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2006/12/07
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As the Florida Legislature sprints into action on Tuesday for its annual two-month session, lawmakers will face the politically volatile task of redrawing the electoral map (sure to attract a court challenge) and devising new ways to plug a $2 billion deficit in the state budget. But it is the “do we, don’t we” battle over whether to allow resort casinos into the state that has the state capital’s adrenaline pumping. The bill, which proposes opening the door to three large casinos in Florida, is expected to be one of the few major nonbudget-related pieces of legislation to be voted on this busy session.
With a few powerful Republican lawmakers either opposed to the bill or skeptical of its benefits and the session packed with other business, odds that resort casinos will be setting down stakes this year in South Florida, where major casino companies have shown the most interest, are getting longer. Some lawmakers worry that casinos will do more harm than good by tarnishing Florida’s wholesome beach-and-theme-park image, a position espoused by the influential Florida Chamber of Commerce, the Florida Restaurant and Lodging Association and Walt Disney World.
The first test will be on Monday, a day before the session’s official opening, when the bill, which was revamped last week to try to garner more support, is scheduled to face an initial Senate committee vote. The biggest change made to the bill involves giving voters a say on the casino issue, a tactic that could make it more difficult for lawmakers to oppose it. A referendum would let voters decide whether to expand gambling in their county and allow all counties to compete for one of the three casino permits. The casinos would have to invest at least $2 billion to qualify.
“Let the voters decide if they want or don’t want it,” said the Senate bill’s author, State Senator Ellyn Bogdanoff, a Broward County Republican.
State Senator Dennis L. Jones, the Republican chairman of the Senate’s Committee on Regulated Industries, which is to vote on the bill on Monday, said Friday that he would support it. Ms. Bogdanoff, he said, had addressed most of the committee’s concerns in her revised bill. Mr. Jones also pointed out that while the bill would expand casino gambling, it would also pave the way for much-needed large convention centers and hotels in the state.
“We have cut the budget in the last three years, and when they get up there and realize we are another $2 billion short, you get the feeling maybe the time has come,” Mr. Jones said. “We need some new revenue.”
But one of Ms. Bogdanoff’s chief opponents is State Senator John Thrasher, a Republican from north Florida who is the chairman of the Senate Rules Committee, the bill’s final stop before it reaches the Senate floor. He has made it clear that he believes the bill would harm the state and could dissuade families from visiting, a position taken by most conservatives in the Legislature. Republicans hold a supermajority in the Florida House and Senate.
“I do not believe we ought to be expanding gaming,” Mr. Thrasher said. “I think we have enough gaming in the state of Florida. We are not known as a gaming state, in spite of what some folks have said. We are known as a tourist-oriented, family-friendly tourism state. And to change the brand of Florida at this point to a gaming state, to me, is going in the wrong direction.”
Ms. Bogdanoff said she had received assurances from the Senate president, Mike Haridopolos, that if the bill cleared the committees, he would allow an up-or-down vote on the Senate floor.
Some Democratic leaders said they were concerned about allowing private casinos in South Florida. They said they worried that the bill was moving too quickly.
“I think that the bill has serious problems,” said State Senator Nan H. Rich, the Democratic leader, who sits on the committee scheduled to vote Monday.
Ms. Rich said she was pleased that a change in the bill would give South Florida’s parimutuels — its jai alai frontons and racetracks (they are allowed slot machines) — the same 10 percent tax rate as the proposed casinos. But she said she worried about the $1 billion in state revenue from the Seminole Indian casinos in Florida, which would be lost over five years, if private casinos were approved. Allowing private casinos would breach a compact that the state signed with the Seminoles, and the tribe would no longer owe the money.
Her biggest concerns, though, are broader. “I have issues with the concept of that much gaming,” Ms. Rich said. “Those three destination resorts change the face of South Florida, particularly Dade County, which is where I grew up.” Adding that the bill should not be rushed, she said, “We don’t have the answers yet to what the true impact of this will be economically and to the quality of life.”
But Ms. Bogdanoff and her allies, including the Greater Miami Chamber of Commerce (it supports the bill, with certain conditions) and Florida’s construction industry, said the Legislature was not facing the fact that Florida already has lots of gambling.
Bringing high-end resort casinos will attract new tourists and create thousands of jobs at a time when the state’s unemployment rate is 10 percent, Ms. Bogandoff said. Also, she said, a gambling commission would serve as a vigilant overseer of gambling rules and laws.
To sweeten the pot for both sides, Ms. Bogdanoff added measures to regulate so-called Internet sweepstakes cafes, ban new parimutuel permits, lower the tax rate for casinos and parimutuels to 10 percent and compel casinos to put at least $250,000 into a fund to help compulsive gamblers. “I’m trying not to give away the house just because I am trying politically to get their support,” she said.
The Las Vegas Sands Corporation and other gambling companies have been scouting locations in South Florida. The Genting Group, a Malaysian company, has bought bayfront property in downtown Miami to build a re
With a few powerful Republican lawmakers either opposed to the bill or skeptical of its benefits and the session packed with other business, odds that resort casinos will be setting down stakes this year in South Florida, where major casino companies have shown the most interest, are getting longer. Some lawmakers worry that casinos will do more harm than good by tarnishing Florida’s wholesome beach-and-theme-park image, a position espoused by the influential Florida Chamber of Commerce, the Florida Restaurant and Lodging Association and Walt Disney World.
The first test will be on Monday, a day before the session’s official opening, when the bill, which was revamped last week to try to garner more support, is scheduled to face an initial Senate committee vote. The biggest change made to the bill involves giving voters a say on the casino issue, a tactic that could make it more difficult for lawmakers to oppose it. A referendum would let voters decide whether to expand gambling in their county and allow all counties to compete for one of the three casino permits. The casinos would have to invest at least $2 billion to qualify.
“Let the voters decide if they want or don’t want it,” said the Senate bill’s author, State Senator Ellyn Bogdanoff, a Broward County Republican.
State Senator Dennis L. Jones, the Republican chairman of the Senate’s Committee on Regulated Industries, which is to vote on the bill on Monday, said Friday that he would support it. Ms. Bogdanoff, he said, had addressed most of the committee’s concerns in her revised bill. Mr. Jones also pointed out that while the bill would expand casino gambling, it would also pave the way for much-needed large convention centers and hotels in the state.
“We have cut the budget in the last three years, and when they get up there and realize we are another $2 billion short, you get the feeling maybe the time has come,” Mr. Jones said. “We need some new revenue.”
But one of Ms. Bogdanoff’s chief opponents is State Senator John Thrasher, a Republican from north Florida who is the chairman of the Senate Rules Committee, the bill’s final stop before it reaches the Senate floor. He has made it clear that he believes the bill would harm the state and could dissuade families from visiting, a position taken by most conservatives in the Legislature. Republicans hold a supermajority in the Florida House and Senate.
“I do not believe we ought to be expanding gaming,” Mr. Thrasher said. “I think we have enough gaming in the state of Florida. We are not known as a gaming state, in spite of what some folks have said. We are known as a tourist-oriented, family-friendly tourism state. And to change the brand of Florida at this point to a gaming state, to me, is going in the wrong direction.”
Ms. Bogdanoff said she had received assurances from the Senate president, Mike Haridopolos, that if the bill cleared the committees, he would allow an up-or-down vote on the Senate floor.
Some Democratic leaders said they were concerned about allowing private casinos in South Florida. They said they worried that the bill was moving too quickly.
“I think that the bill has serious problems,” said State Senator Nan H. Rich, the Democratic leader, who sits on the committee scheduled to vote Monday.
Ms. Rich said she was pleased that a change in the bill would give South Florida’s parimutuels — its jai alai frontons and racetracks (they are allowed slot machines) — the same 10 percent tax rate as the proposed casinos. But she said she worried about the $1 billion in state revenue from the Seminole Indian casinos in Florida, which would be lost over five years, if private casinos were approved. Allowing private casinos would breach a compact that the state signed with the Seminoles, and the tribe would no longer owe the money.
Her biggest concerns, though, are broader. “I have issues with the concept of that much gaming,” Ms. Rich said. “Those three destination resorts change the face of South Florida, particularly Dade County, which is where I grew up.” Adding that the bill should not be rushed, she said, “We don’t have the answers yet to what the true impact of this will be economically and to the quality of life.”
But Ms. Bogdanoff and her allies, including the Greater Miami Chamber of Commerce (it supports the bill, with certain conditions) and Florida’s construction industry, said the Legislature was not facing the fact that Florida already has lots of gambling.
Bringing high-end resort casinos will attract new tourists and create thousands of jobs at a time when the state’s unemployment rate is 10 percent, Ms. Bogandoff said. Also, she said, a gambling commission would serve as a vigilant overseer of gambling rules and laws.
To sweeten the pot for both sides, Ms. Bogdanoff added measures to regulate so-called Internet sweepstakes cafes, ban new parimutuel permits, lower the tax rate for casinos and parimutuels to 10 percent and compel casinos to put at least $250,000 into a fund to help compulsive gamblers. “I’m trying not to give away the house just because I am trying politically to get their support,” she said.
The Las Vegas Sands Corporation and other gambling companies have been scouting locations in South Florida. The Genting Group, a Malaysian company, has bought bayfront property in downtown Miami to build a re
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2006/12/07
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29893
The progress in the European jurisdiction for the liberalization of online gambling rules has been slow but steady. Spain has delayed the introduction of legal online gambling but only for a short while. Spain is Europe’s third largest economy so operators are eager to be accepted for a Spanish license.
In Denmark however the action has begun and companies are announcing the launch of their offerings with huge sign up bonuses and deals. Recently Bwin.party.digital Entertainment made it known that its online poker and casino has gone live in Denmark for Danske Licens Spil (‘DLS’), a wholly-owned subsidiary of former monopoly Danske Spil A/S.
The Danske Spil Group represents one of the largest betting and gaming organizations in Europe and is eighty percent owned by the Danish Government, the other twenty percent is split by the Sports Confederation of Denmark and Danish Gymnastics and Sports Associations. The online betting industry in Denmark has over a half a million registered customers to date. The Danske Spil Group offers the national lottery, gaming machines, instant, and number games.
Jim Ryan and Norbert Teufelberger, who are Co-chief Executive Officers of Bwin.party commented proudly on the launch, “Building on our recent announcement regarding deals with both MGM and Boyd in the US market, this is another important milestone in the execution of our stated strategy that is focused on securing leadership positions in regulated and to-be-regulated markets. We are delighted that DLS has recognized our expertise and high standards of business practice and we look forward to building a market-leading customer offer for the Danish consumer.”
