Online Casino News courtesy of InfoPowa

A silent chief, and maybe not enough Indians?

Despite assurances that all complaints are handled promptly, a storm is brewing in the Canadian first nation regulatory jurisdiction of Kahnawake following astonishing delays on the resolution of complaints about the Casino Depot and Golden Palace casinos.

In his latest email Chuck Barnett, administrator of the Kahnawake Gaming Commission says that the delays of over a year and a half are "Due to timing and circumstances beyond the control of this office…" and that "Currently, my office is working at an under-staffed capacity…"

It would seem so, because thus far the complainant has been subjected to a frustrating ordeal in which more than 66 e-mails have been sent and 35 calls made to the Kahnawake over the past eighteen months or more. The result? No phone calls have been returned, and in sheer desperation the player has now escalated the issue to Grand Chief Norton, who had still not responded as we went to press.

It all started back in April 2001when the player found himself in dispute over unfairly disqualified winnings at Golden Palace and Casino Depot. The casinos claimed that he had multiple accounts within the same casino group, despite the fact that the group does not advise clients which operations are in their large stable.

On the face of it, this would appear to be a straightforward ruling by the Commission, which licenses both casinos. But, as the player so eloquently puts it "Your own comments that complaints are usually finalised within 48 hours is surprising, considering mine is still outstanding after more than 13,128 hours."

The full, sad story is now posted on http://kahnawake.blogspot.com/.

New chief for struggling company

The latest development in the ongoing Poker.com saga is the appointment of a new President. The interim president appointed last week, Michael Jackson has stepped down.

The new man is Mark Glusing who has a strong background in international business, public company management and finance. Until recently, Glusing was a director and Chief Operating Officer of Immune Network Ltd., a publicly traded biotech incubator, where he led a restructuring effort . He is a former director of BC Research Inc. and currently represents a number of public and private companies at board level.

Poker.com was recently disrupted by the allegedly illegal re-direction of its Internet domain, www.poker.com, and is in the process of taking legal action to enforce its long term lease of the url. Despite the company's determined efforts to reclaim the domain, which now routes to a poker site for Aztec Riches.com, officials say that the process may be lengthy and could have adverse affects to current operations.

The company has warned shareholders that it may be required to consider other sources of revenue, sources of financing and other possible business ventures to ensure shareholder value is maintained.

New President calls the shots

Another switch in strategy had the shareholders of Poker.com wondering this week.

Newly appointed President Mark Glusing wasted no time in getting to grips with the Board’s proposal last month to go private and decided….to abandon the strategy and stay public!

In a press release the company said that given the recent developments in U.S. federal legislation with respect to the potential regulation of online gaming, the company's best course of action is to build upon the existing infrastructure and further develop Poker.com, Inc.'s gaming products.

It also revealed that the company plans to announce additional gaming products and additions to its current gaming portfolio in the new year.

Poker.com, Inc. is continuing with legal action in order to recover its "hijacked" URL as previously announced.

Quality business from a classy site

The Ritz Club London Online.com launched in September this year, and has been fast off the mark with innovative marketing ideas, including a deal just inked with leading Formula One racing team Jordan Grand Prix and brokered through the UK marketing agency Sportacus.

Jordan's classy website at www.f1jordan.com attracts just the sort of person The Ritz wants as an online player, and this Cryptologic-powered, top-end casino will be promoted vigourously through both the site and in a newsletter targeted on the racing team's fans. The agreement goes into practical effect almost immediately in order to mesh with the Formula One tests cycle and the high-visibility Autosport Awards.

Kelly Moulton, CEO, The Ritz Club London says, 'We are thrilled to be working with Jordan. In terms of our ideal promotional partner, this is it.'

Launched on completion of test program

Poker players will be keen to get into the "real money" poker tables at a new site this week. Swedish turnkey provider Boss Media has launched TotalPoker.com, a new poker room site using the companys latest software. Interestingly, the site is not only powered by Boss, but owned and operated by the company too.

The launch follows several weeks of intensive Beta testing, and "play for fun" invitations to a wide cross section of the Got2bet public.

One of the Internet's foremost poker experts, "Poker Pundit" Andy Glazer has worked with Boss in the overall development, product quality, and 24/7 support training of the site, which features Texas Hold 'Em and 7 Card Stud games with top quality graphics, backed by e-cash facilities from WebDollar.

Among TotalPoker’s many features are point-of-view seating; five-player turbo tables; logged hand history; and no-limit withdrawals. Table limits range from $1/2 to $20/40.

Top provider is into Russia

Russian players can now have a crack at the quality games and massive progressives offered by turnkey provider Microgaming, thanks to a quaintly named Moscow operation called Goldfishka.ru.

Operating on a Flash platform the site has a gambling suite of fifty Flash games that include the big Jackpot Madness progressives like Major Millions where the jackpot btw currently up in the 800 000 dollar region.

Add appealing looks, ease of use in both English and Russian language versions and full Support, together with Playcheck and Cash Check and you have what looks and feels like a very professional combination. E-Cash is through a global payment site called Webmoney, which deals in USD, Euro and Rouble denominations in a variety of international languages.

The ownership is intriguing, as the site copy identifies it only as "...the largest, most experienced and respected international casino on the Internet" Any guesses? First time players have access to a matchplay bonus maxed up to $100.

New expense for operators

Those in the know have been predicting that the free ride was over, and this week Costa Rican authorities proved them right with the announcement of a new tax on internet sportsbooks, and by implication online casinos operating out of the country.

The "licensing fee" has received a mixed reception. Smaller operations on tight budgets don't seem to like it, whilst larger and more established outfits have applauded the fee as a move in the right direction to officially legitimise and control the flourishing internet gambling industry.

