European Interactive Gaming Expo & Conference Special Edition
Dear ${token1},
This past week has been chaotic to say the least. Thanks for your patience in waiting for the EIG special report. Even though the conference concluded a week and a half ago, the topics affect every one of us. Read on...
Seriously yours,
Bryan
Can't read this newsletter in HTML? Click here (or copy and paste this link into your browser): http://www.casinomeister.com/newsletter.php#skip for the bitchin' online version.
EIG 2006 Barcelona
Angry Spaniards
I've been told - by former employees of Lufthansa, that it was an unofficial policy that required the flight stewards to be gay. I never gave it much thought, since it seemed like most of them were - not that there is anything wrong with this - it's merely an observation, and it's something I think all Lufthansa flyers accept. It's just they way things are at Lufthansa.
Well, one of our flights was cancelled flying to Barcelona. We ended up on Iberian airlines flying from Frankfurt - and there were two stewards on board. They didn't look gay, they looked like they were pissed - "angry" for you Brits - and I think I figured out why. These two guys were probably Spanish machos who trained for this job so they could meet hot stewardesses. Well there weren't any on board. It was just them. This explained the crappy service.
And this was a prelude to the rest of the Iberia experience - lost luggage (from Frankfurt?). My wife and I learned that you should always pack a toothbrush, toothpaste, and a change of socks and underwear in your carry on. At least the airline gave us an overnight bag to compensate for this - and it even included a white t-shirt and underwear (for the guy). Great, but white jockey shorts really aren't "me".
Our hotel was situated in the Gothic center of Barcelona - a fascinating and beautiful place. Massive buildings and a wealth of history mark this city. We stayed almost directly across from the great Cathedral of Santa Eulalia, and directly in the pedestrian zone - a sprawling maze of narrow streets lined with boutiques and Tapa bars. This is probably one of the best cities we've stayed in.
Yet, I was on a mission: the European I-Gaming Congress and Expo was my primary focus, to collect information and to meet operators who can assist me in doing what I do at Casinomeister. So far, this EIG (this was my fourth one) turned out to be the most productive and informative. This probably had to do with the current atmosphere of freaky US laws which have turned the I-gaming industry on its head.
I could describe the excellent tapas my wife and I ate at a smokey crowded Tapa bar (damn smokers), but I'm going to cut to the chase an deliver the meat of this newsletter: what happened at the EIG.
For those of you who don't know what I'm talking about, the EIG is a conference that is held every year in Europe, usually in Barcelona, Spain or in Nice, France. You can search the Newsletter Archives for previous years' reviews. At the moment, I'm focusing on this year. The EIG attracts casino operators, software providers, law firms, cash processors, affiliate managers, and just about everyone who is interested in this online gaming industry. Attendance this year was crucial for many because most I-gaming businesses need to focus on the European market - the US market is pretty much out of the picture for now.
Why do I go? I go because of you, my dear ${token2}. I go to collect information and to try and meet with operators who are either a) listed at Casinomeister in the "Accredited Casino" section or b) meet with operators that are listed in our "Rogue" section. The more contacts I have, the easier it is for me to solve player issues and to provide players and others with first hand experiences with industry matters. Plus the food is usually pretty good. This year was no exception.
Day One - No Cheerleaders Here I was still in my airport clothes - t-shirt and jeans - and no one seemed to notice the difference. At least I didn't smell like sweat, and I was clean shaven thanks to Iberia airlines overnight kit. Woo-hoo! But it sucked that I had to wear the same socks.
In the lobby, one of the first persons I ran into was Andrew Beveridge from eCOGRA and we briefly discussed our concerns about what online casinos are now facing. As most of you are aware, the "Unlawful Internet Gambling Enforcement Act" was on the verge of being signed, and even though this pertains to US gamblers, it affects us all. Entities such as Casinomeister and eCOGRA become even more important to the online player - especially the American ones. I made the decision during the conference not to offer American based players any advertising at Casinomeister. More on this later.
I mentioned my pending decision to a number of people while I was there, and most nodded their heads in understanding. I almost expected a cheerleader procession at the conference, "It ain't nothin'. Don't worry 'bout it! There are ways to tackle the US market. Rah-rah sis-boom-bah!" But no one felt this way. In fact, the feeling I had from most everyone was acceptance and awareness that one must move on.
That is of course if one is remain within the confines of the law - US law, that is.