Jens Aalose, Chief Executive Officer at Danske Licens Spil, also commented on the arrangement, "With some of the world’s leading products in online poker and casino as well as a large international customer base, Bwin.party was the obvious choice for DLS. Combining this with Danske Spil’s unique and strong position in the Danish market I am confident that we will deliver a highly attractive customer experience to players in Denmark."
In Denmark however the action has begun and companies are announcing the launch of their offerings with huge sign up bonuses and deals. Recently Bwin.party.digital Entertainment made it known that its online poker and casino has gone live in Denmark for Danske Licens Spil (‘DLS’), a wholly-owned subsidiary of former monopoly Danske Spil A/S.
The Danske Spil Group represents one of the largest betting and gaming organizations in Europe and is eighty percent owned by the Danish Government, the other twenty percent is split by the Sports Confederation of Denmark and Danish Gymnastics and Sports Associations. The online betting industry in Denmark has over a half a million registered customers to date. The Danske Spil Group offers the national lottery, gaming machines, instant, and number games.
Jim Ryan and Norbert Teufelberger, who are Co-chief Executive Officers of Bwin.party commented proudly on the launch, “Building on our recent announcement regarding deals with both MGM and Boyd in the US market, this is another important milestone in the execution of our stated strategy that is focused on securing leadership positions in regulated and to-be-regulated markets. We are delighted that DLS has recognized our expertise and high standards of business practice and we look forward to building a market-leading customer offer for the Danish consumer.”
Jens Aalose, Chief Executive Officer at Danske Licens Spil, also commented on the arrangement, "With some of the world’s leading products in online poker and casino as well as a large international customer base, Bwin.party was the obvious choice for DLS. Combining this with Danske Spil’s unique and strong position in the Danish market I am confident that we will deliver a highly attractive customer experience to players in Denmark."
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2006/12/07
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29893
The doors have been flung open for states to determine their own online gambling laws, with the recent clarification of the Wire Act of 1961, which forbade the transmission of bets through technology.
Until now, federal authorities have cracked down on internet gambling of all kinds, believing they were operating within the jurisdiction of the Wire Act. As a result, most online casinos and gaming sites moved their business to off-shore companies -- including many in the UK.
Michael Charalambous, Managing Director of LiveCasinos.co.uk, the informational live casino website site, said, "this is big news for gambling companies based in the States, who previously had their business restricted to traditional casinos... 2012 will be the year of online gaming in America".
Even big, fairly innocuous forms of gambling like state lotteries have previously been at risk of prosecution under the previous understanding of the law. Now these, along with Indian casinos, and traditional casino operators will be able to expand their operations into the online arena -- a luxury that British firms have never had to go without.
Which states opt to legalise online gambling remains to be seen. But crucially, any new laws will only apply to citizens residing within the state passing them. If Oregon passes legislation permitting online casino games, any website offering the service must be based within Oregon, as must all patrons of the website.
The shock announcement will test the existing, conventional casinos to their limits. Charalambous said: "To avoid opportunistic web entrepreneurs stealing a march on them, casino operators are going to have to be ready to migrate their brand online... and fast. If the existing stakeholders in current conventional casinos, like the many native American casino operators who have run businesses exempt from the gambling laws, can remain major stakeholders in the online world, then there will be no threat to their business. Even a drop-off in conventional casino visits will translate into a pickup of online business".
Nevertheless, there are sure to be a glut of new online casinos and gaming sites springing up over the next year, and the competition can only be good for business. Remember to gamble safely and sensibly online and always use a reputable firm with a secure website, such as LiveCasinos.co.uk which offer information on top rated live casinos and live roulette, live blackjack and live baccarat to ensure your online gaming experience is a safe one.
Until now, federal authorities have cracked down on internet gambling of all kinds, believing they were operating within the jurisdiction of the Wire Act. As a result, most online casinos and gaming sites moved their business to off-shore companies -- including many in the UK.
Michael Charalambous, Managing Director of LiveCasinos.co.uk, the informational live casino website site, said, "this is big news for gambling companies based in the States, who previously had their business restricted to traditional casinos... 2012 will be the year of online gaming in America".
Even big, fairly innocuous forms of gambling like state lotteries have previously been at risk of prosecution under the previous understanding of the law. Now these, along with Indian casinos, and traditional casino operators will be able to expand their operations into the online arena -- a luxury that British firms have never had to go without.
Which states opt to legalise online gambling remains to be seen. But crucially, any new laws will only apply to citizens residing within the state passing them. If Oregon passes legislation permitting online casino games, any website offering the service must be based within Oregon, as must all patrons of the website.
The shock announcement will test the existing, conventional casinos to their limits. Charalambous said: "To avoid opportunistic web entrepreneurs stealing a march on them, casino operators are going to have to be ready to migrate their brand online... and fast. If the existing stakeholders in current conventional casinos, like the many native American casino operators who have run businesses exempt from the gambling laws, can remain major stakeholders in the online world, then there will be no threat to their business. Even a drop-off in conventional casino visits will translate into a pickup of online business".
Nevertheless, there are sure to be a glut of new online casinos and gaming sites springing up over the next year, and the competition can only be good for business. Remember to gamble safely and sensibly online and always use a reputable firm with a secure website, such as LiveCasinos.co.uk which offer information on top rated live casinos and live roulette, live blackjack and live baccarat to ensure your online gaming experience is a safe one.
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2006/12/07
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The Indian tribe that operates Mohegan Sun Casino in Montville wants a new deal with the state if Gov. Dannel P. Malloy and legislators allow online gambling in Connecticut.
“We believe that any new law that would allow Internet gambling here would require a separate agreement with the state, and for that reason, I have been in discussions with the governor’s office,” Bruce “Two Dogs” Bozsum, the Mohegan tribe’s chairman, said last week.
The Mohegans and the Mashantucket Pequots, the tribe that operates Foxwoods Resort Casino in Ledyard, have a compact with the state that gives them exclusive gambling rights, with the exception of lottery games. In exchange, the tribes pay the state 25 percent of the revenue they receive from video slot machines.
Last year, that revenue added up to about $360 million, or just under 2 percent of the entire state budget. The amount topped $400 million before the 2008 recession that took a big bite out of casino profits.
Malloy and lawmakers are considering expanding gambling amid looming casino competition in Massachusetts and New York and a change in federal policy that allows some online gambling. Malloy has been vague about his plans, but has said he’s working with the tribes to ensure they’re part of any deal.
Lt. Gov. Nancy Wyman heads an administration task force on gambling issues.
“This issue has certainly been part of discussions I have had with the governor and the tribes in recent weeks regarding gaming, but we have reached no conclusions on the matter,” Wyman said in response to Bozsum’s call for a new agreement. Wyman didn’t comment further.
Whether expanding gambling and lottery games online would affect the state’s deal with the tribes is a question that has vexed lawmakers and lawyers in recent years. In 1993, then-Gov. Lowell P. Weicker Jr. and the Mashantucket Pequots signed the gambling compact, which later was expanded to include the Mohegan Sun Casino. That agreement doesn’t account for online gambling, however.
Bozsum was unclear as to whether he believes online gambling would violate the contract.
“The compact between the Mohegan tribe and the state of Connecticut would not be directly impacted by Internet gambling here,” he said. “However, the compact does give the tribe the exclusive right to casino games in Connecticut.”
A spokeswoman for Foxwoods didn’t return a call for comment.
State officials have warned against efforts in Connecticut to start a state-sponsored Keno game or to move some aspects of the state lottery online, for fear such moves would violate the contract.
Attorney General George C. Jepsen, a Democrat, warned that the state could risk violating the compact when he opposed a bill before the legislature in March that would have allowed the Connecticut Lottery Corp. to offer “interactive online lottery games, including online video lottery games.”
Jepsen pointed to a clause in the compact that includes “video facsimiles” of casino games as items reserved for the tribes. It was unclear whether an interactive online lottery would fall under that definition.
“A prudent and reasonable course would be to consult with the tribes to determine whether they have any concerns,” and then seek to change the compact to ensure the state complied with the agreement, Jepsen wrote. The bill died in the legislature’s Public Safety and Security Committee, which oversees gambling.
The issue also surfaced in 2009, when then-Gov. M. Jodi Rell proposed Keno. The question was whether Keno was more like a lottery or like gambling. Keno involves players guessing several numbers and trying to match them with a list generated randomly by a computer.
“Concluding whether the proposed Keno is a lottery game would be more a guess than a legal analysis,” former Attorney General Richard Blumenthal said at the time. But he did warn the governor that launching Keno could jeopardize the state’s arrangement with the tribes.
“We believe that any new law that would allow Internet gambling here would require a separate agreement with the state, and for that reason, I have been in discussions with the governor’s office,” Bruce “Two Dogs” Bozsum, the Mohegan tribe’s chairman, said last week.
The Mohegans and the Mashantucket Pequots, the tribe that operates Foxwoods Resort Casino in Ledyard, have a compact with the state that gives them exclusive gambling rights, with the exception of lottery games. In exchange, the tribes pay the state 25 percent of the revenue they receive from video slot machines.
Last year, that revenue added up to about $360 million, or just under 2 percent of the entire state budget. The amount topped $400 million before the 2008 recession that took a big bite out of casino profits.
Malloy and lawmakers are considering expanding gambling amid looming casino competition in Massachusetts and New York and a change in federal policy that allows some online gambling. Malloy has been vague about his plans, but has said he’s working with the tribes to ensure they’re part of any deal.
Lt. Gov. Nancy Wyman heads an administration task force on gambling issues.
“This issue has certainly been part of discussions I have had with the governor and the tribes in recent weeks regarding gaming, but we have reached no conclusions on the matter,” Wyman said in response to Bozsum’s call for a new agreement. Wyman didn’t comment further.
Whether expanding gambling and lottery games online would affect the state’s deal with the tribes is a question that has vexed lawmakers and lawyers in recent years. In 1993, then-Gov. Lowell P. Weicker Jr. and the Mashantucket Pequots signed the gambling compact, which later was expanded to include the Mohegan Sun Casino. That agreement doesn’t account for online gambling, however.
Bozsum was unclear as to whether he believes online gambling would violate the contract.
“The compact between the Mohegan tribe and the state of Connecticut would not be directly impacted by Internet gambling here,” he said. “However, the compact does give the tribe the exclusive right to casino games in Connecticut.”
A spokeswoman for Foxwoods didn’t return a call for comment.
State officials have warned against efforts in Connecticut to start a state-sponsored Keno game or to move some aspects of the state lottery online, for fear such moves would violate the contract.
Attorney General George C. Jepsen, a Democrat, warned that the state could risk violating the compact when he opposed a bill before the legislature in March that would have allowed the Connecticut Lottery Corp. to offer “interactive online lottery games, including online video lottery games.”