Firms employing between 1 and 20 people are rated at a $20,000 fee. Those with 21 to 40 employees will be charged $40,000, and those companies with more than 40 employees on their books face a $60,000 licensing fee.

Implementation could be scheduled for as early as the first quarter of 2003 although this, and the penalties for non-compliance have not yet been finalised.

For some time now Costa Rican legislators have been debating the merits of introducing formal licensing backed by stiff regulatory requirements, and the latest development is being interpreted by observers as an indication that such a regulatory structure with teeth is imminent.

The gambling industry has become a significant contributor in Costa Rica's economy, bringing employment and capital to the country Industry experts say that the credibility of any licensing structure will rest in the infrastructure and laws formed to back up the licensing and handle complaints. "The key will be if the government is sincerely interested in regulating the industry, or just collecting a licensing fee", one specialist commented.

The fee, and its enforcement will likely impact badly on the "Mom and Pop" type of garage operations with low reserves and budgets, and that is seen by many as a positive development that benefits the industry and the safety of players.

Brits now set to expand

Reports in Ananova indicate that GPB 95 000 net has been raised by London-based public company Gaming Corporation plc after placing 10 million new ordinary shares with an institutional investor, at 1 pence per share.

The company needs the cash to provide additional working capital for continued growth of its gaming operations, it said. The shares represent approximately 16.3% of the company's enlarged issued share capital.

Gaming Corporation's Netherlands Antilles subsidiary was in the news recently when it launched Play.Casino.co.uk, which marked not only another software client for Boss Media but a partnership in the casino too.

The new operation is pounds sterling denominated with e-cash through Boss's WebDollar.

Marketing is likely to be heavy through the portal Casino.co.uk, Casino.com and OuttheBox.com. The new arrival has all the hallmarks of a top-end operation and will be popular with the European gamblers on whom it is targeted.

Gaming Corporation chief, Justin Drummond said the operation is already performing above expectations and the board is confident about the company's prospects for the New Year.

Mobile casino games for 17 million folks-on-the-go.

Continuing to make an impact on the nascent mobile gaming sector of the industry is Israeli company Zone4Play, which recently announced a deal to provide games to the giant European cellphone network Orange, and now follows that with a similar agreement with network mm02.

Zone will develop casino games for mm02 on the Pinpoint Fuel software platform, delivering its games in SMS and WAP format and following up with innovative Java 2.5G and 3G applications later on.

17.25 million subscribers will have access to the games, which will include slots, video poker and blackjack.

Business Development manager, Erez Lahav says, 'This agreement has definitely strengthened our confidence in the products we deliver and the technological level we have achieved so far. I believe that millions of subscribers in the UK and across Europe will have the ability to experience the playing of casino games in their mobile devices, wherever and whenever they are.'

Blast 21 strikes again

We're told there was recently a changing of the guard in management terms at Blast 21 casino, but it doesn't appear to have improved matters at the RTG-powered operation, which has been the subject of complaints before.

According to Gambling.com's Gambing Grumbles one client who went to some trouble to make sure he was not infringing their rules found himself penalized some time after the "offence" and despite being allowed to make deposits on two different subsequent occasions.

Player Fritz had a friend round at his place who wanted to gamble on a promotion at Blast 21. Being a decent, law-abiding citizen Frits contacted the casino and was assured that it was OK for his guest to gamble on his PC if she furnished proof that she was a different person, normally living in a different location and of course with her own unique credit card. It was done. She had fun, won a little, cashed out and was paid without hassle. So far so good.

The crunch came two months later, when Fritz suddenly found himself locked out of his Blast 21 account. Fritz produced his proof and explained the situation again, and he was readmitted and allowed to make deposits on two occasions without difficulty.

But when he won a little and tried to cash out a mere thousand dollars he was locked out and banned! For using multiple accounts. He couldn't understand it because the only time that had happened has been when his friend Tina gambled, and that had been cleared by the casino, right? He had the proof.

It didn't make any difference to the new management however, and Fritz remains a frustrated player who has been unfairly punished despite making every effort to do things right.

Blast 21 is part of the Casino Extreme group, which has achieved some notoriety among players for unfair decisions. In these competitive days you would think that casinos would want to hold on to honest and genuine gamblers - not lock them out.

Affiliates could do well on this deal

Portal webmasters and others who make money from finding players for the casinos will be licking their lips over the latest RichWebmaster affiliate program deal. It offers up to 100 percent on every player referred ....of course under certain conditions.

The program is currently hyping an unusual 2-month initiative in an effort to boost participation. For the first phase, affiliates are being offered a seventy percent commission on each player acquired from January 1st through 31st. New affiliates must register before Jan. 1st next year to benefit.

The second phase is even better and clearly can only run for a limited period. Affiliates will earn all - a one hundred percenter commission - on each player acquired from February 1st through Feb. 28th. Newbie affiliates must register before Feb. 1st to benefit from this one.

The program claims that these commission levels will enable affiliates to generate 6 months of commission revenues within only two months - while building their client base through a casino list that includes Grand Banks, IPlayTournaments and Black Widow.

Players' complaints settled

Last week we issued a warning on Jag Casino.com following complaints that admission rules had been retroactively applied to unfairly disqualify payouts due to clients at the casino We are now in the happy position of advising that following intervention by the Online Players' Association the casino owner, Brad Mitchell has done the right thing and settled with the complainants.

He has also disciplined one of his managers, George de la Vega who showed incredible industry ignorance and did considerable harm to the casino by making some of the most arrogant and uninformed posts yet seen from a casino on Internet message boards.

It appears that the disqualifications were caused not so much by dishonesty, as by badly implemented and uninformed management systems and decisions at the casino, which had recently launched. The owner assures us that these problems have been fixed. And Danes are still not welcome!