So far, the conference was about 1000 strong. The opening remarks made by Sue Schneider were to the point and poignant - "Take a deep breath everybody, and reflect what is going on. This industry has always been under siege since it's an emerging entertainment form. Governments need to grapple with this; companies need to grapple with this. This industry is not for the faint-hearted."
At this point she presented a short video of BETonSPORTS' David Carruthers who greeted us from the living room of his new home stateside. He's there under house arrest. He stressed the importance of leadership, teamwork, and transparency. He stated that he looked forward with confidence and went on "it's in times like these when you find out who your friends really are." You could sense the assurance and determination, but you could see the pain in his eyes.
Norbert Teufelberger from bwin spoke about how the new legislation is going to divide this industry. That this will push the public companies to get more involved in lobbying and start looking at less restrictive governments. It also clears the way for dodgy operations. I wholeheartedly agree.
It was stressed that the industry needs to band together and do things in a legal manner. If you go underground, you will be banned from civilization forever. And that's a fact. Cross hairs are pointed in this direction, and if you have your head in the sand you may be in for a serious wake-up call.
From there I made it to the Exposition Hall where booths were awaiting visitations and refreshments were being served. Guess what most everyone was talking about?
Interesting note: 3W Graphics had a booth set up. It was a first for them. They are a Moscow based software provider which had similarities between some of their slots and Microgaming's. In fact, some of the games were exact copies. But this was a few years ago, and apparently Microgaming and 3W Graphics have worked this out. I spoke with them about this and it's pretty much old history. Some of their designers ended up working for MGS years ago. So they say.
That evening was pleasantly spent having cocktails and drinks at the "Pioneer Reception" at the Hotel Arts (Ritz Carlton) by the Port Olympic. It was a who's who of online gambling, and just like the title implied - "pioneers" of the industry were there. I was flattered to be considered one of them - of course it may have been that the River City Group just wanted me to write about it. Regardless, it was absolutely marvelous with real Flamenco dancers, fantastic food and great company. I was honored to have a seat next to "Girlie-boy" Caselli who had actually cut some of his hair off. He was still able to put it in a pony tail. The evening ended with a move to the hotel bar. My wife and I braved a downpour as well as we headed back to the hotel. Tomorrow was to be a busy day.
Day Two - Proof is in the Pudding
Let's cut to the chase. One of the highlights of "Day Two" was my sit-down pow wow session with the Virtual Casino Group. Over the past several years, the Virtual Casino group has been in and out of the rogue section. The problems they have had have stemmed from really a number of things. One thing (that has been a subject of a number of conversations) is that in the early days their staff was given free reign more or less to do whatever they wanted to bring in new players. Not good - since this clearly can lead to player abuse. Another thing is that this company grew way too fast thus they were not able to effectively handle any player issues. And this pretty much led to chaos. And lastly, they had some managers who were allocating bonuses to players without proper authorization. This of course leads to accusations of fraud and evilness. In short - a rogue operation.
So what does one do at this point to improve the situation? One lays all the cards on the table - face up. Joining us was their business consultant (who I know very well from many other activities) had been counseling them on what needs to happen in order to clean up their business. They shared with me their "roadmap" on customer support and public relations, which I given to take home with me. This included a policy and a break down on how manager bonuses are awarded, in addition to this they have outlined how customer issues are going to be dealt with.
Giving these documents to me - they asked me to browse them at my convenience - which I have. It looks as though they finally have a plan. They want to be placed back on "probation" again. I have no problem doing this as long as any current issues are taken care of. If you, my dear reader, have a problem with Virtual Casino (to include Cirrus Casino, Prism, Coolcat, etc.) or know of anyone who has a legitimate problem, please let me know via Pitch a Bitch.
That afternoon - one of the highlights was the panel discussion on "Legal Concerns for US-Facing Operations" Frank Catania moderated a panel of experts which included D. Brett Hale, VP of the American Gaming Association, J. Daniel Walsh from Greenberg Traurig , Mark Spragg - Partner, Jeffrey Green Russell UK, and Mark Balestra, VP of publishing - River City Group. The panel discussed a number of things - one was the ease the US has to extradite anyone from the UK. The US can merely make a claim that the person has broken a law, and the UK cannot challenge whether or not an offense had been committed. They are obligated to extradite the individual. Scary stuff - it seems as though human rights are just tossed to the wind and citizens of the UK are subject to US law.
