Casino News Blog
October 16th, 2014 by
On Monday, the Singapore Parliament introduced a new bill to ban online gambling. The legislation would impact both domestic and foreign gaming operators serving Singapore citizens.
The bill was written by The Ministry of Home Affairs. The ministry carefully reviewed laws from other jurisdictions with strict online gambling laws, including Norway, France and Hong Kong. They also received feedback from Singapore citizens before drafting the bill. The authors are confident the new law would provide necessary protections for Singapore citizens.
The new bill contains a number of provisions to enforce the ban. The government would have the authority to prosecute banks that collaborate with online gambling providers, whether they are based in Singapore or overseas. Banks will be instructed to block transactions between online gambling providers to avoid the ban. Authorities will also require Internet Service Providers to block access to online gambling sites.
The law would also apply to any media promoting online gambling. Google, Facebook and other websites would be required to implement controls to prohibit any advertisements for online gambling.
The law does allow some local businesses to apply for exemptions. However, they would need to meet strict eligibility requirements. Only nonprofits or charities with good track records would be allowed to apply for these exemptions.
Parliament will debate the bill in its next session. Lawmakers have expressed concerns about online gambling and are expected to approve the bill.
Gerald Singham, a member of the National Council on Problem Gambling, has also shown support for the proposed law. Singham said that about a third of citizens that gamble online spend more money and play longer than anticipated. The National Council on Problem Gambling has had reservations about online gambling for several years and is pleased the bill has been introduced.
October 12th, 2014 by
Last month, the Michigan Gaming Control Board (MGCB) announced that it has issued over 160 licenses for charity poker events. The new licenses were issued after Governor Snyder invoked emergency rules to reduce the risks he believes poker tournaments imposed. The MGCB was originally pleased with the way the new charity run poker tournament system was being rolled out, but faced a legal challenge shortly thereafter.
Numerous Michigan charities have filed a class action lawsuit to ease the restrictions. The plaintiffs claim the rules place several restrictions on charities offering poker tournaments. Operators must comply with limitations on the expenses they can write off. They also are prohibited from offering over 30 poker tournaments in any given calendar year.
The charity rooms originally reached a compromise with the MGCB earlier this year. They would have faced the possibility of a new law by State Rep. Jeff Farrington if a deal wasn’t struck. The MGCB acknowledged that the compromised resolution wasn’t what the charities were looking for. However, MGCB Executive Director Rick Kalm said he was committed to reaching an equitable solution to help the charities.
The lawsuit alleges that the new policies violate the agreement that the Michigan Court of Claims upheld in January. The plaintiffs claim the emergency rules have overturned the regulations the MGCB planned to introduce.
The charities claim that the new rules restrict the amount of revenue they can generate. Numerous charities depend on poker tournaments to fund many of their initiatives. However, the MGCB claims that the new rules are necessary to protect citizens from problem gambling and financial hardship.
The MGCB stated that the Lions Club was one of the organizations that it targeted the most. It said that the tournaments it offered created a threat to public safety.
October 7th, 2014 by
Several months ago, the Coeur d’Alene tribe in Idaho launched a poker room. The state filed a lawsuit against the tribe, claiming that it violated state and federal gambling laws. A federal judge ruled in favor of the state earlier this week and issued a cease and desist order to the tribe.
Governor Butch Otter praised the decision and stated that it was in line with the will of the people. The online gambling law was passed in 2002 after being placed on the ballot. The majority of Idaho citizens voted to limit gambling to games of skill.
The tribe argued that poker is a game of skill, but Judge Lynn Winmill didn’t entirely agree. Winnmill acknowledged that there are some elements of skill in poker, but stated that chance plays a key role as well. Winnmill ruled that poker violated the state gambling law.
The decision conflicts with a ruling made by Federal Judge Jack Weinstein in New York. Weinstein set aside the conviction of a New York businessman operating a poker room on the grounds that poker was a game of skill. The conviction was later upheld by the appellate court, but the higher court didn’t overturn Weinstein’s argument that poker was a game of skill.
The new precedent could be a setback for the Poker Players Alliance and other activist groups. The tribe may still appeal an appeal against the state. However, the probability that they will win an appeal appears to be low. The state gambling law clearly stated that poker is classified as a Class III game, which is prohibited in any casino in Idaho. The federal Indian Gaming Regulatory Act (IGRA) allows states to prohibit tribes from offering any form of gambling that isn’t otherwise legal.
October 1st, 2014 by
The Swiss government is considering regulating online gambling. Lawmakers said online gambling isn’t meaningfully different from traditional casino games, so feels there isn’t any reason to prohibit it. They discussed regulatory options at the recent Conference of the Cantonal Directors in Charge of Gambling and Lotteries (CDCM).