Antiguan authorities say it is "closed"

There will be some pretty angry online gamblers around this week as news that Atlantic Interbet has gone to the casino junkheap spreads.

The casino site closed abruptly, and enquiring players were given a variety of assurances that the site was only closed temporarily. As the days turned to weeks players awaiting payouts became increasingly vociferous but the picture remained unclear. At one time a high profile operation, the casino has been operational since the late nineties.

This week checks of the Antiguan licensing site here confirmed the gamblers' worst fears...Atlantic Interbet is listed as "Closed" despite the expiry date for its license that goes well into 2003.

As we went to press we were still awaiting answers to questions sent to the Director of Offshore Gaming.

For those of you who are unaware or don't remember, Casinobar was challenged by Michael Shackleford (aka The Wizard of Odds) last June who stated that the software was dealing seconds in Blackjack (aka cheating). The casino had a fit and threw a bunch of lawyers at the wizard and at me as well for reporting on this. The exchange is thoroughly detailed here. The Wizard of Odds wasn't the only one who checked out their game of blackjack; there were others: The Gamemaster came up with more or less the same results, the webmaster of Custom Strategy Cards delved into this matter as well as Dan Pronovost, the webmaster of Deep Net Technologies. These other parties concluded that the software was cheating as well. But several weeks after the Wizard made his discovery, the software was retested and seemed to be okay. The problem had apparently gone away.

Today there is a different story. The game of Blackjack was retested in September by the Wizard, and he got a fair game, but the webmaster of Custom Strategy Cards also did a retest in November, but got an unfair game in the same manner of dealing seconds as before. Speculating that Casino Bar programmed the system to give the Wizard personally a fair game, he played under another name and from another computer. As expected the results showed Casino Bar is still dealing seconds. He also videotaped his play this time because Casino Bar was aggressively threatening legal action in September and October. For the specifics visit http://www.thewizardofodds.com/game/casinobar.html#retest2.

The Golden Palace (GP) group took a bold new course this week with the introduction of Dr.Ho-style , video-linked internet gambling filmed live from a casino set in Costa Rica. GP are using the same Casino Reality software commissioned by Dr. Ho.

We are advised that GP was working on the project before the recent decision by the Asian gambling tycoon to reject bets from the United States that left this particular field wide open.

The new GP "live video gambling via the internet" system is currently up and running but offers only Roulette at present, with attractive croupiers in revealing costumes. Several experienced players have given us very positive reports, but we have not yet received any official press releases. Dealers, pitboss and supervisors were apparently all very helpful, and on hand to answer questions about the software and resolve issues. Purchasing chips and cashing out were both reported to be "easy and logical processes".

Players who already have GP's Aquaonline ( IGS) software, don't need to make another download. Once in the Aquaonline software, they are linked to the CasinoReality software.

Industry observers are now waiting to see whether i2corp / HGN will try to enforce their patents against the well-funded GP.

Plaintiff alleges attempted corruption of software testers

Litigation opened the week with a bang when Toronto-based gambling software developer WebSports Technologies Inc filed notice that it is suing Cryptologic for a total of US$ 293 million, surely one of the largest claims yet made in the internet gambling industry.

Cryptologic's director of communications, Nancy Chan-Palmateer dismissed the claim as "frivolous and without merit" and said "CryptoLogic has not issued a press release as we don't view this suit as material. The claim is in the hands of our legal counsel and will be defended in due course."

The WebSports suit, on which Cryptologic has twenty days to respond alleges that CryptoLogic conspired to alter the results of a testing procedure being conducted by TST testing systems of North America to authenticate and certify WebSport's "ProSportsTrade Exchange" game in order to break a contract that had been signed by both parties. In a statement from CEO and President Nick Murphy, the company says that "WebSports will pursue every legal avenue available in order to challenge the duplicitous actions of CryptoLogic."

Domain dispute or hi-jacking?

Players could be forgiven for thinking that url pirates or hackers had been at work when they received this message from the Poker.com site earlier this week:

"We regret to inform you that the URL "www.poker.com" has been hijacked illegally." Adding to the confusion was the fact that the poker.com url re-routed to Aztec Riches poker operations, although they were innocent participants in the drama.

The message went on to claim that the poker.com cardroom has a legal contract from the owner of the domain to use the URL through the year 2098, but that it had been redirected without notice or consultation for reasons unknown to the cardroom site.

One can imagine the disruption to business, because the software download is linked through the url, and the cardroom management assured players that they would make strenuous efforts to recover "what is rightfully ours".

Their efforts were not immediately successful it appears, because players were soon being redirected to a new url at The Poker Club.com. Revelations later in the week showcased some complex arrangements and interesting commissions paid in respect of the original agreement on the url, and it was clear that the issue was a business dispute rather than a more dramatic and sinister pirate raid.

200 million bets and counting

"Within the next few days Casino Rewards will surpass the 200,000,000th bet placed on our casinos, and to celebrate this incredible milestone we are giving away $2,000 to the lucky person placing the second hundred millionth bet." says the blurb from Microgaming-powered Casino Rewards group.

We thought that two grand was a little on the cheap side for such a significant occasion and such an established and influential group (their casinos include Blackjack Ballroom, Golden Tiger, Strike It Lucky, Virtual City, Zodiac and Lucky Emperor) but we guess it is better than nothing at all.

As we went to press publicity on the really lucky gambler who hit this one just right had not yet appeared.

Experienced and well-funded takeover

VegasUSA casino was a classic example of a great site, good software but poor management as can be seen by visiting any number of message boards where aggrieved players share stories of inefficiency, weak communications and bad payouts.

