Archive for February, 2010

New Effort to Regulate Online Gambling

Wednesday, February 24th, 2010

Well, if you’ve been reading Gambling Review for a while then you have likely read countless articles on the Unlawful Internet Gambling Enforcement Act (UIGEA) and Barney Frank’s attempt to repeal it with his proposed bill, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. Now there is a new attempt to legalize and regulate online gambling and it comes in the form of a bill that sets out to simplify the U.S. tax code.

Any American readers don’t need to be reminded of the ridiculous nature of the tax code, which is thicker than a phone book and more confusing than a T.S. Eliot poem. The code, of course, is deliberately that difficult for people to comprehend, because being that complex guarantees that mistakes will be made and if they are, those in power can use those mistakes as a weapon against those who oppose them. Ever wonder why people who accused President Clinton of misconduct found themselves getting audited by the IRS? Nixon did the same. By making the tax code complex, those in power can use it to punish their enemies and help their friends by giving them a break. That’s why tax cheats like Timothy Geithner are in President Obama’s cabinet rather than in jail.

Given how absurd the tax code is, rewriting it is a good idea. Ron Wyden, a Democratic Senator from Oregon, and Judd Gregg, a Republican Senator from New Hampshire, have proposed to do exactly that, by introducing the Tax Fairness and Simplification Act of 2010.

I haven’t read or even seen the bill yet, so I can’t tell you what’s in it. I can only tell you what those two Senators say the bill will do. According to them, it will eliminate many “specialized tax breaks” and “create policies that benefit everyone.” That wording scares me, but let’s continue. They also say the bill will include “fiscally-responsible middle-class tax cuts, business tax breaks to help American companies compete globally and create jobs, and a fairer and simpler tax system for all Americans.”

Okay, all of that sounds good except that I cringe when I hear a politician talk about taxes being fair. They normally do so when calling for a progressive tax system that unfairly places an extra burden on the upper class citizens who are the ones starting companies and creating jobs. Also, America already has a progressive tax system, with most of the tax burden being shouldered by the wealthy.

The one aspect of the bill that is of the most concern to online gamblers, though, is the fact that it calls for the regulation of online gambling, with all operators paying a 2% licensing fee to the government on all deposits. Many of the provisions in the gambling section of the bill are like those in Frank’s bill. The bill calls for “strict federal licensing and regulatory framework” to ensure that the games are safe and fair. A Joint Committee on Taxation analysis determined that the regulation of online gambling called for in the bill would generate almost $42 billion over the next 10 years.

Now that the bill has been proposed, its next step is to be debated in a Senate committee. Even though it would clearly legalize and regulate online gambling, I’m not sure if this bill is a good idea. It calls for some tax cuts but lets some of Bush’s tax cuts expire. It also changes the tax brackets and does other things that could be detrimental to the economy. It’s simply too early to tell, without having read the bill, whether it’s a good thing or bad. Rest assured, Gambling Review will follow this bill closely.

Ron Paul for President? Good For Gamblers

Monday, February 22nd, 2010

Well, President Obama in a speech five days before the election said that they were “five days away from fundamentally transforming the United States of America.” Well, he’s right, but not in the way that he intended. I believe that Obama wants to fundamentally transform America by doing away with the private sector, capitalism and basically democracy. He wants to shift a rather centrist nation far to the left. However, what he has done is transformed the nation by shifting it to the right.

As the government has tried to grab as much power as possible and grow as large as possible, there has been rebellion among the American people. Equally as important, though, is how it has affected the Republican Party. The Republican Party as it existed in 2008 was more liberal than the Democratic Party in the days of President John F. Kennedy. As a result of the current administration’s policies, though, Republican voters have learned that now we need conservativism more than ever and that big government, high taxes, and high spending policies can’t be accepted, whether it’s coming from a Democrat or a Progressive Republican, such as George W. Bush, John McCain and Charlie Crist. As a result, McCain and Crist are likely to lose in the primaries for their senate seats.

But what about president? At last weekend’s Conservative Political Action Conference, Ron Paul won the straw poll for presidential preference. Paul, who is a Republican with very Libertarian ideology, won 31% of the vote, with Mitt Romney (a centrist) coming in second with 22%. Romney had won the straw poll in each of the last 3 years. Sarah Palin received 7%.

No one knows if Paul will run for the Republican nomination. He did in 2008 and didn’t get nearly as many votes in the primary as Romney or McCain. Times have changed, though, and his anti-spending message resonates now more than ever.