The government began discussing liberalizing the online gambling industry in May. The bill contained a consultation date of August 20. The CDCM held a preliminary assembly on online gambling in June before having a more detailed discussion this week. Lawmakers will likely need additional time to iron out some of the details of the proposed legislation.
It didn’t contain many details, such as the possibility of allowing foreign gaming providers to participate in the market. Lawmakers and regulators wanted to discuss those specifics at the CDCM before moving forward.
The CDCM attendees discussed the best way to regulate the new industry. They believe online gambling licenses should be restricted to existing casinos. The CDCM stated that allowing providers that specialize in online gambling would lead to a number of social problems. They fear that allowing foreign online gaming providers to participate in the market would jeopardize the Swiss gaming industry. It warned that foreign gaming providers have developed sophisticated platforms and have much more experience with online gambling.
Lawmakers will continue discussing details of the bill before moving to a vote. The bill currently stipulates that online gambling winnings will be tax exempt, but that provision may be revised. The government may want to discourage players from betting on unregulated sites, but may decide to include some tax to avoid running a deficit this year.
September 27th, 2014 by
Betcoin is a popular poker site that only accepts bitcoin payments. The site recently reduced its rake to draw more players.
Betcoin currently offers one of the lowest rakes in the industry. Betcoin players will pay a 2.5% rake at standard tables, which is half the industry average of dot-com poker sites. Players using Heads Up tables are only charged rakes of 1.3%. Betcoin’s rakes are about the same as those offered by SealsWithClubs, the most popular bitcoin only poker site.
Bitcoin poker networks will probably become more popular in the coming year. Players have become disenfranchised with many other online poker sites over the last few years. Recent data from PokerScout shows the global online poker market declined 13% between June 2013 and June 2014. However, demand for bitcoin poker sites has grown substantially. Data from two of the largest bitcoin poker sites showed demand grew nearly 80% in 2013.
Players in France and many other jurisdictions have grown annoyed with the high tax structure these networks cause. They will probably be more likely to turn to Betcoin, SealsWithClubs and other bitcoin sites that offer low rakes. Countries with state controlled online gaming markets are able to offer much lower rakes. However, those networks have problems of their own. They are less likely to develop new products, so players tend to be less satisfied with their platforms and turn to black market gaming sites.
Betcoin has been growing rapidly since the beginning of the year. It launched a bitcoin animated slot machine in January, which allows players to win up to 1,000 times their original wager. The site has also formed a partnership with the Winning Poker Network.
September 25th, 2014 by
Rep. Jason Chaffetz is the author of a federal bill that would ban online gambling. Chaffetz has been struggling to gain support from his constituents and colleagues in the House of Representatives. He recently issued a new statement that the online gambling industry is exploiting minors. He claims that new regulations are necessary to protect minors. He said that traditional casinos can keep minors from gambling, but online gaming sites can’t verify the identities of their players.
“I am afraid that if we don’t move quickly and get some decent regulations in place, which we really don’t have right now, it will be too late to stop it from reaching all the states,” Chaffetz told Newsweek reporters.
Online gambling activists have countered many of Chaffetz’s arguments. They said that New Jersey, Nevada and Delaware have strong regulations to prevent underage citizens from gambling online. They said that the geolocation and player identification technology has been very effective.
People on both sides have raised the state’s rights argument. Online gambling activists feel that individual states should be allowed to offer online gambling to their citizens. Opponents of online gambling feel that banning online gambling is necessary to protect state’s rights. They feel it is impossible to keep people from accessing online gambling if it is available in neighboring states.
Chaffetz is adamant that Utah, his home state, is opposed to all forms of online gambling legislation. Utah has banned all forms of online gambling and doesn’t want to make it easier for his citizens to access it. He doesn’t believe technology is very effective and states that banning online gambling is the only sensible solution.
September 22nd, 2014 by
California State Senator Lou Correa decided to pull his ca online poker bill earlier this week. Most experts were optimistic that a bill introduced by Assemblyman Reggie Jones-Sawyer would still be passed. They were discouraged to hear that Jones-Sawyer pulled his bill the following day.
Lawmakers have been trying to pass an online poker bill for several years. Opposition from the state’s tribes and other gaming interests kept them from making headway in previous years. The majority of the state’s tribes and card rooms finally reached a consensus on an online poker bill this year, which led many pundits to believe that a bill would be passed this year.
The announcement has dampened morale slightly in the online poker community, but most experts are confident a bill will be passed in the foreseeable future. A spokesperson for Jones-Sawyer told Online Poker News the movement to regulate intrastate poker has gained considerable momentum. Jones-Sawyer indicated an intention to reintroduce his bill next year. Correa has exhausted his term limit, so another senator will need to introduce a companion bill if Jones-Sawyer’s fails to be passed.