Until this week, when a surprise announcement from the respected Trident Group made a much rosier future likely for the battling operation.

Details of the takeover agreement were not yet available as we went to press but Trident operates the well-established and popular King Neptune's and newly launched Trident Lounge casinos and is a well-funded group with a good reputation.

With the highly experienced Trident management team there is little doubt that VegasUSA will be sorted out, probably given a games overhaul and brought into the same efficient line as its new sisters. The casino already has Microgaming software and will therefore present few technical integration problems.

No indications are available regarding outstanding payments to players yet, but the following notice was up on the site as we went to press:

If you have any questions or queries you may contact the new management at: vegasusa@tridentegroup.com or call toll free: 1-866-931-0880

We thank you for your past patronage and wish you Happy Holidays and a safe and healthy New Year.

Interesting for players who are owed money. If you're owed money from before July 1 you are encouraged to contact payouts@diifs.com. After July 1 it's Proc Cyber and now e-processing services.

Customer relations not a skill here

We've mentioned Jag Casino.com before under "Cautions" for a lack of transparency regarding their gambling software, but complaints have been increasing which illustrate that this is a management that is not well versed in gambling or client relationship skills. The complaints appear to centre on unfair bonus disqualifications, slow pay, some rather strange rules that indicate an incomplete understanding of the Martingale betting technique, ignoring player emails and downright discourteous behaviour. The nadir came late in the week when a manager at this casino publicly boasted that client complaints, especially on message boards were of little consequence and in fact saved him advertising ! OK, we know that was bravado but showing such obvious disdain for potential players says little for the way in which this operation is managed.

Virtual complainants

RTG-powered Virtual Casino and its many clones continues to generate complaints, particularly on the slow-no pay front and has now achieved a high level of notoriety among online gamblers.

Whatever happens, don't Win It here

Well, that would appear to be the case at the RTG-powered casino of that name because there's a slow-no pay experience happening to several gamblers there, exacerbated by evasive Win It.com accounts and support staff. One complainant has been trying to get five withdrawals totalling $9 000 processed for months.

Editor's note: Please visit our rogue section for more on these casinos.

Earthport cuts out the credit card killjoys

UK-based payment infrastructure group earthport has signed up another large online bookmaker Sportingbet.com to its Universal Payment Network.

The deal will enable Sportingbet's customers to place bets via earthport's online system, rather than using credit or debit cards, and will provide earthport with an initial set-up fee, guaranteed monthly payments and a percentage of revenues.

Sportingbet becomes the second major gaming brand to adopt earthport's services following an agreement with Ladbrokes in August. Earthport's UPN links directly to the traditional banking system and supports both e- and m-commerce transactions.

A number of credit card issuers in the USA have this year stopped their users from transacting with betting sites, allowing third-party payment providers such as earthport to fill the vacuum.

Trident group pioneers new casino payment solution

There's another new kid on the e-payment block, making a debut this week on the three Trident group online casinos King Neptune's, Trident Lounge and VegasUSA.

VASpay is offered by Payment-Zone Inc and works just like a regular account, providing each user with a unique code, security code and PIN number.

Users can fund VASpay accounts through a variety of means, including credit cards, American bank accounts and direct deposits to Payment-Zone affiliated banks. High levels of security are a major selling point.

It's another affirmation that blocking credit card use in online casinos need not be the disaster many thought it would be.

Brit appeal court finds against William Hill

The results of a legal fight over software patents between giant bookmaker William Hill and a developer called Julian Menashe will no doubt have European lawyers and software strategists alike doing some homework this week.

Three top British judges in the Supreme Court of Appeal in London heard argument from what looks like platoons of legal beagles on both sides. The case has been running for just over a year since Dr. Menashe tried to enforce his European Patent (UK) No. 0625760 through which Menashe Business Mercantile Ltd claims to hold an exclusive licence.

The patent relates to an invention entitled 'Interactive, computerised gaming system with remote control'. Claim 1 claims "a gaming system for playing an interactive casino game comprising a host computer, at least one terminal computer forming a player station, communication means for connecting the terminal computer to the host computer and the program means for operating the terminal computer, the host computer and the communication means … characterised in that the terminal computer is situated at a location remote from the host computer …" . Sound familiar?

Menashe tried to enforce his patent against William Hills's Cryptologic software on the grounds that it was being delivered in the UK to gamblers through internet or CD. He sought a £200,000 licence fee and 1.5% of gross wins from the online casino business William Hill contested the validity of the patent, in essence claiming that they did not infringe as the host computer was situated outside the United Kingdom in Antigua or Curacao. The judgement went against William Hill and a complicated appeal case was generated.

The judges were unanimous in dismissing the appeal after detailed and prolonged examination, setting the scene for some new strategic thinking on an old, offshore-based argument and making operators and software providers alike more vulnerable to legal actions particularly in the European Union region.

What the ruling means is that Manashe could sue all the companies that are violating his patent, and win monetary awards from them; he could bring court injunctions ordering them to cease and desist from continuing to violate his patent.

Quite apart from direct licensing, Dr. Manashe could be in an advantageous position having won this appeal. There are several competing gambling software companies in the EU. Theoretically, one of these could secure from him a licensing contract and underwrite lawsuits against the competing organisations, hamstringing their business.

Binions goes internet

The initial excitement at the news of an online casino launch from Las Vegas land operators Binions was tempered by the realisation that the new facility is intended as "Play For Fun" only at present.

Access Gaming Systems (Europe) Ltd. clinched the contract and have been building the internet casino for Binion’s Horseshoe Hotel & Casino, Las Vegas for some months at Binions.com. The project positions Binions to benefit from any change in Nevada or US federal law on internet gambling, and is AGS’s first deal with a US Casino operator. It is also the first time in five years that the turnkey provider has hosted an interactive gaming site on behalf of a customer.

