Industry News

US Online Poker Bill Introduced
Rep. Joe Barton’s (R-Texas) mission to implement online poker legislation is officially underway as the Congressman’s bill was introduced in the House Energy and Commerce Committee in July.
In the press release Barton announced that he is joined by original co-sponsors Rep. Shelley Berkley (D-NV), Rep. John Campbell (R-CA), Rep. Steve Cohen (D-TN), Rep. John Conyers (D-MI), Rep. Barney Frank (D-MA), Rep. Michael Grimm (R-NY), Rep. Mike Honda (D-CA), Rep. Peter King (R-NY), Rep. Ron Paul (R-TX), Rep. Ed Perlmutter (D-CO), Rep. Linda Sanchez (D-CA). Frank and Campbell were the sponsors of another federal online poker bill, but their version appears to be dead.
According to Barton, the driving force behind the bill is consumer protection. “It will create an interstate licensing program for internet poker sites, but at the same time allow states to opt out if they don’t want to participate.” Lawmakers on both sides of the aisle believe Americans should be able to decide for themselves about participating in online poker, which is widely accepted as a game of skill rather than happenstance.
“Poker is an all-American game, and it’s a game that requires strategy and skill. Millions of Americans play poker online. Although it’s legal to play for money, it’s illegal to process the transactions that allow players to collect their earnings,” said Rep. Barton. “We want to have an iron-clad system to make sure that those who play for money are playing in an honest, fair system where they can reap the benefits of their winnings. To put it simply, this bill is about having the personal freedom to play a skill-based game you enjoy without fear of breaking the law.”
Rep. Campbell of California stated, “The discussion surrounding the legalization of online gaming in this country needs to move forward. At this moment, we have otherwise law-abiding American citizens committing a crime simply by playing poker online. I don’t happen to gamble myself, but freedom is not about legislating what I like to do and making illegal what I don’t. Freedom is about allowing responsible Americans do what they happen to enjoy. Clearly, Americans want to gamble on the internet, and policymakers need to provide both the freedom to do so and ensure appropriate consumer protections are in place. Regulating online gaming and making certain that these sites are operating legally in America will also create economic growth through generated tax revenue and the possibility of attracting foreign players to U.S. sites.”
However Frank Fahrenkopf, President and CEO of the American Gaming Association, said that his organisation will not support Rep. Barton’s bill and instead will continue with plans to introduce its own version of a federal online poker bill this autumn.
The stark contrast between Barton’s bill and what the AGA is set on pursuing is in regards to whether states are automatically opted into offering online poker, unless expressly stated otherwise. Fahrenkopf and the AGA say that state officials have to confirm that online poker is OK for their respective state.
Shortly after the introduction of Barton’s bill in late June, the AGA released a statement stating its support for the licensing and regulation of online poker in the U.S., but not explicitly for the Texan’s idea for online poker regulation. The AGA said that although it “has not endorsed any specific legislation on this issue, we are pleased that Rep. Barton wants to protect American consumers and understands the need for regulating online poker in our country.”
Fahrenkopf told Card Player that his idea for an end to the murky legal waters is federal legislation that would align fundamentally with the constitution, allowing states to decide on the issue. “You have to make sure each state has the right to say yay or nay,” he said.
For Barton and Fahrenkopf, the two men who are currently offering the best chance at regulated online poker in the U.S., the difference of opinion appears to be rooted in how much discretion the states should have in this multi-billion dollar a year industry. ♠
Poker Rooms Benefit From Full Tilt Closure
Online poker rooms across Europe have seen a bounce in key player metrics since Full Tilt was ordered to shut down by the Alderney Gambling Control Commission.
Ladbrokes reported player acquisition up 100 percent (a week after the fact) while PokerStars mopped up over 60 percent of players who migrated from Full Tilt according to analyst Daniel Stewart & Co.
Only 41 percent of Full Tilt’s player base has migrated so far, leaving 59 percent yet to do so according to a note from the analysts.
Naomi Thrower of Ladbrokes said, “The Poker world has been turned on its head in recent weeks and players are no longer confident where to play.
“Furthermore, as one of Europe’s first online poker sites (established in 2002), Ladbrokes Poker has never taken bets from players in the USA, and will continue to only operate in territories legally. Ladbrokes Poker customers can therefore rest assured that their money is 100% safe and secure and always will be. ♠
Ongame Poker
Network For Sale
bwin.party digital entertainment has started the process of selling the Ongame poker network.
The company, formed by a merger of bwin and PartyGaming earlier this year, described Ongame as a “surplus asset”. bwin poker players are expected to be moved to Party Poker ahead of the sale.
The statement from bwin.party regarding the proposed sale said, “One area of our stated strategy was to recycle surplus assets. As part of this process and having taken some initial soundings from interested parties, we have commenced a formal process to sell Ongame’s Business-to-Business operation that is one of the world’s leading online poker networks with a state-of-the-art technology platform. We expect that any sale will be completed by the end of the year.
Ongame hopes to emulate Sweden’s Entraction network which was sold for €70 million to International Game Technology. ♠

