics in the country, has treated more than 300
gamblers. Whelan said the clinic often sees an increase in business after
the holidays because "breaking bad habits is usually a priority for people
following the New Year." To help their patients do that, the researchers say
they use a method similar to one used in dieting. "The assumption is that
people can change and that they canregulate behaviors," Whelan said. "They
can learn to take control of their lives." Whether it's gambling or another
type of addiction, Whelan has outlined some strategies for taking control.
One of them, he said, involves looking for alternatives to the addiction.
For example, he told the story of a man who gambled while his wife was away.
To kill the urge, Whelan said the man turned his attention to reading books
because "this guy could read and be entertained." "Addictions can be
impossible to replace, but not impossible to find alternatives to," Whelan
said. New research from the University of Connecticut Health Center
inFarmington found that people who gamble are more likely to develop health
problems, such as heart and liver disease. The study surveyed 43,000
Americans and found that people who gamble at least five times a year showed
higher rates of liver disease, high blood pressure, and high heart rate and
chest pain caused by blocked arteries. It also found that gamblers had
increased rates of obesity and alcoholism and were more likely to smoke.

Happy Holidays To All Online Gambling Fans

Online Gambling Insider wishes everyone a very happy and prosperous festive
season. May all your dreams come true, may the reels stop in the right
places, the cards fall right and the right teams win when you want them
to....Merry Christmas and plain old happy holidays from all of us here at
Online Gambling Insider!
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you haven't played there, we recommend you click here to visit the All Slots
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Five Hanoians arrested in international gambling case

The group collected pools from gamblers in Vietnam and transferred the bets
to betting firms abroad to earn a discount. At weekends when European
football matches play, the men averagely received pools around VND100
million (US$6,250) a night. All payments were made via banking system. Three
men seen as organizers of the ring include leader Nguyen Van Phu, 34, and
two assistants Nguyen Bao Khanh, 35, and Pham Quoc Hung, 35. Two other
offenders are identified as Doan Tien Giang, 40, and Pham Dinh Phong, 27.
The ring began its illegal affairs early this year, police said. In related
news, police in Ho Chi Minh City busted a major Internet football betting
ring Sunday, arresting 14 bookmakers and seizing money worth over VND7
billion (US$437,500). The 14 offenders confessed they were bookies working
for a major gang with close connections with betting firms abroad.

Pro-gambling legislation expected to be a loser again in Austin

Despite a lot of gambling buzz around the Capitol, it's probably safe to bet
that the latest effort to give Texans more opportunities to lose their money
closer to home will fail. But the gamblers have friends in high places,
enough friends to make some gambling opponents nervous and the upcoming
legislative maneuvering interesting to watch. The Republican majority in the
Texas House has been a huge obstacle to gambling proposals in recent years
because the GOP officially opposes gambling. Add to that some Democratic
lawmakers who don't like it either, and a two-thirds vote for the necessary
constitutional amendment has been out of reach. Speaker Tom Craddick's
position on the latest push to either legalize video slot machines at
racetracks or establish wide-open casino gambling in Texas (the gamblers
aren't united on their goal yet) isn't clear. But the speaker's chief of
staff, Nancy Fisher, is a former lobbyist for dog track owners, and her
sister, Nora Del Bosque, is a lobbyist for Multimedia Games Inc., a major
provider of gaming devices. Bill Messer, one of Craddick's closest friends
in the lobby, also has represented dog track owners. Do those associations
mean Craddick (if he survives a challenge to his speakership) will actively
promote gambling legislation? Not necessarily. Are they enough to trouble
gambling opponents? You bet, particularly since the speaker also is
suggesting that he is at least open to more gambling. "I have always
believed that the issue is an important one that should get thorough review
and debate, so that all Texans can get a clear picture of exactly what is at
stake," he said in a statement issued through his office. Lt. Gov. David
Dewhurst "personally opposes the expansion of gambling in Texas," said
spokesman Rich Parsons. Less clear, however, is whether Dewhurst would
attempt to block a gambling vote in the Senate. Gov. Rick Perry, who angered
fellow Republicans by endorsing video slot machines at racetracks as part of
an unsuccessful school funding proposal in 2004, now opposes expanded
gambling.
"I think that with a record budget surplus looming, that some say will be
$15 billion or more, the governor is going to be hard-pressed to entertain
ideas about a massive new revenue source," spokesman Robert Black said. It
is interesting to note, though, that retiring state Sen. Ken Armbrister,
D-Victoria, who will be the governor's new chief lobbyist with the
Legislature, was a strong proponent of expanded gambling as a lawmaker. And
Mike Toomey, Perry's former chief of staff, will be a major force in the
pro-gambling push as a lobbyist for Sam Houston Race Park, the horse track
in Houston. But Perry, not Armbrister, will set the governor's legislative
priorities, Black noted. And he dismissed the notion that Toomey will have
any influence with Perry on gambling. "Just because a particular individual
who has known the governor for a long time proposes an idea doesn't mean the
governor is going to go along with it," Black said.

In previous unsuccessful efforts, advocates promoted expanded gambling as a
major source for new education funding. But that horse has been ridden to
death, mainly because the Texas Lottery never has lived up to the public's
expectations that it was going to forever put the public schools on Easy
Street.

This time, gamblers are proposing the state spend a huge chunk (as much as
$2 billion a year) of new gambling revenue on expanded health care for the
poor and maybe to help young people with college tuition payments.

Democratic Rep. Garnet Coleman, whose inner-city Houston residents are some
of the poorest people in Texas, is a strong advocate for more health care,
but he isn't buying the pitch.

More gambling, he said, would make "a few people very, very rich, and
they're not going to be my constituents."

High stakes when gambling on life insurance

Penny Mann was just 15 years old when her father died in an automobile
accident. William Tejes, 45, was the manager of the water-treatment plant in
South Beloit, Ill., and a school board member. He was on his way to Chicago
for work when he lost control of his truck on an unsealed, wet county road
and hit a tree. In addition to daughter Penny, Tejes left behind a wife and
a son in college. But he also left behind a good life insurance policy, one
that carried the stricken family financially. "We could just grieve him and
not ... worry about the financial stuff," Mann said. "I knew [my dad] had
done what he needed to get done." But insurance agents say many Americans
put off buying life insurance. Nearly a third have no coverage at all,
according to a survey by LIMRA International, an industry trade group. It's
not surprising why: Few people are eager to consider their own mortality.
Cost is another reason why many people avoid buying an individual policy.
Wage earners need insurance most when their families are young, precisely
the time when they're most strapped, said Don Thompson, a Prudential
Financial agent who worked with the Tejes family. That's why term insurance
is so popular. A $500,000 policy for a young, healthy nonsmoker can cost
less than $300 a year. Term insurance allows level payments for the length
of the contract, usually 10, 20 or 30 years. The drawback is, once the term
is up, there is no more insurance.
Although buying term young keeps the premiums low, trying to get a new term
policy in middle age can be much more expensive, especially if health
problems such as diabetes or heart disease have cropped up.

Permanent insurance avoids those problems, but it costs a lot more. Several
different varieties -- whole, universal and variable life -- all use
premiums to build a cash value that can be borrowed. Different types provide
choices such as flexible premiums, investment options and guaranteed
returns.

After her experience as a teenager, Mann is a big believer in life
insurance. She has a $100,000 term policy that she bought with her husband
when they got married.

The couple are divorced, but her ex-husband became diabetic and would now
find it difficult to get an affordable policy, Thompson said.

Gambling Zone in Primorje to Appear in 2009

State Duma adopted in the final reading the law on the organization of four
gambling zones in Russia, one of which will be organized in Primorje.
Pursuant to the law, the organization of gambling outlets outside such zones
is prohibited. In Primorje, the borders of the zone will be set by the
government in accordance with the proposal of the territorial
administration. The activities of gambling outlets outside the zones will be
terminated starting from July 1, 2009.

Tuesday, December 26, 2006

Don't be in a huge hurry to privatize Hoosier Lottery

It is hard to fault Indiana Gov. Mitch Daniels for wanting to improve
funding for higher education. Whether privatizing the Hoosier Lottery is the
way to accomplish that, however, remains to be seen. It's a complicated
proposal. Daniels wants to franchise the lottery for a fixed term. The
contractor would be licensed and regulated, just like casinos and
racetracks, and would continue current payment levels to the state. In
addition, the state would seek an up-front payment and a percentage of the
operator's revenue above a certain amount. The current funding levels for
police, fire and teachers' pensions as well as motor vehicle excise tax
replacement and state and local capital projects would continue. Sixty
percent of the amount paid up front would be placed in a permanent
endowment, with the interest paying for scholarships that could be forgiven
if the student stays in Indiana for three years after graduation. Of course,
there are many other strings attached to the scholarships. The remaining 40
percent would be used to attract outstanding faculty to public colleges and
universities in the state. Attracting top talent takes money. The plan has
distinct benefits, including improving the state's lagging educational
attainment level, improving the quality of education and keeping the
brightest high school graduates in Indiana. However, there are many
questions that need to be asked. The state's funding for higher education
hasn't increased at the robust level it ideally should. But the universities
and colleges have rapidly increased tuition and fees, citing reasons like
the need to attract top talent.
With this boost from the privatization of the Hoosier Lottery, what
guarantees will be made by the universities' trustees to hold tuition
increases low and for how long? Without a guarantee, there's no way to know
college costs will be controlled to help students ineligible for the
scholarships. And what does this outsourcing proposal mean for controlling
the expansion of gambling in Indiana? While the lottery would still be
regulated by the state, a pause to reflect on the state's already high
reliance on gambling as a revenue source is worthwhile. To what extent would
additional products and perhaps marketing efforts be regulated?

What would be the effect on the casino industry? What would be the effect on
society?

Why would a private company be able to operate the Hoosier Lottery more
efficiently than the state? And if it cannot, and if a gambling expansion is
not in the offing, why would privatization make sense?

There are many other questions that need to be addressed. That cannot easily
happen if the lottery privatization is rushed through the General Assembly
at the same hectic pace as the Indiana Toll Road privatization.

State's lottery may be going global

Recent developments indicate the state-run lottery may be headed toward
participation in a gigantic global online gaming system - with giant
jackpots - never envisioned by California voters, says a watchdog group. At
the same time, Republican Gov. Arnold Schwarzenegger - who appoints lottery
leaders - is on record in support of expanding the games to some unspecified
degree, as well as the revenue it brings public education. "We learned in
litigation last year \ that there are people at the lottery who believe
current law allows them to enter into international lottery games," Fred
Jones, an attorney for the California Coalition Against Gambling Expansion,
told lawmakers at a recent hearing. Lottery officials have said such a move
is not part of current plans. Even so, Democratic lawmakers are seeking to
rein in a lottery they feel is running amok after controversial decisions to
join the multi-state Mega Millions lotto game and approve the takeover of
California's lotto contractor, which is now indirectly controlled by two
Italian families. "They \ make decisions and we get to react to them," said
Sen. Dean Florez, a Fresno-area Democrat, who grilled lottery officials at
the hearing Florez said afterward he will introduce a bill that would
subject big changes in the state lottery to a vote of the Legislature. "We
ought to be in a more proactive situation," he said. The struggle over
control and oversight of the lottery is not new. It began with voter
approval of a state-run lottery in 1984. The outcome of the latest and
biggest surge in the battle, however, may well shape California's lottery
for years to come and determine whether it maintains the trust it says is
essential to its success. "What is important to us is the continued
integrity of the lottery," the agency's legal counsel, Donald Currier, told
lawmakers. The Lottery Act places integrity as second only to the sale of
tickets. At least one-third of the lottery's revenue goes to public
education and half is returned to players in prizes. Industry experts say
that without an untarnished image, gamblers lose trust in whether they have
a fair chance at winning lottery prizes, sales fall off, and schools don't
get the comparatively small but important stream of money they receive from
the games.
But lottery officials have consistently argued over the years that their
operation is unique - the only government entity set up solely to make
money. It's more like a business, they say, that needs independence from
legislative and political meddling to do its job. The tug of war has gone on
for years, until the lottery's recent approval of joining Mega Millions.

The move triggered an outcry from lawmakers and a lawsuit by a public-policy
advocacy group that resists gambling expansion, alleging the lottery had
exceeded its constitutional authority by extending a game outside the state.

A judge ordered a minor change in prize-claim periods to make Mega Millions
more fair to Californians.

But in the wake of the flap, the Schwarzenegger administration replaced many
of the lottery's top officials.

On the heels of that controversy, the new clash came over Italy-based
Lottomatica's purchase of U.S.-based GTECH, the lottery's on-line game
operator.

Despite questionable business practices by both firms, lottery officials
have assured critics that operations in California will continue unchanged.

The now foreign-owned GTECH is an industry giant, serving lotteries in 26
states and 50 countries.

"Our lottery has now taken on an international scope" and with it, the
possibility of global games, said Jones. Jones said voters over two decades
ago had no way of knowing where the lottery was going.

Police break up major gambling ring, seize over $400,000

After putting the gang under watch for a period, the police, assisted by
forces from the central police department, moved in with 100 officers,
simultaneously raiding 13 premises. They caught bookies taking billions of
dong in bets. The 14 offenders confessed they were bookies working for a
major gang with close connections with betting firms abroad. The police said
some of the arrested men were skilled at using computers and were in charge
of classifying and summing up bets before sending them abroad. The gang's
clients were from the city and nearby provinces. The 13 offices in districts
10, Binh Thanh, Phu Nhuan, and Thu Duc were all well-equipped with
high-speed Internet, LCD monitors, and laptops, the police said. They are
continuing with their investigations.

Video Gambling Is Making Comeback

Inside this arcade, with its dim lights and cigarette smoke, 70 game
machines are running non-stop with their brilliant screens and electronic
sounds. There are 15 customers in the arcade. However, each customer is
using four, five machines at a time, so none of the machines are idle.
Across a two-lane road, not even 20 meters away, is a police box that
belongs to the public safety division of a police station nearby in charge
of gambling arcade regulation duties. After the "Sea Story" sensation this
June, gambling arcades disappeared following the nationwide extensive
crackdown drive by the prosecution and the police. However, they are back
now, and they are thriving. As gambling arcades begin to make their
comeback, people who had lost large sums of money on games such as Sea Story
are again gathering at the arcades, hoping to win back what they lost.
Consequently, the arcade owners are doing extremely well to the point that
there aren't enough machines to go around. Most arcades do not have
signboards outside and have covered their windows with black vinyl so that
the inside cannot be seen. At another arcade around the same time in
Donam-dong, Seongbuk-gu, a female employee is explaining in detail to the
customers about various functions such as "foreshadowing" or "successive
hits." "If you see a white diamond in the middle, you get the highest score,
and if the screen becomes dark with sounds like water bubbles popping, it's
a "foreshadowing" of a big score that is soon to come. We have "successive
hits" as well. It's really not that different from Sea Story."
"Foreshadowing" and "successive hits" are standards for judging whether or
not the game is a gambling game, and are subject to regulation. The games
that have become widely popular after the Sea Story incident are "Diamond"
and "Iceland Adventure." The titles and screens are slightly different but
the game process is nearly identical to Sea Story. Illegal exchanges of gift
certificates used as prizes into cash are also still going on. At an arcade
near Yeongdeungpo Station, a small change booth is located right next to the
entrance of the arcade. There, gift certificates with a face value of 5,000
won were being exchanged for 4,500 won in cash.

Most of the people who frequent these arcades are small business owners in
their 30s to 50s, and people who do manual labor. A few matrons in their 40s
or 50s could also be seen. Most of them said, "I've come to win back the
money I lost playing Sea Story."

A man we met in an arcade in Bongcheon-dong, Gwanak-gu, who said he was in
his 40s and did manual labor, said, "I lost 10 million won playing Sea
Story. I've come back in hopes of winning back my capital."

Following the recent reopening of such gambling arcades, the prosecution and
police have decided to extend the crackdown period, which had been scheduled
to end by December 31, until April 28, 2007, when the gift certificate
system will be abolished.

Gulf Coast Casinos Draw Holiday Gamblers

The only sign of Christmas on the casino floor is the poker dealer in the
Santa hat, and Darren White is glad for that: the subcontractor from Georgia
didn't come here to be reminded of the holidays, or anything, for that
matter, outside these flashy, noisy walls. He came for the distraction. And
Boomtown Casino in suburban New Orleans, like other casinos along the Gulf
Coast of Louisiana and Mississippi, is glad to provide it. Casinos, some of
which emerged from last year's damaging hurricanes as bigger, better
properties, are trying a range of tactics not only to draw players in _ and
make them feel at ease _ but also to get an edge in an increasingly
competitive marketplace. Heading into what is traditionally one of
industry's busiest weeks, halls are decked with decorations, both tasteful
and gaudy, holiday music is in rotation and casinos are trumpeting
traditional giveaways, dance parties and invitation-only soirees to bring in
players. "It's been a hell of a year," Boomtown's general manager, Dave
Williams, said in an interview at the casino in Harvey, La. This time last
year, many of the casinos, particularly in Mississippi, had not yet
reopened. Those that had, like Boomtown, had all the business they could
handle: construction workers here for the post-hurricane reconstruction
played Christmas Day, and folks in line waited, six-wide, to board the
riverboat on New Year's Eve, Williams said. Riverboat gambling revenue in
Louisiana hit a post-Katrina peak last December of $177.3 million, up from
$124.7 million in December 2004, said Wade Duty, executive director of the
Louisiana Casino Association. Since then, and as more casinos have come back
online, revenues have dipped nearer to pre-storm levels, he said. Meanwhile
in Mississippi, where there's an all-out effort to market Gulf Coast casinos
with hotels and other amenities as tourist destinations, gross revenue is
seemingly on pace to top last year, in spite of dips recorded this fall by
that state's tax commission. There are also two fewer casinos open now on
the Gulf Coast than before the hurricanes, 10 versus 12, said Becky Clark, a
staff officer with the Mississippi Gaming Commission. Casino operators are
confident heading into 2007, when further industry expansion is set to help
fill what some managers see as an almost insatiable appetite for the kind of
escapism _ from gambling and shopping to pampering _ casinos are peddling.
Boomtown is eyeing both a new gambling boat and hotel as part of its
proposed, $145 million expansion. One more casino also is set to open on
Mississippi's Gulf Coast sometime next year, Clark said. Casinos hope to
draw in crowds this coming week, building from low-key Christmas buffet
specials to pull-the-stops New Year's parties, meant as much to hail the
industry's rebirth as to draw in new customers with music and drinks and
to-be-announced promotions. Some casino hotels are completely booked leading
to New Year's Day.

"New Year's Eve sets the tone for your property," said Kerry Andersen, a
spokeswoman for southwest Louisiana's L'Auberge Du Lac casino, near the
Texas border.

This year, the offerings will include, among other things, an
invitation-only show with The Temptations and The Four Tops and a dinner.
The night tends to be the casino's biggest of the year, she said.

"You want to have the Golden Ticket," Andersen said, "the party everyone
wants to be at."

That's true nationwide, said Andy Holtmann, editor of the Casino Journal, a
trade publication. "For a lot of casinos, it's kind of a necessity," he said
of a New Year's Eve bash. "You have to take some marketing risks here," and
aim to set the casino apart from the competition, he said.

Some Gulf Coast casinos are preparing for an influx of customers as early as
Christmas Eve, a traditionally quiet day, and certainly by Christmas Day.
Many places are decorated, if not on the playing floor, where Christmas
lights would almost surely be dimmed by the flashing lights of slot machines
anyway. Visitors to Boomtown are greeted by faux alligators pulling Santa
and his sleigh.

For many families, cooped up in close quarters such as a federally issued
trailers, "It's almost like a savior thing," said Beverly Martin, executive
director of the Mississippi Casino Operators Association. "'The casino's
open, let's go down there, because there's a limit on what we can do here.'"

Higher tax for gambling activities in Bulgaria

That daily game of toto might just become 10 per cent more expensive.
Organiser of chance events, toto, lotto and betting games will pay a 10 per
cent income tax on the outcome of sport competitions and chance events,
Bulgaria's Parliament resolved, giving final approval to the new Corporate
Income Tax Act. The National Assembly budget and finance committee proposed
that the rate of this tax be eight per cent, but the Cabinet, which moved
the bill, proposed a 10 per cent tax rate for all gambling activities,
Bulgarian news agency BTA reported on December 18. Deputy Finance Minister
Georgi Kadiev told Parliament that about 25 million leva were collected in
income tax from gambling organisers in 2005. A reduction of the tax rate to
eight per cent for all types of gambling activities would lead to a 2.5
million leva loss for the exchequer, while a 10 per cent rate for all such
activities would result in an extra budget revenue of 5.5 million leva, two
million of which would come from the Bulgarian sport totalisator, leaving a
net revenue of 3.5 million leva, Kadiev said. The rate of tax on income from
organised lotteries, raffles, bingo and keno games will be 12 per cent, the
MPs resolved. The same rate will apply to income from organised games of
chance where the value of the bet consists of an increased charge for a
telephone or other telecommunications link. Parliament also set taxes on
organised games of chance played on gambling devices. Meanwhile, an entirely
new Value Added Tax (VAT) Act and regulations for its application were voted
on in view of Bulgaria's European Union membership. The VAT rate remains 20
per cent and will apply to all realised goods and services on Bulgaria's
territory, excluding the tax-exempt ones. After Bulgaria's EU accession, the
mandatory threshold for VAT registration will stay unchanged at 50 000 leva.
Some of the existing provisions in the current VAT Act are also present in
the newly adopted law. New names have been introduced for many of the
concepts, such as: place of delivery, tax event, internal delivery in the
community and internal acquisition within the community.

Bulgarians are already talking about taxable deals and zero-rate taxable
deals. VAT shall be charged on almost all goods and services that are bought
and sold within the EU.

However, a number of countries have accepted, in addition to the standard
VAT rate, a reduced tax for more sensitive groups of commodities.

Therefore, Bulgarian firms trading with EU companies should be aware of the
procedures and rates followed by other EU members.

The VAT rate cannot be lower than 15 per cent, while reduced tax cannot be
lower than five per cent, according to EU legislation. On goods and services
exported from the EU, there will be no VAT charged.

VAT is calculated on the imported commodities and services to equalise their
value with that in the community.

VAT is levied on goods imported from third countries to any EU member state,
from which moment they become internal for the community and are VAT exempt
when moving within EU territory. The new VAT Act eliminates the customs
offices at Bulgaria's borders with EU countries. From January 1, they will
only function in case of export to or import from third countries.

Two new concepts will be introduced for the trade between EU firms
registered under VAT - internal delivery in the community that will
supersede the export, and internal acquisition within the community that
will supersede the import. In fact, that means that when a Bulgarian company
supplies commodities to another country and the recipient is also registered
under VAT, that delivery shall not be treated as export any more but as
internal delivery, taxable by a zero VAT rate. In this case the Bulgarian
supplier will have to issue an invoice without charging VAT. The tax will be
calculated by the recipient in compliance with the efficient rate in the
country for which the goods are intended.

The situation will be the same in the reverse example. The European supplier
will effect an internal delivery in the community without calculating VAT
and the Bulgarian company that will receive it will charge VAT in compliance
with the efficient VAT rate in this country.

But if a firm registered under VAT supplies commodities to another country
and the recipient is not registered under VAT, the regime of internal
deliveries in the community and acquisitions cannot be applied.

Distant sale will be then the case, i.e., the supplier sells the commodity
with VAT calculated according to the rate efficient in the country of its
registration.

When a firm from the EU effects supplies to Bulgarian companies, which are
not registered under VAT and for each one of the previous and the current
years the turnover of distant sales exceeds 70 000 leva, that company will
have to register under the VAT Act in Bulgaria.

The new VAT Act maintains the threshold for obligatory registration - annual
turnover of 50 000 leva, including in it already taxable by zero-rate
deliveries.

The possibility for voluntary registration, irrespective of the size of
turnover remains, i.e., non-registered persons engaged in economic
activities who did not have grounds for that by the end of 2006, will be
able to register under the VAT Act as of January 1 2007.

After Bulgaria's EU accession, all companies registered under VAT will be
given a new unique identification number that will replace the existing VAT
numbers. For Bulgarian companies it will be formed as BG + BULSTAT of each
company.

Monday, December 25, 2006

Xmas brings gambling dangers

Parents are being urged to think about the gift of time, rather than
materialistic items this Christmas. The Problem Gambling Association says it
is very common for people to gamble in an attempt to get themselves enough
money for presents but they often end up in a worse position. Youth Services
Project team Leader Lauren Cundall says many people underestimate how
valuable time spent together is. She says things such as reading stories and
parents talking about how they spent Christmas as a child can mean so much
more than the latest ipod or CD. Ms Cundall says homemade vouchers for
something like a day at the beach, is a great idea which could create
memories to last a lifetime.

The Rich 100: We call

These may be dark days for the online gambling business, but you would never
know that from talking to Calvin Ayre, the founder and president of Bodog
Entertainment Group, the online sports book and casino. A recent crackdown
on Internet gambling by U.S. regulators and lawmakers has seen several
online casino executives thrown in jail and has plunged the industry into
chaos. But none of that fazes Ayre, the 45-year old Saskatchewan-born
entrepreneur who turned Bodog into one of the most recognizable Internet
gambling brands. "The power of our model is now being realized as we are
witnessing a surge in popularity in all of our digital entertainment
properties - including gaming - and we don't see this changing," he said in
an e-mail interview from Bodog's headquarters in Antigua. Both Bodog and
Ayre have been flying high for the past year. In addition to growing its
gambling business, the company has continued moves into mainstream
entertainment with a record label, a poker TV show that aired on the Fox
Sports Network in the U.S., and Bodog Fight, a pay-per-view extreme fighting
competition. Ayre has also graced the covers of both this magazine and
Forbes, where he proclaimed himself one of the latest additions to the
exclusive billionaire's club. Of course, that boast was based on the value
of Bodog before the U.S. authorities began cracking down and before the U.S.
government enacted the Unlawful Internet Gambling Enforcement Act in
September, effectively banning Internet gambling by making it illegal for
U.S. financial institutions to process the Internet wagers of American
citizens. While some have called the new legislation unenforceable and
riddled with loopholes, it has been enough to convince many Internet gaming
companies and investors to fold their hands, sending the shares of publicly
traded gambling operations into free fall. On Oct. 2, the first day of
trading after the passage of the new U.S. law, shares of Gibraltar-based
Party Gaming PLC - which runs PartyPoker.com and trades on the London Stock
Exchange - plummeted from US$2.08 to US$0.87 per share. On the same day, 888
Holdings PLC shares dropped from US$2.86 to US$2.11, while Toronto-based
Cryptologic (TSX: CRY), which produces software for the online gambling
industry and recently announced it will be moving its headquarters to
Ireland, fell from $24.63 to $19. Whether online gambling is illegal in the
U.S. boils down to a matter of interpretation. Prosecutors maintain that
using the phone - or the Internet - to take bets from American gamblers is
illegal. As a result, most publicly traded companies have said they will no
longer do business in the lucrative U.S. market. But Ayre - and other
private gaming companies - maintain that U.S. authorities have no
jurisdiction over their business, since they operate in countries where
online gambling is legal. What isn't in dispute is how devastating
abandoning the U.S. market will be to online casinos. Party Gaming, for
instance, reported that in the first six months of 2006, more than US$512
million, or 77% of its US$661 million in revenue, came from U.S. wagers.
Gibraltar-based 888 Holdings PLC, operators of Casino on Net - one of the
largest online casinos - reported that during the same period more than 52%
of its US$165.3 million in revenue came from Americans. Bodog has no plans
to abandon the U.S. As a private company, it doesn't have to reveal its
earnings, but Ayre says last year it processed a total of about US$7.3
billion in wagers - more than three times the volume from 2004. That
translated into revenue of about US$210 million, with about a 26% margin to
the bottom line. Ayre claims Bodog's revenues are on track to reach about
$300 million this year. Before the crackdown, revenues like that would have
made Bodog worth billions. During the height of investors' love affair with
online gaming, many large Internet casinos were trading at 20 to 25 times
their earnings, says Spencer Churchill, an analyst with Toronto-based Clarus
Securities Inc. Now there are really no baseline metrics to value online
gaming. "You really have to look at each company on a case-by-case basis,
looking at their exposure to the U.S. market and the potential for growth in
other markets," he says.
How much Internet gaming companies are worth is now anyone's guess.
London-based Sportingbet PLC - operators of ParadisePoker.com, one of the
most popular online poker sites - announced in October that it was selling
its U.S. business for a mere US$1 to a private company in Antigua. The
difficulty valuing online gaming companies right now is one of the main
reasons Ayre is not on our own Rich 100 this year. But the fact that the
Internet gambling sector is in such disarray, doesn't mean that he isn't
rich - or that the online gaming business is not profitable.

Ayre still refers to himself as a billionaire on the Bodog website and in
the company's promotional materials. "In light of the recent growth in all
of our digital entertainment properties, including gaming, music and
television, I would now say that a conservative valuation of our company
would be well over one billion," he says.

Pinnacle owns Admiral

Pinnacle Entertainment Inc. said Thursday that it has completed its purchase
of President Riverboat Casino-Missouri Inc., which owns the President Casino
on the Admiral. Pinnacle said in a statement that the "effective purchase
price" was about $45.7 million, subject to adjustments. The President Casino
is situated on the downtown riverfront. It is within walking distance of Las
Vegas-based Pinnacle's Lumière Place development, which is expected to cost
about $1 billion. That development, which is under construction and is
scheduled to open next year, will include a casino, luxury hotel, spa,
business center, restaurants and convention space.

Nine charged with felonies after last week's gambling sting

Nine people arrested on gambling charges during a Dec. 15 raid by Fort Wayne
Police and Indiana Excise Police were formally charged with felonies in
Allen Superior Court on Thursday. According to police reports, undercover
police officers raided three businesses, an unmarked suite in Quimby Village
and a building next to The Venice Restaurant on Goshen Road. They seized
more than 50 gaming machines - including Cherry Masters - and more than
$21,000 cash. Charged with professional gambling were: Dessie A. Doty, 47;
Tina L. Muncie, 29; Danny L. Wasson, 42; Deloria J. Mitchell (a.k.a. Lori
Sanders), 51; Patricia E. Carpenter, 62; Todd M. Perkins, 37; and Sandra K.
Graf, 57. Steven A. Larimore, 55, and Ronald G. Huston, 56, were arrested at
Steve's Pool and Games in New Haven. They've been charged with promoting
professional gambling.

Gambling on restraint

"The cease-fire between Israel and the Palestinians in Gaza appears to be
holding even after militants fired rockets into Israeli territory." This was
how the BBC's Radio Four described the situation around the Gaza Strip a
couple of weeks ago; in other words, the new definition of a cease-fire is
one in which the Palestinians continue firing Kassams while the IDF holds
its fire. This quote was originally noted by Charles Moore in The Spectator
magazine, but while he used it to pillory the BBC, it is now obvious that it
is also the way that the Israeli leadership understands the cease-fire.
Prime Minister Ehud Olmert, with the backing of Foreign Minister Tzipi
Livni, who in recent months has been receiving a much wider place in the
national decision-making process, has decided - despite the opposition of
Defense Minister Amir Peretz, most of the other ministers and the IDF's high
command - that Israel can afford to absorb two or three Kassams a day
falling in the western Negev, in return for a general feeling of relative
calm and a favorable international climate. Olmert's calculation is that the
firings are mainly haphazard, with little chance of hitting a civilian
target and causing major damage. Most of the rockets on Thursday fell within
the Palestinian territory, and at this stage, it is better to keep the IDF
on a leash. He's being helped also by the mainstream press which has been
content over the last few weeks to relegate the Kassams to the back pages;
Benny Sela and the murder of Tair Rada are sexier stories. The feeling among
Israel's diplomatic corps is that this is a period of grace for the country.
The major enemies - Syria, Hizbullah and Iran - are beginning to suffer from
international isolation and all that the world is currently demanding of
Israel is that it lends Abu Mazen a helping hand. The argument is that the
Kassams are being fired by Islamic Jihad and other groups opposed to the
Palestinian president and retaliating with a large-scale attack will just be
playing into their hands. Israel apparently has more to gain by staying put.
Much better not to cause any new problems for George Bush, who is busy right
now burying the Baker-Hamilton report's recommendations and gearing up for
the US's last big push in Iraq. If we manage to keep our backyard quiet,
there's also a chance that the powers-that-be will finally get serious about
the Iranian nuclear program. All this seems to make perfect realpolitik
sense, especially since the IDF hasn't achieved that great a track record in
dealing with the Kassam threat, even when it was allowed to roam and fire at
will. Every resource was used - manned and unmanned aircraft, artillery,
tanks and special forces, backed up by every available intelligence asset.
Hundreds of terrorists were killed, but the firings didn't stop and Israel's
image suffered when the international media preferred to focus on civilians
killed in Beit Hanun rather than on the people of Sderot living under
constant bombardment.