Jepsen pointed to a clause in the compact that includes “video facsimiles” of casino games as items reserved for the tribes. It was unclear whether an interactive online lottery would fall under that definition.
“A prudent and reasonable course would be to consult with the tribes to determine whether they have any concerns,” and then seek to change the compact to ensure the state complied with the agreement, Jepsen wrote. The bill died in the legislature’s Public Safety and Security Committee, which oversees gambling.
The issue also surfaced in 2009, when then-Gov. M. Jodi Rell proposed Keno. The question was whether Keno was more like a lottery or like gambling. Keno involves players guessing several numbers and trying to match them with a list generated randomly by a computer.
“Concluding whether the proposed Keno is a lottery game would be more a guess than a legal analysis,” former Attorney General Richard Blumenthal said at the time. But he did warn the governor that launching Keno could jeopardize the state’s arrangement with the tribes.
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2006/12/07
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Technology entrepreneur Russell Carter has welcomed the recent U.S. Department of Justice (DOJ) decision approving intrastate gaming and the Nevada Gaming Control Board’s (NGC😎 announcement that in February 2012 it will start accepting applications to offer online poker services to players located within state borders. By 2015, industry analyst firm IDC projects that more U.S. residents will access the Internet via mobile devices than via landline connectivity.
Mr. Carter is the owner of U.S. Patents 7,510,474 and 7,828,654 a “Location Based Mobile Wagering System” and a “Location Based Gaming System.” These patents, which will be required by all regulatory-compliant online and mobile gaming operators in the United States, cover poker, lottery, sports betting, casino and massive multi-player online gaming (MMOG), with both physical and virtual currency. Carter is in discussions with a number of potential operators of lotteries, online gambling services in Nevada and social networking companies regarding his intellectual property.
With priority date of April 2001 and a continuation on file, the provisional status will allow additional patent filings while maintaining the original 2001 priority date.
“This is great news for the many thousands of U.S. residents who would like to play mobile lottery and poker without breaking the law,” said Russell Carter. “It’s not just poker players who will benefit; by legalizing and taxing online poker within state borders,” he continued. “Nevada and other U.S. states will be able to raise billions of dollars at a time when budgets are being squeezed.”
With Goldman Sachs estimating that the U.S. market for online casinos and poker could be worth $12 billion, and individual states, like Nevada, now beginning to liberalize, both U.S. and overseas gaming operators are starting to execute their market entry strategies. For example, in April 2011 the UK’s William Hill PLC announced that it had signed an agreement to acquire American Wagering Inc. (AWI), which operates mobile sports betting services under the Leroy’s Brand.
“While state lotteries can now reap the rewards of an additional $3 billion in lottery revenue for regulatory compliant online operators, so will be the downside for any who fail to meet the stringent legal, regulatory and technical standards. This includes making sure that online/mobile gambling services are not made available to anyone located outside the participating state borders, where they remain illegal. Taking a bet from a player located outside a legal jurisdiction could mean losing your license,” added Carter.
About Russell Carter
Formerly with IBM, in July 2009, Carter founded an early stage start-up, Interactive Mobile Broadband Corp., with a mission to help state and other legal remote gambling operators validate the ages and locations of prospective customers.
Media Contact:
Russell Carter
E: rcarter(at)aunwired(dot)com
T: +1 480 203 4577
Mr. Carter is the owner of U.S. Patents 7,510,474 and 7,828,654 a “Location Based Mobile Wagering System” and a “Location Based Gaming System.” These patents, which will be required by all regulatory-compliant online and mobile gaming operators in the United States, cover poker, lottery, sports betting, casino and massive multi-player online gaming (MMOG), with both physical and virtual currency. Carter is in discussions with a number of potential operators of lotteries, online gambling services in Nevada and social networking companies regarding his intellectual property.
With priority date of April 2001 and a continuation on file, the provisional status will allow additional patent filings while maintaining the original 2001 priority date.
“This is great news for the many thousands of U.S. residents who would like to play mobile lottery and poker without breaking the law,” said Russell Carter. “It’s not just poker players who will benefit; by legalizing and taxing online poker within state borders,” he continued. “Nevada and other U.S. states will be able to raise billions of dollars at a time when budgets are being squeezed.”
With Goldman Sachs estimating that the U.S. market for online casinos and poker could be worth $12 billion, and individual states, like Nevada, now beginning to liberalize, both U.S. and overseas gaming operators are starting to execute their market entry strategies. For example, in April 2011 the UK’s William Hill PLC announced that it had signed an agreement to acquire American Wagering Inc. (AWI), which operates mobile sports betting services under the Leroy’s Brand.
“While state lotteries can now reap the rewards of an additional $3 billion in lottery revenue for regulatory compliant online operators, so will be the downside for any who fail to meet the stringent legal, regulatory and technical standards. This includes making sure that online/mobile gambling services are not made available to anyone located outside the participating state borders, where they remain illegal. Taking a bet from a player located outside a legal jurisdiction could mean losing your license,” added Carter.
About Russell Carter
Formerly with IBM, in July 2009, Carter founded an early stage start-up, Interactive Mobile Broadband Corp., with a mission to help state and other legal remote gambling operators validate the ages and locations of prospective customers.
Media Contact:
Russell Carter
E: rcarter(at)aunwired(dot)com
T: +1 480 203 4577
Join:
2006/12/07
Messages:
29893
* Ruling could set precedent on sponsorship deals
* Bwin says ruling goes against European law (Adds Bwin spokesman's comments)
A Portuguese court ruled against Bwin.party digital, the world's biggest listed online gaming company, saying it must remove all advertising and sponsorship from national sports competitions after labelling its activities illegal.
Monday's ruling, covering tax and regulatory issues, could set a precedent affecting sponsorship deals between other online gambling companies and sports clubs and associations.
Gilbraltar-based Betclic -- which pays to have its name on several Portuguese soccer teams' shirts, including Sporting Braga -- and London-listed Betfair are also active in the Portuguese market.
Bwin.party, formed by the merger of UK-based Partygaming and Austria's Bwin, has a 4 million euro ($5.09 million) sponsorship deal for the Portuguese soccer league cup, which is now in jeopardy.
"As of Monday, the Portuguese professional football league (LPFP) is obliged to remove all advertising that refers to Bwin," the LPFP said in a statement. It said the ruling was harmful to the national game and that it will appeal.
The court battle started in 2005 when the Portuguese Casino Association teamed up with national lottery operator Santa Casa to file a complaint about Bwin's activities.
They alleged Bwin has an unfair advantage because it is not taxed or subject to Portuguese gambling legislation.
Bwin said the court decision goes against European law.
"The court failed to take into account EU law. One cannot aggressively advertise and expand games on the one hand and keep foreign competition out on the other hand," said a Bwin spokesman.
A preliminary ruling last year deemed Bwin's activities illegal because Portugal does not recognise online gambling companies.
And a court in Porto enforced the immediate removal of all Bwin advertising as of Monday.
"We are happy with this decision, it was a positive one. We pay for extremely expensive licences so we want the state to combat illegal operators who have unfair advantages," said Artur Mateus, a manager of the Portuguese Casino Association.
"We will suspend all sponsorship and advertising," Bwin said in a statement.
"It is time for the state to legislate and tax online gambling instead of banning it. Regulating it is in the interest of the consumer, the economy and the state budget," Bwin's lawyer, Eduardo Serra Jorge, said. ($1 = 0.7865 euro)
* Bwin says ruling goes against European law (Adds Bwin spokesman's comments)
A Portuguese court ruled against Bwin.party digital, the world's biggest listed online gaming company, saying it must remove all advertising and sponsorship from national sports competitions after labelling its activities illegal.
Monday's ruling, covering tax and regulatory issues, could set a precedent affecting sponsorship deals between other online gambling companies and sports clubs and associations.
Gilbraltar-based Betclic -- which pays to have its name on several Portuguese soccer teams' shirts, including Sporting Braga -- and London-listed Betfair are also active in the Portuguese market.
Bwin.party, formed by the merger of UK-based Partygaming and Austria's Bwin, has a 4 million euro ($5.09 million) sponsorship deal for the Portuguese soccer league cup, which is now in jeopardy.
"As of Monday, the Portuguese professional football league (LPFP) is obliged to remove all advertising that refers to Bwin," the LPFP said in a statement. It said the ruling was harmful to the national game and that it will appeal.
The court battle started in 2005 when the Portuguese Casino Association teamed up with national lottery operator Santa Casa to file a complaint about Bwin's activities.
They alleged Bwin has an unfair advantage because it is not taxed or subject to Portuguese gambling legislation.
Bwin said the court decision goes against European law.
"The court failed to take into account EU law. One cannot aggressively advertise and expand games on the one hand and keep foreign competition out on the other hand," said a Bwin spokesman.
A preliminary ruling last year deemed Bwin's activities illegal because Portugal does not recognise online gambling companies.
And a court in Porto enforced the immediate removal of all Bwin advertising as of Monday.
"We are happy with this decision, it was a positive one. We pay for extremely expensive licences so we want the state to combat illegal operators who have unfair advantages," said Artur Mateus, a manager of the Portuguese Casino Association.
"We will suspend all sponsorship and advertising," Bwin said in a statement.
"It is time for the state to legislate and tax online gambling instead of banning it. Regulating it is in the interest of the consumer, the economy and the state budget," Bwin's lawyer, Eduardo Serra Jorge, said. ($1 = 0.7865 euro)
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2006/12/07
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A bill that would open the door to a multibillion-dollar expansion of Florida's gambling industry cleared its first hurdle in the southeastern U.S. state's legislature on Monday.
As put forward by its Republican sponsors in the Florida Senate and House, the bill would create a state agency called the Florida State Gaming Commission to license, regulate and enforce gambling throughout Florida.
The commission's initial responsibilities would include awarding three casino gambling licenses in south Florida's Miami-Dade and Broward counties, in return for an investment of at least $2 billion by each of the casino operators in Las Vegas-style hotel towers and glitzy resort complexes.
Successful applicants would be required to make a $50 million one-time license payment, with an annual renewal fee pegged at $2 million. They would also be subject to a 10-percent tax on gross gambling revenues.
State law now bars casinos from expanding beyond businesses or so-called pari-mutuels operated by the Seminole Indian tribe and selected racetracks and jai alai courts.
The Senate Regulated Industries Committee approved the bill by 7-3 in Monday's vote, after an amendment that would give voters final say on the casino issue through local referendums on whether to expand gambling in their counties.
Approval also came after another amendment that would allow pari-mutuels the right to operate full-fledged casino games at the same tax rates levied against the larger resort casinos.