So what does this mean for online gambling? If Paul was elected president, it would be a good thing for the online gambling community in America as well as anyone who wants an expansion of brick and mortar casinos. Paul is co-sponsor of Barney Frank’s bill in the House that would overturn the Unlawful Internet Gambling Enforcement Act (UIGEA).

Like the issues of spending and regulation, there has been a public shift in sentiment regarding gambling as well. States like Alabama that have traditionally been against gambling, either online or in casinos, are starting to come around, according to recent polls. As the economy continues to struggle and many states are facing budget deficits, adding revenue from gambling makes sense now more than ever. It would also lead to an increase of jobs, something that is badly needed, since 9.7% of the country is still unemployed according to the White House (and a much larger number according to many economists).

Before anyone gets too excited, I should point out that Ron Paul has always been considered unelectable in a national election. Though times have changed, maybe they haven’t changed enough for a man like Paul to sit in the Oval Office. However, his surge in popularity shows a shift in attitude in America, which is just as important. With Americans demanding less regulation, more freedom for private business, and a balancing of the state and federal checkbooks, online gambling legislation could be a safer bet now than ever.

EU Commissioner to Deal With Online Gambling

Thursday, February 18th, 2010

Who would have guessed that getting a bunch of independent countries to agree on having the exact same laws would be difficult? Oh, I guess anyone with intelligence would. For whatever reason, that either didn’t occur to those who pushed for the establishment of a European Union back in 1993 or they just didn’t care.

In any case, if you’ve been following online gambling news you probably have noticed that there have been a lot of disputes between the European Union (EU) and its member countries about gambling. One of the things the EU is supposed to provide for its member countries is free trade. However, several countries either have a ban on foreign online casinos or give incentives for their citizens to use the casinos in their own country instead. The EU doesn’t like that.

You don’t want to make the EU mad, because when they get mad, they react about as harshly as the United Nations: They tell you that you’re being bad and ask you to stop. If you continue being bad, they’ll say that they’re getting really mad and really want you to stop. If you keep doing it, you can expect an angry letter.

The EU now has a new Internal Markets Commissioner, Michel Barnier, who resolves to end this problem once and for all. How? By drafting a paper that clearly outlines the EU’s position on online gambling, of course. He will then send the paper to each member country to remind them that these are the rules that they must follow. Not only that, but it will call out the countries that are violating the EU laws by pointing out what they’re doing wrong. Ooh, that’s gotta hurt.

So who’s ignoring the EU? A few countries right now. France, Germany and Greece have laws that give an advantage to state-run monopolies over foreign online casinos. Spain is a little more covert with their subversion. Though there is no law that gives an advantage to Spanish casinos, their tax code does. The Spanish government offers a tax break on winnings from gambling at Spanish-run casinos. If you win money from a foreign casino, however, you have to shoulder the full tax burden. For that reason, there is significant incentive for Spanish citizens to gamble using the state-run monopolies. Finland is a little more daring. They placed an outright ban on foreign online casinos, making it only legal to gamble using one of the two Finnish gambling companies.

You may be wondering where the new Internal Markets Commissioner is from. Well, Mr. Barnier happens to be from France, which is one of the countries defying the EU rules on online gambling. Maybe this will get interesting after all. France may get a very special letter from Barnier, which would basically say “I’m really disappointed in you. Oh, yeah, and you’re making me look bad.”

Friends With Benefits Offered by JackpotCity

Tuesday, February 16th, 2010

If you like your online casinos with as much sexual innuendo as possible, then you’ll love the folks at JackpotCity.com. JackpotCity Casino has launched a new Facebook program called Friends with Benefits. Facebook members who become friends with the casino have exclusive access to certain tournaments, promotions, bonuses and other goodies.

A representative of JackpotCity Casino loves the innuendo-laced promotion so much he couldn’t hold himself back when discussing it. All bolded words are emphasis added by me. The representative stated that the casino “saw a gap, a real opportunity to prove that players come first at JackpotCity.” When asked if he thinks the Friends With Benefits promotion will increase business, he stated that he hopes “it drives market penetration.”

Folks, I have to be honest. When I first heard the name of this promotion I was all set to include lots of puns and innuendo in this article. However, I don’t really need to now. My job is done for me by this guy speaking on behalf of the casino.

The representative went on to say that you “don’t have to make a deposit to have fun at JackpotCity Casino.” I believe (though it can’t be confirmed) that he then giggled and added, “It really is more entertainment bang for your buck. In fact, we thought about calling the tournaments ‘Bang for Bucks,’ but thought it might be misconstrued.”