The only problem is that we tried this policy before and it blew up in our
faces. Ten months of restraint around Gaza ended with the capture of Gilad
Shalit in June.

Two weeks later, six years of ostensible calm on the Lebanese border were
ended abruptly by the Hizbullah attack at Zarit, the death of eight
soldiers, the abduction of Eldad Regev and Ehud Goldwasser to an as yet
unknown fate and the rest of the summer's disasters.

Not retaliating might create the illusion of quiet for the majority of the
local population and a few temporary points in the diplomatic arena, but in
the rough neighborhood we live in, it's merely interpreted as a sign of
weakness. The Kassams might be mainly a demonstration of opposition to Abu
Mazen's weak attempts to establish control, but the longer they're allowed
to get away with it, others are going to take advantage and join in.

Bettman gambling with NHL's future

It may be early to judge, but Gary Bettman might have really done it this
time. You never know with the NHL owners of course, but this latest fiasco
over the Pittsburgh Penguins just might be the one clanger that will open
their eyes to who is running their league. Research in Motion head Jim
Balsillie was all set to pay a monstrous amount of money to buy a team with
very low revenues, even though if everything went well and the rink had been
built by the casino group, it would have been several years before he saw
any type of return. Here was a guy so keen to buy a team that he was going
to put up $175 million US for a franchise that has exceptional players
playing cheaply right now, but with a collective bargaining agreement in
place whereby he would have virtually no chance to hang onto all those
players once they reach their free-agent freedom date. And what happens?
Bettman steps in at the last minute and puts 24 conditions on the deal, the
most onerous of the bunch being that he couldn't move the franchise for at
least seven years after competition of the sale no matter what the outcome
of the arena situation in Pittsburgh. Apparently he was terrified Balsillie
was going to move the team to Kitchener, where a new rink is planned.
According to Balsillie, these conditions came right out of the blue and were
introduced at the last minute and as such he walked away from a deal that
would have raised the value of virtually every franchise in the NHL. If the
Penguins were worth $175 million, how much are the Rangers, Wings, Avalanche
and Canucks worth? And Penguins owner/front man Mario Lemieux, who was
finally looking at his dream of putting hockey behind him for good and
getting his money out of what he never wanted to be involved in, saw it all
blow up in his face. No matter what happened after the sale, Mario would
have been a good guy who fought the good fight to keep the team in
Pittsburgh. If it moved, it would have been the ugly Canadian owner's fault,
not his. He would have had his money and been the town hero. Now he's
looking at still trying to peddle this team elsewhere, likely for a lot less
money, all because Bettman wasn't confident of being able to discourage
Balsillie from moving later in the process. And Lemieux is so stunned, he's
blaming the guy who wanted to pay him all that money for what happened,
blaming Balsillie for walking away from the deal.

At what point do the owners figure out they might be further ahead with a
commissioner who knows something about the game and the degree to which it's
still suffering under the dominance of these coaches, 70 per cent of whom
insist on playing some sort of roving trap whereby nobody even attempts to
score five-on-five? They just hang around and wait for penalties which come
in droves courtesy of a sea of officials who appear to be paid by the call.

At what point do the owners notice that their fan base is disappearing for
very good reason? The game is almost totally lacking action and emotion, an
entertaining game a surprise instead of the norm.

Sunday, December 24, 2006

State police gambling sting

State police investigators say a retired trooper has turned to a life of
crime. KATC's David D'aquin was there when the former enforcer was read his
rights. CJ Melancon was a long time Louisiana state trooper. Now police say
he's running a gambling operation used by more than 1,000 people per week.
He's accused of money laundering and felony gambling. He and his son Shannon
Léger own a downtown Lafayette bar. His son is accused of felony gambling as
well. In all twelve people were arrested Thursday. Carlos Palma and his wife
are accused of running a separate organization. Norris Léger and his wife
Pamela are accused of running yet another gambling organization along with
delinquency of a minor. The Legers, the Palmas and the Melancons are all
from Rayne and are all accused of having their own gambling operations. The
others who were arrested are accused of actually taking the bets for them.
State police arrested folks in Rayne and Lafayette Thursday and all were
either booked into the Acadia parish jail, or the Lafayette parish jail.
State police had been investigating for the past year. "The bottom line is
when the law is broken; we have an obligation not only to ourselves as an
agency, but to the people of Louisiana to enforce those laws. That is what
we did here." The investigation is still open and state police expect to
arrest several more people as this operation continues.

Philadelphia wins approval for casino gambling

Pennsylvania gambling regulators cleared the way Wednesday for Philadelphia
to become the nation's largest city with a casino, while rejecting Donald
Trump's bid for a slot-machine parlor and plans for another casino near the
Gettysburg battlefield. The Pennsylvania Gaming Control Board chose from
among 13 groups of casino giants, politically connected investors,
celebrities and nationally known developers when it awarded five licenses
for standalone slot parlors.
Philadelphia will surpass Detroit as the largest U.S. city with casinos.
Winners include groups led by billionaire Chicago-based developer Neil G.
Bluhm and the Connecticut-based Mashantucket Pequot Tribal Nation; each
plans to build on the city's riverfront. "We're thrilled and delighted.
We're very excited and we're going to build a great project," Bluhm said.
"We want to do something really special here." The gaming board rejected an
application by Trump's casino company for a casino in northwest
Philadelphia. And it rejected a proposal by Isle of Capri Casinos Inc. to
build a gaming house in Pittsburgh. The board awarded 11 permanent slots
licenses, each allowing as many as 5,000 machines. Six licenses are
earmarked for the state's horse-racing tracks. So far, two racetracks --
Mohegan Sun at Pocono Downs and Philadelphia Park -- have opened slot
parlors under conditional licenses, and racetracks in Chester and near Erie
are expected to open slot parlors in the next two months. Gov. Ed Rendell
rejuvenated a 25-year drive to legalize casino-style gambling in
Pennsylvania by promising that slot revenues will help reduce property taxes
and revive the state's declining horse-racing industry. The law passed in
2004 authorized up to 61,000 slot machines at 14 sites.

Italy Set To Hand Out Online Gambling Licenses

The USA might have tried to ban online gambling simply to regulate it down
the line, at least that's what Italy is in the process of doing. The latest
news from that government is a plan to auction off as many as 17,000
gambling licenses including permits for online casinos and poker rooms. The
start of 2007 will mark a complete turnaround by the Italian administration
on online gambling. The biggest European gambling firms are lining up to bid
for licenses in this rapidly growing sector of the market. Coral have an
Italian-language sports betting website up and running and also have
established a B&M presence in Genoa, while William Hill is partnering up
with Codere in Spain and is known to be very interested in the prospect of
moving into Italy. Finally Ladbrokes has already done a deal with Pianeta
Scommesse several months ago and followed that up in November with the
purchase of three betting shops in Turin (home of Juventus). There is a
split down the middle in the EU when it comes to online gambling. In the one
corner we have the United Kingdom now joined by Italy, Belgium, and Spain as
proponents of the regulation of the industry. On the other side with rapidly
diminishing support we find Germany and France (what a surprise for anyone
with a knowledge of European history) with a reactionary stance of local
protectionism. Our pick? The Allies will win this one as well - besting the
Hun and his Froggy pals on the battlefield of free trade! The small European
nations will fall into line once the big guns have decided which way to go
and sooner rather than later Europe will be the global leader in online
gambling.

Gambling with Freedom

Your after-tax income belongs to you. You are free to spend it, invest it,
waste it, burn it, or tithe it--and none of that is any politicians'
business. But if some lawmakers have their way, soon you won't be able to
gamble your money away on the Internet. In October, the Senate passed a bill
enhancing port security, and attached to the bill is a title banning
acceptance of credit cards or other payment instruments to process gambling
transactions. President George W. Bush signed the bill into law on October
13. Earlier versions of the anti-gambling legislation would have required
banks and Internet service providers to essentially spy on their customers,
sifting through all financial transactions. Unsurprisingly, credit card
companies didn't want to be deputized as online hall monitors, responsible
for ensuring that outfits for which they process card services remain
gambling-free. Thus, the latest version of the bill no longer obliges credit
card companies and banks to identify firms engaged in gambling. Instead, the
Treasury Department and Federal Reserve would be required to collect a list
of online gambling Web sites within 270 days. After that, banks and credit
card companies would be prohibited from making payments to companies on the
list. Dressed Up as a Security Issue
This new approach might address privacy concerns, but it runs roughshod over
individual freedom and fails to address another argument by the
legislation's
advocates. As Rep. Jim Leach (R-Iowa), argues: "Internet gambling is a
national security concern because it can be used to launder money, evade
taxes, and finance criminal and terrorist activities." In the post-September
11, 2001 world, politicians should be concerned about shady financial
goings-on on the Internet. But legislation that enjoins cumbersome
government bureaucracies to determine which companies are officially
considered gambling operators will punish legitimate online businesses. Just
as there have been plenty of false positive identifications in the federal
airline no-fly list, it is highly probable some non-gambling sites will end
up on the government's list. Meanwhile, the measure practically invites
phony, fraudulent operations, whether or not credit card firms work with
them--there is more to the Internet than above-board Web sites, and lots of
places to hide in cyberspace--and new gambling sites are sure to pop up as
soon as the government lists the old ones.

And even if the government were to correctly identify all gambling sites,
punters could still bet using credit cards from foreign banks and other
non-U.S.-based payment methods.

Gambling Web sites are best monitored not by regulators but by online
gamblers themselves. Consumers have the incentive to look for endorsements
and seals of approval of the businesses with which they transact, and to
avoid fly-by-night operators. Most people who choose gambling as a pastime
realize the odds of winning are long and that the house usually wins. And
while gambling is a problem for some, others enjoy the challenge or just
think it's fun, and are able to contain addictive impulses.

Legislation is notoriously slippery. What constitutes "gambling" is often in
the eye of the beholder or legislator. Earlier versions of the bill had
exempted such activities as fantasy sports. Even investing can be a "gamble"
in the sense that "the opportunity to win is predominantly subject to
chance," as the legislation defined "gambling."


'Principle of Autonomy'

Apparently, only some gambling is bad. One gets the impression the real
motive behind the legislation is not to protect against crime or terrorism
but to legislate behavior. As Rep. Barney Frank (D-MA) noted in opposing
earlier anti-gambling legislation: "If an adult in this country, with his or
her own money, wants to engage in an activity that harms no one, how dare we
prohibit it. ... The fundamental principle of the autonomy of the individual
is at stake."

Government should not turn vices into crimes--even granting the notion that
gambling is a vice, which is questionable in the context of today's
Congress. Perhaps pork barrel spending is a more serious vice, one to which
Congress should direct its attention. How significant are gambling losses,
really, when compared to wasteful government spending for which citizens are
forced to foot the bill?

Once we travel down the road of regulating behavior on the Internet, there
is essentially no limit to government's ability to regulate behavior
anywhere. Washington should mind the federal budget casino instead.

DA Walker orders video gambling machines closed

District Attorney Spence Walker has put operators of "sweepstakes" video
gambling machines on notice that they should shut the machines down
immediately. The Alabama Supreme Court ruled Dec. 1 that the devices at a
greyhound dog track in Birmingham are illegal gambling devices, no different
than slot machines. The 8-0 ruling reversed a ruling by a Jefferson County
circuit judge who said the Birmingham machines were not a lottery and did
not involve the use of slot machines or gambling devices. District attorneys
and lawmen around the state are interpreting the ruling as having statewide
affect. In the First Judicial Circuit of Choctaw, Clarke and Washington
counties the machines seem more numerous in Choctaw where they are located
in convenience stores and a gaming room had been set up in the old Lisman
school, owned by the town. It has recently closed. Walker's notice says that
operations are to cease immediately "upon the managers'/ owners'/operators'
receipt of this notice." Further, "failure to cease operations of these
machines immediately will result in the arrest of those having
responsibility for their use. Any such machines remaining in the premises
after the passage of one hour after receipt of this notice by any of the
above-named parties will be confiscated, condemned and further appropriate
criminal action may be taken."

Court Rejects Sportwetten Gera Complaint Against Ban

Germany's highest court dismissed a complaint by Internet sports betting
company Sportwetten Gera GmbH against a ban imposed by the state of
Saxony-Anhalt two years ago. ``Sportwetten Gera wanted the immediate ban to
be abolished,'' Rainer Nitzschke, director of the German association of
private sports betting companies, said by telephone today. ``This didn't
happen. Customers from Saxony-Anhalt will therefore be excluded from the
company's services.'' Germany's Federal Constitutional Court rejected the
complaint because the company didn't suffer a ``major disadvantage'' as a
result of the immediate ban, according to a statement published on the
court's Web site today. The complaint was filed after Saxony-Anhalt's
government ordered the company to stop accepting wagers in the region, it
said. The court on March 28 ruled that the German states can uphold their
monopoly on the country's gambling industry until the end of next year.
After that time, they will have to boost efforts to fight gambling
addiction. State governments have already banned Bwin Interactive
Entertainment AG, an Austrian Internet sports betting company, from
operating and are boycotting Fluxx AG, an Internet lottery agent, to drive
out competition.

Saturday, December 23, 2006

Police seize gambling machines

Three separate gambling operations in Selma were taken down simultaneously
as police made five arrests and seized 17 video gaming machines, each valued
at $8,000. A sixth person is wanted by authorities, who police said ran an
illegal gambling and bootleg liquor operation. There were five machines
seized at the Lawrence St. Grocery in Selma on Wednesday. Marcus Hopkins,
53, was arrested and jailed on $3,000 bond, police said. Six gaming machines
were seized at The Variety Shop. Joe Ford, 62, and Gidget Lewis, 45, were
charged and jailed on $6,000 bond. The third location was a house where
police seized six gaming machines seized. They arrested Corey Horton, 23,
and Georgia Carter, 36. Horton was jailed on $500 bond and Carter on $4,000.

Moscow Sends Gambling Industry a Bill

The Moscow City Duma amended a law on Thursday that manages gambling
industry, making requirements for owners of casinos and slot-machine halls
stricter. The gambling industry is unfazed by the changes as no laws can
surpass the new federal law which nearly bans gambling in Russia in 2009.
The Moscow legislature passed the city law a day after the State Duma passed
a similar federal blueprint, moving all casinos to four gambling havens in
2009 and laying down requirements for the operation of casinos and
slot-machine halls until this time. Moscow has made the federal norms even
harsher, binding city casinos to have the area of at least 3,000 sq. meters
(800 sq. meters in the federal law) and no less than 200 sq. meters for game
arcades (100 sq. meters in the Russian law). A casino in Moscow must have at
least 30 gaming tables and slot-machine halls must have at least 60
machines. Currently 32 casinos and some 140 gambling halls in Moscow meet
these requirements, Moscow Deputy Mayor Iosif Ordzhonikidze says. The
official noted that the city budget would not suffer after some gambling
establishments are closed down because most small gambling firms evade tax
paying. Lavrentiy Gubin from Storm International which operates slot-machine
halls says that "requirements of Moscow authorities are quite feasible,
though the minimal area for casinos is probably set too high." Gambling
companies are more worried about the margin of net assets for their
companies. "Not all of the 32 casinos will be able to drive up their assets
to $23 million," Gubin noted.
Boris Belotserkovsky, co-owner of Ritzio Entertainment Group, estimates that
the Moscow law will halve the number of casinos in the city and will leave
only 25 percent of slot-machine halls working.

Italy to Auction 17,000 Online Poker & Gambling Licenses

Seen as yet another indicator towards liberalization of gambling
restrictions in Europe, the Italian government has announced that it will
auction off 17,000 licenses for betting shops, kiosks, casinos as well as
for online casinos, poker rooms and sportsbooks. This is in preparation for
January 1st, when all Italians will be able to legally play online poker. In
spite of not being sure what the potential for the new Italian market is,
initial reports say that Betfair, William Hill and Ladbrokes are poised to
grab their share of the auctioned licenses. In fact, the European Union
Commission just Dec. 20 cleared William Hill's proposed joint venture with
Codere to enter the Italian gambling market. This enables them to exploit
betting licences being issued by the Italian regulatory authorities in the
new year.
Europe's 50 billion euro (approximately $65 billion US dollar or 130 billion
pound) market has become even more critical to the gambling sector since the
Unlawful Internet Gambling Enforcement Act (UIGEA) was signed into law by
the USA in October, making it illegal for financial institutions to handle
online gambling transactions from US residents. The loss of US players
caused many legally-licensed companies to lose upwards of 50-60% of their
value overnight. It also caused many publicly-held companies to either sell
off US-facing parts of their companies or go private to avoid shareholder
lawsuits. Many companies are now regrouping around Europe with new games
offered in a variety of languages. Several large U.K operators appear
well-placed to take advantage of the new European laws. Gala Coral already
operate an Italian-language site and a betting shop in Genoa, William Hill
has a venture with Spanish firm Codere for Spain, and Ladbrokes completed a
deal with Italian firm Pianeta Scommesse back in August as well as buying
three betting shops in Turin last month. Meantime, many other countries such
as Spain and Belgium, who had formerly viewed gambling as marginally
acceptable, are now moving toward regulating the sector. This is due in
large part to increased access to gaming brought about by advances in
technology, because more people have access to the Internet, and because of
now-possible controls for regulation, enforcement and protection of minors
and at-risk users. Greece, Ireland, Hungary, Poland and the Czech Republic
are watching closely to see how early adopters fair.

Simultaneously, the European Commission is trying to ensure that any changes
to gambling laws across Europe comply with rulings by the EU that countries
not interfere with healthy competition. According to a judgment by the EU's
highest court, member states may place curbs on private gambling operators,
but these must be "non-discriminatory, proportionate and consistent".

This especially presents a challenge to countries, including Germany France
and Poland, to justify that present laws are not simply there to protect
state-owned gambling and lottery monopolies.

Charlie McCreevy, EU internal market commissioner, has already brought
infringement proceedings against at least half a dozen countries for
restrictions on betting markets.

Last month McCreevy told the European parliament that there is "Not a
chance," for consistent Europe-wide legislation on internet gambling at this
time.

German gambling ban upheld

A German court has announced that it has rejected a constitutional challenge
to a ban on online sports gambling from an internet sports betting company.
The company was not named in court papers. The nameless company has quoted a
March 1990 judgment in the state of Thuringia, going back to the days of
East and West Germany, which permitted sports betting. However, a following
ruling in 2004 banned internet betting with immediate effect. Although the
name of the company has been kept under wraps, news that shares in Austria's
Bwin.com fell 2.8 per cent perhaps offered some light on the identity,
particularly after Bwin has been at odds with the German state officials
recently. Germany's 16 states are currently in the process of drawing up a
law to prevent internet gambling completely in an effort to protect the
monopoly enjoyed by its state-run lotteries. The reasoning behind this
decision seems to go against the desire of the European Union to open up the
market, with Bwin claiming that if the law goes ahead their business model
would become obsolete. However, Bwin, who are currently the biggest
bookmaker in Germany, received some slightly better news earlier this week
as a Bavarian regional court suspended an order which attempted to ban Bwin
from accepting bets from Bavarian residents. "Bwin can continue to offer
sporting bets in Bavaria and to accept bets from Bavarian customers," Bwin
said in a statement.
The ruling, one of many pending court cases with German states, means that
Bavaria cannot enforce a ban before the main court case is heard.

Gambling shop ordered to close

Rotorua gaming machine venue Whiskey Jack's has been ordered to close for
breaching the Gambling Act. The Gambling Commission backed a Department of
Internal Affairs' decision not to renew the venue's licence. First Sovereign
Trust, which operates the machines at Whiskey Jack's, has been told to shut
up shop immediately. Internal Affairs decided not to renew Whiskey Jack's
licence because the venue continued to be used as a gaming shop, which the
Gambling Act forbids. The trust appealed, but the Gambling Commission
endorsed the decision. There had been serious breaches over a long period of
time, the commission said.

Gambling Bill Passes Reading

A bill that would close most casinos and slot-machine halls in the country -
including Moscow and St. Petersburg - cleared a third and final reading
Wednesday in the State Duma. To become law, the bill still needs the
approval of the Federation Council and of President Vladimir Putin, who
submitted the draft in October.
The bill received the support of 428 out of 450 deputies, indicating that
the law is certain to be adopted. The bill calls for the creation of four
zones for legal gambling - the Baltic exclave of Kaliningrad, the Primorsky
region on the Pacific coast, the Siberian region of Altai and the southern
Krasnodar-Rostov area.
Casinos and slot-machine operations elsewhere in the country would be banned
as of July 1, 2009. Gambling experts have have voiced doubts that the areas
will be able to draw enough visitors to make gambling viable there.

Friday, December 22, 2006

New policy on gambling

Protecting children and preventing crime and disorder have been revealed as
key policies of Lancaster's new gambling policy. Members of the city council
have also agreed to help residents living close to businesses involving
gambling to have a say on new licences. As part of the Gambling Act 2005,
the council is set to take on responsibility for premises for licensing
gambling, granting permits for gaming machines in clubs and institutes,
regulating gaming machines in pubs and clubs and registering lotteries,
among others. The approved policy was drawn up after consultation with more
than 70 individuals and organisations, including parish councils, licensed
trade associations, betting shops, amusement arcades, leisure companies and
Lancashire Police.

Gambling proposal calls for an alliance between long-time competitors

Why am I not surprised that on Wednesday, the Austin American-Statesman,
Dallas Morning News and Fort Worth Star-Telegram all reported that a
proposal to broadly expand gambling in Texas is in the works in Austin? Hey,
gambling-expansion proposals have emerged every two years in Texas since the
early 1990s, just before each Legislature convened. What is different about
this proposal? This plan would authorize casinos on the state's three Indian
reservations - presumably, Class 3 casinos where players play against the
house and not each other - and it would put video lottery terminals in the
state's ailing horse and dog tracks.
The plan would also authorize 12 "resort-style casinos," two each in Houston
and Dallas, one each in Bexar, Tarrant and Travis Counties, one in Galveston
and another in South Padre Island. Three more would be in places chosen by
the Texas Gaming Commission, the über-gaming agency created under the
proposal.
Unlike earlier proposals, this plan teams up Indian reservations, horse- and
dog-track interests and full-blown casino developers, interests that have
been competitors in the past - always unsuccessful ones. According to
proponents, the whole package will generate $1.6 billion annually for the
state, money they envision spending on college tuitions, which have been
skyrocketing since they were deregulated, and children's health insurance in
a state that leads the nation in uninsured kids. Anyone familiar with the
Texas budget will tell you that $1.6 billion per year is not chump change.
And arguments already being advanced by gambling proponents are familiar
ones that aren't really in dispute. Texas provides Nevada more gamblers than
any other state except California, its neighbor, and there are more direct
flights from Texas to Las Vegas than to any other destination. The Lone Star
State is also surrounded by states with legal gambling. Go to any of these
state-line gaming emporiums and you are likely to find Texas plates on well
more than half the cars in the parking lots. Nor is it difficult to find
places to risk money in Texas. Eight-liner emporiums are everywhere and
pro-sports betting is ubiquitous in virtually every larger workplace and
many watering holes. And yes, there's no shortage of gaming still available
online. But what are the chances of this proposal moving forward? In a
phrase, it won't be a slam-dunk. Winning two-thirds margins in both House
and Senate to put a constitutional amendment on the ballot won't be easy for
lawmakers who plan to return to the local church to talk about their service
to the community. Then, winning voter approval won't be simple or easy.
Pari-mutuel betting finally made it on its eighth try on the ballot.
And however overstated, there will be the talk about the criminal element
casinos bring. And far more reality based, there are also very real
connections that will be made between widely accessible gaming and
obsessive-compulsive disorders and low-grade property crimes. Hardest to get
around, however, will be that none of Texas' previous gambling expansions -
bingo, pari-mutuel race tracks and the Texas Lottery - have delivered the
revenue promised.

The highs and lows of online gambling

Online gambling continued its rise in 2006 despite some tough decisions by
the US government to restrict the practice in America. Major sporting events
such as the World Cup pushed traffic on gambling sites even higher, with
research group Nielsen//NetRatings claiming that more than one million UK
punters went online on the first Saturday of the competition to read match
reports and place bets. This success actually caused problems for online
betting operations such as BetUK, Sporting Odds, Bet365 and Betfair, all of
which suffered delays with their sites. However, the positive start did not
last too long and in July the US fired the first shots in a looming war with
online gambling companies by arresting the chief executive of Betonsports.
David Carruthers was arrested at Dallas Fort Worth airport while
transferring to a connecting flight to Betonsports' headquarters in Costa
Rica. He was charged with conspiracy to offer bets to US citizens. The court
also filed charges against company founder Gary Kaplan, media director Peter
Wilson and nine other employees. Betonsports finally succumbed to pressure
from the US authorities in August and stopped accepting bets on its site.
That decision came just a few weeks before a new US law was introduced to
outlaw online gambling. Public companies lost more than £4bn of their market
value and millions of customers as they were forced to shut their US
operations.

Philadelphia wins final OK for casino gambling

Pennsylvania gambling regulators cleared the way Wednesday for Philadelphia
to become the nation's largest city with a casino, while rejecting Donald
Trump's bid for a slot-machine parlor and plans for another casino near the
Gettysburg battlefield. The Pennsylvania Gaming Control Board chose from
among 13 groups of casino giants, politically connected investors,
celebrities and nationally known developers when it awarded five licenses
for standalone slot parlors. Philadelphia will surpass Detroit as the
largest U.S. city with casinos. Winners include groups led by billionaire
Chicago-based developer Neil G. Bluhm and the Connecticut-based Mashantucket
Pequot Tribal Nation; each plans to build on the city's riverfront. "We're
thrilled and delighted. We're very excited and we're going to build a great
project," Bluhm said. "We want to do something really special here." The
gaming board rejected an application by Trump's casino company for a casino
in northwest Philadelphia. And it rejected a proposal by Isle of Capri
Casinos Inc. to build a gaming house in Pittsburgh. The board awarded 11
permanent slots licenses, each allowing as many as 5,000 machines. Six
licenses are earmarked for the state's horse-racing tracks. So far, two
racetracks -- Mohegan Sun at Pocono Downs and Philadelphia Park -- have
opened slot parlors under conditional licenses, and racetracks in Chester
and near Erie are expected to open slot parlors in the next two months. Gov.
Ed Rendell rejuvenated a 25-year drive to legalize casino-style gambling in
Pennsylvania by promising that slot revenues will help reduce property taxes
and revive the state's declining horse-racing industry. The law passed in
2004 authorized up to 61,000 slot machines at 14 sites.

Gambling pushed to fringes in Russia

Garish or goofy or grim, Russia's casinos and slot-machine halls are some of
the most vivid testimony to communism's collapse. But, under legislation
approved Wednesday by Russia's lower house of parliament, the $6 billion
industry is to be driven out of Moscow, St. Petersburg and most of the rest
of Russia. Once the bill is signed into law, gamblers will have only until
mid-2009 to lay their bets in Russia's major cities. After that they'll have
to go to a remote part of Siberia or three other regions distant from
Moscow. "These are repressive measures - essentially they amount to a ban,"
said Yevgeny Kovtun, vice president of the Association of Gambling
Businesses, which unites about 30 gaming companies. With the exception of a
drab national lottery, Soviet citizens had no outlet for their speculative
urges. That changed with the chaotic arrival of capitalism: Neon-decked
casinos sprouted in big cities, some offering prizes of luxury cars or $1
million in cash. Slot-machine halls have appeared throughout the country,
sometimes even next to schools. Russia's oil-driven economic upswing of
recent years sent new cash to the gaming tables. But a public backlash has
grown. "This is a business based on vice. It brings no good," said Vladimir
Medinsky, deputy chairman of the parliament committee that drafted the
legislation. "It hasn't been banned altogether, because it is a natural vice
and should therefore be controlled," he said. The zones, which are currently
infrastructure-free wilderness, are in the Altai region in Siberia, the
rainy Pacific coast region of Primorsky, the Kaliningrad area along the
Baltic coast and an area in Russia's south between Rostov and Krasnodar.
Industry players say that while limitations are needed, a complete ban
except for the gaming zones is harsh and could kill the industry. The
restrictions, they say, assume Russians will be ready to jump on a plane and
fly to the taiga - the sub-Arctic forest region - to make a bet. "In the
U.S. people know about Las Vegas from childhood, but in Russia gambling
tourism doesn't exist," Kovtun said. "Before, a person would pop into a
casino or slot-machine hall between the metro and his house. Now ... the
gaming companies will have to entice him to the Pacific coast."

Under the new legislation, no new gambling institutions will be allowed to
open as of the new year, and by summer only those with assets worth more
than $23 million will be allowed to continue working, killing off smaller
operations.

Dr. Zurab Illiich Kekelidze, deputy director of the Serbsky Center for
Social and Forensic Psychiatry, said citizens of the former Soviet Union are
more vulnerable to gambling's pull.

"They have no psychological immunity to casinos and to slot machines,
because in Soviet times they didn't exist," said Kekelidze, who treats
patients with pathological gambling dependency.

While Kekelidze welcomed the creation of gambling zones, he said efforts
should be made to educate people about gambling and provide better treatment
and counseling for addicts. Otherwise the gaming zones could act as "levers
of psychological instability," in poor regions like Kaliningrad, he said.

Lavrentii Gubin, a spokesman for Storm International, which runs six casinos
and 26 slot-machine halls across the country, warns that only big gaming
companies will survive the tough new rules, allowing illegal gambling to
flourish.

Although the government has said it is willing to allocate billions of
dollars to build infrastructure, "so far not a single company has said it is
interested in the project," Gubin said.

Thursday, December 21, 2006

Papajohns.com Bowl Joins Gambling Bonanza

December and January are Arnie Wexler's busiest times. Four more bowl games,
including the Papajohns.com Bowl, increase the angst for Wexler, a
recovering compulsive gambler in New Jersey who works with addicts. "When I
stopped in 1968, all of the games were on Jan. 1," Wexler said. "Now they're
all spread out. It's not good for the gamblers. As long as they have another
day, they still have their dream alive and can bail out." ESPN purchased the
inaugural Papajohns.com Bowl in Birmingham mainly to add television
programming. One million or so TV sets won't be tuned in simply for the joy
of watching East Carolina play South Florida. Birmingham's bowl will attract
three times the betting action than if this matchup was a regular-season
game, said Jimmy Vaccaro, an oddsmaker at American Wagering in Las Vegas.
South Florida is a four- to five-point favorite. The time slot (noon
Central) is conducive for early action in Las Vegas at 10 a.m., setting up
"a perfect three-ring circus," Vaccaro said. Birmingham's bowl kicks off a
Saturday with three college games and one NFL game. "For the people who
don't understand and bet to bet, if they win that first bet, they have money
in their pocket and they'll bet San Jose State-New Mexico. If they lose,
they'll be even and have one more (college) shot with Tulsa-Utah," Vaccaro
said. "It's what we call in the industry `churning the money.' It's like a
mini-NCAA Tournament Thursday. It's all on television and it spurs interest
because it's one after another." Eighty-five percent of people that
illegally bet on sports do so on football, said Danny Sheridan, USA Today
analyst and oddsmaker. "If you think somebody's going to watch the
conclusion of South Florida and East Carolina if they don't have a bet on
it, you're crazy," he said. "You could have 100 bowl games and people would
watch. The school names are irrelevant if you're a bettor." Bowls provide
networks with relatively cheap programming that produces enough viewers to
keep sponsors happy. Only one of the 28 bowls last year drew a TV rating
less than ESPN's average rating for a 2006 regular-season major league
baseball game (1.2). Sixteen of 28 bowls improved their TV ratings in
2005-06, even as 18 of 28 decreased in attendance. College football's
postseason now stretches from Dec.19 until Jan.8, a 32-game, 21-day bonanza
for gamblers leading into the NFL playoffs. Ten years ago, the college
postseason was 18 games over 15 days.