The new site features a full range of table games; multi-reel, multi-line full-screen slots; loyalty points program, full Support and gaming histories online. The Access software was the first internet gaming system in the world to be certified by a (Australian) government gaming authority in a fully regulated jurisdiction, and has been licensed to major gaming operators in Australia, Austria, Germany, France, Holland, Norway and the United Kingdom.

A wild Christmas in Africa

Instead of stuffing players' stockings with the usual holiday bonuses, Piggs Peak Casino.com plans to do something a little more exciting this year - one lucky player will get to travel through the wilds of South Africa on an all-expenses paid luxury safari.

The owners have a land-based casino and resort in the Swaziland region and part of the prize will be a stay in this picturesque area.

The winner of Santa's Safari Sweepstakes will get the trip of a lifetime with his or her guest of choice: three nights at Sabi-Sabi game reserve and three nights at the luxurious Piggs Peak Resort & Casino. All flights, meals and safari drives, as well as $1,000 in spending money, will be included in the prize package.

The Safari Sweepstakes is part of Piggs Peak's campaign to give players a Christmas they'll never forget. The Casino is also giving away five Microsoft X-Box Gaming Consoles throughout December in its X-Box, X-Mas Sweepstakes.

Both promotions are running at Piggs Peak Casino and its sister casino, Jackpots in a Flash, until the end of the month.

U.S. Virgin Islands Adopts Rules for Internet Gaming, While Federal Appeals Court Upholds Legality of Online Casino Games

VANCOUVER, British Columbia, Dec. 2, 2002 -- The licensing and regulation of Internet casinos, in the United States, is an issue that's never been more ripe for discussion, thanks to developments in the last two weeks, according to the Interactive Gaming Council.

"The IGC has long argued that rigorous regulation is the sensible solution for understanding the Internet gaming phenomenon and protecting citizens, especially underage and problem gamblers," said Rick Smith, executive director. "We are encouraged that what's happened recently in both the legislative and judicial arenas will lead U.S. policy makers to a thorough, intelligent examination of this form of gaming."

Last week (Monday, Nov. 25), the Casino Control Commission of the U.S. Virgin Islands adopted regulations for the conduct of Internet gaming. The commission acted after an opinion by the territory's attorney general, who stated that online gaming is legal in the U.S. Virgin Islands as long as operators can be certain that players are of lawful age and that they are placing bets only from jurisdictions where such gaming is not illegal.

"A comprehensive regulatory infrastructure and compliance with the licensing jurisdiction -- similar to the regulatory philosophies that apply to leading land-based gambling jurisdictions -- is a movement in the right direction," Smith said. "With new technologies, there is a need for governments to review how they regulate (not what they regulate), even more so as geographical borders 'disappear' in the medium of e-commerce."

When the Virgin Islands first legalized Internet gaming in 2001, it became the second U.S. jurisdiction to do so. Nevada has passed enabling legislation, but implementation stalled after state officials received a letter from the Department of Justice that said online casino gaming violates federal laws.

That opinion, however, preceded a key decision by the U.S. Court of Appeals for the Fifth Circuit, which on Nov. 20 upheld a lower court ruling that said federal law forbids sports betting on the Internet, but does not prohibit casino gaming.

"The Virgin Islands now appears to have a green light to proceed," said Keith Furlong, deputy director of the IGC. "That government is creating a credible Internet gaming jurisdiction where players are protected and only responsible companies can be licensed to operate casino Web sites." The legislation and regulations in the U.S. Virgin Islands provide for the establishment of two Master Service Providers, which are the only entities authorized to host the physical operations of approved Internet gaming sites. The two Master Service Providers as referenced in the legislation are the St. Croix Internet Group LLC and U.S.V.I. Technologies Initiative LLP.

Frank Catania, former Assistant Attorney General and Director of the New Jersey Division of Gaming Enforcement and former Chair of the International Association of Gaming Regulators, said, "Under the leadership of Judge Eileen Petersen, Chair of the Casino Control Commission, the U.S. Virgin Islands has adopted tough rules that should ensure fair and responsible online gaming in that jurisdiction." While there are bills expected to be re-introduced in the U.S. Congress that would outlaw Internet gaming, officials of the Virgin Islands believe that the territory can now begin to host such gaming and then be "grandfathered in" if federal law changes.

Meanwhile, on Nov. 19, the first federal bill to regulate Internet gaming in the U.S. was introduced by Rep. John Conyers Jr., D-Mich. In support of his bill, which may be re-introduced in the next Congress, Conyers states: "The international nature of the Internet has rendered ineffective federal and state statutes governing the placement of wagers. This bill creates a commission to assure that the same sorts of consumer protections imposed on land-based gaming will apply to a licensed and regulated Internet-based gaming industry."

The IGC's Smith said, "While many challenges lie ahead, the IGC commends Rep. Conyers for his understanding of Internet gaming, and his appreciation for a licensing and regulatory approach toward consumer protection for online gaming, and e-commerce in general."

If you would like a copy of the U.S. Virgin Islands Rules and Regulations or a copy of the U.S. Court of Appeals for the Fifth Circuit ruling, please contact the Interactive Gaming Council at admin@igcouncil.org.

Debts have to be paid

Seriously good news on the legal front this week came from a federal appeals court in Louisiana, which upheld an earlier dismissal of a class-action lawsuit by people who lost money gambling in Internet casinos

The case could even help to legalise Internet wagering in the USA. Three judges of the 5th U.S. Circuit Court of Appeals in New Orleans upheld a district court's dismissal of a lawsuit by gamblers Larry Thompson and Lawrence Bradley, saying the gamblers failed to prove that online casinos and the credit card companies they used to process their wagers violated federal racketeering laws and the federal Wire Act.

