Posts Tagged ‘Harrah’s casino’

Harrah’s promoting online casino in U.S.

Monday, August 9th, 2010

Several months ago, Harrah’s Entertainment became the first American land-based casino to launch an online gambling website. Harrah’s online casinos are based overseas and do not currently accept players from the United States. However, they are now for the first time advertising to U.S. players.

Harrah’s, sponsor of the World Series of Poker, has begun advertising for their online casinos on their WSOP website. Players cannot gamble for real money on the WSOP.com website. Instead, the online poker website can be used as a tutorial to learn the game. Visitors play poker using chips of fake money. The World Series of Poker website has links to Facebook apps, iPhone apps and online casinos. In those online casinos, unlike the other options, players can gamble using real money.

Right now, American customers cannot play for real money at the online casino, but Harrah’s is hoping it will be an option in the near future. The casino company may be thinking that UIGEA will be repealed soon, since the Barney Frank/Ron Paul online gambling bill (Internet Gambling Regulation, Consumer Protection and Enforcement Act) has passed the House Financial Services Committee. However, as I have pointed out, there are numerous obstacles still in the way of that bill becoming a law. Many in the online gambling industry are growing pessimistic of its chances.

Though I doubt there is anything illegal in advertising for their real-money online casinos in the United States, you can expect Harrah’s to get some heat from the government. The Nevada Gaming Control Board is already looking into their online casino deal and determining whether it is proper. By advertising online casinos in the United States for the first time, the casino will bring itself under further scrutiny, possibly by the federal government this time.

Corzine Attacked on Casino Ties

Tuesday, September 22nd, 2009

Well, folks, New Jersey Governor Jon Corzine is under fire yet again. The man governing what may be the most corrupt state in the Union (though some may say it’s Illinois) is now being attacked by his Republican gubernatorial opponent over ties to an Atlantic City casino.

It was recently revealed that Corzine holds shares in a private hedge fund for Texas Pacific Group, a company that bought Harrah’s Entertainment (and thus, Harrah’s Casino) in 2006. State law prohibits elected officials from having financial ties with casinos. Corzine’s opponent, Christopher Christie, says that it is “shocking and reveals a colossal error in judgement that appears to be in violation of the law under the Casino Control Act.” Another Republican, Senator Joe Kyrllos, said the investment was “at best a conflict of interest and at worst a violation of the law.”

Corzine, as you might imagine, sees things differently. His chief counsel, William Castner, released a memo that read “no objective or authoritative source armed with the background and details of the Governor’s interest in TPG-Axon hedge fund can conclude that there is a ‘question’ that Governor Corzine has touched upon any statutory, regulatory or ethical guidelines or restrictions governing casino interests or even has come ‘close to the line’ on those guidelines.” Sean Darcy, a campaign spokesman for Corzine, said that the governor “does not own casino stock. None of his investments are managed by anyone who has a casino license.”

Christie, as you might imagine, is unconvinced. “In the interest of transparency,” he said, “Governor Corzine must reveal exactly how much money he has invested in TPG, precisely how much money he has personally made from his casino investment, and then he should immediately divest the funds.”

Corzine’s financial disclosure statements stated that he had earned an interest income of at least $700,000 from the hedge fund since 2006. At this time it’s unclear whether Christie is playing politics or whether there is substance to the accusation. Given New Jersey’s recent corruption scandal, though, many are unwilling to give Corzine the benefit of the doubt.

888’s Deal With Harrah’s Huge

Friday, September 11th, 2009

Earlier in the week, 888 struck a deal with American casino Harrah’s in a move that could pay huge dividends for the online casino. 888.com’s business-to-business arm, Dragonfish, signed a deal with Harrah’s Interactive Entertainment, the online casino version of Harrah’s popular Las Vegas casino. Harrah’s online casino currently only serves customers outside the United States, due to the Unlawful Internet Gambling Enforcement Act of 2006, which is under threat to be repealed by bills in both the House and Senate.

In the deal, 888 will provide game software, e-payment services and customer support to Harrah’s. The deal, though, has much larger implications. If UIGEA is repealed, as many expect, then that will open a new market for online casinos in the United States. The bills that would repeal the law, however, also contain provisions that would limit gambling licenses to casinos that pay taxes to the American federal government, which would not include foreign operators. There is still a chance the provisions could be stricken from the bills, but many are worried that America will not allow overseas online casinos to do business in the American market. By signing this deal with the huge American casino, 888 increases the likelihood that they could be given a license to provide services to American customers.

There is still a lot of work to be done (such as repealing UIGEA), 888’s deal has kind of lit the charcoal that could stoke the flames of change in the U.S. With overseas online casinos signing deals with American casinos, the push to legalize and legitimize online gambling in America seems stronger than ever.

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