Vaccaro said the increase in bowl games represents, at the very least, the
indirect result of networks and colleges feeding America's gambling habit.

"If the game wasn't on TV, it would draw less attention and less money on
it, but there would still be money bet on it," Vaccaro said. "We keep
feeding this big monster and it gives us a return on this investment."

Sheridan said the bowl system - in which only the national championship game
truly matters - is designed to attract gamblers.

"If you have a competitive game, if the spread and over/under are in doubt
throughout the game, you will have a highly rated game," Sheridan said.

"It's not to say everybody who watches bowls bets. But you've got 40 million
people betting on these games."

The chair of the NCAA postseason football licensing subcommittee, Southern
Mississippi Athletics Director Richard Giannini, disputes the argument that
the influence of gambling impacts bowl TV ratings.

"I may be naive. I don't see how that plays a part," Giannini said. "I don't
gamble. I have no idea how it works. I don't see the correlation other than
I'm sure in Las Vegas you see a line on the game. I don't see any
correlation between the bowl games and the gaming industry, nor have I ever
been asked the question."

Alabama is the biggest betting state per capita in the country, said
Sheridan, who lives in Mobile.

"They bet on high school sports in this state," Sheridan said. "I'd be
surprised if you don't see a plane flying over Birmingham's bowl promoting
off-shore betting."

Gambling funds to boost tourism

FUNDS from gambling would be channeled to tourism as one way of boosting
infrastructure in the sector, an official from Malawi Gaming Board (MGB) has
said.
But government has advised operators in the tourism sector to desist from
externalising foreign currency generated from the industry. The current set
up empowers the board to collect 7.5 per cent of gambling revenue from
operators part of which would now be channeled to tourism. Speaking when
Deputy Minister of Information and Tourism John Bande toured the board's
secretariat, MGB Chief Executive Officer Master Maliro said tourism was a
sector likely to push the country out of economic doldrums. He said most one
of gambling spots, Colony Casino in Blantyre was planning to construct a
hotel including a cultural heritage centre Lilongwe and Blantyre. "Pirates
Casino in Lilongwe committed itself to construct a 100 bed hotel and they
have been allocated land, while Colony intends to build a cultural heritage
centre right here in Blantyre," Maliro said. He said the board would also
face lift tourism information offices in Blantyre and at Kamuzu
International airport and Chileka estimated to cost K1.8 million. The deputy
minister commended the board for mobilising resources to boost the sector,
but urged the watchdog to ensure operators do not abuse foreign currency.
"It is good that you are working according to plan, but you should make sure
operators who do business using foreign currency handle it properly since it
is prone to abuse," Bande said. As of November 2006, the board had bagged
K75 million in gaming levies and government got K71 million from import
duties on gaming machines.

CRM Vendor PacificNet Raises Bet On Macau Gambling

Tony Tong, Chairman and CEO of PacificNet, said although the company cannot
divulge the specifics on these sales "due to the highly competitive current
market in Macau," he does want to convey the company's "rapid progress in
the Macau gaming market to our shareholders and the gaming world." Initial
sales and acceptance of installed units are showing that PacificNet's
machines are "right for the Macau market," according to Tong, adding "we are
happy to see that our multiplayer EGM installation base is seeing steady
growth in Asia." According to recent Reuters reports, multiplayer gambling
machines have proven to be very popular in Macau, as the trend is away from
traditional, individual terminal games towards multi-player, shared
experience games. Electronic adaptations of popular table games are proving
exceptionally popular, both by gamblers and casino operators. Gamblers like
a private betting terminal over a crowded table while casino operators enjoy
greater accuracy, dealing speed, and cost savings of not having a human
dealer. "A powerful and developing trend over the next two years will be the
movement toward multi-station, communal play gaming devices," said Merrill
Lynch analyst David Anders in a note quoted by Reuters. Last week PacificNet
Inc. announced it has acquired an additional six percent interest in
PacificNet Games Limited (PacGames). Prior to this, in connection with the
acquisition of Able Entertainment previously announced during the Q3
earnings conference call, PacificNet owned 45 percent of PacGames.
PacificNet now owns 51 percent of PacGames. Tony Tong, Chairman and CEO of
PacificNet, said in recent board and management meetings "we evaluated the
early success of our gaming technology operation and were very satisfied
with the rapid progress and financial performance of the gaming operation.
The board of directors and management team has approved our new strategy to
focus on the rapidly growing gaming market in greater China, Macau, and
Asia." In September 2006, PacificNet opened an office in Macau to focus on
the rapidly expanding gambling and entertainment industries in that region.

Macau is one of the fastest-growing gambling markets in the world and is
predicted to surpass Las Vegas in total revenues by 2007. According to
recent statistics provided by Macau government, in 2005, Macau's gambling
revenues reached $5.8 billion, second only to Las Vegas gambling revenues of
$6 billion.

Macau borders Zhuhai City of Guangdong Province of China, one of the
country's wealthiest and most developed regions and is an hour away from
Hong Kong via ferry. The number of tourists visiting Macau reached 18.7
million in 2005, of which 56 percent or 10.5 million visitors were from
mainland China. By 2010, the number of tourists is expected to double to
nearly 30 million visitors per year.

Auditor vows to be gambling watchdog

A dispute might be brewing among state regulators over who will oversee
Pennsylvania's multibillion-dollar casino industry. Auditor General Jack
Wagner on Tuesday told the Gaming Control Board he intends to be the "fiscal
watchdog of gaming operations and related state programs." As the board
prepared to vote today on awarding 11 slot machine casino licenses
statewide, Wagner said he plans to issue a report card on each casino --
showing what portion of their workforces is hired from within Pennsylvania
as well as how well those operations met diversity goals and conducted
background checks on employees. Wagner's statement "gives us pause because
it appears that the Auditor General's Office is seeking to also gain
oversight of the gaming industry," said Doug Harbach, a board spokesman. The
board "has sole regulatory authority over the gaming industry in the
commonwealth," Harbach said. But he said the board welcomes the "interest of
the auditor general in monitoring the work of this agency" and would
cooperate as required by law. "We have the legal authority to audit the
Pennsylvania Gaming Control Board, every way and backwards," Wagner said.
The state's 2004 slots law does not require casinos to hire Pennsylvanians,
but Wagner said his priority in an audit would be measuring to what extent
the gambling industry fills jobs from within the state's borders. It's fair
game, because slots proponents promised 10,000 to 15,000 industry jobs in
the state when the law was passed, said Wagner, a former state senator. Jobs
are important because most of the casinos will be located near the borders
with West Virginia, Ohio, Maryland, Delaware, New Jersey and New York,
Wagner said. "All of that is well and good, but secondary to the real
problem, which is the legislation" legalizing slots, said gambling opponent
Dianne Berlin, coordinator of CasinoFreePA. The first audit might be
available by the end of 2007, Wagner said. Asked how he would access the
private personnel records of casino companies, Wagner said he expects to get
the information from the Gaming Control Board.

Gambling addict robbed bank in hopes police would kill her

A Truro woman was in such despair over her gambling addiction that she
robbed an Amherst bank in September hoping police would shoot her dead. "I
thought death was my only option," a sobbing Margaret Alice Baldwin said
Tuesday in Amherst provincial court before Judge Carole Beaton sentenced her
to 59 months in prison for robbing the Scotiabank branch on South Albion
Street of $100,000. Ms. Baldwin, 61, also received a concurrent 12-month
sentence for having a weapon - bear spray - during the robbery. The court
was told the robbery was the second time Ms. Baldwin had attempted "suicide
by cops." In 1999, she robbed a takeout restaurant in Miramichi, N.B., of
$540 hoping that she would be killed. She was sentenced to three years for
that robbery. Ms. Baldwin told the court she spent 25 years in the military
as a nurse before a neck injury ended her career. After her medical
discharge, she had a tough time adjusting to civilian life.
"Little did I suspect on Oct. 19, 1994, when I used that first VLT for some
social gambling, that I was doomed to spiral to the depths of hell," she
told the court.
"I lost $600,000. I've lost my dream home, my car. I lost my values, my
self-respect and my family. I became a piece of garbage." She attempted
suicide by hanging and by crashing her car. Ms. Baldwin said she tried to
get help for her gambling addiction on an outpatient basis but it didn't
work. After she was released from prison after the Miramichi robbery, she
entered an in-patient program at a Toronto clinic and was treated
successfully. But she couldn't afford to continue with the clinic's
outpatient rehab program and fell back into gambling after moving back to
the Maritimes. By last August, she had hit bottom and figured the only way
out of her desperate situation was to return to the Ontario clinic. She said
she asked for financial help from the Nova Scotia government but was
refused. "That put me into a full-blown crisis," she said. "I decided the
only way to stop it was to stage another robbery. I thought if they (police)
wouldn't shoot me for $540, they might shoot me if I stole $100,000." Ms.
Baldwin entered the Amherst bank on Sept. 5 and asked to see manager Maria
Campbell. Once inside Ms. Campbell's office, Ms. Baldwin produced a
handwritten note demanding $100,000 in unmarked, untraceable bills and
warned that she had a bomb strapped to her waist that accomplices in the
parking lot could set off. She was wearing a black veil covering her face
and white sport socks on her hands.

Police arrested her within minutes after she left the bank and recovered all
the money.

"It must have been scary for the people in the bank, but it was not my
intention to scare or harm people," Ms. Baldwin said, dabbing at tears. "I
only wanted to die.

"I hope Ms. Campbell can forgive me, not for my sake, but for hers. She
needs to get on with her life and not think of me."

Bill on four gambling zones passed by State Duma

The State Duma has passed the bill on four gambling zones in the third
reading Dec. 20. 428 votes were for, with 226 ones required. The gambling
zones will be established in the Altai and the Primorie Territory, the
Kaliningrad Region and on the borderline between the Rostov Region and the
Krasnodar Territory. It is banned to do gambling business out of the
precincts of these zones. The boundaries of the zones shall be determined by
the federal entities. Gambling business will be prohibited from July, 1,
2009. All the gambling establishments having licenses in accordance with
laws will have the right to work until June, 30, 2009. All the gambling
establishments will be closed on July, 1, 2007.

Wednesday, December 20, 2006

"Roll the Bones" gets inside the mind game of gambling

Last year an executive for a major slot-machine manufacturer gave me a tour
of his Las Vegas headquarters. Don't be misled by the dozens of flashing,
clanging slots in the showroom off the lobby, he told me. His wasn't a
gambling company. "We're an entertainment company," he said. Unlikely as it
may sound, slots, with their bright video screens and realistic sound
systems, have become curiously sophisticated minimovies, complete with
engaging characters (sly geishas, say, or crafty penguins) and plot twists
(an unexpected game within a game), all built upon a deep understanding of
the human-machine interface. Slot designers are forever searching for the
precise combinations of sight, sound and potential payoff that will keep a
player handing over cash, all the while ensuring the experience is not so
intense that it induces seizures. Is that really so different from
Hollywood? This collusion of advanced mathematical modeling, Pavlovian
conditioning and multiplex smarts is intriguing. But what's even more
fascinating is how this whole enterprise can be traced back to ancient
Mesopotamians rolling sheep hucklebones to see which of the four sides would
come up. That's the tale told in "Roll the Bones" by David G. Schwartz,
director of the Center for Gaming Studies at the University of Nevada at Las
Vegas. Schwartz starts in the foggy borderlands between augury and chance,
when prognosticators looking for clues about the future would roll the bones
and interpret the results. It wasn't a huge step to start wagering on the
outcome of these rolls. And it may be that humans are genetically hard-wired
for such behavior: Dice arose independently in various civilizations. The
first dice in India were fashioned of brown nuts; Native American dice often
were made from shells or beaver teeth. Among the many telling facts Schwartz
touches upon: Dice carved with symbols actually predate the use of numerals.
>From dice, it's onward to playing cards and wagering on the outcome of
everything from insect fights to basketball games, from lottery drawings to
wheels of fortune.

This tour takes the reader from ancient ages of superstition through to the
Enlightenment, which gave rise to the science of probability; from seedy
Western saloons to the gilded gambling halls of Monaco; and inexorably
onward, as you might have guessed, to a patch of scrappy desert in southern
Nevada.

It's an epic story with an engaging cast. You'll learn a bit about Denmark
Vesey, a Charleston, S.C., slave who won a lottery and used his earnings to
purchase his freedom (successfully) and fund an insurrection of some 9,000
slaves and freemen (unsuccessfully). And there's John Morrissey, the
bare-knuckle fighter turned gambling baron turned nearly respectable
congressman, who was a major figure behind the rise of Saratoga Springs as a
mid-19th-century gambling resort.

Chronicling a tale with such sweep has its challenges, not all of which
Schwartz has overcome. The evolution of gambling refuses to follow a linear
path; you can't trace a neat line from dice to the OTB parlor. Schwartz
leaps around to give each form of gambling its due, as if in a frenzied game
of Whac-a-Mole. (Speaking of which, his detour through the world of crooked
carnival games is among the book's more engaging sections.)

All that hurrying around can be a bit aggravating, giving the book a jumpy
feel. Leonie Leblanc, "the most famous Baden-Baden female gambler," is given
only two sentences. And will anyone not feel shortchanged by this brief
note: "One man even proclaimed his 'killer duck' an interspecies champion
and pitted it against all canine challengers."

The narrative finds a more satisfying pace about halfway through, when the
spotlight swings to the origins of modern gambling in the United States. We
begin in New Orleans (where craps and poker took root), then travel with
cardsharps up the Mississippi on steamboats, then push on to San Francisco
during the gold rush and then Las Vegas.

Schwartz makes little effort to draw any grand conclusions about what this
5-millennium-old habit can tell us about ourselves. He seems content to
simply note the obvious: that gambling is an ingrained part of our everyday
life. "Roll the Bones" could have used more analysis and less inventory.

Still, Schwartz, the author of two previous books on gambling culture, does
manage to accomplish something remarkable: He's made Las Vegas seem like a
vast repository of history, not a crash site of implosion, rebuilding and
reinvention.

The book's last chapter describes a stroll through the splashy new Wynn Las
Vegas, a $2.7 billion casino that is "the most expensive ... yet built."
Schwartz sees a ghostly reminder of the past at every turn - from the rise
of fancy casinos in Italy, which is reflected in an Italian restaurant, to
the specter of the early-19th-century German spa resorts, as seen in a
lavish indoor garden.

Gambling Critic Won Thousands

A recently appointed member of the Pennsylvania gaming board was a longtime
critic of gambling when he was a legislator but he has won thousands of
dollars at casinos, a newspaper reported Sunday. Former state Rep. Mark
McNaughton voted against the state's slot machine law in 2004 and opposed
gambling for years before that, but at the same time he won $15,500 from
2003 to 2005, according to tax returns obtained by The Philadelphia
Inquirer. The five-term Republican from Harrisburg disclosed his winnings on
his federal income taxes but not on state ethics forms, the newspaper
reported. McNaughton said he didn't report his gambling winnings on the
ethics disclosure statement for lawmakers because he didn't believe it was
required. However, the State Ethics Commission says it considers such
winnings income, which legislators must note on annual disclosure forms if
it exceeds $1,300. He said Friday that he was only acting on the wishes of
his constituents when he opposed efforts to expand gambling in Pennsylvania.
'Gambling should not be everywhere. It should be a destination-oriented
activity where you go there and enjoy the day or two and return,' he said.
'I don't believe it's in the best interests of citizens to be able to walk
across the street and play slots.' He is due to take his $145,000-a-year,
appointed position on the gaming board by the middle of next month. Ethics
rules only bar board members from gambling or taking compensation from a
licensee or an applicant in Pennsylvania, according to spokesman Doug
Harbach. McNaughton said most of his winnings came from playing slot
machines in Las Vegas and stud poker in Atlantic City, N.J.

New US law won't stop Internet gambling

When Congress specifically criminalized Internet gambling at the end of
September by outlawing credit-card payments to the services, it failed to
stop aspiring card sharks and delusional Oakland Raiders fans from parting
with their paychecks, experts say. Offshore sites simply set up shop where
U.S. law enforcers can't reach them, and domestic gamblers are finding
alternative ways to pay them. People who bet online will not face criminal
prosecution under the law because it does not ban Internet gambling; instead
it requires that banks and other financial institutions block credit-card
payments to gambling sites. "If you send a check in, you'll be fine. There's
no way it's going to stop," says Frank Catania, a former New Jersey gambling
regulator who currently lobbies for the online-gambling industry. The
Federal Reserve is not expected to force banks to screen personal checks or
other payment methods that are more difficult to track, experts say. Raking
in billions
U.S. residents have been placing bets over the Internet since 1995, and from
the outset some members of Congress have been trying to ban the activity.
Their past efforts failed due to opposition from dog tracks, state
lotteries, and other interests worried that such a prohibition would hamper
their operations. Internet gambling is booming. By last summer, U.S.
gamblers accounted for half of the industry's US$12 billion in revenue, and
online-gambling stocks such as that of PartyGaming were flying high on the
London Stock Exchange. In July, Republicans in the House of Representatives
passed an Internet gambling ban, but it encountered opposition in the Senate
and appeared to be headed for yet another defeat until Senate Majority
Leader Bill Frist (R-Tennessee) attached it to an unrelated port-security
bill--a move that guaranteed passage. When the bill passed in September,
Frist denounced gambling as an addiction that "frays the fabric of society."
In the wake of the law's passage, investors in London sold off PartyGaming
and other Internet gambling stocks, erasing $7 billion from the stock
exchange in a matter of days. Many of those British companies said they
would no longer accept wagers from their most lucrative market across the
Atlantic. But other gambling sites, such as the privately owned Bodog and
PokerStars, say they will continue to serve American customers. Their
Caribbean locales put them beyond the reach of U.S. law enforcement--unlike
gambling executives in Britain, who face extradition to this country under a
2004 treaty originally intended for extraditing terror suspects. Industry
pundits don't expect the ban to end online gambling. "I have no doubt the
private operators will pick up the slack," says Tejinder Randhawa, an
analyst for Evolution Securities in London.

National Council on Problem Gambling Head on PocketFives Podcast

"Problem gambling is gambling behavior which causes disruptions in any major
area of life: psychological, physical, social or vocational. The term
"Problem Gambling" includes... "Pathological", or "Compulsive" Gambling, a
progressive addiction characterized by increasing preoccupation with
gambling, a need to bet more money more frequently, restlessness or
irritability when attempting to stop, 'chasing' losses, and loss of control
manifested by continuation of the gambling behavior in spite of mounting,
serious, negative consequences." For 34 years, the NCPG has set out to
inform, educate, and provide a resource for gamblers everywhere. On
Thursday, December 21, 2006, NCPG Executive Director Keith Whyte joined the
PocketFives.com Podcast to discuss this organization.
"We try to provide a safety net for those who have a problem," said Whyte.
"We want to make sure that, if people do gamble, they do so responsibly. If
they don't, we're there to pick up the pieces." The NCPG focuses on
educating the gambling community and others on identifying problem gambling:
"People with gambling problems are preoccupied with gambling and lose
control. They're basically talking and thinking about gambling 24 hours per
day. Many other things in their life are not important anymore." After
identifying problem gaming, the next step is assisting in its treatment:
"First, it's offering your friendship and letting the person know it's not a
judgment you're making. Second, if you do offer some suggestions, offer them
a resource like a phone number or a website." The NCPG offers a 24-hour,
confidential hotline to call in, 800-522-4700. Counselors are standing by
and everything is kept in the strictest of confidentiality. "We've made, as
a society, enormous progress to encourage people with an addiction to seek
help. We haven't done as well with gambling problems. I think there's still
a significant amount of shame and stigma, which prevents a lot of people
from getting the help they need from talking to a friend." The game of poker
offers a unique paradox between a potential problem gambler chasing the
"skill" they possess in poker as opposed to the "luck" offered to them by
other casino games of chance: "With poker and with other skill-based games,
one of the problems is that, when people believe there's a difference
between luck and skill, many people in general and especially those with
gambling problems believe that their skill or luck is so much better than
anyone else's. The more skill a game is perceived to have, the more trouble
people can get into because people believe they are going to be able to beat
the system."

The NCPG website, www.ncpgambling.org, provides an extensive resource for
those interested in learning about responsible gambling. You'll find an
anonymous online quiz that will take your answers and make suggestions as to
your gambling behavior. There is also a directory of gambling counselors,
frequently asked questions, and, overall, tools to assist and educate people
in gambling responsibly.

A Patrick pick concerns proponents of gambling

After another year of dashed hopes in the Legislature, proponents of
expanded gambling were looking forward to the new year. Shortly after
Election Day, Governor-elect Deval Patrick promised to keep an open mind
about gambling. Now, Patrick has chosen the fiercest opponent of slot
machines in the House of Representatives as his chief economic development
adviser. This has created uncertainty among gambling proponents, who wonder
what the appointment might mean. Yesterday, state Representative Daniel E.
Bosley said that he is still strongly opposed to gambling, and that he will
express his views to Patrick. However, he said the issue did not come up
during his conversations with Patrick when they talked about Bosley joining
the incoming administration, and that Patrick has "got to keep an open mind"
on the subject and come to his own conclusion. "He has to listen to the
arguments and explore the issues and then figure it out on his own," Bosley
said, adding that it was not clear whether the issue of expanded gambling
would be part of his responsibilities. So far, in Massachusetts, discussion
of widened gambling has generally involved slot machines rather than
casinos. If Patrick took a strong stance in favor of expanded gambling, the
issue might have a better chance of prevailing in the Legislature, where
gambling bills have died in years past. But it is not clear how much
influence even the incoming governor would wield. A bill to legalize slots
cleared the Senate a year ago but lost by a large margin in the House last
spring amid opposition from Speaker Salvatore F. DiMasi.
Patrick voiced serious reservations about expanded gambling during his
campaign, citing concerns about gambling addiction and the effect it could
have on the state lottery. But Patrick, who was quoted as saying in the
Boston Herald he had played the slots with his mother at Foxwoods, also said
that he has spent more time with gambling opponents than gambling
proponents, and that he has promised to do more homework on the issue. Louis
Ciarlone, the president and business manager of Local 123 of the
International Brotherhood of Electrical Workers, which represents about 200
workers at Suffolk Downs in East Boston, said legalizing slot machines could
help Patrick pay for improvements in public safety and education, and help
to provide more aid to cities and towns.

A report commissioned by the treasurer's office last year said Massachusetts
could pull in almost $500 million by legalizing slots at the state's four
racetracks.

Patrick will have plenty of pro-gambling voices to hear. Lieutenant
Governor-elect Timothy P. Murray strongly supported this year's gambling
bill, which would have brought 8,000 machines to the state's four
racetracks, as a way of providing more local aid to cities and towns.

And Robert J. Haynes -- president of the Massachusetts AFL-CIO, which worked
hard for Patrick's campaign last fall -- supports slot machines because of
their potential to create jobs and to increase state revenue.

Haynes said yesterday, however, that he was thrilled with Patrick's
selection of Bosley as his economic development adviser.

He said it would be parochial to assume that Patrick's appointment of Bosley
signaled anything about Patrick's view on gambling, which he said amounted
to "a small piece" of economic development.

Thomas G. Ambrosino , the mayor of Revere and a supporter of slot machines,
said his first reaction to the news of Bosley's appointment was that "it
doesn't bode well for the prospects of expanded gaming."

Internet Gambling and Las Vegas to Play Prominent Role in '08 Elections Caucus

Forget Hillary vs. Obama. There's another question in the Democratic
presidential race: Does what happens in Vegas really stay there, or can Sin
City set the course for the nation? Nevada has a new prominence in deciding
the party's next nominee. It will hold an early caucus January 19, 2008,
sandwiched between Iowa and New Hampshire. The prized position is an attempt
to bring more diverse voices into determining the Democratic candidate
beyond the two overwhelmingly white, rural states that have traditionally
dominated the process.The hope is that a Western state with a large
population of Hispanics and union workers will bring fresh issues to the
debate. "I've always felt that the system we have of choosing our president
has been very cockeyed," said incoming Senate Majority Leader Harry Reid,
the state's top Democrat. Nevada "will give the American people a better
idea of what a candidate should be for and against." That doesn't mean
candidates should be for gambling and against limits on prostitution. Nevada
may be famous for some of the nation's most liberal entertainment laws, but
state leaders are more interested in promoting other, less sexy political
concerns. Those include water rights, nuclear waste disposal, health care,
education and maintaining military installations. Local activists say they
don't expect to see the candidates on the Strip, except maybe to hold
fundraisers in the large meeting rooms or spend the night in the hotels.
However, they can be expected to be asked where they stand on Internet
gaming and betting on collegiate sports, issues important to the local
economy. "You are going to get certain questions about local issues just
like you get questions in Iowa about corn subsidies," said Democrat Tony
Sanchez, chairman of the committee drafting the caucus rules and overseeing
its operation. "But the thought of, 'Hey, let's get a picture of you rolling
the dice' -- that's not going to happen." Westward ho The selection of
Nevada is part of an effort to increase Democratic support in the West, once
a bastion of conservatism. Democrats won several statewide elections in the
West last month and the Democratic National Committee is considering holding
its 2008 convention in Denver, Colorado. Reid was the driving force behind
moving up Nevada's caucus and has a lot at stake in its success.

That will be a big job. Nevada had only 17 caucus sites in 2004 -- one per
county -- and just 8,500 of the state's nearly 1 million active registered
voters took part. That was a huge jump from 2000, when fewer than 1,000
participated, and the increase overwhelmed the party and delayed results for
hours.

This time, the party plans to have as many as 1,000 sites, Reid said.

The Nevada Democratic Party hired Jean Hessburg, the former head of the Iowa
Democratic Party who helped oversee the last Iowa caucus, to run the
operation and avoid some of the problems seen in 2004. She will be assisted
by Iowa political veteran Jayson Sime and a trio of media consultants
experienced in presidential politics -- Jamal Simmons, Bill Buck and Roger
Salazar.

The question is how much time the candidates will spend in Nevada versus
Iowa and New Hampshire, where they are expected to attend parties in
people's homes statewide. The candidates will have an incentive to stick to
the Las Vegas area because two-thirds of the voters live in Clark County.
Reno also has a concentration of Democrats, but the rest of the state is
sparsely populated and overwhelmingly Republican.

At stake in the Nevada Democratic caucus voting will be 22 base delegates,
compared to Iowa's 39 and New Hampshire's 19.

Labor unions critical
Many Democrats considering a bid have been working Nevada. New Mexico Gov.
Bill Richardson has visited repeatedly from his nearby home state, and John
Edwards has been courting the state's labor leaders. The 2004 vice
presidential nominee already has an endorsement from the Laborers' Local
872.

The labor support will be critical in Nevada because unions will be the most
natural organizations to get voters to the caucus. The largest is the
Culinary Workers Union Local 226, with 60,000 members who serve the drinks,
clean the hotel rooms and cook the food at casinos. Political director Pilar
Weiss said the union has many friends in the race and won't make an
endorsement until late in the process.

"There is not a favored son or daughter," she said.

Iowa Gov. Tom Vilsack stopped in Las Vegas on his presidential campaign
announcement tour and Edwards plans to include it on his later this month.
Sens. Joe Biden of Delaware, John Kerry of Massachusetts and Chris Dodd of
Connecticut have also made trips in recent months.

Two top-tier contenders who have not announced -- Sens. Hillary Rodham
Clinton of New York and Barack Obama of Illinois -- have not visited since
Nevada moved up its date.

Can Dems appeal to Nevadans?
It's too early to gauge what kind of appeal they would have in the swing
state, although former President Clinton made many friends here with his
2000 veto of a bill that would have sent nuclear waste to Nevada's Yucca
Mountain.

One of Bill Clinton's fans is Billy Vassiliadis, who created Las Vegas'
successful "What happens here, stays here" marketing campaign and a slick
brochure and video that helped convince Democrats to bless Nevada's early
caucus.

Vassiliadis has a picture of himself with Obama hanging in his office and
once held a fundraiser for Edwards at his chic headquarters. He said he
wants to stay neutral in the presidential primary, but paused when asked
what he would do if the former president asked him to support his wife.

"There's almost nothing Bill Clinton couldn't ask me for," Vassiliadis said.
"That would be tough."

Reid said that with so many senators in the race, he will not endorse
anyone. "That would be a little bit foolish for me to do that when I have to
ask them for things here all the time and they have to ask me for things,"
he said in a recent interview.

He said he will ask the gambling industry to support the caucus effort.

"I hope they step up and help with funding some of the things that need to
be funded in this new environment we have there," Reid said. "And I'm
confident they'll do that."

Reid rejects suggestions that associations with legalized gambling could
hurt presidential candidates, noting that numerous states have it.

Frank Schreck, an attorney who has worked for gambling clients and was a
chief fundraiser for Bill Clinton, said the industry is sensitive to
appearances for politicians but will want to know where they stand on issues
important to them.

"It's in private conversations because you don't want to embarrass anybody,"
Schreck said.

Tuesday, December 19, 2006

Venues to lose pokies in gambling crackdown

The Victorian Government has announced which gaming venues are to lose poker
machines under its plan to cap machine numbers in 19 Victorian regions. The
Government promised to move 543 gaming machines during the election campaign
and they will come from venues in Dandenong, Hume, Latrobe, Maribyrnong,
Monash and Warrnambool. Some clubs will lose only one or two machines and
they can be moved to other regions not covered by the cap. Gaming Minister
Daniel Andrews says it is part of a $132 million plan to reduce problem
gambling. "A comprehensive plan to take action on problem gambling," he
said. "This is the biggest package, the biggest policy and the biggest
financial commitment in terms of addressing and taking action on problem
gambling that Victoria has seen."
Opposition gaming spokesman Michael O'Brien says the Government is simply
moving pokies around instead of reducing the total number. He says it shows
the Government is not serious about tackling problem gambling. "You can't
solve the drug problem by moving drug dealers across the street and you
can't solve gambling problems by moving pokie machines from suburb to
suburb," he said. He says the caps will do nothing to help reduce problem
gambling. "This decision means that there will not be one less pokie machine
operating in Victoria, operating on one less day, taking one less dollar of
revenue," he said.

Cash needed to tackle gambling

ILLEGAL gambling dens could spread in Redbridge unless the council gets more
money to deal with the problem. Community protection officer, Alan Drake,
fears the council will be unable to carry out its new licensing and
enforcement responsibilities under the Gambling Act 2005, unless proposed
funding levels are increased.
He said: "We aren't currently equipped to enforce the legislation under the
Act, and to be honest, the £20,000 of funding we will get each year will
barely cover our administrative costs. "What this means in practice is that
if we hear about a suspected illegal gambling den in the borough, we will
not have the manpower or finances to take action against it." Speaking at a
recent area one committee meeting, Snaresbrook ward councillor, Sue Nolan,
dismissed the Act, which transfers full responsibility for the licensing of
gambling premises to local councils from Wednesday, January 2007, as an
example of Government incompetence. She said: "This Act just looks like more
muddled policy and spin to me, with very little thought gone into the
practicalities involved. "This is simply another example of the Government
asking local councils to carry out new duties without giving us the finances
to do so effectively. "It's essential the council has the capability to
enforce the law when alerted to illegal gambling by the public." Councillors
have forwarded a recommendation calling for the Government to increase the
proposed level of funding.

Italy's gambling hand

As the whole of Europe seem to be debating the legality of gambling, Italy
will announce shortly the details of its new stance on gambling. The Italian
government will auction off 17,000 licences for betting shops, kiosks,
casinos and online casinos and sportbooks. The decision by Italy has led to
a deluge of applications, with Betfair, William Hill and Ladbrokes one of
the first to seize the opportunity and be granted licences. Gaming firms now
see Europe as an ideal market following the U.S crackdown on online
gambling, but Nilay Patel, corporate finance manager for William Hill,
remains pragmatic over the new legislations. "Essentially, this is a case of
creating a new market or converting an illegal market into a legal market,"
said Patel. "We don't have the facts, figures and information on which to
make sensible estimates of the potential size of the opportunity. "Until we
actually have a couple years of operating experience in these markets, we
really don't know how they're going to develop," he added. Some of the U.K's
largest operators already appear well placed to take advantage of the new
laws across Europe. Gala Coral already operate an Italian-language site and
a betting shop in Genoa, William Hill have entered into a venture with
Spanish firm Codere and Ladbrokes completed a deal with Italian firm Pianeta
Scommesse back in August, as well as buying three betting shops in Turin
last month. Many other countries, such as Greece, Ireland and the Czech
Republic, will watch the effects of the law changes and will base their own
decisions on its implications.