Gambling titans led by the Las Vegas Sands Corp have been lobbying to persuade lawmakers to allow for full casino gambling at so-called "destination resorts" in Florida since the Seminoles won their right to offer blackjack, baccarat and other banked card games more than two years ago.
Anti-gambling sentiment runs strong in many parts of the state. Opponents including the Chamber of Commerce and Disney World, a leading magnet for tourism, say gambling threatens to tarnish Florida's "family-friendly" image.
But support for expanded gambling has been growing since Malaysia-based Genting Berhad, one of the biggest international casino developers, announced in May it was paying $236 million for a 14-acre piece of waterfront property in downtown Miami that currently houses the Miami Herald newspaper.
The cash-rich company, which controls casino resorts in Malaysia and Singapore, has held out promises of tens of thousands of new jobs if restrictions on gambling are loosened. It has also conjured up images of Miami becoming a sort of cross-roads of the gambling world, a palm-fringed playground for global high-rollers.
"We're pretty pleased with this 7-3 vote, it's a good start to get this thing going," Nick Iarossi, a Tallahassee-based lobbyist for the Las Vegas Sands, told Reuters shortly after the gambling bill cleared its initial legislative hurdle.
"Our goal is to get it though the committees and get it to a floor vote," he added, saying he hoped the bill would become law sometime during the current legislative session, which officially gets under way on Tuesday.
As put forward by its Republican sponsors in the Florida Senate and House, the bill would create a state agency called the Florida State Gaming Commission to license, regulate and enforce gambling throughout Florida.
The commission's initial responsibilities would include awarding three casino gambling licenses in south Florida's Miami-Dade and Broward counties, in return for an investment of at least $2 billion by each of the casino operators in Las Vegas-style hotel towers and glitzy resort complexes.
Successful applicants would be required to make a $50 million one-time license payment, with an annual renewal fee pegged at $2 million. They would also be subject to a 10-percent tax on gross gambling revenues.
State law now bars casinos from expanding beyond businesses or so-called pari-mutuels operated by the Seminole Indian tribe and selected racetracks and jai alai courts.
The Senate Regulated Industries Committee approved the bill by 7-3 in Monday's vote, after an amendment that would give voters final say on the casino issue through local referendums on whether to expand gambling in their counties.
Approval also came after another amendment that would allow pari-mutuels the right to operate full-fledged casino games at the same tax rates levied against the larger resort casinos.
Gambling titans led by the Las Vegas Sands Corp have been lobbying to persuade lawmakers to allow for full casino gambling at so-called "destination resorts" in Florida since the Seminoles won their right to offer blackjack, baccarat and other banked card games more than two years ago.
Anti-gambling sentiment runs strong in many parts of the state. Opponents including the Chamber of Commerce and Disney World, a leading magnet for tourism, say gambling threatens to tarnish Florida's "family-friendly" image.
But support for expanded gambling has been growing since Malaysia-based Genting Berhad, one of the biggest international casino developers, announced in May it was paying $236 million for a 14-acre piece of waterfront property in downtown Miami that currently houses the Miami Herald newspaper.
The cash-rich company, which controls casino resorts in Malaysia and Singapore, has held out promises of tens of thousands of new jobs if restrictions on gambling are loosened. It has also conjured up images of Miami becoming a sort of cross-roads of the gambling world, a palm-fringed playground for global high-rollers.
"We're pretty pleased with this 7-3 vote, it's a good start to get this thing going," Nick Iarossi, a Tallahassee-based lobbyist for the Las Vegas Sands, told Reuters shortly after the gambling bill cleared its initial legislative hurdle.
"Our goal is to get it though the committees and get it to a floor vote," he added, saying he hoped the bill would become law sometime during the current legislative session, which officially gets under way on Tuesday.
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2006/12/07
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As the Florida Legislative session begins today, two key issues are expected to take up the bulk of the lawmakers' attention – redistricting and gambling. Redistricting, which is always an intense and time-consuming process, is compounded by Amendment 5 & 6, which were approved by Florida voters in 2010 and require that districts are drawn in a compact manner that uses existing boundaries when possible. The process is expected to dominate the session and leaders have already warned that it will limit lawmakers' "floor time."
Outside of redistricting, the expansion of in-state casino gambling is expected to be the most controversial issue on the high-priority list. A bill sponsored by Rep. Erik Fresen (R-Miami) and Senator Ellyn Bogdanoff (R-Fort Lauderdale) would create a state gaming commission like those in Nevada and New Jersey. The commission would award licenses to three entities that would then be able to develop upscale resort casinos in both Miami-Dade and Broward counties.
There will also be an effort by gaming and resort interests to shape the playing field. The Las Vegas Sands Group is reportedly lobbying to limit the plan to one license that they would seek to win, while a major Malaysian group is trying to get in on the spoils. Meanwhile, the state's pari-mutuel industry is lobbying for the same tax breaks that casino resorts get, while other GOP groups like the Chamber of Commerce are joining travel and tourism powers like Disney to try and keep Vegas-like resorts out of the state.
The fast-growing internet cafe business is also drawing a lot of attention. Largely unregulated on the state level, these businesses operate under a loophole in the state's sweepstake exception that covers such contests as "Win a Brand New Car" promotions, raffles, etc. The businesses usually sell customers phone cards and web surfing time in exchange for credits to play slot-machine-type games on computers. Rep. Scott Plakon (R-Longwood) and Sen. Steve Oelrich (R-Gainesville) have reintroduced legislation to outlaw the cafes altogether. Other proposed bills seek to regulate them separately.
Outside of redistricting, the expansion of in-state casino gambling is expected to be the most controversial issue on the high-priority list. A bill sponsored by Rep. Erik Fresen (R-Miami) and Senator Ellyn Bogdanoff (R-Fort Lauderdale) would create a state gaming commission like those in Nevada and New Jersey. The commission would award licenses to three entities that would then be able to develop upscale resort casinos in both Miami-Dade and Broward counties.
There will also be an effort by gaming and resort interests to shape the playing field. The Las Vegas Sands Group is reportedly lobbying to limit the plan to one license that they would seek to win, while a major Malaysian group is trying to get in on the spoils. Meanwhile, the state's pari-mutuel industry is lobbying for the same tax breaks that casino resorts get, while other GOP groups like the Chamber of Commerce are joining travel and tourism powers like Disney to try and keep Vegas-like resorts out of the state.
The fast-growing internet cafe business is also drawing a lot of attention. Largely unregulated on the state level, these businesses operate under a loophole in the state's sweepstake exception that covers such contests as "Win a Brand New Car" promotions, raffles, etc. The businesses usually sell customers phone cards and web surfing time in exchange for credits to play slot-machine-type games on computers. Rep. Scott Plakon (R-Longwood) and Sen. Steve Oelrich (R-Gainesville) have reintroduced legislation to outlaw the cafes altogether. Other proposed bills seek to regulate them separately.
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2006/12/07
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29893
Governor Malloy says internet gambling in Connecticut is inevitable , but top legislative leaders are questioning that.
He says it could help to save jobs at the state's two casinos, but others are saying it could be a job killer.
The legislative session starts in four weeks and this topic is already shaping up to be a dominant issue.
There are hundreds of overseas online gambling sites you can visit on your computer.
Current U.S. law forbids U.S. banks from processing financial transactions for online gambling, but some people find a way around that.
Governor Malloy says a U.S. Justice Department decision last month clears the way for U.S. based internet gambling and there's nothing that can stop it, so Connecticut must get aboard or lose out on the revenue. Malloy implied that it could harm the employment prospects for thousands of employees at the state's two Native-American operated casinos by draining gambling dollars away from them if they are not allowed to participate.
"I think the Governor's connection that twenty thousand jobs at Foxwoods and Mohegan Sun are going to be lost if we don't have internet gambling is a big stretch," said Senator John McKinney.
"New Jersey is talking about having the appropriate legislation in a matter of weeks for online gambling," said Malloy.
The chairman of the Mohegan Tribe says "The bottom line is people are playing online now -- just without any legal protection or revenue to our governments."
But it's not just the Republican leader in the State Senate that is questioning this. The Democratic State Senate President Pro Tem, the highest ranking state legislator, is also not very enthusiastic about the idea.
"We may actually lose more jobs at the casinos if that speeds the decline of revenue in Connecticut," Senator Don Williams said.
"Governor Malloy wants everybody to believe that this Department of Justice opinion means that interstate gambling is a 'done deal' and that nothing can be done to stop it and that's simply not true," Senator McKinney said.
Many call internet gambling insidious and addictive and that it should be forbidden despite the money that could be made for the state.
"It would be a good thing that the state gets the money but I don't think on line gambling is a good idea," said Newington resident Margaret Taylor. "We have enough gambling already."
"I think that there's money to be made, absolutely, and we could definitely use it but I fear that already with the casinos in the area that gambling might become an issue for more and more people," said Vernon resident Bryan Avery.
The CEO at Foxwoods tells News 8 that they fully support the Governor's efforts relating to internet gambling.
He says it could help to save jobs at the state's two casinos, but others are saying it could be a job killer.
The legislative session starts in four weeks and this topic is already shaping up to be a dominant issue.
There are hundreds of overseas online gambling sites you can visit on your computer.
Current U.S. law forbids U.S. banks from processing financial transactions for online gambling, but some people find a way around that.
Governor Malloy says a U.S. Justice Department decision last month clears the way for U.S. based internet gambling and there's nothing that can stop it, so Connecticut must get aboard or lose out on the revenue. Malloy implied that it could harm the employment prospects for thousands of employees at the state's two Native-American operated casinos by draining gambling dollars away from them if they are not allowed to participate.
"I think the Governor's connection that twenty thousand jobs at Foxwoods and Mohegan Sun are going to be lost if we don't have internet gambling is a big stretch," said Senator John McKinney.
"New Jersey is talking about having the appropriate legislation in a matter of weeks for online gambling," said Malloy.
The chairman of the Mohegan Tribe says "The bottom line is people are playing online now -- just without any legal protection or revenue to our governments."
But it's not just the Republican leader in the State Senate that is questioning this. The Democratic State Senate President Pro Tem, the highest ranking state legislator, is also not very enthusiastic about the idea.
"We may actually lose more jobs at the casinos if that speeds the decline of revenue in Connecticut," Senator Don Williams said.
"Governor Malloy wants everybody to believe that this Department of Justice opinion means that interstate gambling is a 'done deal' and that nothing can be done to stop it and that's simply not true," Senator McKinney said.
Many call internet gambling insidious and addictive and that it should be forbidden despite the money that could be made for the state.
"It would be a good thing that the state gets the money but I don't think on line gambling is a good idea," said Newington resident Margaret Taylor. "We have enough gambling already."