Betfair Poker Revenue Down 15 Percent
Net poker revenue fell at BetfairPoker.com in 2011 (full year to end April 2011) by 15 percent to €21.9 million from €25.6 million in 2010.
This is despite the number of active players increasing 9.5 percent.
Poker makes up 6.7 percent of Betfair’s overall net revenue which was up 7.6 percent to €326.6 million in 2011 from €303.5 million in 2010.
Chief executive officer David Yu said of the trading situation in 2011, “We are pleased with trading for the first eight weeks of FY12 for non-risk Sports, Games and Poker which is in-line with our expectations. Revenue in the more volatile area of risk Sports, however, is currently below expectations due to an adverse margin performance during May.
“As anticipated, Core Betfair revenue in this period is lower than the prior year comparative period which was significantly inflated by the World Cup and was the last quarter prior to the migration of our Poker product.” ♠
U-Turn On Blue Square
Poker Sale
The board of Rank Group Plc, owner of Grosvenor Casinos and Blue Square Poker, has changed its mind about the proposed sale of the Group to Hong Kong-based Guoco.
Initially the board reluctantly urged shareholders to accept the offer of 150 pence per share, even though they believe it greatly undervalued the group.
However subsequently the board did a u-turn recommending that shareholders reject the offer providing they aren’t worried about Guoco canceling Rank’s stock listing.
Rank is concerned that Guoco will not give an unconditional commitment to continue its stock market listing. ♠
Ladbrokes
May Bid For Sportingbet
British bookmaker Ladbrokes has made a preliminary approach to London-based Sportingbet plc with a view to buying the company.
Shares in Sportingbet rose by up to 20 percent on the news as Ladbrokes seeks to expand its online presence which has been faltering in recent times.
Evolution Securities analyst James Hollins said of the move, “We think that a deal makes sound strategic sense for Ladbrokes as it would instantaneously establish a market-leading position in more than 10 global territories, including the key Australian, Spanish and Greek markets.
“Ladbrokes is highly U.K.-centric and does not have the brands to penetrate.” Ladbrokes has recently courted both 888.com and Playtech in an attempt to bolster its Internet and overseas business.
Sportingbet, which recently agreed to buy Australian bookmaker Centrebet, owns Paradise Poker. Ladbrokes recently reported its online poker revenue down by one-third.

Full Tilt Poker
Operations Suspended

Full Tilt Poker had its entire online operation suspended by the Alderney Gambling Control Commission in late June.
In a statement released by the regulator Full Tilt was instructed to stop customers playing and suspend all deposits to and withdrawals from the site.
European players trying to log in to the site were prevented from doing so.
The full statement from the regulator read:
“In the matters of:-VANTAGE LIMITED OXALIC LIMITED FILCO LIMITED And ORINIC LIMITED
Alderney Gambling Control Commission (AGCC) has today issued Hearing Notices under Regulation 46 of the Alderney eGambling Regulations, 2009 to the above named companies who collectively trade as FULL TILT POKER.
In addition, AGCC has issued Suspension Notices under Regulation 47 of the Alderney eGambling Regulations, 2009 to the above named companies requiring them to immediately suspend operations.
The above named companies must, until the Suspension Notices are cancelled or the Commissioners of AGCC have reached a determination at the conclusion of the hearing convened in accordance with Regulation 46 of the Alderney eGambling Regulations, 2009 cease to exercise their eGambling licenses, which means that these licensees must from today cease to:-
Register new customers;
Accept deposits from existing customers;
Allow existing customers to withdraw funds that are held in their accounts; and
Permit customers to participate in any form of poker game play or gambling
transaction.
The Alderney Gambling Control Commission will hear the matters contained in the Hearing Notices at a Regulatory Hearing which will commence at 10.00am on Tuesday 26th July, 2011 at the Victoria Park Plaza Hotel, 239 Vauxhall Bridge Road, London SW1V 1EQ. In the event that there is a change to these details this notice will be amended.
André Wilsenach (Executive Director) Alderney Gambling Control Commission Alderney, Channel Islands.” ♠
Full Tilt Poker May Be Sold
A couple of weeks after the Full Tilt shut down the L.A. Times reported that attorneys close with Full Tilt Poker said that the company has signed an agreement with a group of European investors who will put up enough money to cash out players. Full Tilt has, up until this point, failed to pay back an estimated $150 million in outstanding player funds since April’s Black Friday.
As part of the deal, the investors would obtain a majority stake in Pocket Kings, Full Tilt’s parent company. The money would also help Full Tilt settle its civil case with the United States Department of Justice. The agreement came just one day after the company had its entire online operation suspended by the Alderney Gambling Control Commission.
Phil Ivey, who was suing Full Tilt and has been absent at the 2011 World Series of Poker, will withdraw his lawsuit in Nevada, according to his attorney David Chesnoff. “Mr. Ivey intends to dismiss his lawsuit as he believes Full Tilt is taking steps to see that the players are paid,” Chesnoff told the L.A. Times. ♠