Overlooking all of this is the European Commission, who face the tough job
of ensuring the changes in gambling laws, however flexible or stringent, do
not restrict the promotion of competition. According to a ruling by the
E.U's
highest courts, member states may place controls on private gambling
operations, but they must be "non-discriminatory, proportionate and
consistent". In the last few days Germany appears to have ignored this
notion, putting in place new laws to help protect its state-run lottery.

Spain is also set to follow Italy, with the various Spanish regions able to
set up their own regulations as they see required. In essence, Spain will
allow gambling in regulated locations, including online

Gambling faces few open ears in '07

Ottumwa, Fort Dodge and Tama are interested in state licenses for riverboat
casinos. Officials in the three communities say they will likely bring their
requests to the Iowa Racing and Gaming Commission, which regulates licenses,
rather than ask for help from the Legislature. "At this point, we are going
to follow the commission's lead. We feel that the Legislature has already
spoken to this issue," said John Pavone, president of Signature Management
Group, which is working with Tama County officials on plans for a Tama-area
casino. Wapello County Supervisor Steve Siegel, who heads a nonprofit
Ottumwa group that wants a casino, said he'll bank on Gov.-elect Chet
Culver, a fellow Democrat, to help his community get a license. Culver has
said that if new casino licenses are issued, Ottumwa and Fort Dodge should
be next in line. The commission rejected proposals for casinos in those two
communities last year. "We are hoping that will carry a little weight" with
state gambling regulators, Siegel said. The gaming commission will meet on
March 1 at Terrible's Lakeside Casino in Osceola to discuss additional
licenses. The commission awarded four new casino licenses last year, and
Chairwoman Kate Cutler of Council Bluffs said she wants to monitor all of
those before more licenses are granted. Three of the casinos - in rural
Worth County, Emmetsburg and Riverside - have opened. The fourth - a $175
million gambling complex in Waterloo - will be opened next spring by Isle of
Capri Casinos. Iowa already has 19 casinos, including three racetrack
casinos and 13 riverboats, plus three American Indian casinos on tribal
lands, including the Meskwaki Bingo Casino Hotel near Tama. Some Iowans
oppose more gambling. "Leave it alone. We don't need any more casinos," said
Ted Snell, 82, of Des Moines, a retired Western Electric worker who was
recently playing slot machines with his wife, Pauline, at Prairie Meadows
Racetrack and Casino in Altoona. He said he was glad state lawmakers last
year banned the Iowa Lottery's TouchPlay machines, which closely resembled
slot machines, because they provided too many opportunities to gamble.

Iowa House Speaker-elect Patrick Murphy, a Dubuque Democrat, said in a
recent interview that he has no plans for a full-blown debate on either
liberalizing or restricting gambling during the upcoming session. He said he
is focusing on other priorities, such as education and the state's business
climate.

"If there is some cleanup stuff, we might want to do it, but I don't want to
say there will be a gambling bill," Murphy said.

State Sen. Jack Kibbie, an Emmetsburg Democrat, said he also doesn't expect
a major debate on gambling, but he believes lawmakers may consider
abolishing a provision adopted in 2004 that requires newly opened riverboat
casinos to have water under their floors. The current rule means riverboats
no longer have to operate on rivers or lakes, but they must be built over
water so they can be considered "moored barges." One example is the $40
million Diamond Jo Worth Casino near Northwood that was constructed above an
artificial basin that is nearly invisible to gamblers except for a wooden
paddle wheel in a small pool near the entrance.

"If you are going to have a land-based casino, why have water under it? I
mean, that's kind of ridiculous," Kibbie said.

Officials seeking casinos said they believe Iowa's gambling industry still
offers a virtual pot of gold to communities in search of jobs and economic
development.

"Having grown up and lived in Fort Dodge all my life, with the exception of
going to school, I think it's an economic tool that we could use here," said
Mark Crimmins, a Fort Dodge lawyer and a leader of the Heart of Iowa
Foundation, a nonprofit group that hopes to obtain a casino license.

"It's a form of entertainment that we don't have here, and I just think it
would help our community," Crimmins said. "We are a retail hub, and I think
that it is just one more piece of the puzzle to help grow the city and the
area."

Tama Mayor Chris Bearden said people in his community are thrilled at the
prospect of launching a riverboat casino, which would operate at Cherry
Lake. He views a local riverboat gambling complex as a complement to the
nearby Meskwaki Bingo Casino Hotel, which averages about 5,000 customers a
day.

"People are asking me what our chances are. They are very excited about it.
All of Tama County is excited about it." Bearden said.

One person who doesn't share such enthusiasm is Tom Coates of Norwalk, an
anti-gambling leader who also heads a credit counseling service.

"More casinos are probably in the offing, given the involvement of certain
individuals on both sides of the political aisle and large campaign
contributions," Coates said. "That's a concern because every casino that
pops up devastates that many more families as it moves into their
backyards."

Philly to be largest gambling city

Visitors come here to see just one bell - the Liberty Bell. Soon they'll be
looking for a row of them - on a slot machine. Pennsylvania's 2-year-old
state gaming board is to award licenses Wednesday for two slot machine
casinos to be built here. That will make Philadelphia the largest city in
the country with casinos and put legalized gaming within 2 miles of
Independence Hall, where the founding fathers gambled their fortunes on
revolution. The arrival of slots parlors here is part of the spread of
gambling through the mid-Atlantic. New Jersey, New York and Connecticut have
casinos. Pennsylvania and Delaware have slots at racetracks, and Maryland's
incoming governor wants to do the same. In Philadelphia, founded by Quakers
whose religious beliefs prohibit gambling, slots casinos are facing a cold
welcome from the neighbors. In Pennsport, the riverfront neighborhood where
Rene Goodwin lives in a 19th-century brick row house, the elevated bulk of
Interstate 95 separates narrow residential streets from big-box stores and
the city's container port. One of the casinos is proposed for a vacant site
next to Wal-Mart. "It isn't this hinterland," says Goodwin, who leads
Riverfront Communities United, a group of seven neighborhood associations.
Pennsport would be overwhelmed by traffic and crime if the slots parlor is
built two blocks away, she says. "It's a real place, where people know each
other. . Is it worth destroying one of the best neighborhoods in the city
for a casino?" Five proposals are competing for the two licenses. The
developers include Donald Trump; the Pequot tribe, which runs Foxwoods
Casino in Connecticut; and the owner of Philadelphia's two daily newspapers.
Four of the proposed slots parlors would be built along the Delaware River,
and the fifth would be across town, closer to wealthy suburbs. Something to
come for Bringing gambling to Philadelphia has long been supported by former
mayor Ed Rendell, who is now governor. Mayor John Street, who leaves office
next year, also supports it as a boost to the city's tourism business. The
city's convention center plans a $700 million expansion to be completed in
2009. Street says convention planners already schedule an evening in
Atlantic City for conventiongoers. He predicts the state will eventually
allow table games as well. About half the revenue from the Philadelphia
slots parlors would be money now used to gamble elsewhere, according to the
city's gaming task force.

"If you want people to live in your city, to live in your region, to bring
their conventions here, to bring their bodies here for vacation, you've got
to have something for them," he says. "I want them to look like casinos, I
want them to feel like casinos. A real casino with all of the opulence. I
want to see a little neon."

The state's 54% tax on casino revenue - the highest of the 36 states that
have legalized gambling - is earmarked for property tax relief. And in
Philadelphia, it would allow a cut in the city's wage tax paid by people who
work in the city regardless of where they live. If casinos ultimately take
in $2 billion a year as projected, the city says it expects a 13% cut in the
wage tax, which is 4.3% for city residents and 3.8% for commuters.

In addition, the city will receive a $25 million "host fee" paid by the
casinos, says Shawn Fordham, a mayoral adviser and executive director of the
city's Gaming Advisory Task Force. The two casinos are projected to generate
10,000 permanent jobs.

Casino Free Philadelphia has gone to court to try to overturn the 2004 state
law allowing slots. Jethro Heiko, who heads the group, says the public
hasn't seen the casinos' final proposals that were modified after the period
for public comment closed. Nor has the state established standards for
neighborhood impact, the lawsuit argues.

"Do we even want Philadelphia to be the next Atlantic City?" he says. "We
already have a lot of good things happening in the city. We're not
desperate."

Long Time Gambling Critic Won Thousands At Slots

A recently appointed member of the Pennsylvania gaming board was a longtime
critic of gambling when he was a legislator but he has won thousands of
dollars at casinos, a newspaper reported Sunday. Former state Rep. Mark
McNaughton voted against the state's slot machine law in 2004 and opposed
gambling for years before that, but at the same time he won $15,500 from
2003 to 2005, according to tax returns obtained by The Philadelphia
Inquirer. The five-term Republican from Harrisburg disclosed his winnings on
his federal income taxes but not on state ethics forms, the newspaper
reported. McNaughton said he didn't report his gambling winnings on the
ethics disclosure statement for lawmakers because he didn't believe it was
required. However, the State Ethics Commission says it considers such
winnings income, which legislators must note on annual disclosure forms if
it exceeds $1,300. He said Friday that he was only acting on the wishes of
his constituents when he opposed efforts to expand gambling in Pennsylvania.
"Gambling should not be everywhere. It should be a destination-oriented
activity where you go there and enjoy the day or two and return," he said.
"I don't believe it's in the best interests of citizens to be able to walk
across the street and play slots." He is due to take his $145,000-a-year,
appointed position on the gaming board by the middle of next month. Ethics
rules only bar board members from gambling or taking compensation from a
licensee or an applicant in Pennsylvania, according to spokesman Doug
Harbach. McNaughton said most of his winnings came from playing slot
machines in Las Vegas and stud poker in Atlantic City, N.J.

Monday, December 18, 2006

While European Countries Regulate Gambling the US Prohibits It

Spain has just announced plans to regulate Internet gambling. Italy has
already begun to regulate Internet gambling. The UK's new laws to regulate
Internet gambling will be implemented in 2007. The EU is putting strict
guidelines on European nations to protect against protectionism. And the
Bush led United States is sticking by its prohibitionist terms. The
consequences of the United States not getting into this market while the
market is hot might be detrimental to the future success of Internet
gambling in the US once the country ultimately reverses the UIGEA. Party
Poker, Ladbrokes, and many other major online casino, poker, sportsbook and
gambling companies are scrambling to Italy, Spain, and the Uk. They are all
searching for the place that offers them the most lucrative terms and
standards for operation. According to an analyst from Shaw and Rays, an
Internet gambling specialist firm based out of Canada, "the more competition
between European countries, the better the circumstances will be for the
Internet gambling companies." John LeQuire, the analyst from S&R, explained
that if the US doesn't regulate soon the market may be too saturated once
they do decide to regulate. As for the Las Vegas companies who wish to get
in the game when America regulates, their success will depend on how long
after the rest of the world has been in business. "If the world gets used to
the brand names of the online companies based out of the EU," LeQuire said,
"the brand names of Vegas companies that are very valuable right now, may no
longer matter to regular players."

Using gambling revenue to pay for other needs is wrong

I don't understand the governor's agenda. I believe privatization is good,
but to use gambling as a source of revenue to pay for other needs is wrong.
Gambling needs to be removed from the government's protective umbrella. We
know wherever there is gambling there are vice and corruption; we also know
that reducing the size of government bureaucracy eliminates a source of
corruption. Is he trying to be all things to all people? He's too smart to
believe that. He should stay on the straight path.

Palu councillors caught gambling

Six Palu municipal councillors were arrested Thursday and charged with
gambling. Police arrested the suspects in a hotel room and seized Rp 225,000
(US$25) in cash and playing cards. The councillors are being held for
questioning at Palu Police Headquarters. Officers identified the suspects as
Yos Sudarso, chairman of the Democrat Party in Palu, Arifin Labanu (Democrat
Party), Andi Indra Adil, Paharuddin Sumang and Aswandi (Golkar Party), and
Revi Arifin Pasau (National Concern Party). Police were acting on an
anonymous tip that a group of city councillors were gambling in a room at
the Sentral Hotel in South Palu. Palu Police chief Adj. Sr. Comr. Atrial
initially declined to comment on the arrests, but on Friday said police were
investigating the case and that the suspects would not receive any
preferential treatment. The chairman of the Golkar Regional Executive Board
in Palu, Rusdi Mastura, told The Jakarta Post he had asked police to handle
the case as they would any other criminal matter.

ONLINE GAMBLING AD RESTRICTIONS PASSED IN ONTARIO

Would-be online gambling advertisers in the Ontario province of Canada will
need to update their knowledge on what is and is not permitted following the
passage of a consumer protection bill containing advertising restrictions,
which was passed by the provincial legislature this week. According to an
assessment in p2pnet.net News by Michael Geist, who holds the Canada
Research Chair in Internet and E-commerce Law at the University of Ottawa,
the new legislation contains provisions prohibiting the advertising of
Internet gambling sites. The provisions underwent important changes at
committee level, however, so that the final bill looks somewhat different
from the one that was introduced in the fall. Geist writes that when first
introduced, the bill contained a blanket prohibition on advertising an "an
Internet site that operates an internet gaming business contrary to the
Criminal Code." The bill defined advertising as: (a) the promotion by print,
publication, broadcast, telecommunication or distribution by any means, of
information intended to promote the use of an internet gaming business, (b)
self-promotion and a contract under which one person obtains the services of
another to develop or distribute the advertisement, (c) a link in a website
intended to promote the use of an internet gaming business. However, after
the committee stage, the bill contained some important changes. While the
blanket prohibition remains unchanged, the definition of advertising has
been narrowed to instances where the advertising originates in Ontario or is
primarily intended for Ontario residents. In Geist's opinion, the positive
effect of this change will be to exclude the vast majority of Internet
gambling advertising, which neither originates in Ontario nor is primarily
targeted at residents of the province. The prohibition against linking has
also been narrowed by excluding links "generated as the result of a search
carried out by means of an internet search engine." In other words, Google
and other search engines won't be liable for links to gambling sites
generated through search queries.

Geist concludes that most Internet gambling sites are therefore unaffected,
unless they specifically target Ontario with their advertising. Instead,
there are two obvious effects.

Offline, it seems likely that Internet gambling newspaper and radio
promotion, common in some newspapers and on sports radio stations, will
disappear.

Online, Internet search companies and websites will likely refuse
advertisements that specifically target Ontario. Such targeting may occur
either by way of the promotion itself or by using geo-identifying
technologies.

This law may also capture Ontario bloggers and websites that focus on
Internet gambling. Those sites won't be able to feature Internet gambling
advertising and may even face liability for posting links to various
gambling sites.

Bingo parlor probed for gambling

Kannapolis bingo parlor is under investigation for illegal gambling after a
search by the North Carolina Alcohol and Law Enforcement agency. The Rowan
REACT Team Bingo at 1912 N. Main St. was investigated by officers Dec. 9.
Officers collected evidence from the game. The operators, Cherry and Bobby
Snipes, were ticketed for gambling, according to Rowan County Department of
Justice court records. The crime is a misdemeanor. Cherry Snipes was listed
as a secretary and Bob Snipes was listed as a chaplain in the report.
According to a search warrant, the Snipes were paying out offerings of more
than $2,500 in prizes during one bingo session. Court documents state that
officers received complaints about a game within the bingo parlor's normally
scheduled game. That game had a progressive jackpot, which is illegal and
constitutes gambling, the records state. Before the search Dec. 9, officers
had been called to the bingo parlor. Court records state that an undercover
officer went into the business Aug. 27 and purchased four packs of bingo
player sheets for $20. A document by Agent R.B. Putnam states. "During the
'early games' there were declared winners of these games. I never saw a
check wrote out at the counter, I never saw a check given to the winner, I
saw cash money exchanged between the counter and the bingo runners and the
runners paid cash to the winners of these games." Bingo is allowed in North
Carolina. But under the State of North Carolina Bingo Law bingo games are to
be held so that the maximum net proceeds are used by a charitable or
nonprofit group. "The only justification for this part is to support such
charitable, nonprofit causes," the law states. "And such purposes should be
carried out to prevent the operation of bingo by professionals for profit,
prevent commercialized gambling, prevent the disguise of bingo and other
game forms or promotional schemes." The maximum amount of prize in cash or
merchandise that can be paid for any one game of bingo is $500, the law
states. The most that can be paid out during a single session is $1,500.
Court records state that the Rowan REACT Team Bingo is alleged to have
offered or payed out more than $2,500 in prizes during one session of bingo.
During the search Dec. 9, officers collected $1,598.40 from the bingo game.
The cash was collected as evidence in the case. Records show that the Snipes
have a scheduled court date of Feb. 7 in Rowan County. Cherry Snipes said
that she called the North Carolina Alcohol Law Enforcement agency herself.
Snipes said that other bingo halls do the same type of activities she and
her husband are accused of and that prompted them to allow players to play
extra games, so that they wouldn't go to rival bingo halls.

Sunday, December 17, 2006

Video gambling machines could return to Indiana bars

The Indiana Licensed Beverage Association has proposed a bill that would
allow Cherry Master video gambling machines in bars. For-profit businesses
could have up to five machines, while nonprofit fraternal groups could have
up to 10. All machines would be taxed by the Indiana Gaming Commission. The
bill comes months after authorities confiscated video gambling machines from
bars across the region. Danyelle Cross, part-owner of Timber's Lounge, has
no problem with the idea of the machines coming back. "I absolutely think it
should be legalized," Cross said. She said customers have approached her and
suggested Timber's carry machines. Although she doesn't think the machines
would increase business significantly, pleasing the customer is important to
her. "They're used to having it, and you need to give the customers what
they want," she said. Dee Jernigan, a bartender at Stirling's, said the
machines can only be a good thing. "The more they drink, the more they play,
and the more money you make," Jernigan said. Jernigan used to work at bars
in Oklahoma, where the machines were legal. If the machines were legal here,
money would benefit the state, she said. "I look at it this way: I think
Indiana needs the money a lot more than what we do out in Oklahoma, so
that's what they need to do - they need to bring the machines back," she
said. The money isn't the only issue. Jernigan also wants customers to have
a good time at the bar.
"People get bored just sitting around drinking, you know, playing the
jukebox. They've got to have something else to do," she said.

Former Officer Admits to Protecting Gambling Ring

He took an oath to uphold the law. But Thursday, a former Honolulu police
officer went before a judge and admitted he helped protect an illegal
gambling operation on Oahu's North Shore. Flanked by his family and friends,
former Honolulu police officer Glenn Miram faces one of the toughest moments
of his life.
"It's killing him," Robert Prasser, Miram family friend, said. "It's been a
tough year. You know, he has lost his job and he wants to move on." Move on,
by admitting he broke the law. Miram was one of five police officers
indicted in April, following a federal probe into illegal gambling on Oahu's
North Shore. The indictment accused him of providing a Waialua gambling ring
that ran cockfights a heads-up on police raids. "One of the co-defendants,
who's a police officer, gave him a number of another co-defendant to give a
call to," William Harrison, defense attorney, said. "And my client,
unfortunately, made the call." In Federal Court, Miram admits he informed
one of the defendants "that the Gambling Detail would be down at the Waialua
fights that weekend." The judge asks, "You gave them advanced warning?" The
former officer replies, "Yes." "There was a lot of soul searching on his
behalf," Harrison said after the court hearing. "He spoke to his family. He
thought it would be the best thing for him to do is to take responsibility."
He pleads guilty to a conspiracy charge that carries a punishment of up to
five years in prison.

Saturday, December 16, 2006

New gambling commission

A new shadow Gambling Commission, led by Graham White, has been set up in
Jersey to prepare for the move to a more statutory Gambling Commission. The
other members of the commission are Peter Cruickshank and Jeremy Arnold. The
gaming industry in Jersey, with an excellent reputation as a well regulated
jurisdiction, is hoping to expand further and attract more investment to the
island. On top of this, the Commissions role will be to promote the region
as an attractive proposition for remote gambling companies and to ensure
that any potential harm is minimised, as well providing schemes to protect
the young and vulnerable. Graham White, who was chief inspector of the U.K's
equivalent commission from 1983 to 2005, well bring valuable experience to
the role as Jersey look to compliment the mainland U.K upon the introduction
of the new Gambling Act next September. Members will sit on the commission
for a maximum of three years, during which time it is expected that Jersey's
Gambling Commission Law and the Gambling Law will be changed, or at the very
least, debated.

La Vergne Police arrest Murfreesboro residents; others on gambling charges

An anonymous tip lead to the arrest of 22 people on gambling and other
charges and a gambling establishment was closed down in La Vergne Wednesday
night. The operation took place less than 75 yards from a church. Of the 22
arrested at 121E George Chaney Blvd, five were for felony charges while 17
were given misdemeanor citations. "We received an anonymous call that there
was gambling going on and when we went over there to do a welfare check, we
noticed the security camera on the outside of the building," LPD Lt. Ted
Boyd said Thursday morning. "Officers Russell Howell and Chip Davis knocked
on the door and the owners let them in. Apparently, the owners tried to
convince police that they had made a place for their friends to get together
and play poker." The games stated at 8:15 p.m. and reportedly would go on
until the next morning. There was a $200 entry fee to play, Boyd said,
noting they'd only been operating for about three to four weeks. Three of
the individuals - Steven Colbert, 42, of Shelbyville; Denny Kalinic, 33, of
Columbia and Cathy McPherson, 23 of Shelbyville - were charged with the
promotion of gambling and aggravated gambling. Two individuals ---Ashley R.
Hayes, 38, of Rockvale and Tyrone L. Jackson, 30, of Nashville -- were
charged with gambling and possession of drugs. Approximately 400 pills were
confiscated, along with nearly ½ pound of cocaine and a small amount of
marijuana. The pills were Oxycontin, Loratab, Xanax, Percoset and more.
Charged with gambling were Landace Clackner, 26, of Nashville; Ernest Milton
Darrett, 51, of Smyrna; Samuel B. King, 31, of Hermitage; Jefferson W.
Morrill, 36, of Nashville; Van L. Ho, 22, of Lebanon; Millard Austin, 28, of
Murfreesboro; Thomas James 31, of Smyrna; Robert Martin, 34, of Smyrna;
Jerry K. Shadowens, 41, of Smyrna; Rangsit T. Iamsaard, 37, of Murfreesboro;
Matthew M. Skaggs, 28, of Murfreesboro; Christopher S. Bissinger, 25, of La
Vergne; Russell A. James, 30, of Murfreesboro; Allison Johnson, 27, of
Antioch; Joycelyn Edwards, 27, of Antioch; Mark Pellatiro, 32, of Antioch
and Gary Armstrong, 48, of Nashville. In addition to the arrests, LPD
officers seized $15,063 in cash, two trucks - a 2005 Chevy Silverado 3500
and a Dodge Ram SRT 10 - two TVs, five guns, leather furniture, a
refrigerator (which was used to store alcohol and food), gaming tables and a
poker machine. Only the poker machine will have to be destroyed. If the
owners of the trucks aren't able to get their vehicles back, they - along
with the other items - will be sold at auction.

Ten officers from second and third shift responded to the call and
Vice/Narcotics and LPD's Crime Scene Unit were called in to assist and
process the scene.

According to Boyd, this is the largest bust by LPD officers on one call in
one night.

"I'm proud of our department for the hard work they did in making these
arrests and closing down this operation," Chief Steve Lindsay said. "This
was a major operation and we're glad we shut the games down before they
could possibly lead to more crimes within the city."

Germany imposes gambling monopoly

Sports betting machines in Germany got a reprieve - but only a temporary
one - when the German states postponed a plan to impose a state monopoly on
gambling, banning private lottery agents and sports betting companies. The
postponement is only until next year, when ministers will ratify proposals
to extend the states' monopoly for four years. The new law will take effect
in January 2008. In March of this year the Federal Constitutional Court
decided that the states can only insist on a monopoly if they amend their
marketing techniques for their lotteries to conform with gambling addiction
avoidance. The states have already taken action against some sports betting
companies, notably based in Austria.

Gambling operation revealed

A McDowell County pharmacist under federal indictment on money laundering
and gambling charges spoke freely to undercover Internal Revenue Service
agents about how he ran the gambling operation and skimmed profits from his
drug store, a federal search warrant affidavit unsealed Thursday revealed.
Saad Kamil Deeb, who owns and operates Citizen's Pharmacy in Welch, was
indicted last month by a federal grand jury on charges of conspiracy to
evade reporting about $1.7 million in income he received from allegedly
operating a gambling parlor, his own gambling profits and from skimming
$250,000 or more a year from the business for four or five years. Deeb's
accountant, Bluefield resident Charles "Bud" Donchatz, has been cooperating
with federal investigators for more than a year and introduced the
undercover agents to the pharmacist. Agents recorded a number of the
meetings, including one at Donchatz' office in February where Deeb admitted
he had been making deposits and withdrawals from a McDowell County bank in
amounts just below the $10,000 federally-required reporting mark, the
affidavit states. He also acknowledged doing Internet gambling, most of it
in Curacao, Netherlands Antilles, according to the affidavit. And, the
affidavit states, Deeb said he did not want to pay taxes on his profits.
"I'm
taking about a quarter of a million a year," Deeb is quoted as telling the
agent about skimming the pharmacy profits. "I don't like to report all this
sh- and pay taxes on it." But he also expressed reservations about his
alleged illegal activities in February and seemed to have the feeling IRS
agents were closing in on his activities. "I'm expecting any day they're
going to come," the undercover agent reported Deeb told him. Investigators
also went through the income tax returns of Deeb's former girlfriend,
Sherrie Hickson, and his friend, state liquor inspector Jimmy Kemal Hazemey,
the affidavit revealed. Both allegedly did banking and moved money around
for Deeb, though neither has been charged.

Ex-Minister Linked to Gambling Scandal

Prosecutors are tracing the bank account transactions of former Culture and
Tourism Minister Chung Dong-chea as they investigate suspicions that
government officials were bribed by businessmen looking for licenses to sell
gift vouchers used as payouts in an illegal gambling scheme. A former
assistant of Chung, identified only as Yoo, was arrested last month on
charges of taking 137 million won ($149,000) from executives of CS Club
Korea, one of the country's 19 companies authorized to issue the gift
certificates used at adults-only game arcades. ``We are looking into Chung's
financial transactions to confirm some suspicions. We have not found
anything as of yet worth commenting on,'' said an official from the Seoul
Central District Prosecutors' Office. ``We are looking into Chung's
financial transactions to confirm some suspicions. We have not found
anything as of yet worth commenting on,'' said an official from the Seoul
Central District Prosecutors' Office. Since the end of August, the
prosecution has mounted an investigation into allegations public officials
at the Culture Ministry and its sub-organizations were lobbied by companies
applying for licenses to sell game machines and gift vouchers. With the
investigation entering its fourth month, prosecutors have arrested more than
30 government officials, businessmen and members of organized crime units
involved in operating what were essentially gambling parlors. Baek Eeek, a
former director at the Culture Ministry arrested for taking 35 million won
from a gift voucher issuer, was sentenced to three years in prison and a
fine of 36 million won by the Seoul Central District Court Wednesday. Chung,
a lawmaker from the governing Uri Party, was at helm at the ministry from
2004 to March this year. During his tenure, the country saw the video slot
machine empire grew beyond recognition, with the ministry loosening business
restrictions on game arcades. Pressured by calls for an easier reviewing
process, the ministry, under Chung, introduced a permit system for companies
applying for licenses to sell the vouchers in March last year. The
certification process allowed any applying company to issue the vouchers by
meeting certain requirements in revenue and market coverage.

However, authorities were forced to scrap the new rating methods just three
months later, after it was found that some companies obtained licenses by
manipulating their sales records.

There have been suspicions that ministry officials rushed the introduction
of the permit system after being lobbied by the companies.

Prosecutors are pushing their probe further into politicians, planning to
summon Uri Party lawmaker Cho Seong-lae sometime next week for questioning
about his relationship with the owner of Friends C&M, one of the voucher
issuers. Investigators are currently tracing his bank account transactions.

Prosecutors could also call in Grand National Party (GNP) lawmaker Park
Hyung-joon for the second time next week. Park was summoned Wednesday after
it was found that he received 100 million won from a company issuing the
vouchers to fund a culture event he chaired.

The Culture Ministry's decision in 2002 to allow arcades to provide certain
types of gift certificates as payouts, has been widely blamed as the cause
of the rapid expansion of gambling, with most arcades unlawfully trading the
vouchers for cash.

Before the police clampdown in August, government authorities counted about
20,000 adults-only game arcades doing business around the country, most of
them providing gambling games _ that is double the number of 24-hour
convenience stores.

The recent gambling scandal first erupted in late July when prosecutors
indicted the chief executives of the two companies that manufactured and
distributed ``Pada Iyagi'' (Sea Story) video slot machines.

Most of the machines were illegally reprogrammed to allow higher payouts
than the legal limit of 20,000 won. ``Pada Iyagi'' is the country's most
popular slot machine game by far with more than 45,000 units sold.

Speculation of influence peddling mounted when it was found that Roh Ji-won,
one of President Roh Moo-hyun's nephews, worked as an executive of a company
acquired earlier this year by Zico Prime, the game's distributor.

Friday, December 15, 2006

Gambling with no guarantees: Casino may be years, yards away from Duquesne

With only seven days until the Pittsburgh Gaming Commission awards a gaming
license to one of three slots competitors, concerns about traffic problems
have risen to the forefront. City officials are concerned that, regardless
of the casino location, congestion and parking issues will be major problems
because of Pittsburgh's many bridges, tunnels, rivers and outdated highway
networks. Isle of Capri has pledged $290 million toward the project, which
includes building a new arena to keep the Penguins in Pittsburgh. The
proposed site of the temporary casino would be built in a parking lot above
Mellon Arena and below Crawford Square, less than a half-mile from Duquesne
University. According to a Dec. 10 issue of the Pittsburgh Post-Gazette,
however, Isle of Capri has estimated that only 1.1 people will be in each
car arriving at its proposed Uptown site, as compared with 2.3 and 2.35
people at the other potential North Shore and Station Square casinos,
respectively. This could mean the majority of those who would access the
Uptown location would come via public transportation. Liuetant Lee Speer
with Duquesne Public Safety, said he believes a casino nearly would not
cause parking or traffic problems on or near campus. "We're private property
and people know that," he said. In addition to the congestion problems that
could arise, Duquesne officials and students have strong opinions about the
overall impact of the potential addition to the community. In a February
2006 press release, President Charles Dougherty said that, since a third of
Duquesne's 10,000-student population live on the Bluff, the university is
concerned with the idea that easy access to a casino could lead to gambling
problems. "We don't want them exposed to a slots parlor within a five-minute
walk of campus," Dougherty said when he first expressed his disapproval for
the Isle of Capri plan to put a slots parlor close to Duquesne University.
"As we must locate a casino in Pittsburgh, let it be far away from large
concentrations of students."

Although Dougherty's concerns are reasonable, some have questioned his
motives.

Duquesne University President Charles Dougherty made waves in the city last
semester by being one of the first prominent figures in Pittsburgh to oppose
the Isle of Capri proposal on grounds that it would be detrimental to the
university.

However, Dougherty's disapproval was met with claims from community members
who accused Duquesne University of a conflict of interest on grounds that
Duquesne board of directors member Glenn Mahone has a 25 percent stake in
the competing Forest City Enterprises proposal, which plans to build in
Station Square.

A Pennsylvania lawyer and Duquesne alumnus, speaking under condition of
anonymity, seems to think that there is another reason for Duquesne's
outcry.

"It's all about the property values," he said about the area surrounding the
university. "If that casino gets put in, [Duquesne] won't be able to buy up
all that land and keep it under non-profit status."

The other two potential sights for the casino would be a 10-minute ride by
bus or the T.

"It's not like students aren't going to go gamble if the casino is somewhere
else," he said.

During a visit to a Duquesne University political science class in Spring
2006, Allegheny County Executive Dan Onorato admitted he is not a huge fan
of gambling in Pittsburgh, but did not see the need for Dougherty's
disapproval of the Isle of Capri proposal.

"Sure, there will be some adverse affects, but I'm a pragmatist. I'm sure [a
casino] could help the city in some ways," Onorato said. "I have a hard time
believing students wouldn't be able to find the Casino if it was in the
South Side."