"I think that there's money to be made, absolutely, and we could definitely use it but I fear that already with the casinos in the area that gambling might become an issue for more and more people," said Vernon resident Bryan Avery.
The CEO at Foxwoods tells News 8 that they fully support the Governor's efforts relating to internet gambling.
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2006/12/07
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Online gaming has been taking slow but steady steps to reality in recent weeks. A Justice Department decision opened the door for online poker and lotteries online recently, and a number of bills to regulate poker are in a drawer somewhere on Capitol Hill.
Everyone seems to be angling for a piece of what could be a massive market. Facebook has explored real-money gambling in the U.K. and recently gave a presentation to the lottery industry on how they could use Facebook to connect with players. Zynga (Nasdaq: ZNGA ) introduced a poker game before moving to Farmville and may also be interested in the revenue a real-money game could provide.
Table maker Shuffle Master (Nasdaq: SHFL ) recently launched an interactive division to offer the company's proprietary games online with a free version available for U.S. players.
And casinos are trying to…
Everyone seems to be angling for a piece of what could be a massive market. Facebook has explored real-money gambling in the U.K. and recently gave a presentation to the lottery industry on how they could use Facebook to connect with players. Zynga (Nasdaq: ZNGA ) introduced a poker game before moving to Farmville and may also be interested in the revenue a real-money game could provide.
Table maker Shuffle Master (Nasdaq: SHFL ) recently launched an interactive division to offer the company's proprietary games online with a free version available for U.S. players.
And casinos are trying to…
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2006/12/07
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The doors have been flung open for states to determine their own online gambling laws, with the recent clarification of the Wire Act of 1961, which forbade the transmission of bets through technology. Until now, federal authorities have cracked down on internet gambling of all kinds, believing they were operating within the jurisdiction of the Wire Act. As a result, most online casinos and gaming sites moved their business to off-shore companies – including many in the UK.
Michael Charalambous, Managing Director of LiveCasinos.co.uk, the informational live casino website site, said, “this is big news for gambling companies based in the States, who previously had their business restricted to traditional casinos… 2012 will be the year of online gaming in America”.
Even big, fairly innocuous forms of gambling like state lotteries have previously been at risk of prosecution under the previous understanding of the law. Now these, along with Indian casinos, and traditional casino operators will be able to expand their operations into the online arena – a luxury that British firms have never had to go without.
Which states opt to legalise online gambling remains to be seen. But crucially, any new laws will only apply to citizens residing within the state passing them. If Oregon passes legislation permitting online casino games, any website offering the service must be based within Oregon, as must all patrons of the website.
The shock announcement will test the existing, conventional casinos to their limits. Charalambous said: “To avoid opportunistic web entrepreneurs stealing a march on them, casino operators are going to have to be ready to migrate their brand online… and fast. If the existing stakeholders in current conventional casinos, like the many native American casino operators who have run businesses exempt from the gambling laws, can remain major stakeholders in the online world, then there will be no threat to their business. Even a drop-off in conventional casino visits will translate into a pickup of online business”.
Nevertheless, there are sure to be a glut of new online casinos and gaming sites springing up over the next year, and the competition can only be good for business. Remember to gamble safely and sensibly online and always use a reputable firm with a secure website, such as LiveCasinos.co.uk which offer information on top rated live casinos and live roulette, live blackjack and live baccarat to ensure your online gaming experience is a safe one.
Michael Charalambous, Managing Director of LiveCasinos.co.uk, the informational live casino website site, said, “this is big news for gambling companies based in the States, who previously had their business restricted to traditional casinos… 2012 will be the year of online gaming in America”.
Even big, fairly innocuous forms of gambling like state lotteries have previously been at risk of prosecution under the previous understanding of the law. Now these, along with Indian casinos, and traditional casino operators will be able to expand their operations into the online arena – a luxury that British firms have never had to go without.
Which states opt to legalise online gambling remains to be seen. But crucially, any new laws will only apply to citizens residing within the state passing them. If Oregon passes legislation permitting online casino games, any website offering the service must be based within Oregon, as must all patrons of the website.
The shock announcement will test the existing, conventional casinos to their limits. Charalambous said: “To avoid opportunistic web entrepreneurs stealing a march on them, casino operators are going to have to be ready to migrate their brand online… and fast. If the existing stakeholders in current conventional casinos, like the many native American casino operators who have run businesses exempt from the gambling laws, can remain major stakeholders in the online world, then there will be no threat to their business. Even a drop-off in conventional casino visits will translate into a pickup of online business”.
Nevertheless, there are sure to be a glut of new online casinos and gaming sites springing up over the next year, and the competition can only be good for business. Remember to gamble safely and sensibly online and always use a reputable firm with a secure website, such as LiveCasinos.co.uk which offer information on top rated live casinos and live roulette, live blackjack and live baccarat to ensure your online gaming experience is a safe one.
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2006/12/07
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On May 27, 2011, the Spanish Congress passed the new Spanish Gambling Act, which establishes the general principles of the regulatory framework applicable to gambling activities in Spain.
The Act covers gambling activities carried out in Spain, clarifying that it particularly focuses on online gambling activities (defined as gambling activities operated through electronic, computing, remote or interactive means).
The Act also applies to any "individual or company located outside the Spanish territory organizing or offering gambling activities to residents in Spain." This provision implies significant uncertainty about the scope of this new regulatory framework, as it would appear that operators accepting Spanish players (even those they did not actively "invite" to access the gambling activities) would be subject to the Act.
Latest News
On November 14, 2011, the Spanish Government approved two Royal Decrees developing the Spanish Gambling Act: one relating to licenses, authorizations and registries and the other one developing the technical requirements applicable to the gambling activities in Spain.
In addition, on November 16, the Spanish Council of Ministers issued the public tender for obtaining general authorizations to operate online gambling activities in Spain.
Therefore, from November 19, 2011 to December 14, 2011, the entities interested in operating in this field in Spain should file all the requested information and documentation for obtaining a general authorization.
Once the public tender is closed (December 14, 2011) operators will not be allowed to apply for the same type of authorizations for at least 18 months.
In this first round the following games will be authorized: fixed-odds sport bets, mutual (pool) sport bets, fixed-odds horse racing bets, mutual (pool) horse racing bets, poker, bingo, blackjack, roulette, contests, "other fixed-odds bets", baccarat, and "complementary/soft games" (an open category covering socially accepted games with a low risk of addiction, e.g., traditional Spanish card games).
Under the Act, general authorizations will have a 10-year term and their holders will be able to renew them for identical periods.
Once an operator has obtained a general authorization, it must also apply for individual authorizations necessary to run the different types of games it will offer under the gambling category for which it obtained a general authorization. For example, a company authorized to run betting activities in general must also obtain an individual authorization for mutual betting or fixed-odds betting.
The Act establishes a very tough sanctioning regime and, in this respect, very severe infringements could be sanctioned with fines amounting from €1 Million up to €50 Million.
Apart from economic sanctions, the Act contemplates the possibility for the National Gambling Commission to order to any financial entity to block a financial transaction that is connected with the operation/participation in unauthorized gambling activities.
Moreover, Internet-access providers could also be ordered by the said commission to block the access to a website which is connected with the operation of unauthorized gambling activities.
Tax Issues
The Act establishes a new tax, gaming tax, which arises when games, raffles, competitions, betting and other similar activities are authorized, organized or held with a state-scope.
The taxable base is calculated as follows depending on the type of gambling carried out; (a) the gross income (total amount received from gaming participation); (b) the net revenue (total amount received from gamingparticipation minus the total amount paid out to players as prizes; and (c)in the case of cross-betting or games in which taxpayers do not obtain as own income the amounts played, but just transfer money to winning players, the taxable base will be made up of the commissions.
The tax rate also depends on the type of gambling carried out, ranging from 20% to 25%, with a few exceptions.
In addition, the Act establishes an administrative fee for the game whose taxable event includes(i) application for the license, (ii) registration in the General Gambling Licensing Registry, and (iii) acts of the National Gambling Commission, etc. The tax rate depends on the type of taxable event, ranging from €20 to €10,000, except for acts of the National Gambling Commission, where the tax rate reaches 1/1000 of gross income (per year).
Although the gambling offered to Spanish players triggers a relevant tax burden under the Act, this tax is compatible with Spanish non-resident income tax. Thus, it is crucial to review the operational structure used to offer gaming in Spain, as factors such as the operator's jurisdiction or the existence of a permanent establishment in Spain are key when deciding whether the tax burden may be increased to 30%.
The information in this article is courtesy of Jorge Monclús and Xavier Xivillé!
The Act covers gambling activities carried out in Spain, clarifying that it particularly focuses on online gambling activities (defined as gambling activities operated through electronic, computing, remote or interactive means).
The Act also applies to any "individual or company located outside the Spanish territory organizing or offering gambling activities to residents in Spain." This provision implies significant uncertainty about the scope of this new regulatory framework, as it would appear that operators accepting Spanish players (even those they did not actively "invite" to access the gambling activities) would be subject to the Act.
Latest News
On November 14, 2011, the Spanish Government approved two Royal Decrees developing the Spanish Gambling Act: one relating to licenses, authorizations and registries and the other one developing the technical requirements applicable to the gambling activities in Spain.
In addition, on November 16, the Spanish Council of Ministers issued the public tender for obtaining general authorizations to operate online gambling activities in Spain.
Therefore, from November 19, 2011 to December 14, 2011, the entities interested in operating in this field in Spain should file all the requested information and documentation for obtaining a general authorization.
Once the public tender is closed (December 14, 2011) operators will not be allowed to apply for the same type of authorizations for at least 18 months.
In this first round the following games will be authorized: fixed-odds sport bets, mutual (pool) sport bets, fixed-odds horse racing bets, mutual (pool) horse racing bets, poker, bingo, blackjack, roulette, contests, "other fixed-odds bets", baccarat, and "complementary/soft games" (an open category covering socially accepted games with a low risk of addiction, e.g., traditional Spanish card games).
Under the Act, general authorizations will have a 10-year term and their holders will be able to renew them for identical periods.
Once an operator has obtained a general authorization, it must also apply for individual authorizations necessary to run the different types of games it will offer under the gambling category for which it obtained a general authorization. For example, a company authorized to run betting activities in general must also obtain an individual authorization for mutual betting or fixed-odds betting.
The Act establishes a very tough sanctioning regime and, in this respect, very severe infringements could be sanctioned with fines amounting from €1 Million up to €50 Million.
Apart from economic sanctions, the Act contemplates the possibility for the National Gambling Commission to order to any financial entity to block a financial transaction that is connected with the operation/participation in unauthorized gambling activities.