Some thirty-three virtually identical cases had been transferred to the Louisiana district court through multi-district litigation and the cases of Thompson and Bradley were selected as test cases and consolidated for hearing within the framework of the 1961 Wire Act as the primary law involved. In August, the U.S. Department of Justice sent a letter to Nevada's state Gaming Control Board stating that, in its view, the Wire Act also applies to casino-style gambling on the Internet as well as for sportsbetting at which it was originally aimed.

The New Orleans federal appeals court decision reported here disagreed with that interpretation.

"The district court concluded that the Wire Act concerns gambling on sporting events or contests and that the plaintiffs had failed to allege that they had engaged in Internet sports gambling," the panel wrote. "We agree with the district court's statutory interpretation, its reading of the relevant case law, its summary of the relevant legislative history, and its conclusion."

The ruling may leave open the possibility of legalizing non-sports Internet betting, such as traditional casino-style games of chance, in states that approve it, supporters say.

"In 1961 I don't think legislative intent could have included the concept of playing casino-style games over phone lines," Keith Furlong, deputy director of the Interactive Gaming Council, is quoted as saying.

Widely respected internet gambling legal expert Tony Cabot says that "Ultimately the laws are interpreted by the courts. As you get higher appelate courts making the determination of the Wire Act applying only to sports, it makes it more difficult for the Department of Justice to sustain its position."

iChance merger in SEC filings

The normally press-release prone Angelciti online casino group were unusually low-key last week about some important strategic moves.

In SEC filings on 18 November the company made the required notifications that it had reached a stock-for-stock merger agreement with iChance, a company associated with the Futurebet gambling software company. Several experienced industry observers pretty much missed out on the notification as no-one seemed to have seen any publicity on it until this week, when an alert Winneronline poster picked up the information on the SEC site. On the day the posts were made at WOL the announcement suddenly appeared on the Angelciti website.

Detailing the exchange of shares, Angelciti reveals that it's Worldwide Management subsidiary will be involved, and that there will be advantages that it lists as follows:

"First, iChance currently has rights to gaming software and,as part of the transaction, Worldwide Management will receive a materially below market licensing deal for the use of the gaming software rights held by iChance. This will materially reduce the costs of operations for Worldwide Management and the additional software will provide extra marketing opportunities as players have a greater variety of games to choose from.

"Secondly, we are experiencing difficulties in continuing the ongoing operations of Worldwide Management because as a publicly reporting, but non-trading company, it is difficult to obtain financing under current market conditions. iChance is a publicly reporting company that is traded on the OTCBB, and as such theoretically has greater capacity to access funds for the ongoing operations and growth of Worldwide Management.

"Lastly, our Board of Director's believes that iChance's status as a publicly traded company will provide Worldwide Management with greater opportunity to attract and retain management and employees, enabling Worldwide Management to offer equity participation, stock options and other employee benefits. This should help Worldwide Management to grow more rapidly than as a subsidiary of a non-traded company."

It is known that Angelciti has been trying for a public listing, and the merger will presumably now render an IPO in this regard unnecessary.

Certain aspects of the filings have caused comment and debate on the message boards. Both companies have very little in the way of available cash and are currently loan and investor-dependent. The "consultants" and "investor relations" expenditures of up to sixty percent reported in the filings is thought by many to be excessive, and the position of Real Time Gaming as the present Angelciti software provider has become the subject of speculation. If Angelciti has access to gambling software at no cost why would it want to continue to pay RTG for this vital aspect when the contract expires in 2003?

A sizeable chunk of Angelciti equity has also been earmarked for RTG, and that begs the question of how this might be affected by the merger and a probably unnecessary Angelciti IPO.

Angelciti spokesman Ramon Fairchild says that the iChance software will be used to complement the RTG product, and as we went to press no response had been received from Real Time Gaming.

One of the interesting side-effects of the WOL discussion on these interesting developments was a debate on whether the information should have been posted, and "shoot the messenger" attacks on the poster from certain portal owners. Pointing out that there had been past incidents where internet casinos had deliberately concealed their financial problems and continued to accept player deposits to the end before folding and leaving clients unpaid, one poster expressed the view that the airing of such publicly available information was legitimate, as was conversation on these issues.

Legal settlement requires millions of shares

The latest (Nov. 15) World Gaming filing indicates the company is still struggling, with revenues down 23 pc in the current quarter and down 14 pc YTD. Royalties have also shown a decline by 5 pc over the quarter and 4 pc YTD.

The report refers to the issue of six and a half million ADRs (American Depositary Receipts - shares) in respect of the recent settlement of its class action litigation defence, and an unspecified additional issue of shares to cover associated legal and administration costs.

It notes that stringent operational cost saving strategies are being employed that have included the retrenchment of staff, closing of offices (the company now has one location in London) and a fundamental change in marketing strategy from direct sales objectives to development of the existing client base.

US$1,25 million of the Sportingbet loan of $1.5million has been received but additional financing is still being sought to meet operational costs. Seventy five percent of the Sportingbet loan is due for repayment in June next year with the balance plus interest due three months after that.

Interactive scene is the place to be says CEO

Swedish turnkey provider Boss Media shrugged off last week's progressive jackpots scandal and continued pumping out media releases this week, indicating the pursuit of new initiatives.

The Swedes picked the World Lottery Association Congress in Adelaide, Australia to launch a new gaming product, Interactive Video Terminals (IVT). The product is aimed at operators of physical gaming machines, providing same with Internet-based software instead of using the more traditional mechanical systems.