Others, like Tom Gerlach, trust that Dougherty's remarks are genuine.

"From the standpoint of the University, [opposition to the casino] makes a
lot of sense," said Gerlach, a senior Duquesne University supply chain
management major. "You can't argue with facts."

A resident of the Hill District, Gerlach already sees the crime and
prostitution that government officials fear would envelope the area if a
casino is built Uptown.

"I'm sure that's the main concern of the University," he said.

Audrey Guskey, a marketing professor at Duquesne, has mixed opinions on a
potential casino's influence in the Hill District.

"It could improve Uptown," she said. "But I don't approve of gambling coming
to Pennsylvania."

Speers agreed.

"In my professional opinion, I wouldn't like to see it."

Public affairs officials said no further comments have been made by the
university regarding the issue.

German states set to ban Internet gambling

Germany's federal states plan to ban Internet gambling, according to draft
documents to be discussed by the country's state premiers on Wednesday.
Reports in the German media are suggesting that Germany's states will meet
this week to outline plans for banning Internet gambling in the country.
Despite pressure from the European Commission to open up Europe's gambling
market to competition, ministers from most states want to sign off on new
rules aimed at protecting their lucrative monopoly as lottery operators,
said Handelsblatt. German lottery company Fluxx AG has joined fellow online
compatriots Tipp24 AG in saying
that it may have to abandon its native market if the country's 16 states
pass a new law effectively banning private operators. Fluxx's CFO Stefan
Haenel said that the company would not give up on Germany without a fight,
but warned that it would be going to 'use opportunities' outside the
country. It was also reported that the mainly private firms, such as Tipp24
and Fluxx, would be granted a one-year transition period. The ministers will
meet in Berlin on Wednesday morning.
The state of Saxony and two other states imposed a ban earlier this year on
commercial betting. That was directed mainly at Austrian Internet betting
firm bwin.com whose German unit is the country's biggest commercial
bookmaker. Bwin and its peers are facing increasingly stringent regulations
in the United States and Europe, where governments are curbing Internet
gambling to protect customers and state-run lotteries. The European Union's
commissioner for internal markets and services has already said that the
current German state monopoly breaches EU law and said that the government
needs to pass laws that apply to everyone, both private companies and
state-run gambling operations, equally.

Russia proposes far-flung gambling zones

In post-Soviet Moscow, hundreds of neon-spangled casinos and slot-machine
halls illuminate a city once dominated by Stalin-era skyscrapers and
golden-domed Orthodox Churches. Under the proposed law, the gambling halls
would be shut down by 2009. Casinos would be allowed only in four gambling
zones located in less populated areas of the country, including two zones in
European Russia, one in Siberia and one in the Russian Far East. The Kremlin
has yet to name the specific zones. Kaliningrad, a Russian enclave tucked
between Poland and Lithuania, the Black Sea resort of Sochi and the Siberian
region of Lake Baikal are a few of the areas being proposed. Gambling
industry officials say the sweeping legislation would cripple a
$6-billion-a-year business. In Moscow alone, there are 540 gambling
businesses, from large casinos to small slot machine halls tucked along
alleys. Creating the four zones would require significant investment and
time in a country where red tape and overwhelming bureaucracy often stall
business projects. Many gambling industry executives say the two-year
deadline to close casinos in the cities and rebuild them elsewhere would be
impossible to meet given Russia's underdeveloped hospitality industry,
dilapidated roads and Soviet-era airports outside of the large cities. "It
certainly took more than one or two years for (Las Vegas) to develop," said
Yevgeny Kovtun, vice president of the Gambling Business Operators
Association. Even if the federal government provided incentives for
investors, building the Vegas-styled zones "will require at least 10 years,"
he said. Supporters of the bill say the proposed zones are necessary to
protect the Russians from the evils of gambling. In October, President
Vladimir Putin likened gambling to "the spread of alcoholism." Lawmakers
also accuse the gambling industry of taking advantage of poor Russians.
"Lonely mothers, low-paid workers and people who see no future for
themselves - these are the victims we are obliged to protect from the vices
of gambling because they are trapped by huge advertising," said Alexander
Lebedev, a parliament member and billionaire businessman who has lobbied for
gambling reform for several years. "Those in the gambling business are
highly unethical. I think gambling is not a normal business and is certainly
one that we don't require in this society."

In Soviet times, gambling was outlawed, seen as a capitalist vice in which
only the greedy indulged.

But 15 years after the fall of communism and with a rising economy, Russia
has provided fertile ground for the gaming industry. Slack regulations and
licensing fees of less than $20 made it easy for just about any entrepreneur
to install a slot machine in a corner grocer or kiosk. By the late 1990s,
gambling had become a hobby of both the elite, who visit the top-notch
Moscow casinos, and the working class, who can easily slip into a
neighborhood slot machine hall.

The gaming industry contributes about $1 billion of tax revenue each year to
the Russian government.

Casino owners say they have been calling for a change in the unregulated
gaming industry for years. Higher license fees and a gaming commission to
oversee regulations would better serve the industry and be more feasible
than forcing all casinos to relocate to remote areas of the country, they
argue.

The proposed zones will be "like going from one extreme to the other," said
Michael Boettcher, an Englishman and former blackjack dealer who moved to
Moscow in 1992 and now runs some of the city's top casinos. His company,
Storm, also manages Moscow's popular slot machine hall chain, Super Slots.

"The federal government just came in and let the hammer drop instead of
listening to what we had been suggesting for years," he said.

Lebedev and other lawmakers say they expect the bill to pass before the end
of the year.

Opinion polls show support for the proposed law. In an October survey
conducted by the All-Russian Opinion Poll Center, 65 percent said they were
in favor of removing casinos from city centers and relocating them to
special zones.

For gamblers such as Artur Luzin, 24, a waiter who frequents the tables and
slot machines of the Golden Peacock Casino in central Moscow, closing the
city's casinos will be a disappointment.

"These places make the city an attractive place to visit for young people
like me," he said. "I agree that they should close down the smaller, seedier
places. But let us spend our money they way we want."

In post-Soviet Moscow, hundreds of neon-spangled casinos and slot-machine
halls illuminate a city once dominated by Stalin-era skyscrapers and
golden-domed Orthodox Churches. Under the proposed law, the gambling halls
would be shut down by 2009.

Casinos would be allowed only in four gambling zones located in less
populated areas of the country, including two zones in European Russia, one
in Siberia and one in the Russian Far East.

The Kremlin has yet to name the specific zones. Kaliningrad, a Russian
enclave tucked between Poland and Lithuania, the Black Sea resort of Sochi
and the Siberian region of Lake Baikal are a few of the areas being
proposed.

Gambling industry officials say the sweeping legislation would cripple a
$6-billion-a-year business. In Moscow alone, there are 540 gambling
businesses, from large casinos to small slot machine halls tucked along
alleys.

Creating the four zones would require significant investment and time in a
country where red tape and overwhelming bureaucracy often stall business
projects. Many gambling industry executives say the two-year deadline to
close casinos in the cities and rebuild them elsewhere would be impossible
to meet given Russia's underdeveloped hospitality industry, dilapidated
roads and Soviet-era airports outside of the large cities.

"It certainly took more than one or two years for (Las Vegas) to develop,"
said Yevgeny Kovtun, vice president of the Gambling Business Operators
Association. Even if the federal government provided incentives for
investors, building the Vegas-styled zones "will require at least 10 years,"
he said.

Supporters of the bill say the proposed zones are necessary to protect the
Russians from the evils of gambling. In October, President Vladimir Putin
likened gambling to "the spread of alcoholism."

Lawmakers also accuse the gambling industry of taking advantage of poor
Russians.

"Lonely mothers, low-paid workers and people who see no future for
themselves - these are the victims we are obliged to protect from the vices
of gambling because they are trapped by huge advertising," said Alexander
Lebedev, a parliament member and billionaire businessman who has lobbied for
gambling reform for several years. "Those in the gambling business are
highly unethical. I think gambling is not a normal business and is certainly
one that we don't require in this society."

In Soviet times, gambling was outlawed, seen as a capitalist vice in which
only the greedy indulged.

But 15 years after the fall of communism and with a rising economy, Russia
has provided fertile ground for the gaming industry. Slack regulations and
licensing fees of less than $20 made it easy for just about any entrepreneur
to install a slot machine in a corner grocer or kiosk. By the late 1990s,
gambling had become a hobby of both the elite, who visit the top-notch
Moscow casinos, and the working class, who can easily slip into a
neighborhood slot machine hall.

The gaming industry contributes about $1 billion of tax revenue each year to
the Russian government.

Casino owners say they have been calling for a change in the unregulated
gaming industry for years. Higher license fees and a gaming commission to
oversee regulations would better serve the industry and be more feasible
than forcing all casinos to relocate to remote areas of the country, they
argue.

The proposed zones will be "like going from one extreme to the other," said
Michael Boettcher, an Englishman and former blackjack dealer who moved to
Moscow in 1992 and now runs some of the city's top casinos. His company,
Storm, also manages Moscow's popular slot machine hall chain, Super Slots.

"The federal government just came in and let the hammer drop instead of
listening to what we had been suggesting for years," he said.

Lebedev and other lawmakers say they expect the bill to pass before the end
of the year.

Opinion polls show support for the proposed law. In an October survey
conducted by the All-Russian Opinion Poll Center, 65 percent said they were
in favor of removing casinos from city centers and relocating them to
special zones.

For gamblers such as Artur Luzin, 24, a waiter who frequents the tables and
slot machines of the Golden Peacock Casino in central Moscow, closing the
city's casinos will be a disappointment.

"These places make the city an attractive place to visit for young people
like me," he said. "I agree that they should close down the smaller, seedier
places. But let us spend our money they way we want."

Duma names locations of gambling zones

The committee on economic policy under the State Duma lower house of the
Russian parliament recommend the house to approve the second reading of the
amendments to the gambling bill, specifying the locations of gambling zones.
The gambling zones will be located in the Kaliningrad region, the Altai
republic, the Maritime territory and on the borders of the Rostov region and
the Krasnodar territory. The presidential bill whose first reading was
approved by the State Duma on November 15, envisions establishment of a new
regime of state regulation of gambling business. It also stipulates that the
country cannot have more than four gambling zones functioning simultaneously
in its territory. The gambling zones will be of two types - "residential"
and "special" zones. In a residential zone, a casino should be allotted no
less than 800 square meters and 100 square meters for gambling machines,
while "special" gambling zones should be located beyond residential areas. A
gambling center is authorized to begin activities, provided it is given a
special license issued for a term of five years. The casino bill also
envisages certain restrictions on casino activities and bans underage
persons from gambling. Only Russian juridical entities backed by non-
governmental and non -municipal juridical entities with the assets worth no
less than 600 million roubles may organize gambling centers in Russia, the
bill says. All the gambling institutions that do not comply with the new
bill should be closed as of July 1, 2007. All the casinos that conform to
the bill may continue activities on the Russian territory without the
special license until January 1, 2009. President Vladimir Putin ordered
lawmakers and the Cabinet to put an end to the mushrooming gaming machines
and gaming halls in the country after a televised interview with Russian
citizens in September 2005. Putin, in fact, implemented his instruction
himself, by submitting a new bill on gambling to the State Duma on October
6. The document sets tough rules, tested in many countries, aimed at the
maximum weakening of the negative social consequences of this business and
its decriminalization.

Thursday, December 14, 2006

Put a hold on gambling

This letter is to confirm a desire by people across the state for a
moratorium of at least a year on slots licensing. Pennsylvania citizens have
been put at a disadvantage from the outset re slots and casinos. The lack of
transparency has been a serious problem from the beginning and continues as
the Gaming Board rushes to hand out these licenses. Gambling is the kind of
enterprise that calls for ultimate transparency. Gambling legislation should
have maximum citizen input. A moratorium may provide us that input. An
executive order for at least a year's moratorium on slots licenses would
indicate your concern for the health, safety and well-being of the citizens
our government is to protect. The National Gambling Impact Study Commission
recommended against bailing out tracks with slots, and called for a pause in
gambling expansion so the impact could be studied. We don't even have an
independent study on how gambling has already affected our citizens,
communities and the state. A moratorium would offer a chance for this and
allow for a prudent discussion of gambling expansion or rollback. A recent
report from Nova Scotia shows that at least half of the domestic violence
cases involved gambling. This is a red flag for those concerned with
reducing crime. An independent study shows the per capita costs of a casino
to be $190 and the per capita benefits at $34 (IF the gambler is not local)!
This kind of information is critical to the social and fiscal well-being of
those who have to pick up the gambling tab and for expansion decisions.
Communities targeted by gambling interests made citizens feel like they are
under siege. Invasion should not be the way that casinos come into
communities. A moratorium would also allow for changes to Act 71 that might
result in casino license fees having to be returned, saving litigation
against the state.

Pub's gambling licence suspended

This is the first time the commission has suspended a pub gaming machine
operator. Earlier this year it suspended the Dunedin Casino for two days.
The Casino was found to have breached the Gambling Act by turning a blind
eye to a problem gambler who gambled away $6.6 million over three years -
much of it in money stolen from her employer. The Whitehouse Trust used
$33,000 for non-community based payments including contributing to a
Papakura mayoral campaign, to pay for its venue manager, Roger Garrick, to
attend an Australasian Gaming Expo, and for a grant to the Ardmore Tenants'
Association for challenging noise restrictions on the Ardmore Aerodrome. The
payments, which breached the Gambling Act or licence conditions, were
identified in an audit of the trust's gaming operations.
The Department of Internal Affairs acting director of gambling compliance,
Greg Crott, said the Gambling Commission's decision was a good reminder to
all societies of their responsibilities. "The money raised by the gaming
machines is held in trust by societies for the community and is destined to
benefit a range of activities identified as authorised purposes under a
society's licence conditions," Mr Crott said.
AdvertisementAdvertisement"Societies can claim expenses for their operations
but they must be actual, reasonable and necessary and we scrutinise these
carefully during audits."

Sibling rivalry halts Macao gambling IPO

Winnie Ho claims Sociedade de Turismo e Diversões de Macau owes her about 3
billion Hong Kong dollars, or $386 million, in dividends for the past five
years for her 8 percent stake. Winnie, 83, has filed more than 30 lawsuits
against her brother over alleged debt, defamation and the shareholding
structure of the companies. "We don't need all these lawyers if he plays by
the rules and the law and pays me back the money he owes me," Winnie Ho said
in an interview with Bloomberg television. "But that's just Stanley, always
thinking he can just walk over anybody." Sociedade de Turismo's
casino-operating unit has delayed plans to raise 15 billion dollars selling
shares in Hong Kong because of the court actions. The Macao casino market
has boomed since Ho's four-decade monopoly ended in 2002, as Las Vegas Sands
and Wynn Resorts built casinos and tourists flocked from mainland China.
Stanley Ho's law firm, Herbert Smith, said in a letter that he and his
company "refute entirely all of Madam Winnie Ho's allegations." Stanley Ho
will not comment further because of ongoing legal proceedings, the letter
said. A spokeswoman for Stanley Ho, Janet Wong, did not immediately respond
to an interview request. Winnie Ho helped run the company's casinos for 25
years before being fired as executive director in December 2001. She alleges
that shareholder meetings held by Sociedade de Turismo were improperly
convened. Stanley Ho has said the company lost the shareholders' registry.
Stanley Ho tried to buy his sister's stake in 2005 "at a very unreasonable
price," she said in the interview on Dec. 5. "So I told him 'why don't I buy
out your share instead.' He claimed he was not optimistic about the
company's future." Sociedade de Turismo controls 80 percent of Sociedade de
Jogos, or SJM, which operates the casinos. SJM had 5.56 billion patacas, or
$690 million, of net income in 2005, up from 4.04 billion patacas a year
earlier, according to the company's filing to the Macao Gaming Inspection
and Coordination Bureau. The company paid 11.4 billion patacas in dividends
to shareholders last year. Stanley Ho's stake in Sociedade de Turismo is
about 25 percent, though the family owns more. The Forbes 2006 Rich List
estimates his net worth at about $6.5 billion.

Macao, the only place in China where casinos are legal, awarded casino
licenses to a Las Vegas gambling tycoon, Stephen Wynn, and a Hong Kong
property developer, Lui Che Woo. Each license holder can issue a
subconcession license. Lui's was given to Las Vegas Sands, the world's
biggest casino company by market value.

Macao, a former Portuguese colony, was returned to China in 1999. Since then
there has been an influx of gamblers from mainland China.

The Macao economy expanded 11.4 percent in the third quarter. The city, a
special administrative region of China, attracted more mainland Chinese
visitors on individual visas than Hong Kong for the first time in September,
government statistics show.

SJM's share of Macao gambling revenue plunged to about 59 percent in less
than three years since Las Vegas Sands opened the first foreign-controlled
casino in the city, Anil Daswani, an analyst with Citigroup in Hong Kong,
wrote in an Oct. 12 report.

"We expect SJM to suffer market share losses for the rest of the year,"
wrote Daswani. SJM "is the biggest loser from the liberalization of the
industry."

The SJM market share may drop to 42 percent by the end of next year and to
20 percent by 2009, Daswani wrote.

"I know there's a lot of competition coming, but there's still a role for
SJM," Winnie Ho said. "The most important thing is for Stanley to give up
control of the company and get out."

Macao is vying with the Las Vegas Strip as the world's biggest casino
gambling hub. Macao took in 45.1 billion patacas in gross gambling revenue
in the first 10 months of this year, according to the government. The Las
Vegas Strip revenue for the year ended June 30 was $6.39 billion, according
to the Nevada Gaming Control Board.

Wynn Resorts earned $45 million in sales from the first 25 days of
operations of its debut Macao casino. The $1.2 billion Wynn Macao, which
opened Sept. 6, derived more than 81 percent of revenue from 212 gambling
tables.

New eCOGRA team to monitor UK online gambling

A new team has been established to monitor online gambling in the UK.
eCOGRA's new team will monitor all 91 online casinos and 21 poker rooms
accredited with the body's Play It Safe seal to ensure online gambling in
the UK is as safe as possible. The new four-member team, all of whom have
experience in the gambling and audit industry, will conduct on-site
assessments of online casinos and poker rooms to ensure casinos adhere to
its standards and regulations.
They will take over the role previously outsourced to third party auditing
firms. eCOGRA's independent directors, meanwhile, will continue to oversee
the accreditation process and compliance issues, while also administering
the assessment process. Andrew Beveridge, eCOGRA's chief executive,
explained: 'Although the auditors have provided us with an outstanding
service in the past, we now have the necessary skills, reputation and player
recognition to undertake this work ourselves, giving it our closer and more
immediate attention. 'This is in line with the way other independent
standards organizations and regulators operate. These dedicated resources
will allow us greater flexibility to meet the continually varying demands of
our industry and to respond to the players' demands for a safe and rewarding
online gambling experience.'

Germany to ban internet gambling

Germany's federal states plan to ban internet gambling, according to draft
documents to be discussed by the country's state premieres on Thursday.
Despite pressure from the European Commission to open up Europe's gambling
market to competition, ministers from most states want to sign off on new
rules aimed at protecting their lucrative monopoly as lottery operators. It
also reported that the mainly private firms, such as Tipp24 and Fluxx, would
be granted a one-year transition period. The ministers will meet in Berlin
on Thursday morning. The state of Saxony and two other states imposed a ban
earlier this year on commercial betting. That was directed mainly at
Austrian internet betting firm bwin.com whose German unit is the country's
biggest commercial bookmaker. Bwin and its peers are facing increasingly
stringent regulations in the US and Europe, where governments are curbing
Internet gambling to protect customers and state-run lotteries.

Alberta gambling losses program not enough to cure addiction

Treatment program aimed at managing their addiction rather than quitting
can help problem gamblers cut their losses by hundreds of dollars a month,
says a new report. But health officials in north-central Alberta say it's
tough finding enough people to sign up. A year-long review by the Capital
Health Region in Edmonton found the Gambling Decisions program developed in
Alberta can help reduce average monthly losses from $832 to $69. It's the
second trial of the program which was originally developed in 1998. About
eight per cent of Albertans are problem gamblers. "We want to reach more
people with this program," Dr. Gerry Predy, the region's medical health
officer, said Tuesday. "We want to help them in the early stages of their
addiction before it is too late."

Wednesday, December 13, 2006

Internet Gambling at Casinos, Poker Rooms, and Sportsbooks is Safe

Internet gambling has not diminished in popularity since the United States
passed the Unlawful Internet Gambling Enforcement Act in October of 2006,
however, many people who enjoy playing at online casinos, poker rooms, and
sports books are seeking information on whether it is legal and safe for
them to play online from places like their local newspaper, and many are
receiving wrong information in reply. One such question recently asked to an
editor of a Miami, Florida paper was 'is it safe to play online', which the
editor replied with the answer that now that BetOnSports has run away with
money, players can no longer trust online offshore operators. Although it is
true that BetOnSports screwed over their players, they are merely one
example of the 2,300 gambling sites online and should not be seen as the
norm of the industry. When the gambling bill passed and London companies
bailed out of the US market, they did NOT screw over their players. The
major gambling operators, such as 888.com, Party Poker, and others walked
away gently from the US market after respectably refunding every US player.
Even the shadier casinos that are operated by Playtech software paid out
their players before they left the market. BetOnSports was an individual
case in which their executives were arrested and detained in the US, as a
result they shut down their business and ran for cover, screwing over
everyone in their path. That is an extremely atypical case. So to answer the
question that many non-addicted regular US gamblers who simply enjoy a bit
of online gambling entertainment every once in a while have, 'is online
gambling still safe', this author is saying a resounding 'yes'. Internet
gambling is still a competitive market where if a casino were to cheat a
player they would go bankrupt and be blacklisted so fast it would make a
dog's head spin.

Ex-mobster pays big for scams

Michael Franzese's hand was cut and bleeding, symbolic of the blood covenant
he had entered into. In his cupped palms burned a prayer card, a saint lit
aflame in front of a ring of men that was to become his lifelong
brotherhood. In a darkened room he heard these words: "Your allegiance to La
Cosa Nostra is bound by blood. Should you ever violate this oath your blood
will be shed." It was Halloween 1975. At 24, Franzese was no longer just a
young man, he was a sworn member of the Colombo crime family - a mobster. "I
vividly remember that night," he said. "I became a part of what my dad was a
part of, and it meant a lot. I belonged to a union of men. It was
exhilarating." At the height of his mob involvement, Franzese's gas tax
schemes and sports gambling scams brought in between $6 million and $7
million a day. In 1985 he was indicted on charges of racketeering,
extortion, embezzlement and conspiracy. He served less than four years of
his 10-year prison sentence, but was sent back in 1991 for violating
probation.

Ex-mobster pays big for scams

Michael Franzese's hand was cut and bleeding, symbolic of the blood covenant
he had entered into. In his cupped palms burned a prayer card, a saint lit
aflame in front of a ring of men that was to become his lifelong
brotherhood. In a darkened room he heard these words: "Your allegiance to La
Cosa Nostra is bound by blood. Should you ever violate this oath your blood
will be shed." It was Halloween 1975. At 24, Franzese was no longer just a
young man, he was a sworn member of the Colombo crime family - a mobster. "I
vividly remember that night," he said. "I became a part of what my dad was a
part of, and it meant a lot. I belonged to a union of men. It was
exhilarating." At the height of his mob involvement, Franzese's gas tax
schemes and sports gambling scams brought in between $6 million and $7
million a day. In 1985 he was indicted on charges of racketeering,
extortion, embezzlement and conspiracy. He served less than four years of
his 10-year prison sentence, but was sent back in 1991 for violating
probation.

8 arrested in illegal gambling game

Tampa police arrested eight people Sunday afternoon near Raymond James
Stadium, accusing them of running an illegal lottery game. The game promised
customers a chance at an Xbox or a stuffed animal simply by guessing the
right number on a ball, said Tampa police Sgt. Bill Todd. Plainclothes
officers working at the Tampa Bay Buccaneers game spotted the gambling
operation. The operators set up a booth just southeast of the stadium at
3430 W Douglas Ave., selling chances, police say. Under state law, such
games that involve no skill are illegal, a misdemeanor offense. Police think
the game operators travel around the country. Investigators found gambling
receipts totaling $8,505. All arrested were operating the booth or passing
out promotional fliers, Todd said. Seven of those arrested face a
misdemeanor charge of playing a game of chance, jail records show. Thomas
Davis, the game booth's manager, faces a felony charge of keeping a gambling
house, according to an arrest report.

Group gears up to oppose Lehigh Valley gambling plan

A group opposed to the development of a Lehigh Valley slots parlor is
gearing up to monitor plans to build a casino on the former site of
Bethlehem Steel Corp. The Bethlehem Defense Fund last week announced plans
to hire attorneys, engineers and traffic consultants to keep an eye on the
Sands BethWorks Gaming LLC plan to build a casino. Bethlehem attorney James
D. Rawlings II was retained by the group with Allentown attorney Timothy T.
Stevens. Rawlings said the goal is to block the Sands from getting a state
casino license. "The group retained us in order to, shall we say, pursue all
possible avenues" with respect to preventing gaming and casinos in the area,
Rawlings said told The Express-Times of Easton. Should the Pennsylvania
Gaming Control Board choose the Sands proposal from among five applications
for two available licenses, Rawlings promised "a very close and meticulous
oversight of any and all operations as relates to the city of Bethlehem."

Cellphone betting a ringtone away

Online and cellphone gaming will become legal for the first time in SA if a
draft amendment bill adopted by the cabinet last week is finally passed into
law. The South African gambling industry has been frustrated by the length
of time it has taken government to come up with regulations to legalise
internet gaming. Foreign operators, particularly British operators, have
been waiting for internet gaming to be legalised so that they can enter the
domestic market, while provincial governments have been losing out on an
additional source of tax revenue. The draft bill proposes a licensing system
for both the players and the online gaming websites. The manner in which
gaming proceeds would be taxed still had to be determined, trade and
industry deputy director-general Astrid Ludin said yesterday. She said a key
challenge in drafting the proposed legislation was to find a way to
effectively regulate anything on the internet and how to prevent
money-laundering. Additional resources would be required for the proposed
regulations to be enforced by the National Gambling Board. The department
also had to look at the economic effect of interactive gambling and attempt
to restrict access to a select audience, which would exclude young people. A
proposed way of limiting the scope of online gambling would be to make it
illegal for advertisers to advertise on gambling sites, Ludin said.
Interactive gambling was outlawed by the National Gambling Act of 2004
because government considered that more time was needed to conduct research
into this form of gaming, which has assumed massive proportions worldwide.
The act gave Trade and Industry Minister Mandisi Mpahlwa two years to draw
up regulations to govern internet gambling, which will be regulated in terms
of the proposed Gambling Amendment Bill. The long-awaited regulations stem
from a report compiled by a National Gambling Board committee and the
recommendations of a national gambling policy committee consisting of
Mpahlwa and the provincial MECs responsible for gambling.

Protesters arrested outside Pa. gambling board headquarters

Eighteen people were arrested today during a nonviolent protest outside the
headquarters of the Pennsylvania Gaming Control Board after they arrived to
conduct a search for information about proposed gambling halls in
Philadelphia. The activist group Casino Free Philadelphia organized the
event to draw attention to its claim that the board has not released
sufficient information about the slot-machine parlors that could be located
near its members' homes. "They have a negative impact on neighborhoods and
families," said protester Morgan Jones, of Philadelphia's Fishtown
neighborhood, as he was led away in plastic zip-tie handcuffs. "We feel that
these were allowed in the dead of night without any public input." About 50
demonstrators, including students from a Philadelphia charter school,
attended the event, chanting such slogans as "Hey, hey, ho, ho, the public
has a right to know." Demonstrators read aloud from a "citizen search
warrant" as they sought entry to the gaming board's offices, which are in a
privately owned office building across the street from the Capitol. Security
officials kept the protesters out of the agency's fifth-floor offices by
closing a set of glass doors in front of the elevators. Demonstrators
remained at the building's security desk, and police arrested those who
ignored their requests to leave. Harrisburg City Police Capt. Pierre Ritter
said those arrested were being charged with disorderly conduct and released.
A Casino Free Philadelphia organizer, Anne Dicker, said the event went
according to plan.

Gaming board spokesman Doug Harbach said the protesters were not allowed to
go inside the agency's offices because they intended to search the offices
for documents, which Harbach said was illegal.

Harbach contends the agency has released much of what the protesters were
seeking, such as transcripts of public hearings on slots licenses and the
public presentations by slots applicants.

The gaming board plans to vote next week to award up to 11 licenses to
operate slots parlors. There are five applicants for two licenses set aside
for Philadelphia.

Asked Friday about protests against the gaming board and slots parlors,
gaming board chairman Tad Decker said the board understands that the slots
parlors will have an impact on communities, but he said the protests will
not have an effect on the voting.

He also said the board will not put off the vote to allow for public comment
on the final proposals by the slots applicants.

"At the end of the day, we've been picked to vote and we're going to fulfill
our statutory obligation to vote," Decker said.

Online gambling poised to pull $528bn

Internet gaming is now the fastest growing segment of internet commerce,
according to a report from Gamingpublic.com, an industry trade publication.
Revenue in the sector is growing at a rate of 22 per cent per year.
Gamingpublic.com cited a Merrill Lynch study that concluded the global
internet gaming market could reach - wait for it - $528bn annually by 2015.
Although the market as a whole is currently estimated by most analysts to be
between $12bn and $30bn per annum, and overall growth is strong, fallout
from the Unlawful Internet Gambling Enforcement Act passed by the US
Congress last summer continues to plague the industry. Sportingbet PLC, one
of the leading British companies in the gaming industry, recently posted a
$471m loss as a result of the closure of its American operations.
After its CEO, Peter Dicks, was detained in New York by American
authorities, Sportingbet PLC unloaded its American operations for a mere $1.

Tuesday, December 12, 2006

SA regional gambling 'excessive'

A report has found there are too many gambling machines in South Australian
regional areas and it is having a negative effect on communities. The Centre
for Economic Studies tabled the report at a Provincial Cities Association
meeting on Friday. It found the state-wide reduction in the number of poker
machines has not reduced problem gambling in country areas. Chief executive
Ian McSporran says the association is getting final comments on the report
from country councils and will ask the Independent Gambling Authority to
address the problem. "The number of gaming machines within provincial cities
has been excessive as compared to those per capita in the Adelaide
metropolitan area and we see it as a regressive taxation on the people," he
said.

Lawyer for James Giordano Sees Flaws in Queens DA "Gambling" case

When James Giordano and 24 others were indicted by the Queens District
Attorneys office last month, many in the online gambling world immediately
feared the worst. The first "take down" of a "significant" internet
gambling business since President Bush signed a bill into law that would
attempt to prevent some forms of gaming transactions. The Queens DA himself
through spokesperson, Kevin Ryan, said it himself: "The arrests by
prosecutors and police in New York City represent the first time that
Internet gambling charges have been brought since President Bush signed into
law last month the Unlawful Internet Gambling Enforcement Act." This case is
similar in nature to that which went down a few weeks ago in Montreal where
a number of individuals with suspected "Mob ties" were arrested. They too
had a connection with a gambling enterprise that just happened to utilize an
online website. Neither the Queens or Montreal cases actually signal an
escalation in online gambling industry prosecutions but rather demonstrate
an increasing focus on gambling enterprises that operate at least partially
from North American soil through use of agents (also known as "runners") and
do so by offering a website to clients. The vast majority of online
gambling industry companies operate exclusively off North American shores.
The charges made public by the DA's office are felony violations of the
Penal Law, and, nothing related to the recent law passed related to internet
gambling. Authorities said they broke the case wide open last year when New
York Police Department investigators secretly hacked into a laptop computer
that James Giordano had left in a Long Island hotel while attending a
wedding. Giordano, 52, was arrested Nov. 15 by FBI agents who scaled the
walls of his fortress-like Florida compound. He was indicted along with 26
others, including three family members, on charges of running an online
gambling scheme that rivaled casino sports betting. Prosecutors allege that
since 2004, Giordano had run a $1 billion-a-year operation involving tens of
thousands of bettors and 2,000 bookies. One of Giordano's attorneys says the
numbers derived at by investigators is "mathematically incorrect".