Moreover, Internet-access providers could also be ordered by the said commission to block the access to a website which is connected with the operation of unauthorized gambling activities.
Tax Issues
The Act establishes a new tax, gaming tax, which arises when games, raffles, competitions, betting and other similar activities are authorized, organized or held with a state-scope.
The taxable base is calculated as follows depending on the type of gambling carried out; (a) the gross income (total amount received from gaming participation); (b) the net revenue (total amount received from gamingparticipation minus the total amount paid out to players as prizes; and (c)in the case of cross-betting or games in which taxpayers do not obtain as own income the amounts played, but just transfer money to winning players, the taxable base will be made up of the commissions.
The tax rate also depends on the type of gambling carried out, ranging from 20% to 25%, with a few exceptions.
In addition, the Act establishes an administrative fee for the game whose taxable event includes(i) application for the license, (ii) registration in the General Gambling Licensing Registry, and (iii) acts of the National Gambling Commission, etc. The tax rate depends on the type of taxable event, ranging from €20 to €10,000, except for acts of the National Gambling Commission, where the tax rate reaches 1/1000 of gross income (per year).
Although the gambling offered to Spanish players triggers a relevant tax burden under the Act, this tax is compatible with Spanish non-resident income tax. Thus, it is crucial to review the operational structure used to offer gaming in Spain, as factors such as the operator's jurisdiction or the existence of a permanent establishment in Spain are key when deciding whether the tax burden may be increased to 30%.
The information in this article is courtesy of Jorge Monclús and Xavier Xivillé!
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2006/12/07
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29893
Online gambling has been legal in the United Kingdom for a long time now and has seen the industry grow in spades. The income generated by allowing online gambling and issuing licenses and gaining taxes from the past time has always been on the plus side and without too many problems the application has run smoothly. The introduction of the white label concept gave the system some solidity and strength which was welcomed operators who paid into the system and expected to be protected.
Recently the government has decided to take another look at its rules and tax policies and the new proposals are not getting a very warm reception from operators. The Treasury, which is reviewing a new tax regime for remote gambling has said its assessment of the tax system is to further its “consumer protection policy objectives”.
Bookmaker William Hill commissioned a survey by accountancy firm Deloitte which has pointed out the Treasury’s proposals for a point of consumption tax on online gambling will prove detrimental to both the consumer and the industry. The new tax would force smaller operators to leave the market and would send punters playing at so called illegal sites which give better odds and charge less tax.
The Daily Telegraph, also revealed that in the consumers in the United Kingdom currently spend about £1.7bn a year amounting to approximately 18 percent of total U.K. gambling revenues with online gambling operators.
The larger firms have their online gambling operations based in low tax jurisdictions and thus don’t have to pay the fifteen percent gross profits tax enforced in the U.K., Ladbrokes, William Hill, and Paddy Power are all funneling their wagers through Gibraltar and the Isle of Man. The online gambling industry is fighting back with facts and figures and will show the government they can’t be pushed around that easily.
Recently the government has decided to take another look at its rules and tax policies and the new proposals are not getting a very warm reception from operators. The Treasury, which is reviewing a new tax regime for remote gambling has said its assessment of the tax system is to further its “consumer protection policy objectives”.
Bookmaker William Hill commissioned a survey by accountancy firm Deloitte which has pointed out the Treasury’s proposals for a point of consumption tax on online gambling will prove detrimental to both the consumer and the industry. The new tax would force smaller operators to leave the market and would send punters playing at so called illegal sites which give better odds and charge less tax.
The Daily Telegraph, also revealed that in the consumers in the United Kingdom currently spend about £1.7bn a year amounting to approximately 18 percent of total U.K. gambling revenues with online gambling operators.
The larger firms have their online gambling operations based in low tax jurisdictions and thus don’t have to pay the fifteen percent gross profits tax enforced in the U.K., Ladbrokes, William Hill, and Paddy Power are all funneling their wagers through Gibraltar and the Isle of Man. The online gambling industry is fighting back with facts and figures and will show the government they can’t be pushed around that easily.
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2006/12/07
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29893
Florida Republicans and Democrats took in millions in the last three months of the year, as companies involved in a contentious fight over casinos in the Sunshine State poured tens of thousands into party campaign accounts.
Campaign reports filed Tuesday showed that the Republican Party of Florida raised nearly $7.5 million in the final three months of 2011. That was the best fundraising quarter the party had last year.
The Florida Democratic Party, by contrast, raised just over $1.78 million.
Both parties took in large amounts of money from those trying to convince the GOP-controlled Legislature to either approve, or kill, a bill that would allow the creation of three large casinos in the state. The measure, which passed its first hurdle in the Senate earlier this week, would also now allow the state's dog and horse tracks to expand their gambling operations as well.
The 2012 session officially started on Tuesday.
A subsidiary of Genting, the Malaysian company that wants to build a casino in downtown Miami on the shores of Biscayne Bay, donated nearly $100,000 to Democrats and $200,000 to Republicans. Genting also picked spent more than $6,000 on food and beverage for Democrats as well. Campaign reports show that during the second half of 2011 Genting has now donated more than $626,000 to political parties, legislators and political committees in Florida.
"As a company that has been operating in Florida for over a decade, we are proud to support candidates that genuinely work in favor of a pro-business, pro-jobs, pro-growth policy agenda," said Jessica Hoppe, senior vice president government affairs and general counsel for Genting's Resorts World.
The Seminole Tribe of Florida, which already runs a handful of casinos in the state and has been opposed to the current legislation, donated $105,000 to Democrats and gave Republicans $175,000.
Disney, another vocal opponent of the casino legislation, also gave large amounts to both parties in the final three months of the year. Disney gave $50,000 in cash to Democrats and $165,000 to Republicans. Walt Disney World also provided more than $100,000 worth of in-kind donations, including costs for a reception to Democrats.
Owners of dog tracks and horse tracks also contributed $185,000 to the two parties during the last quarter as well.
Senate President Mike Haridpolos, R-Merritt Island, on Tuesday contended that raising money is a natural byproduct of the political process and noted that it takes money to campaign in a big state in Florida, pointing out that state senators represent more than 500,000 people.
"Fundraising is just a reality of politics," Haridopolos said. "Competing interest groups give money on either side, we're seeing it all across the country."
It wasn't just those involved in the casino fight who donated to the two parties. Blue Cross and Blue Shield of Florida, one of the state's largest health insurers, gave more than $650,000 to the Republican Party of Florida while giving $50,000 to Democrats.
Other groups who donated to Republicans include utility companies, tobacco companies, sugar companies, health care interests and companies that been pushing to privatize state prisons and other services. Democrats also took in money from many of the same companies, but also received donations from unions and the fundraising arm of the state association that represents trial attorneys.
While many of those who gave money have issues in front of state legislators it's the tug-of-war over the casino bill that captivated the Legislature and split business groups, organizations and even members of the majority party. Both sides are now running ads on television and the Internet, with one new ad pushed by a group including the Florida Chamber of Commerce that decries "out of state" and "foreign" interests pushing casinos. Opponents have retaliated with their own online attack on Disney.
Haridopolos repeated his promise to bring the bill to the full Senate for an up or down vote in the remaining 59 days of the session.
"I think it's important we don't bottle the bill up in committee," he said.
House Speaker Dean Cannon, who has been skeptical of the casino bill, refused to render a verdict on the legislation after it had been changed to help out existing dog and horse tracks outside South Florida to add slot machines if local voters approve. Cannon, who has publicly stated he does not support anything that would expand gambling in the state, said the changes made this week were "interesting."
A House panel is scheduled to hold a workshop on gambling in Florida on Wednesday.
Campaign reports filed Tuesday showed that the Republican Party of Florida raised nearly $7.5 million in the final three months of 2011. That was the best fundraising quarter the party had last year.
The Florida Democratic Party, by contrast, raised just over $1.78 million.
Both parties took in large amounts of money from those trying to convince the GOP-controlled Legislature to either approve, or kill, a bill that would allow the creation of three large casinos in the state. The measure, which passed its first hurdle in the Senate earlier this week, would also now allow the state's dog and horse tracks to expand their gambling operations as well.
The 2012 session officially started on Tuesday.
A subsidiary of Genting, the Malaysian company that wants to build a casino in downtown Miami on the shores of Biscayne Bay, donated nearly $100,000 to Democrats and $200,000 to Republicans. Genting also picked spent more than $6,000 on food and beverage for Democrats as well. Campaign reports show that during the second half of 2011 Genting has now donated more than $626,000 to political parties, legislators and political committees in Florida.
"As a company that has been operating in Florida for over a decade, we are proud to support candidates that genuinely work in favor of a pro-business, pro-jobs, pro-growth policy agenda," said Jessica Hoppe, senior vice president government affairs and general counsel for Genting's Resorts World.
The Seminole Tribe of Florida, which already runs a handful of casinos in the state and has been opposed to the current legislation, donated $105,000 to Democrats and gave Republicans $175,000.
Disney, another vocal opponent of the casino legislation, also gave large amounts to both parties in the final three months of the year. Disney gave $50,000 in cash to Democrats and $165,000 to Republicans. Walt Disney World also provided more than $100,000 worth of in-kind donations, including costs for a reception to Democrats.
Owners of dog tracks and horse tracks also contributed $185,000 to the two parties during the last quarter as well.
Senate President Mike Haridpolos, R-Merritt Island, on Tuesday contended that raising money is a natural byproduct of the political process and noted that it takes money to campaign in a big state in Florida, pointing out that state senators represent more than 500,000 people.
"Fundraising is just a reality of politics," Haridopolos said. "Competing interest groups give money on either side, we're seeing it all across the country."
It wasn't just those involved in the casino fight who donated to the two parties. Blue Cross and Blue Shield of Florida, one of the state's largest health insurers, gave more than $650,000 to the Republican Party of Florida while giving $50,000 to Democrats.
Other groups who donated to Republicans include utility companies, tobacco companies, sugar companies, health care interests and companies that been pushing to privatize state prisons and other services. Democrats also took in money from many of the same companies, but also received donations from unions and the fundraising arm of the state association that represents trial attorneys.
While many of those who gave money have issues in front of state legislators it's the tug-of-war over the casino bill that captivated the Legislature and split business groups, organizations and even members of the majority party. Both sides are now running ads on television and the Internet, with one new ad pushed by a group including the Florida Chamber of Commerce that decries "out of state" and "foreign" interests pushing casinos. Opponents have retaliated with their own online attack on Disney.
Haridopolos repeated his promise to bring the bill to the full Senate for an up or down vote in the remaining 59 days of the session.
"I think it's important we don't bottle the bill up in committee," he said.