Most European nations require that probable cause is presented with the extradition. The UK doesn't require this.
That evening brought us the EIG cocktail reception at the Carpe Diem Lounge Club - what a nice venue. We arrived rather early before it got too crowded and to my pleasant surprise, they had waves of hor d'erves - and all you could eat Sushi. I was able to make the rounds and spoke with a number of operators about their take on the entire situation. Many of them were planning to offer their games to US players, but most were banning 11 states that have explicit laws against online gambling.
At this point, I had already made the decision that I would be dropping all casinos that still take on American players. I had already looked at this thoroughly - and with legal council as well, but there are too many risks involved when dealing with American based players. More on this later.
Day Three - Adversity the Mother of Opportunity?
Well it was the grand finale. The CEO panel was well worth the wait. Sue Snyder moderated the panel which included Mitch Garber, CEO of Party Gaming, Jon Anderson of 888.com, Eduardo Agami of SBG Global, and Lewis Rose of CryptoLogic. Mitch Garber began by stating "Private companies will have to do more - public companies have done their share - the people who have been indicted or arrested are from public companies - so all of the public companies are out of the US...It's brave of the private company operators to think that they aren't next. It's a very serious criminal law. It has to be taken seriously - we'll see what happens in the private industry, but I suspect that people are way too overconfident on their ability to interpret the law or in fact that the law hasn't changed. The law changed significantly."
Eduardo Agami of SBG Global picked up the discussion and mentioned that the economies of eight jurisdictions from around the world are directly affected by this bill. Costa Rica most significantly. "All these jurisdictions create an international opinion. The international community has to say that there are too many jurisdictions - too many companies and economies that are affected by this 'offhand - in a vacuum attitude of the US' of disregard...We've been too accustomed to this attitude and are complacent about it."
He stressed the fact that it is important for the companies to unite and consolidate in order to continue doing business. He realized that there is a risk involved in this, but they are willing to take this risk. They've gone too far to just walk away from it now, and many people in Costa Rica feel the same way.
Overall, it was one of the better panel discussions that I've sat through. It was extremely topical and crucial to the times and the situation that all of us in the online gaming world are in. Whether you are a player, an affiliate webmaster, or an operator, these are changing times.
And the conference ended, everyone seemed to slip away to wherever they were headed, an airport, a local bar, or off to some meeting. I headed to the Hilton next door hoping to catch anyone I needed to catch before they left. I caught Jon Anderson as he was slipping away. 888.com has been in the rogue section for a number of months. This stemmed from their Cassava office directly spamming blogs and message boards with thousands of links that redirect to 888.com. What I discovered was that most of these sites have been dead for two years or so, and that there seemed to be no evidence of this happening since. Mr. Anderson was extremely concerned about this and had no idea why no one had contacted me.
I'm satisfied to consider this water under the bridge, and I'll just move on. I'm positive it will never happen again.
So now I'm back home. And since then there has been some major changes at Casinomeister. I made the announcement that due to the risks and uncertainties of the American situation, casinos that accept bets from US based players will not be listed at Casinomeister. I then removed these casinos, leaving only casinos that ban players from the US (about 35 of them). This was step one. Once I made the announcement, I was able to back up - regroup - and turn off all banners and commercial text links to my US based visitors. So my statement is upgraded to - I will not provide advertising to US players. At the moment, Casinomeister is an ad-free site for the US visitor. Why? Because I don't have my head in the sand. The "Accredited" section remains the same, but if you are in the States - there is nothing being promoted. What a deal! If you're in the US and wonder which casinos are considered "accredited" there is a list here: http://www.casinomeister.com/accredited_casino_list.php
For webmasters who are living in the states and are promoting casinos and pokerrooms to Americans, I would advise to proceed with caution. If you are relying on free legal advice that you may get in forums or whatnot, you're getting what you are paying for. I would suggest to get your ducks in order and seek legal advice. If you wish for me to refer you to someone, just pop me an email.
So for my American visitors, the face of Casinomeister will be changing a little, but instead of offering you 200% bonuses at King Neptunes, I'll be giving you the tools to try to get your country back. Stay tuned for this.
I want to thank everyone at the River City Group and ATE for another great success. This industry couldn't survive without you.
It's never too late to voice your opinion. Some of these politicians need to be shown their rightful place.
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European Interactive Gaming Expo & Conference Special Edition