Pats take away fun for gambling fans

Pats bettors took a pretty good whack yesterday, watching the Patriots fall,
21-0, to the Miami Dolphins as 3 1/2-point favorites, dipping to a miserable
6-6-1 against the spread this season. In a lifetime of pathetic performances
in Miami, this one might be the worst because the Pats were 9-3 heading in.
Offense, defense, special teams, stat men and the waterboys all contributed
nothing to a team whose cracks get wider with each passing week. It's hard
to pinpoint any one specific area, for there were a bunch of them, some
quite visible (Matt Light and his linemates), some rather invisible
(coaching) and some far, far away (Deion Branch).
It's hard to believe Pats bettors still can muster the courage to back this
team in any way. Barely able to beat the Lions last week (another losing
wager), the Patriots did not give their backers any hope yesterday - not a
jolly way to head out Christmas shopping this week. And someone please tell
punter Ken Walter to retire again!

Lawyer for James Giordano Sees Flaws in Queens DA "Gambling" case

When James Giordano and 24 others were indicted by the Queens District
Attorneys office last month, many in the online gambling world immediately
feared the worst. The first "take down" of a "significant" internet
gambling business since President Bush signed a bill into law that would
attempt to prevent some forms of gaming transactions. The Queens DA himself
through spokesperson, Kevin Ryan, said it himself: "The arrests by
prosecutors and police in New York City represent the first time that
Internet gambling charges have been brought since President Bush signed into
law last month the Unlawful Internet Gambling Enforcement Act." This case is
similar in nature to that which went down a few weeks ago in Montreal where
a number of individuals with suspected "Mob ties" were arrested. They too
had a connection with a gambling enterprise that just happened to utilize an
online website. Neither the Queens or Montreal cases actually signal an
escalation in online gambling industry prosecutions but rather demonstrate
an increasing focus on gambling enterprises that operate at least partially
from North American soil through use of agents (also known as "runners") and
do so by offering a website to clients. The vast majority of online
gambling industry companies operate exclusively off North American shores.
The charges made public by the DA's office are felony violations of the
Penal Law, and, nothing related to the recent law passed related to internet
gambling. Authorities said they broke the case wide open last year when New
York Police Department investigators secretly hacked into a laptop computer
that James Giordano had left in a Long Island hotel while attending a
wedding. Giordano, 52, was arrested Nov. 15 by FBI agents who scaled the
walls of his fortress-like Florida compound. He was indicted along with 26
others, including three family members, on charges of running an online
gambling scheme that rivaled casino sports betting. Prosecutors allege that
since 2004, Giordano had run a $1 billion-a-year operation involving tens of
thousands of bettors and 2,000 bookies. One of Giordano's attorneys says the
numbers derived at by investigators is "mathematically incorrect".

Group gears up to oppose Lehigh Valley gambling plan

A group opposed to the development of a Lehigh Valley slots parlor is
gearing up to monitor plans to build a casino on the former site of
Bethlehem Steel Corp. The Bethlehem Defense Fund last week announced plans
to hire attorneys, engineers and traffic consultants to keep an eye on the
Sands BethWorks Gaming LLC plan to build a casino. Bethlehem attorney James
D. Rawlings II was retained by the group with Allentown attorney Timothy T.
Stevens. Rawlings said the goal is to block the Sands from getting a state
casino license. "The group retained us in order to, shall we say, pursue all
possible avenues" with respect to preventing gaming and casinos in the area,
Rawlings said told The Express-Times of Easton. Should the Pennsylvania
Gaming Control Board choose the Sands proposal from among five applications
for two available licenses, Rawlings promised "a very close and meticulous
oversight of any and all operations as relates to the city of Bethlehem."

Monday, December 11, 2006

Progress Made in Video Gambling Probe

The Seoul Central District Prosecutors' Office is allegedly confirming the
circumstantial evidence surrounding whether a senior lawmaker of the ruling
Uri Party ran a company issuing gift certificates used for gambling arcades
by operating a partner company under a different name. Prosecutors allegedly
found evidence showing that the lawmaker co-operated Sammi Corp., an issuer
of gift certificates, and shared profits from the business. The lawmaker was
known for his significant contributions to Roh Moo-hyun's presidential
campaign in 2002. Prosecutors assume that the lawmaker was the company's
owner or deeply involved in the business, though certificate issuing was
operated under the name of Sammi Corp. and the partner company was
registered with a different name. The investigation is proceeding on the
basis that the company was disqualified for being designated as a
certificate issuer. This year in late January, Sammi Corp. failed to be
designated as an issuer, but applied again finally to be chosen on March 15.
The second selection process came last March 2 when Park Won-yang, chairman
of Sammi Construction Co. and majority shareholder, played golf with
then-Prime Minister Lee Hae-chan on March 1, Independence Movement Day.
Seoul Guarantee Insurance created controversy in its issuer-selection
process as it owned 30,493 shares or 0.42% of the firm. Prosecutors are
investigating whether the lawmaker requested or pressured Seoul Guarantee
Insurance, the Ministry of Culture and Tourism and the Korea Game
Development & Promotion Institute to get approval. However, prosecutors
claim that it is not illegal for the policymaker to issue and distribute
certificates and make profits from the fake company. The office is expected
to investigate into the background of his involvement in the business.
Meanwhile, the chairman of Sammi Corp. was fined 30 million won for illegal
political funds to Mr. Roh's camp of the Millennium Democratic Party (MDP)
in the 2002 presidential campaign.

Ladbrokes says bid talks with 888 continue

UK bookmaker Ladbrokes PLC said it is continuing discussions with 888
Holdings PLC over a possible takeover of the troubled online gaming group
but declined to confirm a press report claiming the pair are finalising a
490 mln stg deal. 'We're still in discussions with 888 and no decision has
been made at the moment,' said a Ladbrokes spokesman. The Daily Mail
newspaper, quoting a source close to the situation, today reported the
companies could strike a deal -- valuing 888 at anywhere between 140 pence
and 145 pence a share -- as early as next week. At 11.48 am, 888 shares were
up 2.5 pct at 132 pence, while Ladbrokes shares were up nearly 1 pct at
405.50 pence. Ladbrokes last month said it is in the 'early stages' of
negotiations with 888, gatecrashing merger talks between the online betting
group and rival PartyGaming PLC. 888 confirmed in October it entered into
preliminary discussions with unnamed parties following the suspension of its
main US operations.UK bookmaker Ladbrokes PLC said it is continuing
discussions with 888 Holdings PLC over a possible takeover of the troubled
online gaming group but declined to confirm a press report claiming the pair
are finalising a 490 mln stg deal. 'We're still in discussions with 888 and
no decision has been made at the moment,' said a Ladbrokes spokesman. The
Daily Mail newspaper, quoting a source close to the situation, today
reported the companies could strike a deal -- valuing 888 at anywhere
between 140 pence and 145 pence a share -- as early as next week. At 11.48
am, 888 shares were up 2.5 pct at 132 pence, while Ladbrokes shares were up
nearly 1 pct at 405.50 pence. Ladbrokes last month said it is in the 'early
stages' of negotiations with 888, gatecrashing merger talks between the
online betting group and rival PartyGaming PLC. 888 confirmed in October it
entered into preliminary discussions with unnamed parties following the
suspension of its main US operations.

BRIT GOVERNMENT COULD GET SHIRTY OVER ONLINE GAMBLING SPONSORSHIPS

A 40 minute debate raised by a Brit Labour MP in the House of Commons
Thursday on football shirt sponsorship, mobile gambling and the absence of
prosecutions for breaches of current gambling regulations, grabbed the
headlines the following day. During the forty minute sitting, also attended
by Minister for Sport Richard Caborn, Labour MP Ben Chapman said that he did
not wish to see the UK turn into a centre for online gambling, and that
"many operators are looking to Britain to fill the void left by the US."
Chapman quoted the BBC's recent Panorama documentary (see previous
Online-Casinos.com/InfoPowa reports) as illustrative of the potential he saw
for gambling addiction to "grow significantly" without "more and better
restrictions." Chapman particularly emphasised his concerns for the young,
saying: "We need to ensure mobile phone credit can't be used to stake
money." The Labour MP expanded his argument by saying he was also worried
about football shirt sponsorships and internet site links. Referring to what
he called the "proliferation" of sponsorship deals, he said: "A big part of
this is attracting customers, not only from competitors, but from those who
have never gambled." Chapman added: "The glamorous nature of top-flight
football means we should be extra cautious about allowing gambling companies
to be associated with it." Caborn responded in a speech which highlighted
his department's commitment to a "modern and flexible licensing regime".
Caborn referred to the 1968 Gambling Act as "draconian", yet he also said he
too felt "concerns" about shirt sponsorship, and said the Gambling
Commission would be looking into the issue in the New Year. Caborn said
"regulation, not prohibition" would protect children from the "harmful
effects of gambling". Middlesbrough (888.com), Tottenham (Mansion),
Blackburn and Leeds (Bet24) and Aston Villa (32 Red) all have shirt deals
with online gambling operators. The BBC reported that gambling firms have
been particularly keen to strike deals with Premiership football clubs
because of the heavy media exposure the Premiership attracts. "Premiership
matches are shown all over the world in over 220 countries," Nigel Currie,
of sports marketing consultants Brand Rapport, told the broadcaster. The
developments will be causing alarm at the affected clubs, claims the BBC as
large sums of money are at stake. Tottenham's Mansion deal, for example,
signed pre-season 2006/07, is worth GBP 34 million over four years.

Reporting on the issue, The Guardian sport section claimed that under the
new rules, to be introduced next September, the position on such sponsorship
remains unclear. The story says that the particular concern is with the
popularity of replica shirts among children.

Any ban would bring the UK into line with France, where gaming companies
cannot advertise unless they have a French licence.

At present, only two French betting monopolies have been awarded licences in
that country, leading to complications and the arrest in September this year
of two executives from the Austrian public company Bwin, which was
sponsoring a Monaco football club at the time.

Sunday, December 10, 2006

Singapore's First Casino School Grooms Future Dealers

It doesn't exactly look like Casino Royale, tucked into a far corner of a
hardly glamourous shopping centre far from Singapore's glitzy Orchard Road.
The smell of fat used by cheap food stalls lingers in the air, and the array
of shops offer kitsch and knick-knacks at bargain prices. But behind the
thick glass door and past wood-panelled walls and heavy, upholstered chairs
waits everything that makes a passionate gamblers' heart beat faster. There
are roulette, blackjack and baccarat tables, poker games and chips as far as
the eye can see. But none of the players are James Bond imitators, nor are
the vast sums being bet on the tables genuine: Real money is taboo in this
casino. The dealers are freshmen practising the arts of sorting chips,
spinning roulette balls and shuffling decks of cards - students at
Singapore's first casino school, gearing up for the approaching casino era
in the city-state. Ignatius Sharma stands at the roulette table and juggles
a tall stack of chips from one hand to the other without dropping a single
one. He pushes 10 stacks of 20 chips each across the table, first with his
left hand, then with his right. None of the stacks topples. "Now four stacks
of 20," Sharma advises his students, and the future dealers must follow his
order, using precise finger movements to push the stacks across the table.
"Now six, then eight!" Sharma instructs. Students who topple any of their
stacks must start from the beginning. "I'll never be able to do this,"
groans one. Another appeared to have overslept and didn't have time for his
morning shower, prompting a look of contempt from the teacher. "Hygiene is
an important part of the training course," Sharma says. Hairstyles, makeup,
fingernails and attire need to be neat. "Casino guests are expecting
well-groomed staff," Sharma stresses. Singapore will move into the domain of
gambling paradises by 2009 with the construction of two casino resorts after
having argued over the plan for years because of concerns that the rigid
city-state might degenerate into a sinful place. But the tiny country wants
its slice of the lucrative pie. It is estimated that the two planned casinos
would contribute more than 1.4 billion dollars per annum to Singapore's
gross domestic product, and a minimum of 35,000 staff will be needed to run
them. And the recently established Club Gambling Training Centre is where
many of them will learn the tricks of their new trade with the first class
slated to graduate in January.

Unlike the motley new group of chip jugglers, the pioneering class is
smartly dressed in black slacks or skirts, white shirts or blouses,
waistcoats and bow ties. Their advanced level of skill is apparent as well.

The motto for all students is "practise, practise, practise." One day, all
the calculating and hand movements will come naturally.

The school's director, Ramachandar Siva, sets high standards with his
six-month training courses, which costs each student about 5,000 Singapore
dollars (3,300 US dollars).

"We not only teach dealing techniques, but we also advise our students how
to handle gamblers who have just lost their shirts," he says.

"Don't joke about players' losses, not even after work, because he might
eventually learn about it," Siva warns.

The students also are taught an array of cheating tricks so they will be
able to recognize and prevent them.

"Many casinos are not doing that because they are afraid croupiers might
teach those tricks to their uncles," Siva smirks.

Students also learn to expose the palms of their hands after each handling
of cards or chips and to never accept either directly from the hands of
anyone else. Everything must be laid down on the table.

"During shopping, I sometimes jerk back my hand in shock when the cashier
wants to give me my change. I'm just so used to it," chuckles instructor
Darwin Cusi.

Students are also being taught to detect compulsive gambling.

Singapore's casino laws are rather strict. Gambling houses are obligated to
identify gamblers who have become addicted and get help for them.

Most of the students who will graduate in January want to try to find
employment in casinos in neighbouring Malaysia, Macau or Australia to gain
further experience.

When things finally kick off in Singapore in 2009, these young people
already want to have climbed up the management ladder.

Among them is talented Eddie Goh, 39, who is already talking like he has a
number of junior dealers under his wings.

"It's important in a casino to start at the bottom because it helps to be
better than my junior croupiers," he says.

Gambling phone line opens

People seeking information about help with problem gambling may begin
calling a state toll-free information line starting today, at
1-877-565-2112. The phone line will be staffed from 8 a.m. to 5 p.m. Monday
through Friday, and messages may be left at other times. The Pennsylvania
Department of Health was directed in the 2004 law legalizing slot machines
to create the information and referral service. Staff members handling the
phone lines will mail brochures to callers and refer them to counseling
services, among other help provided. The assistance will be provided to
relatives and friends of gamblers, as well as those with the addiction
themselves.

Gambling banned at day centre

Members of the Fordsfield Centre in Bury Road have been barred from the
practice - because those who run the service claim such games encourage
gambling.
Linda Croxell, who uses a wheelchair and has suffered from depression, is
one of its registered clients. She returned last week after an 18-month
absence - and was dismayed by what she found. We'd like to hear your views
on this story. You can send us your comments by simply clicking on this
email. Please give a reason if you do not wish your email address to be
published.This is what I think

Football faces loss of gambling sponsors

SPONSORSHIP deals between online gambling companies and football clubs could
be banned in the UK if it is decided that they encourage children to gamble.
The news comes after the Gambling Commission announced that it will
investigate whether shirt sponsorship deals - such as those at Middlesbrough
and Tottenham Hotspur - unfairly expose young fans to online casinos or
gambling sites. Companies such as 888 Holdings, 32 Red, Bet24 and Mansion
are at risk of losing deals with Premiership clubs if a ban is brought in,
while the clubs face being stripped of multi-million pound sponsorships.
According to marketing consultants Brand Rapport, online gambling interest
has helped drive shirt sponsorship deals in Premiership football up by 25
per cent to around £70 million - with Spurs, Blackburn Rovers, Aston Villa
and Middlesbrough the main clubs to benefit. The commission has said that
the whole issue of football shirts would be examineds. Ministers are also
being put under pressure to prevent problem gambling and to stop gambling
influencing children and vulnerable people. Any sponsorship ban would be in
line with the position taken in France, where representatives of Austrian
gaming company Bwin were recently arrested and charged with illegal
promotion of gambling after agreeing a sponsorship deal with Monaco FC.

Anti-gambling pill fails to end urge

A San Diego pharmaceutical firm said clinical trials were a flop for an
orally administered drug aimed at blunting addicts' urge to gamble. "The
results . are disappointing," Ken Cohen, president and chief executive of
publicly traded Somaxon Pharmaceuticals Inc., said in a prepared statement.
Somaxon two years ago was the first U.S. firm to take formal steps toward
marketing an anti-gambling pill. It obtained North American licensing rights
to a Finnish firm's treatment for impulse-control disorders using the drug
nalmefene hydrochloride. Researchers for years have been trying to unlock
the root causes of addictive behavior.
In its statement Wednesday, Somaxon said tests on human subjects at various
dosages "did not demonstrate a statistically significant difference compared
to placebo" treatment. The company also reported adverse side effects,
including insomnia, nausea and dizziness. The company said it will "evaluate
the results from these trials before making determinations regarding the
future of the nalmefene program." An intravenous version of the chemical
compound is permitted for use in the United States to counteract morphine
and other opiate drug overdoses.

Saturday, December 09, 2006

New York City The History of Gambling in Gotham

The first settlement in New York Harbor was established by Dutch fur traders
in 1613 and was called New Amsterdam. These early traders were adventurers,
gamblers, willing to take big risks for big profits. One particularly shrewd
player, Peter Minuit, convinced the resident Native Americans to sell him
Manhattan Island and Staten Island for about $24 worth of goods. The
Indians, to whom the idea of land ownership was ridiculous, thought they got
the better deal. Conquered by the British in 1664, the settlements' name
was changed to New York in honor of the Duke of York. Unlike Puritan New
England, gambling in New York was a popular, socially accepted activity
under the British. Colonial America was a new, untamed land with opportunity
and danger at every turn. Only the most rugged, independent risktakers were
attracted to it. Eventually, they wanted to run their own game. The leaders
of the American Revolution bet their lives and all they owned in a no-limit
confrontation with the world's strongest player, Great Britain. New York
City became the first capital of the newly formed United States. In 1789,
the first President, George Washington, was inaugurated at Federal Hall on
Wall Street. The Louisiana Purchase in 1803 doubled the size of the country.
As the frontier moved westward into the Ohio and Mississippi River Valleys,
New York City developed into a major port and financial center. Gambling
thrived in the taverns that crowded early mercantile New York. The working
class section of the city known as "The Bowery" was a rough gambling
district.
In addition to wagering on card and dice games, "blood sports" were popular.
Patsy Hearn's grogshop had a "Men's Sporting Parlor" famous for its rat
fights.

It was estimated in 1850 that there were "6,000 places in the metropolis, or
approximately one to every eighty-five inhabitants, where gambling in one
form or another was permitted." The New York Herald described the city in
1850 as "the great headquarters of the gamblers in this country". Gamblers
were estimated to be winning $5 million annually from NYC citizens.

For twenty years before and after the Civil War, John Morrissey was the most
famous gambler and casino operator the country had ever seen. And, he was
one of the most colorful characters of his era. A tough Irish brawler,
Morrissey shocked the world when won the U.S. Championship in New York in
1852, outlasting skilled professional boxer Yankee Sullivan in a 37- round
melee. The Champ retired undefeated in 1858. Using his fame and fortune,
Morrissey next turned to the gambling business.

Eventually, he owned and operated five gaming houses in New York City. The
wealthiest and most powerful men in the country were among his regular
patrons.

Historian Herbert Asbury tells us that Morrissey "was an expert Poker
player, and in private sessions with his friends was noted for scrupulous
fairness" but his public casinos "were operated as skinning houses".

With the money he made from his NYC gambling houses, Morrissey developed
Saratoga Springs as the foremost gambling resort in the country. It included
a luxurious hotel, casino, spa, opera house, theater and race track. Richard
A. Canfield, America's first great casino king, opened the Madison Square
Club in NYC in 1888. While almost every gambling hall cheated players,
Canfield understood that housebanked games assured the casino could be run
profitably as well as honestly.

The décor of the Club was dignified and comfortable, a stark contrast to the
loud, gaudy "hells" that dominated NYC. It was distinguished, too, for being
an honest operation. The Saratoga resort and track, neglected for some years
after Morrissey owned it, was bought by Canfield. He renovated it and again
made it the greatest gaming resort in America. It was a favorite of the rich
and powerful. Presidents Cleveland and Taft were frequent guests.
Industrialist Cornelius Vanderbilt once had an epileptic seizure while
playing poker. When he recovered, the game resumed.

Canfield eventually sold Saratoga and returned to New York City where he
opened a fabulous casino called "The House of the Bronze Doors" just blocks
from Time Square. A few years later he was wiped out in another game, the
Stock Market, and died in 1914.

The last man to really harness gambling in the Big Apple was Arnold
Rothstein. Born in Manhattan in 1882, he grew-up in the city.

Rothstein brought together the diverse elements of the underworld and
fashioned them into a highly profitable industry whose goods and services
were illegal. He introduced organized crime.

In 1910, Rothstein opened his first gambling house on West 46th Street.
Within a few years he had politicians and the NYPD in his pocket. Through
gambling, Rothstein eventually financed much of the criminal activity in the
Eastern U.S. Prohibition in 1920 created an upheaval in Rothstein's
organized crime empire. Suddenly it was a lawless free-for-all. Arnold
shunned the booze business. An organization man, he concluded there was no
controlling it. An avid gambler himself, Rothstein dropped $320,000 in a
poker game one evening. Convinced the game was fixed; he refused to pay and
walked out. A few weeks later he was gunned down in a room at the Park
Central Hotel.

With the end of Prohibition, the Great Depression, and World War II gambling
in New York City would never again reach the level of acceptance and
significance it had during the city's earlier history.

Gambling Addict Jailed for Stealing $3.5 million

Australian mother of two Kate Jamieson was jailed today for a maximum of
seven years by Judge Roland Williams in the Victorian County Court. Jamieson
pleaded guilty to 13 counts of obtaining financial advantage by deception
and 23 counts of theft. The court was told that while she was working as a
loans officer for a bank between 2001 and 2004, she illegally shifted AU$22
million, which netted her AU$3.5 million. She then developed a gambling
addiction fueled by a VIP casino membership and its rewards of Grandprix
tickets and limousines. The judge said her crime was a 'massive" breach of
trust, and questioned why Jamieson was given VIP membership to Melbourne's
Crown Casino.

Domestic violence, gambling linked

Problem gambling could be a factor in at least half the domestic violence
cases reported to programs for abused women and abusive men in Cumberland
County, and a group there is studying the correlation. The Cumberland County
Transition House Association has a $10,000 grant from the Nova Scotia Gaming
Foundation to study the connection and design intervention programs. An
association spokesperson wasn't available late Wednesday afternoon, but the
foundation's annual report released Wednesday says the 50 per cent figure is
"alarming." The report says that could be a conservative estimate, since it
was only compiled informally, but the study will verify the links. Liberal
MLA Diana Whalen said it was significant the statistic came out on the day
dedicated to recognizing and eliminating violence against women. "I think
it's
really an important piece of information," she said. The foundation provides
funding to community groups, district health authorities and the Health
Promotion and Protection Department for gambling research, education and
treatment.

Attorney Seeks To File Class-Action Gambling Suit

According to a state law that is more than a century old, gamblers can
recoup money lost, and now a new lawsuit is aimed at the Birmingham Race
Course with that goal in mind. A judge at the Jefferson County courthouse
will decide whether the case can go forward as a class-action lawsuit. Most
people think that it's a given that when people walk through the doors of
the Birmingham Race Course, if they bet, they could lose money. Attorney
Matt Lembke, however, said that there's a state law protecting gamblers. The
Legislature passed the law in 1852, which says that if a gambler loses money
in a bet, he has six months in which to have that money returned. A man's
wife, children and next of kin have 12 months to go back to the person who
won the bet and collect money lost. Lembke filed a lawsuit Monday on behalf
of all Alabamians who have gambled and lost to the sweepstakes games at the
Birmingham Race Course. "I think this is part of a carefully structured
policy on part of the Alabama Legislature to discuss gambling. Alabama law
is clear: gambling is illegal, and this is a manner in which the Alabama
Legislature said we need and it's on the books and we think the statute
ought to be enforced," said Lembke. First, a circuit court judge has to rule
on whether the filing meets class-action qualifications. If it does, Lembke
is counting on the race course to inadvertently help his clients recoup
their bad bets.
"It is our understanding that the race course has an elective database where
each customer has an account which would show exactly how much they pay and
exactly who much they won or lost," said Lembke. There would feasibly be
thousands of clients and millions of dollars involved.

Lembke's law firm was involved in suing the track for operating illegal
gaming machines, which the Alabama Supreme Court ruled on Friday broke state
law.

"If history is any guide, Mr. McGregor will fight this tenaciously and we
will fight this tenaciously and it will be up for the judge to decide if
this meets the qualifications for a class-action under Alabama law," said
Lembke.

He advises anyone who has lost money to wait for the outcome of the
class-action suit ruling and said that anyone who has lost money will be
contacted.

Thursday, December 07, 2006

More Public Officials Linked to Gambling Scandal

Prosecutors are questioning two former officials from the Ministry of
Culture and Tourism over suspicions that they took bribes from a company
issuing state-licensed vouchers used for payouts at video game arcades.
According to investigators at the Seoul Central District Prosecutors'
Office, Kwak Young-jin, a former director of the Culture Ministry's cultural
industry bureau who now works for the Prime Minister's Office, spent 10
million won ($10,790) to buy shares in Andamiro Entertainment in 2000. The
company failed in its plan to be listed on the stock market, however, and
Kwak was paid 11 million won, prosecutors said. Kim Yong-sam, who worked
under Kwak at the ministry in the division for game and music content,
invested 50 million won in Andamiro on Kwak's advice and was given 47
million won back. Kim now works at the state-run Korea National University
of Arts. Besides Kwak and Kim, two other Culture Ministry officials bought
stocks of Andamiro, investing 10 million won each and getting 11 million won
back, prosecutors said. Andamiro is one of the 19 companies licensed by the
government to issue gambling vouchers. The company's chief executive, Kim
Yong-hwan, 47, was arrested Monday for misappropriating about 6 billion won
in corporate funds and using some of the money to lobby government officials
for business favors. ``There is enough reason to believe that the money
Andamiro Entertainment's Kim repaid the ministry officials were actually
bribes. The public officials bought Andamiro's stocks at 200,000 won per
share but did not suffer financial loses after stock prices dropped below
80,000 won per share three or four years later,'' said a prosecution
official. ``The ministry's cultural industry bureau was directly related to
licensing companies that issue gift vouchers _ which were used for illegal
gambling payouts after being converted to cash _ and sell video game
machines, so their connection with Andamiro certainly raises a lot of
questions,'' he said. Since August prosecutors have been investigating
suspicions that public officials from the Culture Ministry and its
sub-organizations were bribed by businessmen seeking licenses to issue gift
vouchers or distribute slot machines. The ministry in 2002 made the decision
to allow certain types of gift certificates to be used for payouts at
adults-only video game arcades, a move that is now blamed for facilitating
the growth of the country's illegal gambling sector.

With most gaming rooms unlawfully trading the vouchers for cash to lure more
customers, the country's slot machine empire grew beyond recognition with
the number of adults-only game arcades outnumbering 24-hour convenience
stores by 20,000 to 9,500 earlier this year.

Since starting the investigation, prosecutors have arrested several public
officials and businessmen, including Baek Eeek, the current director of the
ministry's cultural media bureau, and have imposed overseas travel bans on
more than 100 people.

Rendell widely underestimates gambling addiction ...

How many ''problem'' or disordered gamblers are boarding the bus from
Philadelphia to Atlantic City? Gov. Ed Rendell implies hardly any per bus.
The research, however, suggests as many as 15. The governor recently told
the Lancaster New Era editorial board that for every one person addicted to
gambling or who lost a pay check to gambling, he can show us 500 who go and
have the time of their life. Let us compare the governor's numbers with
those produced by national experts regarding the prevalence of gambling
problems in the general adult population. For every 500 people there are
about five pathological gamblers and 14 at-risk and problem gamblers. So,
the governor's number is nearly 20 times smaller (1 vs. 19) than what one
would expect to find based on the national research. Using estimates of the
number of disordered gamblers among all adults in Pennsylvania, the scenario
becomes even more distorted. Results from our Mansfield University State
Survey of 2006 suggest that among 500 adult Pennsylvanians, there are 2.5
pathological gamblers and 21.5 at-risk and problem wagerers. Compared with
these numbers, the governor's number is nearly 24 times smaller But wait -
the comparisons above were made using problem gambling rates among the
general population. Among the gambling population, the rates of disordered
gambling are much higher. In the governor's scenario, only gamblers are
described. So, if we stick only to gamblers in the state population and use
their prevalence rate of disordered gambling, for every 500 gamblers there
are about 56.5 at risk, problem and pathological gamblers. Now the
governor's number is more than 50 times smaller It can get a lot worse.
Research shows that gambling addiction increases as the proximity to
gambling decreases and the ease of gambling increases. The governor asks us
to go to Philadelphia with him to see the people boarding the buses. We
surveyed people in Philadelphia and found that for every 500 Philadelphia
gamblers there are about 117 at-risk, problem and pathological gamblers. Now
the governor's number is more than 100 times smaller than what the research
shows (1 vs. 117). It cannot possibly get any worse can it? Oh, yes it can.
The governor did not tell us about the demographic characteristics of people
boarding the bus in Philly. Research shows that teenagers, males and
disadvantaged members of society are more likely to have gambling problems.
Taking one of these subgroups, our results suggest that among 500
African-American gamblers there would be about 153 who experience gambling
problems.

It's even worse than that. The above discussion was based on people who
report gambling problems within the past year. If I were to include people
who have ever had gambling problems in their lifetime, a lot of the numbers
above would likely double in size. Moreover, if we look at combinations of
risk factors, such as being male and a minority group member or being male
and a Philadelphian, then again the rates above would increase. Don't even
ask about the problem of people underreporting (or denying) their gambling
problems to survey researchers like me. That will lead me to underestimate
the extent of the problem!

I believe that leaders in our state really need to become educated about and
should take seriously the numbers and percentages of people who become
problem gamblers in society. The national experts have shown us that these
numbers are far from trivial. They rival those of people who abuse and are
dependent on drugs. Who is going to fight the war on gambling addiction when
we all are pushing for profits from gambling to lower our taxes? As we have
done as a society with drugs and alcohol, we - especially top government
servants - need to properly inform and educate people about the risks
connected to gambling.

Let us start down this road by immediately setting up a task force to
investigate and reduce gambling dependency. Perhaps we should even call it
the ''Pennsylvania Gaming Addiction Board'' before the rest of the expected
60,000 slot machines are put in our backyards. And, don't use a percentage
of the profits from casinos to support this group!

Special prosecutor named in gambling raid case

A judge appointed a special prosecutor to handle the case against a former
state Teamsters union president charged with operating a multi-county video
gambling ring at nearly two dozen bars. Henry County Prosecutor Kit Crane
will oversee the charges against John L. Neal and 38 other people charged in
the operation. Madison Superior Court Judge Thomas Newman Jr. appointed
Crane on Monday because Thomas Broderick, who takes office as Madison County
prosecutor Jan. 1, has been Neal's attorney in an unrelated matter. Neal,
69, of Yorktown, was arrested Sept. 18 on felony charges of professional
gambling, promoting professional gambling, money laundering and corrupt
business influence. He was originally held on $2 million bond, but he was
released after his bond was reduced to $75,000. The arrest came about 1 1/2
years after Neal's release from federal prison. He pleaded guilty in 2000 to
charges of illegal gambling, money laundering and tax evasion. Neal is
expected to appear in U.S. District Court on Jan. 26 to face charges he
violated his federal probation. A message seeking comment was left Monday
evening at the office of Neal's defense attorney, Richard Kammen.
Authorities shut down 23 taverns in Madison, Delaware and Henry counties
during the raids connected with Neal's arrest. Some have since been allowed
to reopen.

Madrid to Begin Licensing Online Gambling Sites

Following the lead of Great Britain, Spain is the latest country to embrace
online gambling and it is only a matter of time before the United States
does so to....or we can dream it does. According to IGamingBusiness,
Madrid's regional government is set to regulate gaming through the
introduction of licenses. "The move comes in the wake of Italy's decision to
regulate gaming, which prompted a flood of applications from UK bookmakers
and online companies such as Ladbrokes, William Hill and Gala Coral, who are
also expected to bid for licenses in Madrid along with Sportingbet and
PartyGaming in the online sector. "Madrid's regional government announced
that it was allowing minimum ?1 bets in games locations as well as telephone
and online bets, covering sports and other competitions, as well as allowing
internet bets on bingo and casino games. "The licenses will last for five
years and be renewable if the Madrid regulator's conditions are met. The
announcement will also include strict regulations to prevent the
participation of young and mentally ill people.