House Speaker Dean Cannon, who has been skeptical of the casino bill, refused to render a verdict on the legislation after it had been changed to help out existing dog and horse tracks outside South Florida to add slot machines if local voters approve. Cannon, who has publicly stated he does not support anything that would expand gambling in the state, said the changes made this week were "interesting."
A House panel is scheduled to hold a workshop on gambling in Florida on Wednesday.
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2006/12/07
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29893
2012 could be more of the same for Lindsay Lohan as a paparazzo is suing the actress over a car accident outside a Hollywood club two years ago.
According to court documents obtained by ET, Grigor Balyan claims that on January 10, 2010, he was taking pictures of Lohan while in the car when he was struck by the vehicle, causing the photographer personal injury, property damage and other losses.
Baylan is seeking monetary compensation for the incident. 😄
According to court documents obtained by ET, Grigor Balyan claims that on January 10, 2010, he was taking pictures of Lohan while in the car when he was struck by the vehicle, causing the photographer personal injury, property damage and other losses.
Baylan is seeking monetary compensation for the incident. 😄
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2006/12/07
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29893
With the Justice Department confirming that most online gambling, other than sports betting, is legal, one would expect a gold rush for online gambling companies in the U.S.
The U.S. market has the potential to be one of the largest online gambling markets in the world, and will start from close to zero right now, after crackdowns both recent, and as far back as 2006 that demolished the U.S. online gambling market. The online poker market, just part of what online gambling covers, is estimated to be able to produce as much as $1.5 billion in operating earnings per year, according to Sterne Agee analyst David Bain.
An important fact regarding the opening of the market is that initially only companies with existing gaming licenses in the U.S. will be allowed to compete. This means that the online gaming companies that want to compete will certainly have to strike agreements with existing casinos or get new gaming licenses.
So, given the new reality, which companies will stand to benefit? Some of first to benefit should be the worldwide players that have already established their brands and are able to enter the market right away, as long as they find partners. Most of these companies, however, don’t trade on the U.S. markets – they trade mostly in the U.K. (though the largest player is actually from Austria).
So what are the already established companies?
The largest, is Bwin.party Digital Entertainment (PYGMF.PK), born out of the merger of two of largest players already, betandwin and partygaming. BPTY has the largest online poker site, PokerStars.com as well as many other betting franchises. It should be fast to enter the U.S. market, having already struck agreements with MGM Resorts International (MGM) and Boyd Gaming (BYD).
Other U.K. companies that haven’t yet announced partners in the U.S. are 888 Holdings (888.L) and Sportingbet (SPBTF.PK).
And in the U.S.?
What is most likely, is that those casinos that don’t partner with existing online gambling companies, will try to develop and field their own web gambling sites. When this happens, they either use internal projects, or turn to the usual suppliers that have the necessary technology – which is the most likely.
Thus, this trend has the potential to benefit gambling technology suppliers, firms like International Game Technology (IGT) or Shuffle Master (SHFL).
Finally
There are also online gaming - not gambling - companies that might see this as an opportunity to diversify their sources of revenue. They master all the necessary technologies and their entrance is really just a strategic decision. Still, either these companies apply for a gaming license, or have to partner with an existing licensee.
Here, the companies most likely to enter are those that already master online gaming, such as Zynga (ZNGA), Electronic Arts (EA) or Activision Blizzard (ATVI).
Conclusion
A huge new market is being opened in the U.S. , and a lot of companies stand to benefit from it. Further research is certainly necessary, but this article already advances a few names in the space that will certainly be positioned to explore this emerging opportunity.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
The U.S. market has the potential to be one of the largest online gambling markets in the world, and will start from close to zero right now, after crackdowns both recent, and as far back as 2006 that demolished the U.S. online gambling market. The online poker market, just part of what online gambling covers, is estimated to be able to produce as much as $1.5 billion in operating earnings per year, according to Sterne Agee analyst David Bain.
An important fact regarding the opening of the market is that initially only companies with existing gaming licenses in the U.S. will be allowed to compete. This means that the online gaming companies that want to compete will certainly have to strike agreements with existing casinos or get new gaming licenses.
So, given the new reality, which companies will stand to benefit? Some of first to benefit should be the worldwide players that have already established their brands and are able to enter the market right away, as long as they find partners. Most of these companies, however, don’t trade on the U.S. markets – they trade mostly in the U.K. (though the largest player is actually from Austria).
So what are the already established companies?
The largest, is Bwin.party Digital Entertainment (PYGMF.PK), born out of the merger of two of largest players already, betandwin and partygaming. BPTY has the largest online poker site, PokerStars.com as well as many other betting franchises. It should be fast to enter the U.S. market, having already struck agreements with MGM Resorts International (MGM) and Boyd Gaming (BYD).
Other U.K. companies that haven’t yet announced partners in the U.S. are 888 Holdings (888.L) and Sportingbet (SPBTF.PK).
And in the U.S.?
What is most likely, is that those casinos that don’t partner with existing online gambling companies, will try to develop and field their own web gambling sites. When this happens, they either use internal projects, or turn to the usual suppliers that have the necessary technology – which is the most likely.
Thus, this trend has the potential to benefit gambling technology suppliers, firms like International Game Technology (IGT) or Shuffle Master (SHFL).
Finally
There are also online gaming - not gambling - companies that might see this as an opportunity to diversify their sources of revenue. They master all the necessary technologies and their entrance is really just a strategic decision. Still, either these companies apply for a gaming license, or have to partner with an existing licensee.
Here, the companies most likely to enter are those that already master online gaming, such as Zynga (ZNGA), Electronic Arts (EA) or Activision Blizzard (ATVI).
Conclusion
A huge new market is being opened in the U.S. , and a lot of companies stand to benefit from it. Further research is certainly necessary, but this article already advances a few names in the space that will certainly be positioned to explore this emerging opportunity.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Join:
2006/12/07
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29893
The BRIC countries of the world, that’s Brazil, Russia, India and China are gaining a middle class with a disposable income at a fast pace. The gambling public in those countries have never had the wealth they have now and it seems certain that at least in a few of those emerging nations gambling will turn big profits for online operators and the government. Gambling in China and Russia are being strictly controlled by their current governments but India and Brazil are still pushing towards a legalized online gambling environment.
India is probably the largest of the untapped jurisdictions with more billionaires being produced than America and Europe combined. Lorien Pilling, director of research for Global Betting & Gaming Consultants, has said, “There is a huge propensity to gamble amongst the Indian population.”
Mobile phones and access to the internet across a wide spectrum of the population the potential for big time money is evident. According to statistics as of October of 2011 there were 880 million mobile devices in India. Even more users of mobile phones are in China with an astonishing 5.6 billion. These facts outline the potential, comparing the numbers that show America and the U.K. far behind in mobile phone use.
Currently in India the legal situation is in a state of limbo with laws governing gambling antiquated and useless. By default internet gambling is deemed illegal although there is no specific reference to internet wagering on the books. Attempts to bring internet gaming to India have been met with indifference for the most part. Infrastructure must become stable there in order for the system to work and until that funding has been put in place the Indian population will have to continue to access offshore sites.
As in other parts of the world internet gambling is slow legal process that is not on government radar and without champions of the cause it will not come into focus for a long time yet.
India is probably the largest of the untapped jurisdictions with more billionaires being produced than America and Europe combined. Lorien Pilling, director of research for Global Betting & Gaming Consultants, has said, “There is a huge propensity to gamble amongst the Indian population.”
Mobile phones and access to the internet across a wide spectrum of the population the potential for big time money is evident. According to statistics as of October of 2011 there were 880 million mobile devices in India. Even more users of mobile phones are in China with an astonishing 5.6 billion. These facts outline the potential, comparing the numbers that show America and the U.K. far behind in mobile phone use.
Currently in India the legal situation is in a state of limbo with laws governing gambling antiquated and useless. By default internet gambling is deemed illegal although there is no specific reference to internet wagering on the books. Attempts to bring internet gaming to India have been met with indifference for the most part. Infrastructure must become stable there in order for the system to work and until that funding has been put in place the Indian population will have to continue to access offshore sites.
As in other parts of the world internet gambling is slow legal process that is not on government radar and without champions of the cause it will not come into focus for a long time yet.
Join:
2006/12/07
Messages:
29893
Competitive by nature, Eric Witherspoon is determined to lose.
By virtue of a significant loss he could collect a healthy $1,100 -- the winner-take-all pot for an online diet competition he's playing with 21 friends and family members from around the country. He's currently in the lead in a WeightLossWars.com challenge, but needs to lose a total of 40 pounds in a matter of weeks.
So to take it off, he put his game face on.
"I know what it means to compete. I've been an athlete in the past," said the 33-year-old San Jose garbage and recycling worker. "I'm doing this for the same reason that I get worked up when I play simple games of Monopoly. I care about winning, and when it comes to my health, I decided that I'd finally had enough. It was just time."
Witherspoon is one of thousands of men and women involved in online "diet betting" -- putting their money where their mouths are, and wagering they'll lose a certain amount of weight in a certain amount of time. Such websites are heating up this time of year when well-intentioned resolutions kick in and many need a kick in the pants to complete them.
While folks have been competing for years on their own through pencil-and-paper weight-loss wagers with co-workers and friends, online sites step it up more than a few notches with interactive charts and devices for tracking one's progress, keeping an eye on the competition, learning about healthy eating and getting supportive boosts from fellow dieters.
"But adding the money component -- it's the kind of thing that gets your blood going," said Pete Maughan, marketing director for WeightLossWars, which has about 130,000 users currently engaged in private challenges between friends, or public challenges where anyone can join in. The site launched in 2004, long before "The Biggest Loser" TV show made weight-loss contests popular. And now more and more sites have popped up.
Gain by losing
"People really do get competitive," Maughan said. "They want to win the money and the bragging rights. At the same time, you never see someone that truly doesn't want the others to lose weight too. They just want to lose a little bit more."
While research varies on the effectiveness of financial incentives for dieting, one 2008 study published in the Journal of the American Medical Association showed those in a control group in which money was at stake lost more weight than those who did not put some cash on the line.
On most diet-betting sites, competitors set up their own games -- stakes, time frames, prizes -- then the sites facilitate them, collecting and distributing the money, often through credit cards or PayPal. Regular weigh-ins are usually required, either through an honor system or with help from a "referee" such as a designated co-worker, a doctor or a health club. Money is optional on some sites, but for the most part the games resemble your typical office football pool -- the only money you risk is what you put into the pot.
DietBet.com is the latest site on the scene with the motto of "Lose weight with friends while taking their money." It launched in December and already has hundreds of people signed up in various contests.