Boss claims that IVT could be used, for example, at casinos, on cruise ships or by traditional gaming machine operators. IVT will enable gaming operators to easily change games by simply pressing a button, for example offering Bingo in the daytime and Roulette at night, and to adapt games according to demand without the need to invest in new machines. Another advantage is that the IVT system provides immediate gaming statistics and other real-time information, making it possible for operators to more closely monitor performance.

Boss Media is aiming to implement the first pilot installation in the second quarter of 2003, and says that it expects IVT to be an important business area for the company in the future.

Little white lie?

The same media release gives some prominence to Boss being accepted as an associate member of the World Lottery Association, capitalising on the event by announcing "We regard the fact that Boss Media has been accepted as a member – which requires the approval of all of the other members – as a sign that Boss Media is perceived as a long-term player in the market."

You can't get away with even small inaccuracies in the 2002 gambling industry, though and within days message board posters were pointing out that the Boss membership trumpeted so loudly by CEO Peter Bertilsson was of an associate nature which, contrary to the Swedish boasts requires only two members' votes. The unanimous decision is only needed for full membership which is two steps higher than that granted to Boss. The "entry level" first step is Associate (Boss), the second step is Prospect and the top ranking step is Full Member...

Tournament attracts record entries

If poker room site Poker Stars.com's hype is to be believed, they have just hosted the "largest poker tournament of any kind in history", with a "record-shattering" 1,500 players competing for $10,000 in prize money. The media release certainly reflects the popularity of internet poker rooms with the gambling public, particular in the USA.

Tournament 5000, conducted earlier this month, was a No Limit Hold 'em event with a $3 buy-in and $5,500 in added money provided by PokerStars. The tournament was the latest in a series of low buy-in events designed to encourage new players to try online tournament poker. The landmark event included players from more than 30 countries.

PokerStars is apparently no stranger to landmark online events. In July 2002, the company hosted the first annual World Championship of Online Poker (WCOOP), in which over 2,800 poker players from around the world competed for more than $800,000 in prize money. The winner of the main event in the WCOOP collected over $65,000 in prize money.

The site claims that it uses proprietary multi-player software.

Good techies don't always make successful businessmen

Surfacing on a well-known operator's message board this week was a young man called Russ with a sad tale of good software screwed by bad processing.

It seems that Russ and three other bright young technical guys started a site called Pokerspot.com earlier this year Using their own multi-user poker software, it was very much a going concern, raking in as much as $160K a month from 1200 depositing players in the final three months of its short life.

They were growing at a phenomenal rate of fifty percent in those last three months, but spent less than $100K in marketing. As Russ says, "The thing should have made the four guys who owned it very, very rich."

So what happened to derail this seemingly idyllic situation and a great future?

Russ claims it started when they were burned by one ecommerce solution after another. He says that Epayment Solutions took $80K from them. Then Net Pro Ltd. took another $400K, presenting them with "...severe enough cash-flow problems that we couldn't pay our customers." Additional hassles came when they were not informed about the divvy-up of the DCTI player deposits and consequently missed out on that claim.

The word soon got around and business started tailing off rapidly - another example of the oft-denied power of player chatrooms and message boards.

But the foursome's troubles were not yet over. The sale of the Pokerspot assets to a large Canadian-based online casino whose name everyone would recognize ("we'll call it GP" says Russ) fell through three months after the contract was signed, and they were unable to recover enough cash to pay off all their old players.

The bottom line is that four guys are moving on, and the successful technology is now up for sale to the right person with the right offer. The buyer gets an Antiguan company which owns multi-user poker software, complete with tournament software and all standard games. The code is documented, but would apparently need "some tender loving care."

Montreal provider loses several licensees

Clock Media has lost a number of licensees, specifically A Sure Bet, Royal Net, Crypto, Cyberclub, and Ten Ten. Sixth Sense was also down as we went to press but is expected to be back up as part of the Infinite Casino operation soon. Only Infinite, Cloud Nine, Bet or Wager and Take All Bets remain. Clock has apparently done an extensive re-work of its previously cheating and flawed software, and the new product has been fitted to all remaining casinos. It carries the Wizard of Odds seal as being truly random and fair over the three days he tested it in July 2002.

32 Red winner makes it a new record for progressives

The benchmark $80,000,000 level in total payouts has been passed in only 28 months of progressive jackpots operations by the Jackpot Madness organisation. Last week we reported the hit that pushed the cash payout total through the eighty million dollar barrier when Andrew T took home $166,280.72 in cash after playing on Cyberstud Poker at the new 32Red Casino.

"We are absolutely thrilled with the pace at which the network is growing. The Jackpot Madness family currently boasts 71 casinos, with more joining all the time." says Marilyn Glazier, the network's press agent.

Jackpot Madness is operated by Jumbo Jackpots of Curacao and is the largest online progressive network and offers eleven games. All the jackpots won on the casinos providing these games are offered through full, direct cash payouts - the only games on the Internet offering this benefit. The jackpot totals are "live" and the Jackpot Madness site provides constantly updated information together with links to participating casinos.

But "Nobody expects ....to shut down internet gambling"

A rather negative Got2bet article in the Wall Street Journal received wide exposure this week, listing events that indicate harder times for internet gambling as an industry, but noting that a shutdown is unlikely.

The writer of the piece, William Bulkely says that internet gambling has been one of the Internet's biggest financial successes, but that it is now losing what he describes as "allies", and points to the following indicators:

PayPal discontinued its lucrative service to gamblers this week following prosecutor attacks on credit card gambling transactions. Last month, Yahoo stopped carrying internet casino adverts, following an example set some time ago by AOL.

Akamai Technologies has banned internet gambling adverts from its content servers.