Yes, unfortunately for the folks at JackpotCity, any sites that promise bang for bucks tend to get raided by the police. Just ask all of those people who posted the ads on Craigslist.

All kidding aside, JackpotCity’s Friends With Benefits promotion is a good deal, because you don’t need to do anything to take advantage other than become a friend on Facebook. As a reward, you’ll be updated on all promotions and deals and will get exclusives that other members of the casino do not.

JackpotCity may be new to Facebook marketing, but they are not new to social media. The casino has a strong Twitter following (for the uninitiated, that is not more innuendo, though it does sound like it) and it is likely that they will soon offer Friends With Benefits on Twitter as well.

If you want to enjoy the benefits of this friendship, find JackpotCity Casino on Facebook and become a friend. Then visit the online casino and take your reward.

China to Crack Down on Online Gambling

Tuesday, February 9th, 2010

Online gamblers and casino operators, watch out. China is coming after you. On the official website of the Ministry of Public Security, the government stated that they will “concentrate on investigating major and important cases of online gambling, knock out domestic and foreign groups that organize online gambling, and severely punish the criminal elements.”

If you’re involved in gambling in any way that relates to China and that statement doesn’t scare you, then you must not know much about the country. The Chinese government has a way of crushing all opposition and when they say phrases like “severely punish,” they mean it. This is the country that responds to protests by running over the protestors with tanks. It’s the country that controlled a population that wasn’t particularly keen on Communism by starving millions of people to death. Mao may be long gone and China may be seen as much kinder and gentler than in Mao’s day, but that’s only because anything would seem kinder and gentler in comparison.

Traditional gambling was banned in China after the Communist takeover in 1949 because the government didn’t want people to have control over their own money. If you could make and spend your own money, you are less reliant on the government. China, of course, continues to allow a state-run lottery, as is often the case in countries that ban gambling. In the absence of a legal way to gamble within Chinese borders, internet gambling has become more popular. In light of that development, China intends to go after those who gamble online as well as the financial institutions used and the online casinos who operate the games.

A fight for control of the internet is nothing new. When Google brought their popular search engine to the country, it was with the stipulation that the government controlled what information could be accessed. It has long been the policy of China, and all Communist governments for that matter, to control the flow of information, because that is the easiest way to crush an uprising.

When last year’s protests of a disputed election in Iran were publicized thanks to social networking sites like Twitter, China took note. China currently blocks the use of Twitter, Flickr, Youtube and Facebook. After Google accused the Chinese government of hacking into their Gmail service to retrieve information on human rights activists, it is likely that Google has seen the end of its days in China as well.

If you live in China, I doubt you have the ability to read this page. If you are in any way involved with online gambling in China, though, heed their warning. When China says someone will be punished, they mean business.

Alabama to Address Gambling Laws?

Monday, February 8th, 2010

Gambling law in Alabama may soon change. The state has traditionally been against gambling, but recent events have some people, the residents as well as politicians, reconsidering their position. Electronic bingo machines, which are currently illegal, have sprung up across the state, but so far nothing has been done about it. Governor Robert Riley was frustrated with the fact that the city police and attorney general seemed to look the other way. In response, he formed a Task Force on Illegal Gambling last year.

One of the first actions of the task force was to raid three establishments believed to be housing illegal gambling, which include Country Crossing, VictoryLand and the White Hall Entertainment Center. However, since they did not have a warrant, a judge ordered that the raid be halted. VictoryLand then filed a restraining order. Since then, a warrant has been issued to search the establishments and in response, the businesses have closed indefinitely to avoid being raided.

And that’s where things get tricky. If the businesses are indeed running illegal gambling operations, Riley is well within his rights by going after them, though many in the gambling community see him as an evil anti-gambling activist. The attempted raids and subsequent closings, however, have stirred up controversy in the state and now it seems that the people don’t even agree with the gambling ban anymore.

Once a strong anti-gambling voice, the people of Alabama have seen their state, like the rest of the country, mired in a bad recession. Jobs are scarce and with those businesses shut down, the economy is hurting even more and countless workers are wondering if they still have jobs. As a result, a recent poll by the Christian Coalition shows that 2/3 of the people of Alabama are opposed to Riley’s gambling raids and a poll by the Public Affairs Research Council of Alabama found that 72% of the people are in favor of regulated gambling in the state and only 25% want gambling outlawed.