"Ours is not winner-take-all like 'The Biggest Loser' show," said founder Jamie Rosen. "Anyone who reaches their goal at the end of a four-week challenge splits the pot. It doesn't matter who crosses the finish line first. We're not making this like a gambling pool, but actually trying to help people lose weight."
Some sites allow contestants to donate money to a charity if they don't make their goals. Or even better: Fork over the bucks to an "anti-charity." On StickK.com, you set goals, any goals -- it could be weight loss, stopping smoking, being a better boyfriend or girlfriend, or cleaning the mini-blinds by Sunday -- then you set your rules, one of which can be that, if you don't meet your goal, you donate money to an organization you dislike.
"We don't take a stand on groups one way or another, but say you're totally against the NRA -- you can set that as your anti-charity," said Sam Espinosa of StickK. "If you miss your goal, the money goes to them. So not only are you losing your money, but you're giving it to something you hate."
Strong motivation
Espinosa says the anti-charity technique has proved to be the strongest motivator on his site, eliciting the most success. It has certainly worked for Mac Zilber, 19, of Albany, a student at UC San Diego. He has used StickK challenges to stop cracking his knuckles and chewing his nails. And his New Year's resolution for 2011 was to do at least 45 minutes of vigorous exercise three times a week all year along.
"Any time I didn't meet my goal, I would have to give $5 to my anti-charity, which was the George W. Bush library," Zilber said. "That was sufficient disincentive for me, and I was successful meeting my goals the vast majority of the year. Even though $5 is not much, I didn't want to give it to George."
Lindsay Seltzer, 34, of San Francisco, who works as a marketing/consumer promotions professional in the wine industry, has also found financial incentives helpful. After struggling with her weight all her life -- even undergoing gastric bypass surgery a few years ago, but eventually gaining the weight back -- she recently achieved what she called a "mental shift" and lost 40 pounds in 2011.
"Seeing success brought out my competitive nature," she said, and in November she joined two challenges through WeightLossWars with a cumulative pot of about $150, and another managed by a friend, worth about $160. Getting to 175 pounds before July is her current coal.
"Finally having a sense of confidence that it was something I could do and be successful with -- that made me want to compete," she said. "Really, the money is a bonus."
By virtue of a significant loss he could collect a healthy $1,100 -- the winner-take-all pot for an online diet competition he's playing with 21 friends and family members from around the country. He's currently in the lead in a WeightLossWars.com challenge, but needs to lose a total of 40 pounds in a matter of weeks.
So to take it off, he put his game face on.
"I know what it means to compete. I've been an athlete in the past," said the 33-year-old San Jose garbage and recycling worker. "I'm doing this for the same reason that I get worked up when I play simple games of Monopoly. I care about winning, and when it comes to my health, I decided that I'd finally had enough. It was just time."
Witherspoon is one of thousands of men and women involved in online "diet betting" -- putting their money where their mouths are, and wagering they'll lose a certain amount of weight in a certain amount of time. Such websites are heating up this time of year when well-intentioned resolutions kick in and many need a kick in the pants to complete them.
While folks have been competing for years on their own through pencil-and-paper weight-loss wagers with co-workers and friends, online sites step it up more than a few notches with interactive charts and devices for tracking one's progress, keeping an eye on the competition, learning about healthy eating and getting supportive boosts from fellow dieters.
"But adding the money component -- it's the kind of thing that gets your blood going," said Pete Maughan, marketing director for WeightLossWars, which has about 130,000 users currently engaged in private challenges between friends, or public challenges where anyone can join in. The site launched in 2004, long before "The Biggest Loser" TV show made weight-loss contests popular. And now more and more sites have popped up.
Gain by losing
"People really do get competitive," Maughan said. "They want to win the money and the bragging rights. At the same time, you never see someone that truly doesn't want the others to lose weight too. They just want to lose a little bit more."
While research varies on the effectiveness of financial incentives for dieting, one 2008 study published in the Journal of the American Medical Association showed those in a control group in which money was at stake lost more weight than those who did not put some cash on the line.
On most diet-betting sites, competitors set up their own games -- stakes, time frames, prizes -- then the sites facilitate them, collecting and distributing the money, often through credit cards or PayPal. Regular weigh-ins are usually required, either through an honor system or with help from a "referee" such as a designated co-worker, a doctor or a health club. Money is optional on some sites, but for the most part the games resemble your typical office football pool -- the only money you risk is what you put into the pot.
DietBet.com is the latest site on the scene with the motto of "Lose weight with friends while taking their money." It launched in December and already has hundreds of people signed up in various contests.
"Ours is not winner-take-all like 'The Biggest Loser' show," said founder Jamie Rosen. "Anyone who reaches their goal at the end of a four-week challenge splits the pot. It doesn't matter who crosses the finish line first. We're not making this like a gambling pool, but actually trying to help people lose weight."
Some sites allow contestants to donate money to a charity if they don't make their goals. Or even better: Fork over the bucks to an "anti-charity." On StickK.com, you set goals, any goals -- it could be weight loss, stopping smoking, being a better boyfriend or girlfriend, or cleaning the mini-blinds by Sunday -- then you set your rules, one of which can be that, if you don't meet your goal, you donate money to an organization you dislike.
"We don't take a stand on groups one way or another, but say you're totally against the NRA -- you can set that as your anti-charity," said Sam Espinosa of StickK. "If you miss your goal, the money goes to them. So not only are you losing your money, but you're giving it to something you hate."
Strong motivation
Espinosa says the anti-charity technique has proved to be the strongest motivator on his site, eliciting the most success. It has certainly worked for Mac Zilber, 19, of Albany, a student at UC San Diego. He has used StickK challenges to stop cracking his knuckles and chewing his nails. And his New Year's resolution for 2011 was to do at least 45 minutes of vigorous exercise three times a week all year along.
"Any time I didn't meet my goal, I would have to give $5 to my anti-charity, which was the George W. Bush library," Zilber said. "That was sufficient disincentive for me, and I was successful meeting my goals the vast majority of the year. Even though $5 is not much, I didn't want to give it to George."
Lindsay Seltzer, 34, of San Francisco, who works as a marketing/consumer promotions professional in the wine industry, has also found financial incentives helpful. After struggling with her weight all her life -- even undergoing gastric bypass surgery a few years ago, but eventually gaining the weight back -- she recently achieved what she called a "mental shift" and lost 40 pounds in 2011.
"Seeing success brought out my competitive nature," she said, and in November she joined two challenges through WeightLossWars with a cumulative pot of about $150, and another managed by a friend, worth about $160. Getting to 175 pounds before July is her current coal.
"Finally having a sense of confidence that it was something I could do and be successful with -- that made me want to compete," she said. "Really, the money is a bonus."
Join:
2006/12/07
Messages:
29893
With the Iowa and New Hampshire primaries in the bag and South Carolina to come on Jan 21, Mitt Romney has emerged as a clear favorite with online sportsbooks to become the Republican challenger to Barack Obama in the 2012 presidential elections.
All the Odds
William Hill have installed Romney as 1/5 favorite to emerge as the Republican candidate, putting him ahead of Rick Santorum, 8/1, Ron Paul, 12/1, Newt Gingrich, 14/1, Jon Huntsman, 20/1, and outsider Rick Perry at 50/1.
Obama is still 8/11 favorite to win a second consecutive term, ahead of Romney, 6/4. The odds on the eventual Republican candidate winning the 2012 presidential election (regardless of whether it is Romney or someone else) are now evens at William Hill, and 2.00 at Sports Interaction. Will Hill is quoting 80/1 on an independent getting the job done.
More Ways to Bet
The world has changed so much since Barack Obama was elected for the first time in 2008, and the same can be said about the world of online and mobile gambling, which has seen so many new innovations in the last few years.
Online betting customers can now bet from anywhere 24 hours a day with William Hill Mobile, which promises 100% security for all deposits and withdrawals. In addition, if you're left stranded without GPS, you can place your US presidential elections bet via text message. Just register your mobile to get started, and you can begin text betting immediately.
All the Odds
William Hill have installed Romney as 1/5 favorite to emerge as the Republican candidate, putting him ahead of Rick Santorum, 8/1, Ron Paul, 12/1, Newt Gingrich, 14/1, Jon Huntsman, 20/1, and outsider Rick Perry at 50/1.
Obama is still 8/11 favorite to win a second consecutive term, ahead of Romney, 6/4. The odds on the eventual Republican candidate winning the 2012 presidential election (regardless of whether it is Romney or someone else) are now evens at William Hill, and 2.00 at Sports Interaction. Will Hill is quoting 80/1 on an independent getting the job done.
More Ways to Bet
The world has changed so much since Barack Obama was elected for the first time in 2008, and the same can be said about the world of online and mobile gambling, which has seen so many new innovations in the last few years.
Online betting customers can now bet from anywhere 24 hours a day with William Hill Mobile, which promises 100% security for all deposits and withdrawals. In addition, if you're left stranded without GPS, you can place your US presidential elections bet via text message. Just register your mobile to get started, and you can begin text betting immediately.
Join:
2006/12/07
Messages:
29893
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He is almost surrounded.
With Ohio's decision to add casino games, Kentucky residents now have attractive gambling options in most of their neighboring states, including Illinois, Indiana, Missouri and West Virginia as well.
In Beshear's view, that represents millions of dollars in potential tax revenue leaving the state.
"We might as well be backing trucks filled with cash up to the Ohio River and dumping that money into the water," Beshear said during his State of the Commonwealth speech last week in Frankfort.
He hopes that legislators will put a proposed constitutional amendment on the ballot in Kentucky, so voters can decide whether to legalize casino-style gambling. With tight budgets ahead, Beshear contends taxes on gambling proceeds can be used for education, public protection and transportation projects.
Many voters may oppose the move on moral or religious grounds, but Beshear is not wrong about the potential for revenue. However, Kentucky would be stepping into an increasingly competitive gambling environment, and the governor and voters need to dial back their expectations.
As with most industries, the gambling business has taken a hit in the last few years. But before that, expansions in state after state pushed overall gaming revenue from $62 billion in 2000 to about $92 billion in 2007, according to American Gaming Association. For the states that got in early, that gambling also brought in quite a bit of out-of-state tourism.
But with more options and more competition, it is not clear if that trend will continue.
Mississippi casinos along the Gulf Coast, for example, grew dramatically with annual revenues of more than $332 million by 2007, despite the setbacks of Hurricane Katrina. But results for 2011 are down about 18 percent from that level, and while some of that can be chalked up to the recession, some attribute the decline to simply more competition.
West Virginia and Pennsylvania have both added table games in recent years, but the associated tourism seems to be primarily regional.
With casino gambling now in almost half of the 50 states, Kentucky and other states considering gaming should not set their sights too high.