Race Track Owner Defends Video Gambling Machines

The man who brought sweepstakes gaming to Alabama came to its defense. Last
week, the Alabama Supreme Court ruled that the video gaming machines are
illegal, but Birmingham Race Track owner Milton McGregor fired back.
McGregor said that last week's 8-0 decision by the Alabama Supreme Court was
based on politics, not the law. Ten months after a Jefferson County judge
ruled sweepstakes machines were legal, the state Supreme Court overturned
the decision. The court claims that the machines are a disguised version of
slot machines, which violate state gambling laws. This decision is not only
affecting the Birmingham Race Track but dozens of smaller operations all
over Jefferson County, and on Monday, McGregor accused at least half the
justices of being influenced by Mississippi's casinos, which are McGregor's
biggest competition. "What the court (did by) issuing this decision on
sweepstakes in Alabama is intellectually dishonest and wrong, and they know
it," said McGregor. NBC 13 contacted Chief Drayton Neighbors' office to get
his reaction to McGregor's claims and he had no comment. McGregor plans to
ask the court to reconsider its decision regarding the machines and until
there is a decision made on that request, the sheriff's department will not
enforce the ruling.

Grady County prosecutor can continue on gambling case

CHICKASHA, Okla. A Grady County judge rules that District Attorney Bret
Burns can continue prosecuting a case against the county's sheriff and seven
others charged in a gambling case. Special District Judge Ken Harris says he
made the ruling yesterday because he did not have enough information to
remove Burns from the case. Sheriff Kieran McMullen says the judge's
decision doesn't hurt or help his case, but McMullen says he thinks Burns
should be dismissed from the case. McMullen was charged along with five of
his deputies and two Chickasha police officers -- one of which is his
wife -- after a September 6th raid at the Chickasha Elks Lodge by Burns, the
Alcoholic Beverage Laws Enforcement Commission and the Oklahoma Highway
Patrol. Investigators say the lodge had illegal slot machines, poker
tournaments, blackjack games and cash drawings.

Wednesday, December 06, 2006

'Stock exchange a gambling den'

The stock exchange should have no place in a developing country like
Pakistan. It is not an institution to promote industrialization. In fact, it
is more or less a gambling den where the savings of the middle class people
are regularly siphoned off, says an eminent economist. "No investment had
been made in education, health, water and power sectors which could pull the
country and its people out of abject misery while more than $20 billion had
been received in foreign remittances," Dr Akbar Zaidi said this while
addressing the weekly lecture programme of the PPP on "Fiscal Policy and
Development", held at the party secretariat on Sunday. He said this large
fiscal space gained due to 9/11 episode could have been used in enhancing
trade and industry activity and creating employment but this money was used
by the military regime for plots and stock exchange and to enrich the
unscrupulous upper class, which ultimately increased the income gap in
Pakistan. The economist said that loans had been rescheduled while more than
$20 billion were received through foreign remittances alone. "The billions
earned in this way also go tax free in order to boost the so-called investor
confidence," he said, adding, as a result property values had been pushed
out of reach of even the upper middle class. Dr Akbar Zaidi recalled that by
far the highest expenditures as percentages of GDP had been made by the
government of late Zulfikar Ali Bhutto on social sector, infrastructure,
consolidating steel and machinery manufacturing and developing heavy
industrial base in the country. He said these facts had been hidden from the
public owing to long years of propaganda and misinformation and asked the
PPP to reopen the subject of services to the country and its people rendered
by the late Bhutto. He felt that such a discussion would also be of great
help to the present PPP leadership to take up a progressive course.
Emphasizing that an anti-people economic policy could never result in a
pro-people fiscal policy, Dr Zaidi said that the bulk of the tax income in
the country consists of indirect taxes on every item of daily use. He said
this was a regressive system where the poorest and the 50% population living
below the poverty line were paying indirect taxes at the rate at which the
richest were paying it.

The sales tax, which brought in the highest tax revenue, was the most unjust
and the most regressive tax that had been levied at such high rates by the
federal government. Taxes should be progressive in which incomes should be
taxed directly, he added.

The bulk of taxes should consist of direct taxes levied on the rich in
proportion to their incomes, he said while rejecting the excuse that because
of tax evasion collection of direct taxes was not possible and thus indirect
taxes had to be levied.

This argument was put forward only to reward and facilitate rich tax
evaders, he remarked. Why should the burden of their crime be shifted on the
poor? Why can't the government take effective measures against tax evasion?
Dr Zaidi questioned.

"Our record shows that the democracies in the West and the international
financial institutions had always extended their full financial support to
military dictators in Pakistan and had withdrawn their support and even
imposed sanctions when elected democratic governments took over," he said
and added that foreign loans were accumulated in the days of General Ziaul
Haq and these had been wasted through and through.

Dr. Zaidi said the succeeding democratic governments had to pay around six
billion US dollars every year only as interest payment on these loans.

The economist strongly advocated for instituting an inquiry under a civilian
NAB to determine who took the foreign loans and where these were spent.

Former federal minister and Coordinator Karachi Coordination Committee of
the PPP, Aftab Shahban Mirani, presided the function.

Tribe sees a big prize in a riverfront casino

In the 17th century, ancestors of the Pequot Tribal Nation lost their
position as the dominant culture along New England's Atlantic Coast. Today,
the Pequots - now owners of the world's largest casino - aim to secure a
position along Philadelphia's Delaware riverfront to build a $560 million
slots palace. If Foxwoods Development Co. wins a license Dec. 20 to build on
the 161/2-acre site on South Columbus Boulevard in South Philadelphia, its
Foxwoods Casino Philadelphia will be the tribe's first gambling venture
outside Connecticut - confirming it as a major player in the casino
industry. "It's certainly the next step for this tribe," Foxwoods chief
executive officer William Sherlock said in an interview in his office next
to the sprawling casino in Connecticut. "Philadelphia could be that first
step for a plethora of projects throughout the United States." But
Philadelphia presents some special challenges. Five companies are competing
for two casino licenses in the city. And Foxwoods' plans are opposed by
community groups fearing the impact of the big slots parlor on South
Philadelphia. For Foxwoods, the stakes are enormous. The tribe was made
wealthy by its Foxwoods Resort Casino - a 5-million-square-foot gambling
destination on a 1,200-acre reservation in southeastern Connecticut. The
casino, which started as a high-stakes bingo hall, is now a $1.2 billion
enterprise contributing 25 percent of its slots revenue to the state. The
tribe established the Foxwoods Development Co. in 2003 to oversee expansion
of its Foxwoods brand. It has its eye on Las Vegas, Atlantic City and
Biloxi, Miss. It's also building partnerships with other gambling companies,
including MGM Mirage. And it assists other Indian tribes. In June, Foxwoods
Development signed a seven-year management contract with the Pauma Band of
Mission Indians to manage its $300 million casino north of San Diego. Last
year it had a consulting contract with the Picayune Rancheria of the
Chukchansi Indians, a tribe that runs a central California casino. "They've
blazed the trail in a new arena for gaming in this country," said Howard
Dickstein, an attorney who represents large tribes with casinos in
California. "They've earned the respect of other tribes." In Connecticut,
Foxwoods averages 40,000 visitors per weekday, and up to 55,000 on weekends.
About 1.3 million arrive on buses each year. It employs 10,300 in three
hotels, 30 restaurants, numerous retail shops, entertainment venues and two
golf courses.

The Pequots and other tribes began gambling operations on reservation land
under the 1988 Indian Gaming Rights Act. In Connecticut, the tribe was
permitted to offer bingo and table games, such as poker and blackjack, which
were legal in the state. Slot machines were not, so the Pequots opened a
table games casino in 1992 by expanding the original bingo hall. The tribe
entered into the slots revenue sharing agreement a year later in exchange
for also being allowed to offer slot machines.

For the 12 months ending June 30, Connecticut took in $204.5 million from
Foxwoods, according to the state Division of Special Revenue, the agency
that tracks all forms of gambling in Connecticut. It received an additional
$224 million from nearby Mohegan Sun - another casino operated by the
state's Mohegan Tribe - under a similar compact.

Foxwoods now has 390 game tables and 7,400 slot machines - the most of any
U.S. casino. It will soon add 1,500 slots with its eighth expansion, and a
hotel tower featuring a 4,000-seat theater and 824 rooms with MGM Mirage.
The MGM Grand hotel, set to open in spring 2008, will allow the resort to
compete with Las Vegas for conventions and top concert acts.

"In the early days, it was more about 'just build it and they will come,' "
Foxwoods Casino president John O'Brien said. "Today, it's much more
strategic."

The bingo hall, now the world's biggest with 3,500 seats, attracts devotees
such as Maria Marcinko, 51, a state government worker from Harrisburg.
Marcinko makes the 51/2-hour trip to Foxwoods at least four times a year to
take part in the big tournaments.

"Yes, I'll go to the slots parks in Pennsylvania," Marcinko said as she
marked her game sheet with a lavender dauber on a recent Saturday. "But I
won't stop coming here - because of this bingo hall. There's nothing like it
anywhere."

Foxwoods, which draws clientele mainly from New York, Massachusetts and
Connecticut, does not report its earnings. But industry experts say the
casino is one of the most profitable in the business.

Andrew Zarnett, an analyst with Deutsche Bank AG, estimates the tribe has
generated about $350 million in cash flow - money left over after operating
expenses but before taxes - per year. "They clearly have the ability to
expand beyond Connecticut, and have been aggressively looking for
opportunities in the last two or three years," he said.

Their golden ticket

The Pequots became one of the most powerful American Indian cultures in
southern New England in the early 1600s, controlling much of the region's
coastline and currency - the Wampum, a bead made from a hardshell clam. But
a series of conflicts with European settlers reduced their population to
about 2,500 from 4,000, according to historians.

Income from their casino has helped the Pequots to rebuild their community,
create jobs, and provide health care, education and other services for the
members, who now number about 900, according to tribal chairman Michael J.
Thomas. Gambling has paid for a community center, a fire and police
department, and new housing. It also financed the $250 million Mashantucket
Pequot Museum and Research Center, which documents the tribe's history.

The money has also helped the Pequots to build political and casino industry
allies. Since 1995, the Pequots have given $3.1 million to Democrats and
Republicans - from individual donors and through the tribe's political
action committee.

"The world has clearly changed, and we certainly need every ally we can get
today," Thomas said. "We've returned to this position of influence, and we
hope to keep it alive for a long, long time."

Sherlock, the Foxwoods chief executive officer, said Foxwoods Development
began looking at Pennsylvania in summer 2003 - a year before the legislature
approved slot-machine gambling.

Under the casino's ownership structure, local investors would own 70
percent, and Foxwoods Development would own 30 percent and manage the
casino.

Sherlock said Foxwoods fielded more than one offer to partner with a
Pennsylvania slots license applicant, but found the group including
Comcast-Spectacor chairman Edward Snider, developer Ronald Rubin, and Lou
Katz's daughter, Melissa Silver, to be the best fit.

Snider said that his family is close with the Rubins and the Katzes. He said
the three families agreed to become involved with a casino development when
the legislature first considered legalizing slots.

"We decided that if this was going to happen... we could step in and invest
in one of them, and give back to the community," Snider said. "That's what
motivated us."

Snider said 42 percent of profits would benefit underprivileged children in
Philadelphia and South Jersey through trusts established by the investors.

Foxwoods backers hoped that would sway community groups.

Still, of the five applicants for a city license, Foxwoods has generated the
most controversy and community opposition.

Gambling and business - liberal style

An old saw, of the un-entrepreneurial classes, claims that business is like
gambling: both are bad for you, and both make you lose in the end. Like the
old superstition about bad luck awaiting the person who walks underneath a
ladder, it does serve a protective function, even if the unintended
spillover of the equation of business with gambling does make gambling
seductive when entrepreneurship is respectable and is also called for. Any
economist can explain why business is not like gambling, relatively easily.
Gambling games are always zero-sum; when the games are all over, money has
changed hands, but nothing of any transferable value has been created. The
only value in gambling, for the average gambler, is in the thrill of the
game itself. Thus, gambling is a consumer's good, and the gaming industry is
like any other kind of entertainment industry. A consumer is not an
entrepreneur; the consumer is the ultimate recipient of entrepreneurial
effort. To the extent that a consumer acts entrepreneurially, he or she does
so through shopping around. Thus, an "entrepreneurial gambler" is one who
seeks out the casino where the house's take is lowest, and/or one who seeks
out a game where the odds are most in his or her favor. When seen in this
perspective, the card-counter or the system player is like the consumer who
sees an edge in, say, buying computer components and putting together a
working computer from them. The "edge" in this case is a lower overall price
for the resultant computer system. This can be categorized as a kind of
entrepreneurship, but it is clearly entrepreneurial consuming. Profit, in
the regular sense of the word, is not the goal; cost saving is. In this
sense, a supposedly entrepreneurial gambler is someone who seeks to minimize
the cost of the gaming experience, which puts he or she in the category of a
consumer with initiative. Yes, it's true that there are such things as
"professional gamblers," ones who are put up with by the gaming houses, or
in quite a few cases encouraged by them. These kinds of people are rare, and
are easily classified in the same category as the person who's given, say, a
free BMW on condition that he or she flashes it around. (More broadly,
professional gamblers, not to mention lucky jackpot winners, are comparable
to celebrity endorsers.) A free Beemer makes for quite a net income. Some
may not be convinced; they may insist that a gambler is an entrepreneur, and
that every act of entrepreneurship is a gamble. The fellow who walks into
the casino with a stake looks an awful lot like a fellow with a grubstake,
and his priorities - his intentions - are an awful lot like the
money-seeking businessperson. So, for the rest of this piece, I will assume
that appearances and intentions are not deceiving, and grant that there is
something to the comparison between the gambler and the entrepreneur - with
this ponder point added:

What about the (as of now, online) gambler who gets a free subsidy-stake to
start off with, or whose own contributed stake is augmented by a limited
"matching grant" by the friendly casino? What kind of entrepreneur is this
lucky fellow like?

The kind of businessperson that is every Liberal's pride and joy. The
State-supported entrepreneur.

I myself had a chance recently to experience what life is like for the
"assisted gambler," thanks to a mailed promo from Captain Cook's Casino.
With the casino CD came an hour of free play, with $500 of free chips, as
well as with certain conditions attached. These conditions made the
experience similar to government-assisted business, instead of a welfare
payday.

The conditions were: the $500 had to be deployed in the casino over the
course of one hour's worth of casino operation, and there's no way for me to
freeze the clock. In the course of that hour, I have to place a minimum of
100 bets. This minimum gets adjusted upwards, depending upon the kind of
game I play. Two examples: for slots, every bet I make counts as one bet;
for blackjack, every bet counts as 0.2 bets. By agreeing to play the
hour-long freebie game, I put at risk the chance of claiming the $50 welcome
bonus - but this risk comes with a nice guarantee: if I walk away from the
free session a loser, or (as I found out) an insufficient winner, I get to
claim the welcome bonus anyway. This supposed peril is merely a way of
euchring out "double dipping," and nothing more. Quite a guarantee, this is,
and it's even sweetened by the casino offering the player the option of
shutting down the free play early and claiming whatever bonus is mandated by
the pot's size, provided that the 100-bet criterion has already been met.

Of course, with floors usually come ceilings, and there is a ceiling
attached to the offer I'm describing. No matter how lucky or successful I
become in that hour, I can only claim $200 of winnings as a welcome bonus.
So, anything above $700 in the pot is essentially brag money; it can mean
nothing financially.

This calculus sounds a lot like the not atypical government-business dealie:
go into business with the State, get your costs recouped if the business
goes bust, but at the opportunity cost of a 100% surtax on "super-monopoly
profits." Now, why would anyone object to a deal in which the only real cost
comes for the "supremely lucky?" Especially if it's structured as a "welcome
bonus" for the newbie entrepreneur? If you accept the business-gambling
analogy, the dealie I got from Captain Cook's casino is like the
hypothetical assistance program I've just described, provided that the
payouts are limited to micro-enterprise levels. It's also a fun set of
constraints for an economics major to sink his or her teeth into.
(Entertainment, after all, is subjective.) Consider the set of incentives
and disincentives I faced:

No matter how lousily I play, or how unlucky I am, I still get the $50
bonus. This entails no loss, except for opportunity loss and possible
consumer's enjoyment loss, for me going bust. So, there's less incentive for
me to be prudent than there would be had I had to pony up the $500 myself.
My lucky bounty has a ceiling, though: $200.
I need to play 100 games, or else I can't claim anything, except for the
nice $50 welcome bonus.
I need to make those 100 bets within an hour, and the clock don't stop. I
do, on the other hand, have the option of shutting down early, and can claim
whatever bonus I rate at that time, provided that I have made those 100
bets.
Since I have dial-up, and since the clock runs while both the casino itself
and any game I want to play are downloaded, the hour allocated to me did get
run down during downloading time. I got less than 47 minutes of playing
time, for one downloaded game. Had I switched to (download) another game,
approximately seven or eight minutes would have been shaved off the clock
during the additional downloading wait. So, given this additional
constraint, the most rational choice for me was a slots game: there's no
more than ten seconds between bet and outcome, and each bet counts as a full
one for the fulfillment of the 100-bet criterion. In addition, the more bets
I make, the greater chance, overall, that I will hit a very low-odds
jackpot, the kind of lucky payoff that would net me the entire $200 bonus.

Rationally, therefore, my best strategy is to concentrate upon one specific
game, a slots game, which I did. Once prepped, I should divide the amount of
time I have left by the time it takes for a single play of the game, to get
the number of plays I can make in the allotted timeframe. Once gotten, I
should bet an amount equal to $500 divided by the number of plays I can
squeeze into that allotted time. All it takes is one lucky jackpot to put me
into the winner's circle, relative to the standard $50 bonus I would get
anyway. This implies that I should put myself in the hands of Fate by
picking one line per game, and going for the largest amount of the bet
mandated by the earlier calculation of bet amount. Betting multiple lines -
placing multiple bets on a single outcome of a game - and shaving the bet
amount per line to match this splitting, by intuition, is a way to make my
winnings closer to the average take, which is 100% minus the house's cut.
(Recall, though, that a multi-line bet is many bets on a single outcome,
much like drawing several cards from a deck instead of drawing one and
reshuffling is.) Since there is no need for me to be "prudent" in that way,
why should I?

Old habits do die hard, mind you. Those who know of the late Milton
Friedman's pool-player analogy wouldn't be too surprised by the revelation
that it took me 20-or-so minutes to make this intuitive calculation: bet a
dollar on the single line, as quickly as possible, until the clock runs out.

As the hour continued, I did, briefly, get above $550 in the pot, but only
slightly above. For most of the game - unsurprisingly - I was below $500.
For a short stretch of time, early in the gaming session, I was below $250.

But, as I indicated, why should I care? If I have enough time for 500
single-line slot bets at $1 a crack, the difference between the pot going to
$250 and the pot going to $0 means nothing - nada. The same conclusion
applies to a pot of any size below $550.01. A real Chicagoite would consider
me to be too prudent, for refraining to factor in any expected winnings.
This criticism would be decisive had it not been for the (debatable)
one-line reasoning above and the fact that $1 was the biggest bet I could
make.

If the analogy between gambling and business is accepted, then the above
calculus can be transferred, whole cloth except for specific details, into a
micro-grant government program model. If I have $500, or $5000 or $50,000,
of government money to start a micro-business, with no obligation to kick in
any of my own money but the obligation to roll the first $50, $500 or $5000
(respectively) in profit into a "welcome matching grant" for another
business-assistance program, then I may as well go for the lucky, if
high-risk, score - the kind of business which gives me the greatest odds of
getting a gross payback of $700, $7000, or $70,000, respectively. It could
be considered irrational for me to shoot for a "welcome bonus payout"
greater than 40% of the original stake, but there is a long-term
compensation for me if I do so, in the verifiable claim that I not only was
no "freeloader," but indeed was a more-put-upon-than-thou taxpayer, thanks
to the 100% surtax! The welfare gains resulting from this brag are, of
course, quite a challenge to quantify, but they are potentially there.

And, of course, to continue the analogy, I not only would have no potential
losses, except for possible losses of time and reputation, but would qualify
for the regular governmental "welcome bonus" anyway, no matter how I do.
Shrewd economizing on my part can even minimize the reputation and time
losses should such a business go down the toilet.

Unfortunately for me, though, I have to claim that I'm not a superb
economizer at all. At the end of my frantic play, the pot stood at $507.01.
The $50 welcome bonus was all that I rated. In addition, the allocated $500
was "replaced" by $507 plus a penny. Yes, I have to admit that I was sap
enough to feel good about "returning" $500 plus a little to the "treasury."

Online gambling

There's no denying it, punters in the UK love to have a flutter. That
explains why there are more than 8,000 bookmaking outlets huddling among
Britain's clothes shops and restaurants. But you don't even have to leave
the comfort of your own home to place a bet these days. The online world is
quickly catching up with its high-street opposition. In 2005 and 2006,
according to estimates from MarketResearch.com, the online gambling business
flowered, with an estimated 2,300 gambling sites on the internet today. The
internet may offer more opportunities to bet but that is no reason to throw
caution to the wind. As the UK charity GamCare puts it: "Gambling can be
great fun, but it's also important to know when to stop and what the danger
signs are." With an estimated £1bn wagered on this summer's FIFA World Cup
alone it is big business, and there're a lot of gamblers who won't be seeing
the money from their bets again. So let's be clear from the start: gambling
is not an investment. If you can't afford to lose it, don't bet with it. The
gambling world may only have been pulling in internet punters for the past
10 years, but the ability to lose your shirt on the web now comes in many
different flavours. Imagine any kind of gambling you can do in the real
world and you can usually find the equivalent game of chance online. Whether
it's the football Pools, horse racing, the dog track, lotteries, dice,
bingo, roulette, blackjack, slot machines, backgammon or poker, someone is
always willing to take your money. Whether you get it back or not depends on
your luck. Perhaps the easiest way to gamble online is by visiting one of
the online bookmakers. These tend to offer the same service you could expect
if you walked into any William Hill, Victor Chandler, Paddy Power or
Ladbrokes betting shop. As with the vast majority of sites, you sign up with
a debit or credit card, which is used to transfer money to a gambling fund.
And if your luck's in, winnings will be paid into the same account. Bets can
be placed on everything from Premiership football to golf by clicking the
checkboxes, in much the same way you would use a pencil on a form in the
real shop.

Of course, if you subscribe to the belief that in the long run you can never
beat the bookie, there are even ways around that. With sites such as Betfair
you can bet as normal and try and beat odds set by someone else, or you can
become the bookmaker and set odds for other people.

This second option is known as 'laying' the bet. For example, you could
decide Chelsea won't win the Premiership come May 2007 and 'lay' them at
odds of two to one. If someone bet £100 on Chelsea winning the league, you
would owe them £200 if Jose Mourinho's men lift the trophy. But you would
get to keep that £100 if the Blues don't retain the title.

Tuesday, December 05, 2006

Packer game on gambling pursuits

It could also prove the defining event in his personal corporate and
business development -- cementing his commitment to a Pacific and then
global gaming future. For the first time, we can reveal the full detail of
this extraordinary resort casino proposal, dubbed "Harry's Island", on
Singapore's Sentosa Island. Ostensibly, the "Harry" is mid-20th century
Howard Hughes-style adventurer Harry O'Brien, who "discovered" Sentosa.
Observers though have pondered whether it is entirely coincidental that
Harry is also the affectionate family name of the founder of modern
Singapore, Lee Kuan Yew. Whatever, the Singapore Government decides next
week between the "Eighth Wonder" consortium, of which Packer and his Macau
casino partner Lawrence Ho are members, and two tough competitors. One is
the Malaysian Genting group, which has teamed with Universal Studios in a
themed resort. The other is the Bahamas-based Kerzner casino group, which
has teamed with a Singapore company backed by the government-owned Temasek
investment arm. The Eighth Wonder proposal is far bigger than the other two
and way, and I mean way, over the top. It's already been revealed that the
group has possibly the world's best known sportsman -- soccer legend Pele --
to headline its sports offer. But that's only the start. You want to promise
the world's best restaurants? Roll out Alain Ducasse and his 14 Michelin
stars. Spectacular entertainment while the guests are chowing down? That
will come from Franco Dragone, who was the creative director behind much of
Cirque du Soleil. An oceanographic water world? It has to be Cousteau. Well,
it can't be the late Jacques, so instead it's grandson Philippe. A wellness
centre after a night at the tables? Deepak Chopra. Adventure park? Who else:
Mr Universal Studios Bob Ward. Spectacular events? The man behind the 2006
Winter Olympics ceremonies, Marco Balich. Fashion? Vera Wang.
You want to make sure the tables run on time? Good old German engineering in
Siemens. Oh yes, and these days security is a basic requirement. So who else
to oversee that but Mr 9/11 himself, Rudy Giuliani.

The main player in the consortium is Mark Advent, who built the New York New
York casino in Las Vegas. But Packer and his Hong Kong partner bring an
absolutely critical regional component.

Two points about Packer and his PBL group are to be made if the consortium
wins. The commitment will be less than half a billion dollars, soaking up
only a small part of the $4.5 billion released from the half-sale of the
local media assets.

SO IT does not itself preclude Packer/PBL going deeper into media if he
wanted.

In financial terms, it's not an either-or. But if he wins, it will cement
his focus on building his gaming-resort business around this side of the
Pacific -- from Macau through Singapore to the two casinos in Australia, at
Burswood in Perth and Crown in Melbourne.

This would irresistibly build into a push into gaming and resorts in the US.
And it would absolutely bury any possibility of going deeper into 20th
century media in Australia, where the focus is decidedly online.

What tends not be understood is the way Packer actually inherited a business
that he had created. At least remarkable, quite possibly unique.

Very pointedly, not the media side, but the gaming side which he and Peter
Yates -- first as a Macquarie adviser and then as PBL CEO -- built over
father Kerry's rather grudging acceptance.

If you've inherited a company you take great pride in having yourself built,
why would you be that committed to the part you only inherited?

Vodka, gambling paraphernalia, list of VIPs located on accident vehicle; Bid to smuggle container of fireworks foiled

Three persons who were injured in a two-vehicle collision have been admitted
to a hospital, reports Al-Watan daily. A police source said a pick-up truck
overturned after crashing into the car driven by a young Kuwaiti woman.
Inside the overturned pick-up truck police found a roulette machine and
three bottles of vodka. It has been reported the occupants of the pick-up
truck - an unidentified man, a young woman and her mother - were all under
the influence of alcohol. They will be referred to a police station for
interrogation after they are discharged from the hospital, says a reliable
source. Police have also found in the vehicle a list containing names of
VIPs and information on gambling activities. Smuggling bid foiled: Customs
officers at the Shuwaikh Port recently foiled an attempt by a Kuwaiti man to
smuggle fireworks into the country, reports Al-Rai daily. The daily quoting
a reliable source said a customs officer suspected a container arriving from
China. Shipping documents showed the container carried a cargo of furniture
however, when the officer ordered to search the container several cartons
containing fireworks were found hidden among furniture. The 'importer' has
been detained for interrogation. Stray bullet hits Bangladeshi: Police are
looking for an unidentified person for accidentally shooting at a
31-year-old Bangladeshi man in the head. The victim has been admitted to the
intensive care unit of the Jahra hospital, reports Al-Watan daily.
Unconfirmed reports said the man was hit by a stray bullet said to have been
fired by an unidentified person during wedding celebrations in a neighboring
house. Sponsor accused of rape: A lawyer representing the embassy of an
Asian country has filed a complaint with the police accusing a Kuwaiti man
of raping a maid - citizen of that country - during a probation period,
reports Al-Watan daily. However, when the sponsor was summoned by police, he
denied the allegation saying the maid had fabricated the story because he
refused to give the maid two months salary in advance. The daily did not
give more details.

Cash taken from eatery's till: Police are looking for an unidentified person
who allegedly broke into a fast food restaurant in Julai'a and escaped with
KD 276 from the cash box, reports Al-Rai daily. The daily did not say how
the suspect got into the restaurant and when the cash was stolen.

Fake police rob Pakistani: Police are looking for four unidentified persons
for impersonating police and stealing KD 500 and a cell phone of a Pakistani
man, reports Al-Rai daily. In his complaint to police the victim, identified
only as M.A., told police the men waylaid him in Salmiya and demanded to see
his identification papers. One of the men then grabbed the wallet from his
hand and escaped on foot.

Police foil robbery attempt: Police have arrested three Egyptians for
attempting to steal electrical cables from a contracting company in Bneid
Al-Gar, reports Al-Rai daily. The suspects were caught in the act by a
police patrol. Patrolmen saw two vehicles parked in a suspicious manner and
when a police officer asked the men what they were doing in the area they
claimed one of the vehicles had broken down. The police patrol pretended to
drive away and kept a watch on the movement of the suspects from a distance
and caught them red-handed while breaking into the site of the contracting
company. During interrogation they admitted to planning to steal the cables.

Man loots compatriot woman: Police have arrested an Egyptian man for
assaulting a compatriot woman, threatening her with a knife and snatching
her handbag containing KD 650, reports Al-Watan daily. Police arrested the
suspect and recovered from him part of the loot after the woman gave police
his description.

Family rescued from blaze: Timely arrival of fire-fighters saved the lives
of an entire family after their house in Khaldiya caught fire, reports
Al-Qabas daily. The first floor of the house where the family lived was
totally destroyed. Two fire-fighters suffering from asphyxiation were given
first aid on the spot.

Docus stolen for stamps: Police are looking for an unidentified person for
breaking into the General Customs Department and stealing official documents
containing revenue stamps, reports Al-Rai daily. A security source said
police investigations revealed the man got into the department by climbing
over the fence. Police believe the suspect might have stolen the documents
to get hold of the revenue stamps. According to published reports recycling
used revenue stamps and selling them for a cheaper price is common in
Kuwait.

Girl 'rescued' from bedoun: Police have arrested a bedoun youth for
kidnapping a 13-year old girl, reports Al-Rai daily. A police source said
securitymen conducted intensive investigations after the girl's mother filed
a complaint with a local police station. Acting on a tip-off police raided a
camp in Julai'a and 'rescued' the girl.

Iraqi girl attempts suicide: A 20-year-old Iraqi girl who tried in vain to
end her life by swallowing a large dose of a chemical has been admitted to a
hospital, reports Al-Watan daily. The daily did not give more details.

Maid jumps to her death: An Indonesian maid allegedly jumped to her death
recently from the fourth floor of her sponsor's apartment in Mahboula,
reports Al-Watan daily. During customary interrogations at a police station
the sponsor was quoted as saying the victim had earlier tried in vain to run
away from his home because of what he said some 'disagreement'.

Liquor sold in plastic bags: Police have arrested an Indian man for trading
in locally-manufactured alcohol, reports Al-Watan daily. The man was caught
by a police patrol on suspicion after he was seen carrying a plastic bag
which contained nylon bags filled with alcohol. The suspect was arrested
inside a commercial complex in Salmiya.

'Versus' unchanged, man deranged: An unidentified Syrian man who claimed to
have found a copy of the Holy Quran with 'changed' verses, has been referred
to the Psychiatric Hospital, reports Al-Watan daily. It has been reported
the man walked into a police station claiming he found the copy of the holy
book inside a mosque in Jahra and during interrogation police discovered the
man was suffering from mental problems.

Reputed mob underboss arrested in gambling-extortion probe

A reputed underboss of the New England Mafia was arrested Friday on gambling
and extortion charges, authorities said. Carmen Salvatore DiNunzio, 49, was
arrested by state police in Boston's North End after being indicted by an
Essex County grand jury on charges of extortion, maintaining and operating a
gaming operation, and conspiracy to maintain or organize a gaming operation,
the Essex District Attorney's office announced. DiNunzio, an East Boston man
known as "The Big Cheese," operated a cheese shop in the North End. He
allegedly rose through the ranks of local organized crime to become
underboss about four years ago, running Boston rackets, The Boston Globe
reported. A state police officer testified in federal court last year that
Arthur Gianelli, a Lynnfield bookmaker and brother-in-law of former FBI
agent John Connolly Jr., was paying DiNunzio $2,000 a month for permission
to operate his gambling business. Gianelli is facing trial on federal
racketeering charges. The Essex County District Attorney's office said
authorities have been investigating alleged mob-related extortion of
bookmakers involving DiNunzio since 2001. William Angelesco, 35, of Chelsea,
was arrested earlier this year in a related case, charged with promoting and
organizing a gambling operation. Angelesco was acquitted last year in an
alleged revenge slaying at a Revere strip club in December 2001. DiNunzio is
held on $250,000 bail at the state police barracks in Danvers pending his
arraignment on Monday in Salem Superior Court. He could face up 15 years in
prison if convicted.