French Regulator Shuts Down Full Tilt
In early July French online gambling regulator ARJEL suspended Full Tilt’s French license and shut down its .fr site.
According to the ruling Full Tilt was given notice to prove it had sufficient funds to pay players in France but was unable to do so.
This latest ruling was another blow to Full Tilt, which saw its global operation shut down by the Alderney Gambling Control Commission.
Analyst Daniel Stewart & Co, said, “It is still unclear as how long the suspension would be implemented but clearly French citizens would no longer be able to play on Tilt’s dot.fr site following the suspension.
“In our view the latest developments (Alderney & France) will have done irreparable damage to the beleaguered poker operator, and we expect further migration to the likes of Stars, BPTY [bwin.party], 888 and PTEC [Playtech] to follow.” ♠
Full Tilt Woes Prompt
British Legal Reform
The British Government is to review how overseas online gambling operators, including poker sites, are regulated in light of the recent troubles experienced by Full Tilt Poker when Alderney Gambling Control Commission suspended the site’s license to operate, shutting the site down and suspending player funds.
The move is being spearheaded by Culture Secretary Jeremy Hunt.
A spokesman for the department of Culture, Media, and Sport told the Observer newspaper that, “This highlights why the government is looking at reforming how overseas-based operators are regulated and we hope to make an announcement in the next few weeks.” ♠

Viktor Blom Crushes SuperStar
Showdown
Swedish online wizard Viktor Blom took a 9-2 lead in the ongoing PokerStars.com SuperStar Showdown in early July with a convincing victory over Terje “Terken89” Augdal.
Blom scooped Augdal’s $150,000 bankroll in just 1,500 of the 2,500 hands allowed in the game which was a mix of no-limit hold’em and pot-limit Omaha.
He lost $10,000 in the first hand to his Norwegian opponent – his 10-10 up against A-K which hit two aces on the flop – but soon got back on top and veritably crushed Terken89 to register a $651,941 lead in the series.
It was his third win on the Showdown on the trot having beaten Scott Palmer and Rui Cao in two of his most recent matches. ♠

Playtech Signs California Online
Poker Deal
Poker network owner Playtech, quoted on the London Stock Exchange, has signed an agreement with the California Online Poker Association (COPA) to provide it with “play for fun” poker before the end of the year.
COPA comprises 31 state-licensed California card clubs and 29 federally recognised California tribal governments. California is actively considering legalising online poker.
The agreement between COPA and Sciplay, a joint venture between Playtech and the Scientific Gaming Corporation, will cover network management, hosting, advisory services, customer support, internal marketing, and all associated hardware. COPA board member and Commerce Casino president, Haig Papaian, said, “We sought a best-in-class service provider for COPA and after an extremely competitive selection process, Sciplay was the clear winner.
“It delivers the perfect combination of Playtech’s state-of-the-art, industry-leading gaming software and online experience, with Scientific Games’ nearly 40 years of expertise in providing secure, regulated, compliant-compatible services and meeting strict protocols of domestic and international regulatory bodies.”
Rick Weil, chief executive of Sciplay, added, “We are proud to be part of COPA’s progressive efforts in California to serve the needs of poker players throughout the state. COPA is supremely well positioned to become a licensed operator should Internet poker become legal in the state of California and Sciplay is delighted to have the opportunity to work with COPA. This contract demonstrates the value of the Scientific Games and Playtech joint venture and we see this as the first of a number of opportunities where our combined capabilities can deliver a comprehensive solution.”
It is estimated that California residents spend up to $13 billion per year on online poker. ♠