In response, Riley’s popularity in the state is falling and state Representative Marcel Black introduced a bill that would allow the voters to decide whether or not to legalize gambling. At this time, shutting down illegal gambling is perfectly constitutional, but doing so could hurt Riley. With thousands of jobs at stake, no one wants to be the guy who made the unemployment situation in Alabama even worse. For that reason, it may be best to let the people vote and see what they decide. In the meantime, do nothing. It may turn Riley’s stomach to turn a blind eye to illegal activity, no matter how harmless, but it may be what’s best for the state, his reputation and that of his party.

Obama Against Vegas, Spending and Economy

Thursday, February 4th, 2010

“I understand that America is a mess right now. Unemployment and the economy are in a dismal state. It is my number one priority to solve these problems and fix the economy. But people, don’t spend money! Save it! Stuff it under your mattress! Keep it away from the greedy banks and don’t spend it on frivolous things! Hoard your money because you’re going to need it!”

Obviously, saying something like that would be terrible for the economy and is the exact opposite of what the country needs. It’s also a loose paraphrase of the words of President Barack Obama. Throughout his year in the White House and even before, Obama has made it clear that he’s not a fan of capitalism, taking every opportunity to portray businesses as greedy, people as being in need of handouts, and the government being responsible for taking care of the people. That would be fine, except that he is the president of a country that has a Representative Republic system of government and a capitalist form of economy. His attitudes are not only counterproductive, but also downright dangerous for both.

The most recent of many examples of this is Obama’s criticism of Las Vegas and people who visit the city. Obama recently said that people saving money for college shouldn’t waste their money on gambling in Vegas. Last February, he made a similar remark about companies that received TARP funds, saying that it was irresponsible for them to take trips to the Sin City.

It’s no surprise that an anti-capitalist wouldn’t realize that trips to conferences and junkets in places like Las Vegas are an important part of the process of obtaining and retaining clients. But at least in that case he was criticizing the spending of money by companies that had received money from taxpayers. In his recent comments, he criticized private citizens for spending their own money.

Lawmakers and businessmen in Vegas are understandably furious and many have vowed to support whoever runs against Obama in 2012. They recognize that his comments and policies are bad for Las Vegas, the state of Nevada, and the country as a whole.

While the entire country has a dismal unemployment rate of 10% — you know, the catastrophic number that Obama said we would reach if he didn’t get to pass his “stimulus” bill – Nevada is even worse, at 13%. You should also note that both are conservative estimates that don’t count people with part-time jobs, those who have given up looking for work, and those who work on a temporary project. And with unemployment that bad and Nevada’s tourism industry struggling, the President of the United States, the most powerful man in the country (with the exception of George Soros and Al Gore), is telling people not to visit Las Vegas and not to spend money in their casinos, which just so happens to be the biggest industry they have in the state. Real responsible, Mr. President.

People of the United States and the rest of the world, spend your money as you see fit. You should of course be responsible, but if you have the disposable income to take a vacation, I can think of no place better than Vegas. Of course, as I’ve said countless times, you should never wager money that you can’t afford to lose, but if you can afford to lose it, Las Vegas would be happy to have it.

Titan Poker Sending Players to Ireland

Monday, February 1st, 2010

Online poker is fun and all. The only problem is that you miss out on the camaraderie of playing at a table full of people. You also miss out on the ability to bluff, read someone’s poker face, and talk trash. Also, quite obviously, you miss out on the opportunity to travel.

Well, for some lucky players, Titan Poker is going to help you experience all of that. The online poker room is holding a tournament that will send lucky winners to a live poker tournament in Dublin, Ireland. Which tournament? It’s called the Irish Open. Maybe you’ve heard of it.

The Titan Poker Irish Open takes place in March and until then Titan Poker is holding satellite tournaments 24-hours per day. As you advance through the satellite tournaments, you get closer to the grand prize, which is not only getting a trip to Dublin on the casino, but you also get a free EUR 300 buy-in, EUR 3200 gambling money, free accommodations for five nights in the swanky Burlington Hotel and some other goodies as well, including EUR 800 of spending money.

If that sounds good to you, there’s never been a better time to grab a Guinness, put on a Damien Rice album (or U2 if you would rather), and get your poker on! You’re probably thinking, Well, sure, they pay for everything if you win, but the tournament is probably expensive to join. If that’s what you were thinking, then you thought wrong. If you are new to the site, simply enter the Titan Poker Bonus Code TP600 during your registration. Doing so will give you a $600 signup bonus as well as a free $25 to play with in the poker satellite.

So basically, what it comes down to is this: If you like poker, there is no extra risk to this tournament beyond playing poker using real money any other time. And if you win, you have a shot at an all-expenses paid trip to Dublin to take part in the Irish Open. And if you win and don’t want to go, let me know. I will gladly go on your behalf!

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