NKorean nuke test and Japanese gambling habits intersect at pachinko

Gambling at pachinko was a lot more fun for Reiko Kuzuhara before she
started wondering whether maybe -- just maybe -- her losses were helping
North Korea build nuclear weapons. Pachinko, a form of pinball deeply loved
in Japan, is an industry run by ethnic Koreans, and experts have long
believed that the revenues are a vital source of hard currency for the
impoverished regime in Pyongyang. Now, as North Korean leader Kim Jong Il's
nuclear weapons program gathers pace, Japan's attitude is hardening, and
that includes shutting out the ferry on which the gambling money is believed
to be hand-carried from Japan to North Korea.
"I really don't like that the money I spend could be helping them with those
sorts of things," said Kuzuhara, 55, who works in the printing industry and
was interviewed on a Tokyo street near several pachinko parlors. "It's
making me think twice and cut back on how often I play." The pachinko
connection is facing increased scrutiny as tensions rise following North
Korea's ballistic missile tests in July and its first test of a nuclear
device on Oct. 9. Pachinko is an upright pinball game played at tens of
thousands of brightly lit parlors across the country. Success is measured in
little steel payoff balls, which can be exchanged for cash or other prizes.
The machines are believed to rake in more than 27 trillion yen a year, some
of which finds its way to North Korea. Official figures put the sum of
remittances to North Korea from sources in Japan at 3 billion yen in fiscal
2005, more than 90 percent of which was hand-delivered. But the bookkeeping
is murky and some think the real sum could be as high as to 10 billion yen.
No one knows how much of it derives directly from pachinko and how much from
another major source of income for North Korea in Japan -- imported
methamphetamines.

"It's very difficult to say how much cash is actually going from Japan to
the North," said Toshio Miyatsuka, a specialist on North Korea at Yamanashi
Gakuin University in central Japan who has written a book about the pachinko
industry.

"But it does seem certain that a lot of it is winding up in the hands of the
North Korean government and military, and that includes money earned from
drugs and pachinko," he added.

The Ministry of Finance requires reports for large sums of money going to
the North, but only for 300 million yen or more for wire transfers and 10
million yen or more for money delivered in person.

With much of the money going to North Korea hand-delivered, the banning of
the Mangyongbong ferry from Japanese ports in July has almost certainly put
a crimp in the cash flow.

Government officials, however, say it's hard to track money delivered
through third countries, in person or through bank accounts. Cash from the
drug trade traveling through Japan's underworld is likewise hard to monitor.

For the pachinko industry, however, North Korea's image problems and the
sanctions have not been a business issue, officials say.

While ethnic Koreans may worry about how relatives in the North are faring
without the cash they used to take to them, their main concerns as
businessmen lie elsewhere.

"Yes, there are a lot of ethnic Korean operators, but the industry is not at
all concerned about the sanctions issue," said Takaaki Sasaki, spokesman for
Zennichiyuren, an industry organization. "We're not hearing about anyone
losing business because of the missiles or the nuclear test."

Still, the connection between pinball revenues and North Korea makes some
Japanese pachinko players uneasy.

Monday, December 04, 2006

Rendell signs bill allowing free drinks at slots parlors

Gov. Ed Rendell on Wednesday signed legislation to let Pennsylvania's
slot-machine parlors serve unlimited free alcoholic drinks to gamblers - a
measure that allows an exception to the state's current limit of one free
drink per person. Rendell, however, said he expects state gambling
regulators to include "control mechanisms" in licensing agreements with the
operators of gambling establishments, such as possibly limiting the
per-person distribution of drinks to one per hour.
"Virtually every gaming operation around the world has this amenity, but
there are rules and regulations that control it and limit it," Rendell said
at a news conference on another topic. "There is a tendency ... to think
that these gaming institutions or gaming businesses want people to get
falling-down, sloppy drunk so that they'll lose more money. That isn't the
case." The bill passed 27-22 in the Senate and 112-75 in the House on Nov.
21, before the Legislature adjourned for the year, ending its two-year
session. Proponents of the measure say it is necessary to allow
Pennsylvania's gambling establishments to compete with those in other states
where around-the-clock free drinks are customary.Under current law, the
state's horse racing tracks cannot serve any free drinks, and other licensed
establishments, such as bars and restaurants, can serve up to one free drink
per patron.The bill will allow 14 slots parlors, including the ones at
racetracks, to serve free drinks during the hours that licensed liquor
establishments can serve them, from 7 a.m. to 2 a.m. Lawmakers who opposed
the bill called it both irresponsible and unfair to other establishments
that serve alcohol.

Nemacolin Resort Drops Slots-License Bid

FARMINGTON, PA-Nemacolin Woodland Resort has withdrawn its application for a
slot-machine gaming license. Seven Springs Mountain Resort in nearby
Champion withdrew its application a month ago. The exit of both leaves the
Pennsylvania Gaming Control Board with no applications for the two Category
3 licenses that were set aside for established resorts that would permit 500
slot machines at each. Las Vegas-based Boyd Gaming Corp., which had applied
for one of the two Category 2 licenses to be granted for what the board
calls "tourism-enhanced" locations, has also dropped out of the running.
This category allows for up to 5,000 slots over time. As a result of the
withdrawals, the board will be able to issue just 11 of the 14 licenses to
be granted by the state. The reasons for the three withdrawals are varied.
According to a statement by locally based Nemacolin, it dropped its bid
because the gaming board required that patrons of the resort would have to
spend $25 on non-gaming purchases each visit before being permitted to play
the slot machines for the resort's planned Wild West casino. "The law
clearly indicates that these Category 3 licenses, which allow just 500
machines, are to be an added amenity for use by guests of an existing
resort," Doug Harbach, with the board, tells GlobeSt.com. "It's always been
written that way, but it became obvious a month ago that Nemacolin hadn't
interpreted it that way. Their decision to withdraw was a business
decision." Seven Springs "was a very different matter," Harbach says. This
June, as reported by GlobeSt.com, the resort was acquired by the Nutting
family, which also has ownership in the Pittsburgh Pirates. Major League
Baseball prohibits team owners from also owning gambling venues. The
Nuttings' "attempted to re-formulate the ownership structure to avert the
MLB ban, but the family was still at the top of the ownership chain,"
Harbach says, adding, Seven Springs' withdrawal "was an MLB issue." Boyd
planned to develop a $325-million casino in Limerick Township. Faced with
opposition from the community, the township's board of supervisors failed to
endorse the plan. Six Category 1 licenses that apply only to horse-racing
tracks have been granted. The board will vote on the remaining applications
on Dec. 20. "Sometime in the future," Harbach says, "the board will announce
plans for filling the three open applications." Meanwhile, State Rep.
William DeWeese, who is expected to become speaker of the state House of
Representatives in January, has announced that he will introduce a bill to
legalize poker, blackjack and other table games in the state's gambling
venues. The current law allows only for slot machines. Gov. Ed Rendell has
promised to veto such legislation.

Don't forget counseling for addicted gamblers

State regulators and lawmakers eagerly have been counting the take from the
Mohegan Sun at Pocono Downs, the first slots parlor in the state. It is
abundantly clear already, in this new era of gambling as a primary source of
state revenue, that the state government cares little about the negative
aspects of the new industry - so little that it allowed casinos to open
without establishing a crucial aspect of the state's own gambling law. That
law requires the establishment, by the state government, of a treatment
program for gambling addicts to be funded by part of the state's gambling
take. No such program is in place, even though the law itself requires the
casinos to advertise the state program to its customers. According to the
state Department of Health, a program will be in place six to eight months
from now, but it does not even know if it will operate the program itself or
contract it to a private treatment center. In the meantime, the Mohegan Sun
at Pocono Downs has advertised the number of a private treatment program in
Philadelphia. But, due to a lack of funds, that program often does not have
enough personnel to provide counseling, so callers are greeted by a
recording. Even when the state manages to meet its legal obligations by
establishing a program, that likely will be underfunded, as well. The state
expects to collect $1 billion a year from the casino operations, but has
mandated a minimum contribution for addiction treatment of just $1.5 million
a year, which could rise depending upon the total take at the slots. From 4
percent to 6 percent of all gamblers develop gambling addictions, according
to Gamblers Anonymous. And the likelihood of addiction doubles for people
when a casino opens within 50 miles of their homes. All this should be
alarming to state lawmakers . . . but wait - lawmakers are counting on
addiction to help fuel the state's take. These are the same people, after
all, who passed a bill in the dead of night, without debate and minutes
before the end of the legislative session, which would allow casinos to
serve unlimited free alcohol to patrons.

Gov. Ed Rendell should veto that utterly irresponsible bill, and expedite
the creation of an effective program to treat the addicts that the state is
about to help create.

Deal Struck In Gambling Ring Aimed At NHL

An alleged accomplice in a multimillion-dollar New Jersey betting ring
catering to NHL fans plans to testify against a reputed ring leader, reports
say. James Ulmer, alleged to have taken bets for the ring, was expected to
plead guilty in Superior Court to promoting gambling and conspiracy, the
Newark Star-Ledger reports. Ulmer then reportedly would testify against Rick
Tocchet, a former NHL player and assistant coach. Ulmer, 41, would expect to
serve 364 days in county jail, an official said, and return money earned
from the ring during its five-year run. Ulmer, Tocchet and former State
Trooper James Harney were charged with accepting more than 1,000 wagers
worth $1.7 million during a six-week period last year. Activity ended after
last season's NFL Super Bowl. The investigation implicated some of the top
National Hockey League players, in addition to the wife of hockey legend
Wayne Gretzky.

Sunday, December 03, 2006

Rendell should have vetoed 'free drinks' bill

Coins have been dropping for less than a month at Pennsylvania's first slots
parlor, and already, the General Assembly has made the first of what will
certainly be many heartless concessions to the casino cartel, citing
''competition'' from neighboring states. What is this heartless concession,
you ask? Well, now that Gov. Ed Rendell signed the new bill, casinos will be
able to ply their customers with a mind-altering, judgment-impairing drug,
19 hours a day - for free! Yes, the latest turn in Pennsylvania's downward
gambling spiral is the legalization of free alcoholic drinks to slots users.
The legislation, sponsored by Sen. Sean Logan, D-Allegheny, passed the state
Senate by a vote of 27-22 and the state House by 112-75. This follows a vote
by the state Senate just last month to exempt casinos from smoking bans
enacted by local municipalities. (Thankfully, that measure then failed to
pass the state House.) Some lawmakers said that they wanted to exempt
casinos because they feared that bans on cigarettes would reduce the number
of slots players and thus reduce the amount of revenue. Apparently, there's
no such special concern for the business impact on the myriad of mom-and-pop
taverns and restaurants that are affected by the smoking bans already in
place in Allegheny and Philadelphia counties. It's a gambling protection
program at work here. It is equally appalling that one United Way chapter
recruited hundreds of gamblers from among its volunteers for the pre-opening
test-run of the first slot machines at Pocono Downs on the weekend before
opening day, with proceeds promised to compulsive gambling programs. Press
reports said that the local United Way of Wyoming Valley was excited about
the opportunity to thank volunteers in that way. Funding notwithstanding,
it's the United Way agencies that should know that dual and triple
addictions are common, such as alcoholics who are also hooked on gambling
and smoking. It's the social service world that will be forced to handle the
fallout from the new crop of local citizens who become gambling addicts. It
has happened in every other state, including those states our lawmakers say
that we need to ''compete'' with. Imagine, if you will, allowing a car
dealer to offer free booze to a customer while he tries to close the sale
and get the customer to sign on the bottom line. Or a stock broker who leads
an investor into the latest deal after plying him with drinks during a
version of happy hour!

Most people would deem those business practices unthinkable and in fact,
they might create unenforceable contracts. Under Pennsylvania's common law,
a person may avoid contractual obligations if the contract was formed while
he was visibly intoxicated. In other words, they are assumed to be victims
of the deal since they signed the bottom line while their judgment was
impaired by alcohol (or drugs).

Of course, the tragic actions of our General Assembly with regard to casino
gambling didn't start with the vote on free booze. These concessions to the
casinos will become all-too commonplace as one addiction literally feeds
another.

It's a double-minded government that has its state police rightfully warn
the public to ''Click it or Ticket'' to get us to buckle up, especially for
holiday travel and meanwhile seems to abandon its concerns for safety and
well-being of certain citizens when it comes to casinos and the almighty
gambling dollar.

Perhaps our General Assembly and the Gaming Control Board should take a
lesson from another state agency, the Pennsylvania Liquor Control Board. For
years, the PLCB has warned us against drinking and driving with a bumper
sticker that says, ''Impairment begins with the first drink.''

A Veteran Moderate Moves On

The House of Representatives wastes no sympathy on defeated members. So at
the beginning of this week, Jim Leach of Iowa sat in an office almost devoid
of furniture, the walls stripped bare of the mementos of his 30 years of
service -- with just a few hours remaining before the painters moved in to
prepare his domain for its new occupant. Leach, who once was chairman of the
Banking and Financial Services Committee, would have been in line to head
the Committee on International Relations in the next Congress, had
Republicans maintained their majority and had he been reelected. But he
lost, 51 percent to 48 percent, to college professor David Loebsack, as
Democrats won top-to-bottom victories in Iowa this month. Leach, noted for
his independence, was the only Iowa legislator to oppose going to war in
Iraq. That kind of record helped him prevail in past races despite his
heavily Democratic district, which gave a higher percentage of its
presidential vote to John Kerry than any other district held by a
Republican. But this year two special factors helped tip the balance against
him. First, he became a target for crafting the Unlawful Internet Gambling
Enforcement Act, which passed Congress as part of a larger bill in October
and was signed into law just before the election. The Poker Players
Alliance, which had fought the measure banning banks and credit card
companies from servicing Internet gambling firms, targeted Leach and other
sponsors with e-mails to its members and publicity in poker magazines. A
post-election survey paid for by the gambling group found a net 5-point
swing against Leach attributable to that issue. John Pappas, the spokesman
for the alliance, said it is putting together a presentation for the new
members of Congress using Leach's experience to show that "this issue is not
a winner for them; in fact, the main proponent was hurt by it." The alliance
wants poker exempted from the Internet gambling ban or the ban lifted in
favor of government regulation and taxation. In addition, the Christian
Coalition criticized Leach for his support of embryonic stem cell research
and for his insistence that the national GOP drop a planned mailing
attacking Loebsack on the issue of gay marriage.

"But the big force," Leach said in a conversation in his nearly empty
office, "was the accountability thing -- the overwhelming dissatisfaction
with the Republican Congress."

Because he can understand and even sympathize a bit with that feeling, Leach
said, "I am probably the least disappointed defeated member" of the vanished
Republican majority.

On the other hand, the man who was known as "the conscience of Congress"
because of his personal high standards -- no PAC money or out-of-state
contributions -- said he regrets not being part of the policymaking at "a
really critical moment for the United States in its relations with a
changing world."

And he worries about the political dynamics of a Congress that is more and
more polarized -- and therefore less and less representative of the American
mainstream.

Leach was one of eight members of the dwindling tribe of Republican
moderates who lost their seats this election, unable to separate themselves
from the public rejection of a conservative-dominated White House and
Congress.

In Leach's view, while presidential races tend to pull candidates to the
center, in Congress the abundance of "safe" seats, gerrymandered to
guarantee victory to one party or the other, makes party primaries the
critical elections. And in those low-turnout primaries, it is the
activists -- usually no more than "one-quarter of one-third" of the
electorate -- whose views prevail.

"The Republicans have been governing from within" their party base, rather
than reaching out to the other party, he said, and now that Democrats have
the majority, they will be tempted by electoral dynamics to do the same
thing.

It is possible, Leach said, that a new president could change the pattern,
and he is rather hopeful that his early picks for the nominations -- Mitt
Romney and Barack Obama -- might do that.

Saturday, December 02, 2006

DEFINITIVE ONLINE GAMBLING BUSINESS DIRECTORY NOW AVAILABLE

Casino City Press announced the availability of the Winter 2007 edition of the Gaming Business Directory this week. Widely viewed as the definitive business directory for the industry, the publication is a 750-page reference containing the most current information available on over 3 500 gaming properties around the world, plus 500 property owners, with detailed property profiles and 25 000 casino and gaming executive contacts including names and titles across 40 departments. To ensure the Directory's accuracy and timeliness, Casino City's research team makes more than 1 000 updates a month, including over 8 000 executive contact changes since the last edition. The Directory is an indispensable resource for anyone doing business in the gaming industry. Suppliers use it to grow their business by marketing to casino executives or gaming manufacturers, and casino executives use it for competitive analysis and to identify key players in every jurisdiction worldwide. The new edition features expanded, up-to-date information about individual properties. In addition to location and contact information, names and titles of executive contacts, number of table games, gaming machines, hotel rooms, square footage, entertainment venues and attractions, and names and types of facilities for bars and restaurants, the Winter 2007 Directory includes cross-reference lists of Class II and Class III tribal gaming facilities, riverboat casinos, casino cruises, cruise ships, racinos, and tracks plus top casinos ranked by number of gaming positions, slots, table games, and hotel rooms. The information in the Gaming Business Directory is available in print, on CD and through the web with Casino City's Gaming Directory Online Service, which allows for instant access to up-to-the-minute data with powerful report building tools, saved searches, immediate downloads, and a who's who lookup.

UK Releases Gambling Licensing Codes

The U.K. has taken another step to allow most forms of gambling within its borders. A document containing general codes and conditions for the gambling industry was today released by U.K.'s Gambling Commission. The "License Conditions and Codes of Practice" document outlines everything from technical specifications of gambling equipment to pool betting. Also starting next fall, people will be able to play poker in pubs that choose to allow it. By next fall, the U.K. will have all the rules and regulations in place to have both online gambling companies — including poker sites — brick and mortar establishments,
located there. All gambling operators who want to work in the U.K . must be licensed through the Gambling Commission. "Another milestone has been reached by the Gambling Commission in publishing these conditions and codes today," said Peter Dean, the Commission's chairman. "The conditions and codes set out the rules which operators must observe to meet our three licensing
objectives of keeping crime out of gambling, ensuring that gambling is fair and open, and protecting children and other vulnerable people." In October 2005, British lawmakers established the Gambling Commission to collect taxes from both online and land-based card rooms and casinos, and to also ensure that consumers are protected at all times. This, of course, goes against the stance that the U.S has recently officially taken when it passed the Unlawful Internet Gambling Enforcement Act to target the cash flow to and from American accounts.

The U.K.'s Gambling Commission held a symposium a few weeks ago that included
representatives from more than 30 countries around the world. The conference was held to
jump-start dialogue among the attending countries to figure out the best way to regulate
online gambling.
Representatives from the U.S. did not attend. The codes that were published today did
not include any details about how online gambling will be taxed and regulated. These
rules will be in place by next fall.

Twelve to stand trial for organized gambling

The major ring, led by Ngo Tien Dung alias Dung Kieu, was found to have handled bets of over US$10 million within three months from December 2005 till February 2006. Dung and his subordinates will face two counts of gambling and organized gambling after earning illegal profits of $200,000 from betting pools during the period, police documents state. The ring, which started operations in 2004, mainly bet on football matches in European leagues. It collaborated with betting firms in Hong Kong and Cambodia and managed the action via the Internet. In Vietnam, it set up a network of bookies from the north to the south at Hanoi, Hai Phong, Thai Binh, and Ho Chi Minh City. Eleven other offenders include Nguyen Ngoc Quang, Nguyen Thanh Chon, Vu Manh Ha, Nguyen Ngoc Ha, Hoang Tuan, Ta Quoc Lich, Bui Thi Thanh Thuy, Bui Thanh Phong, Le Quang Loc, Nguyen Minh Toan, and Vu Van Hien. Besides facing the two gambling-related counts, the ring leader Dung Kieu is also charged with murder. In 1988, when he was jailed in northern Bac Thai (nowadays Thai Nguyen) province he beat to death cellmate Hac Van Trong for stealing a piece of pork. The case had yet to be brought to light by investigators, which is until Dung was arrested last year as a result of the gambling investigation.

ONTARIO GAMBLING AUTHORITIES UNDER FIRE AGAIN

Ontario gambling officials, already under critical scrutiny for questionable lottery retailer conduct and supporting political attempts to ban advertising for online gambling were facing further protests this week regarding the sale of already won scratch cards. Ontario media reported that a national gambling watchdog group has claimed that current scratch card sale practices are unfair and misleading to the consumer. The Gambling Watch Network has reportedly complained to Ontario's ombudsman that scratch tickets are sold even after the top prizes have been won. A spokesman for the watchdog group said retailers should stop selling tickets if the buyer has no chance of winning the jackpot. Apparently similar scratch card practices have been the subject of scrutiny and lawsuits in the United States, causing some state lotteries to include disclaimers on the tickets explaining that some prizes may already be won.

Friday, December 01, 2006

Pull 'misleading' scratch tickets, gambling watchdog group urges

A national gambling watchdog group has raised new concerns about lottery scratch cards sold in Ontario, charging that current practices are unfair and misleading to the consumer.The Gambling Watch Network filed a letter with Ontario's ombudsman complaining that scratch tickets are sold even after the top prizes have been won. Brian Yealland, the group's spokesman, said retailers should stop selling tickets if the buyer has no chance of winning the jackpot.(CBC) "People go on purchasing those tickets although they have no chance of winning, and it seems to us that this is a breach of the understanding one has in buying a ticket," Yealland said. This practice has been the subject of scrutiny and lawsuits in the United States, causing some state lotteries to include disclaimers on the tickets explaining that some prizes may already be won. In Iowa, instant win tickets are pulled from stores once the grand prizes have been claimed, said Tina Potthoff, a spokeswoman for the Iowa State Lottery. "We want to make sure our players have a chance to win the top prize every time they purchase a ticket," Potthoff said. "If by chance a top prize is missing and they only have a second- or third-tier prize, we feel that's false advertising." A spokesman for the Ontario Lottery and Gaming Corporation said players can call a toll-free number printed on the back of each scratch and win ticket to find out which prizes are still available to be won.

Study gives snapshot of casino gambling

A multi-year study has given the first glimpse into the impact of increased casino gambling in Surrey and Langley The socio-economic impact study being conducted for the provincial government is tracing the effects on local residents of the spring 2005 opening of the Langley Cascades casino and of slot machines at Fraser Downs racetrack in Surrey, plus two facilities in Vancouver. Researchers surveyed residents at random as well as patrons in casinos. Their first-year findings show the percentage of problem gamblers in Langley City climbed from 2.5 per cent in 2004 to 4.9 per cent last year. The rate climbed from 5.6 to six per cent in Surrey, but actually fell in Langley Township from four per cent to 2.6 per cent in 2005.
The firm behind the study, Blue Thorn Research and Analysis Group, concluded the change was not statistically significant.
"The venues appear to have produced new gamblers," the report found. "Some people are now gambling at the venues that previously did not gamble. It is possible that some of these new gamblers may develop problems." Researchers also interviewed nine counsellors who work in the region with problem gamblers. Obvious impacts were limited because the facilities are new, the counsellors said, adding their clients "were already in trouble well before these facilities opened." The report said the counsellors believe the casino in Langley may have led to an increase in the number of mental health clients there, because of the casino's proximity to low-income housing and residents without ready transportation. The counsellors also suggested the addition of new gambling sites creates "enormous temptations" for problem gamblers, and the increased convenience and visibility increases the risk of relapse. Overall, the report concludes that based on the first year's findings the new casinos have had a relatively small impact on general gambling behaviour. In 2004, about 76 per cent of Langley City residents surveyed said they never played slot machines. That number fell to about 60 per cent in 2005 after the casino there opened (versus about 64 per cent for Langley township.)

About 40 per cent of Langley City residents surveyed said they gambled at the casino after it opened, versus 30 per cent of Langley Township residents.

In contrast, 74 per cent of Surrey residents surveyed said they didn't play slot machines in 2005 – actually up slightly from 73.7 per cent in 2004 prior to the installation of the Fraser Downs slots.

Surrey residents who do gamble at slot machines don't automatically go to Fraser Downs – it was fourth on the list of where they normally play slots, behind Las Vegas/Reno casinos, River Rock in Richmond and Cascades in Langley.

Eleven per cent of those surveyed in Surrey said they did gamble at Fraser Downs in 2005 and spent on average $54 per visit.

Langley City residents spent an average $36 per visit, but more – nearly six per cent – said they go every day.

Just 0.6 per cent of Langley Township residents surveyed said they're daily customers at the Cascades, but they spend more — $63 per visit on average.

Of the combined Vancouver-Surrey-Langley residents surveyed, 20 per cent said they don't gamble. Sixty-five per cent are rated as non-problem gamblers – the classifications were based on their survey responses – while a further 10.5 per cent are ranked "low risk," 3.7 per cent are ranked "moderate problem gamblers" and 0.7 per cent are ranked "severe problem gamblers."

The report found there was "no discernible impact" on crime or traffic near the casinos.

It also concludes the casinos haven't attracted measurable numbers of tourists from outside B.C.

"At present it appears the overwhelming majority of patronage is local," the report says.

It does note residents surveyed aren't travelling out of B.C. to destinations like Las Vegas to gamble as often, adding money now spent here is being "recaptured."

Officials with B.C.'s Gaming Policy and Enforcement Branch say they're satisfied the initial findings show no significant impact from the new gambling venues.

"Many of the measures of problem gambling remain statistically the same," said assistant deputy minister Derek Sturko.

"Obviously we've got to watch the longer trend," he said. "But in general there was no massive shift in circumstances."

South African judge rules against online gambling

As reported by the South Africa Citizen: "Online gambling is still outlawed in South Africa, even though the service is offered from outside the borders of the country, a Pretoria High Court judge has ruled. "Judge Willie Hartzenberg decreed yesterday that an application launched by Casino Enterprises Swaziland, which runs Piggs Peak Casino in Swaziland, disclosed no cause of action because it wanted the court to declare gambling actions in Gauteng legitimate, which were prohibited by local legislation. "…The casino maintained its online gambling took place legally in Swaziland and did not contravene the Gauteng Gambling Act…"

Gambling on the Hill II

As a black man born and raised on the Hill, I applaud poet-scholar Kimberly Ellis for her courage and love for our people and her opposition to Isle of Capri Casinos putting a casino on the Lower Hill. I remember as a child of 8 how I came home from school and saw a notice on the door that we had to move because of the construction of the Civic Arena. Now, 50 years later, the old wound is being opened again. Black people in Pittsburgh are being robbed of our heritage for gambling, slots and hockey. Pittsburgh has always been a cruel city for blacks, which is why many like myself were forced to leave the city we love. Through tricks and the help of Uncle Toms and Aunt Lucilles we are being robbed again. I support Kimberly Ellis in her noble fight and I tell Isle of Capri Casinos to back off with the threats against my sister. The only jobs blacks will get from the casino are dishwashers, janitors and prostitutes.

Poker player held without bail in New York online gambling case

A professional poker player accused of running a $3.3 billion illegal sports gambling operation was ordered held without bail Wednesday. The balding and bearded James Giordano stood silently with hands cuffed behind his back at his arraignment in Queens Criminal Court as his lawyer entered a not guilty plea on his behalf. Giordano, 52, was arrested Nov. 15 by FBI agents who scaled the walls of his fortess-like Florida compound. Authorities said they broke the case wide open last year when New York Police Department investigators secretly hacked into a laptop computer that Giordano had left in a Long Island hotel while attending a wedding. Giordano was indicted along with 26 others, including three family members, on charges of running an online gambling scheme that rivaled casino sports betting. Among them was Frank Falzarano, a former scout for the Washington Nationals and the San Francisco Giants, who was arrested at his Seaford, N.Y., home. Falzarano was accused of being a top earner in a network of 2,000 bookies who took cash wagers from tens of thousands of customers nationwide. He was arraigned earlier this month. He was released on $500,000 bail and told to return to court Jan. 3. The $1 billion-a-year scheme, hatched in 2004, involved placing sports bets through bookies, who would assign bettors secret codes to track their wagers and monitor point spreads and results through a restricted Web site. The bets were taken on all kinds of sports, including football, baseball, basketball, hockey, car racing and golf.

Authorities said defendants laundered and stashed away "untold millions of dollars" using shell corporations and bank accounts in Central America, the Caribbean, Switzerland, Hong Kong and elsewhere.

Giordano's daughter and son-in-law also were arraigned Wednesday. Both pleaded not guilty.

His wife, Priscilla Giordano, was released on $1 million bail Wednesday. Daniel Clarin, the son-in-law, was held without bail. The daughter, Melissa Clarin, a mother of two young children, was freed on $500,000 bail.

Roger Adler, the Clarins' lawyer, said outside the courtroom: "This is obviously a significant case. We are trying to get our hands around it."

Attorneys for the other defendants declined comment Wednesday.

Giordano and Clarin were scheduled to return to court Dec. 7 for another bail hearing.

All four were extradited from Florida, where they live, to New York on Tuesday.

The 27 people, from New York, New Jersey, Florida and Nevada, were charged with enterprise corruption, money laundering, promoting gambling and other counts following a 28-month probe led by Queens District Attorney Richard Brown.

Pull 'misleading' scratch tickets, gambling watchdog group urges

A national gambling watchdog group has raised new concerns about lottery scratch cards sold in Ontario, charging that current practices are unfair and misleading to the consumer.The Gambling Watch Network filed a letter with Ontario's ombudsman complaining that scratch tickets are sold even after the top prizes have been won. Brian Yealland, the group's spokesman, said retailers should stop selling tickets if the buyer has no chance of winning the jackpot.(CBC) "People go on purchasing those tickets although they have no chance of winning, and it seems to us that this is a breach of the understanding one has in buying a ticket," Yealland said. This practice has been the subject of scrutiny and lawsuits in the United States, causing some state lotteries to include disclaimers on the tickets explaining that some prizes may already be won. In Iowa, instant win tickets are pulled from stores once the grand prizes have been claimed, said Tina Potthoff, a spokeswoman for the Iowa State Lottery. "We want to make sure our players have a chance to win the top prize every time they purchase a ticket," Potthoff said. "If by chance a top prize is missing and they only have a second- or third-tier prize, we feel that's false advertising." A spokesman for the Ontario Lottery and Gaming Corporation said players can call a toll-free number printed on the back of each scratch and win ticket to find out which prizes are still available to be won.

Know the signs of problem gambling

When a person continues to gamble, despite the fact it is causing financial, marital, family, legal, employment, social, or school difficulties, it is a problem.Last week's article depicted an example of how a woman's gambling behaviour destroyed many aspects of her life, as well as those of others. That was a true story. She would not have stopped if she had not been forced to. No one in this woman's life knew that she gambled. Gambling is described, simply, as playing a game of chance for stakes. It occurs in many forms, such as lotteries, break-open tickets, casinos, sports betting, horse track betting, Bingo, table games, and the stock market. Pathological gambling is a progressive disease that is devastating to the gambler, as well as everyone who he or she has a significant relationship with.The American Psychiatric Association identifies pathological gambling as a "disorder of impulse control." It is an illness that is chronic and progressive. But it also can be diagnosed and treated. According to Robert L. Custer, M.D., there are three phases identified in the progression of gambling addiction:

    •The winning phase

    This occurs when gamblers experience a big win, or a series of wins, that causes them to feel (unreasonable) optimism that their winning will continue.

    •The losing phase

    During this phase, gamblers will brag about their wins, start gambling alone, think more about gambling, and borrow money legally or illegally. They may start lying to family and friends and become more irritable, restless, and withdrawn.

    Home life becomes unhappy and they are unable to pay off debts. Gamblers begin to "chase" their losses, believing they must return as soon as possible to win back their losses.

    •The desperation phase

    During this phase there is a marked increase in the time spent gambling. This is accompanied by remorse, blaming others, and alienating family and friends.

    Eventually, the gamblers may engage in illegal acts to finance their gambling.