Quoting Bear Sterns, the article points out that instead of predicted growth for the industry of 43 percent, this estimate has now been revised downward to only 20 percent due to financial and legislative pressure, giving a revised turnover figure of $4.2 billion, sixty percent of it coming from the USA. Consequently, increased (casino) attrition is expected in the market.

Among the many groups currently reporting reduced revenues, the author points to the high-profile Cryptologic company whose net income in the third quarter this year has dropped by 70 percent over the same period last year on a 25 pecent decline in revenue.

The legal situation in the USA is cited as a contributory cause to the general reduction in business. Various bills that would explicitly declare Internet gambling to be a federal offense have been stymied in Congress, says the author. But state attorneys general have had success going after the industry’s service suppliers, managing to bluster or sue their way to settlements that make it harder for consumers to place bets and more difficult for the Web casinos to find gamblers.

Rather dramtically the piece comes to this conclusion: " The drumbeat of disapproval continues to push Got2bet out of the Internet mainstream" but goes on to say " Nobody expects the piecemeal regulatory efforts to shutdown Internet gambling".

Another big turnout expected

ICE (the International Casino Exhibition) is one of the top places to go for exposure and information on the European scene and this year's event looks as if it will be even bigger and better.

The Got2bet sector will be represented by no fewer than 29 exhibiting companies from 13 nations, occupying 624.1 square metres (6,715 sq.ft.) of London, England floor space.

The heavily branded 'i-Gaming Zone' has more than doubled in size since it was launched at ICE in January 2001. The number of i-gaming companies represents around 20 per cent of the total exhibitor base at this year's event. 19 of the 29 exhibiting companies are from outside the UK, making the specialist zone one of the most international showcases for i-Gaming to be found anywhere in the world.

Spearheading the i-Gaming Zone group, the five largest stands will contain showcases from leading suppliers in the field based in the UK (Microgaming Systems), Sweden (Boss Media), Spain (Cirsa Interactive), Israel (Playtech) and Gaming & Entertainment Technology (Australia).

The importance of ICE to the i-gaming sector has been underlined by the number of key industry events taking place at the exhibition. The Interactive Gambling, Gaming and Betting Association (iGBBA), which is recognised by the Gaming Board of Great Britain, GamCare and the UK Government's Department of Culture Media and Sport (DCMS), holds its Annual General Meeting on Thursday 23rd January.

The annual Gaming Regulators Luncheon will also be held at ICE against the backdrop of deregulation. In 2002, the event was attended by over 60 individuals representing regulators from 19 jurisdictions comprising the Bahamas, Channel Islands, Denmark, Finland, France, Hungary, Israel, Kenya, Latvia, Netherlands, Norway, Poland, Portugal, Republic of Ireland, Slovenia, Sweden, Switzerland, United Kingdom and the United States of America.

Get this one into your diaries before the holidays - ICE 2003 on 21st, 22nd and 23rd January at London's Earls Court Exhibition Centre.

River City organising Aussie conference

The Pacific Congress on Interactive Gaming could be one for your atention next year. Organised by the River City Group, this regional event is scheduled for the Alice Springs Convention Centre (Australia) between February 24-26, 2003, and provides an opportunity for the world's most experienced I-gaming companies to converge with up-and-comers in Pacific markets to discuss business opportunities as well as the state of the industry.

Sue Schneider, CEO of The River City Group says, "While other parts of the world may be gaining momentum as the evolving regulatory centres of interactive gambling, the Pacific region remains a hub in its own right. Clearly, it is home to some of the most mature, sophisticated I-gaming sites in the world, particularly race and sports books. It is also furthest along in developing wireless technologies for both wagering as well as marketing to players. And the region is home to the most dedicated consumers in the world: Australian and Asian gamblers."

The conference program will focus on issues of concern to those in the Australia, New Zealand and various parts of Asia. It will include recent research findings regarding online gamblers; discussions on cross-border Internet gambling, an overview of payment processing methods in Asia-Pacific jurisdictions; best practices for player acquisition and retention; an overview of wireless gambling; and more.

Whilst that diary is open, note that River City will again convene the industry's largest conference next year, the Global Interactive Gaming Summit and Expo, slated for May 20-22, 2003 in Toronto.

Christa departs

Troubled Poker.com Inc. surprised evryone this week with the announcement that Christa Taylor has resigned as President and CFO effective immediately. Speculation is rife that the resignation is connected with the decision to delist. The Board of Directors has appointed former President Michael Jackson to hold the fort until a long term prospect can be found to take over the top executive slot.

Poker.com Inc is an on-line marketing company earning revenue from the sale of gaming Licenses and royalties derived there from.

Ex-Crypto exec takes the reins

Turnkey provider dot com Entertainment Group appointed a new top dog this week when it selected ex-Cryptologic COO David Outhwaite as CEO and as a member of the Board of Directors. Outhwaite will take over the CEO portfolio from founder and president Scott White who remains with the company.

Outhwaite served as the Chief Operating Officer and Vice President of Compliance and Regulatory Affairs of Cryptologic, Inc. from April, 2000 to August, 2002, and has held executive management positions at several top Canadian companies. He has had an extensive career managing growing technology companies upwards to several hundred people and has led international expansion into European and Pacific markets.

In addition to the appointment of David Outhwaite, dot com also announced the appointment of Michael D. Lipton to its board of directors. Lipton is a senior partner with Elkind, Lipton & Jacobs LLP and joins dot com's board of directors with a considerable record in advising both public and private sector clients on a wide range of land-based and Internet gaming industry issues across North America. He has also been engaged as counsel by the Ontario Provincial government and various provincial regulatory authorities on numerous administrative and public law matters. He will chair dotcom's Governance, Compliance and Compensation Committee.

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