The online poker movement has been turbulent over the past few months. Casino magnate Sheldon Adelson has spent millions lobbying to ban online poker. Senator Roderick Wright, a long-term poker advocate, was convicted on federal charges of voter fraud.
Jones-Sawyer acknowledged these challenges, but stated they haven’t had anything to do with the failure to pass a bill to regulate online poker. He said that the legislature simply ran out of time. The state’s largest gaming interests didn’t reach a compromise until early June, which didn’t give lawmakers much time to discuss their proposed legislation. They will have more time to discuss the matter in 2015, so an online poker bill may finally be passed.
September 15th, 2014 by
888 Holdings is preparing to launch a new portal that will connect online gaming providers in Nevada and Delaware. The Nevada Gaming Control Board recommended that the new network receive a license to operate. The Nevada Gaming Commission gave final approval on the new network.
The new network will help grow Nevada’s online poker market. The portal will also create the foundation for a larger interstate gaming industry.
Nevada and Delaware are currently the only states that have signed an interstate gaming compact. However, other states could enter the agreement as online gaming becomes more popular. This would be a huge opportunity for Ultimate Gaming, Caesars Interactive and other companies that operate online gaming sites in Nevada.
The population of both states is lower than the median population of other states throughout the country. Their small populations have made it difficult for them to grow their intrastate gaming markets.
The new network could provide a much needed boost for the Nevada and Delaware gaming sites. Yehoshua Gurtler, an attorney for 888, said that the network will appeal to a wider base of players. He said that the larger player bases will help Nevada increase tax revenues.
888 claims that the new network will provide additional benefits as well. They said that gaming providers will be able to reduce spending on marketing, because more customers will be able to find their sites through the networks. The new network could also make it easier for gaming providers to run cross-promotions.
The interstate poker network should be available in the near future. Online gaming providers from both Nevada and Delaware are already submitting their sites to it.
September 12th, 2014 by
Nevada regulators released the most recent revenue figures for the state’s casinos. The figures show that both online poker and land-based casino revenues have remained strong. Online poker revenues have been lower than analysts initially predicted last year. However, the new report indicates that the market will probably continue to thrive in the months to come.
The recent report shows that the state’s three online poker providers have collectively generated $1.037 million in revenue. Caesars Interactive said that traffic to WSOP.com is growing steadily and profitability is expected to increase in the near future.
Traffic to WSOP increased by 40% last month. A large part of the traffic increase was due to people participating in the World Series of Poker online tournament. Some of those players came from other states and over 100 other countries. However, Caesars is confident that many Nevada residents will be repeat players.
Seth Palansky, the VP of Corporate Communications for Caesars Interactive, said that WSOP is expected to lead the market in the future. He said that the website has outpaced all of its competitors in both Nevada and New Jersey.
Adam Krejcik, a gaming analyst with Eilers Research, said that Caesars has probably learned a lot from the World Series of Poker. He expects that the company will offer a myriad of new offerings in the future.
Palansky and other gaming executives are encouraged by the new figures. They believe that the industry will grow more quickly after the Mult-State Internet Gaming Agreement goes into effect. Revenue growth could accelerate even further if New Jersey enters the compact. However, New Jersey Governor Chris Christie hasn’t indicated that the state will sign the agreement so far.
September 10th, 2014 by
French gaming regulator ARJEL recently released a report showing that online poker revenues have continued to plunge. The second quarter report states that online poker bets fell nearly 20% over the same quarter in 2013. Revenues would have been even lower if tournament wagers hadn’t increased 6%.
The new report shows that the decline in the French online poker market is accelerating. Revenues in the last week of June were the lowest since online poker was legalized in 2010. Many gaming providers fear that the trend will continue through the rest of the year.
Industry experts have consistently blamed ARJEL’s strict regulations for the decline. Gaming providers must pay an effective tax rate of 37% on online gaming revenues, which has kept the industry from growing much. ARJEL will discuss possible changes in its next meeting with Parliament, but they are unlikely to modify the regulations. The gaming regulator has stated that players are losing interest in online poker, so it is unexpected to make changes a priority.
ARJEL also found that players are becoming more interested in participating in tournaments over other competitions. The introduction of Expresso poker may have played a role in the transition, but tournament participation has been increasing even before that. The popularity of online poker tournaments has drastically changed the structure of the online gaming market. Online gaming providers may need to reformulate their strategies in the months to come.
The French gaming market is clearly undergoing a number of changes. 888 and several other gaming operators have left the French gaming market. Other companies may choose to abandon the market in the near future as well.
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